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MARCH 31, 2023 |
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2023 Annual Report
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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
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.
Rob Kapito
President, BlackRock, Inc.
Rob Kapito
President, BlackRock, Inc.
Total Returns as of March 31, 2023 | ||||||||
6-Month | 12-Month | |||||||
U.S.
large cap equities |
15.62% | (7.73)% | ||||||
U.S.
small cap equities |
9.14 | (11.61) | ||||||
International
equities |
27.27 | (1.38) | ||||||
Emerging
market equities |
14.04 | (10.70) | ||||||
3-month Treasury bills |
1.93 | 2.52 | ||||||
U.S.
Treasury securities |
4.38 | (6.90) | ||||||
U.S.
investment grade bonds |
4.89 | (4.78) | ||||||
Tax-exempt municipal
bonds |
7.00 | 0.26 | ||||||
U.S.
high yield bonds |
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. |
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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 |
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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.
4 |
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 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 | |||||||||||||||||||||||||||
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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 $10,000 INVESTMENT
(AT NET ASSET VALUE)
Index performance through January 30, 2013 is calculated using currency exchange (FX) rates corresponding to 5:15 P.M. ET. Index performance beginning on January 31, 2013 is calculated using FX rates corresponding to World Market Reuters 4:00 P.M. London.
Index performance through June 23, 2019 reflects the performance of the S&P Global 1200 Communication Services Sector IndexTM. Index performance beginning on June 24, 2019 reflects the performance of S&P Global 1200 Communication Services 4.5/22.5/45 Capped IndexTM.
Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
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Beginning Account Value (10/01/22) |
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Ending Account Value (03/31/23) |
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Expenses Paid During the Period |
(a) |
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Beginning Account Value (10/01/22) |
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Ending Account Value (03/31/23) |
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Expenses Paid During the Period |
(a) |
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Annualized Expense Ratio |
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$ 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. |
6 |
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 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 | |||||||||||||||||||||||||||
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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 $10,000 INVESTMENT
(AT NET ASSET VALUE)
Index performance through January 30, 2013 is calculated using currency exchange (FX) rates corresponding to 5:15 P.M. ET. Index performance beginning on January 31, 2013 is calculated using FX rates corresponding to World Market Reuters 4:00 P.M. London.
Index performance through September 22, 2019 reflects the performance of the S&P Global 1200 Consumer Discretionary Sector IndexTM. Index performance beginning on September 23, 2019 reflects the performance of the S&P Global 1200 Consumer Discretionary (Sector) Capped IndexTM.
Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
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Beginning Account Value (10/01/22) |
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Ending Account Value (03/31/23) |
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Expenses Paid During the Period |
(a) |
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Beginning Account Value (10/01/22) |
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Ending Account Value (03/31/23) |
|
|
Expenses Paid During the Period |
(a) |
|
Annualized Expense Ratio |
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$ 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. |
8 |
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 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 | |||||||||||||||||||||||||||
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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)
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 | |||||||||||||||||||||||||
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Beginning Account Value (10/01/22) |
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Ending Account Value (03/31/23) |
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Expenses Paid During the Period |
(a) |
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Beginning Account Value (10/01/22) |
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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. |
10 |
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 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 | |||||||||||||||||||||||||||
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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 $10,000 INVESTMENT
(AT NET ASSET VALUE)
Index performance through January 30, 2013 is calculated using currency exchange (FX) rates corresponding to 5:15 P.M. ET. Index performance beginning on January 31, 2013 is calculated using FX rates corresponding to World Market Reuters 4:00 P.M. London.
Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
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Beginning Account Value (10/01/22) |
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Ending Account Value (03/31/23) |
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Expenses Paid During the Period |
(a) |
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Beginning Account Value (10/01/22) |
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Ending Account Value (03/31/23) |
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Expenses Paid During the Period |
(a) |
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Annualized Expense Ratio |
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$ 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)
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)
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)
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)
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 |
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 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)
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 |
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 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)
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 |
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 |
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.
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 |
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% |
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% |
135,853 | |||||||
|
|
|||||||
Total
Long-Term Investments — 99.7% |
255,794,474 | |||||||
|
|
26 |
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 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% |
|
1,564,044 | ||||||
|
|
|||||||
Total
Investments — 100.3% |
|
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% |
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% |
2,394,879 | |||||||
|
|
|||||||
Total
Long-Term Investments — 99.7% |
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% |
|
1,715,589 | ||||||
|
|
|||||||
Total
Investments — 100.2% |
|
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 (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 | ||||||
Orkla ASA |
285,975 | 2,028,281 | ||||||
|
|
|||||||
5,232,933 | ||||||||
Sweden — 0.4% | ||||||||
Essity AB, Class B |
229,483 | 6,554,927 | ||||||
|
|
|||||||
Switzerland — 8.7% | ||||||||
Barry Callebaut AG, Registered |
1,353 | 2,866,694 | ||||||
Chocoladefabriken Lindt & Spruengli AG, Participation Certificates, NVS |
389 | 4,594,339 | ||||||
Chocoladefabriken Lindt & Spruengli AG, Registered |
40 | 4,737,443 | ||||||
Nestle SA, Registered |
1,003,134 | 122,312,634 | ||||||
|
|
|||||||
134,511,110 | ||||||||
United Kingdom — 11.5% | ||||||||
Associated British Foods PLC |
135,723 | 3,257,064 | ||||||
British American Tobacco PLC |
849,670 | 29,784,645 | ||||||
Diageo PLC |
885,002 | 39,497,307 | ||||||
Haleon PLC |
1,933,882 | 7,682,214 | ||||||
Imperial Brands PLC |
365,377 | 8,402,081 | ||||||
J Sainsbury PLC |
669,636 | 2,304,340 | ||||||
Marks & Spencer Group PLC(a) |
748,135 | 1,543,389 | ||||||
Ocado Group PLC(a) |
276,767 | 1,832,584 | ||||||
Reckitt Benckiser Group PLC |
279,482 | 21,262,284 | ||||||
Tesco PLC |
2,819,555 | 9,243,712 | ||||||
Unilever PLC |
998,252 | 51,728,414 | ||||||
|
|
|||||||
176,538,034 | ||||||||
United States — 57.6% | ||||||||
Altria Group Inc. |
678,497 | 30,274,536 | ||||||
Archer-Daniels-Midland Co. |
207,556 | 16,533,911 | ||||||
Brown-Forman Corp., Class B |
69,638 | 4,475,634 | ||||||
Bunge Ltd. |
56,574 | 5,403,949 | ||||||
Campbell Soup Co. |
76,391 | 4,199,977 | ||||||
Church & Dwight Co. Inc. |
92,161 | 8,147,954 | ||||||
Clorox Co. (The) |
47,028 | 7,441,711 | ||||||
Coca-Cola Co. (The) |
1,093,096 | 67,804,745 | ||||||
Colgate-Palmolive Co. |
317,171 | 23,835,401 | ||||||
Conagra Brands Inc. |
179,823 | 6,754,152 | ||||||
Constellation Brands Inc., Class A |
61,540 | 13,901,271 | ||||||
Costco Wholesale Corp. |
135,025 | 67,089,872 | ||||||
Dollar General Corp. |
85,126 | 17,915,618 | ||||||
Dollar Tree Inc.(a) |
79,163 | 11,363,849 | ||||||
Estee Lauder Companies Inc. (The), Class A |
87,954 | 21,677,143 | ||||||
General Mills Inc. |
223,713 | 19,118,513 | ||||||
Hershey Co. (The) |
55,906 | 14,223,045 | ||||||
Hormel Foods Corp. |
110,263 | 4,397,288 | ||||||
JM Smucker Co. (The) |
40,595 | 6,388,435 | ||||||
Kellogg Co. |
97,459 | 6,525,855 | ||||||
Keurig Dr Pepper Inc. |
323,533 | 11,414,244 | ||||||
Kimberly-Clark Corp. |
128,030 | 17,184,187 | ||||||
Kraft Heinz Co. (The) |
303,154 | 11,722,965 |
S C H E D U L E O F I N V E S T M E N T S |
33 |
Schedule of Investments (continued) March 31, 2023 |
iShares® Global Consumer Staples ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
United States (continued) | ||||||||
Kroger Co. (The) |
246,780 | $ | 12,183,529 | |||||
Lamb Weston Holdings Inc. |
54,778 | 5,725,397 | ||||||
McCormick & Co. Inc./MD, NVS |
95,464 | 7,943,559 | ||||||
Molson Coors Beverage Co., Class B |
71,580 | 3,699,254 | ||||||
Mondelez International Inc., Class A |
518,127 | 36,123,814 | ||||||
Monster Beverage Corp.(a) |
290,035 | 15,664,790 | ||||||
PepsiCo Inc. |
502,384 | 91,584,603 | ||||||
Philip Morris International Inc. |
589,193 | 57,299,019 | ||||||
Procter & Gamble Co. (The) |
860,558 | 127,956,369 | ||||||
Sysco Corp. |
192,489 | 14,865,925 | ||||||
Target Corp. |
174,685 | 28,933,077 | ||||||
Tyson Foods Inc., Class A |
108,744 | 6,450,694 | ||||||
Walgreens Boots Alliance Inc. |
272,574 | 9,425,609 | ||||||
Walmart Inc. |
475,231 | 70,072,811 | ||||||
|
|
|||||||
885,722,705 | ||||||||
|
|
|||||||
Total
Common Stocks — 99.0% |
|
1,521,931,602 | ||||||
|
|
|||||||
Preferred Stocks |
||||||||
Germany —0.4% | ||||||||
Henkel AG & Co. KGaA, Preference Shares, NVS |
67,833 | 5,306,842 | ||||||
|
|
|||||||
Total
Preferred Stocks — 0.4% |
|
5,306,842 | ||||||
|
|
|||||||
Total
Long-Term Investments — 99.4% |
|
1,527,238,444 | ||||||
|
|
Security | Shares | Value | ||||||
Short-Term Securities |
||||||||
Money Market Funds — 0.1% | ||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 4.73%(b)(c) |
2,050,000 | $ | 2,050,000 | |||||
|
|
|||||||
Total
Short-Term Securities — 0.1% |
|
2,050,000 | ||||||
|
|
|||||||
Total
Investments — 99.5% |
|
1,529,288,444 | ||||||
Other Assets Less Liabilities — 0.5% |
7,390,662 | |||||||
|
|
|||||||
Net Assets — 100.0% |
$ | 1,536,679,106 | ||||||
|
|
(a) |
Non-income producing security. |
(b) |
Affiliate of the Fund. |
(c) |
Annualized 7-day yield as of period end. |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the year ended 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(a) |
$ | 404,159 | $ | — | $ | (409,281 | )(b) | $ | 5,141 | $ | (19 | ) | $ | — | — | $ | 7,826 | (c) | $ | — | ||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares |
1,390,000 | 660,000 | (b) | — | — | — | 2,050,000 | 2,050,000 | 46,735 | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
$ | 5,141 | $ | (19 | ) | $ | 2,050,000 | $ | 54,561 | $ | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) |
As of period end, the entity is no longer held. |
(b) |
Represents net amount purchased (sold). |
(c) |
All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
|
||||||||||||||||
Description | Number of Contracts |
Expiration Date |
Notional Amount (000) |
Value/ Unrealized Appreciation (Depreciation) |
||||||||||||
|
||||||||||||||||
Long Contracts |
||||||||||||||||
E-Mini Consumer Staples Index |
96 | 06/16/23 | $ | 7,274 | $ | 302,710 |
34 |
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 Staples ETF |
Futures Contracts (continued)
|
||||||||||||||||
Description |
Number of Contracts |
Expiration Date |
Notional Amount (000) |
Value/ Unrealized Appreciation (Depreciation) |
||||||||||||
|
||||||||||||||||
Euro STOXX 50 Index |
7 | 06/16/23 | $ | 324 | $ | 8,911 | ||||||||||
FTSE 100 Index |
15 | 06/16/23 | 1,416 | 22,741 | ||||||||||||
|
|
|||||||||||||||
$ | 334,362 | |||||||||||||||
|
|
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) |
$ | — | $ | — | $ | 334,362 | $ | — | $ | — | $ | — | $ | 334,362 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 |
$ | — | $ | — | $ | (1,432 | ) | $ | — | $ | — | $ | — | $ | (1,432 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on |
||||||||||||||||||||||||||||
Futures contracts |
$ | — | $ | — | $ | 108,887 | $ | — | $ | — | $ | — | $ | 108,887 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
|
||||
Futures contracts |
||||
Average notional value of contracts — long |
$ | 6,763,108 | ||
|
||||
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 |
$ | 939,742,283 | $ | 582,189,319 | $ | — | $ | 1,521,931,602 | ||||||||
Preferred Stocks |
— | 5,306,842 | — | 5,306,842 | ||||||||||||
Short-Term Securities |
||||||||||||||||
Money Market Funds |
2,050,000 | — | — | 2,050,000 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 941,792,283 | $ | 587,496,161 | $ | — | $ | 1,529,288,444 | |||||||||
|
|
|
|
|
|
|
|
S C H E D U L E O F I N V E S T M E N T S |
35 |
Schedule of Investments (continued) March 31, 2023 |
iShares® Global Consumer Staples ETF |
Fair Value Hierarchy as of Period End (continued)
|
||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
|
||||||||||||||||
Derivative Financial Instruments(a) |
||||||||||||||||
Assets |
||||||||||||||||
Equity Contracts |
$ | 302,710 | $ | 31,652 | $ | — | $ | 334,362 | ||||||||
|
|
|
|
|
|
|
|
(a) |
Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument. |
See notes to financial statements.
