|
SEPTEMBER 30, 2023 |
2023 Semi-Annual Report (Unaudited) |
iShares Trust
· |
iShares Asia 50 ETF | AIA | NASDAQ |
· |
iShares Blockchain and Tech ETF | IBLC | NYSE Arca |
· |
iShares Emerging Markets Infrastructure ETF | EMIF | NASDAQ |
· |
iShares Europe ETF | IEV | NYSE Arca |
· |
iShares Future Metaverse Tech and Communications ETF | IVRS | NYSE Arca |
· |
iShares India 50 ETF | INDY | NASDAQ |
· |
iShares International Developed Property ETF | WPS | NYSE Arca |
· |
iShares International Developed Small Cap Value Factor ETF | ISVL | Cboe BZX |
· |
iShares International Dividend Growth ETF | IGRO | Cboe BZX |
· |
iShares Latin America 40 ETF | ILF | NYSE Arca |
Dear Shareholder,
The combination of continued economic growth and moderating inflation provided a supportive backdrop for investors during the 12-month reporting period ended September 30, 2023. Significantly tighter monetary policy helped to rein in inflation while the economy proved more resilient than many investors anticipated. A moderating labor market also helped ease inflationary pressure, although wages continued to grow and unemployment rates touched the lowest levels in decades. This robust labor market powered further growth in consumer spending, backstopping the economy. On October 7, 2023, Hamas launched a horrific attack on Israel. The ensuing war will have a significant humanitarian impact and could lead to heightened economic and market volatility. We see geopolitics as a structural market risk going forward. See our geopolitical risk dashboard at blackrock.com for more details.
Equity returns were substantial, as the durability of consumer sentiment and spending mitigated investors’ concerns about the economy’s trajectory. The U.S. economy resumed growth in the third quarter of 2022 and continued to expand thereafter. All major classes of equities rose, although large-capitalization U.S. stocks posted significantly higher returns than small-capitalization U.S. stocks due primarily to the performance of large technology companies. International developed market equities also advanced strongly, and emerging market equities posted solid gains.
The 10-year U.S. Treasury yield rose during the reporting period, driving its price down, as investors reacted to elevated inflation and attempted to anticipate future interest rate changes. The corporate bond market benefited from improving economic sentiment, although high-yield corporate bond prices fared significantly better than investment-grade bonds as demand from yield-seeking investors remained strong.
The U.S. Federal Reserve (the “Fed”), attempting to manage persistent inflation, raised interest rates six times during the 12-month period. Furthermore, the Fed wound down its bond-buying programs and incrementally reduced its balance sheet by not replacing securities that reach maturity. However, the Fed declined to raise interest rates at two of its meetings late in the period.
Supply constraints appear to have become an embedded feature of the new macroeconomic environment, making it difficult for developed economies to increase production without sparking higher inflation. Geopolitical fragmentation and an aging population risk further exacerbating these constraints, keeping the labor market tight and wage growth high. Although the Fed has decelerated the pace of interest rate hikes and recently opted for two pauses, we believe that the new economic regime means that the Fed will need to maintain high rates for an extended period to keep inflation under control. Furthermore, ongoing structural changes may mean that the Fed will be hesitant to cut interest rates in the event of faltering economic activity lest inflation accelerate again. We believe investors should expect a period of higher volatility as markets adjust to the new economic reality and policymakers attempt to adapt.
While we favor an overweight position in developed market equities in the long term, we prefer an underweight stance in the near term. Expectations for corporate earnings remain elevated, which seems inconsistent with macroeconomic constraints. Nevertheless, we are overweight on Japanese stocks in the near term as shareholder-friendly policies generate increased investor interest. We also believe that stocks with an AI tilt should benefit from an investment cycle that is set to support revenues and margins. In credit, there are selective opportunities in the near term despite tightening credit and financial conditions. For fixed income investing with a six- to twelve-month horizon, we see the most attractive investments in short-term U.S. Treasuries, U.S. inflation-linked bonds, euro area government bonds and gilts, U.S. mortgage-backed securities, and hard-currency emerging market bonds.
Overall, our view is that investors need to think globally, position themselves to be prepared for a decarbonizing economy, and be nimble as market conditions change. We encourage you to talk with your financial advisor and visit iShares.com for further insight about investing in today’s markets.
Rob Kapito
President, BlackRock, Inc.
Rob Kapito
President, BlackRock, Inc..
Total Returns as of September 30, 2023 | ||||||||
6-Month | 12-Month | |||||||
U.S.
large cap equities |
5.18% | 21.62% | ||||||
U.S.
small cap equities |
(0.19) | 8.93 | ||||||
International
equities |
(1.28) | 25.65 | ||||||
Emerging
market equities |
(2.05) | 11.70 | ||||||
3-month Treasury bills |
2.50 | 4.47 | ||||||
U.S.
Treasury securities |
(6.98) | (2.90) | ||||||
U.S.
investment grade bonds |
(4.05) | 0.64 | ||||||
Tax-exempt municipal
bonds |
(4.05) | 2.66 | ||||||
U.S.
high yield bonds High Yield 2% Issuer Capped Index) |
2.22 | 10.28 | ||||||
Past performance is not an indication of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index. |
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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 | ||||
2 | ||||
Semi-Annual Report: |
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4 | ||||
14 | ||||
14 | ||||
15 | ||||
Financial Statements |
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57 | ||||
60 | ||||
63 | ||||
68 | ||||
78 | ||||
90 | ||||
102 | ||||
103 | ||||
104 |
Fund Summary as of September 30, 2023 | iShares® Asia 50 ETF |
Investment Objective
The iShares Asia 50 ETF (the “Fund”) seeks to track the investment results of an index composed of 50 of the largest Asian equities, as represented by the S&PAsia 50TM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||
6-Month Total Returns |
1 Year | 5 Years | 10 Years | 1 Year | 5 Years | 10 Years | ||||||||||||||||||||
Fund NAV |
(9.20 | )% | 13.63 | % | (0.36 | )% | 3.88% | 13.63 | % | (1.79 | )% | 46.26% | ||||||||||||||
Fund Market |
(9.62 | ) | 13.88 | (0.36 | ) | 3.88 | 13.88 | (1.79 | ) | 46.35 | ||||||||||||||||
Index |
(8.80 | ) | 14.05 | 0.27 | 4.48 | 14.05 | 1.33 | 54.98 |
Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
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Beginning | Ending | Expenses | Beginning | Ending | Expenses | Annualized | ||||||||||||||||||||||||
Account Value | Account Value | Paid During | Account Value | Account Value | Paid During | Expense | ||||||||||||||||||||||||
(04/01/23) | (09/30/23) | the Period | (a) | (04/01/23) | (09/30/23) | the Period | (a) | Ratio | ||||||||||||||||||||||
$ 1,000.00 | $ 908.00 | $ 2.39 | $ 1,000.00 | $ 1,022.50 | $ 2.53 | 0.50 | % |
(a) |
Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information. |
Portfolio Information
SECTOR ALLOCATION
Sector | Percent
of Total Investments(a) | |
Information Technology |
38.7% | |
Financials |
21.3 | |
Consumer Discretionary |
16.3 | |
Communication Services |
16.2 | |
Materials |
3.1 | |
Industrials |
1.8 | |
Health Care |
1.4 | |
Real Estate |
1.2 |
(a) |
Excludes money market funds. |
GEOGRAPHIC ALLOCATION
Country/Geographic Region | Percent
of Total Investments(a) |
|||
China |
38.5 | % | ||
Taiwan |
25.6 | |||
South Korea |
22.6 | |||
Hong Kong |
8.4 | |||
Singapore |
4.9 |
4 |
2 0 2 3 I S H A R E S S E M I - 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 September 30, 2023 | iShares® Blockchain and Tech ETF |
Investment Objective
The iShares Blockchain and Tech ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. and non-U.S. companies that are involved in the development, innovation, and utilization of blockchain and crypto technologies; as represented by the NYSE FactSet Global Blockchain Technologies Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||
6-Month Total Returns |
1 Year | Since Inception |
1 Year | Since Inception | ||||||||||||||
Fund NAV |
(0.45 | )% | 12.58 | % | (26.72)% | 12.58 | % | (36.00)% | ||||||||||
Fund Market |
(0.41 | ) | 12.84 | (26.55) | 12.84 | (35.79) | ||||||||||||
Index |
(0.88 | ) | 10.83 | (27.41) | 10.83 | (36.76) |
The inception date of the Fund was April 25, 2022. The first day of secondary market trading was April 27, 2022.
Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||||
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Beginning | Ending | Expenses | Beginning | Ending | Expenses | Annualized | ||||||||||||||||||||||||||
Account Value | Account Value | Paid During | Account Value | Account Value | Paid During | Expense | ||||||||||||||||||||||||||
(04/01/23) | (09/30/23) | the Period | (a) | (04/01/23) | (09/30/23) | the Period | (a) | Ratio | ||||||||||||||||||||||||
$ 1,000.00 | $ 995.50 | $ 2.34 | $ 1,000.00 | $ 1,022.70 | $ 2.38 | 0.47 | % |
(a) |
Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information. |
Portfolio Information
SECTOR ALLOCATION
Sector | Percent
of Total Investments(a) | |
Information Technology |
73.5% | |
Financials |
24.7 | |
Other (each representing less than 1%) |
1.8 |
(a) |
Excludes money market funds. |
TEN LARGEST HOLDINGS
Security | Percent
of Total Investments(a) |
|||
Coinbase Global Inc., Class A |
13.3 | % | ||
Riot Blockchain Inc. |
11.7 | |||
Marathon Digital Holdings Inc. |
9.8 | |||
Cleanspark Inc. |
7.4 | |||
Applied Blockchain Inc. |
5.6 | |||
International Business Machines Corp. |
4.4 | |||
Advanced Micro Devices Inc. |
4.3 | |||
Hut 8 Mining Corp. |
4.3 | |||
PayPal Holdings Inc. |
4.2 | |||
Nvidia Corp. |
4.1 |
F U N D S U M M A R Y |
5 |
Fund Summary as of September 30, 2023 | iShares® Emerging Markets Infrastructure ETF |
Investment Objective
The iShares Emerging Markets Infrastructure ETF (the “Fund”) seeks to track the investment results of an index composed of 30 of the largest equities in the emerging markets infrastructure industry, as represented by the S&P Emerging Markets Infrastructure 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 | |||||||||||||||||||||||||||
6-Month Total Returns |
1Year | 5 Years | 10 Years | 1 Year | 5 Years | 10 Years | ||||||||||||||||||||||
Fund NAV |
(2.89 | )% | 12.37 | % | (3.57 | )% | (1.96)% | 12.37 | % | (16.62 | )% | (17.97)% | ||||||||||||||||
Fund Market |
(2.41 | ) | 11.60 | (3.56 | ) | (2.04) | 11.60 | (16.56 | ) | (18.60) | ||||||||||||||||||
Index |
(2.57 | ) | 12.71 | (2.95 | ) | (1.49) | 12.71 | (13.91 | ) | (13.93) |
Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
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Beginning | Ending | Expenses | Beginning | Ending | Expenses | Annualized | ||||||||||||||||||||||||
Account Value | Account Value | Paid During | Account Value | Account Value | Paid During | Expense | ||||||||||||||||||||||||
(04/01/23) | (09/30/23) | the Period | (a) | (04/01/23) | (09/30/23) | the Period | (a) | Ratio | ||||||||||||||||||||||
$ 1,000.00 | $ 971.10 | $ 2.96 | $ 1,000.00 | $ 1,022.00 | $ 3.03 | 0.60 | % |
(a) |
Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information. |
Portfolio Information
SECTOR ALLOCATION
Sector | |
Percent of Total Investments |
(a) | |
Utilities |
40.3 | % | ||
Industrials |
39.3 | |||
Energy |
20.4 |
(a) |
Excludes money market funds. |
GEOGRAPHIC ALLOCATION
Country/Geographic Region | |
Percent of Total Investments |
(a) | |
China |
35.1 | % | ||
Brazil |
25.7 | |||
Mexico |
17.6 | |||
Thailand |
10.1 | |||
Qatar |
4.9 | |||
United Arab Emirates |
3.4 | |||
South Korea |
3.2 | |||
Russia |
0.0 |
6 |
2 0 2 3 I S H A R E S S E M I - 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 September 30, 2023 | iShares® Europe ETF |
Investment Objective
The iShares Europe ETF (the “Fund”) seeks to track the investment results of an index composed of European equities, as represented by the S&P Europe 350TM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
6-Month Total Returns |
1 Year | 5 Years | 10 Years | 1 Year | 5 Years | 10 Years | ||||||||||||||||||||||
Fund NAV |
(2.56 | )% | 29.81 | % | 3.96 | % | 3.70% | 29.81 | % | 21.43 | % | 43.84% | ||||||||||||||||
Fund Market |
(2.43 | ) | 29.80 | 4.02 | 3.67 | 29.80 | 21.76 | 43.43 | ||||||||||||||||||||
Index |
(2.09 | ) | 29.26 | 4.22 | 4.00 | 29.26 | 22.93 | 47.99 |
Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
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Beginning | Ending | Expenses | Beginning | Ending | Expenses | Annualized | ||||||||||||||||||||||||
Account Value | Account Value | Paid During | Account Value | Account Value | Paid During | Expense | ||||||||||||||||||||||||
(04/01/23) | (09/30/23) | the Period | (a) | (04/01/23) | (09/30/23) | the Period | (a) | Ratio | ||||||||||||||||||||||
$ 1,000.00 | $ 974.40 | $ 2.96 | $ 1,000.00 | $ 1,022.00 | $ 3.03 | 0.60 | % |
(a) |
Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information. |
Portfolio Information
SECTOR ALLOCATION
Sector | |
Percent of Total Investments |
(a) | |
Financials |
18.2 | % | ||
Health Care |
16.1 | |||
Industrials |
14.8 | |||
Consumer Staples |
12.2 | |||
Consumer Discretionary |
10.6 | |||
Materials |
7.0 | |||
Energy |
6.6 | |||
Information Technology |
6.6 | |||
Utilities |
4.0 | |||
Communication Services |
3.2 | |||
Real Estate |
0.7 |
(a) |
Excludes money market funds. |
GEOGRAPHIC ALLOCATION
Country/Geographic Region | |
Percent of Total Investments |
(a) | |
United Kingdom |
24.1 | % | ||
France |
18.0 | |||
Switzerland |
15.6 | |||
Germany |
12.4 | |||
Netherlands |
6.5 | |||
Denmark |
5.0 | |||
Sweden |
4.6 | |||
Spain |
3.9 | |||
Italy |
3.8 | |||
Belgium |
1.5 | |||
Finland |
1.4 | |||
Ireland |
1.3 | |||
Norway |
1.0 | |||
Other (each representing less than 1%) |
0.9 |
F U N D S U M M A R Y |
7 |
Fund Summary as of September 30, 2023 | iShares® Future Metaverse Tech and Communications ETF |
Investment Objective
The iShares Future MetaverseTech andCommunications ETF(the “Fund”) seeks to track the investment results of an index composed of U.S. and non-U.S. companies that provide products and services that are expected to contribute to the metaverse in areas including virtual platforms, social media, gaming, 3D software, digital assets, and virtual and augmented reality, as represented by the Morningstar Global Metaverse & Virtual Interaction Select Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Cumulative Total Returns | ||||||
6-Month Total Returns |
Since Inception | |||||
Fund NAV |
4.38 | % | 9.41% | |||
Fund Market |
4.56 | 9.39 | ||||
Index |
4.88 | 9.89 |
The inception date of the Fund was February 14, 2023. The first day of secondary market trading was February 16, 2023.
Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
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Beginning | Ending | Expenses | Beginning | Ending | Expenses | Annualized | ||||||||||||||||||||||||
Account Value | Account Value | Paid During | Account Value | Account Value | Paid During | Expense | ||||||||||||||||||||||||
(04/01/23) | (09/30/23) | the Period | (a) | (04/01/23) | (09/30/23) | the Period | (a) | Ratio | ||||||||||||||||||||||
$ 1,000.00 | $ 1,043.80 | $ 2.40 | $ 1,000.00 | $ 1,022.70 | $ 2.38 | 0.47 | % |
(a) |
Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information. |
Portfolio Information
SECTOR ALLOCATION
Industry | |
Percent of Total Investments |
(a) | |
Entertainment |
30.1 | % | ||
Software |
29.9 | |||
Semiconductors & Semiconductor Equipment |
14.5 | |||
Interactive Media & Services |
12.8 | |||
Technology Hardware, Storage & Peripherals |
6.9 | |||
Household Durables |
5.4 | |||
Other (each representing less than 1%) |
0.4 |
(a) |
Excludes money market funds. |
TEN LARGEST HOLDINGS
Security | |
Percent of Total Investments |
(a) | |
Apple Inc. |
5.9 | % | ||
Meta Platforms Inc., Class A |
5.0 | |||
Nvidia Corp |
4.8 | |||
Activision Blizzard Inc. |
4.7 | |||
NetEase Inc. |
4.6 | |||
Electronic Arts Inc. |
4.6 | |||
Take-Two Interactive Software Inc. |
4.6 | |||
ROBLOX Corp., Class A |
4.6 | |||
Nintendo Co.. Ltd. |
4.5 | |||
PTC Inc. |
4.4 |
8 |
2 0 2 3 I S H A R E S S E M I - 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 September 30, 2023 | iShares® India 50 ETF |
Investment Objective
The iShares India 50 ETF(the “Fund”) seeks to track the investment results of an index composed of 50 of the largest Indian equities, as represented by the Nifty 50 Index (the “Index”) and determined by the Index provider, NSE Indices Ltd.. The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||
6-Month Total Returns |
1 Year | 5 Years | 10 Years | 1 Year | 5 Years | 10 Years | ||||||||||||||||||||
Fund NAV |
9.65 | %(a) | 10.86 | % | 8.27 | % | 9.50% | 10.86 | % | 48.76 | % | 147.93% | ||||||||||||||
Fund Market |
10.11 | 11.13 | 8.26 | 9.50 | 11.13 | 48.70 | 147.90 | |||||||||||||||||||
Index |
12.84 | 13.70 | 10.72 | 11.32 | 13.70 | 66.38 | 192.13 |
(a) |
The NAV total return presented in the table for the six-months period differs from the same period return disclosed in the financial highlights. The total return in the financial highlights is calculated in the same manner but differs due to certain adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. |
Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
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Beginning | Ending | Expenses | Beginning | Ending | Expenses | Annualized | ||||||||||||||||||||||||
Account Value | Account Value | Paid During | Account Value | Account Value | Paid During | Expense | ||||||||||||||||||||||||
(04/01/23) | (09/30/23) | the Period | (a) | (04/01/23) | (09/30/23) | the Period | (a) | Ratio | ||||||||||||||||||||||
$ 1,000.00 | $ 1,096.50 | $ 4.66 | $ 1,000.00 | $ 1,020.60 | $ 4.50 | 0.89 | % |
(a) |
Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information. |
Portfolio Information
SECTOR ALLOCATION
Sector | |
Percent of Total Investments |
(a) | |
Financials |
36.0 | % | ||
Information Technology |
13.8 | |||
Energy |
11.2 | |||
Consumer Staples |
9.3 | |||
Consumer Discretionary |
7.8 | |||
Materials |
6.8 | |||
Industrials |
5.9 | |||
Health Care |
4.1 | |||
Communication Services |
2.7 | |||
Utilities |
2.4 |
(a) |
Excludes money market funds. |
TEN LARGEST HOLDINGS
Security | |
Percent of Total Investments |
(a) | |
HDFC Bank Ltd. |
13.3 | % | ||
Reliance Industries Ltd. |
9.2 | |||
ICICI Bank Ltd. |
7.7 | |||
Infosys Ltd. |
5.9 | |||
ITC Ltd. |
4.6 | |||
Larsen & Toubro Ltd. |
4.2 | |||
Tata Consultancy Services Ltd. |
4.2 | |||
Axis Bank Ltd. |
3.3 | |||
Kotak Mahindra Bank Ltd. |
3.0 | |||
Bharti Airtel Ltd. |
2.7 |
F U N D S U M M A R Y |
9 |
Fund Summary as of September 30, 2023 | iShares® International Developed Property ETF |
Investment Objective
The iShares International Developed Property ETF (the “Fund”) seeks to track the investment results of an index composed of real estate equities in developed non-U.S. markets, as represented by the S&P Developed ex-U.S. Property 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 notholdall of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
6-Month Total Returns |
1 Year | 5 Years | 10 Years | 1 Year | 5 Years | 10 Years | ||||||||||||||||||||||
Fund NAV |
(4.98 | )% | 2.78 | % | (3.71 | )% | 0.05% | 2.78 | % | (17.24 | )% | 0.53% | ||||||||||||||||
Fund Market |
(5.08 | ) | 2.83 | (3.71 | ) | 0.00 | 2.83 | (17.24 | ) | 0.03 | ||||||||||||||||||
Index |
(4.38 | ) | 2.90 | (3.59 | ) | 0.14 | 2.90 | (16.69 | ) | 1.36 |
Past performance is not an indication of future results.Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||
Beginning | Ending | Expenses | Beginning | Ending | Expenses | Annualized | ||||||||||||||||||||||||
Account Value | Account Value | Paid During | Account Value | Account Value | Paid During | Expense | ||||||||||||||||||||||||
(04/01/23) | (09/30/23) | the Period | (a) | (04/01/23) | (09/30/23) | the Period | (a) | Ratio | ||||||||||||||||||||||
$ 1,000.00 | $ 950.20 | $ 2.34 | $ 1,000.00 | $ 1,022.60 | $ 2.43 | 0.48 | % |
(a) |
Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information. |
Portfolio Information
INDUSTRY ALLOCATION
Industry | |
Percent of Total Investments |
(a) | |
Real Estate Operating Companies |
20.2 | % | ||
Diversified Real Estate Activities |
19.5 | |||
Industrial REITs |
14.3 | |||
Retail REITs |
13.4 | |||
Diversified REITs |
11.6 | |||
Office REITs |
8.4 | |||
Multi-Family Residential REITs |
4.0 | |||
Real Estate Development |
3.5 | |||
Health Care REITs |
1.8 | |||
Hotel & Resort REITs |
1.5 | |||
Self Storage REITs |
1.0 | |||
Other (each representing less than 1%) |
0.8 |
(a) |
Excludes money market funds. |
GEOGRAPHIC ALLOCATION
Country/Geographic Region | |
Percent of Total Investments |
(a) | |
Japan |
31.6 | % | ||
Australia |
12.9 | |||
Hong Kong |
10.8 | |||
United Kingdom |
9.3 | |||
Singapore |
8.5 | |||
Germany |
5.0 | |||
Sweden |
3.9 | |||
Canada |
3.5 | |||
France |
3.3 | |||
Switzerland |
2.8 | |||
Belgium |
2.4 | |||
Israel |
2.3 | |||
Other (each representing less than 1%) |
3.7 |
10 |
2 0 2 3 I S H A R E S S E M I - 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 September 30, 2023 | iShares® International Developed Small Cap Value Factor ETF |
Investment Objective
The iShares International Developed Small Cap Value Factor ETF (the “Fund”) seeks to track the investment results of an index composed of international developed market small-capitalization stocks, excluding the U.S. and Korea, with prominent value characteristics, as represented by the FTSE Developedex USex Korea SmallCap Focused Value Index (the”Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||
6-Month Total Returns |
1 Year | Since Inception |
1 Year | Since Inception | ||||||||||||||||
Fund NAV |
(1.06 | )% | 23.01 | % | (1.48 | )% | 23.01 | % | (3.70)% | |||||||||||
Fund Market |
(1.18 | ) | 23.17 | (1.35 | ) | 23.17 | (3.37) | |||||||||||||
Index |
(0.43 | ) | 23.23 | (1.15 | ) | 23.23 | (2.88) |
The inception date of the Fund was March 23, 2021. The first day of secondary market trading was March 25, 2021.
Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would payon fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||
Beginning | Ending | Expenses | Beginning | Ending | Expenses | Annualized | ||||||||||||||||||||||||
Account Value | Account Value | Paid During | Account Value | Account Value | Paid During | Expense | ||||||||||||||||||||||||
(04/01/23) | (09/30/23) | the Period | (a) | (04/01/23) | (09/30/23) | the Period | (a) | Ratio | ||||||||||||||||||||||
$ 1,000.00 | $ 989.40 | $ 1.54 | $ 1,000.00 | $ 1,023.50 | $ 1.57 | 0.31 | % |
(a) |
Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information. |
Portfolio Information
SECTOR ALLOCATION
Sector | Percent of Total Investments(a) | |
Industrials |
23.9% | |
Financials |
15.6 | |
Materials |
13.4 | |
Real Estate |
11.6 | |
Consumer Discretionary |
9.9 | |
Consumer Staples |
6.4 | |
Energy |
4.9 | |
Information Technology |
4.6 | |
Utilities |
3.6 | |
Health Care |
3.5 | |
Communication Services |
2.6 |
(a) |
Excludes money market funds. |
GEOGRAPHIC ALLOCATION
Country/Geographic Region | Percent of Total Investments(a) | |
Japan |
25.2% | |
Canada |
16.1 | |
United Kingdom |
14.6 | |
Switzerland |
7.7 | |
Australia |
6.4 | |
Sweden |
4.3 | |
Denmark |
3.4 | |
Spain |
3.2 | |
Germany |
2.9 | |
France |
2.7 | |
Austria |
2.2 | |
Belgium |
2.0 | |
Finland |
2.0 | |
Italy |
2.0 | |
Netherlands |
1.3 | |
Singapore |
1.0 | |
Other (each representing less than 1%) |
3.0 |
F U N D S U M M A R Y |
11 |
Fund Summary as of September 30, 2023 | iShares® International Dividend Growth ETF |
Investment Objective
The iShares International Dividend Growth ETF (the “Fund”) seeks to track the investment results of an index composed of international equities with a history of consistently growing dividends, as represented by the Morningstar Global ex-US Dividend Growth IndexSM (the ”Index”). The Fund invests in are presentative sample of securities included in the Index that collectively has an investment profile similar to the Index.Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||
6-Month Total Returns |
1 Year | 5 Years | Since Inception |
1 Year | 5 Years | Since Inception | ||||||||||||||||||||
Fund NAV |
0.06 | % | 20.78 | % | 3.94 | % | 5.60% | 20.78 | % | 21.33 | % | 49.44% | ||||||||||||||
Fund Market |
(0.37 | ) | 20.33 | 3.87 | 5.56 | 20.33 | 20.93 | 49.08 | ||||||||||||||||||
Index |
0.49 | 20.51 | 3.98 | 5.61 | 20.51 | 21.54 | 49.50 |
The inception date of the Fund was May 17, 2016. The first day of secondary market trading was May 19, 2016.
Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would payon fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||
Beginning | Ending | Expenses | Beginning | Ending | Expenses | Annualized | ||||||||||||||||||||||||
Account Value | Account Value | Paid During | Account Value | Account Value | Paid During | Expense | ||||||||||||||||||||||||
(04/01/23) | (09/30/23) | the Period | (a) | (04/01/23) | (09/30/23) | the Period | (a) | Ratio | ||||||||||||||||||||||
$ 1,000.00 | $ 1,000.60 | $ 0.75 | $ 1,000.00 | $ 1,024.30 | $ 0.76 | 0.15 | % |
(a) |
Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information. |
Portfolio Information
SECTOR ALLOCATION
Sector | |
Percent of Total Investments |
(a) | |
Financials |
27.7 | % | ||
Health Care |
16.1 | |||
Consumer Staples |
12.7 | |||
Industrials |
12.5 | |||
Utilities |
8.9 | |||
Information Technology |
6.7 | |||
Materials |
5.5 | |||
Energy |
3.1 | |||
Consumer Discretionary |
2.6 | |||
Communication Services |
2.6 | |||
Real Estate |
1.6 |
(a) |
Excludes money market funds. |
GEOGRAPHIC ALLOCATION
Country/Geographic Region | |
Percent of Total Investments |
(a) | |
Canada |
20.2 | % | ||
Japan |
18.9 | |||
Switzerland |
12.3 | |||
United Kingdom |
11.7 | |||
China |
6.2 | |||
Germany |
5.4 | |||
France |
4.6 | |||
Denmark |
3.8 | |||
Spain |
2.7 | |||
Hong Kong |
2.5 | |||
India |
2.4 | |||
Australia |
2.1 | |||
Netherlands |
1.2 | |||
Other (each representing less than 1%) |
6.0 |
12 |
2 0 2 3 I S H A R E S S E M I - 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 September 30, 2023 | iShares® Latin America 40 ETF |
Investment Objective
The iShares Latin America 40 ETF (the “Fund”) seeks to track the investment results of an index composed of 40 of the largest Latin American equities, as represented by the S&P Latin America 40TM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||
6-Month Total Returns |
1 Year | 5 Years | 10 Years | 1 Year | 5 Years | 10 Years | ||||||||||||||||||||
Fund NAV |
8.94 | % | 18.55 | % | 1.57 | % | 0.02% | 18.55 | % | 8.11 | % | 0.16% | ||||||||||||||
Fund Market |
9.03 | 18.63 | 1.60 | 0.01 | 18.63 | 8.26 | 0.08 | |||||||||||||||||||
Index |
9.33 | 19.27 | 1.92 | 0.42 | 19.27 | 9.96 | 4.27 |
Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would payon fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||
Beginning | Ending | Expenses | Beginning | Ending | Expenses | Annualized | ||||||||||||||||||||||||||
Account Value | Account Value | Paid During | Account Value | Account Value | Paid During | Expense | ||||||||||||||||||||||||||
(04/01/23) | (09/30/23) | the Period | (a) | (04/01/23) | (09/30/23) | the Period | (a) | Ratio | ||||||||||||||||||||||||
$ 1,000.00 | $ 1,089.40 | $ 2.51 | $ 1,000.00 | $ 1,022.60 | $ 2.43 | 0.48 | % |
(a) |
Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information. |
Portfolio Information
SECTOR ALLOCATION
Sector | |
Percent of Total Investments |
(a) | |
Financials |
31.6 | % | ||
Materials |
20.3 | |||
Energy |
15.1 | |||
Consumer Staples |
14.4 | |||
Industrials |
7.4 | |||
Communication Services |
4.9 | |||
Utilities |
2.7 | |||
Consumer Discretionary |
1.3 | |||
Health Care |
1.2 | |||
Real Estate |
1.1 |
(a) |
Excludes money market funds. |
GEOGRAPHIC ALLOCATION
Country/Geographic Region | |
Percent of Total Investments |
(a) | |
Brazil |
61.9 | % | ||
Mexico |
26.6 | |||
Chile |
6.2 | |||
Peru |
3.5 | |||
Colombia |
1.8 |
F U N D S U M M A R Y |
13 |
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.
Shareholders of each Fund may incur the following charges: (1) transactional expenses, including brokerage commissions on purchases and sales of fund shares and (2) ongoing expenses, including management fees and other fund expenses. The expense examples shown (which are based on a hypothetical investment of $1,000 invested at the beginning of the period and held through the end of the period) are intended to assist shareholders both in calculating expenses based on an investment in each Fund and in comparing these expenses with similar costs of investing in other funds.
The expense examples provide information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. In order to estimate the expenses a shareholder paid during the period covered by this report, shareholders can divide their account value by $1,000 and then multiply the result by the number under the heading entitled “Expenses Paid During the Period.”
The expense examples also provide information about hypothetical account values and hypothetical expenses based on a fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. In order to assist shareholders in comparing the ongoing expenses of investing in the Funds and other funds, compare the 5% hypothetical examples with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
The expenses shown in the expense examples are intended to highlight shareholders’ ongoing costs only and do not reflect any transactional expenses, such as brokerage commissions and other fees paid on purchases and sales of fund shares. Therefore, the hypothetical examples are useful in comparing ongoing expenses only and will not help shareholders determine the relative total expenses of owning different funds. If these transactional expenses were included, shareholder expenses would have been higher.
14 |
2 0 2 3 I S H A R E S S E M I - 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 (unaudited) September 30, 2023 |
iShares® Asia 50 ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
||||||||
China — 38.4% | ||||||||
Alibaba Group Holding Ltd.(a) |
10,050,000 | $ | 108,963,929 | |||||
ANTA Sports Products Ltd. |
773,800 | 8,658,308 | ||||||
Baidu Inc.(a) |
1,472,200 | 24,778,112 | ||||||
Bank of China Ltd., Class H |
54,392,000 | 18,948,971 | ||||||
BYD Co. Ltd., Class H |
607,000 | 18,701,802 | ||||||
China Construction Bank Corp., Class H |
64,003,960 | 35,979,936 | ||||||
China Merchants Bank Co. Ltd., Class H |
2,150,000 | 8,925,946 | ||||||
Industrial & Commercial Bank of China Ltd., Class H |
46,163,115 | 22,141,713 | ||||||
JD.com Inc., Class A |
1,598,900 | 23,262,124 | ||||||
Kuaishou Technology(a)(b) |
1,625,000 | 12,928,026 | ||||||
Li Auto Inc.(a) |
739,100 | 13,189,709 | ||||||
Li Ning Co. Ltd. |
1,526,000 | 6,372,089 | ||||||
Meituan, Class B(a)(b) |
2,823,680 | 40,876,128 | ||||||
NetEase Inc. |
1,213,600 | 24,334,184 | ||||||
Ping An Insurance Group Co. of China Ltd., Class H |
4,058,500 | 23,018,372 | ||||||
Tencent Holdings Ltd.(c) |
4,036,600 | 156,474,487 | ||||||
Wuxi Biologics Cayman Inc.(a)(b) |
2,322,000 | 13,495,133 | ||||||
Xiaomi Corp., Class B(a)(b) |
9,981,400 | 15,636,930 | ||||||
|
|
|||||||
576,685,899 | ||||||||
Hong Kong — 8.4% | ||||||||
AIA Group Ltd. |
7,490,400 | 60,575,929 | ||||||
CK Hutchison Holdings Ltd. |
1,743,648 | 9,257,178 | ||||||
Hong Kong Exchanges & Clearing Ltd. |
773,500 | 28,706,720 | ||||||
Link REIT |
1,666,460 | 8,148,208 | ||||||
Sun Hung Kai Properties Ltd.(c) |
980,000 | 10,456,557 | ||||||
Techtronic Industries Co. Ltd. |
859,500 | 8,297,257 | ||||||
|
|
|||||||
125,441,849 | ||||||||
Singapore — 4.9% | ||||||||
DBS Group Holdings Ltd. |
1,195,100 | 29,351,221 | ||||||
Oversea-Chinese Banking Corp. Ltd. |
2,525,674 | 23,620,227 | ||||||
United Overseas Bank Ltd. |
998,000 | 20,786,444 | ||||||
|
|
|||||||
73,757,892 | ||||||||
South Korea — 20.9% | ||||||||
Celltrion Inc.(c) |
75,230 | 7,762,756 | ||||||
Hyundai Motor Co. |
89,435 | 12,646,462 | ||||||
KB Financial Group Inc. |
242,612 | 9,895,388 | ||||||
Kia Corp. |
164,752 | 9,916,468 | ||||||
LG Chem Ltd. |
30,764 | 11,263,814 | ||||||
LG Energy Solution(a)(c) |
25,875 | 9,125,036 | ||||||
NAVER Corp. |
97,801 | 14,622,684 | ||||||
POSCO Holdings Inc. |
48,408 | 19,071,241 | ||||||
Samsung Electronics Co. Ltd. |
3,336,319 | 168,664,633 | ||||||
Samsung SDI Co. Ltd. |
33,994 | 12,846,756 | ||||||
Shinhan Financial Group Co. Ltd. |
320,302 | 8,429,763 | ||||||
SK Hynix Inc. |
349,733 | 29,610,021 | ||||||
|
|
|||||||
313,855,022 | ||||||||
Taiwan — 25.5% | ||||||||
Cathay Financial Holding Co. Ltd. |
6,297,235 | 8,695,141 | ||||||
Chunghwa Telecom Co. Ltd. |
2,454,551 | 8,822,574 | ||||||
CTBC Financial Holding Co. Ltd. |
12,738,359 | 9,678,278 |
Security | Shares | Value | ||||||
Taiwan (continued) | ||||||||
Delta Electronics Inc. |
1,250,000 | $ | 12,589,900 | |||||
Formosa Plastics Corp. |
3,105,071 | 7,675,955 | ||||||
Fubon Financial Holding Co. Ltd. |
5,502,780 | 10,360,236 | ||||||
Hon Hai Precision Industry Co. Ltd. |
7,826,052 | 25,225,203 | ||||||
MediaTek Inc. |
1,040,112 | 23,779,934 | ||||||
Nan Ya Plastics Corp. |
3,662,510 | 7,555,849 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. |
15,840,343 | 258,296,322 | ||||||
United Microelectronics Corp. |
7,563,000 | 10,619,710 | ||||||
|
|
|||||||
383,299,102 | ||||||||
|
|
|||||||
Total
Common Stocks — 98.1% |
|
1,473,039,764 | ||||||
|
|
|||||||
Preferred Stocks |
| |||||||
South Korea — 1.6% | ||||||||
Hyundai
Motor Co., Series 2, Preference |
23,473 | 1,840,038 | ||||||
LG Chem Ltd., Preference Shares, NVS |
5,001 | 1,150,587 | ||||||
Samsung
Electronics Co. Ltd., Preference |
535,249 | 21,563,288 | ||||||
|
|
|||||||
24,553,913 | ||||||||
|
|
|||||||
Total
Preferred Stocks — 1.6% |
24,553,913 | |||||||
|
|
|||||||
Total
Long-Term Investments — 99.7% |
1,497,593,677 | |||||||
|
|
|||||||
Short-Term Securities |
||||||||
Money Market Funds — 0.4% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 5.54%(d)(e)(f) |
5,373,301 | 5,374,913 | ||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 5.31%(d)(e) |
1,310,000 | 1,310,000 | ||||||
|
|
|||||||
Total
Short-Term Securities — 0.4% |
6,684,913 | |||||||
|
|
|||||||
Total
Investments — 100.1% |
1,504,278,590 | |||||||
Liabilities in Excess of Other Assets — (0.1)% |
|
(1,797,775 | ) | |||||
|
|
|||||||
Net Assets — 100.0% |
$ | 1,502,480,815 | ||||||
|
|
(a) |
Non-income producing security. |
(b) |
Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
(c) |
All or a portion of this security is on loan. |
(d) |
Affiliate of the Fund. |
(e) |
Annualized 7-day yield as of period end. |
(f) |
All or a portion of this security was purchased with the cash collateral from loaned securities. |
S C H E D U L E O F I N V E S T M E N T S |
15 |
Schedule of Investments (unaudited) (continued) September 30, 2023 |
iShares® Asia 50 ETF |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the six months ended September 30, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Issuer | Value at 03/31/23 |
Purchases at Cost |
Proceeds from Sale |
Net Realized Gain (Loss) |
Change in Unrealized Appreciation (Depreciation) |
Value at 09/30/23 |
Shares Held at 09/30/23 |
Income |
Capital Gain |
|||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares |
$ | — | $ | 5,372,175 | (a) | $ | — | $ | 2,201 | $ | 537 | $ | 5,374,913 | 5,373,301 | $ | 16,549 | (b) | $ | — | |||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares |
700,000 | 610,000 | (a) | — | — | — | 1,310,000 | 1,310,000 | 30,705 | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
$ | 2,201 | $ | 537 | $ | 6,684,913 | $ | 47,254 | $ | — | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) |
Represents net amount purchased (sold). |
(b) |
All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
Description | Number of Contracts |
Expiration Date |
Notional Amount (000) |
Value/ Unrealized Appreciation (Depreciation) |
||||||||||||
Long Contracts |
||||||||||||||||
FTSE Taiwan Index |
27 | 10/30/23 | $ | 1,543 | $ | 24,304 | ||||||||||
MSCI China Index |
85 | 12/15/23 | 1,885 | (46,442 | ) | |||||||||||
MSCI Emerging Markets Index |
23 | 12/15/23 | 1,099 | (31,595 | ) | |||||||||||
|
|
|||||||||||||||
$ | (53,733 | ) | ||||||||||||||
|
|
Derivative Financial Instruments Categorized by Risk Exposure
As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Commodity Contracts |
Credit Contracts |
Equity Contracts |
Foreign Currency Exchange Contracts |
Interest Rate Contracts |
Other Contracts |
Total | ||||||||||||||||||||||
Assets — Derivative Financial Instruments |
||||||||||||||||||||||||||||
Futures contracts |
||||||||||||||||||||||||||||
Unrealized appreciation on futures contracts(a) |
$ | — | $ | — | $ | 24,304 | $ | — | $ | — | $ | — | $ | 24,304 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Liabilities — Derivative Financial Instruments |
||||||||||||||||||||||||||||
Futures contracts |
||||||||||||||||||||||||||||
Unrealized depreciation on futures contracts(a) |
$ | — | $ | — | $ | 78,037 | $ | — | $ | — | $ | — | $ | 78,037 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 September 30, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:
Commodity Contracts |
Credit Contracts |
Equity Contracts |
Foreign Currency Exchange Contracts |
Interest Rate Contracts |
Other Contracts |
Total | ||||||||||||||||||||||
Net Realized Gain (Loss) from |
||||||||||||||||||||||||||||
Futures contracts |
$ | — | $ | — | $ | 35,085 | $ | — | $ | — | $ | — | $ | 35,085 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on |
||||||||||||||||||||||||||||
Futures contracts |
$ | — | $ | — | $ | (230,299 | ) | $ | — | $ | — | $ | — | $ | (230,299 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16 |
2 0 2 3 I S H A R E S S E M I - 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 (unaudited) (continued) September 30, 2023 |
iShares® Asia 50 ETF |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: |
||||
Average notional value of contracts — long |
$ | 6,930,169 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund_s financial instruments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets |
||||||||||||||||
Investments |
||||||||||||||||
Long-Term Investments |
||||||||||||||||
Common Stocks |
$ | — | $ | 1,473,039,764 | $ | — | $ | 1,473,039,764 | ||||||||
Preferred Stocks |
— | 24,553,913 | — | 24,553,913 | ||||||||||||
Short-Term Securities |
||||||||||||||||
Money Market Funds |
6,684,913 | — | — | 6,684,913 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 6,684,913 | $ | 1,497,593,677 | $ | — | $ | 1,504,278,590 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Derivative Financial Instruments(a) |
||||||||||||||||
Assets |
||||||||||||||||
Equity Contracts |
$ | — | $ | 24,304 | $ | — | $ | 24,304 | ||||||||
Liabilities |
||||||||||||||||
Equity Contracts |
(31,595 | ) | (46,442 | ) | — | (78,037 | ) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | (31,595 | ) | $ | (22,138 | ) | $ | — | (53,733 | ) | |||||||
|
|
|
|
|
|
|
|
(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 |
17 |
Schedule of Investments (unaudited) September 30, 2023 |
iShares® Blockchain and Tech ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
||||||||
Broadline Retail — 0.6% |
||||||||
GoTo Gojek Tokopedia Tbk PT(a) |
7,343,200 | $ | 40,176 | |||||
|
|
|||||||
Capital Markets — 17.3% |
||||||||
Allfunds Group PLC |
3,848 | 21,192 | ||||||
Bakkt Holdings Inc.(a)(b) |
71,846 | 84,060 | ||||||
Coinbase Global Inc., Class A(a)(b) |
12,777 | 959,297 | ||||||
Galaxy Digital Holdings Ltd.(a) |
25,820 | 94,859 | ||||||
Robinhood Markets Inc., Class A(a) |
4,400 | 43,164 | ||||||
SBI Holdings Inc. |
2,200 | 46,301 | ||||||
Voyager Digital Ltd.(a)(c) |
57,043 | — | ||||||
|
|
|||||||
1,248,873 | ||||||||
Financial Services — 7.3% |
||||||||
Block Inc.(a) |
5,034 | 222,805 | ||||||
PayPal Holdings Inc.(a) |
5,225 | 305,453 | ||||||
|
|
|||||||
528,258 | ||||||||
Hotels, Restaurants & Leisure — 0.1% |
||||||||
Everi Holdings Inc.(a) |
795 | 10,510 | ||||||
|
|
|||||||
Interactive Media & Services — 1.0% |
||||||||
Z Holdings Corp. |
25,000 | 69,353 | ||||||
|
|
|||||||
IT Services — 5.9% |
||||||||
DXC Technology Co.(a)(b) |
1,888 | 39,327 | ||||||
International Business Machines Corp. |
2,245 | 314,974 | ||||||
NTT Data Corp. |
5,400 | 72,259 | ||||||
|
|
|||||||
426,560 | ||||||||
Professional Services — 0.2% |
||||||||
SOS Ltd., ADR, ADR(a) |
2,783 | 12,190 | ||||||
|
|
|||||||
Semiconductors & Semiconductor Equipment — 9.1% |
||||||||
Advanced Micro Devices Inc.(a) |
3,035 | 312,059 | ||||||
Ambarella Inc.(a) |
346 | 18,348 | ||||||
Amlogic Shanghai Co. Ltd.(a) |
2,356 | 20,380 | ||||||
Goke Microelectronics Co. Ltd. |
1,200 | 11,963 | ||||||
Nvidia Corp. |
686 | 298,403 | ||||||
|
|
|||||||
661,153 | ||||||||
Software — 54.4% |
||||||||
Applied Blockchain Inc., NVS(a) |
64,651 | 403,422 | ||||||
Bit Digital Inc.(a)(b) |
83,344 | 178,356 | ||||||
Bitdeer Technologies Group, NVS |
3,450 | 33,258 | ||||||
Bitfarms Ltd./Canada(a)(b) |
224,076 | 239,761 |
Security | Shares | Value | ||||||
Software (continued) |
||||||||
Cipher Mining Inc.(a)(b) |
40,900 | $ | 95,297 | |||||
Cleanspark Inc.(a)(b) |
140,441 | 535,080 | ||||||
Hive Digital Technologies Ltd., NVS(b) |
77,926 | 240,012 | ||||||
Hut 8 Mining Corp.(a)(b) |
157,187 | 306,515 | ||||||
Iris Energy Ltd.(a)(b) |
39,015 | 144,746 | ||||||
Marathon Digital Holdings Inc.(a)(b) |
83,042 | 705,857 | ||||||
Northern Data AG(a) |
2,700 | 65,811 | ||||||
Riot Blockchain Inc.(a) |
90,263 | 842,154 | ||||||
Terawulf Inc.(a) |
114,429 | 144,181 | ||||||
|
|
|||||||
3,934,450 | ||||||||
Technology Hardware, Storage & Peripherals — 3.8% |
||||||||
Canaan Inc., ADR(a)(b) |
140,623 | 255,934 | ||||||
GRG Banking Equipment Co. Ltd., Class A |
9,700 | 16,147 | ||||||
|
|
|||||||
272,081 | ||||||||
|
|
|||||||
Total
Long-Term Investments — 99.7% |
|
7,203,604 | ||||||
|
|
|||||||
Short-Term Securities | ||||||||
Money Market Funds — 32.4% |
||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 5.54%(d)(e)(f) |
2,328,565 | 2,329,263 | ||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 5.31%(d)(e) |
10,000 | 10,000 | ||||||
|
|
|||||||
Total
Short-Term Securities — 32.4% |
|
2,339,263 | ||||||
|
|
|||||||
Total
Investments — 132.1% |
9,542,867 | |||||||
Liabilities in Excess of Other Assets — (32.1)% |
(2,316,401 | ) | ||||||
|
|
|||||||
Net Assets — 100.0% |
$ | 7,226,466 | ||||||
|
|
(a) |
Non-income producing security. |
(b) |
All or a portion of this security is on loan. |
(c) |
Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. |
(d) |
Affiliate of the Fund. |
(e) |
Annualized 7-day yield as of period end. |
(f) |
All or a portion of this security was purchased with the cash collateral from loaned securities. |
18 |
2 0 2 3 I S H A R E S S E M I - 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 (unaudited) (continued) September 30, 2023 |
iShares® Blockchain and Tech ETF |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the six months ended September 30, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
|
||||||||||||||||||||||||||||||||||||
Affiliated Issuer | Value at 03/31/23 |
Purchases at Cost |
Proceeds from Sale |
Net Realized Gain (Loss) |
Change
in Unrealized Appreciation (Depreciation) |
Value at 09/30/23 |
Shares Held at 09/30/23 |
Income |
Capital Gain |
|||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares |
$ | 2,274,838 | $ 54,437 | (a) | $ | — | $ | (205 | ) | $ | 193 | $ | 2,329,263 | 2,328,565 | $ | 51,058 | (b) | $ | — | |||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares |
— | 10,000 | (a) | — | — | — | 10,000 | 10,000 | 150 | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
$ | (205 | ) | $ | 193 | $ | 2,339,263 | $ | 51,208 | $ | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) |
Represents net amount purchased (sold). |
(b) |
All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
Description | Number of Contracts |
Expiration Date |
Notional Amount (000) |
Value/ Unrealized Appreciation (Depreciation) |
||||||||||||
Long Contracts |
||||||||||||||||
Micro E-Mini Russell 2000 Index |
1 | 12/15/23 | $ | 9 | $ | (393 | ) | |||||||||
|
|
Derivative Financial Instruments Categorized by Risk Exposure
As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
|
||||||||||||||||||||||||||||
Commodity Contracts |
Credit Contracts |
Equity Contracts |
Foreign Currency Exchange Contracts |
Interest Rate Contracts |
Other Contracts |
Total | ||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Liabilities — Derivative Financial Instruments |
||||||||||||||||||||||||||||
Futures contracts |
||||||||||||||||||||||||||||
Unrealized depreciation on futures contracts(a) |
$ | — | $ | — | $ | 393 | $ | — | $ | — | $ | — | $ | 393 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 September 30, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:
|
||||||||||||||||||||||||||||
Commodity Contracts |
Credit Contracts |
Equity Contracts |
Foreign Currency Exchange Contracts |
Interest Rate Contracts |
Other Contracts |
Total | ||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Net Realized Gain (Loss) from |
||||||||||||||||||||||||||||
Futures contracts |
$ | — | $ | — | $ | 1,134 | $ | — | $ | — | $ | — | $ | 1,134 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on |
||||||||||||||||||||||||||||
Futures contracts |
$ | — | $ | — | $ | (1,143 | ) | $ | — | $ | — | $ | — | $ | (1,143 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: |
||||
Average notional value of contracts — long |
$ | 4,497 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
S C H E D U L E O F I N V E S T M E N T S |
19 |
Schedule of Investments (unaudited) (continued) September 30, 2023 |
iShares® Blockchain and Tech ETF |
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.
|
||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
|
||||||||||||||||
Assets |
||||||||||||||||
Investments |
||||||||||||||||
Long-Term Investments |
||||||||||||||||
Common Stocks |
$ | 6,840,022 | $ | 363,582 | $ | — | $ | 7,203,604 | ||||||||
Short-Term Securities |
||||||||||||||||
Money Market Funds |
2,339,263 | — | — | 2,339,263 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 9,179,285 | $ | 363,582 | $ | — | $ | 9,542,867 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Derivative Financial Instruments(a) |
||||||||||||||||
Liabilities |
||||||||||||||||
Equity Contracts |
$ | (393 | ) | $ | — | $ | — | $ | (393 | ) | ||||||
|
|
|
|
|
|
|
|
(a) |
Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument. |
See notes to financial statements.
