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

Table of Contents

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.

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 Index^TM (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

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

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

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

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

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 Index^TM (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

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

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

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

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

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 Index^TM (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

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

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

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

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

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 Index^TM (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

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

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

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

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 Index^TM (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

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

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

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

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 Index^TM (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

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

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

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

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 Index^TM (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

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

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

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

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 Index^TM (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

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

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

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

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 Index^TM (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

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

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

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

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