36 |
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 Energy ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
||||||||
Australia — 2.4% |
||||||||
Ampol Ltd. |
164,074 | $ | 3,345,130 | |||||
Santos Ltd. |
2,281,466 | 10,500,214 | ||||||
Woodside Energy Group Ltd. |
1,307,528 | 29,210,368 | ||||||
|
|
|||||||
43,055,712 | ||||||||
Austria — 0.3% | ||||||||
OMV AG |
98,964 | 4,544,737 | ||||||
|
|
|||||||
Brazil — 0.7% |
||||||||
Petroleo Brasileiro SA, ADR |
1,278,712 | 13,336,966 | ||||||
|
|
|||||||
Canada — 11.3% |
||||||||
Cameco Corp. |
297,838 | 7,799,102 | ||||||
Canadian Natural Resources Ltd. |
762,531 | 42,197,332 | ||||||
Cenovus Energy Inc. |
952,359 | 16,616,075 | ||||||
Enbridge Inc. |
1,394,403 | 53,165,806 | ||||||
Imperial Oil Ltd. |
120,215 | 6,113,486 | ||||||
Pembina Pipeline Corp. |
379,808 | 12,303,362 | ||||||
Suncor Energy Inc. |
930,697 | 28,895,336 | ||||||
TC Energy Corp. |
700,932 | 27,264,517 | ||||||
Tourmaline Oil Corp. |
218,516 | 9,106,046 | ||||||
|
|
|||||||
203,461,062 | ||||||||
Chile — 0.1% | ||||||||
Empresas COPEC SA |
249,166 | 1,758,509 | ||||||
|
|
|||||||
Colombia — 0.1% |
||||||||
Ecopetrol SA, ADR |
167,872 | 1,772,728 | ||||||
|
|
|||||||
Finland — 0.8% |
||||||||
Neste OYJ |
296,089 | 14,627,944 | ||||||
|
|
|||||||
France — 5.3% |
||||||||
Total Energies SE |
1,611,968 | 95,047,552 | ||||||
|
|
|||||||
Italy —1.6% |
||||||||
Eni SpA |
1,721,593 | 24,009,962 | ||||||
Tenaris SA |
315,367 | 4,468,494 | ||||||
|
|
|||||||
28,478,456 | ||||||||
Japan — 0.9% | ||||||||
ENEOS Holdings Inc. |
2,225,120 | 7,806,856 | ||||||
Inpex Corp. |
727,800 | 7,701,959 | ||||||
|
|
|||||||
15,508,815 | ||||||||
Norway —1.4% | ||||||||
Aker BP ASA |
214,623 | 5,263,634 | ||||||
Equinor ASA |
721,667 | 20,515,835 | ||||||
|
|
|||||||
25,779,469 | ||||||||
Portugal — 0.2% | ||||||||
Galp Energia SGPS SA |
314,192 | 3,555,168 | ||||||
|
|
|||||||
Spain — 0.8% |
||||||||
Repsol SA |
913,543 | 14,048,338 | ||||||
|
|
|||||||
United Kingdom — 12.2% |
||||||||
BP PLC |
12,589,191 | 79,570,217 | ||||||
Shell PLC |
4,896,333 | 139,538,489 | ||||||
|
|
|||||||
219,108,706 |
Security | Shares | Value | ||||||
United States — 60.6% |
||||||||
APA Corp. |
221,590 | $ | 7,990,535 | |||||
Baker Hughes Co. |
693,015 | 20,000,413 | ||||||
Chevron Corp. |
1,225,030 | 199,875,895 | ||||||
ConocoPhillips |
842,779 | 83,612,104 | ||||||
Coterra Energy Inc. |
544,015 | 13,350,128 | ||||||
Devon Energy Corp. |
450,154 | 22,782,294 | ||||||
Diamondback Energy Inc. |
126,786 | 17,137,664 | ||||||
EOG Resources Inc. |
404,490 | 46,366,689 | ||||||
EQT Corp. |
253,095 | 8,076,261 | ||||||
Exxon Mobil Corp. |
2,835,762 | 310,969,661 | ||||||
Halliburton Co. |
622,135 | 19,684,351 | ||||||
Hess Corp. |
191,076 | 25,286,998 | ||||||
Kinder Morgan Inc. |
1,361,641 | 23,842,334 | ||||||
Marathon Oil Corp. |
438,859 | 10,515,062 | ||||||
Marathon Petroleum Corp. |
312,636 | 42,152,712 | ||||||
Occidental Petroleum Corp. |
501,281 | 31,294,973 | ||||||
ONEOK Inc. |
307,868 | 19,561,933 | ||||||
Phillips 66 |
321,108 | 32,553,929 | ||||||
Pioneer Natural Resources Co. |
163,773 | 33,448,997 | ||||||
Schlumberger NV |
977,978 | 48,018,720 | ||||||
Targa Resources Corp. |
156,353 | 11,405,951 | ||||||
Valero Energy Corp. |
265,445 | 37,056,122 | ||||||
Williams Companies Inc. (The) |
838,187 | 25,028,264 | ||||||
|
|
|||||||
1,090,011,990 | ||||||||
|
|
|||||||
Total
Common Stocks — 98.7% |
|
1,774,096,152 | ||||||
|
|
|||||||
Preferred Stocks |
||||||||
Brazil — 0.8% |
||||||||
Petroleo Brasileiro SA, Preference Shares, ADR |
1,584,021 | 14,699,715 | ||||||
|
|
|||||||
Total
Preferred Stocks — 0.8% |
14,699,715 | |||||||
|
|
|||||||
Total
Long-Term Investments — 99.5% |
1,788,795,867 | |||||||
|
|
|||||||
Short-Term Securities |
||||||||
Money Market Funds — 0.2% |
||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 4.73%(a)(b) |
3,710,000 | 3,710,000 | ||||||
|
|
|||||||
Total
Short-Term Securities — 0.2% |
3,710,000 | |||||||
|
|
|||||||
Total
Investments — 99.7% |
1,792,505,867 | |||||||
Other Assets Less Liabilities — 0.3% |
6,270,272 | |||||||
|
|
|||||||
Net Assets — 100.0% |
$ | 1,798,776,139 | ||||||
|
|
(a) |
Affiliate of the Fund. |
(b) |
Annualized 7-day yield as of period end. |
S C H E D U L E O F I N V E S T M E N T S |
37 |
Schedule of Investments (continued) March 31, 2023 |
iShares® Global Energy 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(a) |
$ | — | $ | 4,166 | (b) | $ | — | $ | (4,166 | ) | $ | — | $ | — | — | $ | 4,211 | (c) | $ | — | ||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares |
3,430,000 | 280,000 | (b) | — | — | — | 3,710,000 | 3,710,000 | 98,055 | 3 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
$ | (4,166 | ) | $ | — | $ | 3,710,000 | $ | 102,266 | $ | 3 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) |
As of period end, the entity is no longer held. |
(b) |
Represents net amount purchased (sold). |
(c) |
All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
|
||||||||||||||||
Description |
Number of Contracts |
Expiration Date |
Notional Amount (000) |
Value/ Unrealized Appreciation (Depreciation) |
||||||||||||
|
||||||||||||||||
Long Contracts |
||||||||||||||||
E-Mini Energy Select Sector Index |
98 | 06/16/23 | $ | 8,556 | $ | 165,243 | ||||||||||
FTSE 100 Index |
15 | 06/16/23 | 1,416 | 7,842 | ||||||||||||
|
|
|||||||||||||||
$ | 173,085 | |||||||||||||||
|
|
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) |
$ | — | $ | — | $ | 173,085 | $ | — | $ | — | $ | — | $ | 173,085 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 |
$ | — | $ | — | $ | (2,539,479 | ) | $ | — | $ | — | $ | — | $ | (2,539,479 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on |
||||||||||||||||||||||||||||
Futures contracts |
$ | — | $ | — | $ | 107,699 | $ | — | $ | — | $ | — | $ | 107,699 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
|
||||
Futures contracts |
||||
Average notional value of contracts — long |
$ | 8,875,282 | ||
|
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
38 |
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 Energy 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 |
$ | 1,310,341,255 | $ | 463,754,897 | $ | — | $ | 1,774,096,152 | ||||||||
Preferred Stocks |
14,699,715 | — | — | 14,699,715 | ||||||||||||
Short-Term Securities |
||||||||||||||||
Money Market Funds |
3,710,000 | — | — | 3,710,000 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 1,328,750,970 | $ | 463,754,897 | $ | — | $ | 1,792,505,867 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Derivative Financial Instruments(a) |
||||||||||||||||
Assets |
||||||||||||||||
Equity Contracts |
$ | 165,243 | $ | 7,842 | $ | — | $ | 173,085 | ||||||||
|
|
|
|
|
|
|
|
(a) |
Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument. |
See notes to financial statements.
S C H E D U L E O F I N V E S T M E N T S |
39 |
Schedule of Investments March 31, 2023 |
iShares® Global Financials ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
||||||||
Australia — 4.4% | ||||||||
ASX Ltd. |
10,084 | $ | 440,375 | |||||
Australia & New Zealand Banking Group Ltd. |
156,198 | 2,407,029 | ||||||
Commonwealth Bank of Australia |
87,818 | 5,798,229 | ||||||
Insurance Australia Group Ltd. |
127,417 | 401,070 | ||||||
Macquarie Group Ltd. |
18,904 | 2,238,228 | ||||||
Medibank Pvt Ltd. |
143,222 | 323,205 | ||||||
National Australia Bank Ltd. |
163,345 | 3,043,664 | ||||||
QBE Insurance Group Ltd. |
77,223 | 756,053 | ||||||
Suncorp Group Ltd. |
65,744 | 534,178 | ||||||
Westpac Banking Corp. |
182,493 | 2,657,026 | ||||||
|
|
|||||||
18,599,057 | ||||||||
Austria — 0.1% | ||||||||
Erste Group Bank AG |
18,567 | 615,112 | ||||||
|
|
|||||||
Belgium — 0.5% | ||||||||
Ageas SA/NV |
9,283 | 401,567 | ||||||
Groupe Bruxelles Lambert NV |
5,265 | 449,315 | ||||||
KBC Group NV |
17,589 | 1,208,554 | ||||||
|
|
|||||||
2,059,436 | ||||||||
Brazil — 0.4% | ||||||||
B3 SA - Brasil, Bolsa, Balcao |
317,175 | 647,685 | ||||||
Banco do Brasil SA |
74,519 | 575,016 | ||||||
NU Holdings Ltd.(a) |
118,856 | 565,755 | ||||||
|
|
|||||||
1,788,456 | ||||||||
Canada — 7.2% | ||||||||
Bank of Montreal |
36,904 | 3,287,091 | ||||||
Bank of Nova Scotia (The) |
61,965 | 3,120,945 | ||||||
Brookfield Asset Management Ltd. |
18,661 | 611,264 | ||||||
Brookfield Corp. |
74,286 | 2,420,135 | ||||||
Canadian Imperial Bank of Commerce |
47,115 | 1,997,899 | ||||||
Intact Financial Corp. |
9,116 | 1,304,637 | ||||||
Manulife Financial Corp. |
96,643 | 1,773,397 | ||||||
National Bank of Canada |
17,550 | 1,255,315 | ||||||
Power Corp. of Canada |
29,293 | 748,635 | ||||||
Royal Bank of Canada |
71,894 | 6,875,545 | ||||||
Sun Life Financial Inc. |
30,504 | 1,425,100 | ||||||
Toronto-Dominion Bank (The) |
94,735 | 5,674,287 | ||||||
|
|
|||||||
30,494,250 | ||||||||
Chile — 0.1% | ||||||||
Banco de Chile |
2,258,864 | 219,382 | ||||||
Banco Santander Chile, ADR |
7,691 | 137,130 | ||||||
|
|
|||||||
356,512 | ||||||||
China — 2.3% | ||||||||
Bank of China Ltd., Class H |
4,017,000 | 1,539,984 | ||||||
China Construction Bank Corp., Class H |
5,110,720 | 3,307,632 | ||||||
China Merchants Bank Co. Ltd., Class H |
172,500 | 875,958 | ||||||
Industrial & Commercial Bank of China Ltd., Class H |
3,703,000 | 1,967,919 | ||||||
Ping An Insurance Group Co. of China Ltd., Class H |
320,500 | 2,073,383 | ||||||
|
|
|||||||
9,764,876 | ||||||||
Colombia — 0.0% | ||||||||
Bancolombia SA, ADR |
5,882 | 147,815 | ||||||
|
|
|||||||
Denmark — 0.3% | ||||||||
Danske Bank A/S(a) |
35,424 | 712,688 | ||||||
Tryg A/S |
18,729 | 409,520 | ||||||
|
|
|||||||
1,122,208 |
Security | Shares | Value | ||||||
Finland — 0.3% | ||||||||
Sampo OYJ, Class A |
24,974 | $ | 1,178,401 | |||||
|
|
|||||||
France — 2.4% |
||||||||
AXA SA |
103,956 | 3,172,485 | ||||||
BNP Paribas SA |
59,055 | 3,526,618 | ||||||
Credit Agricole SA |
71,217 | 803,413 | ||||||
Edenred |
12,990 | 768,809 | ||||||
Euronext NV(b) |
5,182 | 396,811 | ||||||
Societe Generale SA |
39,102 | 881,021 | ||||||
Worldline SA/France(a)(b) |
13,038 | 554,096 | ||||||
|
|
|||||||
10,103,253 | ||||||||
Germany —2.7% | ||||||||
Allianz SE, Registered |
20,984 | 4,843,863 | ||||||
Commerzbank AG(a) |
54,721 | 576,116 | ||||||
Deutsche Bank AG, Registered |
107,493 | 1,093,118 | ||||||
Deutsche Boerse AG |
9,887 | 1,925,098 | ||||||
Hannover Rueck SE |
3,146 | 615,296 | ||||||
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen, Registered |
7,290 | 2,548,842 | ||||||
|
|
|||||||
11,602,333 | ||||||||
Hong Kong — 2.2% | ||||||||
AIA Group Ltd. |
608,600 | 6,382,604 | ||||||
Hong Kong Exchanges & Clearing Ltd. |
65,000 | 2,881,105 | ||||||
|
|
|||||||
9,263,709 | ||||||||
Ireland — 0.1% | ||||||||
Bank of Ireland Group PLC |
52,328 | 529,470 | ||||||
|
|
|||||||
Italy —1.6% |
||||||||
Assicurazioni Generali SpA |
62,732 | 1,249,910 | ||||||
FinecoBank Banca Fineco SpA |
31,741 | 486,307 | ||||||
Intesa Sanpaolo SpA |
888,726 | 2,280,862 | ||||||
Mediobanca Banca di Credito Finanziario SpA |
33,127 | 332,891 | ||||||
Nexi SpA(a)(b) |
44,345 | 360,398 | ||||||
UniCredit SpA |
100,643 | 1,896,905 | ||||||
|
|
|||||||
6,607,273 | ||||||||
Japan — 4.3% | ||||||||
Dai-ichi Life Holdings Inc. |
53,400 | 981,678 | ||||||
Daiwa Securities Group Inc. |
78,100 | 366,650 | ||||||
Japan Exchange Group Inc. |
28,000 | 428,228 | ||||||
Japan Post Holdings Co. Ltd. |
126,000 | 1,022,612 | ||||||
Mitsubishi UFJ Financial Group Inc. |
634,000 | 4,063,096 | ||||||
Mizuho Financial Group Inc. |
132,110 | 1,871,677 | ||||||
MS&AD Insurance Group Holdings Inc. |
23,600 | 731,384 | ||||||
Nomura Holdings Inc. |
157,800 | 608,369 | ||||||
ORIX Corp. |
61,500 | 1,014,013 | ||||||
Resona Holdings Inc. |
123,700 | 596,746 | ||||||
Sompo Holdings Inc. |
18,500 | 733,064 | ||||||
Sumitomo Mitsui Financial Group Inc. |
71,900 | 2,877,263 | ||||||
Sumitomo Mitsui Trust Holdings Inc. |
19,427 | 667,433 | ||||||
