LOGO

  MARCH 31, 2023

 

 

   

 

  

2023 Annual Report

 

 

iShares Trust

·  iShares Global Comm Services ETF | IXP | NYSE Arca

·  iShares Global Consumer Discretionary ETF | RXI | NYSE Arca

·  iShares Global Consumer Staples ETF | KXI | NYSE Arca

·  iShares Global Energy ETF | IXC | NYSE Arca

·  iShares Global Financials ETF | IXG | NYSE Arca

·  iShares Global Healthcare ETF | IXJ | NYSE Arca

·  iShares Global Industrials ETF | EXI | NYSE Arca

·  iShares Global Materials ETF | MXI | NYSE Arca

·  iShares Global Tech ETF | IXN | NYSE Arca

·  iShares Global Utilities ETF | JXI | NYSE Arca

 


The Markets in Review

Dear Shareholder,

Significant economic headwinds emerged during the 12-month reporting period ended March 31, 2023, as investors navigated changing economic conditions and volatile markets. The U.S. economy shrank in the first half of 2022 before returning to modest growth in the second half of the year, marking a shift to a more challenging post-reopening economic environment. Changes in consumer spending patterns and a tight labor market led to elevated inflation, which reached a 40-year high before beginning to moderate.

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

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

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

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

While we favor an overweight to equities in the long term, we prefer an underweight stance on equities overall in the near term. Expectations for corporate earnings remain elevated, which seems inconsistent with the possibility of a recession. Nevertheless, we are overweight on emerging market stocks as we believe a weakening U.S. dollar provides a supportive backdrop. We also see long-term opportunities in credit, where we believe that valuations are appealing and higher yields provide attractive income, although we are neutral on credit in the near term, as we’re concerned about tightening credit and financial conditions. However, we believe there are still some strong opportunities for a six- to twelve-month horizon, particularly short-term U.S. Treasuries, global inflation-linked bonds, and emerging market bonds denominated in local currency.

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

 

LOGO

Rob Kapito

President, BlackRock, Inc.

LOGO

Rob Kapito

President, BlackRock, Inc.

 

Total Returns as of March 31, 2023  
     
        6-Month           12-Month    
   

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

    15.62%        (7.73)%   
   

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

    9.14           (11.61)      
   

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

    27.27           (1.38)      
   

Emerging market equities
(MSCI Emerging Markets Index)

    14.04           (10.70)      
   

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

    1.93           2.52       
   

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

    4.38           (6.90)      
   

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

    4.89           (4.78)      
   

Tax-exempt municipal bonds
(Bloomberg Municipal Bond Index)

    7.00           0.26       
   

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

    7.88           (3.35)      
Past performance is not an indication of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.

 

 

 

2  

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


Table of Contents

 

     Page  

 

 

The Markets in Review

     2  

Annual Report:

  

Market Overview

     4  

Fund Summary

     5  

About Fund Performance

     25  

Disclosure of Expenses

     25  

Schedules of Investments

     26  

Financial Statements

  

Statements of Assets and Liabilities

     64  

Statements of Operations

     67  

Statements of Changes in Net Assets

     70  

Financial Highlights

     75  

Notes to Financial Statements

     85  

Report of Independent Registered Public Accounting Firm

     96  

Important Tax Information

     97  

Statement Regarding Liquidity Risk Management Program

     98  

Supplemental Information

     99  

Trustee and Officer Information

     101  

General Information

     104  

Glossary of Terms Used in this Report

     105  

 

 

 


Market Overview

 

iShares Trust

Global Market Overview

Global equity markets declined during the 12 months ended March 31, 2023 (“reporting period”). The MSCI ACWI, a broad global equity index that includes both developed and emerging markets, returned -7.44% in U.S. dollar terms for the reporting period. In the first half of the reporting period, concerns about the state of the global economy in the face of high inflation and rapidly rising interest rates drove stocks sharply lower. However, stock prices recovered somewhat in the reporting period’s second half, as economic growth proved resilient despite its slower pace.

Inflation was a significant factor in equity markets, and while its impact varied by country, most major economies experienced substantial inflation during the reporting period. This drove a wave of monetary tightening by most of the world’s central banks, which sent interest rates and borrowing costs sharply higher. The U.S. Federal Reserve (“Fed”) raised interest rates eight times, driving an increase in the value of the U.S. dollar relative to most other currencies. Commodities prices were volatile, and as the reporting period began, disruptions in the wake of Russia’s invasion of Ukraine meant high prices for energy commodities and some foods. While oil, gas, and most other commodities declined as markets adjusted to the war’s disruption, elevated prices exacerbated inflationary pressure.

The U.S. economy recovered from a decline in the first half of 2022 to post modest growth in the third and fourth quarters of 2022. Consumers continued to power the economy with growing spending, despite higher prices for many consumer goods and services. The strong labor market supported spending as unemployment remained very low, at one point dropping to the lowest recorded level since 1969. Furthermore, the labor force participation rate—which measures the total proportion of employed persons of working age—rose, indicating that more people were being drawn into the labor force. Amid tightening labor supply, wages rose significantly, with the largest gains at the lower end of the wage spectrum.

In addition to its interest rate increases, the Fed also started to reduce the size of its balance sheet by reducing the store of U.S. Treasuries it had accumulated to stabilize markets in the early phases of the coronavirus pandemic. While the Fed indicated that more tightening could be needed to achieve its long-term inflation goal, it sounded a more cautious note about the potential for further interest rate increases near the end of the reporting period.

European stocks outpaced most other regions of the globe, advancing modestly for the reporting period despite slowing economic growth. European stocks benefited from a solid recovery following the early phases of the war in Ukraine. While the conflict disrupted critical natural gas supplies, new sources were secured and prices began to decline, while a warm winter helped moderate consumption. The European Central Bank (“ECB”) responded to the highest inflation since the introduction of the euro by raising interest rates six times.

While inflation was somewhat more moderate in the Asia-Pacific region, stocks there declined amid higher interest rates and disruption from coronavirus-related lockdowns in China. However, China relaxed its strict anti-coronavirus protocols in December 2022, boosting analysts’ expectations for future growth in the region. Emerging market stocks declined substantially, pressured by slowing economic growth and a stronger U.S. dollar. The Fed’s interest rate increases weighed on emerging market equities by making U.S. assets relatively more attractive.

 

 

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Fund Summary as of March 31, 2023     iShares® Global Comm Services ETF

 

Investment Objective

The iShares Global Comm Services ETF (the “Fund”) seeks to track the investment results of an index composed of global equities in the communication services sector, as represented by the S&P Global 1200 Communication Services 4.5/22.5/45 Capped IndexTM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

    Average Annual Total Returns            Cumulative Total Returns  
 

 

 

      
      1 Year      5 Years      10 Years                1 Year      5 Years      10 Years  

Fund NAV

    (12.16 )%       4.50      4.43%          (12.16 )%       24.62      54.24

Fund Market

    (12.27      4.42        4.42             (12.27      24.14        54.06  

Index

    (12.49      4.71        4.44                   (12.49      25.90        54.36  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

Index performance through January 30, 2013 is calculated using currency exchange (FX) rates corresponding to 5:15 P.M. ET. Index performance beginning on January 31, 2013 is calculated using FX rates corresponding to World Market Reuters 4:00 P.M. London.

Index performance through June 23, 2019 reflects the performance of the S&P Global 1200 Communication Services Sector IndexTM. Index performance beginning on June 24, 2019 reflects the performance of S&P Global 1200 Communication Services 4.5/22.5/45 Capped IndexTM.

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

Expense Example

 

Actual     Hypothetical 5% Return           

 

 

   

 

 

      
 

Beginning

Account Value

(10/01/22)

 

 

 

      

Ending

Account Value

(03/31/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

   

Beginning      

Account Value      

(10/01/22)      

 

 

 

   

Ending

Account Value

(03/31/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

      

Annualized

Expense

Ratio

 

 

 

  $      1,000.00          $      1,229.40          $        2.39       $      1,000.00             $      1,022.80          $        2.17          0.43

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

 

F U N D   S U M M A R Y

  5


Fund Summary as of March 31, 2023   (continued)    iShares® Global Comm Services ETF

 

Portfolio Management Commentary

Global communication services stocks declined during the reporting period amid macroeconomic and inflation-related headwinds. Revenues for media and entertainment companies were challenged by a downturn in advertising spending and increased competition for subscribers as more companies pivoted away from legacy TV toward streaming. Additionally, stagnating subscriber growth in broadband services pressured companies in the cable and satellite industry.

U.S. communication services stocks, which represented 65% of the Index on average during the reporting period, detracted the most from the Index’s return. The media and entertainment industry led the decline. Rising inflation cut into revenues for companies focused on search and digital advertising, leading to hiring slowdowns, layoffs, and other methods of cost-cutting. Many U.S. and global businesses reduced their marketing budgets amid economic uncertainty, dampening prospects for U.S. companies that derive a substantial portion of their revenue from online advertisements. Some U.S. media and entertainment companies encountered stiff competition for subscribers from foreign-owned video and social media platforms, exacerbating the industry downturn. Similarly, costs associated with acquiring and maintaining subscribers on streaming platforms curbed the profits of an entertainment conglomerate. Inflation’s effect on consumer spending habits also weighed on the company’s performance, as its theme park revenues fell short of analyst expectations. Stocks of U.S. cable and satellite companies declined markedly during the reporting period. Market share gains by wireless telecommunications firms in broadband internet contributed to flat subscriber numbers for major cable providers.