20 |
2 0 2 3 I S H A R E S S E M I - 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 (unaudited) September 30, 2023 |
iShares® Emerging Markets Infrastructure ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
||||||||
Brazil — 22.1% | ||||||||
CCR SA |
256,200 | $ | 656,995 | |||||
Centrais Eletricas Brasileiras SA, ADR |
204,277 | 1,493,265 | ||||||
Cia. de Saneamento Basico do Estado de Sao Paulo, ADR |
67,440 | 817,373 | ||||||
Cia. Paranaense de Energia, ADR |
73,040 | 640,561 | ||||||
Ultrapar Participacoes SA, ADR |
262,100 | 961,907 | ||||||
|
|
|||||||
4,570,101 | ||||||||
China — 34.8% | ||||||||
Beijing Capital International Airport Co. Ltd., Class H(a) |
440,000 | 203,486 | ||||||
CGN Power Co. Ltd., Class H(b) |
2,100,000 | 543,649 | ||||||
China Gas Holdings Ltd. |
580,000 | 546,717 | ||||||
China Longyuan Power Group Corp. Ltd., Class H |
660,000 | 572,401 | ||||||
China Merchants Port Holdings Co. Ltd. |
332,000 | 412,688 | ||||||
China Oilfield Services Ltd., Class H |
656,000 | 785,066 | ||||||
China Resources Gas Group Ltd. |
178,000 | 520,483 | ||||||
China Resources Power Holdings Co. Ltd. |
352,000 | 669,738 | ||||||
China Suntien Green Energy Corp. Ltd., Class H(c) |
660,000 | 227,902 | ||||||
COSCO SHIPPING Energy Transportation Co. Ltd., Class H |
470,000 | 511,621 | ||||||
COSCO SHIPPING Ports Ltd.(c) |
382,000 | 248,855 | ||||||
Guangdong Investment Ltd. |
556,000 | 423,777 | ||||||
Jiangsu Expressway Co. Ltd., Class H |
318,000 | 286,831 | ||||||
Kunlun Energy Co. Ltd. |
788,000 | 678,117 | ||||||
Shenzhen Expressway Co. Ltd., Class H |
160,000 | 130,518 | ||||||
Shenzhen International Holdings Ltd. |
347,499 | 213,844 | ||||||
Zhejiang Expressway Co. Ltd., Class H |
304,000 | 226,205 | ||||||
|
|
|||||||
7,201,898 | ||||||||
Mexico — 17.4% | ||||||||
Grupo Aeroportuario del Centro Norte SAB de CV, ADR |
8,920 | 775,237 | ||||||
Grupo Aeroportuario del Pacifico SAB de CV, ADR |
10,140 | 1,666,712 | ||||||
Grupo Aeroportuario del Sureste SAB de CV, ADR |
4,740 | 1,164,665 | ||||||
|
|
|||||||
3,606,614 | ||||||||
Qatar — 4.8% | ||||||||
Qatar Gas Transport Co. Ltd. |
981,600 | 1,001,909 | ||||||
|
|
|||||||
South Korea — 3.1% | ||||||||
Korea Electric Power Corp., ADR(a)(c) |
101,360 | 652,758 | ||||||
|
|
|||||||
Thailand — 10.1% | ||||||||
Airports of Thailand PCL, NVDR(a) |
1,090,000 | 2,085,403 | ||||||
|
|
|||||||
United Arab Emirates — 3.4% | ||||||||
ADNOC Drilling Co. PJSC |
636,380 | 696,491 | ||||||
|
|
|||||||
Total
Common Stocks — 95.7% |
19,815,174 | |||||||
|
|
Security | Shares | Value | ||||||
Preferred Stocks |
||||||||
Brazil — 3.4% | ||||||||
Cia. Energetica de Minas Gerais, Preference Shares, ADR |
289,220 | $ | 699,913 | |||||
|
|
|||||||
Russia — 0.0% | ||||||||
Transneft PJSC, Preference Shares, NVS(a)(d) |
640 | — | ||||||
|
|
|||||||
Total
Preferred Stocks — 3.4% |
|
699,913 | ||||||
|
|
|||||||
Total
Long-Term Investments — 99.1% |
|
20,515,087 | ||||||
|
|
|||||||
Short-Term Securities |
||||||||
Money Market Funds — 3.4% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 5.54%(e)(f)(g) |
695,875 | 696,084 | ||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 5.31%(e)(f) |
10,000 | 10,000 | ||||||
|
|
|||||||
Total
Short-Term Securities — 3.4% |
706,084 | |||||||
|
|
|||||||
Total
Investments — 102.5% |
21,221,171 | |||||||
Liabilities in Excess of Other Assets — (2.5)% |
|
(521,495 | ) | |||||
|
|
|||||||
Net Assets — 100.0% |
$ | 20,699,676 | ||||||
|
|
(a) |
Non-income producing security. |
(b) |
Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
(c) |
All or a portion of this security is on loan. |
(d) |
Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. |
(e) |
Affiliate of the Fund. |
(f) |
Annualized 7-day yield as of period end. |
(g) |
All or a portion of this security was purchased with the cash collateral from loaned securities. |
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 (unaudited) (continued) September 30, 2023 |
iShares® Emerging Markets Infrastructure ETF |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the six months ended September 30, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
|
||||||||||||||||||||||||||||||||||||
Affiliated Issuer | Value at 03/31/23 |
Purchases at Cost |
Proceeds from Sale |
Net Realized Gain (Loss) |
Change
in Unrealized Appreciation (Depreciation) |
Value at 09/30/23 |
Shares Held at 09/30/23 |
Income | Capital Gain Distributions from Underlying Funds |
|||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares |
$ | 951,005 | $ | — | $ | (254,800 | )(a) | $ | (298 | ) | $ | 177 | $ | 696,084 | 695,875 | $ | 2,241 | (b) | $ | — | ||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares |
40,000 | — | (30,000 | )(a) | — | — | 10,000 | 10,000 | 3,824 | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
$ | (298 | ) | $ | 177 | $ | 706,084 | $ | 6,065 | $ | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) |
Represents net amount purchased (sold). |
(b) |
All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
|
||||||||||||||||
Description | Number of Contracts |
Expiration Date |
Notional Amount (000) |
Value/ Unrealized Appreciation (Depreciation) |
||||||||||||
|
||||||||||||||||
Long Contracts |
||||||||||||||||
MSCI Emerging Markets Index |
3 | 12/15/23 | $ | 143 | $ | (1 | ) | |||||||||
|
|
Derivative Financial Instruments Categorized by Risk Exposure
As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
|
||||||||||||||||||||||||||||
Commodity Contracts |
Credit Contracts |
Equity Contracts |
Foreign Currency Exchange Contracts |
Interest Rate Contracts |
Other Contracts |
Total |
||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Liabilities — Derivative Financial Instruments |
||||||||||||||||||||||||||||
Futures contracts |
||||||||||||||||||||||||||||
Unrealized depreciation on futures contracts(a) |
$ | — | $ | — | $ | 1 | $ | — | $ | — | $ | — | $ | 1 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 September 30, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:
|
||||||||||||||||||||||||||||
Commodity Contracts |
Credit Contracts |
Equity Contracts |
Foreign Currency Exchange Contracts |
Interest Rate Contracts |
Other Contracts |
Total | ||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Net Realized Gain (Loss) from |
||||||||||||||||||||||||||||
Futures contracts |
$ | — | $ | — | $ | 13,238 | $ | — | $ | — | $ | — | $ | 3,238 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on |
||||||||||||||||||||||||||||
Futures contracts |
$ | — | $ | — | $ | (1,986 | ) | $ | — | $ | — | $ | — | $ | (1,986 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: |
||||
Average notional value of contracts — long |
$ | 246,295 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
22 |
2 0 2 3 I S H A R E S S E M I - 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 (unaudited) (continued) September 30, 2023 |
iShares® Emerging Markets Infrastructure ETF |
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of financial instruments. For a description of the inputl evels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.
|
||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
|
||||||||||||||||
Assets |
||||||||||||||||
Investments |
||||||||||||||||
Long-Term Investments |
||||||||||||||||
Common Stocks |
$ | 9,525,964 | $ | 10,289,210 | $ | — | $ | 19,815,174 | ||||||||
Preferred Stocks |
699,913 | — | — | 699,913 | ||||||||||||
Short-Term Securities |
||||||||||||||||
Money Market Funds |
706,084 | — | — | 706,084 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 10,931,961 | $ | 10,289,210 | $ | — | $ | 21,221,171 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Derivative Financial Instruments(a) |
||||||||||||||||
Liabilities |
||||||||||||||||
Equity Contracts |
$ | (1 | ) | $ | — | $ | — | $ | (1 | ) | ||||||
|
|
|
|
|
|
|
|
(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 |
23 |
Schedule of Investments (unaudited) September 30, 2023 |
iShares® Europe ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
||||||||
Austria — 0.3% | ||||||||
Erste Group Bank AG |
61,110 | $ | 2,110,548 | |||||
OMV AG |
24,792 | 1,184,179 | ||||||
Verbund AG |
14,289 | 1,162,433 | ||||||
|
|
|||||||
4,457,160 | ||||||||
Belgium — 1.5% | ||||||||
Ageas SA/NV |
29,227 | 1,203,755 | ||||||
Anheuser-Busch InBev SA/NV |
178,553 | 9,898,290 | ||||||
Argenx SE(a) |
10,028 | 4,901,959 | ||||||
Groupe Bruxelles Lambert NV |
17,184 | 1,278,665 | ||||||
KBC Group NV |
56,901 | 3,542,463 | ||||||
Solvay SA |
12,415 | 1,371,972 | ||||||
UCB SA |
21,288 | 1,743,684 | ||||||
Umicore SA |
34,159 | 808,768 | ||||||
|
|
|||||||
24,749,556 | ||||||||
Denmark — 5.0% | ||||||||
AP Moller - Maersk A/S, Class A |
450 | 796,364 | ||||||
AP Moller - Maersk A/S, Class B, NVS |
805 | 1,448,110 | ||||||
Carlsberg A/S, Class B |
16,512 | 2,081,915 | ||||||
Chr Hansen Holding A/S |
17,083 | 1,045,018 | ||||||
Coloplast A/S, Class B |
19,587 | 2,072,638 | ||||||
Danske Bank A/S |
115,039 | 2,669,593 | ||||||
DSV A/S |
30,683 | 5,717,492 | ||||||
Genmab A/S(a) |
11,286 | 3,995,815 | ||||||
GN Store Nord A/S(a) |
25,785 | 463,593 | ||||||
Novo Nordisk A/S |
553,859 | 50,429,516 | ||||||
Novozymes A/S, Class B |
36,059 | 1,450,829 | ||||||
Orsted A/S(b) |
32,575 | 1,772,183 | ||||||
Pandora A/S |
14,332 | 1,478,937 | ||||||
Tryg A/S |
59,555 | 1,089,820 | ||||||
Vestas Wind Systems A/S(a) |
172,543 | 3,691,365 | ||||||
|
|
|||||||
80,203,188 | ||||||||
Finland — 1.4% | ||||||||
Elisa OYJ |
24,826 | 1,151,260 | ||||||
Fortum OYJ |
76,627 | 888,648 | ||||||
Kesko OYJ, Class B |
47,048 | 842,923 | ||||||
Kone OYJ, Class B |
69,094 | 2,911,624 | ||||||
Metso OYJ |
121,724 | 1,276,503 | ||||||
Neste OYJ |
73,791 | 2,499,200 | ||||||
Nokia OYJ |
904,583 | 3,401,297 | ||||||
Sampo OYJ, Class A |
79,849 | 3,451,991 | ||||||
Stora Enso OYJ, Class R |
102,387 | 1,283,254 | ||||||
UPM-Kymmene OYJ |
91,432 | 3,130,710 | ||||||
Wartsila OYJ Abp |
84,723 | 960,244 | ||||||
|
|
|||||||
21,797,654 | ||||||||
France — 18.0% | ||||||||
Accor SA |
29,171 | 981,149 | ||||||
Air Liquide SA |
89,722 | 15,112,011 | ||||||
Airbus SE |
105,611 | 14,135,872 | ||||||
Alstom SA |
53,230 | 1,265,128 | ||||||
ArcelorMittal SA |
78,889 | 1,975,069 | ||||||
Arkema SA |
10,958 | 1,078,712 | ||||||
AXA SA |
297,408 | 8,823,757 | ||||||
BNP Paribas SA |
186,074 | 11,831,752 | ||||||
Bouygues SA |
32,594 | 1,139,636 | ||||||
Bureau Veritas SA |
48,458 | 1,201,569 | ||||||
Capgemini SE |
26,692 | 4,657,588 | ||||||
Carrefour SA |
98,053 | 1,684,070 |
Security | Shares | Value | ||||||
France (continued) | ||||||||
Cie. de Saint-Gobain |
87,813 | $ | 5,255,641 | |||||
Cie. Generale des Etablissements Michelin SCA |
122,012 | 3,734,416 | ||||||
Credit Agricole SA |
191,790 | 2,358,020 | ||||||
Danone SA |
107,697 | 5,940,323 | ||||||
Dassault Systemes SE |
115,767 | 4,299,867 | ||||||
Edenred |
41,158 | 2,574,681 | ||||||
Eiffage SA |
13,043 | 1,238,010 | ||||||
Engie SA |
309,625 | 4,748,458 | ||||||
EssilorLuxottica SA |
48,953 | 8,515,159 | ||||||
Eurofins Scientific SE |
21,902 | 1,234,335 | ||||||
Euronext NV(b) |
16,994 | 1,182,088 | ||||||
Gecina SA |
9,223 | 940,359 | ||||||
Getlink SE |
55,589 | 886,194 | ||||||
Hermes International |
5,787 | 10,548,701 | ||||||
Kering SA |
12,073 | 5,485,522 | ||||||
Legrand SA |
44,757 | 4,112,554 | ||||||
L’Oreal SA |
39,480 | 16,360,988 | ||||||
LVMH Moet Hennessy Louis Vuitton SE |
44,722 | 33,757,526 | ||||||
Orange SA |
311,341 | 3,571,164 | ||||||
Pernod Ricard SA |
34,148 | 5,685,297 | ||||||
Publicis Groupe SA |
39,486 | 2,988,799 | ||||||
Renault SA |
34,337 | 1,404,949 | ||||||
Safran SA |
59,131 | 9,266,370 | ||||||
Sanofi |
191,659 | 20,579,433 | ||||||
Sartorius Stedim Biotech |
4,047 | 962,795 | ||||||
Schneider Electric SE |
92,242 | 15,200,750 | ||||||
Societe Generale SA |
125,291 | 3,031,742 | ||||||
Sodexo SA |
14,213 | 1,463,194 | ||||||
Teleperformance |
9,871 | 1,239,367 | ||||||
Thales SA |
16,205 | 2,277,501 | ||||||
TotalEnergies SE |
398,008 | 26,168,755 | ||||||
Unibail-Rodamco-Westfield, New(a) |
18,483 | 908,910 | ||||||
Valeo |
39,913 | 684,905 | ||||||
Veolia Environnement SA |
104,170 | 3,011,153 | ||||||
Vinci SA |
86,997 | 9,624,567 | ||||||
Vivendi SE |
105,858 | 927,116 | ||||||
Worldline SA/France(a)(b) |
42,287 | 1,187,050 | ||||||
|
|
|||||||
287,242,972 | ||||||||
Germany — 11.8% | ||||||||
adidas AG |
28,369 | 4,976,166 | ||||||
Allianz SE, Registered |
69,090 | 16,441,770 | ||||||
BASF SE |
152,787 | 6,915,895 | ||||||
Bayer AG, Registered |
168,294 | 8,082,216 | ||||||
Bayerische Motoren Werke AG |
49,661 | 5,043,924 | ||||||
Beiersdorf AG |
16,907 | 2,180,818 | ||||||
Brenntag SE |
26,467 | 2,047,929 | ||||||
Commerzbank AG |
180,400 | 2,047,421 | ||||||
Continental AG |
18,467 | 1,297,530 | ||||||
Covestro AG(a)(b) |
32,837 | 1,765,807 | ||||||
Daimler Truck Holding AG |
88,815 | 3,075,152 | ||||||
Delivery Hero SE(a)(b) |
34,612 | 988,293 | ||||||
Deutsche Bank AG, Registered |
350,979 | 3,857,354 | ||||||
Deutsche Boerse AG |
32,548 | 5,620,935 | ||||||
Deutsche Post AG, Registered |
161,321 | 6,545,683 | ||||||
Deutsche Telekom AG, Registered |
600,913 | 12,605,228 | ||||||
E.ON SE |
383,596 | 4,536,410 | ||||||
Fresenius Medical Care AG & Co. KGaA |
34,187 | 1,469,766 | ||||||
Fresenius SE & Co. KGaA |
69,570 | 2,160,859 | ||||||
GEA Group AG |
27,215 | 1,002,991 | ||||||
Hannover Rueck SE |
10,423 | 2,287,002 |
24 |
2 0 2 3 I S H A R E S S E M I - 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 (unaudited) (continued) September 30, 2023 |
iShares® Europe ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Germany (continued) | ||||||||
HeidelbergCement AG |
23,888 | $ | 1,850,134 | |||||
HelloFresh SE(a) |
28,190 | 837,652 | ||||||
Henkel AG & Co. KGaA |
16,759 | 1,056,683 | ||||||
Infineon Technologies AG |
223,711 | 7,409,473 | ||||||
LEG Immobilien SE(a) |
13,093 | 900,369 | ||||||
Mercedes-Benz Group AG |
137,451 | 9,566,140 | ||||||
Merck KGaA |
22,094 | 3,683,232 | ||||||
MTU Aero Engines AG |
9,337 | 1,691,019 | ||||||
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen, Registered |
23,378 | 9,104,621 | ||||||
Puma SE |
16,750 | 1,035,692 | ||||||
Rheinmetall AG |
7,462 | 1,919,610 | ||||||
RWE AG |
115,956 | 4,304,262 | ||||||
SAP SE |
174,673 | 22,610,028 | ||||||
Siemens AG, Registered |
128,821 | 18,409,633 | ||||||
Siemens Healthineers AG(b) |
48,308 | 2,443,508 | ||||||
Symrise AG, Class A |
22,860 | 2,176,245 | ||||||
Volkswagen AG |
4,817 | 632,605 | ||||||
Vonovia SE |
139,553 | 3,343,453 | ||||||
Zalando SE(a)(b) |
37,670 | 836,965 | ||||||
|
|
|||||||
188,760,473 | ||||||||
Ireland — 1.3% | ||||||||
Bank of Ireland Group PLC |
164,150 | 1,604,666 | ||||||
CRH PLC |
125,434 | 6,915,696 | ||||||
Flutter Entertainment PLC, Class DI(a) |
30,253 | 4,935,182 | ||||||
Kerry Group PLC, Class A |
26,039 | 2,175,674 | ||||||
Kingspan Group PLC |
25,796 | 1,926,528 | ||||||
Ryanair Holdings PLC, ADR(a)(c) |
17,385 | 1,689,996 | ||||||
Smurfit Kappa Group PLC |
43,979 | 1,460,972 | ||||||
|
|
|||||||
20,708,714 | ||||||||
Italy — 3.8% | ||||||||
Assicurazioni Generali SpA |
189,656 | 3,871,332 | ||||||
Banco BPM SpA |
259,558 | 1,236,146 | ||||||
Enel SpA |
1,323,620 | 8,117,420 | ||||||
Eni SpA |
417,768 | 6,710,945 | ||||||
Ferrari NV |
21,616 | 6,372,083 | ||||||
FinecoBank Banca Fineco SpA |
101,274 | 1,222,911 | ||||||
Intesa Sanpaolo SpA |
2,770,297 | 7,095,331 | ||||||
Mediobanca Banca di Credito Finanziario SpA |
107,878 | 1,422,274 | ||||||
Moncler SpA |
35,501 | 2,057,460 | ||||||
Nexi SpA(a)(b) |
146,733 | 894,055 | ||||||
Prysmian SpA |
47,231 | 1,895,771 | ||||||
Snam SpA |
343,843 | 1,613,404 | ||||||
Stellantis NV |
378,997 | 7,257,196 | ||||||
Telecom Italia SpA/Milano(a) |
1,964,435 | 612,640 | ||||||
Tenaris SA |
75,091 | 1,186,134 | ||||||
Terna - Rete Elettrica Nazionale |
235,132 | 1,768,530 | ||||||
UniCredit SpA |
309,203 | 7,367,188 | ||||||
|
|
|||||||
60,700,820 | ||||||||
Netherlands — 6.4% | ||||||||
ABN AMRO Bank NV, CVA(b) |
72,553 | 1,025,359 | ||||||
Adyen NV(a)(b) |
5,298 | 3,928,116 | ||||||
Aegon NV |
241,930 | 1,166,033 | ||||||
Akzo Nobel NV |
29,094 | 2,097,632 | ||||||
ASM International NV |
7,767 | 3,243,441 | ||||||
ASML Holding NV |
69,171 | 40,724,426 | ||||||
BE Semiconductor Industries NV |
13,901 | 1,359,607 | ||||||
EXOR NV, NVS |
17,753 | 1,570,229 | ||||||
Ferrovial SE |
85,327 | 2,607,336 |
Security | Shares | Value | ||||||
Netherlands (continued) | ||||||||
Heineken Holding NV |
18,000 | $ | 1,356,502 | |||||
Heineken NV |
43,416 | 3,827,620 | ||||||
IMCD NV |
9,614 | 1,215,543 | ||||||
ING Groep NV |
620,041 | 8,172,182 | ||||||
Koninklijke Ahold Delhaize NV |
166,703 | 5,024,376 | ||||||
Koninklijke KPN NV |
574,039 | 1,891,266 | ||||||
Koninklijke Philips NV(a)(c) |
159,083 | 3,174,063 | ||||||
NN Group NV |
49,202 | 1,577,326 | ||||||
Prosus NV(a) |
259,689 | 7,652,003 | ||||||
QIAGEN NV(a) |
40,058 | 1,616,323 | ||||||
Randstad NV |
20,773 | 1,147,627 | ||||||
Universal Music Group NV |
131,137 | 3,422,173 | ||||||
Wolters Kluwer NV |
44,114 | 5,341,121 | ||||||
|
|
|||||||
103,140,304 | ||||||||
Norway — 1.0% | ||||||||
Aker BP ASA |
53,115 | 1,466,614 | ||||||
DNB Bank ASA |
153,269 | 3,079,445 | ||||||
Equinor ASA |
169,773 | 5,563,806 | ||||||
Mowi ASA |
75,444 | 1,333,494 | ||||||
Norsk Hydro ASA |
226,461 | 1,417,157 | ||||||
Orkla ASA |
128,008 | 956,083 | ||||||
Telenor ASA |
110,092 | 1,248,513 | ||||||
Yara International ASA |
27,474 | 1,037,409 | ||||||
|
|
|||||||
16,102,521 | ||||||||
Portugal — 0.3% | ||||||||
EDP - Energias de Portugal SA |
516,659 | 2,148,240 | ||||||
Galp Energia SGPS SA |
74,496 | 1,103,443 | ||||||
Jeronimo Martins SGPS SA |
47,432 | 1,065,238 | ||||||
|
|
|||||||
4,316,921 | ||||||||
Singapore — 0.3% | ||||||||
STMicroelectronics NV, New |
112,103 | 4,832,053 | ||||||
|
|
|||||||
Spain — 3.9% | ||||||||
ACS Actividades de Construccion y Servicios SA |
34,310 | 1,233,434 | ||||||
Aena SME SA(b) |
12,717 | 1,913,623 | ||||||
Amadeus IT Group SA |
77,173 | 4,661,456 | ||||||
Banco Bilbao Vizcaya Argentaria SA |
1,019,248 | 8,248,701 | ||||||
Banco Santander SA |
2,799,493 | 10,660,662 | ||||||
CaixaBank SA |
693,983 | 2,764,822 | ||||||
Cellnex Telecom SA(b) |
99,749 | 3,469,470 | ||||||
Enagas SA |
40,348 | 668,143 | ||||||
Endesa SA |
52,455 | 1,067,534 | ||||||
Grifols SA(a) |
49,056 | 635,368 | ||||||
Iberdrola SA |
989,930 | 11,071,820 | ||||||
Industria de Diseno Textil SA |
191,701 | 7,133,586 | ||||||
Naturgy Energy Group SA |
30,808 | 838,136 | ||||||
Redeia Corp. SA |
72,128 | 1,134,669 | ||||||
Repsol SA |
221,527 | 3,643,899 | ||||||
Telefonica SA |
982,511 | 4,013,893 | ||||||
|
|
|||||||
63,159,216 | ||||||||
Sweden — 4.6% | ||||||||
Alfa Laval AB |
49,604 | 1,699,328 | ||||||
Assa Abloy AB, Class B |
170,071 | 3,695,399 | ||||||
Atlas Copco AB, Class A |
442,881 | 5,948,187 | ||||||
Atlas Copco AB, Class B |
269,696 | 3,154,106 | ||||||
Boliden AB |
45,646 | 1,309,894 | ||||||
Electrolux AB, Class B(a) |
39,792 | 410,058 | ||||||
Embracer Group AB, Class B(a)(c) |
146,531 | 292,262 | ||||||
Epiroc AB, Class A |
107,371 | 2,038,680 |
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 (unaudited) (continued) September 30, 2023 |
iShares® Europe ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Sweden (continued) | ||||||||
Epiroc AB, Class B |
64,326 | $ | 1,029,042 | |||||
EQT AB |
58,889 | 1,160,289 | ||||||
Essity AB, Class B |
100,437 | 2,166,148 | ||||||
Evolution AB(b) |
32,871 | 3,316,987 | ||||||
Getinge AB, Class B |
36,495 | 641,304 | ||||||
H & M Hennes & Mauritz AB, Class B |
105,728 | 1,499,244 | ||||||
Hexagon AB, Class B |
363,606 | 3,094,554 | ||||||
Industrivarden AB, Class A |
29,662 | 782,163 | ||||||
Industrivarden AB, Class C |
30,164 | 794,854 | ||||||
Investor AB, Class B |
312,107 | 5,975,136 | ||||||
Kinnevik AB, Class B(a) |
42,614 | 423,196 | ||||||
Nibe Industrier AB, Class B |
265,635 | 1,736,653 | ||||||
Nordea Bank Abp |
613,166 | 6,722,585 | ||||||
Sandvik AB |
185,336 | 3,410,247 | ||||||
Skandinaviska Enskilda Banken AB, Class A |
282,625 | 3,369,414 | ||||||
Skanska AB, Class B |
65,370 | 1,073,411 | ||||||
SKF AB, Class B |
62,006 | 1,029,395 | ||||||
Svenska Cellulosa AB SCA, Class B |
100,330 | 1,373,730 | ||||||
Svenska Handelsbanken AB, Class A |
269,852 | 2,401,113 | ||||||
Swedbank AB, Class A |
156,664 | 2,879,704 | ||||||
Tele2 AB, Class B |
89,853 | 687,149 | ||||||
Telefonaktiebolaget LM Ericsson, Class B |
528,030 | 2,572,435 | ||||||
Telia Co. AB |
400,907 | 826,950 | ||||||
Volvo AB, Class B |
272,112 | 5,604,864 | ||||||
|
|
|||||||
73,118,481 | ||||||||
Switzerland — 15.6% | ||||||||
ABB Ltd., Registered |
277,270 | 9,896,648 | ||||||
Adecco Group AG, Registered |
27,662 | 1,136,164 | ||||||
Alcon Inc. |
85,378 | 6,588,397 | ||||||
Baloise Holding AG, Registered |
7,875 | 1,140,113 | ||||||
Barry Callebaut AG, Registered |
659 | 1,047,970 | ||||||
Chocoladefabriken
Lindt & Spruengli AG, |
185 | 2,055,820 | ||||||
Chocoladefabriken Lindt & Spruengli AG, Registered |
18 | 1,970,923 | ||||||
Cie. Financiere Richemont SA, Class A, Registered |
89,188 | 10,861,602 | ||||||
DSM-Firmenich AG |
35,499 | 2,999,767 | ||||||
Geberit AG, Registered |
5,727 | 2,855,926 | ||||||
Givaudan SA, Registered |
1,365 | 4,444,209 | ||||||
Holcim AG |
91,273 | 5,842,285 | ||||||
Julius Baer Group Ltd. |
35,415 | 2,266,839 | ||||||
Kuehne + Nagel International AG, Registered |
9,464 | 2,689,012 | ||||||
Logitech International SA, Registered |
29,058 | 1,999,144 | ||||||
Lonza Group AG, Registered |
12,724 | 5,885,448 | ||||||
Nestle SA, Registered |
457,385 | 51,774,151 | ||||||
Novartis AG, Registered |
355,667 | 36,323,784 | ||||||
Partners Group Holding AG |
3,799 | 4,264,736 | ||||||
Roche Holding AG, Bearer |
4,484 | 1,317,340 | ||||||
Roche Holding AG, NVS |
120,353 | 32,856,493 | ||||||
Schindler Holding AG, Participation Certificates, NVS |
6,829 | 1,360,335 | ||||||
Schindler Holding AG, Registered |
3,603 | 693,248 | ||||||
SGS SA |
26,027 | 2,184,331 | ||||||
Siemens Energy AG(a) |
87,594 | 1,141,586 | ||||||
SIG Group AG |
57,400 | 1,414,072 | ||||||
Sika AG, Registered |
26,323 | 6,669,215 | ||||||
Sonova Holding AG, Registered |
8,629 | 2,042,283 | ||||||
Straumann Holding AG |
19,962 | 2,540,742 | ||||||
Swatch Group AG (The), Bearer |
4,958 | 1,269,853 | ||||||
Swatch Group AG (The), Registered |
8,909 | 435,107 | ||||||
Swiss Life Holding AG, Registered |
5,197 | 3,233,460 | ||||||
Swiss Prime Site AG, Registered |
12,636 | 1,156,810 |
Security | Shares | Value | ||||||
Switzerland (continued) | ||||||||
Swiss Re AG |
49,365 | $ | 5,069,803 | |||||
Swisscom AG, Registered |
4,263 | 2,531,327 | ||||||
Temenos AG, Registered |
11,549 | 807,740 | ||||||
UBS Group AG, Registered |
521,905 | 12,855,663 | ||||||
VAT Group AG(b) |
4,477 | 1,597,587 | ||||||
Zurich Insurance Group AG |
25,164 | 11,513,924 | ||||||
|
|
|||||||
248,733,857 | ||||||||
United Kingdom — 24.1% | ||||||||
3i Group PLC |
166,291 | 4,185,650 | ||||||
abrdn PLC |
333,701 | 630,491 | ||||||
Admiral Group PLC |
46,769 | 1,351,607 | ||||||
Anglo American PLC |
229,134 | 6,291,926 | ||||||
Antofagasta PLC |
56,850 | 986,902 | ||||||
Ashtead Group PLC |
77,972 | 4,728,424 | ||||||
Associated British Foods PLC |
58,945 | 1,480,924 | ||||||
AstraZeneca PLC |
265,986 | 35,877,365 | ||||||
Auto Trader Group PLC(b) |
165,344 | 1,242,389 | ||||||
Aviva PLC |
474,382 | 2,245,325 | ||||||
BAE Systems PLC |
523,647 | 6,363,275 | ||||||
Barclays PLC |
2,512,856 | 4,843,350 | ||||||
Barratt Developments PLC |
165,651 | 888,159 | ||||||
Berkeley Group Holdings PLC |
19,814 | 989,502 | ||||||
BP PLC |
2,961,956 | 19,092,574 | ||||||
British American Tobacco PLC |
383,002 | 12,025,757 | ||||||
British Land Co. PLC(The) |
154,572 | 595,358 | ||||||
BT Group PLC |
973,359 | 1,382,229 | ||||||
Bunzl PLC |
56,863 | 2,025,105 | ||||||
Burberry Group PLC |
67,644 | 1,567,643 | ||||||
Centrica PLC |
1,021,913 | 1,922,127 | ||||||
Compass Group PLC |
305,849 | 7,444,848 | ||||||
Croda International PLC |
24,557 | 1,466,828 | ||||||
DCC PLC |
17,974 | 1,006,356 | ||||||
Diageo PLC |
383,472 | 14,137,882 | ||||||
Direct Line Insurance Group PLC(a) |
227,766 | 476,493 | ||||||
DS Smith PLC |
225,498 | 786,473 | ||||||
Entain PLC |
109,426 | 1,241,089 | ||||||
Experian PLC |
158,087 | 5,170,641 | ||||||
Glencore PLC |
1,924,442 | 10,958,752 | ||||||
GSK PLC |
701,747 | 12,697,265 | ||||||
Haleon PLC |
852,550 | 3,533,893 | ||||||
Halma PLC |
63,379 | 1,493,255 | ||||||
Hargreaves Lansdown PLC |
57,639 | 542,093 | ||||||
HSBC Holdings PLC |
3,429,775 | 26,839,303 | ||||||
IMI PLC |
46,025 | 875,829 | ||||||
Imperial Brands PLC |
158,762 | 3,220,711 | ||||||
Informa PLC |
235,970 | 2,154,752 | ||||||
InterContinental Hotels Group PLC |
31,239 | 2,310,258 | ||||||
Intermediate Capital Group PLC |
50,996 | 855,990 | ||||||
Intertek Group PLC |
27,976 | 1,399,052 | ||||||
J Sainsbury PLC |
299,722 | 923,002 | ||||||
Johnson Matthey PLC |
32,370 | 640,838 | ||||||
Kingfisher PLC |
336,900 | 914,553 | ||||||
Land Securities Group PLC |
125,075 | 896,541 | ||||||
Legal & General Group PLC |
1,006,599 | 2,716,139 | ||||||
Lloyds Banking Group PLC |
11,523,643 | 6,192,739 | ||||||
London Stock Exchange Group PLC |
70,778 | 7,093,784 | ||||||
M&G PLC |
395,901 | 948,545 | ||||||
Marks & Spencer Group PLC(a) |
322,711 | 928,186 | ||||||
Melrose Industries PLC |
229,162 | 1,306,314 | ||||||
Mondi PLC |
83,676 | 1,395,871 |
26 |
2 0 2 3 I S H A R E S S E M I - 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 (unaudited) (continued) September 30, 2023 |
iShares® Europe ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
United Kingdom (continued) | ||||||||
National Grid PLC |
633,767 | $ | 7,579,439 | |||||
NatWest Group PLC, NVS |
955,977 | 2,734,626 | ||||||
Next PLC |
21,561 | 1,912,280 | ||||||
Ocado Group PLC(a) |
124,399 | 904,491 | ||||||
Pearson PLC |
119,314 | 1,258,852 | ||||||
Persimmon PLC |
51,597 | 675,739 | ||||||
Phoenix Group Holdings PLC |
162,517 | 952,443 | ||||||
Prudential PLC |
470,408 | 5,056,570 | ||||||
Reckitt Benckiser Group PLC |
126,172 | 8,897,742 | ||||||
RELX PLC |
332,368 | 11,214,068 | ||||||
Rentokil Initial PLC |
430,568 | 3,196,801 | ||||||
Rightmove PLC |
141,221 | 963,734 | ||||||
Rio Tinto PLC |
191,473 | 12,023,058 | ||||||
Rolls-Royce Holdings PLC(a) |
1,441,824 | 3,863,197 | ||||||
Sage Group PLC(The) |
182,895 | 2,200,941 | ||||||
Schroders PLC |
151,104 | 746,646 | ||||||
Segro PLC |
210,018 | 1,836,405 | ||||||
Severn Trent PLC |
42,011 | 1,212,243 | ||||||
Shell PLC |
1,147,319 | 36,363,376 | ||||||
Smith & Nephew PLC |
148,315 | 1,840,673 | ||||||
Smiths Group PLC |
60,270 | 1,186,594 | ||||||
Spirax-Sarco Engineering PLC |
12,434 | 1,439,275 | ||||||
SSE PLC |
187,397 | 3,672,293 | ||||||
St. James’s Place PLC |
91,528 | 923,422 | ||||||
Standard Chartered PLC |
409,570 | 3,767,032 | ||||||
Taylor Wimpey PLC |
597,669 | 852,383 | ||||||
Tesco PLC |
1,231,612 | 3,961,458 | ||||||
Unilever PLC |
431,106 | 21,325,430 | ||||||
United Utilities Group PLC |
117,958 | 1,363,005 | ||||||
Vodafone Group PLC |
3,899,813 | 3,655,681 | ||||||
Weir Group PLC(The) |
43,084 | 995,455 | ||||||
Whitbread PLC |
34,293 | 1,443,491 | ||||||
WPP PLC |
183,713 | 1,636,756 | ||||||
|
|
|||||||
384,939,956 | ||||||||
|
|
|||||||
Total
Common Stocks — 99.3% |
|
1,586,963,846 | ||||||
|
|
|||||||
Preferred Stocks |
||||||||
Germany — 0.6% | ||||||||
Bayerische Motoren Werke AG, Preference Shares, NVS |
10,324 | 960,964 |
Security | Shares | Value | ||||||
Germany (continued) | ||||||||
Henkel AG & Co. KGaA, Preference Shares, NVS |
29,508 | $ | 2,101,249 | |||||
Porsche Automobil Holding SE, Preference Shares, NVS |
26,266 | 1,292,009 | ||||||
Sartorius AG, Preference Shares, NVS(c) |
4,601 | 1,558,330 | ||||||
Volkswagen AG, Preference Shares, NVS |
31,356 | 3,602,785 | ||||||
|
|
|||||||
9,515,337 | ||||||||
Italy — 0.0% | ||||||||
Telecom Italia SpA, Preference Shares, NVS(a) |
1,187,149 | 371,819 | ||||||
|
|
|||||||
Total
Preferred Stocks — 0.6% |
|
9,887,156 | ||||||
|
|
|||||||
Total
Long-Term Investments — 99.9% |
|
1,596,851,002 | ||||||
|
|
|||||||
Short-Term Securities |
||||||||
Money Market Funds — 0.6% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 5.54%(d)(e)(f) |
6,556,651 | 6,558,618 | ||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 5.31%(d)(e) |
2,700,000 | 2,700,000 | ||||||
|
|
|||||||
Total
Short-Term Securities — 0.6% |
|
9,258,618 | ||||||
|
|
|||||||
Total
Investments — 100.5% |
|
1,606,109,620 | ||||||
Liabilities in Excess of Other Assets — (0.5)% |
|
(7,284,981 | ) | |||||
|
|
|||||||
Net Assets — 100.0% |
$ | 1,598,824,639 | ||||||
|
|
(a) |
Non-income producing security. |
(b) |
Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
(c) |
All or a portion of this security is on loan. |
(d) |
Affiliate of the Fund. |
(e) |
Annualized 7-day yield as of period end. |
(f) |
All or a portion of this security was purchased with the cash collateral from loaned securities. |
S C H E D U L E O F I N V E S T M E N T S |
27 |
Schedule of Investments (unaudited) (continued) September 30, 2023 |
iShares® Europe ETF |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the six months ended September 30, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Issuer | Value at 03/31/23 |
Purchases at Cost |
Proceeds from Sale |
Net Realized Gain (Loss) |
Change
in Unrealized Appreciation (Depreciation) |
Value at 09/30/23 |
Shares Held at 09/30/23 |
Income |
Capital Gain Distributions from Underlying Funds |
|||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares |
$ | 3,784,666 | $ | 2,774,151 | (a) | $ | — | $ | 1,531 | $ | (1,730 | ) | $ | 6,558,618 | 6,556,651 | $ | 23,535 | (b) | $ | — | ||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares |
2,050,000 | 650,000 | (a) | — | — | — | 2,700,000 | 2,700,000 | 86,476 | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
$ | 1,531 | $ | (1,730 | ) | $ | 9,258,618 | $ | 110,011 | $ | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) |
Represents net amount purchased (sold). |
(b) |
All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
Description | Number of Contracts |
Expiration Date |
Notional Amount (000) |
Value/ Unrealized Appreciation (Depreciation) |
||||||||||||
Long Contracts |
||||||||||||||||
Euro Stoxx 50 Index |
20 | 12/15/23 | $ | 886 | $ | (12,823 | ) | |||||||||
FTSE 100 Index |
6 | 12/15/23 | 559 | (1,167 | ) | |||||||||||
|
|
|||||||||||||||
$ | (13,990 | ) | ||||||||||||||
|
|
Derivative Financial Instruments Categorized by Risk Exposure
As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Commodity Contracts |
Credit Contracts |
Equity Contracts |
Foreign Currency Exchange Contracts |
Interest Rate Contracts |
Other Contracts |
Total | ||||||||||||||||||||||
Liabilities — Derivative Financial Instruments |
||||||||||||||||||||||||||||
Futures contracts |
||||||||||||||||||||||||||||
Unrealized depreciation on futures contracts(a) |
$ | — | $ | — | $ | 13,990 | $ | — | $ | — | $ | — | $ | 13,990 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 September 30, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:
Commodity Contracts |
Credit Contracts |
Equity Contracts |
Foreign Currency Exchange Contracts |
Interest Rate Contracts |
Other Contracts |
Total | ||||||||||||||||||||||
Net Realized Gain (Loss) from |
||||||||||||||||||||||||||||
Futures contracts |
$ | — | $ | — | $ | 143,997 | $ | — | $ | — | $ | — | $ | 143,997 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on |
||||||||||||||||||||||||||||
Futures contracts |
$ | — | $ | — | $ | (210,879 | ) | $ | — | $ | — | $ | — | $ | (210,879 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
28 |
2 0 2 3 I S H A R E S S E M I - 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 (unaudited) (continued) September 30, 2023 |
iShares® Europe ETF |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts |
||||
Average notional value of contracts — long |
$ | 2,048,886 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.