T&D Holdings Inc. |
30,100 | 373,056 | ||||||
Tokio Marine Holdings Inc. |
106,300 | 2,045,737 | ||||||
|
|
|||||||
18,381,006 | ||||||||
Mexico — 0.3% | ||||||||
Grupo Financiero Banorte SAB de CV, Class O |
127,702 | 1,076,467 | ||||||
|
|
|||||||
Netherlands — 1.5% |
||||||||
ABN AMRO Bank NV, CVA(b) |
21,526 | 341,347 | ||||||
Adyen NV(a)(b) |
1,601 | 2,551,078 | ||||||
Aegon NV |
73,507 | 315,577 | ||||||
EXOR NV, NVS(a) |
6,028 | 497,066 |
40 |
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 Financials ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Netherlands (continued) |
||||||||
ING Groep NV |
193,800 | $ | 2,301,440 | |||||
NN Group NV |
15,355 | 557,539 | ||||||
|
|
|||||||
6,564,047 | ||||||||
Norway — 0.2% | ||||||||
DNB Bank ASA |
46,765 | 836,894 | ||||||
|
|
|||||||
Peru — 0.1% |
||||||||
Credicorp Ltd. |
3,548 | 469,720 | ||||||
|
|
|||||||
Singapore — 1.4% |
||||||||
DBS Group Holdings Ltd. |
95,600 | 2,376,782 | ||||||
Oversea-Chinese Banking Corp. Ltd. |
210,900 | 1,965,964 | ||||||
United Overseas Bank Ltd. |
81,200 | 1,821,238 | ||||||
|
|
|||||||
6,163,984 | ||||||||
South Korea — 0.3% | ||||||||
KB Financial Group Inc. |
19,998 | 730,371 | ||||||
Shinhan Financial Group Co. Ltd. |
26,460 | 718,794 | ||||||
|
|
|||||||
1,449,165 | ||||||||
Spain — 1.5% | ||||||||
Banco Bilbao Vizcaya Argentaria SA |
313,590 | 2,241,967 | ||||||
Banco Santander SA |
873,359 | 3,254,554 | ||||||
CaixaBank SA |
210,685 | 822,083 | ||||||
|
|
|||||||
6,318,604 | ||||||||
Sweden — 1.7% | ||||||||
EQTAB |
17,261 | 352,597 | ||||||
Industrivarden AB, Class A |
9,495 | 256,626 | ||||||
Industrivarden AB, Class C |
8,908 | 240,198 | ||||||
Investor AB, Class B |
94,751 | 1,887,495 | ||||||
Kinnevik AB, Class B(a) |
12,632 | 188,885 | ||||||
Nordea Bank Abp |
166,685 | 1,779,911 | ||||||
Skandinaviska Enskilda Banken AB, Class A |
88,526 | 977,173 | ||||||
Svenska Handelsbanken AB, Class A |
79,906 | 692,055 | ||||||
Swedbank AB, Class A |
47,696 | 784,342 | ||||||
|
|
|||||||
7,159,282 | ||||||||
Switzerland — 2.9% | ||||||||
Baloise Holding AG, Registered |
2,389 | 372,006 | ||||||
Credit Suisse Group AG, Registered(c) |
191,107 | 171,619 | ||||||
Julius Baer Group Ltd. |
11,126 | 760,000 | ||||||
Partners Group Holding AG |
1,171 | 1,102,757 | ||||||
Swiss Life Holding AG, Registered |
1,604 | 989,839 | ||||||
Swiss Re AG |
15,028 | 1,543,878 | ||||||
UBS Group AG, Registered |
183,293 | 3,878,624 | ||||||
Zurich Insurance Group AG |
7,798 | 3,736,791 | ||||||
|
|
|||||||
12,555,514 | ||||||||
Taiwan — 0.5% | ||||||||
Cathay Financial Holding Co. Ltd. |
496,521 | 683,634 | ||||||
CTBC Financial Holding Co. Ltd. |
1,024,000 | 737,413 | ||||||
Fubon Financial Holding Co. Ltd. |
410,000 | 763,053 | ||||||
|
|
|||||||
2,184,100 | ||||||||
United Kingdom — 5.0% | ||||||||
3i Group PLC |
50,622 | 1,055,138 | ||||||
abrdn PLC |
104,111 | 262,034 | ||||||
Admiral Group PLC |
14,341 | 360,116 | ||||||
Aviva PLC |
146,064 | 729,609 | ||||||
Barclays PLC |
784,357 | 1,411,767 | ||||||
Direct Line Insurance Group PLC |
68,171 | 115,806 | ||||||
Hargreaves Lansdown PLC |
18,261 | 180,902 | ||||||
HSBC Holdings PLC |
1,038,390 | 7,057,412 | ||||||
Intermediate Capital Group PLC |
15,301 | 230,953 |
Security | Shares | Value | ||||||
United Kingdom (continued) |
||||||||
Legal & General Group PLC |
310,634 | $ | 918,732 | |||||
Lloyds Banking Group PLC |
3,498,204 | 2,056,759 | ||||||
London Stock Exchange Group PLC |
19,750 | 1,918,311 | ||||||
M&G PLC |
123,495 | 302,690 | ||||||
NatWest Group PLC, NVS |
263,091 | 858,472 | ||||||
Phoenix Group Holdings PLC |
44,228 | 298,823 | ||||||
Prudential PLC . |
149,844 | 2,051,608 | ||||||
Schroders PLC |
47,794 | 272,543 | ||||||
St. James’s Place PLC |
28,304 | 424,714 | ||||||
Standard Chartered PLC |
126,450 | 958,373 | ||||||
|
|
|||||||
21,464,762 | ||||||||
United States — 54.2% | ||||||||
Aflac Inc. |
29,130 | 1,879,468 | ||||||
Allstate Corp. (The) |
13,681 | 1,515,992 | ||||||
American Express Co. |
30,974 | 5,109,161 | ||||||
American International Group Inc. |
38,640 | 1,945,910 | ||||||
Ameriprise Financial Inc. |
5,426 | 1,663,069 | ||||||
Aon PLC, Class A |
10,641 | 3,355,001 | ||||||
Arch Capital Group Ltd.(a)(c) |
19,242 | 1,305,955 | ||||||
Arthur J Gallagher & Co. |
11,043 | 2,112,636 | ||||||
Assurant Inc. |
2,872 | 344,841 | ||||||
Bank of America Corp. |
362,392 | 10,364,411 | ||||||
Bank of New York Mellon Corp. (The) |
38,253 | 1,738,216 | ||||||
Berkshire Hathaway Inc., Class B(a) |
93,647 | 28,915,384 | ||||||
BlackRock Inc.(d) |
7,764 | 5,195,048 | ||||||
Brown & Brown Inc. |
12,231 | 702,304 | ||||||
Capital One Financial Corp. |
19,833 | 1,907,141 | ||||||
Cboe Global Markets Inc. |
5,534 | 742,884 | ||||||
Charles Schwab Corp. (The) |
79,338 | 4,155,725 | ||||||
Chubb Ltd. |
21,509 | 4,176,618 | ||||||
Cincinnati Financial Corp. |
8,183 | 917,151 | ||||||
Citigroup Inc. |
100,739 | 4,723,652 | ||||||
Citizens Financial Group Inc. |
25,615 | 777,928 | ||||||
CME Group Inc. |
18,708 | 3,582,956 | ||||||
Comerica Inc. |
6,818 | 296,038 | ||||||
Discover Financial Services |
13,902 | 1,374,074 | ||||||
Everest Re Group Ltd. |
2,048 | 733,225 | ||||||
FactSet Research Systems Inc. |
1,993 | 827,274 | ||||||
Fidelity National Information Services Inc. |
30,875 | 1,677,439 | ||||||
Fifth Third Bancorp |
35,550 | 947,052 | ||||||
First Republic Bank/CA(c) |
9,672 | 135,311 | ||||||
Fiserv Inc.(a) |
33,033 | 3,733,720 | ||||||
FleetCor Technologies Inc.(a) |
3,839 | 809,453 | ||||||
Franklin Resources Inc. |
14,843 | 399,870 | ||||||
Global Payments Inc. |
13,685 | 1,440,209 | ||||||
Globe Life Inc. |
4,709 | 518,084 | ||||||
Goldman Sachs Group Inc. (The) |
17,613 | 5,761,388 | ||||||
Hartford Financial Services Group Inc. (The) |
16,390 | 1,142,219 | ||||||
Huntington Bancshares Inc./OH |
75,045 | 840,504 | ||||||
Intercontinental Exchange Inc. |
29,067 | 3,031,397 | ||||||
Invesco Ltd. |
23,656 | 387,958 | ||||||
Jack Henry & Associates Inc. |
3,813 | 574,695 | ||||||
JPMorgan Chase & Co. |
152,409 | 19,860,417 | ||||||
KeyCorp |
48,547 | 607,809 | ||||||
Lincoln National Corp. |
8,010 | 179,985 | ||||||
Loews Corp. |
10,152 | 589,019 | ||||||
M&T Bank Corp. |
8,815 | 1,054,010 | ||||||
MarketAxess Holdings Inc. |
1,930 | 755,190 | ||||||
Marsh & McLennan Companies Inc. |
25,747 | 4,288,163 | ||||||
Mastercard Inc., Class A |
43,836 | 15,930,441 |
S C H E D U L E O F I N V E S T M E N T S |
41 |
Schedule of Investments (continued) March 31, 2023 |
iShares® Global Financials ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
United States (continued) | ||||||||
MetLife Inc. |
34,286 | $ | 1,986,531 | |||||
Moody’s Corp. |
8,205 | 2,510,894 | ||||||
Morgan Stanley |
67,949 | 5,965,922 | ||||||
MSCI Inc. |
4,142 | 2,318,236 | ||||||
Nasdaq Inc. |
17,634 | 964,051 | ||||||
Northern Trust Corp. |
10,841 | 955,417 | ||||||
PayPal Holdings Inc.(a) |
58,841 | 4,468,386 | ||||||
PNC Financial Services Group Inc. (The) |
20,864 | 2,651,814 | ||||||
Principal Financial Group Inc. |
11,832 | 879,354 | ||||||
Progressive Corp. (The) |
30,422 | 4,352,171 | ||||||
Prudential Financial Inc. |
19,149 | 1,584,388 | ||||||
Raymond James Financial Inc. |
10,092 | 941,281 | ||||||
Regions Financial Corp. |
48,588 | 901,793 | ||||||
S&P Global Inc. |
17,078 | 5,887,982 | ||||||
State Street Corp. |
18,161 | 1,374,606 | ||||||
Synchrony Financial |
22,742 | 661,337 | ||||||
T Rowe Price Group Inc. |
11,681 | 1,318,785 | ||||||
Travelers Companies Inc. (The) |
12,032 | 2,062,405 | ||||||
Truist Financial Corp. |
69,012 | 2,353,309 | ||||||
U.S. Bancorp. |
72,451 | 2,611,859 | ||||||
Visa Inc., Class A |
84,432 | 19,036,039 | ||||||
W R Berkley Corp. |
10,595 | 659,645 | ||||||
Wells Fargo & Co. |
197,724 | 7,390,923 | ||||||
Willis Towers Watson PLC |
5,555 | 1,290,871 | ||||||
Zions Bancorp. NA |
7,786 | 233,035 | ||||||
|
|
|||||||
230,387,429 | ||||||||
|
|
|||||||
Total
Common Stocks — 98.5% |
|
419,243,135 | ||||||
|
|
|||||||
Preferred Stocks |
||||||||
Brazil — 0.6% | ||||||||
Banco Bradesco SA, Preference Shares, ADR |
276,663 | 724,857 |
Security | Shares | Value | ||||||
Brazil (continued) | ||||||||
Itau Unibanco Holding SA, Preference Shares, ADR |
252,011 | $ | 1,227,294 | |||||
Itausa SA, Preference Shares, NVS |
268,223 | 435,003 | ||||||
|
|
|||||||
2,387,154 | ||||||||
|
|
|||||||
Total
Preferred Stocks — 0.6% |
|
2,387,154 | ||||||
|
|
|||||||
Total
Long-Term Investments — 99.1% |
|
421,630,289 | ||||||
|
|
|||||||
Short-Term Securities |
||||||||
Money Market Funds — 0.3% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 5.01%(d)(e)(f) |
778,071 | 778,304 | ||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 4.73%(d)(e) |
590,000 | 590,000 | ||||||
|
|
|||||||
Total
Short-Term Securities — 0.3% |
|
1,368,304 | ||||||
|
|
|||||||
Total
Investments — 99.4% |
|
422,998,593 | ||||||
Other Assets Less Liabilities — 0.6% |
2,376,136 | |||||||
|
|
|||||||
Net Assets — 100.0% |
$ | 425,374,729 | ||||||
|
|
(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 from Underlying Funds |
|||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares |
$ | 20,641 | $ | 755,962 | (a) | $ | — | $ | 1,774 | $ | (73 | ) | $ | 778,304 | 778,071 | $ | 7,305 | (b) | $ | — | ||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares |
2,000,000 | — | (1,410,000 | )(a) | — | — | 590,000 | 590,000 | 30,486 | 1 | ||||||||||||||||||||||||||
BlackRock Inc. |
15,373,572 | 2,142,349 | (10,475,534 | ) | (2,549,218 | ) | 703,879 | 5,195,048 | 7,764 | 266,059 | — | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
$ | (2,547,444 | ) | $ | 703,806 | $ | 6,563,352 | $ | 303,850 | $ | 1 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(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. |
42 |
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 Financials ETF |
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
|
||||||||||||||||
Description |
Number of Contracts |
Expiration Date |
Notional Amount (000) |
Value/ Unrealized Appreciation (Depreciation) |
||||||||||||
|
||||||||||||||||
Long Contracts |
||||||||||||||||
E-Mini Financial Select Sector Index |
26 | 06/16/23 | $ | 2,595 | $ | 1,929 | ||||||||||
Euro STOXX 50 Index |
12 | 06/16/23 | 556 | 22,841 | ||||||||||||
FTSE 100 Index |
5 | 06/16/23 | 472 | 976 | ||||||||||||
|
|
|||||||||||||||
$ | 25,746 | |||||||||||||||
|
|
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) |
$ | — | $ | — | $ | 25,746 | $ | — | $ | — | $ | — | $ | 25,746 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 |
$ | — | $ | — | $ | (702,503 | ) | $ | — | $ | — | $ | — | $ | (702,503 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on |
||||||||||||||||||||||||||||
Futures contracts |
$ | — | $ | — | $ | 100,971 | $ | — | $ | — | $ | — | $ | 100,971 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
|
||||
Futures contracts |
||||
Average notional value of contracts — long |
$ | 3,711,556 | ||
|
||||
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 |
$ | 264,720,649 | $ | 154,522,486 | $ | — | $ | 419,243,135 | ||||||||
Preferred Stocks |
2,387,154 | — | — | 2,387,154 | ||||||||||||
Short-Term Securities |
||||||||||||||||
Money Market Funds |
1,368,304 | — | — | 1,368,304 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 268,476,107 | $ | 154,522,486 | $ | — | $ | 422,998,593 | |||||||||
|
|
|
|
|
|
|
|
S C H E D U L E O F I N V E S T M E N T S |
43 |
Schedule of Investments (continued) March 31, 2023 |
iShares® Global Financials ETF |
Fair Value Hierarchy as of Period End (continued)
|
||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
|
||||||||||||||||
Derivative Financial Instruments(a) |
||||||||||||||||
Assets |
||||||||||||||||
Equity Contracts |
$ | 1,929 | $ | 23,817 | $ | — | $ | 25,746 | ||||||||
|
|
|
|
|
|
|
|
(a) |
Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument. |
See notes to financial statements.