South Korean interactive media and services companies detracted from the Index’s performance, as investor concerns over the planned acquisition of a U.S. e-commerce site weighed on a top online portal operator. In Japan, entertainment stocks weighed on performance as a manufacturer of gaming systems lowered its financial outlook based on weakening demand. On the upside, the Chinese interactive media and services industry contributed to the Index’s return, buoyed by an easing of China’s coronavirus pandemic-related restrictions.

Portfolio Information

 

INDUSTRY ALLOCATION

 

   
Industry    

Percent of

Total Investments

 

(a) 

Interactive Media & Services

    47.6

Diversified Telecommunication Services

    19.4  

Entertainment

    15.8  

Media

    9.4  

Wireless Telecommunication Services

    7.8  

GEOGRAPHIC ALLOCATION

 

   
Country/Geographic Region    

Percent of

Total Investments

 

(a) 

United States

    66.9

China

    10.4  

Japan

    7.3  

Canada

    2.7  

Germany

    2.3  

United Kingdom

    2.2  

France

    1.4  

Spain

    1.3  

Australia

    1.1  

South Korea

    1.1  

Other (each representing less than 1%)

    3.3  

 

  (a) 

Excludes money market funds.

 

 

 

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Fund Summary as of March 31, 2023    iShares® Global Consumer Discretionary ETF

 

Investment Objective

The iShares Global Consumer Discretionary ETF (the “Fund”) seeks to track the investment results of an index composed of global equities in the consumer discretionary sector, as represented by the S&P Global 1200 Consumer Discretionary (Sector) Capped IndexTM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

    Average Annual Total Returns           Cumulative Total Returns  
 

 

 

     
      1 Year      5 Years      10 Years               1 Year      5 Years      10 Years  

Fund NAV

    (6.12 )%       6.66      9.44%         (6.12 )%       38.02      146.45

Fund Market

    (6.27      6.63        9.42            (6.27      37.83        146.09  

Index

    (6.66      6.77        9.46                  (6.66      38.78        146.93  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

Index performance through January 30, 2013 is calculated using currency exchange (FX) rates corresponding to 5:15 P.M. ET. Index performance beginning on January 31, 2013 is calculated using FX rates corresponding to World Market Reuters 4:00 P.M. London.

Index performance through September 22, 2019 reflects the performance of the S&P Global 1200 Consumer Discretionary Sector IndexTM. Index performance beginning on September 23, 2019 reflects the performance of the S&P Global 1200 Consumer Discretionary (Sector) Capped IndexTM.

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

Expense Example

 

Actual     Hypothetical 5% Return           

 

 

   

 

 

      
 

Beginning

Account Value

(10/01/22)

 

 

 

      

Ending

Account Value

(03/31/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

   

Beginning      

Account Value      

(10/01/22)      

 

 

 

   

Ending

Account Value

(03/31/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

      

Annualized

Expense

Ratio

 

 

 

  $      1,000.00          $      1,192.00          $        2.30       $      1,000.00             $      1,022.80          $        2.12          0.42

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

 

F U N D   S U M M A R Y

  7


Fund Summary as of March 31, 2023   (continued)    iShares® Global Consumer Discretionary ETF

 

Portfolio Management Commentary

Global consumer discretionary stocks declined for the reporting period, as supply chain disruptions diminished inventories and rising inflation led consumers to focus their spending more on essentials than on discretionary items. In the U.S., which represented approximately 59% of the Index on average, automobile manufacturers detracted the most from the Index’s performance, followed by the internet and direct marketing retail industry.

A substantial decline in new car sales during the reporting period weighed on the U.S. automobiles and components industry. In 2022, the annual total of new vehicle purchases in the U.S. dropped to its lowest level since 2011. Several factors slowed automobile production, including a global shortage of semiconductor chips, the continuing war in Ukraine, and COVID-19-related lockdowns in China that shut down factories. Against this backdrop, investors lost confidence in a leading maker of electric vehicles as signs emerged of weakening demand for its products in the U.S. and China. The internet and direct marketing retail industry in the U.S. also weighed on the Index’s performance. Sales declined for some large online retailers as U.S. consumers embraced shopping at brick-and-mortar stores. The markets also reacted negatively to projections of weak holiday sales coupled with historically high operating costs.

The Japanese automobiles and components industry ended the reporting period lower as inventory shortfalls translated into weak vehicle sales. Consumer durables equities in Japan also trailed, following the broader Japanese market lower in August 2022 amid investor concerns that interest rate raises by the Fed could depress economic activity. In China, stocks of e-commerce companies fell due to investor concerns about stricter government regulation in the wake of a consolidation of power by President Xi Jinping.

On the upside, the consumer durables industry in France and Switzerland supported the Index’s performance, benefiting from robust year-over-year growth in sales for luxury fashion retailers. Dutch internet and direct marketing retail stocks also contributed, as the food service businesses of an e-commerce conglomerate showed robust growth.

Portfolio Information

 

INDUSTRY ALLOCATION

 

   
Industry    

Percent of

Total Investments

 

(a) 

Consumer Discretionary Distribution & Retail

    34.8

Automobiles & Components

    25.4  

Consumer Services

    19.9  

Consumer Durables & Apparel

    19.9  

GEOGRAPHIC ALLOCATION

 

   
Country/Geographic Region    

Percent of

Total Investments

 

(a) 

United States

    56.4

Japan

    11.6  

France

    7.5  

China

    7.3  

Germany

    3.7  

United Kingdom

    2.5  

Switzerland

    1.8  

Netherlands

    1.7  

Italy

    1.6  

Spain

    1.3  

Canada

    1.2  

Australia

    1.2  

Other (each representing less than 1%)

    2.2  

 

  (a) 

Excludes money market funds.

 

 

 

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Fund Summary as of March 31, 2023    iShares® Global Consumer Staples ETF

 

Investment Objective

The iShares Global Consumer Staples ETF (the “Fund”) seeks to track the investment results of an index composed of global equities in the consumer staples sector, as represented by the S&P Global 1200 Consumer Staples (Sector) Capped IndexTM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

    Average Annual Total Returns            Cumulative Total Returns  
 

 

 

      
      1 Year      5 Years      10 Years                1 Year      5 Years      10 Years  

Fund NAV

    1.56      6.80      6.58%          1.56      38.95      89.07

Fund Market

    1.75        6.80        6.57             1.75        38.94        88.90  

Index

    1.17        6.70        6.51                   1.17        38.30        87.83  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

Index performance through January 30, 2013 is calculated using currency exchange (FX) rates corresponding to 5:15 P.M. ET. Index performance beginning on January 31, 2013 is calculated using FX rates corresponding to World Market Reuters 4:00 P.M. London.

Index performance through June 23, 2019 reflects the performance of the S&P Global 1200 Consumer Staples Sector IndexTM. Index performance beginning on June 24, 2019 reflects the performance of the S&P Global 1200 Consumer Staples (Sector) Capped IndexTM.

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

Expense Example

 

Actual     Hypothetical 5% Return           

 

 

   

 

 

      
 

Beginning

Account Value

(10/01/22)

 

 

 

      

Ending

Account Value

(03/31/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

   

Beginning      

Account Value      

(10/01/22)      

 

 

 

   

Ending

Account Value

(03/31/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

      

Annualized

Expense

Ratio

 

 

 

  $      1,000.00          $      1,163.90          $        2.27       $      1,000.00             $      1,022.80          $        2.12          0.42

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

 

F U N D   S U M M A R Y

  9


Fund Summary as of March 31, 2023   (continued)    iShares® Global Consumer Staples ETF

 

Portfolio Management Commentary

Despite rising interest rates and concerns about an economic slowdown, global consumer staples stocks advanced slightly for the reporting period. Because consumer staples products are typically in demand regardless of the economic environment, consumer staples stocks are often less affected by negative economic trends. Nonetheless, in an environment of elevated inflation, consumers reduced their purchases of some goods and increasingly sought bargains and purchased off-brand products.

U.S. stocks contributed the most to the Index’s return, led by the soft drinks and non-alcoholic beverages industry. U.S. consumer spending grew notably amid low unemployment and rising wages. Sales and profits in the industry grew as grocery shoppers responded to high inflation by increasing purchases of packaged foods relative to fresh foods such as meat and produce. Consumers’ willingness to tolerate price increases for the convenience of pre-packaged foods allowed companies in the industry to offset higher costs of inputs and transportation. Consequently, the industry’s profit margins remained healthy despite the economic headwinds. Sales of energy drinks also grew, as new varieties with vitamins and alternative sweeteners boosted sales.

The French personal care products industry also contributed to the Index’s performance amid strong sales of cosmetics. Despite high inflation, many consumers viewed personal care products to be a small luxury for which they were willing to pay higher prices. Strong demand from North America and Europe helped offset declines in Asian sales due to China’s COVID-19 lockdowns. The stock of a Swedish company in the food, beverage, and tobacco industry also gained amid a move toward smokeless products before being acquired by a large multinational company.

On the downside, Swiss consumer staples stocks declined, particularly the packaged foods and meats industry. Sales of branded items declined as consumers reduced their purchases following price increases. Furthermore, higher prices were insufficient to cover the rise in input costs, pressuring profit margins. To support earnings, the industry eliminated some less profitable product lines in an effort to bolster profitability at the expense of overall revenue growth.