|
||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
|
||||||||||||||||
Assets |
||||||||||||||||
Investments |
||||||||||||||||
Long-Term Investments |
||||||||||||||||
Common Stocks |
$ | 2,902,239 | $ | 1,584,061,607 | $ | — | $ | 1,586,963,846 | ||||||||
Preferred Stocks |
— | 9,887,156 | — | 9,887,156 | ||||||||||||
Short-Term Securities |
||||||||||||||||
Money Market Funds |
9,258,618 | — | — | 4,517,853 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 12,160,857 | $ | 1,593,948,763 | $ | — | $ | 1,606,109,620 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Derivative financial instruments(a) |
||||||||||||||||
Liabilities |
||||||||||||||||
Equity Contracts |
$ | — | $ | (13,990 | ) | $ | — | $ | (13,990 | ) | ||||||
|
|
|
|
|
|
|
|
(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 |
29 |
Schedule of Investments (unaudited) September 30, 2023 |
iShares® Future Metaverse Tech and Communications ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
||||||||
Communications Equipment — 0.2% | ||||||||
Arista Networks Inc.(a) |
45 | $ | 8,277 | |||||
|
|
|||||||
Electronic Equipment, Instruments & Components — 0.1% | ||||||||
TDK Corp. |
100 | 3,697 | ||||||
|
|
|||||||
Entertainment — 30.1% | ||||||||
Activision Blizzard Inc. |
2,795 | 261,696 | ||||||
Electronic Arts Inc. |
2,121 | 255,368 | ||||||
Kakao Games Corp.(a) |
2,281 | 42,996 | ||||||
NetEase Inc. |
12,800 | 256,656 | ||||||
Nintendo Co. Ltd. |
6,000 | 249,318 | ||||||
ROBLOX Corp., Class A(a)(b) |
8,794 | 254,674 | ||||||
Take-Two Interactive Software Inc.(a) |
1,816 | 254,948 | ||||||
Ubisoft Entertainment SA(a) |
3,132 | 101,498 | ||||||
|
|
|||||||
1,677,154 | ||||||||
Household Durables — 5.4% | ||||||||
Garmin Ltd. |
535 | 56,282 | ||||||
Sony Group Corp. |
3,000 | 245,327 | ||||||
|
|
|||||||
301,609 | ||||||||
Interactive Media & Services — 12.7% | ||||||||
Alphabet Inc., Class A(a) |
1,176 | 153,891 | ||||||
Bumble Inc., Class A(a) |
23 | 343 | ||||||
JOYY Inc., ADR |
8 | 305 | ||||||
Match Group Inc.(a) |
52 | 2,037 | ||||||
Meta Platforms Inc., Class A(a) |
923 | 277,094 | ||||||
Snap Inc., Class A, NVS(a) |
3,650 | 32,521 | ||||||
Tencent Holdings Ltd. |
6,300 | 244,213 | ||||||
|
|
|||||||
710,404 | ||||||||
IT Services — 0.2% | ||||||||
Shopify Inc., Class A(a) |
225 | 12,282 | ||||||
|
|
|||||||
Semiconductors & Semiconductor Equipment — 14.4% | ||||||||
Advanced Micro Devices Inc.(a) |
377 | 38,763 | ||||||
Intel Corp. |
760 | 27,018 | ||||||
Micron Technology Inc. |
2,301 | 156,537 | ||||||
Nvidia Corp. |
613 | 266,649 | ||||||
Qualcomm Inc. |
1,522 | 169,033 | ||||||
SK Hynix Inc. |
1,741 | 147,401 | ||||||
|
|
|||||||
805,401 |
Security | Shares | Value | ||||||
Software — 29.8% | ||||||||
Adobe Inc.(a) |
74 | $ | 37,733 | |||||
Ansys Inc.(a) |
798 | 237,445 | ||||||
Aspen Technology Inc.(a) |
4 | 817 | ||||||
Autodesk Inc.(a) |
1,156 | 239,188 | ||||||
Dassault Systemes SE |
6,548 | 243,209 | ||||||
Microsoft Corp. |
524 | 165,453 | ||||||
PTC Inc.(a) |
1,752 | 248,223 | ||||||
Salesforce Inc.(a) |
218 | 44,206 | ||||||
Unity Software Inc.(a) |
6,504 | 204,160 | ||||||
Zoom Video Communications Inc., Class A(a) |
3,457 | 241,783 | ||||||
|
|
|||||||
1,662,217 | ||||||||
Technology Hardware, Storage & Peripherals — 6.9% | ||||||||
Apple Inc. |
1,909 | 326,840 | ||||||
Samsung Electronics Co. Ltd. |
1,135 | 57,379 | ||||||
|
|
|||||||
384,219 | ||||||||
|
|
|||||||
Total
Long-Term Investments — 99.8% |
5,565,260 | |||||||
|
|
|||||||
Short-Term Securities |
||||||||
Money Market Funds — 4.4% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 5.54%(c)(d) |
247,150 | 247,225 | ||||||
|
|
|||||||
Total
Short-Term Securities — 4.4% |
247,225 | |||||||
|
|
|||||||
Total
Investments — 104.2% |
5,812,485 | |||||||
Liabilities in Excess of Other Assets — (4.2)% |
|
(235,274 | ) | |||||
|
|
|||||||
Net Assets — 100.0% |
|
$ | 5,577,211 | |||||
|
|
(a) |
Non-income producing security. |
(b) |
All or a portion of this security is on loan. |
(c) |
Affiliate of the Fund. |
(d) |
Annualized 7-day yield as of period end. |
30 |
2 0 2 3 I S H A R E S S E M I - 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 (unaudited) (continued) September 30, 2023 |
iShares® Future Metaverse Tech and Communications ETF |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the six months ended September 30, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Issuer | Value at 03/31/23 |
Purchases at Cost |
Proceeds from Sale |
Net Realized Gain (Loss) |
Change in (Depreciation) |
Value at 09/30/23 |
Shares Held at 09/30/23 |
Income |
Capital Gain Distributions from Underlying Funds |
|||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares |
$ | — | $ | 247,280 | (a) | $ | — | (31 | $ | (24 | ) | $ | 247,225 | 247,150 | $ | 115 | (b) | $ | — | |||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares(c) |
— | 0 | (a) | — | — | — | — | 8 | — | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
$ | (31 | ) | $ | (24 | ) | $ | 247,225 | $ | 123 | $ | — | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) |
Represents net amount purchased (sold). |
(b) |
All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
(c) |
As of period end, the entity is no longer held. |
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
Assets |
||||||||||||||||
Investments |
||||||||||||||||
Long-Term Investments |
||||||||||||||||
Common Stocks |
$ | 3,973,566 | $ | 1,591,694 | $ | — | $ | 5,565,260 | ||||||||
Short-Term Securities |
||||||||||||||||
Money Market Funds |
247,225 | — | — | 247,225 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 4,220,791 | $ | 1,591,694 | $ | — | $ | 5,812,485 | |||||||||
|
|
|
|
|
|
|
|
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 |
31 |
Schedule of Investments (unaudited) September 30, 2023 |
iShares® India 50 ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
||||||||
Automobiles — 6.2% | ||||||||
Bajaj Auto Ltd. |
72,602 | $ | 4,415,929 | |||||
Eicher Motors Ltd. |
87,772 | 3,636,298 | ||||||
Hero MotoCorp Ltd. |
83,325 | 3,061,558 | ||||||
Mahindra & Mahindra Ltd. |
572,953 | 10,699,229 | ||||||
Maruti Suzuki India Ltd. |
85,052 | 10,844,072 | ||||||
Tata Motors Ltd. |
1,129,247 | 8,541,514 | ||||||
|
|
|||||||
41,198,600 | ||||||||
Banks — 31.0% | ||||||||
Axis Bank Ltd. |
1,775,737 | 22,103,914 | ||||||
HDFC Bank Ltd. |
4,804,969 | 88,122,643 | ||||||
ICICI Bank Ltd. |
4,483,948 | 51,371,692 | ||||||
IndusInd Bank Ltd. |
418,152 | 7,168,228 | ||||||
Kotak Mahindra Bank Ltd. |
941,687 | 19,624,757 | ||||||
State Bank of India |
2,457,175 | 17,650,145 | ||||||
|
|
|||||||
206,041,379 | ||||||||
Chemicals — 2.0% | ||||||||
Asian Paints Ltd. |
288,520 | 10,966,181 | ||||||
UPL Ltd. |
322,603 | 2,388,785 | ||||||
|
|
|||||||
13,354,966 | ||||||||
Construction & Engineering — 4.2% | ||||||||
Larsen & Toubro Ltd. |
774,023 | 28,122,487 | ||||||
|
|
|||||||
Construction Materials — 1.9% | ||||||||
Grasim Industries Ltd. |
235,397 | 5,492,157 | ||||||
UltraTech Cement Ltd. |
74,072 | 7,345,487 | ||||||
|
|
|||||||
12,837,644 | ||||||||
Consumer Finance — 2.4% | ||||||||
Bajaj Finance Ltd. |
170,705 | 16,011,875 | ||||||
|
|
|||||||
Electric Utilities — 1.0% | ||||||||
Power Grid Corp. of India Ltd. |
2,916,512 | 7,000,497 | ||||||
|
|
|||||||
Financial Services — 1.0% | ||||||||
Bajaj Finserv Ltd. |
347,395 | 6,422,577 | ||||||
|
|
|||||||
Food Products — 2.2% | ||||||||
Britannia Industries Ltd. |
75,710 | 4,134,526 | ||||||
Nestle India Ltd. |
22,785 | 6,166,632 | ||||||
Tata Consumer Products Ltd. |
386,645 | 4,075,211 | ||||||
|
|
|||||||
14,376,369 | ||||||||
Health Care Providers & Services — 0.6% | ||||||||
Apollo Hospitals Enterprise Ltd. |
64,188 | 3,963,514 | ||||||
|
|
|||||||
Independent Power and Renewable Electricity Producers — 1.3% | ||||||||
NTPC Ltd. |
3,038,691 | 8,969,100 | ||||||
|
|
|||||||
Insurance — 1.5% | ||||||||
HDFC Life Insurance Co. Ltd.(a) |
689,473 | 5,280,854 | ||||||
SBI Life Insurance Co. Ltd.(a) |
288,923 | 4,532,080 | ||||||
|
|
|||||||
9,812,934 | ||||||||
IT Services — 13.7% | ||||||||
HCL Technologies Ltd. |
677,141 | 10,036,192 | ||||||
Infosys Ltd. |
2,285,401 | 39,275,333 | ||||||
Larsen & Toubro Infotech Ltd.(a) |
58,839 | 3,676,334 | ||||||
Tata Consultancy Services Ltd. |
656,002 | 27,776,555 | ||||||
Tech Mahindra Ltd. |
400,044 | 5,873,108 | ||||||
Wipro Ltd. |
902,731 | 4,396,259 | ||||||
|
|
|||||||
91,033,781 |
Security | Shares | Value | ||||||
Life Sciences Tools & Services — 0.6% | ||||||||
Divi’s Laboratories Ltd. |
81,740 | $ | 3,697,623 | |||||
|
|
|||||||
Metals & Mining — 2.9% | ||||||||
Hindalco Industries Ltd. |
936,990 | 5,530,665 | ||||||
JSW Steel Ltd. |
595,006 | 5,565,998 | ||||||
Tata Steel Ltd. |
5,157,145 | 7,976,575 | ||||||
|
|
|||||||
19,073,238 | ||||||||
Oil, Gas & Consumable Fuels — 11.2% | ||||||||
Bharat Petroleum Corp. Ltd. |
608,342 | 2,537,684 | ||||||
Coal India Ltd. |
1,462,701 | 5,187,654 | ||||||
Oil & Natural Gas Corp. Ltd. |
2,501,686 | 5,759,324 | ||||||
Reliance Industries Ltd. |
2,165,989 | 60,982,675 | ||||||
|
|
|||||||
74,467,337 | ||||||||
Personal Care Products — 2.5% | ||||||||
Hindustan Unilever Ltd. |
571,682 | 16,954,392 | ||||||
|
|
|||||||
Pharmaceuticals — 3.0% | ||||||||
Cipla Ltd. |
336,579 | 4,800,284 | ||||||
Dr. Reddy’s Laboratories Ltd. |
77,989 | 5,233,847 | ||||||
Sun Pharmaceutical Industries Ltd. |
690,638 | 9,614,008 | ||||||
|
|
|||||||
19,648,139 | ||||||||
Textiles, Apparel & Luxury Goods — 1.5% | ||||||||
Titan Co. Ltd. |
266,983 | 10,099,178 | ||||||
|
|
|||||||
Tobacco — 4.6% | ||||||||
ITC Ltd. |
5,669,373 | 30,291,612 | ||||||
|
|
|||||||
Trading Companies & Distributors — 0.9% | ||||||||
Adani Enterprises Ltd. |
211,680 | 6,131,120 | ||||||
|
|
|||||||
Transportation Infrastructure — 0.8% | ||||||||
Adani Ports & Special Economic Zone Ltd. |
511,755 | 5,072,350 | ||||||
|
|
|||||||
Wireless Telecommunication Services — 2.7% | ||||||||
Bharti Airtel Ltd. |
1,615,077 | 17,986,019 | ||||||
|
|
|||||||
Total
Long-Term Investments — 99.7% |
662,566,731 | |||||||
|
|
|||||||
Short-Term Securities |
||||||||
Money Market Funds — 1.7% | ||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 5.31%(b)(c) |
11,660,000 | 11,660,000 | ||||||
|
|
|||||||
Total
Short-Term Securities — 1.7% |
11,660,000 | |||||||
|
|
|||||||
Total
Investments — 101.4% |
674,226,731 | |||||||
Liabilities in Excess of Other Assets — (1.4)% |
|
(9,520,579 | ) | |||||
|
|
|||||||
Net Assets — 100.0% |
$ | 664,706,152 | ||||||
|
|
(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. |
32 |
2 0 2 3 I S H A R E S S E M I - 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 (unaudited) (continued) September 30, 2023 |
iShares® India 50 ETF |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the six months ended September 30, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Issuer | Value at 03/31/23 |
Purchases at Cost |
Proceeds from Sale |
Net Realized Gain (Loss) |
Change
in Unrealized Appreciation (Depreciation) |
Value at 09/30/23 |
Shares Held at 09/30/23 |
Income |
Capital Gain Distributions from Underlying Funds |
|||||||||||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares |
$ | — | $ | 11,660,000 | (a) | $ | — | $ | — | $ | — | $ | 11,660,000 | 11,660,000 | $ | 257,409 | $ | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(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 |
||||||||||||||||
IFSC Nifty 50 Index |
69 | 10/26/23 | $ | 2,720 | $ | (16,630 | ) | |||||||||
|
|
Derivative Financial Instruments Categorized by Risk Exposure
As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Commodity Contracts |
Credit Contracts |
Equity Contracts |
Foreign Currency Exchange Contracts |
Interest Rate Contracts |
Other Contracts |
Total | ||||||||||||||||||||||
Liabilities — Derivative Financial Instruments |
||||||||||||||||||||||||||||
Futures contracts |
||||||||||||||||||||||||||||
Unrealized depreciation on futures contracts(a) |
$ | — | $ | — | $ | 16,630 | $ | — | $ | — | $ | — | $ | 16,630 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 September 30, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:
Commodity Contracts |
Credit Contracts |
Equity Contracts |
Foreign Currency Exchange Contracts |
Interest Rate Contracts |
Other Contracts |
Total | ||||||||||||||||||||||
Net Realized Gain (Loss) from |
||||||||||||||||||||||||||||
Futures contracts |
$ | — | $ | — | $ | 86,803 | $ | — | $ | — | $ | — | $ | 86,803 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on |
||||||||||||||||||||||||||||
Futures contracts |
$ | — | $ | — | $ | (39,459 | ) | $ | — | $ | — | $ | — | $ | (39,459 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
|
||||
Futures contracts: |
||||
Average notional value of contracts — long |
$ | 1,379,370 | ||
|
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the 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 |
33 |
Schedule of Investments (unaudited) (continued) September 30, 2023 |
iShares® India 50 ETF |
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.
|
||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
|
||||||||||||||||
Assets |
||||||||||||||||
Investments |
||||||||||||||||
Long-Term Investments |
||||||||||||||||
Common Stocks |
$ | — | $ | 662,566,731 | $ | — | $ | 662,566,731 | ||||||||
Short-Term Securities |
||||||||||||||||
Money Market Funds |
11,660,000 | — | — | 11,660,000 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 11,660,000 | $ | 662,566,731 | $ | — | $ | 674,226,731 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Derivative Financial Instruments(a) |
||||||||||||||||
Liabilities |
||||||||||||||||
Equity Contracts |
$ | (16,630 | ) | $ | — | $ | — | $ | (16,630 | ) | ||||||
|
|
|
|
|
|
|
|
(a) |
Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument. |
See notes to financial statements.
34 |
2 0 2 3 I S H A R E S S E M I - 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 (unaudited) September 30, 2023 |
iShares® International Developed Property ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
||||||||
Australia — 12.8% | ||||||||
Abacus Group |
24,229 | $ | 16,279 | |||||
Abacus Storage King(a) |
32,215 | 21,541 | ||||||
Arena REIT |
20,679 | 44,392 | ||||||
BWP Trust |
28,640 | 61,407 | ||||||
Centuria Capital Group |
47,822 | 41,515 | ||||||
Centuria Industrial REIT |
31,837 | 61,235 | ||||||
Centuria Office REIT |
25,649 | 18,738 | ||||||
Charter Hall Group |
28,045 | 169,447 | ||||||
Charter Hall Long Wale REIT |
39,070 | 80,390 | ||||||
Charter Hall Retail REIT |
30,521 | 61,211 | ||||||
Charter Hall Social Infrastructure REIT |
20,019 | 32,202 | ||||||
Cromwell Property Group |
84,338 | 19,956 | ||||||
Dexus |
63,772 | 297,273 | ||||||
Dexus Industria REIT |
12,901 | 21,221 | ||||||
GDI Property Group Partnership(b) |
29,037 | 9,961 | ||||||
Goodman Group |
101,643 | 1,393,101 | ||||||
GPT Group(The) |
113,578 | 282,835 | ||||||
Growthpoint Properties Australia Ltd. |
15,832 | 22,339 | ||||||
HealthCo REIT(b) |
28,268 | 26,354 | ||||||
Home Consortium Ltd. |
14,335 | 43,150 | ||||||
HomeCo Daily Needs REIT |
106,668 | 78,786 | ||||||
Hotel Property Investments Ltd. |
11,397 | 19,951 | ||||||
Ingenia Communities Group |
22,045 | 58,986 | ||||||
Lendlease Corp. Ltd. |
40,871 | 187,435 | ||||||
Lifestyle Communities Ltd.(b) |
5,753 | 59,394 | ||||||
Mirvac Group |
233,957 | 317,991 | ||||||
National Storage REIT |
74,980 | 104,337 | ||||||
Region RE Ltd. |
67,921 | 87,688 | ||||||
Rural Funds Group |
22,748 | 25,769 | ||||||
Scentre Group |
307,747 | 483,583 | ||||||
Stockland |
141,540 | 354,242 | ||||||
Vicinity Ltd. |
229,426 | 248,641 | ||||||
Waypoint REIT Ltd. |
39,654 | 57,044 | ||||||
|
|
|||||||
808,394 | ||||||||
Austria — 0.3% | ||||||||
CA Immobilien Anlagen AG |
2,547 | 84,340 | ||||||
Immofinanz AG(a) |
1,887 | 36,640 | ||||||
|
|
|||||||
120,980 | ||||||||
Belgium — 2.3% | ||||||||
Aedifica SA |
2,816 | 160,048 | ||||||
Care Property Invest NV |
2,175 | 27,309 | ||||||
Cofinimmo SA |
2,010 | 137,801 | ||||||
Intervest Offices & Warehouses NV |
1,696 | 24,565 | ||||||
Montea NV |
909 | 64,545 | ||||||
Retail Estates NV |
731 | 43,746 | ||||||
Shurgard Self Storage Ltd. |
1,470 | 58,200 | ||||||
VGP NV |
832 | 77,179 | ||||||
Warehouses De Pauw CVA |
9,579 | 236,733 | ||||||
Xior Student Housing NV |
1,682 | 48,101 | ||||||
|
|
|||||||
878,227 | ||||||||
Canada — 3.5% | ||||||||
Allied Properties REIT |
3,779 | 49,886 | ||||||
Artis REIT |
3,110 | 14,792 | ||||||
Boardwalk REIT |
1,314 | 64,633 | ||||||
BSR Real Estate Investment Trust |
1,080 | 12,937 | ||||||
BTB Real Estate Investment Trust |
2,160 | 4,755 | ||||||
Canadian Apartment Properties REIT |
4,863 | 161,402 | ||||||
Choice Properties REIT |
9,508 | 88,762 |
Security | Shares | Value | ||||||
Canada (continued) | ||||||||
Crombie REIT |
3,046 | $ | 28,010 | |||||
CT REIT |
3,142 | 31,669 | ||||||
Dream Industrial REIT |
7,571 | 71,571 | ||||||
Dream Office REIT |
968 | 6,877 | ||||||
DREAM Unlimited Corp., Class A |
1,330 | 17,998 | ||||||
First Capital Real Estate Investment Trust |
6,198 | 60,691 | ||||||
Granite REIT |
1,862 | 98,813 | ||||||
H&R Real Estate Investment Trust |
7,712 | 52,407 | ||||||
InterRent REIT |
4,124 | 37,923 | ||||||
Killam Apartment REIT |
3,378 | 43,324 | ||||||
Minto Apartment Real Estate Investment Trust(c) |
1,086 | 10,898 | ||||||
Morguard North American Residential REIT |
1,169 | 12,781 | ||||||
Nexus Industrial REIT |
1,950 | 10,322 | ||||||
NorthWest Healthcare Properties REIT |
6,862 | 25,665 | ||||||
Prinmaris REIT |
2,850 | 28,306 | ||||||
PRO Real Estate Investment Trust |
1,709 | 5,385 | ||||||
RioCan REIT |
8,678 | 115,451 | ||||||
Slate Grocery REIT |
1,687 | 13,799 | ||||||
SmartCentres Real Estate Investment Trust |
4,189 | 70,195 | ||||||
StorageVault Canada Inc., NVS |
14,234 | 47,368 | ||||||
Tricon Residential Inc. |
15,496 | 114,544 | ||||||
True North Commercial Real Estate Investment Trust |
2,775 | 4,372 | ||||||
|
|
|||||||
1,305,536 | ||||||||
China — 0.5% | ||||||||
Gemdale Properties & Investment Corp. Ltd. |
334,000 | 13,828 | ||||||
Wharf Holdings Ltd.(The) |
57,000 | 142,664 | ||||||
Yuexiu REIT |
129,000 | 21,699 | ||||||
|
|
|||||||
178,191 | ||||||||
Finland — 0.3% | ||||||||
Citycon OYJ |
4,830 | 27,055 | ||||||
Kojamo OYJ |
10,505 | 93,076 | ||||||
|
|
|||||||
120,131 | ||||||||
France — 3.3% | ||||||||
Altarea SCA |
278 | 25,487 | ||||||
Carmila SA |
3,294 | 49,267 | ||||||
Covivio |
2,865 | 127,082 | ||||||
Gecina SA |
3,044 | 310,360 | ||||||
ICADE |
1,840 | 60,601 | ||||||
Klepierre SA |
11,562 | 283,102 | ||||||
Mercialys SA |
5,614 | 50,517 | ||||||
Nexity SA |
2,882 | 42,488 | ||||||
Unibail-Rodamco-Westfield, New(a) |
6,018 | 295,938 | ||||||
|
|
|||||||
1,244,842 | ||||||||
Germany — 4.9% | ||||||||
ADLER Group SA(a)(c) |
6,991 | 3,592 | ||||||
Aroundtown SA(a)(b) |
51,466 | 106,767 | ||||||
Deutsche EuroShop AG |
727 | 14,028 | ||||||
Deutsche Wohnen SE |
3,125 | 70,798 | ||||||
DIC Asset AG(b) |
2,216 | 9,145 | ||||||
Grand City Properties SA(a) |
4,283 | 40,384 | ||||||
Hamborner REIT AG |
4,215 | 28,688 | ||||||
Instone Real Estate Group SE(c) |
2,740 | 16,976 | ||||||
LEG Immobilien SE(a) |
4,394 | 302,163 | ||||||
TAG Immobilien AG(a) |
10,372 | 108,368 | ||||||
Vib Vermoegen AG(a) |
656 | 9,085 | ||||||
Vonovia SE |
48,302 | 1,157,234 | ||||||
|
|
|||||||
1,867,228 | ||||||||
Hong Kong — 10.8% | ||||||||
Champion REIT |
110,000 | 36,170 |
S C H E D U L E O F I N V E S T M E N T S |
35 |
Schedule of Investments (unaudited) (continued) September 30, 2023 |
iShares® International Developed Property ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Hong Kong (continued) | ||||||||
CK Asset Holdings Ltd. |
113,000 | $ | 593,543 | |||||
Fortune REIT |
88,000 | 52,750 | ||||||
Hang Lung Group Ltd. |
49,000 | 68,960 | ||||||
Hang Lung Properties Ltd. |
103,000 | 140,920 | ||||||
Henderson Land Development Co. Ltd. |
77,044 | 202,314 | ||||||
Hongkong Land Holdings Ltd.(b) |
61,700 | 220,041 | ||||||
Hysan Development Co. Ltd. |
35,000 | 67,757 | ||||||
Kerry Properties Ltd. |
34,500 | 58,509 | ||||||
Link REIT |
151,879 | 742,617 | ||||||
New World Development Co. Ltd. |
82,000 | 158,989 | ||||||
Prosperity REIT |
75,000 | 13,881 | ||||||
Shun Tak Holdings Ltd.(a) |
128,000 | 18,535 | ||||||
Sino Land Co. Ltd. |
198,000 | 222,678 | ||||||
Sun Hung Kai Properties Ltd. |
89,500 | 954,961 | ||||||
Sunlight REIT |
60,000 | 18,728 | ||||||
Swire Properties Ltd. |
62,000 | 128,943 | ||||||
Wharf Real Estate Investment Co. Ltd. |
92,000 | 354,562 | ||||||
|
|
|||||||
4,054,858 | ||||||||
Ireland — 0.1% | ||||||||
Irish Residential Properties REIT PLC |
25,548 | 25,068 | ||||||
|
|
|||||||
Israel — 2.3% | ||||||||
Africa Israel Residences Ltd. |
367 | 19,061 | ||||||
Airport City Ltd.(a) |
3,814 | 58,547 | ||||||
Alony Hetz Properties & Investments Ltd. |
9,081 | 62,296 | ||||||
Amot Investments Ltd. |
12,784 | 62,049 | ||||||
Ashtrom Group Ltd. |
1 | 10 | ||||||
Aura Investments Ltd. |
7,420 | 17,344 | ||||||
Azrieli Group Ltd. |
2,178 | 111,803 | ||||||
Big Shopping Centers Ltd.(a) |
720 | 59,626 | ||||||
Blue Square Real Estate Ltd. |
330 | 18,860 | ||||||
Electra Real Estate Ltd. |
1,340 | 12,918 | ||||||
G City Ltd. |
5,196 | 15,981 | ||||||
Gav-Yam Lands Corp. Ltd. |
1,027 | 6,532 | ||||||
IES Holdings Ltd.(a) |
165 | 9,755 | ||||||
Israel Canada T.R Ltd. |
7,867 | 19,709 | ||||||
Israel Land Development Co. Ltd.(The) |
1,077 | 9,573 | ||||||
Isras Investment Co. Ltd. |
93 | 17,357 | ||||||
Mega Or Holdings Ltd. |
1,308 | 23,380 | ||||||
Mehadrin Ltd.(a) |
1 | 33 | ||||||
Melisron Ltd. |
1,505 | 94,123 | ||||||
Menivim- The New REIT Ltd. |
40,734 | 16,660 | ||||||
Mivne Real Estate KD Ltd. |
35,658 | 85,841 | ||||||
Norstar Holdings Inc.(a)(b) |
1,859 | 4,318 | ||||||
Prashkovsky Investments and Construction Ltd. |
447 | 9,925 | ||||||
Property & Building Corp. Ltd.(a) |
165 | 7,291 | ||||||
Reit 1 Ltd. |
11,393 | 46,550 | ||||||
Sella Capital Real Estate Ltd. |
12,675 | 26,320 | ||||||
Summit Real Estate Holdings Ltd. |
2,156 | 27,618 | ||||||
YH Dimri Construction & Development Ltd. |
406 | 26,433 | ||||||
|
|
|||||||
869,913 | ||||||||
Italy — 0.0% | ||||||||
Immobiliare Grande Distribuzione SIIQ SpA |
3,360 | 7,573 | ||||||
|
|
|||||||
Japan — 31.3% | ||||||||
Activia Properties Inc. |
42 | 115,873 | ||||||
Advance Logistics Investment Corp. |
40 | 33,682 | ||||||
Advance Residence Investment Corp. |
83 | 188,154 | ||||||
Aeon Mall Co. Ltd. |
5,680 | 66,850 | ||||||
AEON REIT Investment Corp. |
105 | 102,886 |
Security | Shares | Value | ||||||
Japan (continued) | ||||||||
Arealink Co. Ltd. |
500 | $ | 9,845 | |||||
Comforia Residential REIT Inc. |
40 | 88,654 | ||||||
CRE Inc./Japan |
800 | 8,476 | ||||||
CRE Logistics REIT Inc. |
37 | 40,619 | ||||||
Daito Trust Construction Co. Ltd. |
3,900 | 410,801 | ||||||
Daiwa House Industry Co. Ltd. |
39,500 | 1,060,156 | ||||||
Daiwa House REIT Investment Corp. |
127 | 224,072 | ||||||
Daiwa Office Investment Corp. |
17 | 75,940 | ||||||
Daiwa Securities Living Investments Corp. |
134 | 99,361 | ||||||
Dear Life Co. Ltd. |
1,500 | 8,024 | ||||||
ESCON Japan Reit Investment Corp. |
20 | 15,837 | ||||||
Frontier Real Estate Investment Corp. |
30 | 91,790 | ||||||
Fukuoka REIT Corp. |
43 | 45,721 | ||||||
Global One Real Estate Investment Corp. |
61 | 46,832 | ||||||
GLP J-Reit. |
292 | 260,992 | ||||||
Goldcrest Co. Ltd. |
900 | 13,333 | ||||||
Hankyu Hanshin REIT Inc. |
42 | 39,641 | ||||||
Health Care & Medical Investment Corp. |
22 | 21,433 | ||||||
Heiwa Real Estate Co. Ltd. |
1,900 | 50,542 | ||||||
Heiwa Real Estate REIT Inc. |
60 | 58,779 | ||||||
Hoshino Resorts REIT Inc. |
15 | 65,691 | ||||||
Hulic Co. Ltd. |
35,500 | 318,322 | ||||||
Hulic Reit Inc. |
76 | 81,036 | ||||||
Ichigo Hotel REIT Investment Corp. |
16 | 12,435 | ||||||
Ichigo Inc. |
13,500 | 29,414 | ||||||
Ichigo Office REIT Investment Corp. |
62 | 36,287 | ||||||
Industrial & Infrastructure Fund Investment Corp. |
125 | 115,497 | ||||||
Invincible Investment Corp. |
401 | 165,624 | ||||||
Japan Excellent Inc. |
75 | 66,342 | ||||||
Japan Hotel REIT Investment Corp. |
267 | 139,411 | ||||||
Japan Logistics Fund Inc. |
55 | 106,632 | ||||||
Japan Metropolitan Fund Invest. |
414 | 268,501 | ||||||
Japan Prime Realty Investment Corp. |
59 | 142,380 | ||||||
Japan Property Management Center Co. Ltd. |
600 | 4,578 | ||||||
Japan Real Estate Investment Corp. |
84 | 327,326 | ||||||
JINUSHI Co. Ltd. |
700 | 8,980 | ||||||
JSB Co. Ltd. |
300 | 10,752 | ||||||
Katitas Co. Ltd. |
3,000 | 43,671 | ||||||
Keihanshin Building Co. Ltd. |
2,600 | 23,853 | ||||||
Kenedix Office Investment Corp |
50 | 115,633 | ||||||
Kenedix Residential Next Investment Corp. |
63 | 96,143 | ||||||
Kenedix Retail REIT Corp. |
36 | 69,609 | ||||||
LA Holdings Co. Ltd/Japan |
300 | 9,362 | ||||||
LaSalle Logiport REIT |
110 | 105,465 | ||||||
Leopalace21 Corp.(a) |
11,600 | 25,422 | ||||||
Marimo Regional Revitalization REIT Inc. |
12 | 10,107 | ||||||
Mirai Corp. |
105 | 33,274 | ||||||
Mitsubishi Estate Co. Ltd. |
78,500 | 1,024,112 | ||||||
Mitsubishi Estate Logistics REIT Investment Corp. |
30 | 75,302 | ||||||
Mitsui Fudosan Co. Ltd. |
55,556 | 1,223,565 | ||||||
Mitsui Fudosan Logistics Park Inc. |
34 | 107,085 | ||||||
Mori Hills REIT Investment Corp. |
96 | 90,954 | ||||||
Mori Trust Reit Inc. |
155 | 75,476 | ||||||
Nippon Accommodations Fund Inc. |
30 | 126,627 | ||||||
Nippon Building Fund Inc. |
101 | 409,003 | ||||||
Nippon Prologis REIT Inc. |
145 | 270,711 | ||||||
NIPPON REIT Investment Corp. |
27 | 64,450 | ||||||
Nisshin Fudosan Co. |
1,700 | 6,137 | ||||||
Nomura Real Estate Holdings Inc. |
6,700 | 168,207 | ||||||
Nomura Real Estate Master Fund Inc. |
280 | 313,601 |
36 |
2 0 2 3 I S H A R E S S E M I - 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 (unaudited) (continued) September 30, 2023 |
iShares® International Developed Property ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Japan (continued) | ||||||||
NTT UD REIT Investment Corp. |
84 | $ | 77,578 | |||||
One REIT Inc. |
14 | 24,268 | ||||||
Ooedo Onsen Reit Investment Corp. |
15 | 6,564 | ||||||
Orix JREIT Inc. |
165 | 197,896 | ||||||
Raysum Co. Ltd. |
400 | 8,683 | ||||||
SAMTY Co. Ltd. |
2,400 | 38,071 | ||||||
Samty Residential Investment Corp. |
42 | 32,388 | ||||||
Sankei Real Estate Inc. |
28 | 17,133 | ||||||
Sekisui House Reit Inc. |
259 | 144,277 | ||||||
SOSiLA Logistics REIT Inc. |
44 | 36,336 | ||||||
SRE Holdings Corp.(a) |
600 | 11,802 | ||||||
Star Asia Investment Corp. |
140 | 54,188 | ||||||
Star Mica Holdings Co. Ltd. |
1,500 | 6,306 | ||||||
Starts Corp. Inc. |
2,000 | 39,035 | ||||||
Starts Proceed Investment Corp. |
15 | 21,960 | ||||||
Sumitomo Realty & Development Co. Ltd. |
28,200 | 732,115 | ||||||
Sun Frontier Fudousan Co. Ltd. |
1,700 | 17,112 | ||||||
Takara Leben Co. Ltd. |
4,900 | 15,533 | ||||||
Takara Leben Real Estate Investment Corp. |
42 | 27,272 | ||||||
TKP Corp.(a)(b) |
900 | 15,678 | ||||||
TOC Co. Ltd. |
3,000 | 12,869 | ||||||
Tokaido REIT Inc. |
14 | 11,610 | ||||||
Tokyo Tatemono Co. Ltd. |
12,300 | 170,062 | ||||||
Tokyu Fudosan Holdings Corp. |
35,900 | 220,590 | ||||||
Tokyu REIT Inc. |
54 | 66,082 | ||||||
Tosei Corp. |
1,600 | 20,640 | ||||||
Tosei Reit Investment Corp. |
17 | 15,997 | ||||||
United Urban Investment Corp. |
184 | 191,553 | ||||||
XYMAX REIT Investment Corp. |
13 | 10,059 | ||||||
|
|
|||||||
11,808,927 | ||||||||
Netherlands — 0.6% | ||||||||
Argo Properties NV(a)(b) |
717 | 10,513 | ||||||
Brack Capital Properties NV(a) |
1 | 64 | ||||||
CTP NV(c) |
6,405 | 91,491 | ||||||
Eurocommercial Properties NV |
2,519 | 55,840 | ||||||
NSI NV |
1,092 | 20,712 | ||||||
Vastned Retail NV |
1,039 | 21,189 | ||||||
Wereldhave NV |
2,420 | 38,466 | ||||||
|
|
|||||||
238,275 | ||||||||
New Zealand — 0.6% | ||||||||
Argosy Property Ltd. |
51,582 | 34,626 | ||||||
Goodman Property Trust |
61,650 | 78,149 | ||||||
Kiwi Property Group Ltd. |
92,655 | 46,931 | ||||||
Precinct Properties New Zealand Ltd. |
79,613 | 54,873 | ||||||
|
|
|||||||
214,579 | ||||||||
Norway — 0.1% | ||||||||
Entra ASA(c) |
4,247 | 36,227 | ||||||
|
|
|||||||
Singapore — 8.4% | ||||||||
AIMS APAC REIT(b) |
41,156 | 39,074 | ||||||
CapitaLand Ascendas REIT |
210,892 | 422,981 | ||||||
CapitaLand Ascott Trust |
133,785 | 93,778 | ||||||
CapitaLand China Trust |
69,326 | 44,787 | ||||||
Capitaland India Trust |
59,766 | 45,809 | ||||||
CapitaLand Integrated Commercial Trust |
299,910 | 404,733 | ||||||
Capitaland Investment Ltd/Singapore |
141,900 | 320,631 | ||||||
CDL Hospitality Trusts |
40,162 | 30,471 | ||||||
City Developments Ltd. |
30,000 | 144,776 | ||||||
Cromwell European Real Estate Investment Trust |
18,820 | 25,469 |
Security | Shares | Value | ||||||
Singapore (continued) | ||||||||
Digital Core REIT Management Pte Ltd. |
43,100 | $ | 22,791 | |||||
Eagle Hospitality Trust(a)(d) |
53,200 | 1 | ||||||
EC World Real Estate Investment Trust(d) |
15,900 | 3,018 | ||||||
ESR-LOGOS REIT |
351,636 | 71,822 | ||||||
Far East Hospitality Trust |
62,000 | 28,801 | ||||||
Frasers Centrepoint Trust |
64,006 | 102,310 | ||||||
Frasers Logistics & Commercial Trust |
172,472 | 134,675 | ||||||
Hong Fok Corp. Ltd.(b) |
21,700 | 14,339 | ||||||
Keppel DC REIT(b) |
79,303 | 120,407 | ||||||
Keppel Pacific Oak US REIT |
44,400 | 9,768 | ||||||
Keppel REIT |
114,600 | 71,529 | ||||||
Lendlease Global Commercial REIT(b) |
102,792 | 40,902 | ||||||
Manulife US Real Estate Investment Trust |
103,850 | 5,915 | ||||||
Mapletree Industrial Trust |
122,632 | 202,437 | ||||||
Mapletree Logistics Trust |
196,911 | 241,400 | ||||||
Mapletree Pan Asia Commercial Trust |
137,112 | 143,096 | ||||||
PARAGON REIT |
74,500 | 45,473 | ||||||
Parkway Life REIT |
23,100 | 62,306 | ||||||
Prime U.S. REIT |
37,500 | 5,167 | ||||||
Sasseur Real Estate Investment Trust |
30,100 | 14,852 | ||||||
Starhill Global REIT |
84,800 | 30,055 | ||||||
Suntec REIT |
132,100 | 111,876 | ||||||
UOL Group Ltd. |
27,500 | 128,633 | ||||||
|
|
|||||||
3,184,082 | ||||||||
South Korea — 0.4% | ||||||||
D&D Platform REIT Co. Ltd., NVS |
3,390 | 7,693 | ||||||
ESR Kendall Square REIT Co. Ltd. |
9,440 | 26,431 | ||||||
Haesung Industrial Co. Ltd. |
720 | 4,166 | ||||||
JR REIT XXVII |
9,795 | 29,551 | ||||||
Koramco Energy Plus Reit |
3,017 | 12,290 | ||||||
LOTTE Reit Co. Ltd. |
6,952 | 16,838 | ||||||
NH All-One REIT Co. Ltd. |
2,493 | 6,187 | ||||||
Shinhan Alpha REIT Co. Ltd. |
4,236 | 19,243 | ||||||
SK D&D Co. Ltd. |
408 | 8,568 | ||||||
SK REITs Co. Ltd. |
7,107 | 22,092 | ||||||
|
|
|||||||
153,059 | ||||||||
Spain — 0.8% | ||||||||
Aedas Homes SA(c) |
775 | 13,249 | ||||||
Inmobiliaria Colonial SOCIMI SA |
17,101 | 96,976 | ||||||
Lar Espana Real Estate SOCIMI SA |
2,953 | 17,296 | ||||||
Merlin Properties SOCIMI SA |
19,838 | 166,914 | ||||||
Metrovacesa SA(c) |
899 | 6,986 | ||||||
|
|
|||||||
301,421 | ||||||||
Sweden — 3.9% | ||||||||
Atrium Ljungberg AB, Class B |
3,168 | 51,555 | ||||||
Castellum AB(b) |
25,118 | 254,610 | ||||||
Catena AB |
1,912 | 66,343 | ||||||
Cibus Nordic Real Estate AB |
3,373 | 33,354 | ||||||
Corem Property Group AB, Class B |
32,026 | 17,688 | ||||||
Dios Fastigheter AB |
6,274 | 35,751 | ||||||
Fabege AB |
14,636 | 116,568 | ||||||
Fastighets AB Balder, Class B(a) |
39,295 | 176,152 | ||||||
Hufvudstaden AB, Class A |
6,800 | 75,108 | ||||||
Neobo Fastigheter AB(a)(b) |
8,173 | 7,310 | ||||||
NP3 Fastigheter AB |
1,785 | 25,759 | ||||||
Nyfosa AB |
8,452 | 45,318 | ||||||
Pandox AB, Class B. |
5,340 | 56,668 | ||||||
Platzer Fastigheter Holding AB, Class B |
3,848 | 23,668 | ||||||
Sagax AB, Class B |
12,247 | 232,637 |
S C H E D U L E O F I N V E S T M E N T S |
37 |
Schedule of Investments (unaudited) (continued) September 30, 2023 |
iShares® International Developed Property ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Sweden (continued) | ||||||||
Sagax AB, Class D |
6,318 | $ | 14,813 | |||||
Samhallsbyggnadsbolaget i Norden AB(b) |
62,987 | 22,938 | ||||||
Wallenstam AB, Class B |
26,150 | 87,287 | ||||||
Wihlborgs Fastigheter AB |
15,984 | 111,433 | ||||||
|
|
|||||||
1,454,960 | ||||||||
Switzerland — 2.8% | ||||||||
Allreal Holding AG, Registered |
915 | 145,754 | ||||||
Intershop Holding AG |
68 | 44,956 | ||||||
Mobimo Holding AG, Registered |
430 | 115,178 | ||||||
Peach Property Group AG(a)(b) |
769 | 11,178 | ||||||
PSP Swiss Property AG, Registered |
2,720 | 320,911 | ||||||
Swiss Prime Site AG, Registered |
4,549 | 416,455 | ||||||
|
|
|||||||
1,054,432 | ||||||||
United Kingdom — 9.3% | ||||||||
Abrdn Property Income Trust |
24,677 | 14,723 | ||||||
AEW U.K. REIT PLC |
8,805 | 10,546 | ||||||
Assura PLC |
175,819 | 90,698 | ||||||
Balanced Commercial Property Trust Ltd. |
41,948 | 34,639 | ||||||
Big Yellow Group PLC |
10,311 | 117,498 | ||||||
British Land Co. PLC(The) |
55,646 | 214,329 | ||||||
Capital & Counties Properties PLC |
115,807 | 161,761 | ||||||
CLS Holdings PLC |
7,871 | 11,375 | ||||||
Custodian Reit PLC |
25,544 | 25,612 | ||||||
Derwent London PLC |
6,681 | 156,638 | ||||||
Empiric Student Property PLC |
35,498 | 38,763 | ||||||
Grainger PLC |
44,192 | 125,954 | ||||||
Great Portland Estates PLC |
14,983 | 76,377 | ||||||
Hammerson PLC |
228,377 | 69,900 | ||||||
Helical PLC |
6,226 | 16,066 | ||||||
Home Reit PLC(d) |
52,824 | 20,624 | ||||||
Impact Healthcare Reit PLC, Class B |
23,810 | 24,038 | ||||||
Land Securities Group PLC |
44,674 | 320,224 | ||||||
Life Science Reit PLC |
20,928 | 17,772 | ||||||
LondonMetric Property PLC |
57,817 | 120,563 | ||||||
LXI REIT PLC |
101,406 | 112,343 | ||||||
NewRiver REIT PLC |
19,028 | 18,550 | ||||||
Picton Property Income Ltd. |
32,847 | 27,233 | ||||||
Primary Health Properties PLC |
79,336 | 90,070 | ||||||
PRS REIT PLC(The) |
30,557 | 25,427 | ||||||
Regional REIT Ltd.(c) |
25,507 | 8,870 | ||||||
Safestore Holdings PLC |
12,987 | 116,029 | ||||||
Schroder REIT Ltd. |
28,844 | 14,383 | ||||||
Segro PLC |
72,614 | 634,939 | ||||||
Sirius Real Estate Ltd. |
70,318 | 73,716 | ||||||
Supermarket Income Reit PLC |
73,240 | 67,761 | ||||||
Target Healthcare REIT PLC |
37,086 | 34,298 | ||||||
Triple Point Social Housing REIT PLC(c) |
20,007 | 12,254 |
Security | Shares | Value | ||||||
United Kingdom (continued) | ||||||||
Tritax Big Box REIT PLC |
112,876 | $ | 192,094 | |||||
UK Commercial Property REIT Ltd. |
51,400 | 33,245 | ||||||
UNITE Group PLC(The) |
23,510 | 256,307 | ||||||
Urban Logistics REIT PLC |
27,864 | 37,329 | ||||||
Warehouse REIT PLC |
25,082 | 25,125 | ||||||
Workspace Group PLC |
8,036 | 47,869 | ||||||
|
|
|||||||
3,495,942 | ||||||||
|
|
|||||||
Total
Common Stocks — 99.3% |
|
37,422,845 | ||||||
|
|
|||||||
Rights |
||||||||
Austria — 0.0% | ||||||||
Buwog AG(d) |
463 | — | ||||||
|
|
|||||||
Total
Rights — 0.0% |
— | |||||||
|
|
|||||||
Total
Long-Term Investments — 99.3% |
37,422,845 | |||||||
|
|
|||||||
Short-Term Securities |
||||||||
Money Market Funds — 2.5% | ||||||||
BlackRock
Cash Funds: Institutional, SL Agency Shares, |
553,333 | 553,499 | ||||||
BlackRock
Cash Funds: Treasury, SL Agency Shares, |
390,000 | 390,000 | ||||||
|
|
|||||||
Total
Short-Term Securities — 2.5% |
943,499 | |||||||
|
|
|||||||
Total
Investments — 101.8% |
38,366,344 | |||||||
Liabilities in Excess of Other Assets — (1.8)% |
|
(678,396 | ) | |||||
|
|
|||||||
Net Assets — 100.0% |
$ | 37,687,948 | ||||||
|
|
(a) |
Non-income producing security. |
(b) |
All or a portion of this security is on loan. |
(c) |
Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
(d) |
Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. |
(e) |
Affiliate of the Fund. |
(f) |
Annualized 7-day yield as of period end. |
(g) |
All or a portion of this security was purchased with the cash collateral from loaned securities. |
38 |
2 0 2 3 I S H A R E S S E M I - 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 (unaudited) (continued) September 30, 2023 |
iShares® International Developed Property ETF |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the six months ended September 30, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Issuer | Value at 03/31/23 |
Purchases at Cost |
Proceeds from Sale |
Net Realized Gain (Loss) |
Change
in Unrealized Appreciation (Depreciation) |
Value at 09/30/23 |
Shares Held at 09/30/23 |
Income |
Capital Gain Distributions from Underlying Funds |
|||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares |
$ | 912,455 | $ | — | $ | (358,927 | )(a) | $ | 53 | $ | (82 | ) | $ | 553,499 | 553,333 | $ | 6,588 | (b) | $ | — | ||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares |
10,000 | 380,000 | (a) | — | — | — | 390,000 | 390,000 | 608 | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
$ | 53 | $ | (82 | ) | $ | 943,499 | $ | 7,196 | $ | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) |
Represents net amount purchased (sold). |
(b) |
All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
|
||||||||||||||||
Description | Number of Contracts |
Expiration Date |
Notional Amount (000) |
Value/ Unrealized Appreciation (Depreciation) |
||||||||||||
|
||||||||||||||||
Long Contracts |
||||||||||||||||
Mini TOPIX Index |
8 | 12/07/23 | $ | 124 | $ | (1,796 | ) | |||||||||
Dow Jones U.S. Real Estate Index |
5 | 12/15/23 | 152 | (6,573 | ) | |||||||||||
|
|
|||||||||||||||
$ | (8,369 | ) | ||||||||||||||
|
|
Derivative Financial Instruments Categorized by Risk Exposure
As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
|
||||||||||||||||||||||||||||
Commodity Contracts |
Credit Contracts |
Equity Contracts |
Foreign Currency Exchange Contracts |
Interest Rate Contracts |
Other Contracts |
Total | ||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Liabilities — Derivative Financial Instruments |
||||||||||||||||||||||||||||
Futures contracts |
||||||||||||||||||||||||||||
Unrealized depreciation on futures contracts(a) |
$ | — | $ | — | $ | 8,369 | $ | — | $ | — | $ | — | $ | 8,369 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 September 30, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:
|
||||||||||||||||||||||||||||
Commodity Contracts |
Credit Contracts |
Equity Contracts |
Foreign Currency Exchange Contracts |
Interest Rate Contracts |
Other Contracts |
Total | ||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Net Realized Gain (Loss) from |
||||||||||||||||||||||||||||
Futures contracts |
$ | — | $ | — | $ | 28,278 | $ | — | $ | — | $ | — | $ | 28,278 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on |
||||||||||||||||||||||||||||
Futures contracts |
$ | — | $ | — | $ | (15,634 | ) | $ | — | $ | — | $ | — | $ | (15,634 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
|
||||
Futures contracts |
||||
Average notional value of contracts — long |
$ | 351,760 | ||
|
S C H E D U L E O F I N V E S T M E N T S |
39 |
Schedule of Investments (unaudited) (continued) September 30, 2023 |
iShares® International Developed Property ETF |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets |
||||||||||||||||
Investments |
||||||||||||||||
Long-Term Investments |
||||||||||||||||
Common Stocks |
$ | 2,398,561 | $ | 35,000,641 | $ | 23,643 | $ | 37,422,845 | ||||||||
Rights |
— | — | — | — | ||||||||||||
Short-Term Securities |
||||||||||||||||
Money Market Funds |
943,499 | — | — | 943,499 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 3,342,060 | $ | 35,000,641 | $ | 23,643 | $ | 38,366,344 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Derivative Financial Instruments(a) |
||||||||||||||||
Liabilities |
||||||||||||||||
Equity Contracts |
$ | (6,573 | ) | $ | (1,796 | ) | $ | — | $ | (8,369 | ) | |||||
|
|
|
|
|
|
|
|
(a) |
Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument. |
See notes to financial statements.