44 |
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 Healthcare ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
||||||||
Australia — 1.8% |
||||||||
Cochlear Ltd. |
38,390 | $ | 6,111,701 | |||||
CSL Ltd. |
284,298 | 55,060,110 | ||||||
Ramsay Health Care Ltd. |
109,989 | 4,914,654 | ||||||
Sonic Healthcare Ltd. |
281,874 | 6,607,958 | ||||||
|
|
|||||||
72,694,423 | ||||||||
Belgium — 0.5% | ||||||||
Argenx SE(a) |
32,744 | 12,159,661 | ||||||
UCB SA |
74,566 | 6,664,421 | ||||||
|
|
|||||||
18,824,082 | ||||||||
Brazil — 0.1% | ||||||||
Rede D’Or Sao Luiz SA(b) |
522,600 | 2,190,023 | ||||||
|
|
|||||||
China — 0.3% | ||||||||
Wuxi Biologics Cayman Inc.(a)(b) |
2,098,500 | 12,930,869 | ||||||
|
|
|||||||
Denmark — 4.3% | ||||||||
Coloplast A/S, Class B |
69,898 | 9,203,277 | ||||||
Genmab A/S(a) |
38,928 | 14,714,989 | ||||||
Novo Nordisk A/S, Class B |
965,142 | 153,285,067 | ||||||
|
|
|||||||
177,203,333 | ||||||||
France — 2.8% | ||||||||
EssilorLuxottica SA |
179,142 | 32,303,381 | ||||||
Eurofins Scientific SE(c) |
76,045 | 5,091,948 | ||||||
Sanofi |
676,917 | 73,431,087 | ||||||
Sartorius Stedim Biotech |
14,138 | 4,337,469 | ||||||
|
|
|||||||
115,163,885 | ||||||||
Germany —1.9% | ||||||||
Bayer AG, Registered |
578,224 | 36,937,876 | ||||||
Fresenius Medical Care AG & Co. KGaA |
116,354 | 4,938,556 | ||||||
Fresenius SE & Co. KGaA |
241,455 | 6,520,066 | ||||||
Merck KGaA |
76,428 | 14,248,838 | ||||||
QIAGEN NV(a) |
136,593 | 6,221,330 | ||||||
Siemens Healthineers AG(b) |
166,099 | 9,575,937 | ||||||
|
|
|||||||
78,442,603 | ||||||||
Japan — 4.7% | ||||||||
Astellas Pharma Inc. |
1,079,775 | 15,340,703 | ||||||
Chugai Pharmaceutical Co. Ltd. |
377,900 | 9,331,336 | ||||||
Daiichi Sankyo Co. Ltd. |
1,149,000 | 41,912,803 | ||||||
Eisai Co. Ltd. |
175,000 | 9,939,928 | ||||||
Hoya Corp. |
210,700 | 23,284,928 | ||||||
M3 Inc. |
250,600 | 6,307,363 | ||||||
Olympus Corp. |
757,500 | 13,303,782 | ||||||
Ono Pharmaceutical Co. Ltd. |
277,900 | 5,790,929 | ||||||
Otsuka Holdings Co. Ltd. |
328,800 | 10,439,272 | ||||||
Shionogi & Co. Ltd. |
165,600 | 7,469,470 | ||||||
Sysmex Corp. |
99,400 | 6,523,775 | ||||||
Takeda Pharmaceutical Co. Ltd. |
932,692 | 30,632,907 | ||||||
Terumo Corp. |
445,700 | 12,054,094 | ||||||
|
|
|||||||
192,331,290 | ||||||||
Netherlands — 0.2% | ||||||||
Koninklijke Philips NV |
521,819 | 9,584,185 | ||||||
|
|
|||||||
South Korea — 0.2% | ||||||||
Celltrion Inc. |
63,268 | 7,313,032 | ||||||
|
|
|||||||
Spain — 0.0% | ||||||||
Grifols SA(a) |
171,451 | 1,697,065 | ||||||
|
|
Security | Shares | Value | ||||||
Sweden — 0.1% | ||||||||
Getinge AB, Class B |
130,414 | $ | 3,180,574 | |||||
|
|
|||||||
Switzerland — 7.8% | ||||||||
Alcon Inc. |
295,203 | 20,955,719 | ||||||
Lonza Group AG, Registered |
43,877 | 26,413,928 | ||||||
Novartis AG, Registered |
1,416,307 | 130,043,210 | ||||||
Roche Holding AG, Bearer |
15,708 | 4,720,108 | ||||||
Roche Holding AG,NVS |
413,965 | 118,287,377 | ||||||
Sonova Holding AG, Registered |
30,258 | 8,925,763 | ||||||
Straumann Holding AG |
68,541 | 10,280,091 | ||||||
|
|
|||||||
319,626,196 | ||||||||
United Kingdom — 4.3% | ||||||||
AstraZeneca PLC |
912,982 | 126,497,554 | ||||||
GSK PLC |
2,358,291 | 41,669,381 | ||||||
Smith & Nephew PLC |
519,270 | 7,218,127 | ||||||
|
|
|||||||
175,385,062 | ||||||||
United States — 70.4% | ||||||||
Abbott Laboratories |
1,027,338 | 104,028,246 | ||||||
AbbVie Inc. |
1,042,014 | 166,065,771 | ||||||
Agilent Technologies Inc. |
174,116 | 24,087,207 | ||||||
Align Technology Inc.(a) |
42,634 | 14,245,725 | ||||||
AmerisourceBergen Corp. |
94,973 | 15,206,127 | ||||||
Amgen Inc. |
314,245 | 75,968,729 | ||||||
Baxter International Inc. |
297,365 | 12,061,124 | ||||||
Becton Dickinson and Co. |
167,246 | 41,400,075 | ||||||
Biogen Inc.(a) |
84,687 | 23,545,527 | ||||||
Bio-Rad Laboratories Inc., Class A(a) |
12,689 | 6,078,285 | ||||||
Bio-Techne Corp. |
91,924 | 6,819,842 | ||||||
Boston Scientific Corp.(a) |
843,936 | 42,222,118 | ||||||
Bristol-Myers Squibb Co. |
1,252,765 | 86,829,142 | ||||||
Cardinal Health Inc. |
154,131 | 11,636,890 | ||||||
Catalent Inc.(a) |
105,682 | 6,944,364 | ||||||
Centene Corp.(a) |
324,113 | 20,487,183 | ||||||
Charles River Laboratories International Inc.(a) |
29,994 | 6,053,389 | ||||||
Cigna Corp. |
175,771 | 44,914,764 | ||||||
Cooper Companies Inc. (The) |
29,053 | 10,847,228 | ||||||
CVS Health Corp. |
755,692 | 56,155,472 | ||||||
Danaher Corp. |
386,215 | 97,341,629 | ||||||
DaVita Inc.(a)(c) |
32,534 | 2,638,833 | ||||||
DENTSPLY SIRONA Inc. |
127,124 | 4,993,431 | ||||||
Dexcom Inc.(a)(c) |
227,402 | 26,419,564 | ||||||
Edwards Lifesciences Corp.(a) |
364,287 | 30,137,463 | ||||||
Elevance Health Inc. |
140,726 | 64,707,222 | ||||||
Eli Lilly & Co. |
464,686 | 159,582,466 | ||||||
GE Healthcare Inc., NVS(a) |
214,167 | 17,568,119 | ||||||
Gilead Sciences Inc. |
736,099 | 61,074,134 | ||||||
HCA Healthcare Inc. |
124,273 | 32,768,305 | ||||||
Henry Schein Inc.(a) |
79,544 | 6,486,018 | ||||||
Hologic Inc.(a) |
146,159 | 11,795,031 | ||||||
Humana Inc. |
74,303 | 36,071,134 | ||||||
IDEXX Laboratories Inc.(a) |
48,813 | 24,410,405 | ||||||
Illumina Inc.(a)(c) |
92,753 | 21,569,710 | ||||||
Incyte Corp.(a) |
109,317 | 7,900,340 | ||||||
Insulet Corp.(a)(c) |
40,761 | 13,001,129 | ||||||
Intuitive Surgical Inc.(a) |
207,399 | 52,984,223 | ||||||
IQVIA Holdings Inc.(a) |
109,540 | 21,786,411 | ||||||
Johnson & Johnson |
1,540,490 | 238,775,950 | ||||||
Laboratory Corp. of America Holdings |
51,998 | 11,929,381 | ||||||
McKesson Corp. |
80,589 | 28,693,713 | ||||||
Medtronic PLC |
782,801 | 63,109,417 |
S C H E D U L E O F I N V E S T M E N T S |
45 |
Schedule of Investments (continued) March 31, 2023 |
iShares® Global Healthcare ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
United States (continued) | ||||||||
Merck & Co. Inc. |
1,493,894 | $ | 158,935,383 | |||||
Mettler-Toledo International Inc.(a) |
13,062 | 19,987,603 | ||||||
Moderna Inc.(a) |
194,302 | 29,840,901 | ||||||
Molina Healthcare Inc.(a)(c) |
34,221 | 9,153,775 | ||||||
Organon & Co. |
150,036 | 3,528,847 | ||||||
PerkinElmer Inc. |
74,353 | 9,908,281 | ||||||
Pfizer Inc. |
3,307,437 | 134,943,430 | ||||||
Quest Diagnostics Inc. |
66,978 | 9,476,047 | ||||||
Regeneron Pharmaceuticals Inc.(a) |
63,270 | 51,987,061 | ||||||
ResMed Inc. |
86,593 | 18,963,001 | ||||||
STERIS PLC |
58,322 | 11,155,832 | ||||||
Stryker Corp. |
198,419 | 56,642,672 | ||||||
Teleflex Inc. |
27,686 | 7,013,141 | ||||||
Thermo Fisher Scientific Inc. |
231,087 | 133,191,614 | ||||||
UnitedHealth Group Inc. |
550,533 | 260,176,390 | ||||||
Universal Health Services Inc., Class B |
37,655 | 4,785,950 | ||||||
Vertex Pharmaceuticals Inc.(a) |
151,299 | 47,669,776 | ||||||
Viatris Inc. |
715,494 | 6,883,052 | ||||||
Waters Corp.(a)(c) |
34,955 | 10,823,117 | ||||||
West Pharmaceutical Services Inc. |
43,574 | 15,097,084 | ||||||
Zimmer Biomet Holdings Inc. |
123,420 | 15,945,864 | ||||||
Zoetis Inc. |
274,619 | 45,707,586 | ||||||
|
|
|||||||
2,873,157,643 | ||||||||
|
|
|||||||
Total
Common Stocks — 99.4% |
|
4,059,724,265 | ||||||
|
|
|||||||
Preferred Stocks |
||||||||
Germany —0.2% | ||||||||
Sartorius AG, Preference Shares, NVS |
15,750 | 6,637,936 | ||||||
|
|
|||||||
Total
Preferred Stocks — 0.2% |
|
6,637,936 | ||||||
|
|
|||||||
Total
Long-Term Investments — 99.6% |
|
4,066,362,201 | ||||||
|
|
Security | Shares | Value | ||||||
|
||||||||
Short-Term Securities |
||||||||
Money Market Funds — 0.8% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 5.01%(d)(e)(f) |
28,977,756 | $ | 28,986,449 | |||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 4.73%(d)(e) |
5,900,000 | 5,900,000 | ||||||
|
|
|||||||
Total
Short-Term Securities — 0.8% |
|
34,886,449 | ||||||
|
|
|||||||
Total
Investments — 100.4% |
|
4,101,248,650 | ||||||
Liabilities in Excess of Other Assets — (0.4)% |
|
(17,992,773 | ) | |||||
|
|
|||||||
Net Assets — 100.0% |
$ | 4,083,255,877 | ||||||
|
|
(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 |
$ | 6,065,148 | $ | 22,912,502 | (a) | $ | — | $ | 4,655 | $ | 4,144 | $ | 28,986,449 | 28,977,756 | $ | 48,440 | (b) | $ | — | |||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares |
4,860,000 | 1,040,000 | (a) | — | — | — | 5,900,000 | 5,900,000 | 129,215 | 4 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
$ | 4,655 | $ | 4,144 | $ | 34,886,449 | $ | 177,655 | $ | 4 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(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. |
46 |
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 Healthcare ETF |
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
|
||||||||||||||||
Description |
Number of Contracts |
Expiration Date |
Notional Amount (000) |
Value/ Unrealized Appreciation (Depreciation) |
||||||||||||
|
||||||||||||||||
Long Contracts |
||||||||||||||||
E-Mini Health Care Sector Index |
124 | 06/16/23 | $ | 16,357 | $ | 481,447 | ||||||||||
|
|
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) |
$ | — | $ | — | $ | 481,447 | $ | — | $ | — | $ | — | $ | 481,447 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 |
$ | — | $ | — | $ | (1,915,886 | ) | $ | — | $ | — | $ | — | $ | (1,915,886 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on |
||||||||||||||||||||||||||||
Futures contracts |
$ | — | $ | — | $ | (34,093 | ) | $ | — | $ | — | $ | — | $ | (34,093 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
|
||||
Futures contracts |
||||
Average notional value of contracts — long |
$ | 12,829,375 | ||
|
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.
|
||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
|
||||||||||||||||
Assets |
||||||||||||||||
Investments |
||||||||||||||||
Long-Term Investments |
||||||||||||||||
Common Stocks |
$ | 2,875,347,666 | $ | 1,184,376,599 | $ | — | $ | 4,059,724,265 | ||||||||
Preferred Stocks |
— | 6,637,936 | — | 6,637,936 | ||||||||||||
Short-Term Securities |
||||||||||||||||
Money Market Funds |
34,886,449 | — | — | 34,886,449 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 2,910,234,115 | $ | 1,191,014,535 | $ | — | $ | 4,101,248,650 | |||||||||
|
|
|
|
|
|
|
|
S C H E D U L E O F I N V E S T M E N T S |
47 |
Schedule of Investments (continued) March 31, 2023 |
iShares® Global Healthcare ETF |
Fair Value Hierarchy as of Period End (continued)
|
||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
|
||||||||||||||||
Derivative Financial Instruments(a) |
||||||||||||||||
Assets |
||||||||||||||||
Equity Contracts |
$ | 481,447 | $ | — | $ | — | $ | 481,447 | ||||||||
|
|
|
|
|
|
|
|
(a) |
Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument. |
See notes to financial statements.