Portfolio Information

 

INDUSTRY ALLOCATION

 

   
Industry    

Percent of

Total Investments

 

(a) 

Packaged Foods & Meats

    20.9

Household Products

    14.9  

Consumer Staples Merchandise Retail

    14.1  

Soft Drinks & Non-alcoholic Beverages

    12.6  

Personal Care Products

    9.4  

Tobacco

    8.8  

Food Retail

    6.9  

Distillers & Vintners

    5.1  

Brewers

    4.3  

Agricultural Products & Services

    1.4  

Food Distributors

    1.0  

Other (each representing less than 1%)

    0.6  

GEOGRAPHIC ALLOCATION

 

   
Country/Geographic Region    

Percent of

Total Investments

 

(a) 

United States

    58.0

United Kingdom

    11.6  

Switzerland

    8.8  

Japan

    5.4  

France

    5.2  

Canada

    2.0  

Netherlands

    1.7  

Belgium

    1.6  

Australia

    1.5  

Mexico

    1.1  

Other (each representing less than 1%)

    3.1  

 

  (a) 

Excludes money market funds.

 

 

 

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Fund Summary as of March 31, 2023    iShares® Global Energy ETF

 

Investment Objective

The iShares Global Energy ETF (the “Fund”) seeks to track the investment results of an index composed of global equities in the energy sector, as represented by the S&P Global 1200 Energy Sector 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.

On February 16, 2023, the Board approved a proposal to change the Fund’s index to S&P Global 1200 Energy 4.5/22.5/45 Capped Index. This change became effective on April 20, 2023.

Performance

 

    Average Annual Total Returns            Cumulative Total Returns  
 

 

 

      
      1 Year      5 Years      10 Years                1 Year      5 Years      10 Years  

Fund NAV

    9.39      7.06      3.33%          9.39      40.63      38.75

Fund Market

    9.43        7.05        3.33             9.43        40.60        38.80  

Index

    8.45        6.52        3.01                   8.45        37.15        34.55  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

Index performance through January 30, 2013 is calculated using currency exchange (FX) rates corresponding to 5:15 P.M. ET. Index performance beginning on January 31, 2013 is calculated using FX rates corresponding to World Market Reuters 4:00 P.M. London.

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

Expense Example

 

Actual     Hypothetical 5% Return           

 

 

   

 

 

      
 

Beginning

Account Value

(10/01/22)

 

 

 

      

Ending

Account Value

(03/31/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

   

Beginning      

Account Value      

(10/01/22)      

 

 

 

   

Ending

Account Value

(03/31/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

      

Annualized

Expense

Ratio

 

 

 

  $      1,000.00          $      1,164.30          $        2.37       $      1,000.00             $      1,022.70          $        2.22          0.44

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

  11


Fund Summary as of March 31, 2023   (continued)    iShares® Global Energy ETF

 

Portfolio Management Commentary

Global energy stocks advanced during the reporting period as higher natural gas prices throughout 2022 offset declining oil prices. U.S. natural gas futures climbed to a 14-year high in August 2022 when Russia announced plans to shut down a natural gas pipeline to Europe, complicating efforts to refill supplies ahead of the winter. However, an unseasonably warm winter weakened demand for natural gas, sending prices for the fuel sharply lower during the first three months of 2023. U.S. supplies of natural gas uncharacteristically outstripped demand during the winter months. Meanwhile, oil prices retreated from highs reached in the months following Russia’s invasion of Ukraine as rising interest rates and high inflationary pressures weakened the outlook for global economic growth. COVID-19 related lockdowns in China, the world’s largest importer of oil, also weakened global demand. Dropping prices led the Organization of the Petroleum Exporting Countries (“OPEC”) and other allied countries to agree in October 2022 to cut supplies to stimulate a rebound in prices.

Oil, gas, and consumable fuels companies in the U.S. contributed the most to the Index’s stronger performance as stocks in the sector posted record profits. Some large oil companies also used excess cash to buy back their own stock and raise dividends.

British oil, gas, and consumable fuels companies also contributed to the Index’s performance as they, too, reported record profits, bought back their own stock, and increased dividend payments. Some companies scaled back plans to reduce production to reduce carbon emissions and instead announced plans to increase investments in the oil and gas industry.

Conversely, Canadian oil, gas, and consumable fuels companies detracted from the Index, particularly those that operate pipelines. A shortage of skilled workers, inflationary pressures, and contractor disputes added to escalating expenses for a planned pipeline from gas fields in British Columbia to a Pacific Ocean port. In addition, outages at U.S. refineries and a global glut of high sulfur fuel oil weakened demand for Western Canada Select crude oil.

Portfolio Information

 

INDUSTRY ALLOCATION

 

   
Industry    

Percent of

Total Investments

 

(a) 

Integrated Oil & Gas

    56.2

Oil & Gas Exploration & Production

    20.8  

Oil & Gas Storage & Transportation

    9.6  

Oil & Gas Refining & Marketing

    7.8  

Oil & Gas Equipment & Services

    5.2  

Other (each representing less than 1%)

    0.4  

GEOGRAPHIC ALLOCATION

 

   
Country/Geographic Region    

Percent of

Total Investments

 

(a) 

United States

    60.9

United Kingdom

    12.2  

Canada

    11.4  

France

    5.3  

Australia

    2.4  

Italy

    1.6  

Brazil

    1.6  

Norway

    1.4  

Other (each representing less than 1%)

    3.2  

 

  (a) 

Excludes money market funds.

 

 

 

12  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Fund Summary as of March 31, 2023    iShares® Global Financials ETF

 

Investment Objective

The iShares Global Financials ETF (the “Fund”) seeks to track the investment results of an index composed of global equities in the financials sector, as represented by the S&P Global 1200 Financials Sector IndexTM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

    Average Annual Total Returns            Cumulative Total Returns  
 

 

 

      
      1 Year      5 Years      10 Years                1 Year      5 Years      10 Years  

Fund NAV

    (9.86 )%       2.85      6.35%          (9.86 )%       15.07      85.08

Fund Market

    (9.90      2.74        6.30             (9.90      14.48        84.21  

Index

    (10.35      2.83        6.38                   (10.35      14.98        85.62  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

Index performance through January 30, 2013 is calculated using currency exchange (FX) rates corresponding to 5:15 P.M. ET. Index performance beginning on January 31, 2013 is calculated using FX rates corresponding to World Market Reuters 4:00 P.M. London.

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

Expense Example

 

Actual     Hypothetical 5% Return  

 

 

   

 

 

      
 

Beginning

Account Value

(10/01/22)

 

 

 

      

Ending

Account Value

(03/31/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

   

Beginning      

Account Value      

(10/01/22)      

 

 

 

   

Ending

Account Value

(03/31/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

      

Annualized

Expense

Ratio

 

 

 

  $      1,000.00          $      1,143.70          $        2.30       $      1,000.00             $      1,022.80          $        2.17          0.43

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

 

F U N D   S U M M A R Y

  13


Fund Summary as of March 31, 2023   (continued)    iShares® Global Financials ETF

 

Portfolio Management Commentary

Global financials stocks declined for the reporting period. From a country perspective, U.S. stocks, which constituted approximately 52% of the Index on average during the reporting period, were the leading detractor from the Index’s return. The U.S. banks industry detracted the most from the Index’s performance. Near the end of the reporting period, bank stock prices dropped sharply lower following the failure of two regional U.S. banks in the largest collapse for the industry since 2008. The banks, which both had a high percentage of uninsured deposits, were unable to meet a surge in customer withdrawals. The government intervened to help depositors and provide liquidity in order to maintain the stability of the financial system. The disruption created by the failures led to increased scrutiny of the industry by investors. While banks often profit when interest rates are rising since they charge higher interest on loans, the inflationary environment during the reporting period curbed consumer spending on big-ticket purchases that often require financing from banks. Notably, new mortgage loans slowed, a consequence of higher interest rates and increasingly less affordable housing prices.

The U.S. financial services industry also negatively impacted the Index’s return. Stocks of large conglomerates that own diverse businesses dropped following a broad decline in the equities of their underlying companies, while revenues for bond rating firms in the financial exchanges and data industry dropped amid a slowdown in bond issuance. Also within financial services, investment banking and brokerage companies with large holdings of bonds with declining value weighed on performance. Investors became concerned about some financial services companies facing the same liquidity issues as the failed regional banks, though the companies in question insisted their cash positions were strong.

Bank stocks in Canada detracted from the Index’s performance, as economic uncertainty led Canadian banks to set aside a significant portion of capital to cover potential loan losses, which pressured earnings. Similarly, Australian banks were notable detractors as interest rate raises by the Reserve Bank of Australia weakened the housing market and the economic outlook.

Portfolio Information

 

INDUSTRY ALLOCATION

 

   
Industry    

Percent of

Total Investments

 

(a) 

Banks

    38.8

Insurance

    20.9  

Financial Services

    20.3  

Capital Markets

    17.8  

Consumer Finance

    2.2  

GEOGRAPHIC ALLOCATION

 

   
Country/Geographic Region    

Percent of

Total Investments

 

(a) 

United States

    54.6

Canada

    7.2  

United Kingdom

    5.1  

Australia

    4.4  

Japan

    4.4  

Switzerland

    3.0  

Germany

    2.7  

France

    2.4  

China

    2.3  

Hong Kong

    2.2  

Sweden

    1.7  

Italy

    1.6  

Netherlands

    1.6  

Spain

    1.5  

Singapore

    1.5  

Brazil

    1.0  

Other (each representing less than 1%)

    2.8  

 

  (a) 

Excludes money market funds.