40 |
2 0 2 3 I S H A R E S S E M I - 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 (unaudited) September 30, 2023 |
iShares® International Developed Small Cap Value Factor ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
||||||||
Australia — 6.4% | ||||||||
Abacus Group |
159,783 | $ | 107,355 | |||||
Abacus Storage King(a)(b) |
158,967 | 106,296 | ||||||
APM Human Services International Ltd. |
96,747 | 114,047 | ||||||
Arena REIT |
102,663 | 220,390 | ||||||
Bapcor Ltd. |
105,723 | 459,952 | ||||||
Bega Cheese Ltd. |
93,483 | 150,731 | ||||||
Brickworks Ltd. |
18,717 | 299,055 | ||||||
BWP Trust |
151,725 | 325,316 | ||||||
Centuria Capital Group |
225,675 | 195,911 | ||||||
Centuria Industrial REIT |
165,495 | 318,309 | ||||||
Centuria Office REIT |
143,922 | 105,141 | ||||||
Charter Hall Long Wale REIT |
210,630 | 433,390 | ||||||
Charter Hall Retail REIT |
158,865 | 318,612 | ||||||
Charter Hall Social Infrastructure REIT |
108,112 | 173,907 | ||||||
Elders Ltd. |
49,419 | 182,791 | ||||||
Estia Health Ltd. |
72,726 | 142,369 | ||||||
Growthpoint Properties Australia Ltd. |
90,384 | 127,534 | ||||||
GUD Holdings Ltd. |
44,013 | 331,002 | ||||||
Helia Group Ltd. |
107,304 | 240,345 | ||||||
HomeCo Daily Needs REIT |
551,871 | 407,617 | ||||||
Ingenia Communities Group |
115,668 | 309,492 | ||||||
Judo Capital Holdings Ltd.(a) |
162,180 | 103,902 | ||||||
Kelsian Group Ltd. |
63,393 | 231,413 | ||||||
National Storage REIT |
387,702 | 539,500 | ||||||
Nine Entertainment Co. Holdings Ltd. |
467,721 | 612,358 | ||||||
NRW Holdings Ltd. |
134,436 | 232,752 | ||||||
OFX Group Ltd.(a) |
69,564 | 77,437 | ||||||
Perseus Mining Ltd. |
423,912 | 442,623 | ||||||
Premier Investments Ltd. |
26,214 | 418,123 | ||||||
Reliance Worldwide Corp. Ltd. |
251,022 | 623,821 | ||||||
Rural Funds Group. |
118,677 | 134,438 | ||||||
Sigma Healthcare Ltd. |
259,386 | 115,073 | ||||||
SmartGroup Corp. Ltd. |
27,336 | 144,949 | ||||||
Super Retail Group Ltd. |
51,765 | 395,562 | ||||||
Viva Energy Group Ltd.(c) |
259,896 | 498,122 | ||||||
Waypoint REIT Ltd. |
208,743 | 300,287 | ||||||
|
|
|||||||
9,939,922 | ||||||||
Austria — 2.2% | ||||||||
BAWAG Group AG(c) |
25,347 | 1,158,510 | ||||||
CA Immobilien Anlagen AG |
12,852 | 425,576 | ||||||
EVN AG(b) |
11,373 | 303,968 | ||||||
Mayr Melnhof Karton AG(b) |
2,703 | 364,559 | ||||||
Vienna Insurance Group AG Wiener |
||||||||
Versicherung Gruppe |
12,495 | 348,266 | ||||||
Wienerberger AG |
33,507 | 848,073 | ||||||
|
|
|||||||
3,448,952 | ||||||||
Belgium — 2.0% | ||||||||
Aedifica SA |
15,147 | 860,883 | ||||||
Bekaert SA |
10,557 | 472,626 | ||||||
bpost SA |
31,416 | 172,218 | ||||||
Etablissements Franz Colruyt NV |
15,453 | 668,006 | ||||||
KBC Ancora |
10,965 | 447,097 | ||||||
Montea NV |
4,641 | 329,539 | ||||||
Tessenderlo Group SA |
6,834 | 196,922 | ||||||
|
|
|||||||
3,147,291 | ||||||||
Canada — 16.0% | ||||||||
Allied Properties REIT |
40,443 | 533,880 | ||||||
AltaGas Ltd. |
87,618 | 1,680,434 |
Security | Shares | Value | ||||||
Canada (continued) | ||||||||
ARC Resources Ltd. |
194,412 | $ | 3,103,149 | |||||
B2Gold Corp. |
335,988 | 964,736 | ||||||
Brookfield Renewable Corp., Class A |
40,290 | 964,350 | ||||||
Canadian Western Bank |
29,682 | 614,947 | ||||||
Canfor Corp.(a) |
18,819 | 233,739 | ||||||
Capital Power Corp |
36,771 | 1,026,583 | ||||||
Cargojet Inc. |
2,754 | 182,566 | ||||||
Celestica Inc.(a) |
32,334 | 791,299 | ||||||
Dream Industrial REIT |
77,724 | 734,751 | ||||||
Enerplus Corp |
68,340 | 1,202,522 | ||||||
Granite REIT |
19,023 | 1,009,518 | ||||||
H&R Real Estate Investment Trust |
83,538 | 567,683 | ||||||
iA Financial Corp. Inc. |
32,793 | 2,057,032 | ||||||
Kinross Gold Corp. |
387,039 | 1,763,866 | ||||||
Laurentian Bank of Canada |
13,668 | 304,605 | ||||||
Linamar Corp. |
13,413 | 646,135 | ||||||
Mullen Group Ltd. |
26,724 | 264,043 | ||||||
Onex Corp. |
21,471 | 1,261,940 | ||||||
Parex Resources Inc. |
32,946 | 618,291 | ||||||
Prinmaris REIT |
30,600 | 303,916 | ||||||
Russel Metals Inc. |
19,635 | 549,621 | ||||||
SSR Mining Inc. |
64,719 | 859,585 | ||||||
Transcontinental Inc., Class A |
22,848 | 191,935 | ||||||
West Fraser Timber Co. Ltd. |
24,378 | 1,769,862 | ||||||
Whitecap Resources Inc. |
92,718 | 782,975 | ||||||
|
|
|||||||
24,983,963 | ||||||||
Denmark — 3.3% | ||||||||
Alm Brand A/S |
271,626 | 406,800 | ||||||
FLSmidth & Co. A/S(b) |
17,748 | 799,951 | ||||||
ISS A/S |
48,858 | 750,533 | ||||||
NKT A/S(a) |
16,932 | 881,994 | ||||||
Scandinavian Tobacco Group A/S, Class A(c) |
17,493 | 266,461 | ||||||
Schouw & Co. A/S |
3,876 | 258,069 | ||||||
Spar Nord Bank A/S |
24,786 | 383,420 | ||||||
Sydbank A/S |
17,748 | 842,464 | ||||||
Topdanmark A/S |
13,668 | 593,393 | ||||||
|
|
|||||||
5,183,085 | ||||||||
Finland — 2.0% | ||||||||
Cargotec OYJ, Class B |
15,351 | 641,750 | ||||||
Kemira OYJ |
35,853 | 557,468 | ||||||
Konecranes OYJ |
22,542 | 747,251 | ||||||
Metsa Board OYJ, Class B |
53,703 | 431,095 | ||||||
TietoEVRY OYJ |
31,671 | 711,320 | ||||||
|
|
|||||||
3,088,884 | ||||||||
France — 2.6% | ||||||||
APERAM SA |
13,821 | 401,454 | ||||||
Carmila SA |
17,901 | 267,740 | ||||||
Cie. Plastic Omnium SA |
17,085 | 277,074 | ||||||
Coface SA |
32,385 | 412,296 | ||||||
Derichebourg SA |
29,988 | 150,751 | ||||||
Fnac Darty SA |
3,264 | 79,946 | ||||||
Imerys SA |
12,138 | 358,222 | ||||||
IPSOS |
12,189 | 559,968 | ||||||
Mersen SA |
5,147 | 205,030 | ||||||
Metropole Television SA |
20,604 | 260,771 | ||||||
Nexity SA |
13,617 | 200,750 | ||||||
Rubis SCA |
29,631 | 663,632 | ||||||
Television Francaise 1 |
34,476 | 263,739 | ||||||
|
|
|||||||
4,101,373 |
S C H E D U L E O F I N V E S T M E N T S |
41 |
Schedule of Investments (unaudited) (continued) September 30, 2023 |
iShares® International Developed Small Cap Value Factor ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Germany — 2.9% | ||||||||
1&1 AG |
14,637 | $ | 247,339 | |||||
Aurubis AG |
9,537 | 703,676 | ||||||
CropEnergies AG |
6,375 | 53,235 | ||||||
Deutz AG |
38,148 | 168,005 | ||||||
ElringKlinger AG |
8,823 | 54,567 | ||||||
Freenet AG |
37,230 | 871,496 | ||||||
Hornbach Holding AG & Co. KGaA |
2,754 | 175,528 | ||||||
Kloeckner & Co. SE |
23,562 | 169,932 | ||||||
Norma Group SE |
10,098 | 186,586 | ||||||
Patrizia SE |
13,107 | 103,868 | ||||||
ProSiebenSat.1 Media SE(b) |
54,060 | 365,154 | ||||||
Siltronic AG |
6,630 | 564,397 | ||||||
Suedzucker AG |
24,633 | 366,217 | ||||||
Vitesco Technologies Group AG(a) |
5,712 | 462,258 | ||||||
|
|
|||||||
4,492,258 | ||||||||
Hong Kong — 0.6% | ||||||||
CITIC Telecom International Holdings Ltd. |
459,000 | 181,496 | ||||||
Fortune REIT |
408,000 | 244,568 | ||||||
Luk Fook Holdings International Ltd. |
102,000 | 263,852 | ||||||
United
Laboratories International Holdings |
204,000 | 206,161 | ||||||
|
|
|||||||
896,077 | ||||||||
Ireland — 0.3% | ||||||||
Dalata Hotel Group PLC |
68,952 | 292,691 | ||||||
Greencore Group PLC(a) |
154,632 | 143,198 | ||||||
|
|
|||||||
435,889 | ||||||||
Israel — 0.6% | ||||||||
FIBI Holdings Ltd. |
5,304 | 241,009 | ||||||
Formula Systems 1985 Ltd. |
2,397 | 176,874 | ||||||
Isracard Ltd. |
60,180 | 248,830 | ||||||
Paz Ashdod Refinery Ltd.(a) |
3,060 | 84,637 | ||||||
Paz Oil Co. Ltd.(a) |
3,060 | 251,964 | ||||||
|
|
|||||||
1,003,314 | ||||||||
Italy — 1.8% | ||||||||
Azimut Holding SpA |
33,660 | 732,494 | ||||||
Biesse SpA |
4,284 | 49,887 | ||||||
Credito Emiliano SpA |
24,687 | 202,197 | ||||||
Datalogic SpA |
8,415 | 54,061 | ||||||
Iren SpA |
203,949 | 392,137 | ||||||
Maire Tecnimont SpA |
49,929 | 204,510 | ||||||
Piaggio & C SpA |
51,510 | 164,405 | ||||||
Tod’s SpA(a) |
2,652 | 95,810 | ||||||
Unipol Gruppo SpA |
133,569 | 720,915 | ||||||
Webuild SpA |
97,155 | 172,363 | ||||||
|
|
|||||||
2,788,779 | ||||||||
Japan — 25.0% | ||||||||
77 Bank Ltd.(The) |
20,400 | 432,020 | ||||||
ADEKA Corp. |
30,600 | 522,525 | ||||||
Aisan Industry Co. Ltd. |
10,200 | 91,161 | ||||||
Alpen Co. Ltd. |
5,100 | 65,956 | ||||||
AOKI Holdings Inc. |
10,200 | 68,979 | ||||||
Aoyama Trading Co. Ltd. |
15,300 | 170,878 | ||||||
Arata Corp. |
5,100 | 190,264 | ||||||
Arcs Co. Ltd. |
10,200 | 185,819 | ||||||
Asahi Diamond Industrial Co. Ltd. |
15,300 | 90,557 | ||||||
ASAHI YUKIZAI Corp. |
3,900 | 96,334 | ||||||
Aska Pharmaceutical Holdings Co. Ltd. |
5,100 | 57,813 | ||||||
Autobacs Seven Co. Ltd. |
20,400 | 215,935 | ||||||
Avex Inc. |
10,200 | 98,452 | ||||||
Axial Retailing Inc. |
5,100 | 127,639 |
Security | Shares | Value | ||||||
Japan (continued) | ||||||||
Bando Chemical Industries Ltd. |
10,200 | $ | 111,800 | |||||
Belluna Co. Ltd. |
15,300 | 68,765 | ||||||
BML Inc. |
5,100 | 95,252 | ||||||
Bunka Shutter Co. Ltd. |
15,300 | 113,101 | ||||||
Canon Electronics Inc. |
5,100 | 64,482 | ||||||
Cawachi Ltd. |
5,100 | 84,834 | ||||||
Central Glass Co. Ltd. |
5,100 | 101,055 | ||||||
Chiyoda Corp.(a)(b) |
45,900 | 116,162 | ||||||
Chori Co. Ltd. |
5,100 | 102,098 | ||||||
Chudenko Corp. |
10,200 | 164,662 | ||||||
Citizen Watch Co. Ltd. |
66,300 | 407,828 | ||||||
CKD Corp |
20,400 | 280,451 | ||||||
CMIC Holdings Co. Ltd. |
5,100 | 58,721 | ||||||
CMK Corp. |
15,300 | 68,586 | ||||||
Daiichi Jitsugyo Co. Ltd. |
9,000 | 112,030 | ||||||
Daiken Corp. |
5,100 | 102,060 | ||||||
Daiki Aluminium Industry Co. Ltd. |
10,200 | 88,982 | ||||||
Daishi Hokuetsu Financial Group Inc. |
15,100 | 382,717 | ||||||
DCM Holdings Co. Ltd. |
30,600 | 248,564 | ||||||
Dexerials Corp. |
15,300 | 376,725 | ||||||
Doshisha Co. Ltd. |
5,100 | 76,013 | ||||||
Doutor Nichires Holdings Co. Ltd. |
10,200 | 158,926 | ||||||
Duskin Co. Ltd. |
10,200 | 220,985 | ||||||
Eagle Industry Co. Ltd. |
10,200 | 115,440 | ||||||
EDION Corp. |
25,500 | 252,229 | ||||||
Eiken Chemical Co. Ltd. |
10,200 | 93,090 | ||||||
eRex Co. Ltd.(b) |
10,200 | 52,224 | ||||||
Exedy Corp. |
10,200 | 178,320 | ||||||
FCC Co. Ltd. |
10,200 | 128,323 | ||||||
Fuji Co. Ltd./Ehime |
10,200 | 121,867 | ||||||
Fuji Corp./Aichi |
25,500 | 395,597 | ||||||
Fuji Seal International Inc. |
10,200 | 121,470 | ||||||
Fukuyama Transporting Co. Ltd. |
10,200 | 267,904 | ||||||
Furukawa Co. Ltd. |
10,200 | 114,508 | ||||||
Genky DrugStores Co. Ltd. |
2,600 | 96,100 | ||||||
Geo Holdings Corp. |
5,100 | 81,009 | ||||||
GLOBERIDE Inc. |
5,100 | 68,804 | ||||||
Godo Steel Ltd. |
2,800 | 85,913 | ||||||
Goldcrest Co. Ltd. |
5,100 | 75,554 | ||||||
G-Tekt Corp. |
5,100 | 62,071 | ||||||
Gunma Bank Ltd.(The) |
127,500 | 594,033 | ||||||
Gunze Ltd. |
5,100 | 153,706 | ||||||
H2O Retailing Corp. |
25,500 | 309,704 | ||||||
Halows Co. Ltd. |
2,800 | 78,714 | ||||||
Hanwa Co. Ltd. |
10,200 | 323,380 | ||||||
Happinet Corp. |
5,100 | 85,174 | ||||||
Heiwado Co. Ltd. |
10,200 | 177,987 | ||||||
Hitachi Zosen Corp. |
51,000 | 285,609 | ||||||
Hogy Medical Co. Ltd. |
5,100 | 108,939 | ||||||
Hokuetsu Corp. |
40,800 | 295,801 | ||||||
Honeys Holdings Co. Ltd. |
5,100 | 53,441 | ||||||
Hosiden Corp. |
15,300 | 196,104 | ||||||
Hosokawa Micron Corp. |
5,100 | 139,733 | ||||||
Ichikoh Industries Ltd. |
15,300 | 57,872 | ||||||
Integrated Design & Engineering Holdings Co. Ltd., NVS |
5,100 | 121,881 | ||||||
Inui Global Logistics Co. Ltd.(b) |
5,100 | 45,079 | ||||||
Ishihara Sangyo Kaisha Ltd. |
10,200 | 100,952 | ||||||
Itochu Enex Co. Ltd. |
15,300 | 154,083 | ||||||
JAFCO Group Co. Ltd. |
15,300 | 168,299 |
42 |
2 0 2 3 I S H A R E S S E M I - 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 (unaudited) (continued) September 30, 2023 |
iShares® International Developed Small Cap Value Factor ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Japan (continued) | ||||||||
Japan Lifeline Co. Ltd. |
20,400 | $ | 158,641 | |||||
Japan Medical Dynamic Marketing Inc. |
5,100 | 25,680 | ||||||
Japan Petroleum Exploration Co. Ltd. |
10,200 | 382,230 | ||||||
Japan Pulp & Paper Co. Ltd. |
3,100 | 101,241 | ||||||
Japan Wool Textile Co. Ltd.(The) |
20,400 | 183,552 | ||||||
JDC Corp. |
10,200 | 45,243 | ||||||
Joshin Denki Co. Ltd. |
5,100 | 80,246 | ||||||
Joyful Honda Co. Ltd. |
15,300 | 179,883 | ||||||
K&O Energy Group Inc. |
5,100 | 89,218 | ||||||
Kaga Electronics Co. Ltd. |
5,100 | 220,929 | ||||||
Kanamoto Co. Ltd. |
10,200 | 179,133 | ||||||
Kanto Denka Kogyo Co. Ltd. |
15,300 | 89,296 | ||||||
Kato Sangyo Co. Ltd. |
5,100 | 135,496 | ||||||
Kissei Pharmaceutical Co. Ltd. |
10,200 | 230,987 | ||||||
Kitz Corp. |
25,500 | 176,298 | ||||||
Koa Corp. |
10,200 | 122,612 | ||||||
Kojima Co. Ltd. |
10,200 | 43,526 | ||||||
Komeri Co. Ltd. |
10,200 | 214,979 | ||||||
Komori Corp. |
15,300 | 108,211 | ||||||
Konishi Co. Ltd. |
10,200 | 155,387 | ||||||
Konoike Transport Co. Ltd. |
10,200 | 131,906 | ||||||
Krosaki Harima Corp. |
1,200 | 77,239 | ||||||
Kureha Corp. |
5,100 | 283,554 | ||||||
KYB Corp. |
5,100 | 164,927 | ||||||
Kyoei Steel Ltd. |
5,100 | 67,821 | ||||||
Kyokuto Kaihatsu Kogyo Co. Ltd. |
10,200 | 120,011 | ||||||
Life Corp. |
5,100 | 124,201 | ||||||
Macromill Inc. |
10,200 | 49,960 | ||||||
Makino Milling Machine Co. Ltd. |
5,100 | 222,447 | ||||||
Maruzen Showa Unyu Co. Ltd. |
5,100 | 129,048 | ||||||
Matsuda Sangyo Co. Ltd. |
5,100 | 80,804 | ||||||
Maxell Ltd. |
10,200 | 114,101 | ||||||
MCJ Co. Ltd. |
20,400 | 152,996 | ||||||
Megachips Corp. |
5,100 | 142,463 | ||||||
Megmilk Snow Brand Co. Ltd. |
15,300 | 234,571 | ||||||
Meidensha Corp. |
10,200 | 153,023 | ||||||
Meiko Electronics Co. Ltd. |
5,100 | 115,491 | ||||||
Meisei Industrial Co. Ltd. |
15,300 | 103,416 | ||||||
Micronics Japan Co. Ltd. |
10,200 | 144,184 | ||||||
Mimasu Semiconductor Industry Co. Ltd. |
5,100 | 94,591 | ||||||
MIRAIT ONE corp. |
25,500 | 335,216 | ||||||
Miroku Jyoho Service Co. Ltd. |
5,100 | 56,152 | ||||||
Mitsubishi Pencil Co. Ltd. |
15,300 | 196,282 | ||||||
Mitsubishi Shokuhin Co. Ltd. |
5,100 | 133,120 | ||||||
Mitsui DM Sugar Holdings Co. Ltd. |
5,100 | 102,699 | ||||||
Mitsui-Soko Holdings Co. Ltd. |
5,100 | 146,783 | ||||||
Mizuno Corp. |
5,100 | 161,510 | ||||||
Morita Holdings Corp. |
10,200 | 108,565 | ||||||
Musashi Seimitsu Industry Co. Ltd. |
15,300 | 166,160 | ||||||
Nachi-Fujikoshi Corp. |
5,100 | 136,938 | ||||||
Nakayama Steel Works Ltd. |
5,100 | 30,838 | ||||||
Neturen Co. Ltd. |
10,200 | 68,247 | ||||||
Nichias Corp. |
15,300 | 313,518 | ||||||
Nichicon Corp. |
20,400 | 192,143 | ||||||
Nichiha Corp. |
10,200 | 200,541 | ||||||
Nichireki Co. Ltd. |
7,200 | 96,158 | ||||||
Nihon Chouzai Co. Ltd. |
5,100 | 50,355 | ||||||
Nihon Parkerizing Co. Ltd. |
30,600 | 226,095 | ||||||
Nikkiso Co. Ltd. |
15,300 | 103,627 | ||||||
Nikkon Holdings Co. Ltd. |
15,300 | 323,313 |
Security | Shares | Value | ||||||
Japan (continued) | ||||||||
Nippn Corp., New |
15,300 | $ | 222,404 | |||||
Nippon Carbon Co. Ltd. |
3,100 | 94,422 | ||||||
Nippon Denko Co. Ltd. |
30,600 | 62,148 | ||||||
Nippon Densetsu Kogyo Co. Ltd. |
10,200 | 149,601 | ||||||
Nippon Light Metal Holdings Co. Ltd. |
20,400 | 229,407 | ||||||
Nippon Pillar Packing Co. Ltd. |
5,100 | 132,964 | ||||||
Nippon Road Co. Ltd.(The) |
5,000 | 62,829 | ||||||
Nippon Soda Co. Ltd. |
8,500 | 312,573 | ||||||
Nippon Suisan Kaisha Ltd. |
91,800 | 449,348 | ||||||
Nippon Thompson Co. Ltd. |
20,400 | 75,442 | ||||||
Nishimatsu Construction Co. Ltd. |
10,200 | 252,949 | ||||||
Nishio Holdings Co. Ltd. |
5,100 | 120,384 | ||||||
Nissha Co. Ltd.(b) |
10,200 | 114,546 | ||||||
Nisshinbo Holdings Inc. |
40,800 | 303,205 | ||||||
Nissin Corp. |
5,100 | 91,192 | ||||||
Nitta Corp. |
5,100 | 113,204 | ||||||
Nittetsu Mining Co. Ltd. |
5,100 | 170,719 | ||||||
Nitto Boseki Co. Ltd. |
8,200 | 191,148 | ||||||
Nojima Corp. |
20,400 | 178,341 | ||||||
Noritake Co. Ltd./Nagoya Japan |
5,100 | 211,945 | ||||||
Noritz Corp. |
10,200 | 108,095 | ||||||
Obara Group Inc. |
3,300 | 85,091 | ||||||
Ohara Inc. |
5,100 | 44,264 | ||||||
Oiles Corp. |
10,200 | 136,940 | ||||||
Okamura Corp. |
20,400 | 308,042 | ||||||
Okinawa Financial Group Inc. |
5,100 | 82,669 | ||||||
Onward Holdings Co. Ltd. |
35,700 | 124,466 | ||||||
Oriental Shiraishi Corp |
30,600 | 67,279 | ||||||
Osaka Organic Chemical Industry Ltd. |
5,100 | 86,102 | ||||||
Osaka Soda Co. Ltd. |
6,500 | 279,760 | ||||||
Pacific Industrial Co. Ltd. |
15,300 | 146,557 | ||||||
Pack Corp.(The) |
5,100 | 107,527 | ||||||
Pasona Group Inc. |
5,100 | 55,672 | ||||||
Piolax Inc. |
7,100 | 108,621 | ||||||
Press Kogyo Co. Ltd. |
25,500 | 117,460 | ||||||
Pressance Corp. |
5,100 | 62,458 | ||||||
Prima Meat Packers Ltd. |
10,200 | 167,321 | ||||||
Qol Holdings Co. Ltd. |
5,100 | 63,298 | ||||||
Riken Corp.(a) |
2,700 | 66,127 | ||||||
Riken Technos Corp. |
15,300 | 73,081 | ||||||
RS Technologies Co. Ltd. |
5,100 | 97,238 | ||||||
Ryobi Ltd. |
10,200 | 207,157 | ||||||
S Foods Inc. |
5,100 | 114,112 | ||||||
Sakai Chemical Industry Co. Ltd. |
5,100 | 70,539 | ||||||
Sakai Moving Service Co. Ltd. |
5,400 | 90,065 | ||||||
Sakata INX Corp. |
15,300 | 131,652 | ||||||
San-A Co. Ltd. |
5,100 | 163,061 | ||||||
San-Ai Obbli Co. Ltd. |
15,300 | 162,119 | ||||||
San-In Godo Bank Ltd. |
45,900 | 296,644 | ||||||
Sanoh Industrial Co. Ltd. |
5,100 | 33,954 | ||||||
Sanyo Chemical Industries Ltd. |
3,400 | 93,076 | ||||||
Sanyo Denki Co. Ltd. |
2,700 | 123,369 | ||||||
Sanyo Special Steel Co. Ltd. |
5,100 | 100,365 | ||||||
SBS Holdings Inc. |
5,100 | 95,562 | ||||||
Seiko Group Corp. |
10,200 | 178,085 | ||||||
Sekisui Jushi Corp. |
7,800 | 124,279 | ||||||
Senshu Electric Co. Ltd. |
5,100 | 120,267 | ||||||
Senshu Ikeda Holdings Inc. |
91,800 | 196,913 | ||||||
Shiga Bank Ltd.(The) |
15,300 | 357,508 | ||||||
Shin-Etsu Polymer Co. Ltd. |
10,200 | 91,165 |
S C H E D U L E O F I N V E S T M E N T S |
43 |
Schedule of Investments (unaudited) (continued) September 30, 2023 |
iShares® International Developed Small Cap Value Factor ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Japan (continued) | ||||||||
Shinmaywa Industries Ltd. |
15,300 | $ | 130,340 | |||||
Shizuoka Gas Co. Ltd. |
15,300 | 104,253 | ||||||
Sinfonia Technology Co. Ltd. |
10,200 | 109,566 | ||||||
Sintokogio Ltd. |
15,300 | 111,866 | ||||||
SKY Perfect JSAT Holdings Inc. |
35,700 | 166,936 | ||||||
Sodick Co. Ltd. |
15,300 | 74,815 | ||||||
Star Micronics Co. Ltd. |
10,200 | 127,924 | ||||||
Starts Corp. Inc. |
10,200 | 199,080 | ||||||
Stella Chemifa Corp. |
2,500 | 51,883 | ||||||
Sumitomo Densetsu Co. Ltd. |
5,100 | 94,592 | ||||||
Sumitomo Riko Co. Ltd. |
10,200 | 76,235 | ||||||
Sumitomo Seika Chemicals Co. Ltd. |
2,600 | 78,721 | ||||||
Sumitomo Warehouse Co. Ltd.(The) |
15,300 | 243,954 | ||||||
Sun Frontier Fudousan Co. Ltd. |
10,200 | 102,674 | ||||||
SWCC Corp. |
5,100 | 72,580 | ||||||
Tachibana Eletech Co. Ltd. |
5,100 | 95,489 | ||||||
Tachi-S Co. Ltd. |
10,200 | 116,034 | ||||||
Taiyo Holdings Co. Ltd. |
10,200 | 174,689 | ||||||
Takaoka Toko Co. Ltd. |
5,100 | 71,585 | ||||||
Takara Standard Co. Ltd. |
15,300 | 189,448 | ||||||
Takasago Thermal Engineering Co. Ltd. |
20,400 | 396,208 | ||||||
Takuma Co. Ltd. |
20,400 | 210,959 | ||||||
Tamron Co. Ltd. |
5,100 | 155,829 | ||||||
T-Gaia Corp. |
5,100 | 60,207 | ||||||
Toagosei Co. Ltd. |
35,700 | 320,611 | ||||||
Tocalo Co. Ltd. |
15,300 | 139,176 | ||||||
Toei Co. Ltd. |
2,000 | 251,123 | ||||||
Toho Holdings Co. Ltd. |
15,300 | 327,894 | ||||||
TOKAI Holdings Corp. |
35,700 | 221,017 | ||||||
Tokai Rika Co. Ltd. |
15,300 | 239,779 | ||||||
Tokuyama Corp. |
20,400 | 320,411 | ||||||
Tokyo Kiraboshi Financial Group Inc. |
7,900 | 237,776 | ||||||
Tokyo Steel Manufacturing Co. Ltd. |
20,400 | 229,787 | ||||||
Tokyotokeiba Co. Ltd. |
5,100 | 137,271 | ||||||
Tokyu Construction Co. Ltd. |
20,400 | 106,373 | ||||||
Tomoku Co. Ltd. |
5,100 | 83,699 | ||||||
Topre Corp. |
15,300 | 173,595 | ||||||
Topy Industries Ltd. |
5,100 | 86,781 | ||||||
Toyo Construction Co. Ltd. |
25,500 | 207,723 | ||||||
Toyo Ink SC Holdings Co. Ltd. |
10,200 | 159,388 | ||||||
Toyobo Co. Ltd. |
25,500 | 183,636 | ||||||
TPR Co. Ltd. |
10,200 | 124,451 | ||||||
Trancom Co. Ltd. |
1,800 | 88,333 | ||||||
Transcosmos Inc. |
5,100 | 108,911 | ||||||
TRE Holdings Corp. |
10,200 | 82,207 | ||||||
Trusco Nakayama Corp. |
10,200 | 166,924 | ||||||
TSI Holdings Co. Ltd. |
20,400 | 110,379 | ||||||
Tsubakimoto Chain Co. |
10,200 | 263,956 | ||||||
Union Tool Co. |
3,000 | 77,732 | ||||||
Unipres Corp |
10,200 | 79,049 | ||||||
United Arrows Ltd. |
10,200 | 133,558 | ||||||
United Super Markets Holdings Inc. |
15,300 | 109,453 | ||||||
Valor Holdings Co. Ltd. |
10,200 | 149,155 | ||||||
Valqua Ltd. |
5,100 | 141,110 | ||||||
VT Holdings Co. Ltd. |
30,600 | 104,603 | ||||||
Wacoal Holdings Corp. |
15,300 | 345,657 | ||||||
Wakita & Co. Ltd. |
15,300 | 143,545 | ||||||
Warabeya Nichiyo Holdings Co. Ltd. |
5,100 | 96,393 | ||||||
Xebio Holdings Co. Ltd. |
5,100 | 34,100 | ||||||
Yamazen Corp. |
20,400 | 160,291 |
Security | Shares | Value | ||||||
Japan (continued) | ||||||||
Yellow Hat Ltd. |
10,200 | $ | 129,407 | |||||
Yodogawa Steel Works Ltd. |
10,200 | 241,570 | ||||||
Yokowo Co. Ltd. |
5,100 | 53,653 | ||||||
Yuasa Trading Co. Ltd. |
5,100 | 140,914 | ||||||
|
|
|||||||
38,961,836 | ||||||||
Netherlands — 1.3% | ||||||||
AMG Critical Materials NV |
9,945 | 298,453 | ||||||
Eurocommercial Properties NV |
16,116 | 357,250 | ||||||
Flow Trades Ltd., NVS |
8,160 | 151,924 | ||||||
Fugro NV(a) |
34,884 | 534,784 | ||||||
Iveco Group NV(a) |
62,679 | 583,880 | ||||||
NSI NV |
6,069 | 115,111 | ||||||
|
|
|||||||
2,041,402 | ||||||||
New Zealand — 0.9% | ||||||||
Genesis Energy Ltd. |
163,557 | 238,985 | ||||||
Goodman Property Trust |
344,658 | 436,897 | ||||||
Precinct Properties New Zealand Ltd. |
414,579 | 285,750 | ||||||
Summerset Group Holdings Ltd. |
72,624 | 443,611 | ||||||
|
|
|||||||
1,405,243 | ||||||||
Norway — 0.3% | ||||||||
Austevoll Seafood ASA |
28,662 | 200,840 | ||||||
BW LPG Ltd.(c) |
23,868 | 300,563 | ||||||
|
|
|||||||
501,403 | ||||||||
Portugal — 0.2% | ||||||||
Sonae SGPS SA |
304,521 | 295,756 | ||||||
Singapore — 1.0% | ||||||||
CapitaLand China Trust(b) |
362,100 | 233,927 | ||||||
Capitaland India Trust |
300,900 | 230,634 | ||||||
CDL Hospitality Trusts |
275,400 | 208,945 | ||||||
First Resources Ltd. |
158,100 | 176,499 | ||||||
Frasers Centrepoint Trust(b) |
336,600 | 538,038 | ||||||
UMS Holdings Ltd. |
142,800 | 135,390 | ||||||
|
|
|||||||
1,523,433 | ||||||||
Spain — 3.2% | ||||||||
Acerinox SA |
62,373 | 602,723 | ||||||
Almirall SA |
23,562 | 239,643 | ||||||
Atresmedia Corp. de Medios de Comunicacion SA |
27,438 | 106,021 | ||||||
Cia. de Distribucion Integral Logista Holdings SA |
19,482 | 497,859 | ||||||
Construcciones y Auxiliar de Ferrocarriles SA |
5,865 | 183,031 | ||||||
Ence Energia y Celulosa SA |
39,474 | 132,257 | ||||||
Faes Farma SA |
100,317 | 338,815 | ||||||
Fluidra SA |
34,629 | 706,584 | ||||||
Fomento de Construcciones y Contratas SA |
14,076 | 176,891 | ||||||
Gestamp Automocion SA(c) |
48,501 | 202,191 | ||||||
Indra Sistemas SA(b) |
38,709 | 559,332 | ||||||
Laboratorios Farmaceuticos Rovi SA |
6,630 | 358,853 | ||||||
Pharma Mar SA |
4,284 | 145,250 | ||||||
Viscofan SA |
12,240 | 747,260 | ||||||
|
|
|||||||
4,996,710 | ||||||||
Sweden — 4.2% | ||||||||
AFRY AB |
31,773 | 371,999 | ||||||
Betsson AB |
37,383 | 410,834 | ||||||
Bilia AB, Class A |
22,440 | 217,921 | ||||||
Billerud AB |
67,422 | 624,088 | ||||||
Bravida Holding AB(c) |
64,923 | 477,845 | ||||||
Catena AB |
10,710 | 371,618 | ||||||
Clas Ohlson AB, Class B |
12,945 | 138,406 | ||||||
Cloetta AB, Class B |
69,513 | 116,127 |
44 |
2 0 2 3 I S H A R E S S E M I - 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 (unaudited) (continued) September 30, 2023 |
iShares® International Developed Small Cap Value Factor ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Sweden (continued) | ||||||||
Fabege AB |
79,305 | $ | 631,623 | |||||
Fagerhult AB |
21,522 | 101,055 | ||||||
Granges AB |
33,099 | 311,362 | ||||||
Hexpol AB |
78,183 | 692,745 | ||||||
Hufvudstaden AB, Class A |
33,558 | 370,659 | ||||||
Lindab International AB |
21,930 | 320,163 | ||||||
Loomis AB, Class B |
22,338 | 601,178 | ||||||
NCC AB, Class B |
27,999 | 302,694 | ||||||
Peab AB, Class B |
62,118 | 254,819 | ||||||
Ratos AB, Class B |
64,107 | 190,896 | ||||||
Resurs Holding AB(c) |
44,982 | 96,749 | ||||||
|
|
|||||||
6,602,781 | ||||||||
Switzerland — 7.6% | ||||||||
ALSO Holding AG, Registered |
867 | 217,513 | ||||||
Arbonia AG |
14,178 | 129,954 | ||||||
Aryzta AG(a) |
291,261 | 498,168 | ||||||
Bucher Industries AG, Registered |
2,091 | 797,659 | ||||||
Burckhardt Compression Holding AG |
969 | 527,341 | ||||||
Bystronic AG, Registered |
408 | 253,141 | ||||||
Cembra Money Bank AG |
9,282 | 629,412 | ||||||
Comet Holding AG, Registered |
2,346 | 521,602 | ||||||
EFG International AG |
24,582 | 278,249 | ||||||
Forbo Holding AG, Registered |
306 | 372,751 | ||||||
Galenica AG(c) |
15,351 | 1,134,065 | ||||||
Huber + Suhner AG, Registered |
5,253 | 378,706 | ||||||
Implenia AG, Registered |
4,539 | 148,875 | ||||||
Komax Holding AG, Registered |
1,479 | 339,703 | ||||||
Landis+Gyr Group AG |
7,752 | 559,481 | ||||||
OC Oerlikon Corp. AG, Registered |
60,282 | 255,462 | ||||||
Schweiter Technologies AG, NVS |
306 | 195,092 | ||||||
SFS Group AG |
5,508 | 600,886 | ||||||
Siegfried Holding AG, Registered |
1,275 | 1,089,010 | ||||||
St. Galler Kantonalbank AG, Class A, Registered |
867 | 473,116 | ||||||
Stadler Rail AG |
16,881 | 657,023 | ||||||
Sulzer AG, Registered |
5,457 | 520,447 | ||||||
Swissquote Group Holding SA, Registered |
2,754 | 501,790 | ||||||
Valiant Holding AG, Registered |
4,998 | 517,466 | ||||||
Vetropack Holding AG, Class A, Registered |
3,876 | 171,283 | ||||||
Zehnder Group AG, Registered |
2,907 | 170,410 | ||||||
|
|
|||||||
11,938,605 | ||||||||
United Kingdom — 14.4% | ||||||||
Balanced Commercial Property Trust Ltd. |
170,238 | 140,576 | ||||||
Balfour Beatty PLC |
178,041 | 697,301 | ||||||
Bank of Georgia Group PLC |
11,271 | 507,439 | ||||||
Bellway PLC |
38,811 | 1,078,248 | ||||||
Big Yellow Group PLC |
53,652 | 611,387 | ||||||
C&C Group PLC |
123,930 | 209,644 | ||||||
Centamin PLC |
365,160 | 371,047 | ||||||
Clarkson PLC |
7,803 | 260,384 | ||||||
Close Brothers Group PLC |
47,328 | 509,596 | ||||||
Crest Nicholson Holdings PLC |
80,886 | 171,423 | ||||||
easyJet PLC(a) |
118,167 | 612,499 | ||||||
Grafton Group PLC |
62,424 | 688,518 | ||||||
Grainger PLC |
228,021 | 649,895 | ||||||
Helical PLC |
31,977 | 82,517 | ||||||
Ibstock PLC(c) |
117,351 | 204,031 | ||||||
IG Group Holdings PLC |
120,258 | 941,453 | ||||||
International Distributions Services PLC(a) |
214,404 | 680,992 | ||||||
Investec PLC |
197,064 | 1,158,189 |
Security | Shares | Value | ||||||
United Kingdom (continued) | ||||||||
Jupiter Fund Management PLC |
139,893 | $ | 163,125 | |||||
Keller Group PLC |
22,389 | 205,149 | ||||||
Lancashire Holdings Ltd. |
76,347 | 549,591 | ||||||
Man Group PLC/Jersey |
374,646 | 1,018,295 | ||||||
Marks & Spencer Group PLC(a) |
623,577 | 1,793,542 | ||||||
OSB Group PLC |
134,079 | 531,976 | ||||||
Petershill Partners PLC(c) |
90,882 | 167,437 | ||||||
Picton Property Income Ltd. |
170,136 | 141,057 | ||||||
Playtech PLC(a) |
97,002 | 534,952 | ||||||
Plus500 Ltd. |
27,795 | 466,978 | ||||||
Premier Foods PLC |
203,439 | 297,859 | ||||||
Rathbones Group PLC |
18,717 | 396,344 | ||||||
Redde Northgate PLC |
71,247 | 293,818 | ||||||
Redrow PLC |
85,221 | 512,772 | ||||||
Safestore Holdings PLC |
67,116 | 599,630 | ||||||
Savills PLC |
42,228 | 445,926 | ||||||
Serco Group PLC |
349,809 | 635,935 | ||||||
TP ICAP Group PLC |
248,982 | 516,735 | ||||||
Travis Perkins PLC |
67,116 | 686,198 | ||||||
Tritax Big Box REIT PLC |
595,170 | 1,012,867 | ||||||
UK Commercial Property REIT Ltd. |
234,345 | 151,571 | ||||||
Vesuvius PLC |
67,065 | 354,279 | ||||||
Vistry Group PLC |
109,446 | 1,210,702 | ||||||
Workspace Group PLC |
45,237 | 269,470 | ||||||
|
|
|||||||
22,531,347 | ||||||||
United States — 0.1% | ||||||||
GQG Partners Inc. |
201,093 | 177,336 | ||||||
|
|
|||||||
Total
Common Stocks — 98.9% |
154,485,639 | |||||||
|
|
|||||||
Preferred Stocks |
||||||||
Italy — 0.2% | ||||||||
Danieli & C Officine Meccaniche SpA, Preference Shares, NVS |
12,750 | 266,026 | ||||||
|
|
|||||||
Total
Preferred Stocks — 0.2% |
266,026 | |||||||
|
|
|||||||
Total
Long-Term Investments — 99.1% |
154,751,665 | |||||||
|
|
|||||||
Short-Term Securities |
||||||||
Money Market Funds — 1.5% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 5.54%(d)(e)(f) |
2,253,962 | 2,254,638 | ||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 5.31%(d)(e) |
50,000 | 50,000 | ||||||
|
|
|||||||
Total
Short-Term Securities — 1.5% |
2,304,638 | |||||||
|
|
|||||||
Total
Investments — 100.6% |
157,056,303 | |||||||
Liabilities in Excess of Other Assets — (0.6)% |
|
(953,137 | ) | |||||
|
|
|||||||
Net Assets — 100.0% |
$ | 156,103,166 | ||||||
|
|
(a) |
Non-income producing security. |
(b) |
All or a portion of this security is on loan. |
S C H E D U L E O F I N V E S T M E N T S |
45 |
Schedule of Investments (unaudited) (continued) September 30, 2021 |
iShares® International Developed Small Cap Value Factor ETF |
(c) |
Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
(d) |
Affiliate of the Fund. |
(e) |
Annualized 7-day yield as of period end. |
(f) |
All or a portion of this security was purchased with the cash collateral from loaned securities. |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the six months ended September 30, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Issuer | Value at 03/31/23 |
Purchases at Cost |
Proceeds from Sale |
Net Realized Gain (Loss) |
Change
in Unrealized Appreciation (Depreciation) |
Value at 09/30/23 |
Shares Held at 09/30/23 |
Income |
Capital Gain |
|||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares. |
$ | 2,137,769 | $ | 116,909 | (a) | $ | — | $ | 304 | $ | (344) | $ | 2,254,638 | 2,253,962 | $ | 20,617 | (b) | $ | — | |||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares |
— | 50,000 | (a) | — | — | — | 50,000 | 50,000 | 2,581 | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
$ | 304 | $ | (344) | $ | 2,304,638 | $ | 23,198 | $ | — | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) |
Represents net amount purchased (sold). |
(b) |
All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
|
||||||||||||||||
Description | Number of Contracts |
Expiration Date |
Notional Amount (000) |
Value/ Unrealized Appreciation (Depreciation) |
||||||||||||
|
||||||||||||||||
Long Contracts |
||||||||||||||||
Mini TOPIX Index |
22 | 12/07/23 | $ | 341 | $ | (5,944 | ) | |||||||||
S&P/TSE 60 Index Mini |
9 | 12/14/23 | 390 | (10,751 | ) | |||||||||||
FTSE 250 Index |
13 | 12/15/23 | 580 | (8,938 | ) | |||||||||||
|
|
|||||||||||||||
$ | (25,633 | ) | ||||||||||||||
|
|
Derivative Financial Instruments Categorized by Risk Exposure
As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
|
||||||||||||||||||||||||||||
Commodity Contracts |
Credit Contracts |
Equity Contracts |
Foreign Currency Exchange Contracts |
Interest Rate Contracts |
Other Contracts |
Total | ||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Liabilities — Derivative Financial Instruments |
||||||||||||||||||||||||||||
Futures contracts |
||||||||||||||||||||||||||||
Unrealized depreciation on futures contracts(a) |
$ | — | $ | — | $ | 25,633 | $ | — | $ | — | $ | — | $ | 25,633 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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). |
46 |
2 0 2 3 I S H A R E S S E M I - 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 (unaudited) (continued) September 30, 2023 |
iShares® International Developed Small Cap Value Factor ETF |
For the period ended September 30, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:
|
||||||||||||||||||||||||||||
Commodity Contracts |
Credit Contracts |
Equity Contracts |
Foreign Currency Exchange Contracts |
Interest Rate Contracts |
Other Contracts |
Total | ||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Net Realized Gain (Loss) from |
||||||||||||||||||||||||||||
Futures contracts |
$ | — | $ | — | $ | 38,647 | $ | — | $ | — | $ | — | $ | 38,647 | ||||||||||||||
|
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|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on |
||||||||||||||||||||||||||||
Futures contracts |
$ | — | $ | — | $ | (35,204) | $ | — | $ | — | $ | — | $ | (35,204 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
|
||||
Futures contracts: |
||||
Average notional value of contracts — long |
$ | 1,140,271 | ||
|
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 Funds financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.