48 |
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 Industrials ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
| |||||||
Australia — 1.0% |
| |||||||
Brambles Ltd. |
83,494 | $ | 752,803 | |||||
Computershare Ltd. |
34,483 | 500,872 | ||||||
Qantas Airways Ltd.(a) |
109,231 | 487,547 | ||||||
Transurban Group |
184,875 | 1,765,257 | ||||||
|
|
|||||||
3,506,479 | ||||||||
Brazil — 0.4% | ||||||||
CCR SA |
66,848 | 168,820 | ||||||
Localiza Rent a Car SA |
46,178 | 486,520 | ||||||
WEG SA |
88,323 | 706,626 | ||||||
|
|
|||||||
1,361,966 | ||||||||
Canada — 3.7% | ||||||||
CAE Inc.(a) |
19,111 | 432,136 | ||||||
Canadian National Railway Co. |
36,507 | 4,307,637 | ||||||
Canadian Pacific Railway Ltd. |
55,921 | 4,306,103 | ||||||
Thomson Reuters Corp. |
9,515 | 1,237,971 | ||||||
Waste Connections Inc. |
15,463 | 2,152,120 | ||||||
|
|
|||||||
12,435,967 | ||||||||
Denmark — 1.4% | ||||||||
AP Moller - Maersk A/S, Class A |
182 | 322,876 | ||||||
AP Moller - Maersk A/S, Class B, NVS |
333 | 605,297 | ||||||
DSV A/S |
10,797 | 2,093,510 | ||||||
Vestas Wind Systems A/S |
60,714 | 1,769,474 | ||||||
|
|
|||||||
4,791,157 | ||||||||
Finland — 0.6% | ||||||||
Kone OYJ, Class B |
24,249 | 1,264,683 | ||||||
Metso Outotec OYJ |
42,067 | 459,345 | ||||||
Wartsila OYJ Abp |
29,007 | 273,747 | ||||||
|
|
|||||||
1,997,775 | ||||||||
France — 7.4% | ||||||||
Airbus SE |
36,963 | 4,937,054 | ||||||
Alstom SA |
18,548 | 504,993 | ||||||
Bouygues SA |
12,385 | 417,697 | ||||||
Bureau Veritas SA |
17,405 | 500,089 | ||||||
Cie. de Saint-Gobain |
31,009 | 1,762,662 | ||||||
Eiffage SA |
4,662 | 504,503 | ||||||
Getlink SE |
24,139 | 397,560 | ||||||
Legrand SA |
16,043 | 1,465,886 | ||||||
Safran SA |
21,063 | 3,118,095 | ||||||
Schneider Electric SE |
34,336 | 5,738,362 | ||||||
Teleperformance |
3,555 | 859,009 | ||||||
Thales SA |
6,417 | 948,732 | ||||||
Vinci SA |
31,892 | 3,656,173 | ||||||
|
|
|||||||
24,810,815 | ||||||||
Germany —4.3% | ||||||||
Brenntag SE |
9,289 | 699,055 | ||||||
Daimler Truck Holding AG(a) |
31,171 | 1,051,990 | ||||||
Deutsche Post AG, Registered |
59,594 | 2,791,123 | ||||||
GEA Group AG |
9,998 | 456,084 | ||||||
MTU Aero Engines AG |
3,215 | 804,521 | ||||||
Rheinmetall AG |
2,620 | 776,175 | ||||||
Siemens AG, Registered |
44,971 | 7,285,477 | ||||||
Siemens Energy AG(a) |
24,028 | 529,853 | ||||||
|
|
|||||||
14,394,278 | ||||||||
Hong Kong — 0.6% | ||||||||
CK Hutchison Holdings Ltd. |
161,520 | 999,268 |
Security | Shares | Value | ||||||
Hong Kong (continued) |
||||||||
Techtronic Industries Co. Ltd. |
111,500 | $ | 1,208,114 | |||||
|
|
|||||||
2,207,382 | ||||||||
Ireland — 0.4% | ||||||||
Kingspan Group PLC |
9,281 | 635,983 | ||||||
Ryanair Holdings PLC, ADR(a)(b) |
6,057 | 571,115 | ||||||
|
|
|||||||
1,207,098 | ||||||||
Italy — 0.5% | ||||||||
CNH Industrial NV |
59,883 | 916,280 | ||||||
Prysmian SpA |
16,121 | 676,932 | ||||||
|
|
|||||||
1,593,212 | ||||||||
Japan — 13.8% | ||||||||
AGC Inc. |
13,700 | 510,749 | ||||||
ANA Holdings Inc.(a) |
29,500 | 641,180 | ||||||
Central Japan Railway Co. |
12,400 | 1,479,563 | ||||||
Dai Nippon Printing Co. Ltd. |
16,400 | 459,175 | ||||||
Daifuku Co. Ltd. |
23,400 | 434,472 | ||||||
Daikin Industries Ltd. |
17,700 | 3,175,496 | ||||||
East Japan Railway Co. |
22,900 | 1,267,322 | ||||||
FANUC Corp. |
58,500 | 2,112,563 | ||||||
Hankyu Hanshin Holdings Inc. |
14,600 | 432,919 | ||||||
Hitachi Ltd. |
56,500 | 3,105,279 | ||||||
ITOCHU Corp. |
88,600 | 2,885,387 | ||||||
Japan Airlines Co. Ltd. |
26,400 | 514,750 | ||||||
Kajima Corp. |
28,700 | 346,335 | ||||||
Kintetsu Group Holdings Co. Ltd. |
11,500 | 370,460 | ||||||
Komatsu Ltd. |
58,700 | 1,457,235 | ||||||
Kubota Corp. |
68,100 | 1,032,486 | ||||||
Makita Corp. |
16,900 | 420,892 | ||||||
Marubeni Corp. |
103,400 | 1,406,210 | ||||||
Mitsubishi Corp. |
88,600 | 3,183,970 | ||||||
Mitsubishi Electric Corp. |
129,300 | 1,545,152 | ||||||
Mitsubishi Heavy Industries Ltd. |
20,400 | 751,556 | ||||||
Mitsui & Co. Ltd. |
95,800 | 2,986,071 | ||||||
Nidec Corp. |
32,000 | 1,665,311 | ||||||
Nippon Yusen KK |
30,700 | 717,101 | ||||||
Obayashi Corp. |
43,900 | 335,942 | ||||||
Odakyu Electric Railway Co. Ltd. |
20,800 | 270,614 | ||||||
Recruit Holdings Co. Ltd. |
102,000 | 2,805,921 | ||||||
Secom Co. Ltd. |
12,900 | 794,997 | ||||||
SG Holdings Co. Ltd. |
29,500 | 437,431 | ||||||
SMC Corp. |
3,800 | 2,014,442 | ||||||
Sumitomo Corp. |
75,400 | 1,335,737 | ||||||
Taisei Corp. |
12,100 | 374,360 | ||||||
Tokyu Corp. |
37,600 | 500,536 | ||||||
Toppan Inc. |
21,100 | 425,214 | ||||||
Toshiba Corp. |
26,100 | 876,427 | ||||||
TOTO Ltd. |
9,600 | 321,636 | ||||||
Toyota Industries Corp. |
12,300 | 685,246 | ||||||
Toyota Tsusho Corp. |
14,300 | 609,713 | ||||||
West Japan Railway Co. |
14,800 | 609,635 | ||||||
Yamato Holdings Co. Ltd. |
20,200 | 346,739 | ||||||
Yaskawa Electric Corp. |
16,100 | 706,145 | ||||||
|
|
|||||||
46,352,369 | ||||||||
Netherlands — 0.9% | ||||||||
IMCD NV |
3,455 | 564,947 | ||||||
Randstad NV |
7,511 | 445,888 | ||||||
Wolters Kluwer NV |
15,483 | 1,954,519 | ||||||
|
|
|||||||
2,965,354 |
S C H E D U L E O F I N V E S T M E N T S |
49 |
Schedule of Investments (continued) March 31, 2023 |
iShares® Global Industrials ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
South Korea — 0.3% |
||||||||
LG Energy Solution(a) |
2,575 | $ | 1,160,173 | |||||
|
|
|||||||
Spain — 0.6% |
||||||||
ACS Actividades de Construccion y Servicios SA |
13,327 | 424,461 | ||||||
Aena SME SA(a)(c) |
4,421 | 714,912 | ||||||
Ferrovial SA |
29,739 | 875,736 | ||||||
|
|
|||||||
2,015,109 | ||||||||
Sweden — 3.4% | ||||||||
Alfa Laval AB |
17,843 | 637,122 | ||||||
Assa Abloy AB, Class B |
59,626 | 1,428,190 | ||||||
Atlas Copco AB, Class A |
153,414 | 1,943,501 | ||||||
Atlas Copco AB, Class B |
93,842 | 1,079,440 | ||||||
Epiroc AB, Class A |
37,641 | 747,174 | ||||||
Epiroc AB, Class B |
23,812 | 406,005 | ||||||
Nibe Industrier AB, Class B |
92,185 | 1,050,828 | ||||||
Sandvik AB |
65,611 | 1,392,645 | ||||||
Skanska AB, Class B |
24,274 | 371,797 | ||||||
SKF AB, Class B |
22,537 | 443,909 | ||||||
Volvo AB, Class B |
95,501 | 1,967,955 | ||||||
|
|
|||||||
11,468,566 | ||||||||
Switzerland — 2.5% | ||||||||
ABB Ltd., Registered |
102,767 | 3,535,339 | ||||||
Adecco Group AG, Registered |
10,127 | 368,876 | ||||||
Geberit AG, Registered |
2,158 | 1,205,129 | ||||||
Kuehne + Nagel International AG, Registered |
3,414 | 1,016,809 | ||||||
Schindler Holding AG, Participation Certificates, NVS |
2,449 | 542,644 | ||||||
Schindler Holding AG, Registered |
1,251 | 264,735 | ||||||
SGS SA, Registered |
365 | 805,098 | ||||||
VAT Group AG(c) |
1,615 | 583,473 | ||||||
|
|
|||||||
8,322,103 | ||||||||
United Kingdom — 4.6% | ||||||||
Ashtead Group PLC |
27,014 | 1,658,791 | ||||||
BAE Systems PLC |
183,672 | 2,221,719 | ||||||
Bunzl PLC |
20,302 | 766,859 | ||||||
DCC PLC |
6,013 | 350,505 | ||||||
Experian PLC |
58,290 | 1,919,356 | ||||||
IMI PLC |
16,988 | 321,562 | ||||||
Intertek Group PLC |
9,636 | 482,616 | ||||||
Melrose Industries PLC |
246,957 | 508,621 | ||||||
RELX PLC |
119,184 | 3,860,000 | ||||||
Rentokil Initial PLC |
151,508 | 1,107,302 | ||||||
Rolls-Royce Holdings PLC(a) |
503,069 | 926,583 | ||||||
Smiths Group PLC |
21,226 | 450,177 | ||||||
Spirax-Sarco Engineering PLC |
4,388 | 644,258 | ||||||
Weir Group PLC (The) |
15,442 | 354,262 | ||||||
|
|
|||||||
15,572,611 | ||||||||
United States — 53.1% | ||||||||
3M Co. |
33,098 | 3,478,931 | ||||||
AO Smith Corp. |
7,628 | 527,476 | ||||||
Alaska Air Group Inc.(a) |
7,714 | 323,679 | ||||||
Allegion PLC |
5,282 | 563,748 | ||||||
American Airlines Group Inc.(a) |
38,656 | 570,176 | ||||||
AMETEK Inc. |
13,807 | 2,006,571 | ||||||
Automatic Data Processing Inc. |
24,912 | 5,546,159 | ||||||
Boeing Co. (The)(a) |
33,809 | 7,182,046 | ||||||
Broadridge Financial Solutions Inc. |
7,078 | 1,037,422 | ||||||
Carrier Global Corp. |
50,152 | 2,294,454 | ||||||
Caterpillar Inc. |
31,288 | 7,159,946 | ||||||
CH Robinson Worldwide Inc. |
7,079 | 703,440 |
Security | Shares | Value | ||||||
United States (continued) |
| |||||||
Cintas Corp. |
5,193 | $ | 2,402,697 | |||||
Copart Inc.(a) |
25,774 | 1,938,463 | ||||||
CoStar Group Inc.(a) |
24,451 | 1,683,451 | ||||||
CSX Corp. |
126,399 | 3,784,386 | ||||||
Cummins Inc. |
8,496 | 2,029,524 | ||||||
Deere & Co. |
16,258 | 6,712,603 | ||||||
Delta Air Lines Inc.(a) |
38,552 | 1,346,236 | ||||||
Dover Corp. |
8,400 | 1,276,296 | ||||||
Eaton Corp. PLC |
23,910 | 4,096,739 | ||||||
Emerson Electric Co. |
34,353 | 2,993,520 | ||||||
Equifax Inc. |
7,366 | 1,494,119 | ||||||
Expeditors International of Washington Inc. |
9,568 | 1,053,628 | ||||||
Fastenal Co. |
34,320 | 1,851,221 | ||||||
FedEx Corp. |
13,962 | 3,190,177 | ||||||
Fortive Corp. |
21,218 | 1,446,431 | ||||||
Generac Holdings Inc.(a) |
3,865 | 417,459 | ||||||
General Dynamics Corp. |
13,530 | 3,087,681 | ||||||
General Electric Co. |
65,490 | 6,260,844 | ||||||
Honeywell International Inc. |
40,171 | 7,677,482 | ||||||
Howmet Aerospace Inc. |
22,137 | 937,945 | ||||||
Huntington Ingalls Industries Inc. |
2,427 | 502,438 | ||||||
IDEX Corp. |
4,536 | 1,047,952 | ||||||
Illinois Tool Works Inc. |
16,692 | 4,063,667 | ||||||
Ingersoll Rand Inc.(b) |
24,346 | 1,416,450 | ||||||
Jacobs Solutions Inc., NVS |
7,618 | 895,191 | ||||||
JB Hunt Transport Services Inc. |
4,991 | 875,721 | ||||||
Johnson Controls International PLC |
41,317 | 2,488,110 | ||||||
L3Harris Technologies Inc. |
11,447 | 2,246,359 | ||||||
Leidos Holdings Inc. |
8,218 | 756,549 | ||||||
Lockheed Martin Corp. |
13,661 | 6,457,965 | ||||||
Masco Corp. |
13,540 | 673,209 | ||||||
Nordson Corp. |
3,233 | 718,567 | ||||||
Norfolk Southern Corp. |
13,695 | 2,903,340 | ||||||
Northrop Grumman Corp. |
8,651 | 3,994,340 | ||||||
Old Dominion Freight Line Inc.(b) |
5,447 | 1,856,555 | ||||||
Otis Worldwide Corp. |
24,944 | 2,105,274 | ||||||
PACCAR Inc. |
31,385 | 2,297,382 | ||||||
Parker-Hannifin Corp. |
7,713 | 2,592,416 | ||||||
Paychex Inc. |
19,289 | 2,210,326 | ||||||
Pentair PLC |
9,891 | 546,676 | ||||||
Quanta Services Inc. |
8,593 | 1,431,938 | ||||||
Raytheon Technologies Corp. |
88,075 | 8,625,185 | ||||||
Republic Services Inc. |
12,349 | 1,669,832 | ||||||
Robert Half International Inc. |
6,463 | 520,724 | ||||||
Rockwell Automation Inc. |
6,903 | 2,025,685 | ||||||
Rollins Inc. |
13,870 | 520,541 | ||||||
Snap-on Inc. |
3,193 | 788,320 | ||||||
Southwest Airlines Co. |
35,730 | 1,162,654 | ||||||
Stanley Black & Decker Inc. |
8,896 | 716,840 | ||||||
Textron Inc. |
12,553 | 886,618 | ||||||
Trane Technologies PLC |
13,773 | 2,533,957 | ||||||
TransDigm Group Inc. |
3,120 | 2,299,596 | ||||||
Union Pacific Corp. |
36,787 | 7,403,752 | ||||||
United Airlines Holdings Inc.(a) |
19,655 | 869,734 | ||||||
United Parcel Service Inc., Class B |
43,879 | 8,512,087 | ||||||
United Rentals Inc . |
4,171 | 1,650,715 | ||||||
Verisk Analytics Inc. |
9,403 | 1,804,060 | ||||||
Waste Management Inc. |
22,331 | 3,643,749 | ||||||
Westinghouse Air Brake Technologies Corp. |
10,935 | 1,105,091 | ||||||
WW Grainger Inc. |
2,705 | 1,863,231 |
50 |
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 Industrials ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
United States (continued) |
| |||||||
Xylem Inc./NY |
10,838 | $ | 1,134,739 | |||||
|
|
|||||||
178,892,485 | ||||||||
|
|
|||||||
Total
Common Stocks — 99.5% |
|
335,054,899 | ||||||
|
|
|||||||
Rights |
||||||||
Brazil — 0.0% |
||||||||
Localiza
Rent a Car SA, Rights, |
206 | 534 | ||||||
|
|
|||||||
Total
Rights — 0.0% |
|
534 | ||||||
|
|
|||||||
Total
Long-Term Investments — 99.5% |
|
335,055,433 | ||||||
|
|
|||||||
Short-Term Securities |
||||||||
Money Market Funds — 1.2% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 5.01%(d)(e)(f) |
3,817,891 | 3,819,037 |
Security | Shares | Value | ||||||
|
||||||||
Money Market Funds (continued) | ||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 4.73%(d)(e) |
310,000 | $ | 310,000 | |||||
|
|
|||||||
Total
Short-Term Securities — 1.2% |
|
4,129,037 | ||||||
|
|
|||||||
Total
Investments — 100.7% |
|
339,184,470 | ||||||
Liabilities in Excess of Other Assets — (0.7)% |
|
(2,226,290 | ) | |||||
|
|
|||||||
Net Assets — 100.0% |
|
$ | 336,958,180 | |||||
|
|
(a) |
Non-income producing security. |
(b) |
All or a portion of this security is on loan. |
(c) |
Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
(d) |
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 |
Income |
Capital Gain Distributions from Underlying Funds |
|||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares |
$ | 2,815,249 | $ | 999,776 | (a) | $ | — | $ | 5,125 | $ | (1,113 | ) | $ | 3,819,037 | 3,817,891 | $ | 13,687 | (b) | $ | — | ||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares |
310,000 | 0 | (a) | — | — | — | 310,000 | 310,000 | 14,424 | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
$ | 5,125 | $ | (1,113 | ) | $ | 4,129,037 | $ | 28,111 | $ | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(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 | $ | 5,457 | ||||||||||
Euro STOXX 50 Index |
11 | 06/16/23 | 509 | 14,395 | ||||||||||||
XAI Industrial Index |
11 | 06/16/23 | 1,131 | 20,662 | ||||||||||||
|
|
|||||||||||||||
$ | 40,514 | |||||||||||||||
|
|
S C H E D U L E O F I N V E S T M E N T S |
51 |
Schedule of Investments (continued) March 31, 2023 |
iShares® Global Industrials 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) |
$ | — | $ | — | $ | 40,514 | $ | — | $ | — | $ | — | $ | 40,514 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 |
$ | — | $ | — | $ | (30,818 | ) | $ | — | $ | — | $ | — | $ | (30,818 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on |
||||||||||||||||||||||||||||
Futures contracts |
$ | — | $ | — | $ | 19,090 | $ | — | $ | — | $ | — | $ | 19,090 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
|
||||
Futures contracts |
||||
Average notional value of contracts — long |
$ | 1,464,863 | ||
|
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 |
$ | 193,261,533 | $ | 141,793,366 | $ | — | $ | 335,054,899 | ||||||||
Rights |
534 | — | — | 534 | ||||||||||||
Short-Term Securities |
||||||||||||||||
Money Market Funds |
4,129,037 | — | — | 4,129,037 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 197,391,104 | $ | 141,793,366 | $ | — | $ | 339,184,470 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Derivative Financial Instruments(a) |
||||||||||||||||
Assets |
||||||||||||||||
Equity Contracts |
$ | 20,662 | $ | 19,852 | $ | — | $ | 40,514 | ||||||||
|
|
|
|
|
|
|
|
(a) |
Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument. |
See notes to financial statements.