 

 

 

14  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Fund Summary as of March 31, 2023    iShares® Global Healthcare ETF

 

Investment Objective

The iShares Global Healthcare ETF (the “Fund”) seeks to track the investment results of an index composed of global equities in the healthcare sector, as represented by the S&P Global 1200 Health Care Sector IndexTM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

    Average Annual Total Returns            Cumulative Total Returns  
 

 

 

      
      1 Year      5 Years      10 Years                1 Year      5 Years      10 Years  

Fund NAV

    (3.44 )%       10.07      10.34%          (3.44 )%       61.53      167.40

Fund Market

    (3.73      10.00        10.31             (3.73      61.07        166.80  

Index

    (3.73      10.05        10.39                   (3.73      61.39        168.72  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

Index performance through January 30, 2013 is calculated using currency exchange (FX) rates corresponding to 5:15 P.M. ET. Index performance beginning on January 31, 2013 is calculated using FX rates corresponding to World Market Reuters 4:00 P.M. London.

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

Expense Example

 

Actual     Hypothetical 5% Return           

 

 

   

 

 

      
 

Beginning

Account Value

(10/01/22)

 

 

 

      

Ending

Account Value

(03/31/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

   

Beginning      

Account Value      

(10/01/22)      

 

 

 

   

Ending

Account Value

(03/31/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

      

Annualized

Expense

Ratio

 

 

 

  $      1,000.00          $      1,112.70          $        2.21       $      1,000.00             $      1,022.80          $        2.12          0.42

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

 

F U N D   S U M M A R Y

  15


Fund Summary as of March 31, 2023   (continued)    iShares® Global Healthcare ETF

 

Portfolio Management Commentary

Global healthcare stocks declined slightly during the reporting period. Rising interest rates made the relatively small dividends on healthcare stocks unattractive when compared to investment in the bond markets. Merger and acquisition activity among biotechnology and pharmaceutical companies dropped in 2022 to the lowest levels in years amid heightened U.S. regulatory scrutiny to prevent monopolies in the sector. In this environment, the number of new biotechnology companies launching initial public offerings to raise capital also tightened after two record-setting years.

U.S. companies in the healthcare equipment and supplies industry detracted the most from the Index’s performance. Although demand for elective surgical procedures mostly rebounded from lows during the height of the COVID-19 pandemic, global supply chain pressures, compounded by geopolitical tensions, and rising fuel and energy costs weakened sales and earnings. Lockdowns in China related to the coronavirus pandemic, ongoing high inflation, and foreign exchange losses from the stronger U.S. dollar also pressured financial performance. In addition, a new federal law, the Inflation Reduction Act, gave the government more power to negotiate for lower prescription drug prices with pharmaceutical companies. The stock of a major drugstore chain in the healthcare services industry dropped after a federal healthcare agency downgraded its rating on a prescription drug plan, reducing payments from the government.

Swiss companies in the pharmaceuticals, biotechnology, and life sciences industry also detracted from the Index’s return. Demand for COVID-19 treatments and diagnostic testing kits declined as vaccines against the virus expanded. Russia’s invasion of Ukraine complicated clinical drug trials conducted by a Swiss pharmaceutical company, as a portion of the patients in the studies came from the two warring countries. Competitors’ biosimilar drugs, which have similar active properties as older, licensed drugs, also weakened sales.

Conversely, the pharmaceuticals industry in Denmark contributed to the Index’s performance. The industry benefited from soaring sales and profits from a new anti-obesity drug, outstripping projections. However, the high cost of the drug, lack of insurance coverage, and production delays limited sales growth.

Portfolio Information

 

INDUSTRY ALLOCATION

 

   
Industry    

Percent of

Total Investments

 

(a) 

Pharmaceuticals

    41.3

Health Care Equipment & Supplies

    18.5  

Health Care Providers & Services

    15.7  

Biotechnology

    13.6  

Life Sciences Tools & Services

    10.7  

Health Care Technology

    0.2  

GEOGRAPHIC ALLOCATION

 

   
Country/Geographic Region    

Percent of

Total Investments

 

(a) 

United States

    70.7

Switzerland

    7.9  

Japan

    4.7  

Denmark

    4.4  

United Kingdom

    4.3  

France

    2.8  

Germany

    2.1  

Australia

    1.8  

Other (each representing less than 1%)

    1.3  

 

  (a) 

Excludes money market funds.

 

 

 

16  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Fund Summary as of March 31, 2023    iShares® Global Industrials ETF

 

Investment Objective

The iShares Global Industrials ETF (the “Fund”) seeks to track the investment results of an index composed of global equities in the industrials sector, as represented by the S&P Global 1200 Industrials Sector IndexTM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

    Average Annual Total Returns            Cumulative Total Returns  
 

 

 

      
      1 Year      5 Years      10 Years                1 Year      5 Years      10 Years  

Fund NAV

    0.22      6.39      8.64%          0.22      36.31      129.11

Fund Market

    (0.04      6.32        8.61             (0.04      35.88        128.38  

Index

    (0.38      6.42        8.65                   (0.38      36.51        129.31  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

Index performance through January 30, 2013 is calculated using currency exchange (FX) rates corresponding to 5:15 P.M. ET. Index performance beginning on January 31, 2013 is calculated using FX rates corresponding to World Market Reuters 4:00 P.M. London.

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

Expense Example

 

Actual     Hypothetical 5% Return           

 

 

   

 

 

      
 

Beginning

Account Value

(10/01/22)

 

 

 

      

Ending

Account Value

(03/31/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

   

Beginning      

Account Value      

(10/01/22)      

 

 

 

   

Ending

Account Value

(03/31/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

      

Annualized

Expense

Ratio

 

 

 

  $      1,000.00          $      1,274.50          $        2.38       $      1,000.00             $      1,022.80          $        2.12          0.42

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

 

F U N D   S U M M A R Y

  17


Fund Summary as of March 31, 2023   (continued)    iShares® Global Industrials ETF

 

Portfolio Management Commentary

Global industrials stocks declined slightly during the reporting period, as manufacturing activity slowed and investors expressed concern over the impacts of a prolonged slowing of economic growth, even as earnings for many companies in the sector improved. Supply-chain constraints led to parts shortages that slowed the delivery of goods. Rising costs of raw materials and fuel also weighed on the profitability of industrials companies.

Japanese industrials stocks, which comprised approximately 14% of the index on average during the reporting period, were the leading detractors from the Index’s performance. Growth among companies within Japan’s professional services industry weakened as a global economic slowdown weighed on demand for their services. Although headquartered in Japan, these companies operate as international conglomerates with business divisions across a wide range of consumer-centric services, including residential real estate, payments, travel booking, and employment websites. As such, these companies were exposed to declines in U.S. labor activity through their ownership of major online job search engines serving that market, which generate a significant portion of their revenue. U.S. job listings decreased sharply, putting a strain on operational margins. Being online businesses, these companies were also exposed to a persistent selloff affecting stocks of U.S. companies broadly focused on technology. Domestically, these Japanese conglomerates felt the impact of rising inflation on consumer and business spending. A weakened Japanese yen also increased the cost of imports, contributing to record trade deficits.

On the upside, the German capital goods industry was a notable contributor to the Index’s performance, as demand for industrial goods remained strong in the face of macroeconomic headwinds. Industrial conglomerates reported a record-high backlog of orders and an increase in revenues across multiple business units. These conglomerates continued expansion in newer areas of growth, while divesting less strategic businesses.

The French capital goods industry also contributed to performance, led by aerospace and defense companies. A sizable increase in French defense spending and growing demand for engine parts from airplane manufacturers lifted investor sentiment.

Portfolio Information

 

INDUSTRY ALLOCATION

 

   
Industry    

Percent of

Total Investments

 

(a) 

Capital Goods

    67.2

Transportation

    18.6  

Commercial & Professional Services

    14.2  

GEOGRAPHIC ALLOCATION

 

   
Country/Geographic Region    

Percent of

Total Investments

 

(a) 

United States

    53.4

Japan

    13.8  

France

    7.4  

United Kingdom

    4.7  

Germany

    4.3  

Canada

    3.7  

Sweden

    3.4  

Switzerland

    2.5  

Denmark

    1.4  

Australia

    1.0  

Other (each representing less than 1%)

    4.4  

 

  (a) 

Excludes money market funds.

 

 

 

18  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Fund Summary as of March 31, 2023    iShares® Global Materials ETF

 

Investment Objective

The iShares Global Materials ETF (the “Fund”) seeks to track the investment results of an index composed of global equities in the materials sector, as represented by the S&P Global 1200 Materials Sector IndexTM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

    Average Annual Total Returns            Cumulative Total Returns  
 

 

 

      
      1 Year      5 Years      10 Years                1 Year      5 Years      10 Years  

Fund NAV

    (6.77 )%       7.77      6.27%          (6.77 )%       45.38      83.76

Fund Market

    (6.89      7.64        6.29             (6.89      44.47        83.98  

Index

    (7.24      7.87        6.39                   (7.24      46.08        85.71  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

Index performance through January 30, 2013 is calculated using currency exchange (FX) rates corresponding to 5:15 P.M. ET. Index performance beginning on January 31, 2013 is calculated using FX rates corresponding to World Market Reuters 4:00 P.M. London.