|
||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
|
||||||||||||||||
Assets |
||||||||||||||||
Investments |
||||||||||||||||
Long-Term Investments |
||||||||||||||||
Common Stocks |
$ | 36,944,804 | $ | 117,540,835 | $ | — | $ | 154,485,639 | ||||||||
Preferred Stocks |
— | 266,026 | — | 266,026 | ||||||||||||
Short-Term Securities |
||||||||||||||||
Money Market Funds |
2,304,638 | — | — | 2,304,638 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 39,249,442 | $ | 117,806,861 | $ | — | $ | 157,056,303 | |||||||||
|
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|
|
|
|
|
|||||||||
Derivative Financial Instruments(a) |
||||||||||||||||
Liabilities |
||||||||||||||||
Equity Contracts |
$ | (10,751) | $ | (14,882) | $ | — | $ | (25,633) | ||||||||
|
|
|
|
|
|
|
|
(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 |
47 |
Schedule of Investments (unaudited) September 30, 2023 |
iShares® International Dividend Growth ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
||||||||
Australia — 2.1% | ||||||||
Altium Ltd. |
7,280 | $ | 200,986 | |||||
AUB Group Ltd. |
8,944 | 166,864 | ||||||
Bapcor Ltd. |
55,952 | 243,421 | ||||||
Brickworks Ltd. |
11,024 | 176,138 | ||||||
carsales.com Ltd. |
36,816 | 659,535 | ||||||
Cleanaway Waste Management Ltd. |
222,560 | 346,628 | ||||||
Collins Foods Ltd. |
18,928 | 115,746 | ||||||
Computershare Ltd. |
82,784 | 1,379,556 | ||||||
CSL Ltd. |
31,824 | 5,126,942 | ||||||
Elders Ltd. |
69,264 | 256,193 | ||||||
IPH Ltd. |
51,376 | 243,275 | ||||||
Nick Scali Ltd. |
23,712 | 168,201 | ||||||
Northern Star Resources Ltd. |
123,760 | 821,797 | ||||||
PSC Insurance Group Ltd. |
26,624 | 83,116 | ||||||
Sonic Healthcare Ltd. |
80,704 | 1,541,038 | ||||||
Steadfast Group Ltd. |
145,600 | 525,907 | ||||||
Technology One Ltd. |
19,344 | 191,830 | ||||||
Washington H Soul Pattinson & Co. Ltd. |
32,240 | 672,548 | ||||||
|
|
|||||||
12,919,721 | ||||||||
Belgium — 0.2% | ||||||||
Elia Group SA/NV |
3,737 | 365,707 | ||||||
UCB SA |
10,608 | 868,893 | ||||||
|
|
|||||||
1,234,600 | ||||||||
Brazil — 0.2% | ||||||||
Localiza Rent a Car SA |
90,034 | 1,048,908 | ||||||
|
|
|||||||
Canada — 20.0% | ||||||||
Alimentation Couche-Tard Inc. |
27,456 | 1,394,379 | ||||||
Atco Ltd., Class I, NVS |
18,558 | 470,013 | ||||||
Barrick Gold Corp. |
241,072 | 3,501,823 | ||||||
Brookfield Asset Management Ltd. |
48,048 | 1,601,069 | ||||||
Brookfield Corp., Class A |
70,304 | 2,198,278 | ||||||
Canadian Imperial Bank of Commerce |
276,224 | 10,662,562 | ||||||
Canadian National Railway Co. |
59,072 | 6,397,129 | ||||||
Canadian Natural Resources Ltd. |
201,344 | 13,021,209 | ||||||
Canadian Tire Corp. Ltd., Class A, NVS |
11,440 | 1,230,121 | ||||||
Canadian Western Bank |
21,632 | 448,168 | ||||||
Capital Power Corp |
33,107 | 924,290 | ||||||
Cargojet Inc. |
1,456 | 96,520 | ||||||
CCL Industries Inc., Class B, NVS |
12,272 | 515,094 | ||||||
Cogeco Communications Inc. |
4,160 | 192,556 | ||||||
Dollarama Inc. |
4,576 | 315,275 | ||||||
Empire Co. Ltd., Class A, NVS |
14,560 | 396,092 | ||||||
Enghouse Systems Ltd. |
5,616 | 123,959 | ||||||
EQB Inc. |
2,288 | 127,013 | ||||||
Finning International Inc. |
16,293 | 480,543 | ||||||
FirstService Corp. |
1,166 | 169,597 | ||||||
Fortis Inc. |
101,961 | 3,872,754 | ||||||
Franco-Nevada Corp. |
8,736 | 1,166,279 | ||||||
George Weston Ltd. |
4,992 | 553,613 | ||||||
Great-West Lifeco Inc. |
67,808 | 1,940,010 | ||||||
Hydro One Ltd.(a) |
50,336 | 1,281,516 | ||||||
iA Financial Corp. Inc. |
16,848 | 1,056,838 | ||||||
Imperial Oil Ltd. |
20,384 | 1,255,531 | ||||||
Intact Financial Corp. |
17,888 | 2,607,901 | ||||||
Jamieson Wellness Inc.(a) |
4,784 | 85,836 | ||||||
Loblaw Companies Ltd. |
10,192 | 865,935 | ||||||
Magna International Inc. |
39,520 | 2,117,917 |
Security | Shares | Value | ||||||
Canada (continued) | ||||||||
Manulife Financial Corp |
498,784 | $ | 9,114,536 | |||||
Maple Leaf Foods Inc.(b) |
11,856 | 227,824 | ||||||
Metro Inc. |
18,720 | 972,213 | ||||||
North West Co. Inc.(The) |
11,648 | 293,290 | ||||||
Open Text Corp. |
30,160 | 1,058,514 | ||||||
Parkland Corp. |
29,328 | 857,870 | ||||||
Power Corp. of Canada |
150,800 | 3,839,252 | ||||||
Premium Brands Holdings Corp., Class A |
5,824 | 407,776 | ||||||
Quebecor Inc., Class B |
28,912 | 619,642 | ||||||
RB Global Inc. |
14,560 | 911,601 | ||||||
Royal Bank of Canada |
186,992 | 16,341,580 | ||||||
Saputo Inc. |
29,536 | 617,576 | ||||||
Stantec Inc. |
4,576 | 296,914 | ||||||
Stella-Jones Inc. |
3,952 | 190,057 | ||||||
Sun Life Financial Inc. |
124,384 | 6,068,785 | ||||||
TFI International Inc. |
3,744 | 480,842 | ||||||
TMX Group Ltd. |
32,864 | 706,277 | ||||||
Toromont Industries Ltd. |
6,032 | 491,264 | ||||||
Toronto-Dominion Bank(The) |
275,808 | 16,616,506 | ||||||
Waste Connections Inc. |
8,736 | 1,172,968 | ||||||
Wheaton Precious Metals Corp. |
31,066 | 1,260,709 | ||||||
|
|
|
|
|||||
123,615,816 | ||||||||
China — 6.2% | ||||||||
Bank of China Ltd., Class A |
2,059,200 | 1,065,321 | ||||||
Bosideng International Holdings Ltd. |
832,000 | 357,160 | ||||||
China Coal Energy Co. Ltd. |
83,200 | 99,906 | ||||||
China Coal Energy Co. Ltd., Class H |
832,000 | 651,416 | ||||||
China Construction Bank Corp., Class A |
249,600 | 215,919 | ||||||
China Foods Ltd. |
416,000 | 136,646 | ||||||
China Medical System Holdings Ltd. |
416,000 | 627,867 | ||||||
China Merchants Bank Co. Ltd., Class A |
468,000 | 2,130,942 | ||||||
China Merchants Bank Co. Ltd., Class H |
936,000 | 3,885,900 | ||||||
China National Nuclear Power Co. Ltd., Class A |
416,000 | 416,876 | ||||||
China Railway Group Ltd., Class A |
291,200 | 273,712 | ||||||
China Railway Group Ltd., Class H |
1,040,000 | 534,848 | ||||||
China Resources Gas Group Ltd. |
249,600 | 729,846 | ||||||
China Suntien Green Energy Corp. Ltd., Class H |
832,000 | 287,295 | ||||||
China Tourism Group Duty Free Corp. Ltd., Class A |
10,600 | 155,332 | ||||||
China Water Affairs Group Ltd. |
258,000 | 166,713 | ||||||
Citic Pacific Special Steel Group Co. Ltd. |
83,200 | 169,053 | ||||||
CSPC Pharmaceutical Group Ltd. |
1,354,000 | 990,239 | ||||||
ENN Energy Holdings Ltd. |
208,000 | 1,713,961 | ||||||
Greentown China Holdings Ltd. |
271,000 | 280,233 | ||||||
Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd. |
4,000 | 11,518 | ||||||
Haier Smart Home Co. Ltd., Class H |
291,200 | 910,165 | ||||||
Harbin Boshi Automation Co. Ltd. |
16,400 | 36,052 | ||||||
Huaxia Bank Co. Ltd., Class A |
487,600 | 382,791 | ||||||
Industrial & Commercial Bank of China Ltd., Class A |
2,766,400 | 1,775,743 | ||||||
Industrial Bank Co. Ltd., Class A |
644,800 | 1,443,937 | ||||||
Inspur Electronic Information Industry Co. Ltd., Class A |
16,400 | 84,526 | ||||||
Kweichow Moutai Co. Ltd., Class A |
7,000 | 1,737,717 | ||||||
Luzhou Laojiao Co. Ltd., Class A |
7,900 | 236,527 | ||||||
Metallurgical Corp. of China Ltd., Class A |
187,200 | 94,419 | ||||||
Ping An Insurance Group Co. of China Ltd., Class A |
208,000 | 1,387,830 | ||||||
Ping An Insurance Group Co. of China Ltd., Class H |
1,812,500 | 10,279,857 | ||||||
Postal Savings Bank of China Co. Ltd., Class H(a) |
2,912,000 | 1,466,329 | ||||||
Shanghai Baosight Software Co. Ltd., Class A |
20,908 | 129,740 | ||||||
Shanghai Tunnel Engineering Co. Ltd., Class A |
124,800 | 100,357 | ||||||
Shanghai Yuyuan Tourist Mart Group Co. Ltd., Class A |
98,000 | 100,038 |
48 |
2 0 2 3 I S H A R E S S E M I - 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 (unaudited) (continued) September 30, 2023 |
iShares® International Dividend Growth ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
China (continued) | ||||||||
Sinoma Science & Technology Co. Ltd., Class A |
16,400 | $ | 46,253 | |||||
Tsingtao Brewery Co. Ltd., Class A |
3,500 | 42,047 | ||||||
Tsingtao Brewery Co. Ltd., Class H |
54,000 | 439,720 | ||||||
Wuliangye Yibin Co. Ltd., Class A |
26,700 | 575,893 | ||||||
Xiamen Xiangyu Co. Ltd. |
99,200 | 92,577 | ||||||
Yankuang Energy Group Co. Ltd., Class A |
259,850 | 722,210 | ||||||
Yuexiu Property Co. Ltd. |
577,000 | 663,246 | ||||||
Zhengzhou Coal Mining Machinery Group Co. Ltd. |
20,800 | 37,363 | ||||||
Zhengzhou Coal Mining Machinery Group Co. Ltd., Class H |
124,800 | 121,272 | ||||||
Zhongsheng Group Holdings Ltd. |
104,000 | 291,188 | ||||||
|
|
|||||||
38,098,500 | ||||||||
Colombia — 0.1% | ||||||||
Grupo Argos SA |
108,876 | 249,505 | ||||||
Grupo Nutresa SA |
10,192 | 123,701 | ||||||
Interconexion Electrica SA ESP |
151,158 | 552,757 | ||||||
|
|
|||||||
925,963 | ||||||||
Denmark — 3.8% | ||||||||
Carlsberg A/S, Class B |
13,520 | 1,704,669 | ||||||
Coloplast A/S, Class B |
16,224 | 1,716,775 | ||||||
DSV A/S |
3,978 | 741,263 | ||||||
Novo Nordisk A/S |
181,223 | 16,500,568 | ||||||
Orsted A/S(a) |
35,360 | 1,923,697 | ||||||
Royal Unibrew A/S |
6,032 | 465,854 | ||||||
Scandinavian Tobacco Group A/S, Class A(a) |
24,544 | 373,865 | ||||||
|
|
|||||||
23,426,691 | ||||||||
Finland — 0.6% | ||||||||
Huhtamaki OYJ |
16,640 | 547,051 | ||||||
Kesko OYJ, Class A |
25,145 | 459,443 | ||||||
Kesko OYJ, Class B |
90,480 | 1,621,061 | ||||||
Olvi OYJ, Class A |
3,328 | 106,082 | ||||||
Uponor OYJ |
6,656 | 199,742 | ||||||
Valmet OYJ |
24,336 | 555,604 | ||||||
|
|
|||||||
3,488,983 | ||||||||
France — 4.5% | ||||||||
Equasens |
624 | 48,048 | ||||||
Sanofi |
168,064 | 18,045,914 | ||||||
Schneider Electric SE |
59,488 | 9,803,150 | ||||||
Thermador Groupe |
1,040 | 86,644 | ||||||
|
|
|||||||
27,983,756 | ||||||||
Germany — 5.3% | ||||||||
Adesso SE |
208 | 22,479 | ||||||
Bechtle AG |
6,448 | 300,285 | ||||||
Brenntag SE |
20,592 | 1,593,341 | ||||||
Deutsche Boerse AG |
22,256 | 3,843,540 | ||||||
E.ON SE |
531,856 | 6,289,734 | ||||||
Eckert & Ziegler Strahlen- und Medizintechnik AG |
2,080 | 70,724 | ||||||
Fresenius Medical Care AG & Co. KGaA |
28,496 | 1,225,099 | ||||||
Fresenius SE & Co. KGaA |
71,344 | 2,215,960 | ||||||
FUCHS SE |
6,240 | 199,817 | ||||||
LANXESS AG(b) |
15,808 | 399,653 | ||||||
Nemetschek SE |
2,496 | 151,903 | ||||||
SAP SE |
91,512 | 11,845,499 | ||||||
Stratec SE |
416 | 19,416 | ||||||
Symrise AG, Class A |
7,904 | 752,452 | ||||||
Vonovia SE |
154,960 | 3,712,578 | ||||||
|
|
|||||||
32,642,480 |
Security | Shares | Value | ||||||
Hong Kong — 2.4% | ||||||||
AIA Group Ltd. |
1,331,200 | $ | 10,765,604 | |||||
CK Infrastructure Holdings Ltd. |
200,000 | 943,670 | ||||||
Kerry Logistics Network Ltd. |
104,000 | 92,818 | ||||||
Swire Properties Ltd. |
332,800 | 692,131 | ||||||
Techtronic Industries Co. Ltd. |
245,000 | 2,365,128 | ||||||
VSTECS Holdings Ltd.(b) |
416,000 | 233,238 | ||||||
|
|
|||||||
15,092,589 | ||||||||
India — 2.4% | ||||||||
Aegis Logistics Ltd. |
17,264 | 68,367 | ||||||
Asian Paints Ltd. |
18,304 | 695,706 | ||||||
Astral Ltd. |
978 | 22,459 | ||||||
Balaji Amines Ltd. |
208 | 5,432 | ||||||
Berger Paints India Ltd. |
3,952 | 27,027 | ||||||
Berger Paints India Ltd., NVS |
790 | 5,405 | ||||||
Bharat Electronics Ltd. |
242,944 | 403,638 | ||||||
CRISIL Ltd. |
1,872 | 88,320 | ||||||
Grindwell Norton Ltd. |
1,664 | 41,606 | ||||||
Indraprastha Gas Ltd. |
74,464 | 406,978 | ||||||
Infosys Ltd. |
431,184 | 7,410,032 | ||||||
ITC Ltd. |
446,160 | 2,383,845 | ||||||
KEI Industries Ltd. |
1,040 | 33,134 | ||||||
Larsen & Toubro Infotech Ltd.(a) |
5,015 | 313,343 | ||||||
Mphasis Ltd. |
9,304 | 265,250 | ||||||
Persistent Systems Ltd. |
1,664 | 115,635 | ||||||
Pidilite Industries Ltd. |
3,328 | 97,609 | ||||||
Radico Khaitan Ltd. |
776 | 11,228 | ||||||
Reliance Industries Ltd. |
55,536 | 1,563,597 | ||||||
Reliance Industries Ltd., GDR(a) |
4,632 | 258,267 | ||||||
Schaeffler India Ltd. |
1,248 | 49,688 | ||||||
Tata Elxsi Ltd. |
1,248 | 108,298 | ||||||
TTK Prestige Ltd. |
1,388 | 13,066 | ||||||
UltraTech Cement Ltd. |
2,807 | 278,361 | ||||||
Vinati Organics Ltd. |
164 | 3,642 | ||||||
ZF Commercial Vehicle Control Systems India Ltd. |
210 | 39,326 | ||||||
|
|
|||||||
14,709,259 | ||||||||
Indonesia — 0.6% | ||||||||
Bank Central Asia Tbk PT |
6,531,200 | 3,721,051 | ||||||
Bank Pembangunan Daerah Jawa Timur Tbk PT |
894,400 | 36,748 | ||||||
|
|
|||||||
3,757,799 | ||||||||
Ireland — 0.4% | ||||||||
Kerry Group PLC, Class A |
9,559 | 798,697 | ||||||
Smurfit Kappa Group PLC |
52,624 | 1,748,157 | ||||||
|
|
|||||||
2,546,854 | ||||||||
Italy — 0.9% | ||||||||
A2A SpA |
404,560 | 719,024 | ||||||
ACEA SpA |
17,056 | 185,503 | ||||||
Buzzi Unicem SpA |
9,152 | 250,099 | ||||||
DiaSorin SpA |
1,456 | 132,587 | ||||||
Interpump Group SpA |
2,912 | 133,207 | ||||||
Iren SpA |
159,536 | 306,744 | ||||||
Italgas SpA |
135,408 | 692,778 | ||||||
Recordati Industria Chimica e Farmaceutica SpA |
14,768 | 695,946 | ||||||
Reply SpA |
1,040 | 97,586 | ||||||
Terna - Rete Elettrica Nazionale |
308,048 | 2,316,963 | ||||||
|
|
|||||||
5,530,437 | ||||||||
Japan — 18.8% | ||||||||
Aeon Mall Co. Ltd. |
20,800 | 244,802 | ||||||
AGC Inc. |
45,000 | 1,577,132 | ||||||
Aica Kogyo Co. Ltd. |
20,800 | 463,716 |
S C H E D U L E O F I N V E S T M E N T S |
49 |
Schedule of Investments (unaudited) (continued) September 30, 2023 |
iShares® International Dividend Growth ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Japan (continued) | ||||||||
Air Water Inc. |
42,000 | $ | 522,796 | |||||
Alfresa Holdings Corp. |
20,800 | 341,022 | ||||||
Astellas Pharma Inc. |
255,700 | 3,539,302 | ||||||
Benefit One Inc. |
20,800 | 150,219 | ||||||
Chiba Bank Ltd.(The) |
104,000 | 755,569 | ||||||
COMSYS Holdings Corp. |
20,800 | 434,877 | ||||||
DCM Holdings Co. Ltd. |
20,800 | 168,958 | ||||||
Denka Co. Ltd. |
20,800 | 375,718 | ||||||
EXEO Group Inc. |
20,800 | 426,175 | ||||||
FUJIFILM Holdings Corp. |
30,500 | 1,764,442 | ||||||
Hisamitsu Pharmaceutical Co. Inc. |
9,600 | 349,283 | ||||||
Hulic Co. Ltd. |
104,000 | 932,550 | ||||||
Kandenko Co. Ltd. |
20,800 | 191,525 | ||||||
Kao Corp. |
71,100 | 2,635,321 | ||||||
KDDI Corp. |
249,600 | 7,640,372 | ||||||
Kobayashi Pharmaceutical Co. Ltd. |
500 | 22,300 | ||||||
Kokuyo Co. Ltd. |
20,800 | 329,620 | ||||||
Kubota Corp. |
124,800 | 1,835,910 | ||||||
Kurita Water Industries Ltd. |
2,600 | 90,477 | ||||||
Kyowa Kirin Co. Ltd. |
26,600 | 462,491 | ||||||
Lasertec Corp. |
3,200 | 497,640 | ||||||
M3 Inc. |
20,800 | 377,286 | ||||||
MCJ Co. Ltd. |
20,800 | 155,996 | ||||||
Medipal Holdings Corp. |
20,800 | 351,593 | ||||||
Mitsubishi Corp. |
181,900 | 8,667,595 | ||||||
Mitsubishi UFJ Financial Group Inc. |
1,643,200 | 13,924,732 | ||||||
MonotaRO Co. Ltd. |
20,800 | 221,753 | ||||||
Morinaga & Co. Ltd. |
6,100 | 220,352 | ||||||
Murata Manufacturing Co. Ltd. |
187,200 | 3,414,931 | ||||||
NEC Networks & System Integration Corp. |
20,800 | 273,110 | ||||||
Nichias Corp. |
20,800 | 426,221 | ||||||
Nippon Gas Co. Ltd. |
20,800 | 307,847 | ||||||
Nippon Sanso Holdings Corp. |
21,000 | 497,206 | ||||||
Nippon Telegraph & Telephone Corp. |
4,499,100 | 5,325,291 | ||||||
Nissan Chemical Corp. |
20,800 | 884,197 | ||||||
Nisshin Seifun Group Inc. |
20,800 | 265,064 | ||||||
Nitori Holdings Co. Ltd. |
3,000 | 334,486 | ||||||
Nitto Denko Corp. |
19,300 | 1,265,605 | ||||||
Nomura Real Estate Holdings Inc. |
21,800 | 547,301 | ||||||
Nomura Research Institute Ltd. |
20,800 | 540,628 | ||||||
NSD Co. Ltd. |
20,800 | 394,273 | ||||||
NTT Data Corp. |
41,600 | 556,664 | ||||||
Obic Co. Ltd. |
2,100 | 318,193 | ||||||
Open House Group Co. Ltd. |
5,100 | 172,926 | ||||||
PALTAC Corp. |
200 | 6,265 | ||||||
Pan Pacific International Holdings Corp. |
20,800 | 436,529 | ||||||
Raito Kogyo Co. Ltd. |
20,800 | 287,028 | ||||||
Rinnai Corp. |
20,800 | 388,939 | ||||||
Sangetsu Corp. |
20,800 | 405,248 | ||||||
SBI Holdings Inc. |
62,400 | 1,313,258 | ||||||
SCSK Corp. |
21,000 | 366,131 | ||||||
Sekisui House Ltd. |
134,600 | 2,678,733 | ||||||
Seven & i Holdings Co. Ltd. |
73,700 | 2,885,368 | ||||||
Shin-Etsu Chemical Co. Ltd. |
222,800 | 6,471,369 | ||||||
Shionogi & Co. Ltd. |
32,200 | 1,436,263 | ||||||
Ship Healthcare Holdings Inc. |
200 | 3,031 | ||||||
Sohgo Security Services Co. Ltd. |
42,300 | 255,314 | ||||||
Sompo Holdings Inc. |
73,000 | 3,128,544 | ||||||
Sony Group Corp. |
37,600 | 3,074,761 | ||||||
Sumitomo Mitsui Financial Group Inc. |
249,600 | 12,261,858 |
Security | Shares | Value | ||||||
Japan (continued) | ||||||||
Sumitomo Realty & Development Co. Ltd. |
36,900 | $ | 957,980 | |||||
Sundrug Co. Ltd. |
7,700 | 208,696 | ||||||
TDK Corp. |
41,600 | 1,537,963 | ||||||
TechnoPro Holdings Inc. |
20,800 | 452,053 | ||||||
Terumo Corp. |
41,600 | 1,101,187 | ||||||
TIS Inc. |
20,800 | 457,375 | ||||||
Tokio Marine Holdings Inc. |
311,200 | 7,205,427 | ||||||
Tokyo Tatemono Co. Ltd. |
41,600 | 575,169 | ||||||
Unicharm Corp. |
18,500 | 654,118 | ||||||
USS Co. Ltd. |
41,600 | 687,704 | ||||||
Valor Holdings Co. Ltd. |
21,000 | 307,085 | ||||||
Yakult Honsha Co. Ltd. |
20,800 | 505,168 | ||||||
Yamaguchi Financial Group Inc. |
41,600 | 364,167 | ||||||
Yamato Holdings Co. Ltd. |
21,200 | 345,056 | ||||||
|
|
|||||||
115,953,254 | ||||||||
Malaysia — 0.0% | ||||||||
Allianz Malaysia Bhd |
21,000 | 71,114 | ||||||
|
|
|||||||
Mexico — 0.4% | ||||||||
Arca Continental SAB de CV |
104,000 | 944,549 | ||||||
Bolsa Mexicana de Valores SAB de CV |
166,400 | 312,319 | ||||||
Grupo Bimbo SAB de CV, Series A |
124,800 | 601,675 | ||||||
Orbia Advance Corp. SAB de CV |
270,400 | 561,824 | ||||||
|
|
|||||||
2,420,367 | ||||||||
Netherlands — 1.2% | ||||||||
IMCD NV |
5,824 | 736,356 | ||||||
NN Group NV |
127,088 | 4,074,210 | ||||||
Wolters Kluwer NV |
22,880 | 2,770,205 | ||||||
|
|
|||||||
7,580,771 | ||||||||
New Zealand — 0.2% | ||||||||
EBOS Group Ltd. |
24,752 | 507,063 | ||||||
Mainfreight Ltd. |
11,440 | 446,677 | ||||||
Summerset Group Holdings Ltd. |
33,488 | 204,556 | ||||||
|
|
|||||||
1,158,296 | ||||||||
Norway — 0.1% | ||||||||
Borregaard ASA |
9,984 | 146,905 | ||||||
Medistim ASA |
1,456 | 28,993 | ||||||
TOMRA Systems ASA |
16,432 | 186,732 | ||||||
|
|
|||||||
362,630 | ||||||||
Philippines — 0.1% | ||||||||
International Container Terminal Services Inc. |
185,120 | 676,291 | ||||||
|
|
|||||||
Poland — 0.0% | ||||||||
Neuca SA |
208 | 31,710 | ||||||
|
|
|||||||
Portugal — 0.0% | ||||||||
Sonae SGPS SA |
293,072 | 284,637 | ||||||
|
|
|||||||
Saudi Arabia — 0.1% | ||||||||
Mouwasat Medical Services Co. |
7,072 | 193,865 | ||||||
United Electronics Co. |
10,300 | 207,278 | ||||||
|
|
|||||||
401,143 | ||||||||
South Africa — 0.0% | ||||||||
PSG Konsult Ltd. |
214,864 | 148,661 | ||||||
|
|
|||||||
South Korea — 0.7% | ||||||||
AfreecaTV Co. Ltd. |
624 | 38,759 | ||||||
Cheil Worldwide Inc. |
23,920 | 355,157 | ||||||
CS Wind Corp. |
1,592 | 64,141 | ||||||
Daesang Corp. |
5,724 | 79,213 |
50 |
2 0 2 3 I S H A R E S S E M I - 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 (unaudited) (continued) September 30, 2023 |
iShares® International Dividend Growth ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
South Korea (continued) | ||||||||
Hyundai Home Shopping Network Corp. |
776 | $ | 24,039 | |||||
KIWOOM Securities Co. Ltd. |
2,912 | 203,483 | ||||||
Kolmar BNH Co. Ltd. |
4,160 | 51,032 | ||||||
Korea Zinc Co. Ltd. |
3,744 | 1,402,435 | ||||||
Kumho Petrochemical Co. Ltd. |
3,744 | 371,498 | ||||||
LEENO Industrial Inc. |
1,040 | 118,347 | ||||||
NAVER Corp. |
4,784 | 715,278 | ||||||
NICE Information Service Co. Ltd. |
9,152 | 67,012 | ||||||
Park Systems Corp. |
160 | 19,317 | ||||||
Samsung Electro-Mechanics Co. Ltd. |
4,411 | 448,221 | ||||||
SK Gas Ltd. |
208 | 23,082 | ||||||
Youngone Corp. |
3,744 | 133,822 | ||||||
Youngone Holdings Co. Ltd. |
776 | 46,223 | ||||||
|
|
|||||||
4,161,059 | ||||||||
Spain — 2.7% | ||||||||
Iberdrola SA |
1,421,070 | 15,893,883 | ||||||
Vidrala SA |
1,951 | 169,378 | ||||||
Viscofan SA |
6,864 | 419,052 | ||||||
|
|
|||||||
16,482,313 | ||||||||
Sweden — 0.6% | ||||||||
AAK AB |
12,064 | 217,071 | ||||||
Assa Abloy AB, Class B |
91,728 | 1,993,118 | ||||||
Atrium Ljungberg AB, Class B |
5,068 | 82,475 | ||||||
Bravida Holding AB(a) |
42,016 | 309,245 | ||||||
Castellum AB |
65,091 | 659,797 | ||||||
Catena AB |
3,536 | 122,693 | ||||||
Lifco AB, Class B |
8,320 | 145,545 | ||||||
NP3 Fastigheter AB |
2,912 | 42,023 | ||||||
Platzer Fastigheter Holding AB, Class B |
8,944 | 55,012 | ||||||
|
|
|||||||
3,626,979 | ||||||||
Switzerland — 12.2% | ||||||||
Chocoladefabriken Lindt & Spruengli AG, Participation Certificates, NVS |
57 | 633,415 | ||||||
Chocoladefabriken Lindt & Spruengli AG, Registered |
6 | 656,974 | ||||||
Coca-Cola HBC AG, Class DI |
32,864 | 898,625 | ||||||
DKSH Holding AG |
5,824 | 393,947 | ||||||
Geberit AG, Registered |
5,200 | 2,593,123 | ||||||
Givaudan SA, Registered |
986 | 3,210,249 | ||||||
Logitech International SA, Registered |
13,728 | 944,465 | ||||||
Nestle SA, Registered |
163,280 | 18,482,642 | ||||||
Novartis AG, Registered |
194,272 | 19,840,734 | ||||||
Partners Group Holding AG |
4,368 | 4,903,492 | ||||||
Roche Holding AG, Bearer |
4,784 | 1,405,476 | ||||||
Roche Holding AG, NVS |
66,560 | 18,170,949 | ||||||
Siegfried Holding AG, Registered |
86 | 73,455 | ||||||
Sika AG, Registered |
10,400 | 2,634,952 | ||||||
Tecan Group AG, Registered |
644 | 216,462 | ||||||
Temenos AG, Registered |
5,824 | 407,332 | ||||||
VZ Holding AG |
1,456 | 151,636 | ||||||
|
|
|||||||
75,617,928 | ||||||||
Taiwan — 0.7% | ||||||||
Advantech Co. Ltd. |
53,893 | 577,066 | ||||||
ASPEED Technology Inc. |
2,000 | 172,285 | ||||||
Lotes Co. Ltd. |
8,155 | 208,403 | ||||||
Parade Technologies Ltd. |
15,000 | 459,119 | ||||||
Silergy Corp. |
44,000 | 417,069 | ||||||
Sinbon Electronics Co. Ltd. |
22,000 | 220,527 | ||||||
Unimicron Technology Corp. |
335,000 | 1,807,412 |
Security | Shares | Value | ||||||
Taiwan (continued) | ||||||||
Voltronic Power Technology Corp. |
11,000 | $ | 541,716 | |||||
|
|
|||||||
4,403,597 | ||||||||
Turkey — 0.0% | ||||||||
Aselsan Elektronik Sanayi Ve Ticaret AS |
21,016 | 31,236 | ||||||
Tofas Turk Otomobil Fabrikasi AS |
13,728 | 147,759 | ||||||
|
|
|||||||
178,995 | ||||||||
United Kingdom — 11.6% | ||||||||
Ashtead Group PLC |
35,360 | 2,144,323 | ||||||
BAE Systems PLC |
420,784 | 5,113,300 | ||||||
British American Tobacco PLC |
567,008 | 17,803,302 | ||||||
Bunzl PLC |
39,104 | 1,392,641 | ||||||
Chemring Group PLC |
35,984 | 121,834 | ||||||
Clarkson PLC |
4,992 | 166,582 | ||||||
Cranswick PLC |
6,448 | 278,597 | ||||||
Croda International PLC |
15,600 | 931,813 | ||||||
DCC PLC |
21,514 | 1,204,559 | ||||||
Dechra Pharmaceuticals PLC |
7,488 | 345,345 | ||||||
Diageo PLC |
309,504 | 11,410,822 | ||||||
Diploma PLC |
12,480 | 455,615 | ||||||
Drax Group PLC |
84,857 | 454,307 | ||||||
EMIS Group PLC |
6,448 | 151,994 | ||||||
Games Workshop Group PLC |
7,280 | 937,374 | ||||||
Gamma Communications PLC |
6,032 | 80,312 | ||||||
GlobalData PLC, NVS(b) |
10,400 | 19,287 | ||||||
Halma PLC |
18,720 | 441,057 | ||||||
Hargreaves Lansdown PLC |
100,256 | 942,904 | ||||||
Hilton Food Group PLC |
16,640 | 145,072 | ||||||
Impax Asset Management Group PLC |
29,120 | 162,308 | ||||||
Learning Technologies Group PLC |
50,544 | 39,561 | ||||||
London Stock Exchange Group PLC |
27,248 | 2,730,954 | ||||||
National Grid PLC |
1,143,339 | 13,673,587 | ||||||
RELX PLC |
218,816 | 7,382,833 | ||||||
RWS Holdings PLC |
83,064 | 243,029 | ||||||
Sage Group PLC(The) |
113,152 | 1,361,660 | ||||||
Sirius Real Estate Ltd. |
327,808 | 343,651 | ||||||
Softcat PLC |
11,648 | 207,349 | ||||||
Spectris PLC |
12,480 | 515,943 | ||||||
Spirax-Sarco Engineering PLC |
6,032 | 698,223 | ||||||
|
|
|||||||
71,900,138 | ||||||||
|
|
|||||||
Total
Common Stocks — 99.1% |
612,482,239 | |||||||
|
|
|||||||
Preferred Stocks |
||||||||
Germany — 0.1% | ||||||||
Fuchs Petrolub SE, Preference Shares, NVS |
9,776 | 378,958 | ||||||
|
|
|||||||
South Korea — 0.0% | ||||||||
Samsung Electro-Mechanics Co. Ltd., Preference Shares |
368 | 18,406 | ||||||
|
|
|||||||
Total
Preferred Stocks — 0.1% |
397,364 | |||||||
|
|
S C H E D U L E O F I N V E S T M E N T S |
51 |
Schedule of Investments (unaudited) (continued) September 30, 2023 |
iShares® International Dividend Growth ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Rights |
||||||||
Brazil — 0.0% | ||||||||
Localiza Rent a Car SA, (Expires 11/17/23, Strike Price BRL 47.13) |
660 | $ | 2,101 | |||||
|
|
|||||||
Total
Rights — 0.0% |
2,101 | |||||||
|
|
|||||||
Total
Long-Term Investments — 99.2% |
612,881,704 | |||||||
|
|
|||||||
Short-Term Securities |
||||||||
Money Market Funds — 1.1% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 5.54%(c)(d)(e) |
813,486 | 813,730 | ||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 5.31%(c)(d) |
5,810,000 | 5,810,000 | ||||||
|
|
|||||||
Total
Short-Term Securities — 1.1% |
6,623,730 | |||||||
|
|
|||||||
Total
Investments — 100.3% |
619,505,434 | |||||||
Liabilities in Excess of Other Assets — (0.3)% |
|
(1,860,321 | ) | |||||
|
|
|||||||
Net Assets — 100.0% |
$ | 617,645,113 | ||||||
|
|
(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) |
All or a portion of this security is on loan. |
(c) |
Affiliate of the Fund. |
(d) |
Annualized 7-day yield as of period end. |
(e) |
All or a portion of this security was purchased with the cash collateral from loaned securities. |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the six months ended September 30, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Issuer | Value at 03/31/23 |
Purchases at Cost |
Proceeds from Sale |
Net Realized Gain (Loss) |
Change
in Unrealized Appreciation (Depreciation) |
Value at 09/30/23 |
Shares Held at 09/30/23 |
Income |
Capital |
|||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares |
$ | 2,609,211 | $ | — | $ | (1,795,814 | )(a) | $ | 1 | $ | 332 | $ | 813,730 | 813,486 | $ | 17,889 | (b) | $ | — | |||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares |
1,310,000 | 4,500,000 | (a) | — | — | — | 5,810,000 | 5,810,000 | 24,184 | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
$ | 1 | $ | 332 | $ | 6,623,730 | $ | 42,073 | $ | — | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) |
Represents net amount purchased (sold). |
(b) |
All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
Description | Number of Contracts |
Expiration Date |
Notional Amount (000) |
Value/ |
||||||||||||
Long Contracts |
||||||||||||||||
S&P/TSE 60 Index |
4 | 12/14/23 | $ | 693 | $ | (9,484 | ) | |||||||||
MSCI EAFE Index |
39 | 12/15/23 | 3,981 | (90,173 | ) | |||||||||||
|
|
|||||||||||||||
$ | (99,657 | ) | ||||||||||||||
|
|
52 |
2 0 2 3 I S H A R E S S E M I - 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 (unaudited) (continued) September 30, 2023 |
iShares® International Dividend Growth ETF |
Derivative Financial Instruments Categorized by Risk Exposure
As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
|
||||||||||||||||||||||||||||
Commodity Contracts |
Credit Contracts |
Equity Contracts |
Foreign |
Interest Rate Contracts |
Other Contracts |
Total | ||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Liabilities — Derivative Financial Instruments |
||||||||||||||||||||||||||||
Futures contracts |
||||||||||||||||||||||||||||
Unrealized depreciation on futures contracts(a) |
$ | — | $ | — | $ | 99,657 | $ | — | $ | — | $ | — | $ | 99,657 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 September 30, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:
|
||||||||||||||||||||||||||||
Commodity Contracts |
Credit Contracts |
Equity Contracts |
Foreign |
Interest Rate Contracts |
Other Contracts |
Total | ||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Net Realized Gain (Loss) from |
||||||||||||||||||||||||||||
Futures contracts |
$ | — | $ | — | $ | 68,478 | $ | — | $ | — | $ | — | $ | 68,478 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on |
||||||||||||||||||||||||||||
Futures contracts |
$ | — | $ | — | $ | (241,363 | ) | $ | — | $ | — | $ | — | $ | (241,363 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: |
||||
Average notional value of contracts — long
|
$
|
4,391,128
|
|
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.