52 |
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 Materials ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
||||||||
Australia — 11.9% | ||||||||
BHP Group Ltd. |
723,783 | $ | 22,881,624 | |||||
BlueScope Steel Ltd. |
66,484 | 899,885 | ||||||
Fortescue Metals Group Ltd. |
242,002 | 3,637,668 | ||||||
James Hardie Industries PLC |
63,738 | 1,371,881 | ||||||
Mineral Resources Ltd. |
23,949 | 1,294,609 | ||||||
Newcrest Mining Ltd. |
127,973 | 2,284,368 | ||||||
Northern Star Resources Ltd. |
165,011 | 1,353,116 | ||||||
OZ Minerals Ltd. |
48,100 | 905,854 | ||||||
Pilbara Minerals Ltd. |
372,978 | 992,271 | ||||||
Rio Tinto Ltd. |
53,014 | 4,259,662 | ||||||
South32 Ltd. |
650,772 | 1,907,236 | ||||||
|
|
|||||||
41,788,174 | ||||||||
Belgium — 0.6% | ||||||||
Solvay SA |
10,368 | 1,185,749 | ||||||
Umicore SA |
29,506 | 1,000,880 | ||||||
|
|
|||||||
2,186,629 | ||||||||
Brazil — 2.5% | ||||||||
Vale SA, ADR |
553,058 | 8,727,255 | ||||||
|
|
|||||||
Canada — 7.6% | ||||||||
Agnico Eagle Mines Ltd. |
65,107 | 3,319,180 | ||||||
Barrick Gold Corp. |
251,477 | 4,668,559 | ||||||
CCL Industries Inc., Class B, NVS |
20,822 | 1,034,398 | ||||||
First Quantum Minerals Ltd. |
79,833 | 1,835,302 | ||||||
Franco-Nevada Corp. |
27,313 | 3,983,878 | ||||||
Kinross Gold Corp. |
179,803 | 846,132 | ||||||
Nutrien Ltd. |
74,322 | 5,488,775 | ||||||
Teck Resources Ltd., Class B |
64,184 | 2,343,678 | ||||||
Wheaton Precious Metals Corp. |
64,609 | 3,111,654 | ||||||
|
|
|||||||
26,631,556 | ||||||||
Chile — 0.5% | ||||||||
Empresas CMPC SA |
158,815 | 265,407 | ||||||
Sociedad Quimica y Minera de Chile SA, ADR(a) |
20,329 | 1,647,869 | ||||||
|
|
|||||||
1,913,276 | ||||||||
Denmark — 0.8% | ||||||||
Chr Hansen Holding A/S |
14,734 | 1,120,821 | ||||||
Novozymes A/S, Class B |
29,925 | 1,532,254 | ||||||
|
|
|||||||
2,653,075 | ||||||||
Finland — 1.0% | ||||||||
Stora Enso OYJ, Class R |
86,633 | 1,127,085 | ||||||
UPM-Kymmene OYJ |
76,364 | 2,564,911 | ||||||
|
|
|||||||
3,691,996 | ||||||||
France — 4.5% | ||||||||
Air Liquide SA |
74,790 | 12,518,992 | ||||||
ArcelorMittal SA |
81,636 | 2,473,267 | ||||||
Arkema SA |
9,252 | 913,513 | ||||||
|
|
|||||||
15,905,772 | ||||||||
Germany —3.3% | ||||||||
BASF SE |
131,228 | 6,889,293 | ||||||
Covestro AG(b) |
27,648 | 1,144,995 | ||||||
HeidelbergCement AG |
20,639 | 1,507,001 | ||||||
Symrise AG |
19,027 | 2,070,592 | ||||||
|
|
|||||||
11,611,881 | ||||||||
Ireland — 1.9% | ||||||||
CRH PLC |
106,343 | 5,372,478 | ||||||
Smurfit Kappa Group PLC |
36,890 | 1,338,003 | ||||||
|
|
|||||||
6,710,481 |
Security | Shares | Value | ||||||
Japan — 6.5% | ||||||||
Asahi Kasei Corp. |
198,200 | $ | 1,388,215 | |||||
JFE Holdings Inc. |
82,200 | 1,043,318 | ||||||
Mitsubishi Chemical Group Corp. |
204,200 | 1,214,474 | ||||||
Nippon Paint Holdings Co. Ltd. |
153,300 | 1,441,494 | ||||||
Nippon Steel Corp. |
135,729 | 3,200,692 | ||||||
Nitto Denko Corp. |
21,300 | 1,378,563 | ||||||
Shin-Etsu Chemical Co. Ltd . |
289,200 | 9,387,728 | ||||||
Sumitomo Chemical Co. Ltd. |
235,800 | 793,933 | ||||||
Sumitomo Metal Mining Co. Ltd. |
38,900 | 1,488,466 | ||||||
Toray Industries Inc. |
234,200 | 1,339,794 | ||||||
|
|
|||||||
22,676,677 | ||||||||
Mexico — 0.9% | ||||||||
Cemex SAB de CV, NVS(c) |
2,164,170 | 1,187,771 | ||||||
Grupo Mexico SAB de CV, Series B |
445,382 | 2,109,015 | ||||||
|
|
|||||||
3,296,786 | ||||||||
Netherlands — 1.4% | ||||||||
Akzo Nobel NV |
24,849 | 1,943,555 | ||||||
Koninklijke DSM NV |
24,991 | 2,957,542 | ||||||
|
|
|||||||
4,901,097 | ||||||||
Norway —0.7% | ||||||||
Norsk Hydro ASA |
195,623 | 1,460,017 | ||||||
Yara International ASA |
23,223 | 1,009,285 | ||||||
|
|
|||||||
2,469,302 | ||||||||
Peru — 0.3% | ||||||||
Southern Copper Corp. |
12,051 | 918,889 | ||||||
|
|
|||||||
South Korea — 1.9% | ||||||||
LG Chem Ltd. |
6,756 | 3,710,352 | ||||||
POSCO Holdings Inc. |
10,508 | 2,972,935 | ||||||
|
|
|||||||
6,683,287 | ||||||||
Sweden — 0.8% | ||||||||
Boliden AB |
39,155 | 1,538,173 | ||||||
Svenska Cellulosa AB SCA, Class B |
85,699 | 1,128,701 | ||||||
|
|
|||||||
2,666,874 | ||||||||
Switzerland — 4.7% | ||||||||
Givaudan SA, Registered |
1,136 | 3,697,439 | ||||||
Holcim AG |
80,969 | 5,221,796 | ||||||
SIG Group AG(c) |
49,831 | 1,283,805 | ||||||
Sika AG, Registered |
21,978 | 6,164,728 | ||||||
|
|
|||||||
16,367,768 | ||||||||
Taiwan — 1.1% | ||||||||
Formosa Plastics Corp. |
620,720 | 1,873,957 | ||||||
Nan Ya Plastics Corp. |
801,940 | 2,042,792 | ||||||
|
|
|||||||
3,916,749 | ||||||||
United Kingdom — 9.0% | ||||||||
Anglo American PLC |
191,108 | 6,356,537 | ||||||
Antofagasta PLC |
48,957 | 958,943 | ||||||
Croda International PLC |
20,399 | 1,639,538 | ||||||
DS Smith PLC |
197,592 | 769,289 | ||||||
Glencore PLC |
1,730,091 | 9,955,316 | ||||||
Johnson Matthey PLC |
28,596 | 701,069 | ||||||
Mondi PLC |
69,447 | 1,102,610 | ||||||
Rio Tinto PLC |
151,580 | 10,288,931 | ||||||
|
|
|||||||
31,772,233 | ||||||||
United States — 36.9% | ||||||||
Air Products and Chemicals Inc. |
31,698 | 9,103,983 | ||||||
Albemarle Corp. |
16,755 | 3,703,525 | ||||||
Amcor PLC |
211,802 | 2,410,307 |
S C H E D U L E O F I N V E S T M E N T S |
53 |
Schedule of Investments (continued) March 31, 2023 |
iShares® Global Materials ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
United States (continued) | ||||||||
Avery Dennison Corp. |
11,555 | $ | 2,067,536 | |||||
Ball Corp. |
44,840 | 2,471,132 | ||||||
Celanese Corp. |
14,278 | 1,554,731 | ||||||
CF Industries Holdings Inc. |
28,096 | 2,036,679 | ||||||
Corteva Inc. |
101,924 | 6,147,036 | ||||||
Dow Inc. |
100,710 | 5,520,922 | ||||||
DuPont de Nemours Inc. |
65,479 | 4,699,428 | ||||||
Eastman Chemical Co. |
17,011 | 1,434,708 | ||||||
Ecolab Inc. |
35,396 | 5,859,100 | ||||||
FMC Corp. |
18,009 | 2,199,439 | ||||||
Freeport-McMoRan Inc. |
204,038 | 8,347,195 | ||||||
International Flavors & Fragrances Inc. |
36,486 | 3,355,253 | ||||||
International Paper Co. |
50,828 | 1,832,858 | ||||||
Linde PLC |
70,371 | 25,012,668 | ||||||
LyondellBasell Industries NV, Class A |
36,194 | 3,398,255 | ||||||
Martin Marietta Materials Inc. |
8,848 | 3,141,571 | ||||||
Mosaic Co. (The) |
48,680 | 2,233,438 | ||||||
Newmont Corp. |
113,406 | 5,559,162 | ||||||
Nucor Corp. |
36,148 | 5,583,782 | ||||||
Packaging Corp. of America |
13,216 | 1,834,777 | ||||||
PPG Industries Inc. |
33,599 | 4,488,154 | ||||||
Sealed Air Corp. |
20,590 | 945,287 | ||||||
Sherwin-Williams Co. (The) |
33,668 | 7,567,556 | ||||||
Steel Dynamics Inc. |
23,860 | 2,697,612 | ||||||
Vulcan Materials Co. |
19,021 | 3,263,243 | ||||||
Westrock Co. |
36,321 | 1,106,701 | ||||||
|
|
|||||||
129,576,038 | ||||||||
|
|
|||||||
Total
Common Stocks — 98.8% |
347,065,795 | |||||||
|
|
|||||||
Preferred Stocks |
||||||||
Brazil — 0.2% | ||||||||
Gerdau SA, Preference Shares, ADR |
155,629 | 767,249 | ||||||
|
|
Security | Shares | Value | ||||||
|
||||||||
South Korea — 0.1% | ||||||||
LG Chem Ltd., Preference Shares, NVS |
1,075 | $ | 257,575 | |||||
|
|
|||||||
Total
Preferred Stocks — 0.3% |
|
1,024,824 | ||||||
|
|
|||||||
Total
Long-Term Investments — 99.1% |
|
348,090,619 | ||||||
|
|
|||||||
Short-Term Securities |
||||||||
Money Market Funds — 0.6% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 5.01%(d)(e)(f) |
1,650,564 | 1,651,059 | ||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 4.73%(d)(e) |
530,000 | 530,000 | ||||||
|
|
|||||||
Total
Short-Term Securities — 0.6% |
2,181,059 | |||||||
|
|
|||||||
Total
Investments — 99.7% |
|
350,271,678 | ||||||
Other Assets Less Liabilities — 0.3% |
898,506 | |||||||
|
|
|||||||
Net Assets — 100.0% |
$ | 351,170,184 | ||||||
|
|
(a) |
All or a portion of this security is on loan. |
(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) |
Non-income producing security. |
(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 |
$ | — | $ | 1,649,780 | (a) | $ | — | $ | 1,739 | $ | (460 | ) | $ | 1,651,059 | 1,650,564 | $ | 3,946 | (b) | $ | — | ||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares |
2,490,000 | — | (1,960,000 | )(a) | — | — | 530,000 | 530,000 | 9,115 | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
$ | 1,739 | $ | (460 | ) | $ | 2,181,059 | $ | 13,061 | $ | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(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. |
54 |
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 Materials ETF |
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
|
||||||||||||||||
Description | Number of Contracts |
Expiration Date |
Notional (000) |
Value/ Unrealized Appreciation (Depreciation) |
||||||||||||
|
||||||||||||||||
Long Contracts |
||||||||||||||||
S&P/TSX 60 Index |
6 | 06/15/23 | $ | 1,074 | $ | 19,584 | ||||||||||
FTSE 100 Index |
6 | 06/16/23 | 566 | 5,990 | ||||||||||||
MSCI Emerging Markets Index |
11 | 06/16/23 | 547 | 12,886 | ||||||||||||
S&P 500 E-Mini Index |
4 | 06/16/23 | 828 | 39,277 | ||||||||||||
|
|
|||||||||||||||
$ | 77,737 | |||||||||||||||
|
|
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) |
$ | — | $ | — | $ | 77,737 | $ | — | $ | — | $ | — | $ | 77,737 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 |
Interest Rate Contracts |
Other Contracts |
Total | ||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Net Realized Gain (Loss) from |
||||||||||||||||||||||||||||
Futures contracts |
$ | — | $ | — | $ | (345,394 | ) | $ | — | $ | — | $ | — | $ | (345,394 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on |
||||||||||||||||||||||||||||
Futures contracts |
$ | — | $ | — | $ | (180,977 | ) | $ | — | $ | — | $ | — | $ | (180,977 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
|
||||
Futures contracts |
||||
Average notional value of contracts — long |
$ | 1,809,115 | ||
|
||||
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 |
$ | 171,063,800 | $ | 176,001,995 | $ | — | $ | 347,065,795 | ||||||||
Preferred Stocks |
767,249 | 257,575 | — | 1,024,824 | ||||||||||||
Short-Term Securities |
||||||||||||||||
Money Market Funds |
2,181,059 | — | — | 2,181,059 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 174,012,108 | $ | 176,259,570 | $ | — | $ | 350,271,678 | |||||||||
|
|
|
|
|
|
|
|
S C H E D U L E O F I N V E S T M E N T S |
55 |
Schedule of Investments (continued) March 31, 2023 |
iShares® Global Materials ETF |
Fair Value Hierarchy as of Period End (continued)
|
||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
|
||||||||||||||||
Derivative Financial Instruments(a) |
||||||||||||||||
Assets |
||||||||||||||||
Equity Contracts |
$ | 71,747 | $ | 5,990 | $ | — | $ | 77,737 | ||||||||
|
|
|
|
|
|
|
|
(a) |
Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument. |
See notes to financial statements.