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

Expense Example

 

Actual     Hypothetical 5% Return           

 

 

   

 

 

      
 

Beginning

Account Value

(10/01/22)

 

 

 

      

Ending

Account Value

(03/31/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

   

Beginning      

Account Value      

(10/01/22)      

 

 

 

   

Ending

Account Value

(03/31/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

      

Annualized

Expense

Ratio

 

 

 

  $      1,000.00          $      1,255.80          $        2.36       $      1,000.00             $      1,022.80          $        2.12          0.42

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

 

F U N D   S U M M A R Y

  19


Fund Summary as of March 31, 2023   (continued)    iShares® Global Materials ETF

 

Portfolio Management Commentary

Global materials stocks declined during the reporting period. Rising interest rates and the slowing global economic outlook weakened metals prices from the high levels reached in the months after Russia’s invasion of Ukraine disrupted world markets. In addition, rising expenses for mining extraction and production pressured profit margins for mining companies, as the cost of labor, diesel and other energy, explosives, and raw materials increased. Extreme weather, leading to floods and droughts, disrupted mining operations and reduced output.

U.S. stocks detracted the most from the Index’s performance, led by the metals and mining industry. A sharp drop in gold prices sent the stock prices of U.S. gold mining companies lower. After starting the reporting period at historically high levels, with Russia’s invasion of Ukraine raising geopolitical uncertainty, gold prices trended lower amid rising interest rates and a stronger U.S. dollar. Although gold prices rallied higher beginning in November, high production costs weighed on the profit margins of gold mining companies. The stocks of copper mining companies also fell. Copper prices dropped sharply over the first four months of the reporting period as the global economic outlook worsened and COVID-19 related lockdowns in China weakened demand in the world’s largest market for the metal.

Stocks of British companies in the materials sector also detracted from the Index’s performance. British metals and mining companies warned that logistical bottlenecks, extreme weather, and lingering production issues related to the COVID-19 pandemic would likely weaken production of various metals for several years. The lower production expectations, combined with escalating production costs, weakened the earnings outlook for the industry.

Canadian companies in the metals and mining industry also detracted from the Index’s return. Gold mining companies struggled to raise production, even as gold prices rebounded late in the reporting period, as repairs and upgrades stalled operations. Meanwhile, slumping copper prices, combined with escalated costs and operational challenges, squeezed profit margins for copper mining companies.

Portfolio Information

 

INDUSTRY ALLOCATION

 

   
Industry    

Percent of

Total Investments

 

(a) 

Chemicals

    47.9

Metals & Mining

    39.3  

Construction Materials

    6.1  

Containers & Packaging

    4.9  

Paper & Forest Products

    1.8  

GEOGRAPHIC ALLOCATION

 

   
Country/Geographic Region    

Percent of

Total Investments

 

(a) 

United States

    37.2

Australia

    12.0  

United Kingdom

    9.1  

Canada

    7.7  

Japan

    6.5  

Switzerland

    4.7  

France

    4.6  

Germany

    3.3  

Brazil

    2.7  

South Korea

    2.0  

Ireland

    1.9  

Netherlands

    1.4  

Taiwan

    1.1  

Finland

    1.1  

Other (each representing less than 1%)

    4.7  

 

  (a)

Excludes money market funds.

 

 

 

20  

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Fund Summary as of March 31, 2023    iShares® Global Tech ETF

 

Investment Objective

The iShares Global Tech ETF (the “Fund”) seeks to track the investment results of an index composed of global equities in the technology sector, as represented by the S&P Global 1200 Information Technology Sector 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.

On February 16, 2023, the Board approved a proposal to change the Fund’s index to S&P Global 1200 Information Technology 4.5/22.5/45 Capped Index. This change became effective on April 20, 2023.

Performance

 

    Average Annual Total Returns            Cumulative Total Returns  
 

 

 

      
      1 Year      5 Years      10 Years                1 Year      5 Years      10 Years  

Fund NAV

    (5.34 )%       16.62      17.80%          (5.34 )%       115.71      414.74

Fund Market

    (5.60      16.54        17.79             (5.60      114.94        414.24  

Index

    (5.49      16.76        17.94                   (5.49      117.05        420.75  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

Index performance through January 30, 2013 is calculated using currency exchange (FX) rates corresponding to 5:15 P.M. ET. Index performance beginning on January 31, 2013 is calculated using FX rates corresponding to World Market Reuters 4:00 P.M. London.

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

Expense Example

 

Actual     Hypothetical 5% Return           

 

 

   

 

 

      
 

Beginning

Account Value

(10/01/22)

 

 

 

      

Ending

Account Value

(03/31/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

   

Beginning      

Account Value      

(10/01/22)      

 

 

 

   

Ending

Account Value

(03/31/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

      

Annualized

Expense

Ratio

 

 

 

  $      1,000.00          $      1,291.50          $        2.40       $      1,000.00             $      1,022.80          $        2.12          0.42

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

 

F U N D   S U M M A R Y

  21


Fund Summary as of March 31, 2023   (continued)    iShares® Global Tech ETF

 

Portfolio Management Commentary

Global information technology stocks declined moderately during the reporting period, as the return to pre-pandemic life and looming recession concerns weighed on companies’ growth. The reopening of physical restaurants and stores encouraged consumers to spend less time and money online. Businesses that were avid buyers of computing equipment in the early days of the pandemic scaled back purchases, softening demand. Persistently high inflation, especially in the U.S., limited what households opted to spend on technology and e-commerce.

U.S. information technology stocks, which comprised approximately 82% of the Index on average during the reporting period, were the largest detractor from the Index’s return, led by the U.S. information technology services industry. Online payment providers experienced a slowdown in growth amid a decline in transaction volumes. Meanwhile, more established companies in the industry faced increasing competition for e-commerce payment activity from newer applications. Companies in the industry cut revenue forecasts, further dampening sentiment among investors who believed that this signaled difficulties in generating organic growth in an increasingly challenging economy.

The U.S. software and services industry also detracted notably from the Index’s return, as demand for both hardware and software diminished and global shipments of computers fell significantly. Schools, governments, and businesses exhausted their need for computing equipment to facilitate remote working and learning, while high inflation and recession fears curtailed corporate spending on cloud services and personal computers. Consumer interest in videogaming waned, dampening appetite for gaming computer cards and consoles. Currency fluctuations put further strain on revenues, as a strengthening U.S. dollar translated into reduced earnings from non-U.S. sales.

Companies in the Taiwanese semiconductor industry also weighed on performance. Global demand for chips slowed, while investors expressed concerns about the impact of new U.S. restrictions on technology exports to China on the industry.

Additionally, the South Korean technology hardware and equipment industry modestly detracted from the Index’s return. Memory chip producers faced an oversupply of inventory, fueling a decline in profitability.

Portfolio Information

 

INDUSTRY ALLOCATION

 

   
Industry    

Percent of

Total Investments

 

(a) 

Software

    31.6

Semiconductors & Semiconductor Equipment

    28.6  

Technology Hardware, Storage & Peripherals

    26.4  

IT Services

    5.3  

Electronic Equipment, Instruments & Components

    4.8  

Communications Equipment

    3.3  

GEOGRAPHIC ALLOCATION

 

   
Country/Geographic Region    

Percent of

Total Investments

 

(a) 

United States

    81.3

Taiwan

    4.1  

Japan

    3.7  

South Korea

    3.2  

Netherlands

    2.7  

Germany

    1.8  

Canada

    1.2  

Other (each representing less than 1%)

    2.0  

 

  (a) 

Excludes money market funds.

 

 

 

22  

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Fund Summary as of March 31, 2023    iShares® Global Utilities ETF

 

Investment Objective

The iShares Global Utilities ETF (the “Fund”) seeks to track the investment results of an index composed of global equities in the utilities sector, as represented by the S&P Global 1200 Utilities (Sector) Capped Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

    Average Annual Total Returns            Cumulative Total Returns  
 

 

 

      
      1 Year      5 Years      10 Years                1 Year      5 Years      10 Years  

Fund NAV

    (4.93 )%       7.67      7.12%          (4.93 )%       44.69      98.91

Fund Market

    (5.39      7.59        7.12             (5.39      44.17        98.88  

Index

    (5.64      7.29        6.78                   (5.64      42.14        92.67  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

Index performance through January 30, 2013 is calculated using currency exchange (FX) rates corresponding to 5:15 P.M. ET. Index performance beginning on January 31, 2013 is calculated using FX rates corresponding to World Market Reuters 4:00 P.M. London.

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

Expense Example

 

Actual     Hypothetical 5% Return           

 

 

   

 

 

      
 

Beginning

Account Value

(10/01/22)

 

 

 

      

Ending

Account Value

(03/31/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

   

Beginning      

Account Value      

(10/01/22)      

 

 

 

   

Ending

Account Value

(03/31/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

      

Annualized

Expense

Ratio

 

 

 

  $      1,000.00          $      1,122.40          $        2.38       $      1,000.00             $      1,022.70          $        2.27          0.45

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

 

F U N D   S U M M A R Y

  23


Fund Summary as of March 31, 2023   (continued)    iShares® Global Utilities ETF

 

Portfolio Management Commentary

Global utilities stocks declined for the reporting period in an environment of rising interest rates and elevated inflation. Bond yields rose along with interest rates, making bonds a more attractive investment for yield-seeking investors relative to the regular dividends paid by most utilities companies. Higher interest rates also drove borrowing costs higher, which negatively impacted the highly indebted utilities sector.