|
||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
|
||||||||||||||||
Assets |
||||||||||||||||
Investments |
||||||||||||||||
Long-Term Investments |
||||||||||||||||
Common Stocks |
$ | 130,101,826 | $ | 482,380,413 | $ | — | $ | 612,482,239 | ||||||||
Preferred Stocks |
— | 397,364 | — | 397,364 | ||||||||||||
Rights |
2,101 | — | — | 2,101 | ||||||||||||
Short-Term Securities |
||||||||||||||||
Money Market Funds |
6,623,730 | — | — | 6,623,730 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 136,727,657 | $ | 482,777,777 | $ | — | $ | 619,505,434 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Derivative Financial Instruments(a) |
||||||||||||||||
Liabilities |
||||||||||||||||
Equity Contracts |
$ | (99,657 | ) | $ | — | $ | — | $ | (99,657 | ) | ||||||
|
|
|
|
|
|
|
|
(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 |
53 |
Schedule of Investments (unaudited) September 30, 2023 |
iShares® Latin America 40 ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
||||||||
Brazil — 41.0% |
||||||||
Ambev SA, ADR |
14,338,775 | $ | 36,994,041 | |||||
B3 SA - Brasil, Bolsa, Balcao |
18,915,427 | 46,248,540 | ||||||
Banco do Brasil SA |
4,657,208 | 43,713,297 | ||||||
CCR SA |
3,207,736 | 8,225,864 | ||||||
Centrais Eletricas Brasileiras SA |
3,360,424 | 24,662,252 | ||||||
Itausa SA |
226,421 | 407,657 | ||||||
Localiza Rent a Car SA |
2,757,529 | 32,125,593 | ||||||
Lojas Renner SA |
3,142,952 | 8,378,621 | ||||||
Magazine Luiza SA(a) |
9,404,913 | 3,966,620 | ||||||
Natura & Co.. Holding SA(a) |
2,739,549 | 7,935,430 | ||||||
NU Holdings Ltd.(a) |
7,729,627 | 56,039,796 | ||||||
Petroleo Brasileiro SA, ADR |
6,048,170 | 90,662,068 | ||||||
Rede D’Or Sao Luiz SA(b) |
3,349,649 | 16,933,002 | ||||||
Telefonica Brasil SA, ADR NVS |
1,138,528 | 9,734,414 | ||||||
Vale SA, Class B, ADR |
11,803,715 | 158,169,781 | ||||||
WEG SA |
4,775,378 | 34,457,622 | ||||||
|
|
|||||||
578,654,598 | ||||||||
Chile — 6.2% |
||||||||
Banco de Chile |
141,321,223 | 14,378,169 | ||||||
Banco Santander Chile, ADR |
503,998 | 9,243,323 | ||||||
Cencosud SA |
4,155,218 | 7,878,853 | ||||||
Empresas CMPC SA |
3,569,584 | 6,571,987 | ||||||
Empresas COPEC SA |
1,183,097 | 8,387,454 | ||||||
Enel Americas SA(a) |
62,771,997 | 7,206,493 | ||||||
Falabella SA |
2,520,497 | 5,631,933 | ||||||
Sociedad Quimica y Minera de Chile SA, ADR |
464,252 | 27,701,917 | ||||||
|
|
|||||||
87,000,129 | ||||||||
Colombia — 1.7% |
||||||||
Bancolombia SA, ADR |
368,409 | 9,829,152 | ||||||
Ecopetrol SA, ADR |
800,232 | 9,266,686 | ||||||
Interconexion Electrica SA ESP |
1,433,511 | 5,242,089 | ||||||
|
|
|||||||
24,337,927 | ||||||||
Mexico — 26.2% |
||||||||
America Movil SAB de CV |
67,691,126 | 58,611,912 | ||||||
Cemex SAB de CV, NVS(a) |
49,206,311 | 32,103,041 | ||||||
Fibra Uno Administracion SA de CV |
9,166,536 | 15,279,752 | ||||||
Fomento Economico Mexicano SAB de CV |
5,971,415 | 65,215,287 | ||||||
Grupo Bimbo SAB de CV, Series A |
4,882,159 | 23,537,455 | ||||||
Grupo Financiero Banorte SAB de CV, Class O |
8,060,829 | 67,580,991 | ||||||
Grupo Mexico SAB de CV, Series B |
10,122,468 | 47,912,918 | ||||||
Wal-Mart de Mexico SAB de CV |
15,892,966 | 59,823,760 | ||||||
|
|
|||||||
370,065,116 | ||||||||
Peru — 3.5% |
||||||||
Credicorp Ltd. |
220,897 | 28,268,189 | ||||||
Southern Copper Corp. |
276,439 | 20,813,092 | ||||||
|
|
|||||||
49,081,281 | ||||||||
|
|
|||||||
Total
Common Stocks — 78.6% |
1,109,139,051 | |||||||
|
|
Security | Shares | Value | ||||||
Preferred Stocks |
||||||||
Brazil — 20.1% |
||||||||
Banco Bradesco SA, Preference Shares, ADR(c) |
17,266,921 | $ | 49,210,725 | |||||
Gerdau SA, Preference Shares, ADR |
3,759,489 | 17,932,763 | ||||||
Itau Unibanco Holding SA, Preference Shares, ADR |
15,752,058 | 84,588,551 | ||||||
Itausa SA, Preference Shares, NVS |
16,982,284 | 30,575,578 | ||||||
Petroleo Brasileiro SA, Preference Shares, ADR |
7,466,175 | 102,361,259 | ||||||
|
|
|||||||
284,668,876 | ||||||||
|
|
|||||||
Total
Preferred Stocks — 20.1% |
284,668,876 | |||||||
|
|
|||||||
Rights | ||||||||
Brazil — 0.0% |
||||||||
Localiza
Rent a Car
SA, |
20,158 | 64,165 | ||||||
|
|
|||||||
Total
Rights — 0.0% |
64,165 | |||||||
|
|
|||||||
Total
Long-Term Investments — 98.7% |
|
1,393,872,092 | ||||||
|
|
|||||||
Short-Term Securities | ||||||||
Money Market Funds — 0.0% |
||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 5.54%(d)(e)(f) |
162,024 | 162,072 | ||||||
|
|
|||||||
Total
Short-Term Securities — 0.0% |
162,072 | |||||||
|
|
|||||||
Total
Investments — 98.7% |
1,394,034,164 | |||||||
Other Assets Less Liabilities — 1.3% |
17,697,948 | |||||||
|
|
|||||||
Net Assets — 100.0% |
$ | 1,411,732,112 | ||||||
|
|
(a) |
Non-income producing security. |
(b) |
Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
(c) |
All or a portion of this security is on loan. |
(d) |
Affiliate of the Fund. |
(e) |
Annualized 7-day yield as of period end. |
(f) |
All or a portion of this security was purchased with the cash collateral from loaned securities. |
54 |
2 0 2 3 I S H A R E S S E M I - 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 (unaudited) (continued) September 30, 2023 |
iShares® Latin America 40 ETF |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the six months ended September 30, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
|
||||||||||||||||||||||||||||||||||||
Affiliated Issuer | Value at 03/31/23 |
Purchases at Cost |
Proceeds from Sale |
Net Realized Gain (Loss) |
Change
in Unrealized Appreciation (Depreciation) |
Value at 09/30/23 |
Shares Held at 09/30/23 |
Income |
Capital Gain |
|||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares |
$ | 28,498,843 | $ | — | $ | (28,338,163 | )(a) | $ | (3,209 | ) | $ | 4,601 | $ | 162,072 | 162,024 | $ | 11,509 | (b) | $ | — | ||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares(c) |
6,620,000 | — | (6,620,000 | )(a) | — | — | — | — | 50,973 | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
$ | (3,209 | ) | $ | 4,601 | $ | 162,072 | $ | 62,482 | $ | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) |
Represents net amount purchased (sold). |
(b) |
All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
(c) |
As of period end, the entity is no longer held. |
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
|
||||||||||||||||
Description | Number of Contracts |
Expiration Date |
Notional Amount (000) |
Value/ |
||||||||||||
|
||||||||||||||||
Long Contracts |
||||||||||||||||
Bclear MSCI Brazil Index |
200 | 12/15/23 | $ | 10,832 | $ | 3,569 | ||||||||||
Mexican BOLSA Index |
178 | 12/15/23 | 5,274 | (71,830 | ) | |||||||||||
|
|
|||||||||||||||
$ | (68,261 | ) | ||||||||||||||
|
|
Derivative Financial Instruments Categorized by Risk Exposure
As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
|
||||||||||||||||||||||||||||
Commodity Contracts |
Credit Contracts |
Equity Contracts |
Foreign Currency Exchange Contracts |
Interest Rate Contracts |
Other Contracts |
Total | ||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Assets — Derivative Financial Instruments |
||||||||||||||||||||||||||||
Futures contracts |
||||||||||||||||||||||||||||
Unrealized appreciation on futures contracts(a) |
$ | — | $ | — | $ | 3,569 | $ | — | $ | — | $ | — | $ | 3,569 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Liabilities — Derivative Financial Instruments |
||||||||||||||||||||||||||||
Futures contracts |
||||||||||||||||||||||||||||
Unrealized depreciation on futures contracts(a) |
$ | — | $ | — | $ | 71,830 | $ | — | $ | — | $ | — | $ | 71,830 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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). |
S C H E D U L E O F I N V E S T M E N T S |
55 |
Schedule of Investments (unaudited) (continued) September 30, 2023 |
iShares® Latin America 40 ETF |
For the period ended September 30, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:
|
||||||||||||||||||||||||||||
Commodity Contracts |
Credit Contracts |
Equity Contracts |
Foreign Currency Exchange Contracts |
Interest Rate Contracts |
Other Contracts |
Total | ||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Net Realized Gain (Loss) from |
||||||||||||||||||||||||||||
Futures contracts |
$ | — | $ | — | $ | 366,770 | $ | — | $ | — | $ | — | $ | 366,770 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on |
||||||||||||||||||||||||||||
Futures contracts |
$ | — | $ | — | $ | (187,698 | ) | $ | — | $ | — | $ | — | $ | (187,698 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: |
||||
Average notional value of contracts — long |
$ | 14,774,826 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.
|
||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
|
||||||||||||||||
Assets |
||||||||||||||||
Investments |
||||||||||||||||
Long-Term Investments |
||||||||||||||||
Common Stocks |
$ | 1,081,514,799 | $ | 27,624,252 | $ | — | $ | 1,109,139,051 | ||||||||
Preferred Stocks |
284,668,876 | — | — | 284,668,876 | ||||||||||||
Rights |
64,165 | — | — | 64,165 | ||||||||||||
Short-Term Securities |
||||||||||||||||
Money Market Funds |
162,072 | — | — | 162,072 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 1,366,409,912 | $ | 27,624,252 | $ | — | $ | 1,394,034,164 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Derivative Financial Instruments(a) |
||||||||||||||||
Assets |
||||||||||||||||
Equity Contracts |
$ | 3,569 | $ | — | $ | — | $ | 3,569 | ||||||||
Liabilities |
||||||||||||||||
Equity Contracts |
(71,830 | ) | — | — | (71,830 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | (68,261 | ) | $ | — | $ | — | (68,261 | ) | ||||||||
|
|
|
|
|
|
|
|
(a) |
Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument. |
See notes to financial statements.
56 |
2 0 2 3 I S H A R E S S E M I - 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 |
Statements of Assets and Liabilities (unaudited)
September 30, 2023
iShares Asia 50 ETF |
iShares and Tech ETF |
iShares Emerging Markets |
iShares Europe ETF |
|||||||||||||
|
||||||||||||||||
ASSETS |
||||||||||||||||
Investments, at value — unaffiliated(a)(b) |
$ | 1,497,593,677 | $ | 7,203,604 | $ | 20,515,087 | $ | 1,596,851,002 | ||||||||
Investments, at value — affiliated(c) |
6,684,913 | 2,339,263 | 706,084 | 9,258,618 | ||||||||||||
Cash |
3,927 | 6,880 | 11,490 | 11,366 | ||||||||||||
Cash pledged for futures contracts |
274,000 | 1,365 | 16,000 | 1 | ||||||||||||
Foreign currency collateral pledged for futures contracts |
— | — | — | 91,497 | ||||||||||||
Foreign currency, at value(d) |
1,269,094 | 3,071 | 772 | 808,226 | ||||||||||||
Receivables: |
||||||||||||||||
Investments sold |
— | — | 1,304,187 | — | ||||||||||||
Securities lending income — affiliated |
2,989 | 3,868 | 297 | 1,532 | ||||||||||||
Dividends — unaffiliated |
2,627,251 | 771 | 115,654 | 1,493,410 | ||||||||||||
Dividends — affiliated |
3,322 | 21 | 124 | 10,924 | ||||||||||||
Tax reclaims |
— | — | — | 3,732,033 | ||||||||||||
Variation margin on futures contracts |
30,938 | — | 1,760 | 305 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total assets |
1,508,490,111 | 9,558,843 | 22,671,455 | 1,612,258,914 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
LIABILITIES |
||||||||||||||||
Collateral on securities loaned, at value |
5,373,157 | 2,329,009 | 697,451 | 6,539,000 | ||||||||||||
Payables: |
||||||||||||||||
Investments purchased |
— | — | 1,264,043 | — | ||||||||||||
Investment advisory fees |
636,139 | 2,976 | 10,285 | 793,872 | ||||||||||||
IRS compliance fee for foreign withholding tax claims |
— | — | — | 6,096,697 | ||||||||||||
Professional fees |
— | — | — | 4,706 | ||||||||||||
Variation margin on futures contracts |
— | 392 | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total liabilities |
6,009,296 | 2,332,377 | 1,971,779 | 13,434,275 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Commitments and contingent liabilities |
||||||||||||||||
NET ASSETS |
$ | 1,502,480,815 | $ | 7,226,466 | $ | 20,699,676 | $ | 1,598,824,639 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
NET ASSETS CONSIST OF |
||||||||||||||||
Paid-in capital |
$ | 1,830,428,049 | $ | 10,141,856 | $ | 55,561,885 | $ | 2,110,987,184 | ||||||||
Accumulated loss |
(327,947,234 | ) | (2,915,390 | ) | (34,862,209 | ) | (512,162,545 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
NET ASSETS |
$ | 1,502,480,815 | $ | 7,226,466 | $ | 20,699,676 | $ | 1,598,824,639 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
NET ASSET VALUE |
||||||||||||||||
Shares outstanding |
27,000,000 | 450,000 | 1,000,000 | 33,500,000 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net asset value |
$ | 55.65 | $ | 16.06 | $ | 20.70 | $ | 47.73 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Shares authorized |
Unlimited | Unlimited | Unlimited | Unlimited | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Par value |
None | None | None | None | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
(a) Investments, at cost — unaffiliated |
$ | 1,654,764,778 | $ | 6,873,114 | $ | 20,461,291 | $ | 1,733,571,431 | ||||||||
(b) Securities loaned, at value |
$ | 5,112,308 | $ | 2,231,589 | $ | 672,407 | $ | 6,267,917 | ||||||||
(c) Investments, at cost — affiliated |
$ | 6,684,376 | $ | 2,338,939 | $ | 705,878 | $ | 9,258,178 | ||||||||
(d) Foreign currency, at cost |
$ | 1,278,483 | $ | 3,098 | $ | 981 | $ | 766,270 |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S |
57 |
Statement of Assets and Liabilities (unaudited) (continued)
September 30, 2023
iShares |
iShares India 50 ETF |
iShares International Developed Property ETF |
iShares International Developed Small Cap Value Factor ETF |
|||||||||||||||||
|
||||||||||||||||||||
ASSETS |
||||||||||||||||||||
Investments, at value — unaffiliated(a)(b) |
$ | 5,565,260 | $ | 662,566,731 | $ | 37,422,845 | $ | 154,751,665 | ||||||||||||
Investments, at value — affiliated(c) |
247,225 | 11,660,000 | 943,499 | 2,304,638 | ||||||||||||||||
Cash |
6,381 | 8,563 | 972 | 1,258 | ||||||||||||||||
Cash pledged for futures contracts |
— | 146,000 | 12,000 | 56,000 | ||||||||||||||||
Foreign currency collateral pledged for futures contracts |
— | — | 4,476 | — | ||||||||||||||||
Foreign currency, at value(d) |
928 | 106 | 48,018 | 304,232 | ||||||||||||||||
Receivables: |
||||||||||||||||||||
Investments sold |
2,420 | 1,366,284 | 2,578 | — | ||||||||||||||||
Securities lending income — affiliated |
19 | — | 718 | 1,316 | ||||||||||||||||
Dividends — unaffiliated |
4,152 | — | 171,116 | 770,765 | ||||||||||||||||
Dividends — affiliated |
6 | 49,141 | 201 | 181 | ||||||||||||||||
Tax reclaims |
263 | — | 35,332 | 208,866 | ||||||||||||||||
Variation margin on futures contracts |
— | 10,296 | 162 | — | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total assets |
5,826,654 | 675,807,121 | 38,641,917 | 158,398,921 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
LIABILITIES |
||||||||||||||||||||
Collateral on securities loaned, at value |
247,250 | — | 554,101 | 2,253,982 | ||||||||||||||||
Payables: |
||||||||||||||||||||
Investments purchased |
— | 1,135,773 | — | — | ||||||||||||||||
Deferred foreign capital gain tax |
— | 9,477,594 | 3,343 | — | ||||||||||||||||
Foreign taxes |
— | 106 | 330 | — | ||||||||||||||||
Income distributions |
— | — | 380,795 | — | ||||||||||||||||
Investment advisory fees |
2,193 | 487,496 | 15,400 | 39,231 | ||||||||||||||||
Variation margin on futures contracts |
— | — | — | 2,542 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total liabilities |
249,443 | 11,100,969 | 953,969 | 2,295,755 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Commitments and contingent liabilities |
||||||||||||||||||||
NET ASSETS |
$ | 5,577,211 | $ | 664,706,152 | $ | 37,687,948 | $ | 156,103,166 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
NET ASSETS CONSIST OF |
||||||||||||||||||||
Paid-in capital |
$ | 5,104,279 | $ | 334,417,415 | $ | 95,402,876 | $ | 173,512,227 | ||||||||||||
Accumulated earnings (loss) |
472,932 | 330,288,737 | (57,714,928 | ) | (17,409,061 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
NET ASSETS |
$ | 5,577,211 | $ | 664,706,152 | $ | 37,687,948 | $ | 156,103,166 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
NET ASSETVALUE |
||||||||||||||||||||
Shares outstanding |
200,000 | 14,700,000 | 1,500,000 | 5,100,000 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net asset value |
$ | 27.89 | $ | 45.22 | $ | 25.13 | $ | 30.61 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Shares authorized |
Unlimited | Unlimited | Unlimited | Unlimited | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Par value |
None | None | None | None | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
(a) Investments, at cost — unaffiliated |
$ | 5,256,685 | $ | 601,080,889 | $ | 60,523,204 | $ | 169,314,406 | ||||||||||||
(b) Securities loaned, at value |
$ | 252,126 | $ | — | $ | 532,236 | $ | 2,080,883 | ||||||||||||
(c) Investments, at cost — affiliated |
$ | 247,249 | $ | 11,660,000 | $ | 943,300 | $ | 2,304,702 | ||||||||||||
(d) Foreign currency, at cost |
$ | 958 | $ | 106 | $ | 47,973 | $ | 306,991 |
See notes to financial statements.
58 |
2 0 2 3 I S H A R E S S E M I - 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 |
Statements of Assets and Liabilities (unaudited) (continued)
September 30, 2023
iShares International Dividend Growth ETF |
iShares Latin America 40 ETF |
|||||||
|
||||||||
ASSETS |
||||||||
Investments, at value — unaffiliated(a)(b) |
$ | 612,881,704 | $ | 1,393,872,092 | ||||
Investments, at value — affiliated(c) |
6,623,730 | 162,072 | ||||||
Cash |
26,867 | 3,912,197 | ||||||
Cash pledged for futures contracts |
140,000 | 1,664,000 | ||||||
Foreign currency collateral pledged for futures contracts |
38,284 | 545,690 | ||||||
Foreign currency, at value(d) |
518,774 | 5,323,905 | ||||||
Receivables: |
||||||||
Investments sold |
— | 1,227 | ||||||
Securities lending income — affiliated |
107 | 1,635 | ||||||
Capital shares sold |
— | 669,445 | ||||||
Dividends — unaffiliated |
2,630,628 | 11,369,019 | ||||||
Dividends — affiliated |
6,264 | 7,502 | ||||||
Tax reclaims |
676,377 | — | ||||||
Variation margin on futures contracts |
— | 132,509 | ||||||
|
|
|
|
|||||
Total assets |
623,542,735 | 1,417,661,293 | ||||||
|
|
|
|
|||||
LIABILITIES |
||||||||
Bank borrowings |
390 | — | ||||||
Collateral on securities loaned, at value |
813,824 | 160,800 | ||||||
Payables: |
||||||||
Investments purchased |
223,247 | 5,210,242 | ||||||
Deferred foreign capital gain tax |
152,874 | — | ||||||
Foreign taxes |
7,930 | — | ||||||
Income distributions |
4,605,078 | — | ||||||
Investment advisory fees |
78,431 | 558,139 | ||||||
Variation margin on futures contracts |
15,848 | — | ||||||
|
|
|
|
|||||
Total liabilities |
5,897,622 | 5,929,181 | ||||||
|
|
|
|
|||||
Commitments and contingent liabilities |
||||||||
NET ASSETS |
$ | 617,645,113 | $ | 1,411,732,112 | ||||
|
|
|
|
|||||
NET ASSETS CONSIST OF |
||||||||
Paid-in capital |
$ | 649,658,183 | $ | 2,631,616,484 | ||||
Accumulated loss |
(32,013,070 | ) | (1,219,884,372 | ) | ||||
|
|
|
|
|||||
NET ASSETS |
$ | 617,645,113 | $ | 1,411,732,112 | ||||
|
|
|
|
|||||
NET ASSETVALUE |
||||||||
Shares outstanding |
10,400,000 | 55,250,000 | ||||||
|
|
|
|
|||||
Net asset value |
$ | 59.39 | $ | 25.55 | ||||
|
|
|
|
|||||
Shares authorized |
Unlimited | Unlimited | ||||||
|
|
|
|
|||||
Par value |
None | None | ||||||
|
|
|
|
|||||
(a) Investments, at cost — unaffiliated |
$ | 610,664,134 | $ | 1,500,253,187 | ||||
(b) Securities loaned, at value |
$ | 745,374 | $ | 152,760 | ||||
(c) Investments, at cost — affiliated |
$ | 6,623,825 | $ | 162,072 | ||||
(d) Foreign currency, at cost |
$ | 520,919 | $ | 5,336,120 |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S |
59 |
Statements of Operations (unaudited)
Six Months Ended September 30, 2023
iShares Asia 50 ETF |
iShares Blockchain and Tech ETF |
iShares Emerging Markets Infrastructure ETF |
iShares Europe ETF |
|||||||||||||
|
||||||||||||||||
INVESTMENT INCOME |
||||||||||||||||
Dividends — unaffiliated |
$ | 32,387,229 | $ | 20,842 | $ | 545,599 | $ | 41,215,796 | ||||||||
Dividends — affiliated |
30,705 | 150 | 3,824 | 86,476 | ||||||||||||
Securities lending income — affiliated — net |
16,549 | 51,058 | 2,241 | 23,535 | ||||||||||||
Other income — unaffiliated |
— | — | — | 44,481 | ||||||||||||
Foreign taxes withheld |
(3,345,555 | ) | (1,584 | ) | (29,511 | ) | (3,967,984 | ) | ||||||||
Foreign withholding tax claims |
— | — | — | 948,683 | ||||||||||||
IRS compliance fee for foreign withholding tax claims |
— | — | — | 186,376 | ||||||||||||
Other foreign taxes |
(236 | ) | — | — | — | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total investment income |
29,088,692 | 70,466 | 522,153 | 38,537,363 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
EXPENSES |
||||||||||||||||
Investment advisory |
4,023,363 | 18,038 | 67,592 | 5,225,721 | ||||||||||||
Commitment costs |
9,738 | — | 134 | — | ||||||||||||
Professional |
— | — | — | 108,602 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total expenses |
4,033,101 | 18,038 | 67,726 | 5,334,323 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net investment income |
25,055,591 | 52,428 | 454,427 | 33,203,040 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
REALIZED AND UNREALIZED GAIN (LOSS) |
||||||||||||||||
Net realized gain (loss) from: |
||||||||||||||||
Investments — unaffiliated |
(43,251,343 | ) | (94,982 | ) | (254,984 | ) | (24,208,398 | ) | ||||||||
Investments — affiliated |
2,201 | (205 | ) | (298 | ) | 1,531 | ||||||||||
Foreign currency transactions |
(268,115 | ) | (384 | ) | 821 | (14,927 | ) | |||||||||
Futures contracts |
35,085 | 1,134 | 13,238 | 143,997 | ||||||||||||
In-kind redemptions — unaffiliated(a) |
(1,094,712 | ) | — | 317,373 | 43,337,418 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
(44,576,884 | ) | (94,437 | ) | 76,150 | 19,259,621 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net change in unrealized appreciation (depreciation) on: |
||||||||||||||||
Investments — unaffiliated |
(134,721,626 | ) | (340,894 | ) | (1,133,623 | ) | (93,197,711 | ) | ||||||||
Investments — affiliated |
537 | 193 | 177 | (1,730 | ) | |||||||||||
Foreign currency translations |
39,327 | (31 | ) | (193 | ) | (94,780 | ) | |||||||||
Futures contracts |
(230,299 | ) | (1,143 | ) | (1,986 | ) | (210,879 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
(134,912,061 | ) | (341,875 | ) | (1,135,625 | ) | (93,505,100 | ) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Net realized and unrealized loss |
(179,488,945 | ) | (436,312 | ) | (1,059,475 | ) | (74,245,479 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS |
$ | (154,433,354 | ) | $ | (383,884 | ) | $ | (605,048 | ) | $ | (41,042,439 | ) | ||||
|
|
|
|
|
|
|
|
(a) |
See Note 2 of the Notes to Financial Statements. |
See notes to financial statements.
60 |
2 0 2 3 I S H A R E S S E M I - 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 |
Statements of Operations (unaudited) (continued)
Six Months Ended September 30, 2023
iShares |
iShares India 50 ETF |
iShares International Developed Property ETF |
iShares International Developed Small Cap Value Factor ETF |
|||||||||||||||||
|
||||||||||||||||||||
INVESTMENT INCOME |
||||||||||||||||||||
Dividends — unaffiliated |
$ | 21,886 | $ | 6,014,673 | $ | 1,028,366 | $ | 4,429,024 | ||||||||||||
Dividends — affiliated |
8 | 257,409 | 608 | 2,581 | ||||||||||||||||
Securities lending income — affiliated — net |
115 | — | 6,588 | 20,617 | ||||||||||||||||
Foreign taxes withheld |
(1,069 | ) | (1,410,980 | ) | (93,181 | ) | (439,405 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total investment income |
20,940 | 4,861,102 | 942,381 | 4,012,817 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
EXPENSES |
||||||||||||||||||||
Investment advisory |
13,264 | 2,755,543 | 99,935 | 282,332 | ||||||||||||||||
Commitment costs |
— | 3,508 | — | — | ||||||||||||||||
Professional |
— | — | — | 4,862 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total expenses |
13,264 | 2,759,051 | 99,935 | 287,194 | ||||||||||||||||
Less: |
||||||||||||||||||||
Investment advisory fees waived |
— | — | — | (39,797 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total expenses after fees waived |
13,264 | 2,759,051 | 99,935 | 247,397 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net investment income |
7,676 | 2,102,051 | 842,446 | 3,765,420 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) |
||||||||||||||||||||
Net realized gain (loss) from: |
||||||||||||||||||||
Investments — unaffiliated(a) |
152,850 | (1,667,078 | ) | (1,064,907 | ) | (1,362,710 | ) | |||||||||||||
Investments — affiliated |
(31 | ) | — | 53 | 304 | |||||||||||||||
Foreign currency transactions |
(548 | ) | (19,512 | ) | (13,695 | ) | (42,173 | ) | ||||||||||||
Futures contracts |
— | 86,803 | 28,278 | 38,647 | ||||||||||||||||
In-kind redemptions — unaffiliated(b) |
— | — | (817,635 | ) | — | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
152,271 | (1,599,787 | ) | (1,867,906 | ) | (1,365,932 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net change in unrealized appreciation (depreciation) on: |
||||||||||||||||||||
Investments — unaffiliated(c) |
74,492 | 55,315,965 | (1,009,535 | ) | (4,044,867 | ) | ||||||||||||||
Investments — affiliated |
(24 | ) | — | (82 | ) | (344 | ) | |||||||||||||
Foreign currency translations |
(85 | ) | 1,081 | (4,943 | ) | (12,939 | ) | |||||||||||||
Futures contracts |
— | (39,459 | ) | (15,634 | ) | (35,204 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
74,383 | 55,277,587 | (1,030,194 | ) | (4,093,354 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net realized and unrealized gain (loss) |
226,654 | 53,677,800 | (2,898,100 | ) | (5,459,286 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
$ | 234,330 | $ | 55,779,851 | $ | (2,055,654 | ) | $ | (1,693,866 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
(a) Net of foreign capital gain tax and capital gain tax refund, if applicable of |
$ | — | $ | (1,177,622 | ) | $ | (409 | ) | $ | — | ||||||||||
(b) See Note 2 of the Notes to Financial Statements. |
||||||||||||||||||||
(c) Net of reduction/increase in deferred foreign capital gain tax of. |
$ | — | $ | (6,914,264 | ) | $ | 160 | $ | — |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S |
61 |
Statements of Operations (unaudited) (continued)
Six Months Ended September 30, 2023
iShares International Dividend Growth ETF |
iShares Latin America 40 ETF |
|||||||
|
||||||||
INVESTMENT INCOME |
||||||||
Dividends — unaffiliated |
$ | 12,567,421 | $ | 50,191,408 | ||||
Dividends — affiliated |
24,184 | 50,973 | ||||||
Interest — unaffiliated. |
5,723 | — | ||||||
Securities lending income — affiliated — net |
17,889 | 11,509 | ||||||
Foreign taxes withheld |
(1,253,104 | ) | (3,437,137 | ) | ||||
Other foreign taxes |
(321 | ) | — | |||||
|
|
|
|
|||||
Total investment income |
11,361,792 | 46,816,753 | ||||||
|
|
|
|
|||||
EXPENSES |
||||||||
Investment advisory |
469,523 | 2,971,725 | ||||||
Interest expense |
2,355 | — | ||||||
Commitment costs |
1,578 | 6,646 | ||||||
|
|
|
|
|||||
Total expenses |
473,456 | 2,978,371 | ||||||
|
|
|
|
|||||
Net investment income |
10,888,336 | 43,838,382 | ||||||
|
|
|
|
|||||
REALIZED AND UNREALIZED GAIN (LOSS) |
||||||||
Net realized gain (loss) from: |
||||||||
Investments — unaffiliated(a) |
(866,181 | ) | (18,353,156 | ) | ||||
Investments — affiliated |
1 | (3,209 | ) | |||||
Foreign currency transactions |
(165,264 | ) | 39,224 | |||||
Futures contracts |
68,478 | 366,770 | ||||||
In-kind redemptions — unaffiliated(b) |
— | 7,797,269 | ||||||
|
|
|
|
|||||
(962,966 | ) | (10,153,102 | ) | |||||
|
|
|
|
|||||
Net change in unrealized appreciation (depreciation) on: |
||||||||
Investments — unaffiliated(c) |
(10,083,736 | ) | 32,384,421 | |||||
Investments — affiliated |
332 | 4,601 | ||||||
Foreign currency translations |
(25,030 | ) | (93,766 | ) | ||||
Futures contracts |
(241,363 | ) | (187,698 | ) | ||||
|
|
|
|
|||||
(10,349,797 | ) | 32,107,558 | ||||||
|
|
|
|
|||||
Net realized and unrealized gain (loss) |
(11,312,763 | ) | 21,954,456 | |||||
|
|
|
|
|||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
$ | (424,427 | ) | $ | 65,792,838 | |||
|
|
|
|
|||||
(a) Net of foreign capital gain tax and capital gain tax refund, if applicable of |
$ | (37,867 | ) | $ | — | |||
(b) See Note 2 of the Notes to Financial Statements. |
||||||||
(c) Net of increase in deferred foreign capital gain tax of |
$ | (132,522 | ) | $ | — |
See notes to financial statements.
62 |
2 0 2 3 I S H A R E S S E M I - 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 |
Statements of Changes in Net Assets
iShares Asia 50 ETF |
iShares Blockchain and Tech ETF |
|||||||||||||||||||
|
Six Months Ended 09/30/23 (unaudited) |
|
|
Year Ended 03/31/23 |
|
Six Months Ended 09/30/23 (unaudited) |
|
|
Period From 04/25/22 to 03/31/23 |
(a)
| ||||||||||
|
||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS |
||||||||||||||||||||
OPERATIONS |
||||||||||||||||||||
Net investment income |
$ | 25,055,591 | $ | 29,780,218 | $ | 52,428 | $ | 81,409 | ||||||||||||
Net realized loss |
(44,576,884 | ) | (55,023,332 | ) | (94,437 | ) | (3,175,291 | ) | ||||||||||||
Net change in unrealized appreciation (depreciation) |
(134,912,061 | ) | (146,764,220 | ) | (341,875 | ) | 672,269 | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net decrease in net assets resulting from operations |
(154,433,354 | ) | (172,007,334 | ) | (383,884 | ) | (2,421,613 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(b) |
||||||||||||||||||||
Decrease in net assets resulting from distributions to shareholders |
(14,106,211 | ) | (36,273,723 | ) | (76,921 | ) | (32,972 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
CAPITAL SHARE TRANSACTIONS |
||||||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions |
(4,504,173 | ) | (1,319,572 | ) | 1,157,886 | 8,983,970 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
NET ASSETS |
||||||||||||||||||||
Total increase (decrease) in net assets |
(173,043,738 | ) | (209,600,629 | ) | 697,081 | 6,529,385 | ||||||||||||||
Beginning of period |
1,675,524,553 | 1,885,125,182 | 6,529,385 | — | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
End of period |
$ | 1,502,480,815 | $ | 1,675,524,553 | $ | 7,226,466 | $ | 6,529,385 | ||||||||||||
|
|
|
|
|
|
|
|
(a) |
Commencement of operations. |
(b) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S |
63 |
Statements of Changes in Net Assets (continued)
iShares |
iShares Europe ETF |
|||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Six Months Ended |
Year Ended 03/31/23 |
Six Months Ended 09/30/23 (unaudited) |
Year Ended 03/31/23 |
|||||||||||||||||||||
|
||||||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS |
||||||||||||||||||||||||
OPERATIONS |
||||||||||||||||||||||||
Net investment income |
$ | 454,427 | $ | 583,929 | $ | 33,203,040 | $ | 54,487,262 | ||||||||||||||||
Net realized gain (loss) |
76,150 | (1,736,393 | ) | 19,259,621 | 46,082,397 | |||||||||||||||||||
Net change in unrealized appreciation (depreciation) |
(1,135,625 | ) | 590,798 | (93,505,100 | ) | (60,291,024 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Net increase (decrease) in net assets resulting from operations |
(605,048 | ) | (561,666 | ) | (41,042,439 | ) | 40,278,635 | |||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) |
||||||||||||||||||||||||
Decrease in net assets resulting from distributions to shareholders |
(235,977 | )(b) | (641,405 | ) | (40,381,805 | ) | (50,928,655 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
CAPITAL SHARE TRANSACTIONS |
||||||||||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions |
(1,072,183 | ) | 3,220,760 | (152,684,512 | ) | (100,395,818 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
NET ASSETS |
||||||||||||||||||||||||
Total increase (decrease) in net assets |
(1,913,208 | ) | 2,017,689 | (234,108,756 | ) | (111,045,838 | ) | |||||||||||||||||
Beginning of period |
22,612,884 | 20,595,195 | 1,832,933,395 | 1,943,979,233 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
End of period |
$ | 20,699,676 | $ | 22,612,884 | $ | 1,598,824,639 | $ | 1,832,933,395 | ||||||||||||||||
|
|
|
|
|
|
|
|
(a) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(b) |
A portion of the distributions from net investment income may be deemed a return of capital or net realized gain at fiscal year-end. |
See notes to financial statements.