56 |
2 0 2 3 I S H A R E S 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 |
March 31, 2023 |
iShares® Global Tech ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
||||||||
Australia — 0.1% |
||||||||
Xero Ltd.(a) |
40,276 | $ | 2,442,796 | |||||
|
|
|||||||
Canada — 1.1% |
||||||||
CGI Inc.(a) |
61,046 | 5,883,272 | ||||||
Constellation Software Inc./Canada |
5,682 | 10,682,539 | ||||||
Open Text Corp. |
77,987 | 3,008,111 | ||||||
Shopify Inc., Class A(a) |
344,776 | 16,530,880 | ||||||
|
|
|||||||
36,104,802 | ||||||||
China — 0.2% | ||||||||
Xiaomi Corp., Class B(a)(b) |
4,169,800 | 6,417,113 | ||||||
|
|
|||||||
Finland — 0.2% |
||||||||
Nokia OYJ |
1,520,894 | 7,465,893 | ||||||
|
|
|||||||
France — 0.5% |
||||||||
Capgemini SE |
45,546 | 8,464,058 | ||||||
Dassault Systemes SE |
199,880 | 8,245,256 | ||||||
|
|
|||||||
16,709,314 | ||||||||
Germany — 1.7% | ||||||||
Infineon Technologies AG |
376,559 | 15,463,459 | ||||||
SAP SE |
314,370 | 39,695,645 | ||||||
|
|
|||||||
55,159,104 | ||||||||
Japan — 3.7% | ||||||||
Advantest Corp. |
52,400 | 4,857,811 | ||||||
Canon Inc. |
299,900 | 6,678,730 | ||||||
FUJIFILM Holdings Corp. |
115,600 | 5,868,196 | ||||||
Fujitsu Ltd. |
51,700 | 6,986,235 | ||||||
Keyence Corp. |
57,140 | 28,004,790 | ||||||
Kyocera Corp. |
100,100 | 5,221,810 | ||||||
Lasertec Corp. |
22,300 | 3,962,248 | ||||||
Murata Manufacturing Co. Ltd. |
185,100 | 11,280,962 | ||||||
NEC Corp. |
78,600 | 3,034,366 | ||||||
Nomura Research Institute Ltd. |
128,700 | 3,009,997 | ||||||
NTT Data Corp. |
186,000 | 2,445,257 | ||||||
Obic Co. Ltd. |
18,900 | 2,993,636 | ||||||
Omron Corp. |
59,400 | 3,476,497 | ||||||
Renesas Electronics Corp.(a) |
406,500 | 5,886,446 | ||||||
Ricoh Co. Ltd. |
175,700 | 1,317,949 | ||||||
Rohm Co. Ltd. |
25,200 | 2,100,331 | ||||||
TDK Corp. |
112,000 | 4,020,366 | ||||||
Tokyo Electron Ltd. |
135,000 | 16,492,414 | ||||||
|
|
|||||||
117,638,041 | ||||||||
Netherlands — 2.7% | ||||||||
ASM International NV |
13,375 | 5,428,922 | ||||||
ASML Holding NV |
115,912 | 78,987,996 | ||||||
|
|
|||||||
84,416,918 | ||||||||
Singapore — 0.3% | ||||||||
STMicroelectronics NV , New |
189,190 | 10,074,837 | ||||||
|
|
|||||||
South Korea — 2.9% |
||||||||
Samsung Electronics Co. Ltd. |
1,476,158 | 72,997,426 | ||||||
Samsung SDI Co. Ltd. |
15,862 | 9,010,229 | ||||||
SK Hynix Inc. |
155,338 | 10,630,543 | ||||||
|
|
|||||||
92,638,198 | ||||||||
Sweden — 0.4% | ||||||||
Hexagon AB, Class B |
613,628 | 7,062,494 | ||||||
Telefonaktiebolaget LM Ericsson, Class B |
885,917 | 5,193,088 | ||||||
|
|
|||||||
12,255,582 |
Security | Shares | Value | ||||||
Switzerland — 0.1% | ||||||||
Logitech International SA, Registered |
49,914 | $ | 2,913,307 | |||||
Temenos AG, Registered |
19,440 | 1,352,753 | ||||||
|
|
|||||||
4,266,060 | ||||||||
Taiwan — 4.1% | ||||||||
Delta Electronics Inc. |
554,000 | 5,496,586 | ||||||
Hon Hai Precision Industry Co. Ltd. |
3,476,378 | 11,899,623 | ||||||
MediaTek Inc. |
456,000 | 11,822,309 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. |
5,441,600 | 95,361,895 | ||||||
United Microelectronics Corp. |
3,352,000 | 5,865,770 | ||||||
|
|
|||||||
130,446,183 | ||||||||
United Kingdom — 0.2% | ||||||||
Halma PLC |
109,469 | 3,022,054 | ||||||
Sage Group PLC (The) |
317,409 | 3,045,992 | ||||||
|
|
|||||||
6,068,046 | ||||||||
United States — 81.1% | ||||||||
Accenture PLC, Class A |
181,065 | 51,750,188 | ||||||
Adobe Inc.(a) |
131,628 | 50,725,482 | ||||||
Advanced Micro Devices Inc.(a) |
463,593 | 45,436,750 | ||||||
Akamai Technologies Inc.(a) |
45,340 | 3,550,122 | ||||||
Amphenol Corp., Class A |
170,164 | 13,905,802 | ||||||
Analog Devices Inc. |
145,614 | 28,717,993 | ||||||
Ansys Inc.(a) |
24,799 | 8,253,107 | ||||||
Apple Inc. |
4,276,257 | 705,154,779 | ||||||
Applied Materials Inc. |
242,284 | 29,759,744 | ||||||
Arista Networks Inc.(a) |
71,370 | 11,980,168 | ||||||
Autodesk Inc.(a) |
62,216 | 12,950,883 | ||||||
Broadcom Inc. |
120,152 | 77,082,314 | ||||||
Cadence Design Systems Inc.(a) |
78,616 | 16,516,435 | ||||||
CDW Corp./DE |
39,039 | 7,608,311 | ||||||
Ceridian HCM Holding Inc.(a)(c) |
44,363 | 3,248,259 | ||||||
Cisco Systems Inc. |
1,181,183 | 61,746,341 | ||||||
Cognizant Technology Solutions Corp., Class A |
145,054 | 8,838,140 | ||||||
Corning Inc. |
219,498 | 7,743,889 | ||||||
DXC Technology Co.(a) |
64,936 | 1,659,764 | ||||||
Enphase Energy Inc.(a) |
39,193 | 8,241,504 | ||||||
EPAM Systems Inc.(a) |
16,584 | 4,958,616 | ||||||
F5 Inc.(a) |
17,335 | 2,525,536 | ||||||
Fair Isaac Corp.(a) |
7,253 | 5,096,611 | ||||||
First Solar Inc.(a) |
28,587 | 6,217,673 | ||||||
Fortinet Inc.(a) |
186,971 | 12,426,093 | ||||||
Gartner Inc.(a) |
22,786 | 7,422,995 | ||||||
Gen Digital, Inc. |
164,019 | 2,814,566 | ||||||
Hewlett Packard Enterprise Co. |
369,609 | 5,887,871 | ||||||
HP Inc. |
245,679 | 7,210,679 | ||||||
Intel Corp. |
1,189,492 | 38,860,704 | ||||||
International Business Machines Corp. |
259,900 | 34,070,291 | ||||||
Intuit Inc. |
80,764 | 36,007,014 | ||||||
Juniper Networks Inc. |
93,412 | 3,215,241 | ||||||
Keysight Technologies Inc.(a) |
50,780 | 8,199,954 | ||||||
KLA Corp. |
39,672 | 15,835,872 | ||||||
Lam Research Corp. |
38,713 | 20,522,536 | ||||||
Microchip Technology Inc. |
157,956 | 13,233,554 | ||||||
Micron Technology Inc. |
312,868 | 18,878,455 | ||||||
Microsoft Corp. |
2,140,281 | 617,043,012 | ||||||
Monolithic Power Systems Inc. |
12,904 | 6,458,968 | ||||||
Motorola Solutions Inc. |
48,212 | 13,794,900 | ||||||
NetApp Inc. |
62,160 | 3,968,916 | ||||||
Nvidia Corp. |
707,312 | 196,470,054 | ||||||
NXP Semiconductors NV |
74,720 | 13,933,412 |
S C H E D U L E O F I N V E S T M E N T S |
57 |
Schedule of Investments (continued) March 31, 2023 |
iShares® Global Tech ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
United States (continued) |
| |||||||
ON Semiconductor Corp.(a) |
124,556 | $ | 10,253,450 | |||||
Oracle Corp. |
441,887 | 41,060,140 | ||||||
Paycom Software Inc.(a) |
13,903 | 4,226,651 | ||||||
PTC Inc.(a) |
30,691 | 3,935,507 | ||||||
Qorvo Inc.(a) |
28,802 | 2,925,419 | ||||||
Qualcomm Inc. |
320,590 | 40,900,872 | ||||||
Roper Technologies Inc. |
30,580 | 13,476,300 | ||||||
Salesforce Inc.(a) |
287,524 | 57,441,545 | ||||||
Seagate Technology Holdings PLC |
55,371 | 3,661,131 | ||||||
ServiceNow Inc.(a) |
58,307 | 27,096,429 | ||||||
Skyworks Solutions Inc. |
45,840 | 5,408,203 | ||||||
SolarEdge Technologies Inc.(a)(c) |
16,116 | 4,898,458 | ||||||
Synopsys Inc.(a) |
43,680 | 16,871,400 | ||||||
TE Connectivity Ltd. |
90,448 | 11,862,255 | ||||||
Teledyne Technologies Inc.(a) |
13,515 | 6,046,070 | ||||||
Teradyne Inc. |
44,911 | 4,828,382 | ||||||
Texas Instruments Inc. |
260,556 | 48,466,022 | ||||||
Trimble Inc.(a) |
71,113 | 3,727,744 | ||||||
Tyler Technologies Inc.(a) |
12,007 | 4,258,163 | ||||||
VeriSign Inc.(a) |
26,415 | 5,582,282 | ||||||
Western Digital Corp.(a) |
92,075 | 3,468,465 | ||||||
Zebra Technologies Corp., Class A(a) |
14,887 | 4,734,066 | ||||||
|
|
|||||||
2,575,052,452 | ||||||||
|
|
|||||||
Total
Common Stocks — 99.3% |
|
3,157,155,339 | ||||||
|
|
|||||||
Preferred Stocks |
||||||||
South Korea — 0.3% |
||||||||
Samsung Electronics Co. Ltd., Preference Shares, NVS |
237,277 | 9,874,187 | ||||||
|
|
|||||||
Total
Preferred Stocks — 0.3% |
|
9,874,187 | ||||||
|
|
|||||||
Total
Long-Term Investments — 99.6% |
3,167,029,526 | |||||||
|
|
Security | Shares | Value | ||||||
|
||||||||
Short-Term Securities |
| |||||||
Money Market Funds — 0.4% |
||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 5.01%(d)(e)(f) |
6,261,991 | $ | 6,263,870 | |||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 4.73%(d)(e) |
5,680,000 | 5,680,000 | ||||||
|
|
|||||||
Total
Short-Term Securities — 0.4% |
|
11,943,870 | ||||||
|
|
|||||||
Total
Investments — 100.0% |
|
3,178,973,396 | ||||||
Liabilities in Excess of Other Assets — (0.0)% |
|
(1,357,225 | ) | |||||
|
|
|||||||
Net Assets — 100.0% |
|
$ | 3,177,616,171 | |||||
|
|
(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 |
Income |
Capital Gain Distributions from Underlying Funds |
|||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares |
$ | 1,105,132 | $ | 5,186,781 | (a) | $ | — | $ | (25,672 | ) | $ | (2,371 | ) | $ | 6,263,870 | 6,261,991 | $ | 58,039 | (b) | $ | — | |||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares |
3,810,000 | 1,870,000 | (a) | — | — | — | 5,680,000 | 5,680,000 | 107,632 | 3 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
$ | (25,672 | ) | $ | (2,371 | ) | $ | 11,943,870 | $ | 165,671 | $ | 3 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(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. |
58 |
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 Tech ETF |
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
|
||||||||||||||||
Description |
Number of Contracts |
Expiration Date |
Notional Amount (000) |
Value/ Unrealized Appreciation (Depreciation) |
||||||||||||
|
||||||||||||||||
Long Contracts |
||||||||||||||||
E-Mini Technology Select Sector Index |
65 | 06/16/23 | $ | 9,983 | $ | 490,863 | ||||||||||
|
|
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) |
$ | — | $ | — | $ | 490,863 | $ | — | $ | — | $ | — | $ | 490,863 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 |
$ | — | $ | — | $ | (250,992 | ) | $ | — | $ | — | $ | — | $ | (250,992 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on |
||||||||||||||||||||||||||||
Futures contracts |
$ | — | $ | — | $ | (156,780 | ) | $ | — | $ | — | $ | — | $ | (156,780 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts |
||||
Average notional value of contracts — long |
$ | 8,864,778 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.