U.S. utilities detracted the most from the Index’s performance as the Fed raised interest rates eight times, sending U.S. bond yields higher and weighing on the value of utilities stocks. Within the sector, multi-utilities were the largest source of weakness. Disappointing financial performance led a large company in the industry to conduct a strategic review of its finances. Increased costs of fuel, supply chain disruptions, and elevated inflation drove higher utility rates for customers and negatively impacted the industry’s finances. After regulators took an unfavorable stance regarding commitments for a planned investment in a wind project, a negotiated settlement removed a guaranteed energy performance threshold that required the company to pay the entirety of replacement costs for replacement energy generation. Electric utilities stocks also declined, as lower than expected revenues weighed on the industry. High levels of variable-rate debt also worked against profitability, as rising interest rates increased financing expenses.

Canadian utilities also detracted from the Index’s performance, as disappointing earnings and higher borrowing costs in the multi-utilities industry prompted concern from investors about the sustainability of dividend payments. The Danish electric utilities industry faced earnings pressure from higher interest rates and cost inflation, and the deteriorating outlook prompted a write-down of the value of a large wind project.

On the upside, Spanish and French utilities companies contributed modestly to the Index’s return. Investments in expanding capacity in North and South America helped the Spanish electric utilities industry to offset declining domestic earnings. In France, the multi-utilities industry benefited from higher natural gas prices early in the reporting period, boosting profitability and driving a planned dividend increase.

Portfolio Information

 

INDUSTRY ALLOCATION

 

   
Industry    

Percent of

Total Investments

 

(a) 

Electric Utilities

    61.1

Multi-Utilities

    28.9  

Gas Utilities

    3.9  

Water Utilities

    3.1  

Independent Power and Renewable Electricity Producers

    3.0  

GEOGRAPHIC ALLOCATION

 

   
Country/Geographic Region    

Percent of

Total Investments

 

(a) 

United States

    64.5

United Kingdom

    6.7  

Spain

    6.4  

Italy

    4.6  

Canada

    4.1  

Germany

    3.8  

France

    3.3  

Japan

    2.0  

Australia

    1.1  

Denmark

    1.1  

Portugal

    1.0  

Other (each representing less than 1%)

    1.4  

 

  (a) 

Excludes money market funds.

 

 

 

24  

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About Fund Performance

 

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

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

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

Disclosure of Expenses

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

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

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

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

 

 

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

  25


Schedule of Investments  

March 31, 2023

  

iShares® Global Comm Services ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   

Australia — 1.1%

   

SEEK Ltd.

    24,696     $ 399,213  

Telstra Corp. Ltd.

    811,324       2,297,184  
   

 

 

 
      2,696,397  
Canada — 2.7%            

BCE Inc.

    64,032       2,868,292  

Rogers Communications Inc., Class B, NVS

    24,605       1,140,405  

Shaw Communications Inc., Class B, NVS

    31,483       942,044  

TELUS Corp.

    100,169       1,988,557  
   

 

 

 
      6,939,298  
China — 10.4%            

Baidu Inc.(a)

    159,300       3,001,414  

Kuaishou Technology(a)(b)

    137,600       1,058,050  

NetEase Inc.

    128,600       2,270,159  

Tencent Holdings Ltd.

    416,300       20,344,287  
   

 

 

 
          26,673,910  
Finland — 0.3%            

Elisa OYJ

    10,544       635,923  
   

 

 

 

France — 1.3%

   

Orange SA

    132,594       1,575,240  

Publicis Groupe SA

    16,607       1,296,339  

Vivendi SE

    56,523       571,535  
   

 

 

 
      3,443,114  
Germany —2.3%            

Deutsche Telekom AG, Registered

    245,096       5,939,238  
   

 

 

 

Italy —0.1%

   

Telecom Italia SpA/Milano(a)

    719,185       237,175  
   

 

 

 

Japan — 7.3%

   

Dentsu Group Inc.

    15,800       556,923  

KDDI Corp.

    110,000       3,392,152  

Nexon Co. Ltd.

    31,700       756,957  

Nintendo Co. Ltd.

    82,100       3,188,892  

Nippon Telegraph & Telephone Corp.

    160,200       4,787,211  

SoftBank Corp.

    195,000       2,251,040  

SoftBank Group Corp.

    83,500       3,282,677  

Z Holdings Corp.

    186,900       529,946  
   

 

 

 
      18,745,798  
Mexico — 0.7%            

America Movil SAB de CV

    1,387,459       1,457,525  

Grupo Televisa SAB, CPO

    185,020       195,801  

Sitios Latinoamerica SAB de CV(a)

    1,760       728  
   

 

 

 
      1,654,054  
Netherlands — 0.8%            

Koninklijke KPN NV

    223,921       791,240  

Universal Music Group NV

    53,483       1,354,443  
   

 

 

 
      2,145,683  
Norway —0.2%            

Telenor ASA

    45,068       528,430  
   

 

 

 

South Korea — 1.1%

   

Kakao Corp.

    21,895       1,036,921  

NAVER Corp.

    10,481       1,642,278  
   

 

 

 
      2,679,199  
Spain — 1.3%            

Cellnex Telecom SA(b)

    41,664       1,620,214  
Security   Shares     Value  
Spain (continued)            

Telefonica SA

    405,523     $ 1,746,512  
   

 

 

 
      3,366,726  
Sweden — 0.4%            

Embracer Group AB(a)(c)

    58,176       272,691  

Tele2 AB, Class B

    39,108       389,245  

Telia Co. AB

    171,337       435,069  
   

 

 

 
      1,097,005  
Switzerland — 0.4%            

Swisscom AG, Registered

    1,782       1,137,222  
   

 

 

 

Taiwan — 0.4%

   

Chunghwa Telecom Co. Ltd.

    267,120       1,050,021  
   

 

 

 
United Kingdom — 2.2%            

Auto Trader Group PLC(b)

    67,831       517,394  

BT Group PLC

    489,876       882,427  

Informa PLC

    99,380       851,831  

Rightmove PLC

    61,060       425,016  

Vodafone Group PLC

    1,881,811       2,075,820  

WPP PLC

    75,477       896,735  
   

 

 

 
      5,649,223  
United States — 66.7%            

Activision Blizzard Inc.

    50,008       4,280,185  

Alphabet Inc., Class A(a)

    305,932       31,734,326  

Alphabet Inc., Class C, NVS(a)

    266,697       27,736,488  

AT&T Inc.

    500,511       9,634,837  

Charter Communications Inc., Class A(a)

    7,396       2,644,884  

Comcast Corp., Class A

    295,378       11,197,780  

DISH Network Corp., Class A(a)

    17,398       162,323  

Electronic Arts Inc.

    18,290       2,203,030  

Fox Corp., Class A, NVS

    20,846       709,806  

Fox Corp., Class B

    9,626       301,390  

Interpublic Group of Companies Inc. (The)

    27,278       1,015,833  

Live Nation Entertainment Inc.(a)

    10,008       700,560  

Match Group Inc.(a)

    19,609       752,789  

Meta Platforms Inc, Class A(a)

    153,885       32,614,387  

Netflix Inc.(a)

    31,271       10,803,505  

News Corp., Class A, NVS

    26,704       461,178  

News Corp., Class B

    8,311       144,861  

Omnicom Group Inc.

    14,235       1,342,930  

Paramount Global, Class B, NVS

    35,456       791,023  

Take-Two Interactive Software Inc.(a)

    11,132       1,328,048  

T-Mobile U.S. Inc.(a)

    41,590       6,023,896  

Verizon Communications Inc.

    288,180       11,207,320  

Walt Disney Co. (The)(a)

    108,916       10,905,759  

Warner Bros. Discovery Inc.(a)(c)

    155,170       2,343,067  
   

 

 

 
          171,040,205  
   

 

 

 

Total Common Stocks — 99.7%
(Cost: $284,959,057)

      255,658,621  
   

 

 

 

Preferred Stocks

   

Italy — 0.0%

   

Telecom Italia SpA/Milano, Preference Shares, NVS(a)

    422,595       135,853  
   

 

 

 

Total Preferred Stocks — 0.0%
(Cost: $301,043)

      135,853  
   

 

 

 

Total Long-Term Investments — 99.7%
(Cost: $285,260,100)

      255,794,474  
   

 

 

 

 

 

26  

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Schedule of Investments  (continued)

March 31, 2023

  

iShares® Global Comm Services ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

 

Short-Term Securities

   
Money Market Funds — 0.6%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 5.01%(d)(e)(f)

    1,023,737     $ 1,024,044  

BlackRock Cash Funds: Treasury, SL Agency Shares, 4.73%(d)(e)

    540,000       540,000  
   

 

 

 

Total Short-Term Securities — 0.6%
(Cost: $1,564,234)

 

    1,564,044  
   

 

 

 

Total Investments — 100.3%
(Cost: $286,824,334)

 

    257,358,518  

Liabilities in Excess of Other Assets — (0.3)%

 

    (818,353
   

 

 

 

Net Assets — 100.0%

 

  $ 256,540,165  
   

 

 

 

 

 

(a) 

Non-income producing security.