64 |
2 0 2 3 I S H A R E S S E M I - 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 |
Statements of Changes in Net Assets (continued)
iShares Future Metaverse Tech and Communications ETF |
iShares India 50 ETF |
|||||||||||||||||||
|
Six Months Ended 09/30/23 (unaudited) |
|
|
Period From 02/14/23 to 03/31/23 |
(a)
|
|
Six Months Ended 09/30/23 (unaudited) |
|
|
Year Ended 03/31/23 |
(b)
| |||||||||
|
||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS |
||||||||||||||||||||
OPERATIONS |
||||||||||||||||||||
Net investment income |
$ | 7,676 | $ | 5,190 | $ | 2,102,051 | $ | 1,492,220 | ||||||||||||
Net realized gain (loss) |
152,271 | 6,848 | (1,599,787 | ) | 335,736,820 | |||||||||||||||
Net change in unrealized appreciation (depreciation) |
74,383 | 234,104 | 55,277,587 | (390,329,239 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net increase (decrease) in net assets resulting from operations |
234,330 | 246,142 | 55,779,851 | (53,100,199 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(c) |
||||||||||||||||||||
Decrease in net assets resulting from distributions to shareholders |
(7,540 | ) | — | (1,004,640 | )(d) | (21,001,621 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
CAPITAL SHARE TRANSACTIONS |
||||||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions |
— | 5,104,279 | 33,158,981 | (12,354,375 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
NET ASSETS |
||||||||||||||||||||
Total increase (decrease) in net assets |
226,790 | 5,350,421 | 87,934,192 | (86,456,195 | ) | |||||||||||||||
Beginning of period |
5,350,421 | — | 576,771,960 | 663,228,155 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
End of period |
$ | 5,577,211 | $ | 5,350,421 | $ | 664,706,152 | $ | 576,771,960 | ||||||||||||
|
|
|
|
|
|
|
|
(a) |
Commencement of operations. |
(b) |
Consolidated Statement of Changes in Net Assets. |
(c) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(d) |
A portion of the distributions from net investment income may be deemed a return of capital or net realized gain at fiscal year-end. |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S |
65 |
Statements of Changes in Net Assets (continued)
iShares International Developed Property ETF |
iShares International Developed Small Cap |
|||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Six Months Ended 09/30/23 (unaudited) |
Year Ended 03/31/23 |
Six Months Ended |
Year Ended 03/31/23 |
|||||||||||||||||||||
|
||||||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS |
||||||||||||||||||||||||
OPERATIONS |
||||||||||||||||||||||||
Net investment income |
$ | 842,446 | $ | 1,780,905 | $ | 3,765,420 | $ | 5,283,505 | ||||||||||||||||
Net realized loss |
(1,867,906 | ) | (2,795,992 | ) | (1,365,932 | ) | (2,515,952 | ) | ||||||||||||||||
Net change in unrealized appreciation (depreciation) |
(1,030,194 | ) | (12,829,576 | ) | (4,093,354 | ) | (9,746,404 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Net decrease in net assets resulting from operations |
(2,055,654 | ) | (13,844,663 | ) | (1,693,866 | ) | (6,978,851 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) |
||||||||||||||||||||||||
Decrease in net assets resulting from distributions to shareholders |
(766,515 | ) | (977,169 | ) | (3,428,047 | ) | (4,915,147 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
CAPITAL SHARE TRANSACTIONS |
||||||||||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions |
(2,613,284 | ) | (5,900,739 | ) | 3,224,313 | 5,713,393 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
NET ASSETS |
||||||||||||||||||||||||
Total decrease in net assets |
(5,435,453 | ) | (20,722,571 | ) | (1,897,600 | ) | (6,180,605 | ) | ||||||||||||||||
Beginning of period |
43,123,401 | 63,845,972 | 158,000,766 | 164,181,371 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
End of period |
$ | 37,687,948 | $ | 43,123,401 | $ | 156,103,166 | $ | 158,000,766 | ||||||||||||||||
|
|
|
|
|
|
|
|
(a) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
66 |
2 0 2 3 I S H A R E S S E M I - 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 |
Statements of Changes in Net Assets (continued)
iShares International Dividend Growth ETF |
iShares Latin America 40 ETF |
|||||||||||||||||||
|
|
|
|
|||||||||||||||||
Six Months Ended 09/30/23 |
Year Ended 03/31/23 |
Six Months Ended 09/30/23 |
Year Ended 03/31/23 |
|||||||||||||||||
|
||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS |
||||||||||||||||||||
OPERATIONS |
||||||||||||||||||||
Net investment income |
$ | 10,888,336 | $ | 12,584,318 | $ | 43,838,382 | $ | 123,073,780 | ||||||||||||
Net realized loss |
(962,966 | ) | (27,477,959 | ) | (10,153,102 | ) | (207,932,460 | ) | ||||||||||||
Net change in unrealized appreciation (depreciation) |
(10,349,797 | ) | 10,980,300 | 32,107,558 | (181,861,919 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net increase (decrease) in net assets resulting from operations |
(424,427 | ) | (3,913,341 | ) | 65,792,838 | (266,720,599 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) |
||||||||||||||||||||
Decrease in net assets resulting from distributions to shareholders |
(11,228,129 | ) | (11,034,484 | ) | (19,987,269 | )(b) | (138,313,795 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
CAPITAL SHARE TRANSACTIONS |
||||||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions |
33,877,998 | 288,496,363 | 362,793,536 | (330,022,276 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
NET ASSETS |
||||||||||||||||||||
Total increase (decrease) in net assets |
22,225,442 | 273,548,538 | 408,599,105 | (735,056,670 | ) | |||||||||||||||
Beginning of period |
595,419,671 | 321,871,133 | 1,003,133,007 | 1,738,189,677 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
End of period |
$ | 617,645,113 | $ | 595,419,671 | $ | 1,411,732,112 | $ | 1,003,133,007 | ||||||||||||
|
|
|
|
|
|
|
|
(a) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(b) |
A portion of the distributions from net investment income may be deemed a return of capital or net realized gain at fiscal year-end. |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S |
67 |
(For a share outstanding throughout each period)
iShares Asia 50 ETF | ||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||
Six Months Ended 09/30/23 |
Year Ended 03/31/23 |
Year Ended 03/31/22 |
Year Ended 03/31/21 |
Year Ended 03/31/20 |
Year Ended 03/31/19 |
|||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Net asset value, beginning of period |
$ | 61.83 | $ | 68.67 | $ | 90.91 | $ | 56.05 | $ | 61.05 | $ | 67.20 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net investment income(a) |
0.93 | 1.17 | 0.93 | 1.31 | 1.42 | 1.48 | ||||||||||||||||||||||
Net realized and unrealized gain (loss)(b) |
(6.58 | ) | (6.54 | ) | (21.99 | ) | 34.52 | (4.94 | ) | (6.25 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net increase (decrease) from investment operations |
(5.65 | ) | (5.37 | ) | (21.06 | ) | 35.83 | (3.52 | ) | (4.77 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Distributions from net investment income(c) |
(0.53 | ) | (1.47 | ) | (1.18 | ) | (0.97 | ) | (1.48 | ) | (1.38 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net asset value, end of period |
$ | 55.65 | $ | 61.83 | $ | 68.67 | $ | 90.91 | $ | 56.05 | $ | 61.05 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total Return(d) |
||||||||||||||||||||||||||||
Based on net asset value |
(9.20 | )%(e) | (7.77 | )% | (23.36 | )% | 64.22 | % | (6.00 | )% | (6.94 | )% | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Ratios to Average Net Assets(f) |
||||||||||||||||||||||||||||
Total expenses |
0.50 | %(g) | 0.50 | % | 0.50 | % | 0.50 | % | 0.50 | % | 0.50 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net investment income |
3.11 | %(g) | 1.95 | % | 1.12 | % | 1.66 | % | 2.32 | % | 2.43 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Supplemental Data |
||||||||||||||||||||||||||||
Net assets, end of period (000) |
$ | 1,502,481 | $ | 1,675,525 | $ | 1,885,125 | $ | 3,172,670 | $ | 1,059,289 | $ | 1,089,745 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Portfolio turnover rate(h) |
6 | % | 12 | % | 13 | % | 46 | % | 6 | % | 10 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Based on average shares outstanding. |
(b) |
The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(c) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(d) |
Where applicable, assumes the reinvestment of distributions. |
(e) |
Not annualized. |
(f) |
Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(g) |
Annualized. |
(h) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
68 |
2 0 2 3 I S H A R E S S E M I - 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 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Blockchain and Tech ETF |
||||||||
|
|
|||||||
|
Six Months Ended 09/30/23 (unaudited |
) |
|
Period From 04/25/22 to 03/31/23 |
(a)
| |||
|
||||||||
Net asset value, beginning of period |
$ | 16.32 | $ | 25.56 | ||||
|
|
|
|
|||||
Net investment income(b) |
0.13 | 0.22 | ||||||
Net realized and unrealized gain(c) |
(0.20 | ) | (9.38 | ) | ||||
|
|
|
|
|||||
Net increase from investment operations |
(0.07 | ) | (9.16 | ) | ||||
|
|
|
|
|||||
Distributions from net investment income(d) |
(0.19 | ) | (0.08 | ) | ||||
|
|
|
|
|||||
Net asset value, end of period |
$ | 16.06 | $ | 16.32 | ||||
|
|
|
|
|||||
Total Return(e) |
||||||||
Based on net asset value |
(0.45 | )%(f) | (35.71 | )%(f) | ||||
|
|
|
|
|||||
Ratios to Average Net Assets(g) |
||||||||
Total expenses |
0.47 | %(h) | 0.47 | %(h) | ||||
|
|
|
|
|||||
Net investment income |
1.37 | %(h) | 1.56 | %(h) | ||||
|
|
|
|
|||||
Supplemental Data |
||||||||
Net assets, end of period (000) |
$ | 7,226 | $ | 6,529 | ||||
|
|
|
|
|||||
Portfolio turnover rate(i) |
41 | % | 87 | % | ||||
|
|
|
|
(a) |
Commencement of operations. |
(b) |
Based on average shares outstanding. |
(c) |
The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) |
Where applicable, assumes the reinvestment of distributions. |
(f) |
Not annualized. |
(g) |
Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(h) |
Annualized. |
(i) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
F I N A N C I A L H I G H L I G H T S |
69 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Emerging Markets Infrastructure ETF | ||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||
Six Months Ended |
Year Ended 03/31/23 |
Year Ended 03/31/22 |
Year Ended 03/31/21 |
Year Ended 03/31/20 |
Year Ended 03/31/19 |
|||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Net asset value, beginning of period |
$ | 21.54 | $ | 22.88 | $ | 24.74 | $ | 19.80 | $ | 28.64 | $ | 32.07 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net investment income(a) |
0.44 | 0.57 | 0.95 | 0.65 | 0.75 | 0.75 | ||||||||||||||||||||||
Net realized and unrealized gain (loss)(b) |
(1.06 | ) | (1.27 | ) | (1.84 | ) | 4.91 | (8.94 | ) | (3.45 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net increase (decrease) from investment operations |
(0.62 | ) | (0.70 | ) | (0.89 | ) | 5.56 | (8.19 | ) | (2.70 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Distributions from net investment income(c) |
(0.22 | )(d) | (0.64 | ) | (0.97 | ) | (0.62 | ) | (0.65 | ) | (0.73 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net asset value, end of period |
$ | 20.70 | $ | 21.54 | $ | 22.88 | $ | 24.74 | $ | 19.80 | $ | 28.64 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total Return(e) |
||||||||||||||||||||||||||||
Based on net asset value |
(2.89 | )%(f) | (3.11 | )% | (3.83 | )% | 28.33 | % | (29.33 | )% | (8.35 | )% | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Ratios to Average Net Assets(g) |
||||||||||||||||||||||||||||
Total expenses |
0.60 | %(h) | 0.60 | % | 0.60 | % | 0.60 | % | 0.75 | % | 0.75 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net investment income |
4.03 | %(h) | 2.70 | % | 3.96 | % | 2.90 | % | 2.60 | % | 2.56 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Supplemental Data |
||||||||||||||||||||||||||||
Net assets, end of period (000) |
$ | 20,700 | $ | 22,613 | $ | 20,595 | $ | 16,083 | $ | 12,870 | $ | 25,773 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Portfolio turnover rate(i) |
8 | % | 26 | % | 23 | % | 27 | % | 18 | % | 25 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Based on average shares outstanding. |
(b) |
The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(c) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(d) |
A portion of the distributions from net investment income may be deemed a return of capital or net realized gain at fiscal year-end. |
(e) |
Where applicable, assumes the reinvestment of distributions. |
(f) |
Not annualized. |
(g) |
Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(h) |
Annualized. |
(i) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
70 |
2 0 2 3 I S H A R E S S E M I - 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 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Europe ETF | ||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||
Six Months Ended (unaudited) |
Year Ended 03/31/23 |
Year Ended 03/31/22 |
Year Ended 03/31/21 |
Year Ended 03/31/20 |
Year Ended 03/31/19 |
|||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Net asset value, beginning of period |
$ | 50.08 | $ | 50.17 | $ | 50.25 | $ | 35.42 | $ | 43.40 | $ | 46.48 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net investment income(a) |
0.95 | (b) | 1.45 | (b) | 1.24 | (b) | 0.85 | 1.24 | 1.42 | |||||||||||||||||||
Net realized and unrealized gain (loss)(c) |
(2.20 | ) | (0.15 | ) | 0.21 | 14.82 | (7.78 | ) | (3.16 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net increase (decrease) from investment operations |
(1.25 | ) | 1.30 | 1.45 | 15.67 | (6.54 | ) | (1.74 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Distributions from net investment income(d) |
(1.10 | ) | (1.39 | ) | (1.53 | ) | (0.84 | ) | (1.44 | ) | (1.34 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net asset value, end of period |
$ | 47.73 | $ | 50.08 | $ | 50.17 | $ | 50.25 | $ | 35.42 | $ | 43.40 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total Return(e) |
||||||||||||||||||||||||||||
Based on net asset value |
(2.56 | )%(b)(f) | 2.87 | %(b) | 2.69 | %(b) | 44.70 | % | (15.61 | )% | (3.73 | )% | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Ratios to Average Net Assets(g) |
||||||||||||||||||||||||||||
Total expenses |
0.60 | %(h) | 0.67 | % | 0.63 | % | 0.60 | % | 0.59 | % | 0.59 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total expenses excluding professional fees for foreign withholding tax claims |
0.59 | %(h) | 0.59 | % | 0.58 | % | 0.59 | % | 0.59 | % | 0.59 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net investment income |
3.75 | %(b)(h) | 3.21 | %(b) | 2.34 | %(b) | 1.94 | % | 2.84 | % | 3.23 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Supplemental Data |
||||||||||||||||||||||||||||
Net assets, end of period (000) |
$ | 1,598,825 | $ | 1,832,933 | $ | 1,943,979 | $ | 1,665,944 | $ | 1,252,107 | $ | 2,002,860 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Portfolio turnover rate(i) |
3 | % | 5 | % | 5 | % | 5 | % | 5 | % | 7 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Based on average shares outstanding. |
(b) |
Reflects the positive effect of foreign withholding tax claims, net of the associated professional fees, which resulted in the following increases for the six months ended September 30, 2023, year ended March 31, 2023 and year ended March 31, 2022 respectively: |
• |
Net investment income per share by $0.02, $0.27 and $0.18. |
• |
Total return by 0.05%, 0.56% and 0.36%. |
• |
Ratio of net investment income to average net assets by 0.09%, 0.60% and 0.34%. |
(c) |
The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) |
Where applicable, assumes the reinvestment of distributions. |
(f) |
Not annualized. |
(g) |
Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(h) |
Annualized. |
(i) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
F I N A N C I A L H I G H L I G H T S |
71 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Future Metaverse Tech and Communications ETF | ||||||||||||||||
|
Six Months Ended 09/30/23 (unaudited) |
|
|
Period From 02/14/23 to 03/31/23 |
(a)
| |||||||||||
|
||||||||||||||||
Net asset value, beginning of period |
$ | 26.75 | $ | 25.52 | ||||||||||||
|
|
|
|
|||||||||||||
Net investment income(b) |
0.04 | 0.03 | ||||||||||||||
Net realized and unrealized gain(c) |
1.14 | 1.20 | ||||||||||||||
|
|
|
|
|||||||||||||
Net increase from investment operations |
1.18 | 1.23 | ||||||||||||||
|
|
|
|
|||||||||||||
Distributions from net investment income |
(0.04 | ) | — | |||||||||||||
|
|
|
|
|||||||||||||
Net asset value, end of period |
$ | 27.89 | $ | 26.75 | ||||||||||||
|
|
|
|
|||||||||||||
Total Return(d) |
||||||||||||||||
Based on net asset value |
4.38 | %(e) | 4.82 | %(e) | ||||||||||||
|
|
|
|
|||||||||||||
Ratios to Average Net Assets(f) |
||||||||||||||||
Total expenses |
0.47 | %(g) | 0.47 | %(g) | ||||||||||||
|
|
|
|
|||||||||||||
Net investment income |
0.27 | %(g) | 0.84 | %(g) | ||||||||||||
|
|
|
|
|||||||||||||
Supplemental Data |
||||||||||||||||
Net assets, end of period (000) |
$ | 5,577 | $ | 5,350 | ||||||||||||
|
|
|
|
|||||||||||||
Portfolio turnover rate(h) |
12 | % | 7 | % | ||||||||||||
|
|
|
|
(a) |
Commencement of operations. |
(b) |
Based on average shares outstanding. |
(c) |
The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) |
Where applicable, assumes the reinvestment of distributions. |
(e) |
Not annualized. |
(f) |
Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(g) |
Annualized. |
(h) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
72 |
2 0 2 3 I S H A R E S S E M I - 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 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares India 50 ETF | ||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||
|
Six Months Ended 09/30/23 (unaudited) |
|
|
Year Ended 03/31/23 |
(a) |
|
Year Ended 03/31/22 |
(a) |
|
Year Ended 03/31/21 |
(a) |
|
Year Ended 03/31/20 |
(a) |
|
Year Ended 03/31/19 |
(a) | |||||||||||
|
||||||||||||||||||||||||||||
Net asset value, beginning of period |
$ | 41.20 | $ | 46.38 | $ | 44.60 | $ | 25.87 | $ | 37.92 | $ | 35.00 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net investment income(b) |
0.15 | 0.11 | 0.05 | 0.02 | 0.19 | 0.16 | ||||||||||||||||||||||
Net realized and unrealized gain (loss)(c) |
3.94 | (3.70 | ) | 5.10 | 18.74 | (12.01 | ) | 2.97 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net increase (decrease) from investment operations |
4.09 | (3.59 | ) | 5.15 | 18.76 | (11.82 | ) | 3.13 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Distributions(d) |
||||||||||||||||||||||||||||
From net investment income |
(0.07 | )(e) | — | (3.37 | ) | (0.03 | ) | (0.23 | ) | (0.21 | ) | |||||||||||||||||
From net realized gain |
— | (1.59 | ) | — | — | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total distributions |
(0.07 | ) | (1.59 | ) | (3.37 | ) | (0.03 | ) | (0.23 | ) | (0.21 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net asset value, end of period |
$ | 45.22 | $ | 41.20 | $ | 46.38 | $ | 44.60 | $ | 25.87 | $ | 37.92 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total Return(f) |
||||||||||||||||||||||||||||
Based on net asset value |
9.94 | %(g) | (7.92 | )% | 11.57 | % | 72.59 | % | (31.41 | )% | 9.04 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Ratios to Average Net Assets(h) |
||||||||||||||||||||||||||||
Total expenses |
0.89 | %(i) | 0.93 | %(j) | 0.89 | % | 0.90 | % | 0.93 | % | 0.94 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net investment income |
0.68 | %(i) | 0.25 | % | 0.10 | % | 0.06 | % | 0.51 | % | 0.45 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Supplemental Data |
||||||||||||||||||||||||||||
Net assets, end of period (000) |
$ | 664,706 | $ | 576,772 | $ | 663,228 | $ | 691,284 | $ | 483,841 | $ | 828,545 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Portfolio turnover rate(k) |
8 | % | 108 | % | 12 | % | 8 | % | 26 | % | 24 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Consolidated Financial Highlights. |
(b) |
Based on average shares outstanding. |
(c) |
The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) |
A portion of the distributions from net investment income may be deemed a return of capital or net realized gain at fiscal year-end. |
(f) |
Where applicable, assumes the reinvestment of distributions. |
(g) |
Not annualized. |
(h) |
Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(i) |
Annualized. |
(j) |
Includes non-recurring expense of Interest expense. Without this cost, total expenses would have been 0.89%. |
(k) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
F I N A N C I A L H I G H L I G H T S |
73 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares International Developed Property ETF | ||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||
Six Months Ended 09/30/23 (unaudited) |
Year Ended 03/31/23 |
Year Ended 03/31/22 |
Year Ended 03/31/21 |
Year Ended 03/31/20 |
Year Ended 03/31/19 |
|||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Net asset value, beginning of period |
$ | 26.95 | $ | 35.47 | $ | 36.25 | $ | 27.97 | $ | 38.79 | $ | 38.95 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net investment income(a) |
0.54 | 1.03 | (b) | 1.06 | (b) | 0.94 | 1.14 | 1.19 | ||||||||||||||||||||
Net realized and unrealized gain (loss)(c) |
(1.87 | ) | (8.99 | ) | (0.35 | ) | 8.19 | (9.31 | ) | 0.23 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net increase (decrease) from investment operations |
(1.33 | ) | (7.96 | ) | 0.71 | 9.13 | (8.17 | ) | 1.42 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Distributions from net investment income(d) |
(0.49 | ) | (0.56 | ) | (1.49 | ) | (0.85 | ) | (2.65 | ) | (1.58 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net asset value, end of period |
$ | 25.13 | $ | 26.95 | $ | 35.47 | $ | 36.25 | $ | 27.97 | $ | 38.79 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total Return(e) |
||||||||||||||||||||||||||||
Based on net asset value |
(4.98 | )%(f) | (22.49 | )%(b) | 1.79 | %(b) | 32.96 | % | (22.52 | )% | 3.91 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Ratios to Average Net Assets(g) |
||||||||||||||||||||||||||||
Total expenses |
0.48 | %(h) | 0.48 | % | 0.49 | % | 0.48 | % | 0.48 | % | 0.48 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total expenses excluding professional fees for foreign withholding tax claims |
N/A | 0.48 | % | 0.48 | % | N/A | N/A | N/A | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net investment income |
4.05 | %(h) | 3.55 | %(b) | 2.82 | %(b) | 2.92 | % | 3.01 | % | 3.16 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Supplemental Data |
||||||||||||||||||||||||||||
Net assets, end of period (000) |
$ | 37,688 | $ | 43,123 | $ | 63,846 | $ | 83,385 | $ | 78,329 | $ | 131,871 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Portfolio turnover rate(i) |
4 | % | 6 | % | 12 | % | 16 | % | 8 | % | 9 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Based on average shares outstanding. |
(b) |
Reflects the positive effect of foreign withholding tax claims, net of the associated professional fees, which resulted in the following increases for the years ended March 31, 2023 and March 31, 2022 respectively: |
• |
Net investment income per share by $0.01 and $0.04. |
• |
Total return by 0.04% and 0.12%. |
• |
Ratio of net investment income to average net assets by 0.04% and 0.09%. |
(c) |
The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) |
Where applicable, assumes the reinvestment of distributions. |
(f) |
Not annualized. |
(g) |
Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(h) |
Annualized. |
(i) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
74 |
2 0 2 3 I S H A R E S S E M I - 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 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares International Developed Small Cap Value Factor ETF | ||||||||||||||||||||
|
|
|||||||||||||||||||
|
Six Months Ended 09/30/23 (unaudited) |
|
|
Year Ended 03/31/23 |
|
|
Year Ended 03/31/22 |
|
|
Period From 03/23/21 to 03/31/21 |
(a)
| |||||||||
|
||||||||||||||||||||
Net asset value, beginning of period |
$ | 31.60 | $ | 34.20 | $ | 34.37 | $ | 34.52 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net investment income(b) |
0.74 | 1.09 | 1.59 | 0.16 | ||||||||||||||||
Net realized and unrealized loss(c) |
(1.06 | ) | (2.68 | ) | (0.74 | ) | (0.31 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net increase (decrease) from investment operations |
(0.32 | ) | (1.59 | ) | 0.85 | (0.15 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Distributions from net investment income(d) |
(0.67 | ) | (1.01 | ) | (1.02 | ) | — | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net asset value, end of period |
$ | 30.61 | $ | 31.60 | $ | 34.20 | $ | 34.37 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total Return(e) |
||||||||||||||||||||
Based on net asset value |
(1.06 | )%(f) | (4.56 | )% | 2.42 | % | (0.43 | )%(f) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Ratios to Average Net Assets(g) |
||||||||||||||||||||
Total expenses |
0.36 | %(h) | 0.40 | % | 0.40 | % | 0.40 | %(h) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total expenses after fees waived |
0.31 | %(h) | 0.30 | % | 0.30 | % | 0.30 | %(h) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total expenses excluding professional fees for foreign withholding tax claims |
0.35 | %(h) | N/A | N/A | N/A | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net investment income |
4.66 | %(h) | 3.59 | % | 4.55 | % | 17.96 | %(h) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Supplemental Data |
||||||||||||||||||||
Net assets, end of period (000) |
$ | 156,103 | $ | 158,001 | $ | 164,181 | $ | 6,875 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Portfolio turnover rate(i) |
45 | % | 18 | % | 35 | % | 0 | % | ||||||||||||
|
|
|
|
|
|
|
|
(a) |
Commencement of operations. |
(b) |
Based on average shares outstanding. |
(c) |
The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) |
Where applicable, assumes the reinvestment of distributions. |
(f) |
Not annualized. |
(g) |
Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(h) |
Annualized. |
(i) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
F I N A N C I A L H I G H L I G H T S |
75 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares International Dividend Growth ETF | ||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||
Six Months Ended |
Year Ended 03/31/23 |
Year Ended 03/31/22 |
Year Ended 03/31/21 |
Year Ended 03/31/20 |
Year Ended 03/31/19 |
|||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Net asset value, beginning of period |
$ | 60.45 | $ | 65.02 | $ | 64.36 | $ | 45.51 | $ | 53.81 | $ | 56.40 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net investment income(a) |
1.07 | 1.67 | 1.74 | 1.53 | 1.56 | 1.51 | ||||||||||||||||||||||
Net realized and unrealized gain (loss)(b) |
(1.03 | ) | (4.77 | ) | 0.39 | 18.87 | (8.24 | ) | (2.58 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net increase (decrease) from investment operations |
0.04 | (3.10 | ) | 2.13 | 20.40 | (6.68 | ) | (1.07 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Distributions from net investment income(c) |
(1.10 | ) | (1.47 | ) | (1.47 | ) | (1.55 | ) | (1.62 | ) | (1.52 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net asset value, end of period |
$ | 59.39 | $ | 60.45 | $ | 65.02 | $ | 64.36 | $ | 45.51 | $ | 53.81 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total Return(d) |
||||||||||||||||||||||||||||
Based on net asset value |
0.06 | %(e) | (4.60 | )% | 3.28 | % | 45.29 | % | (12.75 | )% | (1.88 | )% | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Ratios to Average Net Assets(f) |
||||||||||||||||||||||||||||
Total expenses |
0.15 | %(g) | 0.15 | % | 0.15 | % | 0.19 | % | 0.22 | % | 0.22 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total expenses excluding professional fees for foreign withholding tax claims |
N/A | 0.15 | % | N/A | N/A | N/A | N/A | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net investment income |
3.48 | %(g) | 2.89 | % | 2.60 | % | 2.66 | % | 2.81 | % | 2.80 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Supplemental Data |
||||||||||||||||||||||||||||
Net assets, end of period (000) |
$ | 617,645 | $ | 595,420 | $ | 321,871 | $ | 189,855 | $ | 79,644 | $ | 75,329 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Portfolio turnover rate(h) |
13 | % | 37 | % | 40 | % | 66 | % | 35 | % | 34 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Based on average shares outstanding. |
(b) |
The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(c) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(d) |
Where applicable, assumes the reinvestment of distributions. |
(e) |
Not annualized. |
(f) |
Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(g) |
Annualized. |
(h) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
76 |
2 0 2 3 I S H A R E S S E M I - 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 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Latin America 40 ETF | ||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||
Six Months Ended 09/30/23 (unaudited) |
Year Ended 03/31/23 |
Year Ended 03/31/22 |
Year Ended 03/31/21 |
Year Ended 03/31/20 |
Year Ended 03/31/19 |
|||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Net asset value, beginning of period |
$ | 23.88 | $ | 30.36 | $ | 27.56 | $ | 18.34 | $ | 33.24 | $ | 37.28 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net investment income(a) |
0.92 | 2.69 | 1.70 | 0.68 | 0.98 | 0.88 | ||||||||||||||||||||||
Net realized and unrealized gain (loss)(b) |
1.23 | (6.26 | ) | 3.09 | 9.09 | (14.83 | ) | (3.96 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net increase (decrease) from investment operations |
2.15 | (3.57 | ) | 4.79 | 9.77 | (13.85 | ) | (3.08 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Distributions from net investment income(c) |
(0.48 | )(d) | (2.91 | ) | (1.99 | ) | (0.55 | ) | (1.05 | ) | (0.96 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net asset value, end of period |
$ | 25.55 | $ | 23.88 | $ | 30.36 | $ | 27.56 | $ | 18.34 | $ | 33.24 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total Return(e) |
||||||||||||||||||||||||||||
Based on net asset value |
8.94 | %(f) | (11.29 | )% | 19.25 | % | 53.62 | % | (43.05 | )% | (7.93 | )% | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Ratios to Average Net Assets(g) |
||||||||||||||||||||||||||||
Total expenses |
0.48 | %(h) | 0.48 | % | 0.47 | % | 0.48 | % | 0.48 | % | 0.48 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net investment income |
7.07 | %(h) | 10.76 | % | 6.07 | % | 2.78 | % | 3.08 | % | 2.68 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Supplemental Data |
||||||||||||||||||||||||||||
Net assets, end of period (000) |
$ | 1,411,732 | $ | 1,003,133 | $ | 1,738,190 | $ | 1,770,590 | $ | 797,877 | $ | 1,529,164 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Portfolio turnover rate(i) |
4 | % | 24 | % | 27 | % | 20 | % | 22 | % | 20 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Based on average shares outstanding. |
(b) |
The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(c) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(d) |
A portion of the distributions from net investment income may be deemed a return of capital or net realized gain at fiscal year-end. |
(e) |
Where applicable, assumes the reinvestment of distributions. |
(f) |
Not annualized. |
(g) |
Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(h) |
Annualized. |
(i) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
F I N A N C I A L H I G H L I G H T S |
77 |
Notes to Financial Statements (unaudited)
1. |
ORGANIZATION |
iShares Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust is organized as a Delaware statutory trust and is authorized to have multiple series or portfolios.
These financial statements relate only to the following funds (each, a “Fund” and collectively, the “Funds”):
iShares ETF | Diversification Classification | |
Asia 50 |
Non-diversified | |
Blockchain and Tech |
Non-diversified | |
Emerging Markets Infrastructure |
Non-diversified | |
Europe |
Diversified | |
Future Metaverse Tech and Communications |
Non-diversified | |
India 50 |
Non-diversified | |
International Developed Property |
Diversified | |
International Developed Small Cap Value Factor |
Non-diversified | |
International Dividend Growth |
Diversified | |
Latin America 40 |
Non-diversified |
Basis of Consolidation: Effective March 17, 2023, iShares India 50 ETF transferred all of the assets of iShares India 50 ETF’s wholly owned Mauritius Subsidiary to iShares India 50 ETF through on-exchange transactions in India. After the transfer, iShares India 50 ETF began making new investments in India directly. On March 29, 2023, iShares India 50 ETF’s Mauritius Subsidiary was dissolved.
2. |
SIGNIFICANT ACCOUNTING POLICIES |
The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:
Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recorded on the ex-dividend date. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Dividends from foreign securities where the ex-dividend date may have passed are subsequently recorded when the Funds are informed of the ex-dividend date. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Upon notification from issuers or as estimated by management, a portion of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized daily on an accrual basis.
Foreign Currency Translation: Each Fund’s books and records are maintained in U.S. dollars. Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of investments are recorded at the rates of exchange prevailing on the respective dates of such transactions. Generally, when the U.S. dollar rises in value against a foreign currency, the investments denominated in that currency will lose value; the opposite effect occurs if the U.S. dollar falls in relative value.
Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of investments for financial reporting purposes. Accordingly, the effects of changes in exchange rates on investments are not segregated in the Statements of Operations from the effects of changes in market prices of those investments, but are included as a component of net realized and unrealized gain (loss) from investments. Each Fund reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes.
Foreign Taxes: The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its Statements of Operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “Other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of September 30, 2023, if any, are disclosed in the Statements of Assets and Liabilities.
The Funds file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. The Funds may record a reclaim receivable based on collectability, which includes factors such as the jurisdiction’s applicable laws, payment history and market convention. The Statements of Operations includes tax reclaims recorded as well as professional and other fees, if any, associated with recovery of foreign withholding taxes.
78 |
2 0 2 3 I S H A R E S S E M I - 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 |
Notes to Financial Statements (unaudited) (continued)
Collateralization: If required by an exchange or counterparty agreement, the Funds may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments.
In-kind Redemptions: For financial reporting purposes, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or net asset value (“NAV”) per share.
Distributions: Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds.
Indemnifications: In the normal course of business, each Fund enters into contracts that contain a variety of representations that provide general indemnification. The Funds’ maximum exposure under these arrangements is unknown because it involves future potential claims against the Funds, which cannot be predicted with any certainty.
3. |
INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS |
Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Board of Trustees of the Trust (the “Board”) of each Fund has approved the designation of BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, as the valuation designee for each Fund. Each Fund determines the fair values of its financial instruments using various independent dealers or pricing services under BFA’s policies. If a security’s market price is not readily available or does not otherwise accurately represent the fair value of the security, the security will be valued in accordance with BFA’s policies and procedures as reflecting fair value. BFA has formed a committee (the “Valuation Committee”) to develop pricing policies and procedures and to oversee the pricing function for all financial instruments, with assistance from other BlackRock pricing committees.
Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:
• |
Equity investments traded on a recognized securities exchange are valued at that day’s official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price. |
• |
Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published NAV. |
• |
Futures contracts are valued based on that day’s last reported settlement or trade price on the exchange where the contract is traded. |
Generally, trading in foreign instruments is substantially completed each day at various times prior to the close of trading on the New York Stock Exchange (“NYSE”). Each business day, the Funds use current market factors supplied by independent pricing services to value certain foreign instruments (“Systematic Fair Value Price”). The Systematic Fair Value Price is designed to value such foreign securities at fair value as of the close of trading on the NYSE, which follows the close of the local markets.
If events (e.g., market volatility, company announcement or a natural disaster) occur that are expected to materially affect the value of such investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Valuation Committee, in accordance with BFA’s policies and procedures as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Valuation Committee include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Valuation Committee seeks to determine the price that each Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Valuation Committee deems relevant and consistent with the principles of fair value measurement.
Fair value pricing could result in a difference between the prices used to calculate a fund’s NAV and the prices used by the fund’s underlying index, which in turn could result in a difference between the fund’s performance and the performance of the fund’s underlying index.
Fair Value Hierarchy: Various inputs are used in determining the fair value of financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:
• |
Level 1 – Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that each Fund has the ability to access; |
• |
Level 2 – Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs); and |
• |
Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, (including the Valuation Committee’s assumptions used in determining the fair value of financial instruments). |
N O T E S T O F I N A N C I A L S T A T E M E N T S |
79 |
Notes to Financial Statements (unaudited) (continued)
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds that may not have a secondary market and/or may have a limited number of investors. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.
4. |
SECURITIES AND OTHER INVESTMENTS |
Securities Lending: Each Fund may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by an approved bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund or excess collateral is returned by the Fund, on the next business day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.
As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested in money market funds managed by BFA, or its affiliates is disclosed in the Schedule of Investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan, if any, are also disclosed in each Fund’s Schedule of Investments. The market value of any securities on loan and the value of any related cash collateral are disclosed in the Statements of Assets and Liabilities.
Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (each, an “MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the Funds, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the Funds can reinvest cash collateral received in connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell or re-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.
As of period end, the following table is a summary of the securities on loan by counterparty which are subject to offset under an MSLA:
|
||||||||||||||||
iShares ETF and Counterparty |
|
Securities Loaned at Value |
|
|
Cash Collateral Received |
(a) |
|
Non-Cash Collateral Received, at Fair Value |
(a) |
Net Amount | ||||||
|
||||||||||||||||
Asia 50 |
||||||||||||||||
BofA Securities, Inc. |
$ | 32,010 | $ | (32,010 | ) | $ | — | $ | — | |||||||
Goldman Sachs & Co. LLC |
1,057,975 | (1,057,975 | ) | — | — | |||||||||||
HSBC Bank PLC |
3,526,584 | (3,526,584 | ) | — | — | |||||||||||
Jefferies LLC |
320,321 | (320,321 | ) | — | — | |||||||||||
Macquarie Bank Ltd. |
175,418 | (175,418 | ) | — | — | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 5,112,308 | $ | (5,112,308 | ) | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Blockchain and Tech |
||||||||||||||||
BNP Paribas SA |
$ | 268,321 | $ | (268,321 | ) | $ | — | $ | — | |||||||
BofA Securities, Inc. |
43,669 | (43,669 | ) | — | — | |||||||||||
J.P. Morgan Securities LLC |
289,194 | (289,194 | ) | — | — | |||||||||||
Jefferies LLC |
272,401 | (272,401 | ) | — | — | |||||||||||
UBS AG |
293,361 | (293,361 | ) | — | — | |||||||||||
UBS Securities LLC |
960,173 | (960,173 | ) | — | — | |||||||||||
Wells Fargo Bank N.A. |
104,470 | (104,470 | ) | — | — | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 2,231,589 | $ | (2,231,589 | ) | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Emerging Markets Infrastructure |
||||||||||||||||
Barclays Bank PLC |
$ | 323,932 | $ | (323,932 | ) | $ | — | $ | — | |||||||
BofA Securities, Inc. |
348,475 | (348,475 | ) | — | — | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 672,407 | $ | (672,407 | ) | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
|
80 |
2 0 2 3 I S H A R E S S E M I - 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 |
Notes to Financial Statements (unaudited) (continued)
|
||||||||||||||||
iShares ETF and Counterparty |
|
Securities Loaned at Value |
|
|
Cash Collateral Received |
(a) |
|
Non-Cash Collateral Received, at Fair Value |
(a) |
Net Amount | ||||||
|
||||||||||||||||
Europe |
||||||||||||||||
Goldman Sachs & Co. LLC |
$ | 2,783,598 | $ | (2,783,598 | ) | $ | — | $ | — | |||||||
HSBC Bank PLC |
1,542,411 | (1,542,411 | ) | — | — | |||||||||||
J.P. Morgan Securities LLC |
1,652,570 | (1,652,570 | ) | — | — | |||||||||||
Morgan Stanley & Co. LLC |
289,338 | (289,338 | ) | — | — | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 6,267,917 | $ | (6,267,917 | ) | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
|
|||||||||
International Developed Property |
||||||||||||||||
BofA Securities, Inc. |
$ | — | $ | — | $ | — | $ | — | ||||||||
Goldman Sachs & Co. LLC |
99,179 | (99,179 | ) | — | — | |||||||||||
HSBC Bank PLC |
15,246 | (15,246 | ) | — | — | |||||||||||
J.P. Morgan Securities LLC |
6,887 | (6,887 | ) | — | — | |||||||||||
Jefferies LLC |
2 | (2 | ) | — | — | |||||||||||
Macquarie Bank Ltd. |
31,957 | (31,957 | ) | — | — | |||||||||||
Morgan Stanley |
268,623 | (268,623 | ) | — | — | |||||||||||
SG Americas Securities LLC |
110,342 | (110,342 | ) | — | — | |||||||||||
UBS AG |
— | — | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 532,236 | $ | (532,236 | ) | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
|
|||||||||
International Developed Small Cap Value Factor |
||||||||||||||||
Barclays Capital, Inc. |
$ | 131,144 | $ | (131,144 | ) | $ | — | $ | — | |||||||
BNP Paribas SA |
553,726 | (553,726 | ) | — | — | |||||||||||
BofA Securities, Inc. |
91,025 | (91,025 | ) | — | — | |||||||||||
Goldman Sachs & Co. LLC |
190,886 | (190,886 | ) | — | — | |||||||||||
HSBC Bank PLC |
698,101 | (698,101 | ) | — | — | |||||||||||
J.P. Morgan Securities LLC |
361,500 | (361,500 | ) | — | — | |||||||||||
Nomura Securities International, Inc. |
10,240 | (10,240 | ) | — | — | |||||||||||
UBS AG |
44,261 | (44,261 | ) | — | — | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 2,080,883 | $ | (2,080,883 | ) | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
|
|||||||||
International Dividend Growth |
||||||||||||||||
Goldman Sachs & Co. LLC |
$ | 18,546 | $ | (18,546 | ) | $ | — | $ | — | |||||||
HSBC Bank PLC |
112,134 | (112,134 | ) | — | — | |||||||||||
Morgan Stanley |
219,061 | (219,061 | ) | — | — | |||||||||||
UBS AG |
395,633 | (395,633 | ) | — | — | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 745,374 | $ | (745,374 | ) | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Latin America 40 |
||||||||||||||||
BMO Capital Markets |
$ | 148,200 | $ | (148,200 | ) | $ | — | $ | — | |||||||
RBC Capital Markets LLC |
4,560 | (4,560 | ) | — | — | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 152,760 | $ | (152,760 | ) | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
|
(a) |
Collateral received, if any, in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Fund’s Statements of Assets and Liabilities. |
The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, each Fund benefits from a borrower default indemnity provided by BlackRock, Inc.. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned to the extent the collateral received does not cover the value of the securities loaned in the event of borrower default. Each Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by each Fund.
5. |
DERIVATIVE FINANCIAL INSTRUMENTS |
Futures Contracts: Futures contracts are purchased or sold to gain exposure to, or manage exposure to, changes in interest rates (interest rate risk) and changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk).
Futures contracts are exchange-traded agreements between the Funds and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, the Funds are required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Amounts pledged, which are considered restricted, are included in cash pledged for futures contracts in the Statements of Assets and Liabilities.
N O T E S T O F I N A N C I A L S T A T E M E N T S |
81 |
Notes to Financial Statements (unaudited) (continued)
Securities deposited as initial margin are designated in the Schedule of Investments and cash deposited, if any, are shown as cash pledged for futures contracts in the Statements of Assets and Liabilities. Pursuant to the contract, the Funds agree to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as variation margin receivable (or payable) on futures contracts in the Statements of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statements of Operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest rates, foreign currency exchange rates or underlying assets.
6. |
INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES |
Investment Advisory Fees: Pursuant to an Investment Advisory Agreement with the Trust, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent trustees).
For its investment advisory services to each of the following Funds, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, based on the average daily net assets of each Fund as follows:
iShares ETF | Investment Advisory Fees | |||
Asia 50 |
0.50% | |||
Blockchain and Tech |
0.47 | |||
Emerging Markets Infrastructure |
0.60 | |||
Future Metaverse Tech and Communications |
0.47 | |||
India 50 |
0.89 | |||
International Developed Property |
0.48 | |||
International Developed Small Cap Value Factor |
0.30 | |||
International Dividend Growth |
0.15 |
Effective June 30, 2023, for its investment advisory services to the iShares International Developed Small Cap Value Factor ETF, BFA is entitled to an annual investment advisory fee of 0.30%, accrued daily and paid monthly by the Fund, based on the average daily net assets of the Fund. Prior to June 30, 2023, BFA was entitled to an annual investment advisory fee of 0.40%, accrued daily and paid monthly by the Fund, based on the average daily net assets of the Fund.
For its investment advisory services to the iShares Europe ETF, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Fund, based on the Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:
Aggregate Average Daily Net Assets | Investment Advisory Fees | |||
First $12 billion |
0.6000% | |||
Over $12 billion, up to and including $18 billion |
0.5700 | |||
Over $18 billion, up to and including $24 billion |
0.5415 | |||
Over $24 billion, up to and including $30 billion |
0.5145 | |||
Over $30 billion |
0.4888 |
For its investment advisory services to the iShares Latin America 40 ETF, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Fund, based on the Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:
Aggregate Average Daily Net Assets | Investment Advisory Fees | |||
First $46 billion |
0.5000% | |||
Over $46 billion, up to and including $81 billion |
0.4750 | |||
Over $81 billion, up to and including $111 billion |
0.4513 | |||
Over $111 billion, up to and including $141 billion |
0.4287 | |||
Over $141 billion, up to and including $171 billion |
0.4073 | |||
Over $171 billion |
0.3869 |
Expense Waivers: A fund may incur its pro rata share of fees and expenses attributable to its investments in other investment companies (“acquired fund fees and expenses”). The total of the investment advisory fee and acquired fund fees and expenses, if any, is a fund’s total annual operating expenses. Total expenses as shown in the Statements of Operations does not include acquired fund fees and expenses.
For the iShares Emerging Markets Infrastructure ETF, BFA has contractually agreed to waive a portion of its investment advisory fee for the Fund through July 31, 2027 in an amount equal to the acquired fund fees and expenses, if any, attributable to the Fund’s investments in other iShares funds.
For the iShares International Developed Small Cap Value Factor ETF, BFA had contractually agreed to waive a portion of its investment advisory fee through July 31, 2024 in order to limit the Fund’s total annual operating expenses after fee waiver to 0.30% of average daily net assets. The contractual waiver was terminated as of June 30, 2023,
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Notes to Financial Statements (unaudited) (continued)
These amounts are included in investment advisory fees waived in the Statements of Operations. For the six months ended September 30, 2023, the amounts waived in investment advisory fees pursuant to these arrangements were as follows:
iShares ETF | Amounts Waived | |||
International Developed Small Cap Value Factor |
$ | 39,797 |
Distributor: BlackRock Investments, LLC, an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.
Securities Lending: The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending, including any custodial costs. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan (the “collateral investment fees”). The cash collateral is invested in a money market fund, BlackRock Cash Funds: Institutional or BlackRock Cash Funds: Treasury, managed by BFA, or its affiliates. However, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04%. The SL Agency Shares of such money market fund will not be subject to a sales load, distribution fee or service fee. The money market fund in which the cash collateral has been invested may, under certain circumstances, impose a liquidity fee of up to 2% of the value redeemed or temporarily restrict redemptions for up to 10 business days during a 90 day period, in the event that the money market fund’s weekly liquid assets fall below certain thresholds.
Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment fees. Each Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.
Pursuant to the current securities lending agreement, the iShares Blockchain and Tech ETF (the “Group 1 Funds”), retains 81% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
Pursuant to the current securities lending agreement, each of iShares Asia 50 ETF, iShares Emerging Markets Infrastructure ETF, iShares Europe ETF, iShares Future Metaverse Tech and Communications ETF, iShares India 50 ETF, iShares International Developed Property ETF, iShares International Developed Small Cap Value Factor ETF, iShares International Dividend Growth ETF and iShares Latin America 40 ETF (the “Group 2 Funds”), retains 82% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in a given calendar year exceeds a specified threshold: (1) the Group 1 Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year 81% of securities lending income (which excludes collateral investment fees), and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees, and (2) each Group 2 Fund will retain for the remainder of that calendar year 85% of securities lending income (which excludes collateral investment fees), and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
The share of securities lending income earned by each Fund is shown as securities lending income – affiliated – net in its Statements of Operations. For the six months ended September 30, 2023, the Funds paid BTC the following amounts for securities lending agent services:
iShares ETF | Amounts | |||
Asia 50 |
$ | 4,859 | ||
Blockchain and Tech |
12,424 | |||
Emerging Markets Infrastructure |
637 | |||
Europe |
5,804 | |||
Future Metaverse Tech and Communications |
37 | |||
International Developed Property |
1,543 | |||
International Developed Small Cap Value Factor |
4,786 | |||
International Dividend Growth |
4,160 | |||
Latin America 40 |
4,161 |
Officers and Trustees: Certain officers and/or trustees of the Trust are officers and/or trustees of BlackRock or its affiliates.
N O T E S T O F I N A N C I A L S T A T E M E N T S |
83 |
Notes to Financial Statements (unaudited) (continued)
Other Transactions: Cross trading is the buying or selling of portfolio securities between funds to which BFA (or an affiliate) serves as investment adviser. At its regularly scheduled quarterly meetings, the Board reviews such transactions as of the most recent calendar quarter for compliance with the requirements and restrictions set forth by Rule 17a-7.
For the six months ended September 30, 2023, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:
iShares ETF | Purchases | Sales | Net Realized Gain (Loss) |
|||||||||
Asia 50 |
$ | 7,597,053 | $ | 18,284,647 | $ | (7,829,765) | ||||||
Blockchain and Tech |
32,664 | 592,364 | 30,713 | |||||||||
Emerging Markets Infrastructure |
20,986 | 48,931 | 4,045 | |||||||||
Europe |
14,325,597 | 1,631,006 | (1,979,307) | |||||||||
International Developed Property |
72,508 | 90,800 | (83,530) | |||||||||
International Developed Small Cap Value Factor |
609,367 | 3,384,678 | (462,281) | |||||||||
International Dividend Growth |
11,405,053 | 7,090,184 | (304,187) | |||||||||
Latin America 40 |
1,311,077 | — | — |
Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is shown as dividends – affiliated in the Statements of Operations.
A fund, in order to improve its portfolio liquidity and its ability to track its underlying index, may invest in shares of other iShares funds that invest in securities in the fund’s underlying index.
7. |
PURCHASES AND SALES |
For the six months ended September 30, 2023, purchases and sales of investments, excluding short-term securities and in-kind transactions, were as follows:
iShares ETF | Purchases | Sales | ||||||
Asia 50 |
$ | 121,433,977 | $ | 99,570,224 | ||||
Blockchain and Tech |
3,190,452 | 3,144,282 | ||||||
Emerging Markets Infrastructure |
1,670,914 | 1,730,135 | ||||||
Europe |
69,035,169 | 52,393,119 | ||||||
Future Metaverse Tech and Communications |
655,015 | 654,617 | ||||||
India 50 |
65,290,344 | 42,595,508 | ||||||
International Developed Property |
1,583,076 | 1,583,580 | ||||||
International Developed Small Cap Value Factor |
71,549,141 | 71,060,030 | ||||||
International Dividend Growth |
82,091,088 | 78,223,481 | ||||||
Latin America 40 |
164,111,506 | 44,422,905 |
For the six months ended September 30, 2023, in-kind transactions were as follows:
iShares ETF | In-kind Purchases |
In-kind Sales |
||||||
Asia 50 |
$ | 1,099,203 | $ | 14,568,017 | ||||
Blockchain and Tech |
1,095,895 | — | ||||||
Emerging Markets Infrastructure |
— | 914,351 | ||||||
Europe |
— | 171,714,541 | ||||||
International Developed Property |
— | 2,489,478 | ||||||
International Developed Small Cap Value Factor |
3,173,828 | — | ||||||
International Dividend Growth |
29,075,442 | — | ||||||
Latin America 40 |
317,672,156 | 61,736,672 |
8. |
INCOME TAX INFORMATION |
Each Fund is treated as an entity separate from the Trust’s other funds for federal income tax purposes. It is each Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required.
Management has analyzed tax laws and regulations and their application to the Funds as of September 30, 2023, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.
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Notes to Financial Statements (unaudited) (continued)
As of March 31, 2023, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains and qualified late-year losses as follows:
iShares ETF | Non-Expiring Capital Loss Carryforwards |
Qualified Late-Year Ordinary Losses |
||||||
Asia 50 |
$(91,304,416) | $ | — | |||||
Blockchain and Tech |
(3,088,039) | — | ||||||
Emerging Markets Infrastructure |
(34,170,843) | — | ||||||
Europe |
(368,616,712) | — | ||||||
India 50 |
— | (495,624) | ||||||
International Developed Property |
(31,498,243) | — | ||||||
International Developed Small Cap Value Factor |
(2,549,938) | — | ||||||
International Dividend Growth |
(32,658,402) | — | ||||||
Latin America 40 |
(1,036,874,384) | — |
A fund may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” Such fund may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.
As of September 30, 2023, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:
iShares ETF | Tax Cost | Gross Unrealized Appreciation |
Gross Unrealized Depreciation |
Net
Unrealized Appreciation (Depreciation) |
||||||||||||
Asia 50 |
$ | 1,715,920,284 | $ | 262,314,704 | $ | (474,010,131 | ) | $ | (211,695,427) | |||||||
Blockchain and Tech |
9,310,776 | 931,058 | (699,360 | ) | 231,698 | |||||||||||
Emerging Markets Infrastructure |
22,226,055 | 3,946,801 | (4,951,686 | ) | (1,004,885) | |||||||||||
Europe |
1,775,190,758 | 220,410,157 | (389,505,285 | ) | (169,095,128) | |||||||||||
Future Metaverse Tech and Communications |
5,503,934 | 610,498 | (301,947 | ) | 308,551 | |||||||||||
India 50 |
335,547,451 | 377,458,265 | (38,795,615 | ) | 338,662,650 | |||||||||||
International Developed Property |
62,656,832 | 763,905 | (25,062,762 | ) | (24,298,857) | |||||||||||
International Developed Small Cap Value Factor |
172,585,600 | 7,868,890 | (23,423,820 | ) | (15,554,930) | |||||||||||
International Dividend Growth |
619,722,643 | 46,204,827 | (46,521,693 | ) | (316,866) | |||||||||||
Latin America 40 |
1,590,555,043 | 88,398,515 | (284,987,655 | ) | (196,589,140) |
9. |
LINE OF CREDIT |
The iShares Asia 50 ETF, iShares Emerging Markets Infrastructure ETF, iShares Future Metaverse Tech and Communications ETF, iShares India 50 ETF, iShares International Dividend Growth ETF and iShares Latin America 40 ETF, along with certain other iShares funds (“Participating Funds”), are parties to a $800 million credit agreement (“Syndicated Credit Agreement”) with a group of lenders, which expires on August 9, 2024. The line of credit may be used for temporary or emergency purposes, including redemptions, settlement of trades and rebalancing of portfolio holdings in certain target markets. The Funds may borrow up to the aggregate commitment amount subject to asset coverage and other limitations as specified in the Syndicated Credit Agreement. The Syndicated Credit Agreement has the following terms: a commitment fee of 0.15% per annum on the unused portion of the credit agreement and interest at a rate equal to the higher of (a) Daily Simple Secured Overnight Financing Rate (“SOFR”) plus 0.10% and 1.00% per annum or (b) the U.S. Federal Funds rate plus 1.00% per annum on amounts borrowed. The commitment fee is generally allocated to each Participating Fund based on the lesser of a Participating Fund’s relative exposure to certain target markets or a Participating Fund’s maximum borrowing amount as set forth by the terms of the Syndicated Credit Agreement.
During the six months ended September 30, 2023, the iShares Asia 50 ETF, iShares Emerging Markets Infrastructure ETF, iShares Future Metaverse Tech and Communications ETF, iShares India 50 ETF and iShares Latin America 40 ETF did not borrow under the Syndicated Credit Agreement.
For the six months ended September 30, 2023, the maximum amount borrowed, the average daily borrowing and the weighted average interest rate, if any, under the Syndicated Credit Agreement were as follows:
iShares ETF | Maximum Amount Borrowed |
Average Borrowing |
Weighted Average Interest Rates |
|||||||||
International Dividend Growth |
$ | 1,650,000 | $ | 76,105 | 6.20% |
N O T E S T O F I N A N C I A L S T A T E M E N T S |
85 |
Notes to Financial Statements (unaudited) (continued)
10. |
PRINCIPAL RISKS |
In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Funds and their investments. Each Fund’s prospectus provides details of the risks to which the Fund is subject.
BFA uses a “passive” or index approach to try to achieve each Fund’s investment objective following the securities included in its underlying index during upturns as well as downturns. BFA does not take steps to reduce market exposure or to lessen the effects of a declining market. Divergence from the underlying index and the composition of the portfolio is monitored by BFA.
The Funds may be exposed to additional risks when reinvesting cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00, which may be subject to redemption gates or liquidity fees under certain circumstances.
Market Risk: Investments in the securities of issuers domiciled in countries with emerging capital markets involve certain additional risks that do not generally apply to investments in securities of issuers in more developed capital markets, such as (i) low or nonexistent trading volume, resulting in a lack of liquidity and increased volatility in prices for such securities; (ii) uncertain national policies and social, political and economic instability, increasing the potential for expropriation of assets, confiscatory taxation, high rates of inflation or unfavorable diplomatic developments; (iii) lack of publicly available or reliable information about issuers as a result of not being subject to the same degree of regulatory requirements and accounting, auditing and financial reporting standards; and (iv) possible fluctuations in exchange rates, differing legal systems and the existence or possible imposition of exchange controls, custodial restrictions or other foreign or U.S. governmental laws or restrictions applicable to such investments.
Infectious Illness Risk: An outbreak of an infectious illness, such as the COVID-19 pandemic, may adversely impact the economies of many nations and the global economy, and may impact individual issuers and capital markets in ways that cannot be foreseen. An infectious illness outbreak may result in, among other things, closed international borders, prolonged quarantines, supply chain disruptions, market volatility or disruptions and other significant economic, social and political impacts.
Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. A fund may invest in illiquid investments. An illiquid investment is any investment that a fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. A fund may experience difficulty in selling illiquid investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause a fund’s NAV to experience significant increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of a fund may lose value, regardless of the individual results of the securities and other instruments in which a fund invests.
The price each Fund could receive upon the sale of any particular portfolio investment may differ from each Fund’s valuation of the investment, particularly for securities that trade in thin or volatile markets or that are valued using a fair valuation technique or a price provided by an independent pricing service. Changes to significant unobservable inputs and assumptions (i.e., publicly traded company multiples, growth rate, time to exit) due to the lack of observable inputs may significantly impact the resulting fair value and therefore each Fund’s results of operations. As a result, the price received upon the sale of an investment may be less than the value ascribed by each Fund, and each Fund could realize a greater than expected loss or lesser than expected gain upon the sale of the investment. Each Fund’s ability to value its investments may also be impacted by technological issues and/or errors by pricing services or other third-party service providers.
Counterparty Credit Risk: The Funds may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions, including making timely interest and/or principal payments or otherwise honoring its obligations. The Funds manage counterparty credit risk by entering into transactions only with counterparties that BFA believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Funds to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Funds’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statements of Assets and Liabilities, less any collateral held by the Funds.
A derivative contract may suffer a mark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.
With exchange-traded futures, there is less counterparty credit risk to the Funds since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, a fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Funds.
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Notes to Financial Statements (unaudited) (continued)
Geographic/Asset Class Risk: A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its Schedule of Investments.
Certain Funds invest a significant portion of their assets in issuers located in a single country or a limited number of countries. When a fund concentrates its investments in this manner, it assumes the risk that economic, regulatory, political and social conditions in that country or those countries may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the Fund’s portfolio. Unanticipated or sudden political or social developments may cause uncertainty in the markets and as a result adversely affect the Fund’s investments. Foreign issuers may not be subject to the same uniform accounting, auditing and financial reporting standards and practices as used in the United States. Foreign securities markets may also be more volatile and less liquid than U.S. securities and may be less subject to governmental supervision not typically associated with investing in U.S. securities. Investment percentages in specific countries are presented in the Schedule of Investments.
Certain Funds invest a significant portion of their assets in securities of issuers located in Europe or with significant exposure to European issuers or countries. The European financial markets have recently experienced volatility and adverse trends due to concerns about economic downturns in, or rising government debt levels of, several European countries as well as acts of war in the region. These events may spread to other countries in Europe and may affect the value and liquidity of certain of the Funds’ investments.