(b) 

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

(c) 

All or a portion of this security is on loan.

(d) 

Affiliate of the Fund.

(e) 

Annualized 7-day yield as of period end.

(f) 

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

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended March 31, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer   Value at
03/31/22
   

Purchases

at Cost

   

Proceeds

from Sale

   

Net Realized

Gain (Loss)

   

Change in

Unrealized

Appreciation

(Depreciation)

   

Value at

03/31/23

   

Shares

Held at

03/31/23

    Income    

Capital

Gain

Distributions

from

Underlying

Funds

 

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $     $ 1,023,535 (a)    $     $ 699     $ (190   $ 1,024,044       1,023,737     $ 10,328 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    330,000       210,000 (a)                         540,000       540,000       7,542        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ 699     $ (190   $ 1,564,044       $ 17,870     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (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

     10       06/08/23      $ 152      $ 4,682  

E-Mini S&P Communication Services Select Sector Index

     6       06/16/23        459        17,560  

Euro STOXX 50 Index

     2       06/16/23        92        3,522  
          

 

 

 
           $ 25,764  
          

 

 

 

 

 

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  (continued)

March 31, 2023

  

iShares® Global Comm Services ETF

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

 

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

 

 

Assets — Derivative Financial Instruments

                    

Futures contracts

                    

Unrealized appreciation on futures contracts(a)

   $      $      $ 25,764       $      $      $      $ 25,764   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (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 March 31, 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

   $      $      $ (32,611    $      $      $      $ (32,611
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                    

Futures contracts

   $      $      $ 32,579      $      $      $      $ 32,579  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Futures contracts

  

Average notional value of contracts — long

   $ 312,216      

 

 

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

   $ 179,633,557        $ 76,025,064        $        $ 255,658,621  

Preferred Stocks

              135,853                   135,853  

Short-Term Securities

                 

Money Market Funds

     1,564,044                            1,564,044  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 181,197,601        $  76,160,917        $        $ 257,358,518  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(a)

                 

Assets

                 

Equity Contracts

   $ 17,560        $ 8,204        $             —        $ 25,764  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

28  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments  

March 31, 2023

  

iShares® Global Consumer Discretionary ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Australia — 1.2%            

Aristocrat Leisure Ltd.

    36,867     $ 921,768  

Lottery Corp. Ltd. (The)

    124,827       429,325  

Wesfarmers Ltd.

    63,590       2,149,247  
   

 

 

 
          3,500,340  
Brazil — 0.1%            

Lojas Renner SA

    53,987       176,497  

Magazine Luiza SA(a)

    155,896       101,809  
   

 

 

 
      278,306  
Canada — 1.2%            

Canadian Tire Corp. Ltd., Class A, NVS

    3,008       392,542  

Dollarama Inc.

    15,954       953,463  

Gildan Activewear Inc.

    10,143       336,974  

Magna International Inc.

    14,955       801,030  

Restaurant Brands International Inc.

    17,155       1,151,664  
   

 

 

 
      3,635,673  
Chile — 0.0%            

Falabella SA

    41,874       96,297  
   

 

 

 

China — 7.2%

   

Alibaba Group Holding Ltd.(a)

    867,900       10,992,376  

ANTA Sports Products Ltd.

    60,600       879,858  

BYD Co. Ltd., Class H

    49,000       1,441,391  

JD.com Inc., Class A

    134,800       2,943,519  

Li Ning Co. Ltd.

    131,500       1,034,104  

Meituan, Class B(a)(b)

    264,400       4,796,802  
   

 

 

 
      22,088,050  
Denmark — 0.2%            

GN Store Nord A/S(a)

    7,694       172,520  

Pandora A/S

    5,355       514,017  
   

 

 

 
      686,537  
France — 7.5%            

Accor SA(a)

    9,536       310,026  

Cie. Generale des Etablissements Michelin SCA

    40,048       1,224,198  

Hermes International

    1,953       3,955,324  

Kering SA

    4,036       2,633,198  

LVMH Moet Hennessy Louis Vuitton SE

    14,650       13,447,357  

Renault SA(a)

    11,609       473,138  

Sodexo SA

    4,713       460,321  

Valeo

    13,099       268,788  
   

 

 

 
      22,772,350  
Germany —3.0%            

adidas AG

    10,018       1,775,915  

Bayerische Motoren Werke AG

    17,893       1,961,048  

Continental AG

    6,057       453,847  

Delivery Hero SE(a)(b)

    10,651       363,358  

Mercedes-Benz Group AG

    43,774       3,366,341  

Puma SE

    5,793       359,122  

Volkswagen AG

    1,662       285,075  

Zalando SE(a)(b)

    12,562       526,480  
   

 

 

 
      9,091,186  
Ireland — 0.5%            

Flutter Entertainment PLC, Class DI(a)

    8,592       1,563,497  
   

 

 

 

Italy —1.6%

   

Ferrari NV

    7,176       1,944,578  

Moncler SpA

    11,704       808,413  
Security   Shares     Value  
Italy (continued)            

Stellantis NV

    121,307     $ 2,206,122  
   

 

 

 
      4,959,113  
Japan — 11.6%            

Aisin Corp.

    10,400       286,650  

Bandai Namco Holdings Inc.

    37,500       808,468  

Bridgestone Corp.

    34,400       1,397,421  

Denso Corp.

    28,400       1,603,106  

Fast Retailing Co. Ltd.

    10,500       2,298,581  

Honda Motor Co. Ltd.

    95,843       2,535,159  

Isuzu Motors Ltd.

    34,900       417,089  

Nissan Motor Co. Ltd.

    132,400       501,079  

Nitori Holdings Co. Ltd.

    4,900       591,733  

Oriental Land Co. Ltd./Japan

    65,500       2,242,669  

Pan Pacific International Holdings Corp.

    30,200       584,256  

Panasonic Holdings Corp.

    130,700       1,169,387  

Rakuten Group Inc.

    50,400       235,055  

Sekisui House Ltd.

    38,600       786,716  

Shimano Inc.

    4,700       814,913  

Sony Group Corp.

    70,800       6,448,703  

Subaru Corp.

    34,488       550,553  

Sumitomo Electric Industries Ltd.

    44,400       570,403  

Suzuki Motor Corp.

    27,400       997,837  

Toyota Motor Corp.

    705,000       10,035,956  

Yamaha Motor Co. Ltd.

    19,513       510,671  
   

 

 

 
          35,386,405  

Netherlands — 1.7%

   

Prosus NV

    65,293       5,112,703  
   

 

 

 

South Korea — 0.7%

   

Hyundai Motor Co.

    7,908       1,125,091  

Kia Corp.

    15,004       936,371  
   

 

 

 
      2,061,462  
Spain — 1.3%            

Amadeus IT Group SA(a)

    25,264       1,694,798  

Industria de Diseno Textil SA

    62,924       2,113,944  
   

 

 

 
      3,808,742  
Sweden — 0.7%            

Electrolux AB, Class B

    13,063       158,773  

Evolution AB(b)

    10,736       1,438,391  

H & M Hennes & Mauritz AB, Class B

    40,139       573,889  
   

 

 

 
      2,171,053  
Switzerland — 1.8%            

Cie. Financiere Richemont SA, Class A, Registered

    29,258       4,691,697  

Swatch Group AG (The), Bearer

    1,622       558,602  

Swatch Group AG (The), Registered

    3,139       199,033  
   

 

 

 
      5,449,332  
United Kingdom — 2.4%            

Barratt Developments PLC

    56,915       327,533  

Berkeley Group Holdings PLC

    6,358       329,395  

Burberry Group PLC

    22,705       727,010  

Compass Group PLC

    100,130       2,516,421  

Entain PLC

    33,024       512,866  

InterContinental Hotels Group PLC

    10,589       693,216  

Kingfisher PLC

    109,846       355,078  

Next PLC

    7,248       589,116  

Pearson PLC

    40,093       419,570  

Persimmon PLC

    17,412       270,368  

Taylor Wimpey PLC

    204,708       301,160  

 

 

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  (continued)

March 31, 2023

  

iShares® Global Consumer Discretionary ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
United Kingdom (continued)            

Whitbread PLC

    11,305     $ 417,621  
   

 

 

 
      7,459,354  
United States — 56.2%            

Advance Auto Parts Inc.

    3,383       411,407  

Amazon.com Inc.(a)

    309,167       31,933,859  

Aptiv PLC(a)

    15,194       1,704,615  

AutoZone Inc.(a)

    1,052       2,585,974  

Bath & Body Works Inc.

    12,810       468,590  

Best Buy Co. Inc.

    11,077       866,997  

Booking Holdings Inc.(a)

    2,178       5,776,949  

BorgWarner Inc.

    13,129       644,765  

Caesars Entertainment Inc.(a)

    12,032       587,282  

CarMax Inc.(a)(c)

    8,862       569,649  

Carnival Corp.(a)(c)

    56,202       570,450  

Chipotle Mexican Grill Inc.(a)

    1,555       2,656,391  

Darden Restaurants Inc.

    6,850       1,062,846  

Domino’s Pizza Inc.

    2,005       661,389  

DR Horton Inc.

    17,525       1,712,017  

eBay Inc.