Responses to the financial problems by European governments, central banks and others, including austerity measures and reforms, may not work, may result in social unrest and may limit future growth and economic recovery or have other unintended consequences. Further defaults or restructurings by governments and others of their debt could have additional adverse effects on economies, financial markets and asset valuations around the world. The United Kingdom has withdrawn from the European Union, and one or more other countries may withdraw from the European Union and/or abandon the Euro, the common currency of the European Union. These events and actions have adversely affected, and may in the future adversely affect, the value and exchange rate of the Euro and may continue to significantly affect the economies of every country in Europe, including countries that do not use the Euro and non-European Union member states. The impact of these actions, especially if they occur in a disorderly fashion, is not clear but could be significant and far reaching. In addition, Russia launched a large-scale invasion of Ukraine on February 24, 2022. The extent and duration of the military action, resulting sanctions and resulting future market disruptions in the region are impossible to predict, but have been, and may continue to be significant and have a severe adverse effect on the region, including significant negative impacts on the economy and the markets for certain securities and commodities, such as oil and natural gas, as well as other sectors.
Certain Funds invest a significant portion of their assets in securities of issuers located in China or with significant exposure to Chinese issuers. Investments in Chinese securities, including certain Hong Kong-listed securities, involve risks specific to China. China may be subject to considerable degrees of economic, political and social instability and demonstrates significantly higher volatility from time to time in comparison to developed markets. Chinese markets generally continue to experience inefficiency, volatility and pricing anomalies resulting from governmental influence, a lack of publicly available information and/or political and social instability. Internal social unrest or confrontations with other neighboring countries may disrupt economic development in China and result in a greater risk of currency fluctuations, currency non-convertibility, interest rate fluctuations and higher rates of inflation. Incidents involving China’s or the region’s security may cause uncertainty in Chinese markets and may adversely affect the Chinese economy and a fund’s investments. Reduction in spending on Chinese products and services, institution of tariffs or other trade barriers, or a downturn in any of the economies of China’s key trading partners may have an adverse impact on the Chinese economy. In addition, measures may be taken to limit the flow of capital and/or sanctions may be imposed, which could prohibit or restrict the ability to own or transfer fund assets and may also include retaliatory actions, such as seizure of fund assets.
Certain Funds invest a significant portion of their assets in securities of issuers located in Asia or with significant exposure to Asian issuers or countries. The Asian financial markets have recently experienced volatility and adverse trends due to concerns in several Asian countries regarding monetary policy, government intervention in the markets, rising government debt levels or economic downturns. These events may spread to other countries in Asia and may affect the value and liquidity of certain of the Funds’ investments.
Certain Funds invest a significant portion of their assets in securities within a single or limited number of market sectors. When a fund concentrates its investments in this manner, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.
Significant Shareholder Redemption Risk: Certain shareholders may own or manage a substantial amount of fund shares and/or hold their fund investments for a limited period of time. Large redemptions of fund shares by these shareholders may force a fund to sell portfolio securities, which may negatively impact the fund’s NAV, increase the fund’s brokerage costs, and/or accelerate the realization of taxable income/gains and cause the fund to make additional taxable distributions to shareholders.
11. |
CAPITAL SHARE TRANSACTIONS |
Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable.
N O T E S T O F I N A N C I A L S T A T E M E N T S |
87 |
Notes to Financial Statements (unaudited) (continued)
Transactions in capital shares were as follows:
|
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Six Months Ended 09/30/23 |
Year Ended 03/31/23 |
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iShares ETF | Shares | Amount | Shares | Amount | ||||||||||||||||||
|
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Asia 50 |
||||||||||||||||||||||
Shares sold |
400,000 | $ | 24,771,421 | 4,250,000 | $ | 268,352,378 | ||||||||||||||||
Shares redeemed |
(500,000 | ) | (29,275,594 | ) | (4,600,000 | ) | (269,671,950 | ) | ||||||||||||||
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(100,000 | ) | $ | (4,504,173) | (350,000 | ) | $ | (1,319,572) | |||||||||||||||
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Six Months Ended 09/30/23 |
Period Ended 03/31/23 |
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iShares ETF | Shares | Amount | Shares | Amount | ||||||||||||||||||||||
|
||||||||||||||||||||||||||
Blockchain and Tech |
||||||||||||||||||||||||||
Shares sold |
50,000 | $ | 1,157,886 | 400,000 | $ | 8,983,970 | ||||||||||||||||||||
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Six Months Ended 09/30/23 |
Year Ended 03/31/23 |
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iShares ETF | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||
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Emerging Markets Infrastructure |
||||||||||||||||||||||||||||
Shares sold |
— | $ | 780 | 200,000 | $ | 4,326,610 | ||||||||||||||||||||||
Shares redeemed |
(50,000 | ) | (1,072,963 | ) | (50,000 | ) | (1,105,850 | ) | ||||||||||||||||||||
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(50,000 | ) | $ | (1,072,183) | 150,000 | $ | 3,220,760 | ||||||||||||||||||||||
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Europe |
||||||||||||||||||||||||||||
Shares sold |
500,000 | $ | 54,632,802 | 5,600,000 | $ | 267,045,938 | ||||||||||||||||||||||
Shares redeemed |
(4,200,000 | ) | (207,317,314 | ) | (7,750,000 | ) | (367,441,756 | ) | ||||||||||||||||||||
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(3,700,000 | ) | $ | (152,684,512) | (2,150,000 | ) | $ | (100,395,818) | |||||||||||||||||||||
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Six Months Ended 09/30/23 |
Period Ended 03/31/23 |
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iShares ETF | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||
|
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Future Metaverse Tech and Communications |
||||||||||||||||||||||||||||
Shares sold |
— | $ | — | 200,000 | $ | 5,104,279 | ||||||||||||||||||||||
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Six Months Ended 09/30/23 |
Year Ended 03/31/23 |
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iShares ETF | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||
|
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India 50 |
||||||||||||||||||||||||||||
Shares sold |
1,050,000 | $ | 47,940,461 | 750,000 | $ | 32,231,430 | ||||||||||||||||||||||
Shares redeemed |
(350,000 | ) | (14,781,480 | ) | (1,050,000 | ) | (44,585,805 | ) | ||||||||||||||||||||
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|
|
|
|
|
|
|
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700,000 | $ | 33,158,981 | (300,000 | ) | $ | (12,354,375 | ) | |||||||||||||||||||||
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|
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|
|
|
|
|
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International Developed Property |
||||||||||||||||||||||||||||
Shares sold |
— | $ | 49 | — | $ | 21 | ||||||||||||||||||||||
Shares redeemed |
(100,000 | ) | (2,613,333 | ) | (200,000 | ) | (5,900,760 | ) | ||||||||||||||||||||
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|
|
|
|
|
|
|
|||||||||||||||||||||
(100,000 | ) | $ | (2,613,284 | ) | (200,000 | ) | $ | (5,900,739 | ) | |||||||||||||||||||
|
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|
|
|
|
|
|
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International Developed Small Cap Value Factor |
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Shares sold |
100,000 | $ | 3,224,313 | 200,000 | $ | 5,713,393 | ||||||||||||||||||||||
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|
|
|
|
|
|
|||||||||||||||||||||
International Dividend Growth |
||||||||||||||||||||||||||||
Shares sold |
550,000 | $ | 33,877,998 | 4,900,000 | $ | 288,496,363 | ||||||||||||||||||||||
|
|
|
|
|
|
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|
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Latin America 40 |
||||||||||||||||||||||||||||
Shares sold |
16,500,000 | $ | 443,533,643 | 13,500,000 | $ | 362,330,132 | ||||||||||||||||||||||
Shares redeemed |
(3,250,000 | ) | (80,740,107 | ) | (28,750,000 | ) | (692,352,408 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||
13,250,000 | $ | 362,793,536 | (15,250,000 | ) | $ | (330,022,276 | ) | |||||||||||||||||||||
|
|
|
|
|
|
|
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88 |
2 0 2 3 I S H A R E S S E M I - 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 |
Notes to Financial Statements (unaudited) (continued)
The consideration for the purchase of Creation Units of a fund in the Trust generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Trust may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to State Street Bank and Trust Company, the Trust’s administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in shares sold in the table above.
From time to time, settlement of securities related to in-kind contributions or in-kind redemptions may be delayed. In such cases, securities related to in-kind transactions are reflected as a receivable or a payable in the Statements of Assets and Liabilities.
12. |
FOREIGN WITHHOLDING TAX CLAIMS |
The iShares Europe ETF is seeking a closing agreement with the Internal Revenue Service (“IRS”) to address any prior years’ U.S. income tax liabilities attributable to Fund shareholders resulting from the recovery of foreign taxes. The closing agreement would result in the Fund paying a compliance fee to the IRS, on behalf of its shareholders, representing the estimated tax savings generated from foreign tax credits claimed by Fund shareholders on their tax returns in prior years. The Fund has accrued a liability for the estimated IRS compliance fee related to foreign withholding tax claims, which is disclosed in the Statements of Assets and Liabilities. The actual IRS compliance fee may differ from the estimate and that difference may be material.
13. |
SUBSEQUENT EVENTS |
Management’s evaluation of the impact of all subsequent events on the Funds’ financial statements was completed through the date the financial statements were available to be issued and the following item was noted:
Effective October 18, 2023, the Syndicated Credit Agreement to which the Participating Funds are party was amended to extend the maturity date to October 2024 under the same terms.
N O T E S T O F I N A N C I A L S T A T E M E N T S |
89 |
Board Review and Approval of Investment Advisory Contract
iShares Asia 50 ETF, iShares International Developed Property ETF (each the “Fund”)
Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Board Members who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Board Members”), is required annually to consider the approval of the Investment Advisory Agreement between the Trust and BFA (the “Advisory Agreement”) on behalf of the Fund. The Board’s consideration entails a year-long process whereby the Board and its committees (composed solely of Independent Board Members) assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. The Independent Board Members requested, and BFA provided, such information as the Independent Board Members, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Agreement. At meetings on May 2, 2023 and May 15, 2023, a committee composed of all of the Independent Board Members (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or its independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June 7-8, 2023, the Board, including the Independent Board Members, reviewed the additional information provided by management in response to these requests.
After extensive discussions and deliberations, the Board, including all of the Independent Board Members, approved the continuance of the Advisory Agreement for the Fund, based on a review of qualitative and quantitative information provided by BFA and their cumulative experience as Board Members. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Independent Board Members were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the continuance of the Advisory Agreement for the Fund, the Board, including the Independent Board Members, considered various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) potential economies of scale and the sharing of related benefits; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, none of which was controlling, and conclusions that formed the basis for the Board, including the Independent Board Members, to approve the continuance of the Advisory Agreement are discussed below.
Expenses and Performance of the Fund: The Board reviewed statistical information prepared by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, fees and expenses of other fund(s) in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs, objectively selected by Broadridge as comprising the Fund’s applicable expense peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board noted that, due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances. The Board also noted that the investment advisory fee rate and overall expenses (net of any waivers and reimbursements) for the Fund were within range of the median of the investment advisory fee rates and overall expenses (net of any waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds.
In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for the one-year, three-year, five-year, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2022, to that of such relevant comparison fund(s) for the same periods. The Board noted that the Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including additional detailed information as requested by the Board, was also considered. The Board noted that the Fund generally performed in line with its underlying index over the relevant periods.
Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Nature, Extent and Quality of Services Provided: Based on management’s representations, including information about ongoing enhancements and initiatives with respect to the iShares business, including with respect to capital markets support and analysis, technology, portfolio management, product design and quality, compliance and risk management, global public policy and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Agreement for the coming year as compared with the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to support the iShares funds and their shareholders and have made significant investments into the iShares business. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund, including related programs implemented pursuant to regulatory requirements. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the May 2, 2023 meeting and throughout the year, and matters related to BFA’s portfolio compliance program and other compliance programs and services.
Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided to the Fund under the Advisory Agreement supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates: The Board reviewed information about the estimated profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Agreement), and other sources of revenue and expense to BFA
90 |
2 0 2 3 I S H A R E S S E M I - 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 |
Board Review and Approval of Investment Advisory Contract (continued)
and its affiliates from the Fund’s operations for the last calendar year. The Board reviewed BlackRock’s methodology for calculating estimated profitability of the iShares funds, noting that the 15(c) Committee and the Board had focused on the methodology and profitability presentation. The Board recognized that profitability may be affected by numerous factors, including, among other things, fee waivers by BFA, the types of funds managed, expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at individual fund levels is challenging. The Board discussed with management the sources of direct and ancillary revenue, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Fund. The Board also discussed BFA’s estimated profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below).
Based on this review, the Board concluded that the information considered with respect to the profits realized by BFA and its affiliates under the Advisory Agreement and from other relationships between the Fund and BFA and/or its affiliates, if any, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Economies of Scale: The Board reviewed information and considered the extent to which economies of scale might be realized as the assets of the Fund increase, noting that the issue of potential economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical estimated profitability (as discussed above), including BFA’s and its affiliates’ estimated costs in providing services. The estimated cost information distinguished, among other things, between fixed and variable costs, and showed how the level and nature of fixed and variable costs may impact the existence or size of scale benefits, with the Board recognizing that potential economies of scale are difficult to measure. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board noted that the Advisory Agreement for the Fund did not provide for breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that it would continue to assess the appropriateness of adding breakpoints in the future.
The Board concluded that this review of potential economies of scale and the sharing of related benefits, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates: The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds and institutional separate accounts (collectively, the “Other Accounts”). The Board acknowledged BFA’s representation that the iShares funds are fundamentally different investment vehicles from the Other Accounts.
The Board received detailed information regarding how the Other Accounts generally differ from the Fund, including in terms of the types of services and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded investment vehicle, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board noted that BFA and its affiliates do not manage Other Accounts withsubstantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate.
The Board considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement and noted that the investment advisory fee rate under the Advisory Agreement for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.
Other Benefits to BFA and/or its Affiliates: The Board reviewed other benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, both direct and indirect, including, but not limited to, payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities, as applicable (which was included in the profit margins reviewed by the Board pursuant to BFA’s estimated profitability methodology), payment of advisory fees or other fees to BFA (or its affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services or other services, and BlackRock’s profile in the investment community. The Board further considered other direct benefits that might accrue to BFA, including the potential for reduction in the Fund’s expenses that are borne by BFA under the “all-inclusive” management fee arrangement, due in part to the size and scope of BFA’s investment operations servicing the Fund (and other funds in the iShares complex) as well as in response to a changing market environment. The Board also reviewed and considered information provided by BFA concerning authorized participant primary market order processing services that are provided by BlackRock Investments, LLC (“BRIL”), an affiliate of BFA, and paid for by authorized participants under the ETF Servicing Platform. The Board also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Agreement for the coming year.
Conclusion: Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Board Members, determined that the Fund’s investment advisory fee rate under the Advisory Agreement does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Agreement for the coming year.
B O A R D R E V I E W A N D A P P R O V A L O F I N V E S T M E N T A D V I S O R Y C O N T R A C T |
91 |
Board Review and Approval of Investment Advisory Contract (continued)
iShares Blockchain and Tech ETF, iShares International Dividend Growth ETF (each the “Fund”)
Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Board Members who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Board Members”), is required annually to consider the approval of the Investment Advisory Agreement between the Trust and BFA (the “Advisory Agreement”) on behalf of the Fund. The Board’s consideration entails a year-long process whereby the Board and its committees (composed solely of Independent Board Members) assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. The Independent Board Members requested, and BFA provided, such information as the Independent Board Members, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Agreement. At meetings on May 2, 2023 and May 15, 2023, a committee composed of all of the Independent Board Members (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or its independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June 7-8, 2023, the Board, including the Independent Board Members, reviewed the additional information provided by management in response to these requests.
After extensive discussions and deliberations, the Board, including all of the Independent Board Members, approved the continuance of the Advisory Agreement for the Fund, based on a review of qualitative and quantitative information provided by BFA and their cumulative experience as Board Members. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Independent Board Members were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the continuance of the Advisory Agreement for the Fund, the Board, including the Independent Board Members, considered various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) potential economies of scale and the sharing of related benefits; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, none of which was controlling, and conclusions that formed the basis for the Board, including the Independent Board Members, to approve the continuance of the Advisory Agreement are discussed below.
Expenses and Performance of the Fund: The Board reviewed statistical information prepared by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, fees and expenses of other fund(s) in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs, objectively selected by Broadridge as comprising the Fund’s applicable expense peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board noted that, due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances. The Board also noted that the investment advisory fee rate and overall expenses (net of any waivers and reimbursements) for the Fund were lower than the median of the investment advisory fee rates and overall expenses (net of any waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds.
In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for the one-year, three-year, five-year, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2022, to that of such relevant comparison fund(s) for the same periods. The Board noted that the Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including additional detailed information as requested by the Board, was also considered. The Board noted that the Fund generally performed in line with its underlying index over the relevant periods.
Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Nature, Extent and Quality of Services Provided: Based on management’s representations, including information about ongoing enhancements and initiatives with respect to the iShares business, including with respect to capital markets support and analysis, technology, portfolio management, product design and quality, compliance and risk management, global public policy and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Agreement for the coming year as compared with the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to support the iShares funds and their shareholders and have made significant investments into the iShares business. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund, including related programs implemented pursuant to regulatory requirements. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the May 2, 2023 meeting and throughout the year, and matters related to BFA’s portfolio compliance program and other compliance programs and services.
Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided to the Fund under the Advisory Agreement supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates: The Board reviewed information about the estimated profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Agreement), and other sources of revenue and expense to BFA
92 |
2 0 2 3 I S H A R E S S E M I - 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 |
Board Review and Approval of Investment Advisory Contract (continued)
and its affiliates from the Fund’s operations for the last calendar year. The Board reviewed BlackRock’s methodology for calculating estimated profitability of the iShares funds, noting that the 15(c) Committee and the Board had focused on the methodology and profitability presentation. The Board recognized that profitability may be affected by numerous factors, including, among other things, fee waivers by BFA, the types of funds managed, expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at individual fund levels is challenging. The Board discussed with management the sources of direct and ancillary revenue, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Fund. The Board also discussed BFA’s estimated profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below).
Based on this review, the Board concluded that the information considered with respect to the profits realized by BFA and its affiliates under the Advisory Agreement and from other relationships between the Fund and BFA and/or its affiliates, if any, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Economies of Scale: The Board reviewed information and considered the extent to which economies of scale might be realized as the assets of the Fund increase, noting that the issue of potential economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical estimated profitability (as discussed above), including BFA’s and its affiliates’ estimated costs in providing services. The estimated cost information distinguished, among other things, between fixed and variable costs, and showed how the level and nature of fixed and variable costs may impact the existence or size of scale benefits, with the Board recognizing that potential economies of scale are difficult to measure. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board noted that the Advisory Agreement for the Fund did not provide for breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that it would continue to assess the appropriateness of adding breakpoints in the future.
The Board concluded that this review of potential economies of scale and the sharing of related benefits, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates: The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds and institutional separate accounts (collectively, the “Other Accounts”). The Board acknowledged BFA’s representation that the iShares funds are fundamentally different investment vehicles from the Other Accounts.
The Board received detailed information regarding how the Other Accounts generally differ from the Fund, including in terms of the types of services and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded investment vehicle, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board noted that BFA and its affiliates do not manage Other Accounts withsubstantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate.
The Board considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement and noted that the investment advisory fee rate under the Advisory Agreement for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.
Other Benefits to BFA and/or its Affiliates: The Board reviewed other benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, both direct and indirect, including, but not limited to, payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities, as applicable (which was included in the profit margins reviewed by the Board pursuant to BFA’s estimated profitability methodology), payment of advisory fees or other fees to BFA (or its affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services or other services, and BlackRock’s profile in the investment community. The Board further considered other direct benefits that might accrue to BFA, including the potential for reduction in the Fund’s expenses that are borne by BFA under the “all-inclusive” management fee arrangement, due in part to the size and scope of BFA’s investment operations servicing the Fund (and other funds in the iShares complex) as well as in response to a changing market environment. The Board also reviewed and considered information provided by BFA concerning authorized participant primary market order processing services that are provided by BlackRock Investments, LLC (“BRIL”), an affiliate of BFA, and paid for by authorized participants under the ETF Servicing Platform. The Board also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Agreement for the coming year.
Conclusion: Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Board Members, determined that the Fund’s investment advisory fee rate under the Advisory Agreement does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Agreement for the coming year.
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Board Review and Approval of Investment Advisory Contract (continued)
iShares Emerging Markets Infrastructure ETF, iShares India 50 ETF (each the “Fund”)
Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Board Members who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Board Members”), is required annually to consider the approval of the Investment Advisory Agreement between the Trust and BFA (the “Advisory Agreement”) on behalf of the Fund. The Board’s consideration entails a year-long process whereby the Board and its committees (composed solely of Independent Board Members) assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. The Independent Board Members requested, and BFA provided, such information as the Independent Board Members, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Agreement. At meetings on May 2, 2023 and May 15, 2023, a committee composed of all of the Independent Board Members (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or its independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June 7-8, 2023, the Board, including the Independent Board Members, reviewed the additional information provided by management in response to these requests.
After extensive discussions and deliberations, the Board, including all of the Independent Board Members, approved the continuance of the Advisory Agreement for the Fund, based on a review of qualitative and quantitative information provided by BFA and their cumulative experience as Board Members. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Independent Board Members were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the continuance of the Advisory Agreement for the Fund, the Board, including the Independent Board Members, considered various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) potential economies of scale and the sharing of related benefits; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, none of which was controlling, and conclusions that formed the basis for the Board, including the Independent Board Members, to approve the continuance of the Advisory Agreement are discussed below.
Expenses and Performance of the Fund: The Board reviewed statistical information prepared by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, fees and expenses of other fund(s) in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs, objectively selected by Broadridge as comprising the Fund’s applicable expense peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board noted that, due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances. The Board also noted that the investment advisory fee rate and overall expenses (net of any waivers and reimbursements) for the Fund were higher than the median of the investment advisory fee rates and overall expenses (net of any waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds.
In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for the one-year, three-year, five-year, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2022, to that of such relevant comparison fund(s) for the same periods. The Board noted that the Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including additional detailed information as requested by the Board, was also considered. The Board noted that the Fund generally performed in line with its underlying index over the relevant periods.
Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Nature, Extent and Quality of Services Provided: Based on management’s representations, including information about ongoing enhancements and initiatives with respect to the iShares business, including with respect to capital markets support and analysis, technology, portfolio management, product design and quality, compliance and risk management, global public policy and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Agreement for the coming year as compared with the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to support the iShares funds and their shareholders and have made significant investments into the iShares business. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund, including related programs implemented pursuant to regulatory requirements. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the May 2, 2023 meeting and throughout the year, and matters related to BFA’s portfolio compliance program and other compliance programs and services.
Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided to the Fund under the Advisory Agreement supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates: The Board reviewed information about the estimated profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Agreement), and other sources of revenue and expense to BFA
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Board Review and Approval of Investment Advisory Contract (continued)
and its affiliates from the Fund’s operations for the last calendar year. The Board reviewed BlackRock’s methodology for calculating estimated profitability of the iShares funds, noting that the 15(c) Committee and the Board had focused on the methodology and profitability presentation. The Board recognized that profitability may be affected by numerous factors, including, among other things, fee waivers by BFA, the types of funds managed, expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at individual fund levels is challenging. The Board discussed with management the sources of direct and ancillary revenue, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Fund. The Board also discussed BFA’s estimated profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below).
Based on this review, the Board concluded that the information considered with respect to the profits realized by BFA and its affiliates under the Advisory Agreement and from other relationships between the Fund and BFA and/or its affiliates, if any, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Economies of Scale: The Board reviewed information and considered the extent to which economies of scale might be realized as the assets of the Fund increase, noting that the issue of potential economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical estimated profitability (as discussed above), including BFA’s and its affiliates’ estimated costs in providing services. The estimated cost information distinguished, among other things, between fixed and variable costs, and showed how the level and nature of fixed and variable costs may impact the existence or size of scale benefits, with the Board recognizing that potential economies of scale are difficult to measure. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board noted that the Advisory Agreement for the Fund did not provide for breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that it would continue to assess the appropriateness of adding breakpoints in the future.
The Board concluded that this review of potential economies of scale and the sharing of related benefits, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates: The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds and institutional separate accounts (collectively, the “Other Accounts”). The Board acknowledged BFA’s representation that the iShares funds are fundamentally different investment vehicles from the Other Accounts.
The Board received detailed information regarding how the Other Accounts generally differ from the Fund, including in terms of the types of services and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded investment vehicle, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board noted that BFA and its affiliates do not manage Other Accounts withsubstantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate.
The Board considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement and noted that the investment advisory fee rate under the Advisory Agreement for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.
Other Benefits to BFA and/or its Affiliates: The Board reviewed other benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, both direct and indirect, including, but not limited to, payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities, as applicable (which was included in the profit margins reviewed by the Board pursuant to BFA’s estimated profitability methodology), payment of advisory fees or other fees to BFA (or its affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services or other services, and BlackRock’s profile in the investment community. The Board further considered other direct benefits that might accrue to BFA, including the potential for reduction in the Fund’s expenses that are borne by BFA under the “all-inclusive” management fee arrangement, due in part to the size and scope of BFA’s investment operations servicing the Fund (and other funds in the iShares complex) as well as in response to a changing market environment. The Board also reviewed and considered information provided by BFA concerning authorized participant primary market order processing services that are provided by BlackRock Investments, LLC (“BRIL”), an affiliate of BFA, and paid for by authorized participants under the ETF Servicing Platform. The Board also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Agreement for the coming year.
Conclusion: Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Board Members, determined that the Fund’s investment advisory fee rate under the Advisory Agreement does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Agreement for the coming year.
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Board Review and Approval of Investment Advisory Contract (continued)
iShares Europe ETF (the “Fund”)
Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Board Members who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Board Members”), is required annually to consider the approval of the Investment Advisory Agreement between the Trust and BFA (the “Advisory Agreement”) on behalf of the Fund. The Board’s consideration entails a year-long process whereby the Board and its committees (composed solely of Independent Board Members) assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. The Independent Board Members requested, and BFA provided, such information as the Independent Board Members, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Agreement. At meetings on May 2, 2023 and May 15, 2023, a committee composed of all of the Independent Board Members (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or its independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June 7-8, 2023, the Board, including the Independent Board Members, reviewed the additional information provided by management in response to these requests.
After extensive discussions and deliberations, the Board, including all of the Independent Board Members, approved the continuance of the Advisory Agreement for the Fund, based on a review of qualitative and quantitative information provided by BFA and their cumulative experience as Board Members. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Independent Board Members were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the continuance of the Advisory Agreement for the Fund, the Board, including the Independent Board Members, considered various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) potential economies of scale and the sharing of related benefits; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, none of which was controlling, and conclusions that formed the basis for the Board, including the Independent Board Members, to approve the continuance of the Advisory Agreement are discussed below.
Expenses and Performance of the Fund: The Board reviewed statistical information prepared by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, fees and expenses of other fund(s) in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs, objectively selected by Broadridge as comprising the Fund’s applicable expense peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board noted that, due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances. The Board also noted that the investment advisory fee rate and overall expenses (net of any waivers and reimbursements) for the Fund were higher than the median of the investment advisory fee rates and overall expenses (net of any waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds.
In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for the one-year, three-year, five-year, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2022, to that of such relevant comparison fund(s) for the same periods. The Board noted that the Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including additional detailed information as requested by the Board, was also considered. The Board noted that the Fund generally performed in line with its underlying index over the relevant periods.
Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Nature, Extent and Quality of Services Provided: Based on management’s representations, including information about ongoing enhancements and initiatives with respect to the iShares business, including with respect to capital markets support and analysis, technology, portfolio management, product design and quality, compliance and risk management, global public policy and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Agreement for the coming year as compared with the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to support the iShares funds and their shareholders and have made significant investments into the iShares business. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund, including related programs implemented pursuant to regulatory requirements. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the May 2, 2023 meeting and throughout the year, and matters related to BFA’s portfolio compliance program and other compliance programs and services.
Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided to the Fund under the Advisory Agreement supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates: The Board reviewed information about the estimated profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Agreement), and other sources of revenue and expense to BFA
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Board Review and Approval of Investment Advisory Contract (continued)
and its affiliates from the Fund’s operations for the last calendar year. The Board reviewed BlackRock’s methodology for calculating estimated profitability of the iShares funds, noting that the 15(c) Committee and the Board had focused on the methodology and profitability presentation. The Board recognized that profitability may be affected by numerous factors, including, among other things, fee waivers by BFA, the types of funds managed, expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at individual fund levels is challenging. The Board discussed with management the sources of direct and ancillary revenue, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Fund. The Board also discussed BFA’s estimated profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below).
Based on this review, the Board concluded that the information considered with respect to the profits realized by BFA and its affiliates under the Advisory Agreement and from other relationships between the Fund and BFA and/or its affiliates, if any, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Economies of Scale: The Board reviewed information and considered the extent to which economies of scale might be realized as the assets of the Fund increase, noting that the issue of potential economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical estimated profitability (as discussed above), including BFA’s and its affiliates’ estimated costs in providing services. The estimated cost information distinguished, among other things, between fixed and variable costs, and showed how the level and nature of fixed and variable costs may impact the existence or size of scale benefits, with the Board recognizing that potential economies of scale are difficult to measure. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board noted that the Advisory Agreement for the Fund already provided for breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund, on an aggregated basis with the assets of certain other iShares funds, increase. The Board noted that it would continue to assess the appropriateness of adding new or revised breakpoints in the future.
The Board concluded that this review of potential economies of scale and the sharing of related benefits, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates: The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds and institutional separate accounts (collectively, the “Other Accounts”). The Board acknowledged BFA’s representation that the iShares funds are fundamentally different investment vehicles from the Other Accounts.
The Board received detailed information regarding how the Other Accounts generally differ from the Fund, including in terms of the types of services and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded investment vehicle, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board noted that BFA and its affiliates do not manage Other Accounts withsubstantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate.
The Board considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement and noted that the investment advisory fee rate under the Advisory Agreement for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.
Other Benefits to BFA and/or its Affiliates: The Board reviewed other benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, both direct and indirect, including, but not limited to, payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities, as applicable (which was included in the profit margins reviewed by the Board pursuant to BFA’s estimated profitability methodology), payment of advisory fees or other fees to BFA (or its affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services or other services, and BlackRock’s profile in the investment community. The Board further considered other direct benefits that might accrue to BFA, including the potential for reduction in the Fund’s expenses that are borne by BFA under the “all-inclusive” management fee arrangement, due in part to the size and scope of BFA’s investment operations servicing the Fund (and other funds in the iShares complex) as well as in response to a changing market environment. The Board also reviewed and considered information provided by BFA concerning authorized participant primary market order processing services that are provided by BlackRock Investments, LLC (“BRIL”), an affiliate of BFA, and paid for by authorized participants under the ETF Servicing Platform. The Board also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Agreement for the coming year.
Conclusion: Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Board Members, determined that the Fund’s investment advisory fee rate under the Advisory Agreement does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Agreement for the coming year.
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Board Review and Approval of Investment Advisory Contract (continued)
iShares International Developed Small Cap Value Factor ETF (the “Fund”)
Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Board Members who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Board Members”), is required annually to consider the approval of the Investment Advisory Agreement between the Trust and BFA (the “Advisory Agreement”) on behalf of the Fund. The Board’s consideration entails a year-long process whereby the Board and its committees (composed solely of Independent Board Members) assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. The Independent Board Members requested, and BFA provided, such information as the Independent Board Members, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Agreement. At meetings on May 2, 2023 and May 15, 2023, a committee composed of all of the Independent Board Members (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or its independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June 7-8, 2023, the Board, including the Independent Board Members, reviewed the additional information provided by management in response to these requests.
After extensive discussions and deliberations, the Board, including all of the Independent Board Members, approved the continuance of the Advisory Agreement for the Fund, based on a review of qualitative and quantitative information provided by BFA and their cumulative experience as Board Members. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Independent Board Members were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the continuance of the Advisory Agreement for the Fund, the Board, including the Independent Board Members, considered various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) potential economies of scale and the sharing of related benefits; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, none of which was controlling, and conclusions that formed the basis for the Board, including the Independent Board Members, to approve the continuance of the Advisory Agreement are discussed below.
Expenses and Performance of the Fund: The Board reviewed statistical information prepared by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, fees and expenses of other fund(s) in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs, objectively selected by Broadridge as comprising the Fund’s applicable expense peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board noted that, due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances. The Board also noted that the investment advisory fee rate and overall expenses (net of any waivers and reimbursements) for the Fund were lower than the median of the investment advisory fee rates and overall expenses (net of any waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds.
In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for the one-year, three-year, five-year, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2022, to that of such relevant comparison fund(s) for the same periods. The Board noted that the Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including additional detailed information as requested by the Board, was also considered. The Board noted that the Fund generally performed in line with its underlying index over the relevant periods.
Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Nature, Extent and Quality of Services Provided: Based on management’s representations, including information about ongoing enhancements and initiatives with respect to the iShares business, including with respect to capital markets support and analysis, technology, portfolio management, product design and quality, compliance and risk management, global public policy and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Agreement for the coming year as compared with the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to support the iShares funds and their shareholders and have made significant investments into the iShares business. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund, including related programs implemented pursuant to regulatory requirements. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the May 2, 2023 meeting and throughout the year, and matters related to BFA’s portfolio compliance program and other compliance programs and services.
Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided to the Fund under the Advisory Agreement supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates: The Board reviewed information about the estimated profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Agreement), and other sources of revenue and expense to BFA
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Board Review and Approval of Investment Advisory Contract (continued)
and its affiliates from the Fund’s operations for the last calendar year. The Board reviewed BlackRock’s methodology for calculating estimated profitability of the iShares funds, noting that the 15(c) Committee and the Board had focused on the methodology and profitability presentation. The Board recognized that profitability may be affected by numerous factors, including, among other things, fee waivers by BFA, the types of funds managed, expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at individual fund levels is challenging. The Board discussed with management the sources of direct and ancillary revenue, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Fund. The Board also discussed BFA’s estimated profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below).
Based on this review, the Board concluded that the information considered with respect to the profits realized by BFA and its affiliates under the Advisory Agreement and from other relationships between the Fund and BFA and/or its affiliates, if any, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Economies of Scale: The Board reviewed information and considered the extent to which economies of scale might be realized as the assets of the Fund increase, noting that the issue of potential economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical estimated profitability (as discussed above), including BFA’s and its affiliates’ estimated costs in providing services. The estimated cost information distinguished, among other things, between fixed and variable costs, and showed how the level and nature of fixed and variable costs may impact the existence or size of scale benefits, with the Board recognizing that potential economies of scale are difficult to measure. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board noted that the Advisory Agreement for the Fund did not provide for any breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that during the June 7-8, 2023 meeting, the Board approved a permanent reduction to the advisory fee rate charged to the Fund. In addition, the Board noted that it would continue to assess the appropriateness of adding breakpoints in the future.
The Board concluded that this review of potential economies of scale and the sharing of related benefits, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates: The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds and institutional separate accounts (collectively, the “Other Accounts”). The Board acknowledged BFA’s representation that the iShares funds are fundamentally different investment vehicles from the Other Accounts.
The Board received detailed information regarding how the Other Accounts generally differ from the Fund, including in terms of the types of services and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded investment vehicle, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board noted that BFA and its affiliates do not manage Other Accounts withsubstantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate.
The Board considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement and noted that the investment advisory fee rate under the Advisory Agreement for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.
Other Benefits to BFA and/or its Affiliates: The Board reviewed other benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, both direct and indirect, including, but not limited to, payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities, as applicable (which was included in the profit margins reviewed by the Board pursuant to BFA’s estimated profitability methodology), payment of advisory fees or other fees to BFA (or its affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services or other services, and BlackRock’s profile in the investment community. The Board further considered other direct benefits that might accrue to BFA, including the potential for reduction in the Fund’s expenses that are borne by BFA under the “all-inclusive” management fee arrangement, due in part to the size and scope of BFA’s investment operations servicing the Fund (and other funds in the iShares complex) as well as in response to a changing market environment. The Board also reviewed and considered information provided by BFA concerning authorized participant primary market order processing services that are provided by BlackRock Investments, LLC (“BRIL”), an affiliate of BFA, and paid for by authorized participants under the ETF Servicing Platform. The Board also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Agreement for the coming year.
Conclusion: Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Board Members, determined that the Fund’s investment advisory fee rate under the Advisory Agreement does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Agreement for the coming year.
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Board Review and Approval of Investment Advisory Contract (continued)
iShares Latin America 40 ETF (the “Fund”)
Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Board Members who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Board Members”), is required annually to consider the approval of the Investment Advisory Agreement between the Trust and BFA (the “Advisory Agreement”) on behalf of the Fund. The Board’s consideration entails a year-long process whereby the Board and its committees (composed solely of Independent Board Members) assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. The Independent Board Members requested, and BFA provided, such information as the Independent Board Members, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Agreement. At meetings on May 2, 2023 and May 15, 2023, a committee composed of all of the Independent Board Members (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or its independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June 7-8, 2023, the Board, including the Independent Board Members, reviewed the additional information provided by management in response to these requests.
After extensive discussions and deliberations, the Board, including all of the Independent Board Members, approved the continuance of the Advisory Agreement for the Fund, based on a review of qualitative and quantitative information provided by BFA and their cumulative experience as Board Members. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Independent Board Members were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the continuance of the Advisory Agreement for the Fund, the Board, including the Independent Board Members, considered various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) potential economies of scale and the sharing of related benefits; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, none of which was controlling, and conclusions that formed the basis for the Board, including the Independent Board Members, to approve the continuance of the Advisory Agreement are discussed below.
Expenses and Performance of the Fund: The Board reviewed statistical information prepared by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, fees and expenses of other fund(s) in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs, objectively selected by Broadridge as comprising the Fund’s applicable expense peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board noted that, due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances. The Board also noted that the investment advisory fee rate and overall expenses (net of any waivers and reimbursements) for the Fund were lower than the median of the investment advisory fee rates and overall expenses (net of any waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds.
In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for the one-year, three-year, five-year, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2022, to that of such relevant comparison fund(s) for the same periods. The Board noted that the Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including additional detailed information as requested by the Board, was also considered. The Board noted that the Fund generally performed in line with its underlying index over the relevant periods.
Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Nature, Extent and Quality of Services Provided: Based on management’s representations, including information about ongoing enhancements and initiatives with respect to the iShares business, including with respect to capital markets support and analysis, technology, portfolio management, product design and quality, compliance and risk management, global public policy and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Agreement for the coming year as compared with the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to support the iShares funds and their shareholders and have made significant investments into the iShares business. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund, including related programs implemented pursuant to regulatory requirements. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the May 2, 2023 meeting and throughout the year, and matters related to BFA’s portfolio compliance program and other compliance programs and services.
Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided to the Fund under the Advisory Agreement supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates: The Board reviewed information about the estimated profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Agreement), and other sources of revenue and expense to BFA
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Board Review and Approval of Investment Advisory Contract (continued)
and its affiliates from the Fund’s operations for the last calendar year. The Board reviewed BlackRock’s methodology for calculating estimated profitability of the iShares funds, noting that the 15(c) Committee and the Board had focused on the methodology and profitability presentation. The Board recognized that profitability may be affected by numerous factors, including, among other things, fee waivers by BFA, the types of funds managed, expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at individual fund levels is challenging. The Board discussed with management the sources of direct and ancillary revenue, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Fund. The Board also discussed BFA’s estimated profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below).
Based on this review, the Board concluded that the information considered with respect to the profits realized by BFA and its affiliates under the Advisory Agreement and from other relationships between the Fund and BFA and/or its affiliates, if any, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Economies of Scale: The Board reviewed information and considered the extent to which economies of scale might be realized as the assets of the Fund increase, noting that the issue of potential economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical estimated profitability (as discussed above), including BFA’s and its affiliates’ estimated costs in providing services. The estimated cost information distinguished, among other things, between fixed and variable costs, and showed how the level and nature of fixed and variable costs may impact the existence or size of scale benefits, with the Board recognizing that potential economies of scale are difficult to measure. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board noted that the Advisory Agreement for the Fund already provided for breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund, on an aggregated basis with the assets of certain other iShares funds, increase. The Board noted that it would continue to assess the appropriateness of adding new or revised breakpoints in the future.
The Board concluded that this review of potential economies of scale and the sharing of related benefits, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates: The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds and institutional separate accounts (collectively, the “Other Accounts”). The Board acknowledged BFA’s representation that the iShares funds are fundamentally different investment vehicles from the Other Accounts.
The Board received detailed information regarding how the Other Accounts generally differ from the Fund, including in terms of the types of services and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded investment vehicle, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board noted that BFA and its affiliates do not manage Other Accounts withsubstantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate.
The Board considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement and noted that the investment advisory fee rate under the Advisory Agreement for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.
Other Benefits to BFA and/or its Affiliates: The Board reviewed other benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, both direct and indirect, including, but not limited to, payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities, as applicable (which was included in the profit margins reviewed by the Board pursuant to BFA’s estimated profitability methodology), payment of advisory fees or other fees to BFA (or its affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services or other services, and BlackRock’s profile in the investment community. The Board further considered other direct benefits that might accrue to BFA, including the potential for reduction in the Fund’s expenses that are borne by BFA under the “all-inclusive” management fee arrangement, due in part to the size and scope of BFA’s investment operations servicing the Fund (and other funds in the iShares complex) as well as in response to a changing market environment. The Board also reviewed and considered information provided by BFA concerning authorized participant primary market order processing services that are provided by BlackRock Investments, LLC (“BRIL”), an affiliate of BFA, and paid for by authorized participants under the ETF Servicing Platform. The Board also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Agreement for the coming year.
Conclusion: Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Board Members, determined that the Fund’s investment advisory fee rate under the Advisory Agreement does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Agreement for the coming year.
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Supplemental Information (unaudited)
Section 19(a) Notices
The amounts and sources of distributions reported are estimates and are being provided pursuant to regulatory requirements and are not being provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon each Fund’s investment experience during the year and may be subject to changes based on tax regulations. Shareholders will receive a Form 1099-DIV each calendar year that will inform them how to report these distributions for federal income tax purposes.
September 30, 2023
Total Cumulative Distributions for the Fiscal Year-to-Date |
% Breakdown of the Total Cumulative Distributions for the Fiscal Year-to-Date |
|||||||||||||||||||||||||||||||||||
iShares ETF | Net Investment Income |
Net Realized Capital Gains |
Return of Capital |
Total Per Share |
Net Investment Income |
Net Realized Capital Gains |
Return of Capital |
Total Per Share |
||||||||||||||||||||||||||||
Emerging Markets Infrastructure(a) |
$ | 0.224714 | $ | — | $ | 0.000026 | $ | 0.224740 | 100 | % | — | % | 0 | %(b) | 100 | % | ||||||||||||||||||||
India 50(a) |
0.072195 | — | 0.001405 | 0.073600 | 98 | — | 2 | 100 | ||||||||||||||||||||||||||||
International Developed Property |
0.494938 | — | — | 0.494938 | 100 | — | — | 100 | ||||||||||||||||||||||||||||
Latin America 40(a) |
0.417749 | — | 0.060988 | 0.478737 | 87 | — | 13 | 100 |
(a) |
The Fund estimates that it has distributed more than its net investment income and net realized capital gains; therefore, a portion of the distribution may be a return of capital. A return of capital may occur, for example, when some or all of the shareholder’s investment in the Fund is returned to the shareholder. A return of capital does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. When distributions exceed total return performance, the difference will incrementally reduce the Fund’s net asset value per share. |
(b) |
Rounds to less than 1%. |
Tailored Shareholder Reports for Open-End Mutual Funds and ETFs
Effective January 24, 2023, the SEC adopted rule and form amendments to require open-end mutual funds and ETFs to transmit concise and visually engaging streamlined annual and semiannual reports to shareholders that highlight key information. Other information, including financial statements, will no longer appear in a streamlined shareholder report but must be available online, delivered free of charge upon request, and filed on a semiannual basis on Form N-CSR. The rule and form amendments have a compliance date of July 24, 2024. At this time, management is evaluating the impact of these amendments on the shareholder reports for the Funds.
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Electronic Delivery
Shareholders can sign up for e-mail notifications announcing that the shareholder report or prospectus has been posted on the iShares website at iShares.com. Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail.
To enroll in electronic delivery:
• |
Go to icsdelivery.com. |
• |
If your brokerage firm is not listed, electronic delivery may not be available. Please contact your broker-dealer or financial advisor. |
Householding
Householding is an option available to certain fund investors. Householding is a method of delivery, based on the preference of the individual investor, in which a single copy of certain shareholder documents and Rule 30e-3 notices can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.
Availability of Quarterly Schedule of Investments
The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to their reports on Form N-PORT. The Funds’ Forms N-PORT are available on the SEC’s website at sec.gov. Additionally, each Fund makes its portfolio holdings for the first and third quarters of each fiscal year available at iShares.com/fundreports.
Availability of Proxy Voting Policies and Proxy Voting Records
A description of the policies and procedures that the iShares Funds use to determine how to vote proxies relating to portfolio securities and information about how the iShares Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request (1) by calling toll-free 1-800-474-2737; (2) on the iShares website at iShares.com; and (3) on the SEC website at sec.gov.
A description of the Trust’s policies and procedures with respect to the disclosure of the Fund’s portfolio securities is available in the Fund Prospectus. The Fund discloses its portfolio holdings daily and provides information regarding its top holdings in Fund fact sheets at iShares.com.
G E N E R A L I N F O R M A T I O N |
103 |
Glossary of Terms Used in this Report
Portfolio Abbreviation
ADR | American Depositary Receipt | |
GDR | Global Depositary Receipt | |
NVDR | Non-Voting Depositary Receipt | |
NVS | Non-Voting Shares | |
PJSC | Public Joint Stock Company | |
REIT | Real Estate Investment Trust |
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2 0 2 3 I S H A R E S S E M I - 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 |
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This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus.
Investing involves risk, including possible loss of principal.
The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).
The iShares Funds are not sponsored, endorsed, issued, sold or promoted by ICE Data Indices, LLC, FTSE International Limited, India Index Services & Products Ltd., Morningstar Inc. or S&P Dow Jones Indices LLC, nor do these companies make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the companies listed above.
©2023 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.
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