    30,432       1,350,268  

Etsy Inc.(a)(c)

    7,047       784,542  

Expedia Group Inc.(a)

    8,241       799,624  

Ford Motor Co.

    219,581       2,766,721  

Garmin Ltd.

    8,598       867,710  

General Motors Co.

    78,170       2,867,276  

Genuine Parts Co.

    7,905       1,322,586  

Hasbro Inc.

    7,321       393,064  

Hilton Worldwide Holdings Inc.

    14,942       2,104,880  

Home Depot Inc. (The)

    44,827       13,229,344  

Las Vegas Sands Corp.(a)

    18,429       1,058,746  

Lennar Corp., Class A

    14,218       1,494,454  

LKQ Corp.

    14,233       807,865  

Lowe’s Companies Inc.

    33,912       6,781,383  

Marriott International Inc./MD, Class A

    15,089       2,505,378  

McDonald’s Corp.

    41,100       11,491,971  

MGM Resorts International

    17,650       784,013  

Mohawk Industries Inc.(a)

    2,993       299,958  

Newell Brands Inc., NVS

    20,445       254,336  

Nike Inc., Class B

    69,916       8,574,498  

Norwegian Cruise Line Holdings Ltd.(a)

    23,829       320,500  

NVR Inc.(a)

    170       947,272  

O’Reilly Automotive Inc.(a)

    3,495       2,967,185  

Pool Corp.

    2,207       755,765  

PulteGroup Inc.

    12,652       737,359  

Ralph Lauren Corp.

    2,343       273,358  

Ross Stores Inc.

    19,312       2,049,583  

Royal Caribbean Cruises Ltd.(a)

    12,324       804,757  

Starbucks Corp.

    64,536       6,720,134  

Tapestry Inc.

    13,139       566,422  

Tesla Inc.(a)

    148,635           30,835,817  

TJX Companies Inc. (The)

    64,923       5,087,366  
Security   Shares     Value  

 

 
United States (continued)            

Tractor Supply Co.

    6,194     $ 1,455,838  

Ulta Beauty Inc.(a)

    2,852       1,556,251  

VF Corp.

    18,557       425,141  

Whirlpool Corp.

    3,056       403,453  

Wynn Resorts Ltd.(a)

    5,782       647,064  

Yum! Brands Inc.

    15,694       2,072,863  
   

 

 

 
      171,377,925  
   

 

 

 

Total Common Stocks — 98.9%
(Cost: $339,814,478)

      301,498,325  
   

 

 

 

Preferred Stocks

   

Germany —0.7%

   

Bayerische Motoren Werke AG, Preference Shares, NVS

    3,356       343,045  

Porsche Automobil Holding SE, Preference Shares, NVS

    8,587       492,954  

Volkswagen AG, Preference Shares, NVS

    10,292       1,404,572  
   

 

 

 
      2,240,571  
South Korea — 0.1%            

Hyundai Motor Co., Series 2, Preference Shares, NVS

    2,089       154,308  
   

 

 

 

Total Preferred Stocks — 0.8%
(Cost: $3,417,410)

      2,394,879  
   

 

 

 

Total Long-Term Investments — 99.7%
(Cost: $343,231,888)

      303,893,204  
   

 

 

 

Short-Term Securities

 

Money Market Funds — 0.5%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 5.01%(d)(e)(f)

    1,455,152       1,455,589  

BlackRock Cash Funds: Treasury, SL Agency Shares, 4.73%(d)(e)

    260,000       260,000  
   

 

 

 

Total Short-Term Securities — 0.5%
(Cost: $1,715,409)

 

    1,715,589  
   

 

 

 

Total Investments — 100.2%
(Cost: $344,947,297)

 

    305,608,793  

Liabilities in Excess of Other Assets — (0.2)%

 

    (692,143
   

 

 

 

Net Assets — 100.0%

 

  $  304,916,650  
   

 

 

 

 

(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.

 

 

30  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments  (continued)

March 31, 2023

  

iShares® Global Consumer Discretionary ETF

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended March 31, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer  

Value at

03/31/22

   

Purchases

at Cost

   

Proceeds

from Sale

   

Net Realized

Gain (Loss)

   

Change in

Unrealized

Appreciation

(Depreciation)

   

Value at

03/31/23

   

Shares

Held at

03/31/23

    Income    

Capital

Gain

Distributions

from

Underlying

Funds

 

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $ 2,228,868     $     $   (768,333 )(a)    $ (5,126   $ 180     $ 1,455,589       1,455,152     $ 10,386 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    370,000             (110,000 )(a)                  260,000       260,000       8,454        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ (5,126   $ 180     $   1,715,589       $   18,840     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (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

          

TOPIX Index

     1       06/08/23      $ 152      $ 159  

E-Mini Consumer Discretionary Index

     3       06/16/23        457        24,513  

Euro STOXX 50 Index

     7       06/16/23        324        10,895  
          

 

 

 
           $ 35,567  
          

 

 

 

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)

   $      $      $ 35,567      $      $      $      $ 35,567  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (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 March 31, 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

   $      $      $ (129,191    $      $      $      $ (129,191
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                    

Futures contracts

   $      $      $ (38,191    $      $      $      $ (38,191
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Futures contracts

  

Average notional value of contracts — long

   $ 820,257      

 

 

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

  31


Schedule of Investments  (continued)

March 31, 2023

  

iShares® Global Consumer Discretionary 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

   $ 175,388,201        $ 126,110,124        $        $  301,498,325  

Preferred Stocks

              2,394,879                   2,394,879  

Short-Term Securities

                 

Money Market Funds

     1,715,589                            1,715,589  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 177,103,790        $ 128,505,003        $                 —        $ 305,608,793  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(a)

                 

Assets

                 

Equity Contracts

   $ 24,513        $ 11,054        $        $ 35,567  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

32  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments  

March 31, 2023

  

iShares® Global Consumer Staples ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Australia — 1.5%            

Coles Group Ltd.

    504,546     $ 6,096,261  

Endeavour Group Ltd./Australia

    518,262       2,354,618  

Treasury Wine Estates Ltd.

    274,850       2,412,852  

Woolworths Group Ltd.

    463,177       11,775,210  
   

 

 

 
      22,638,941  
Belgium — 1.6%            

Anheuser-Busch InBev SA/NV

    375,941       25,060,165  
   

 

 

 
Brazil — 0.4%            

Ambev SA, ADR

    1,657,110       4,673,050  

Natura & Co. Holding SA

    321,252       836,652  
   

 

 

 
      5,509,702  
Canada — 2.0%            

Alimentation Couche-Tard Inc.

    291,070       14,634,263  

George Weston Ltd.

    24,645       3,265,941  

Loblaw Companies Ltd.

    57,988       5,284,781  

Metro Inc.

    89,580       4,927,397  

Saputo Inc.

    92,840       2,402,231  
   

 

 

 
          30,514,613  
Chile — 0.1%            

Cencosud SA

    513,472       992,204  
   

 

 

 
Denmark — 0.4%            

Carlsberg AS, Class B

    37,473       5,814,568  
   

 

 

 
Finland — 0.1%            

Kesko OYJ, Class B

    103,995       2,234,988  
   

 

 

 
France — 5.2%            

Carrefour SA

    220,262       4,453,166  

Danone SA

    241,886       15,051,019  

L’Oreal SA

    95,604       42,719,943  

Pernod Ricard SA

    77,519       17,552,694  
   

 

 

 
      79,776,822  
Germany —0.6%            

Beiersdorf AG

    36,933       4,804,515  

HelloFresh SE(a)

    65,457       1,560,974  

Henkel AG & Co. KGaA

    37,584       2,734,113  
   

 

 

 
      9,099,602  
Ireland — 0.4%            

Kerry Group PLC, Class A

    59,301       5,913,808  
   

 

 

 
Japan — 5.4%            

Aeon Co. Ltd.

    331,417       6,429,754  

Ajinomoto Co. Inc.

    202,600       7,048,018  

Asahi Group Holdings Ltd.

    192,298       7,156,951  

Japan Tobacco Inc.

    415,500       8,776,833  

Kao Corp.

    176,900       6,885,879  

Kikkoman Corp.

    73,300       3,742,221  

Kirin Holdings Co. Ltd.

    316,396       5,005,629  

MEIJI Holdings Co. Ltd.

    107,200       2,549,564  

Nissin Foods Holdings Co. Ltd.

    30,300       2,770,625  

Seven & i Holdings Co. Ltd.

    303,037       13,689,425  

Shiseido Co. Ltd.

    152,300       7,140,318  

Unicharm Corp.

    167,400       6,881,098  

Yakult Honsha Co. Ltd.

    60,420       4,390,139  
   

 

 

 
      82,466,454  
Mexico — 1.1%            

Fomento Economico Mexicano SAB de CV

    699,397       6,667,947  
Security   Shares     Value  
Mexico (continued)            

Grupo Bimbo SAB de CV, Series A

    522,762     $ 2,630,636  

Wal-Mart de Mexico SAB de CV

    1,927,456       7,704,476  
   

 

 

 
      17,003,059  
Netherlands — 1.7%            

Heineken Holding NV

    41,668       3,822,960  

Heineken NV

    89,913       9,661,220  

Koninklijke Ahold Delhaize NV

    376,489       12,862,787  
   

 

 

 
          26,346,967  
Norway —0.3%            

Mowi ASA

    173,262       3,204,652