|
||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
|
||||||||||||||||
Assets |
||||||||||||||||
Investments |
||||||||||||||||
Long-Term Investments |
||||||||||||||||
Common Stocks |
$ | 2,611,157,254 | $ | 545,998,085 | $ | — | $ | 3,157,155,339 | ||||||||
Preferred Stocks |
— | 9,874,187 | — | 9,874,187 | ||||||||||||
Short-Term Securities |
||||||||||||||||
Money Market Funds |
11,943,870 | — | — | 11,943,870 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 2,623,101,124 | $ | 555,872,272 | $ | — | $ | 3,178,973,396 | |||||||||
|
|
|
|
|
|
|
|
S C H E D U L E O F I N V E S T M E N T S |
59 |
Schedule of Investments (continued) March 31, 2023 |
iShares® Global Tech ETF |
Fair Value Hierarchy as of Period End (continued)
|
||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
|
||||||||||||||||
Derivative Financial Instruments(a) |
||||||||||||||||
Assets |
||||||||||||||||
Equity Contracts |
$ | 490,863 | $ | — | $ | — | $ | 490,863 | ||||||||
|
|
|
|
|
|
|
|
(a) |
Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument. |
See notes to financial statements.
60 |
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 Utilities ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
| |||||||
Australia — 1.1% | ||||||||
APA Group |
104,918 | $ | 712,730 | |||||
Origin Energy Ltd. |
153,361 | 854,081 | ||||||
|
|
|||||||
1,566,811 | ||||||||
Austria — 0.2% | ||||||||
Verbund AG |
2,904 | 252,598 | ||||||
|
|
|||||||
Brazil — 0.5% | ||||||||
Centrais Eletricas Brasileiras SA |
113,925 | 748,044 | ||||||
|
|
|||||||
Canada — 4.0% | ||||||||
Algonquin Power & Utilities Corp. |
61,115 | 512,796 | ||||||
Brookfield Infrastructure Partners LP(a) |
40,971 | 1,384,495 | ||||||
Emera Inc. |
24,075 | 989,008 | ||||||
Fortis Inc. |
42,826 | 1,820,462 | ||||||
Hydro One Ltd.(b) |
28,390 | 808,322 | ||||||
|
|
|||||||
5,515,083 | ||||||||
Chile — 0.2% | ||||||||
Enel Americas SA |
1,766,896 | 232,729 | ||||||
|
|
|||||||
Colombia — 0.1% | ||||||||
Interconexion Electrica SA ESP |
39,555 | 128,679 | ||||||
|
|
|||||||
Denmark — 1.1% | ||||||||
Orsted AS(b) |
16,908 | 1,441,710 | ||||||
|
|
|||||||
Finland — 0.4% | ||||||||
Fortum OYJ |
39,142 | 599,598 | ||||||
|
|
|||||||
France — 3.3% | ||||||||
Engie SA |
165,138 | 2,613,257 | ||||||
Veolia Environnement SA |
59,985 | 1,850,968 | ||||||
|
|
|||||||
4,464,225 | ||||||||
Germany — 3.7% | ||||||||
E.ON SE |
200,340 | 2,499,185 | ||||||
RWE AG |
60,333 | 2,596,029 | ||||||
|
|
|||||||
5,095,214 | ||||||||
Italy — 4.6% | ||||||||
Enel SpA |
689,363 | 4,204,388 | ||||||
Snam SpA |
183,423 | 972,515 | ||||||
Terna - Rete Elettrica Nazionale |
125,204 | 1,027,598 | ||||||
|
|
|||||||
6,204,501 | ||||||||
Japan — 2.0% | ||||||||
Chubu Electric Power Co. Inc. |
67,500 | 712,085 | ||||||
Kansai Electric Power Co. Inc. (The) |
73,600 | 716,785 | ||||||
Osaka Gas Co. Ltd. |
37,100 | 609,471 | ||||||
Tokyo Gas Co. Ltd. |
36,000 | 676,556 | ||||||
|
|
|||||||
2,714,897 | ||||||||
Portugal — 1.0% | ||||||||
EDP - Energias de Portugal SA |
261,255 | 1,423,556 | ||||||
|
|
|||||||
Spain — 6.4% | ||||||||
Enagas SA |
22,773 | 437,599 | ||||||
Endesa SA |
28,224 | 613,020 | ||||||
Iberdrola SA |
516,821 | 6,438,451 | ||||||
Naturgy Energy Group SA |
16,373 | 492,885 | ||||||
Red Electrica Corp. SA |
39,338 | 692,203 | ||||||
|
|
|||||||
8,674,158 | ||||||||
United Kingdom — 6.7% | ||||||||
Centrica PLC |
537,601 | 704,060 |
Security | Shares | Value | ||||||
United Kingdom (continued) | ||||||||
National Grid PLC |
345,836 | $ | 4,678,123 | |||||
Severn Trent PLC |
22,521 | 800,012 | ||||||
SSE PLC |
93,578 | 2,088,084 | ||||||
United Utilities Group PLC |
61,019 | 798,583 | ||||||
|
|
|||||||
9,068,862 | ||||||||
United States — 64.3% | ||||||||
AES Corp. (The) |
59,465 | 1,431,917 | ||||||
Alliant Energy Corp. |
22,348 | 1,193,383 | ||||||
Ameren Corp. |
23,078 | 1,993,709 | ||||||
American Electric Power Co. Inc. |
45,847 | 4,171,619 | ||||||
American Water Works Co. Inc. |
17,217 | 2,522,118 | ||||||
Atmos Energy Corp. |
12,791 | 1,437,197 | ||||||
CenterPoint Energy Inc. |
56,045 | 1,651,086 | ||||||
CMS Energy Corp. |
25,966 | 1,593,793 | ||||||
Consolidated Edison Inc. |
31,661 | 3,029,008 | ||||||
Constellation Energy Corp. |
29,182 | 2,290,787 | ||||||
Dominion Energy Inc. |
74,344 | 4,156,573 | ||||||
DTE Energy Co. |
17,298 | 1,894,823 | ||||||
Duke Energy Corp. |
68,650 | 6,622,666 | ||||||
Edison International |
34,075 | 2,405,354 | ||||||
Entergy Corp. |
18,167 | 1,957,313 | ||||||
Evergy Inc. |
20,523 | 1,254,366 | ||||||
Eversource Energy |
31,078 | 2,432,164 | ||||||
Exelon Corp. |
88,660 | 3,713,967 | ||||||
FirstEnergy Corp. |
48,488 | 1,942,429 | ||||||
NextEra Energy Inc. |
174,814 | 13,474,663 | ||||||
NiSource Inc. |
36,145 | 1,010,614 | ||||||
NRG Energy Inc. |
20,610 | 706,717 | ||||||
PG&E Corp.(a) |
143,661 | 2,322,998 | ||||||
Pinnacle West Capital Corp. |
10,123 | 802,147 | ||||||
PPL Corp. |
65,747 | 1,827,109 | ||||||
Public Service Enterprise Group Inc. |
44,516 | 2,780,024 | ||||||
Sempra Energy |
28,045 | 4,239,282 | ||||||
Southern Co. (The) |
97,062 | 6,753,574 | ||||||
WEC Energy Group Inc. |
28,143 | 2,667,675 | ||||||
Xcel Energy Inc. |
48,825 | 3,292,758 | ||||||
|
|
|||||||
87,571,833 | ||||||||
|
|
|||||||
Total
Long-Term Investments — 99.6% |
|
135,702,498 | ||||||
|
|
|||||||
Short-Term Securities |
||||||||
Money Market Funds — 0.1% |
||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 4.73%(c)(d) |
110,000 | 110,000 | ||||||
|
|
|||||||
Total
Short-Term Securities — 0.1% |
|
110,000 | ||||||
|
|
|||||||
Total
Investments — 99.7% |
|
135,812,498 | ||||||
Other Assets Less Liabilities — 0.3% |
|
343,886 | ||||||
|
|
|||||||
Net Assets — 100.0% |
|
$ | 136,156,384 | |||||
|
|
(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) |
Affiliate of the Fund. |
(d) |
Annualized 7-day yield as of period end. |
S C H E D U L E O F I N V E S T M E N T S |
61 |
Schedule of Investments (continued) March 31, 2023 |
iShares® Global Utilities 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(a) |
$ | 20,246 | $ | — | $(20,161 | )(b) | $ | (82 | ) | $ | (3 | ) | $ | — | — | $ | 1,549 | (c) | $ | — | ||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares |
190,000 | — | (80,000 | )(b) | — | — | 110,000 | 110,000 | 6,556 | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
$ | (82 | ) | $ | (3 | ) | $ | 110,000 | $ | 8,105 | $ | — | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) |
As of period end, the entity is no longer held. |
(b) |
Represents net amount purchased (sold). |
(c) |
All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
|
||||||||||||||||
Description |
Number of Contracts |
Expiration Date |
Notional Amount (000) |
Value/ Unrealized Appreciation (Depreciation) |
||||||||||||
|
||||||||||||||||
Long Contracts |
||||||||||||||||
E-Mini Utilities Select Sector Index |
5 | 06/16/23 | $ | 344 | $ | 16,596 | ||||||||||
|
|
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) |
$ | — | $ | — | $ | 16,596 | $ | — | $ | — | $ | — | $ | 16,596 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 |
$ | — | $ | — | $ | (45,062 | ) | $ | — | $ | — | $ | — | $ | (45,062 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on |
||||||||||||||||||||||||||||
Futures contracts |
$ | — | $ | — | $ | (6,500 | ) | $ | — | $ | — | $ | — | $ | (6,500 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts |
||||
Average notional value of contracts — long |
$ | 480,984 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
62 |
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 Utilities 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 |
$ | 94,196,368 | $ | 41,506,130 | $ | — | $ | 135,702,498 | ||||||||
Short-Term Securities |
||||||||||||||||
Money Market Funds |
110,000 | — | — | 110,000 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 94,306,368 | $ | 41,506,130 | $ | — | $ | 135,812,498 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Derivative Financial Instruments(a) |
||||||||||||||||
Assets |
||||||||||||||||
Equity Contracts |
$ | 16,596 | $ | — | $ | — | $ | 16,596 | ||||||||
|
|
|
|
|
|
|
|
(a) |
Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument. |
See notes to financial statements.
S C H E D U L E O F I N V E S T M E N T S |
63 |
Statements of Assets and Liabilities
March 31, 2023
iShares Global Comm Services ETF |
iShares Global Consumer Discretionary ETF |
iShares Global Consumer Staples ETF |
iShares Global Energy ETF |
|||||||||||||||||
|
||||||||||||||||||||
ASSETS |
||||||||||||||||||||
Investments, at value — unaffiliated(a)(b) |
$ | 255,794,474 | $ | 303,893,204 | $ | 1,527,238,444 | $ | 1,788,795,867 | ||||||||||||
Investments, at value — affiliated(c) |
1,564,044 | 1,715,589 | 2,050,000 | 3,710,000 | ||||||||||||||||
Cash |
7,751 | 4,319 | 9,492 | 53,389 | ||||||||||||||||
Cash pledged for futures contracts |
37,000 | 34,000 | 335,000 | 777,000 | ||||||||||||||||
Foreign currency collateral pledged for futures contracts(d) |
11,644 | 22,202 | 108,530 | 81,417 | ||||||||||||||||
Foreign currency, at value(e) |
252,919 | 233,428 | 2,342,700 | 2,325,815 | ||||||||||||||||
Receivables: |
||||||||||||||||||||
Securities lending income — affiliated |
1,431 | 458 | 287 | — | ||||||||||||||||
Capital shares sold |
— | — | 135,483 | 2,996,048 | ||||||||||||||||
Dividends — unaffiliated |
407,700 | 457,071 | 4,226,247 | 5,315,317 | ||||||||||||||||
Dividends — affiliated |
1,399 | 1,077 | 6,778 | 12,155 | ||||||||||||||||
Tax reclaims |
23,224 | 94,659 | 681,651 | 585,163 | ||||||||||||||||
Variation margin on futures contracts |
11,656 | 15,317 | 66,887 | 57,545 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total assets |
258,113,242 | 306,471,324 | 1,537,201,499 | 1,804,709,716 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
LIABILITIES |
||||||||||||||||||||
Collateral on securities loaned, at value |
1,022,813 | 1,455,704 | — | — | ||||||||||||||||
Payables: |
||||||||||||||||||||
Investments purchased |
— | — | 7,384 | 3,394,312 | ||||||||||||||||
Investment advisory fees |
87,814 | 97,249 | 511,762 | 647,119 | ||||||||||||||||
IRS compliance fee for foreign withholding tax claims |
441,672 | — | — | 1,676,406 | ||||||||||||||||
Professional fees |
20,778 | 1,721 | 3,247 | 215,740 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total liabilities |
1,573,077 | 1,554,674 | 522,393 | 5,933,577 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
NET ASSETS |
$ | 256,540,165 | $ | 304,916,650 | $ | 1,536,679,106 | $ | 1,798,776,139 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
NET ASSETS CONSIST OF |
||||||||||||||||||||
Paid-in capital |
$ | 406,425,930 | $ | 385,197,521 | $ | 1,520,738,907 | $ | 1,922,173,090 | ||||||||||||
Accumulated earnings (loss) |
(149,885,765 | ) | (80,280,871 | ) | 15,940,199 | (123,396,951 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
NET ASSETS |
$ | 256,540,165 | $ | 304,916,650 | $ | 1,536,679,106 | $ | 1,798,776,139 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
NET ASSET VALUE |
||||||||||||||||||||
Shares outstanding |
4,000,000 | 2,100,000 | 24,850,000 | 47,700,000 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net asset value |
$ | 64.14 | $ | 145.20 | $ | 61.84 | $ | 37.71 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Shares authorized |
Unlimited | Unlimited | Unlimited | Unlimited | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Par value |
None | None | None | None | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
(a) Investments, at cost — unaffiliated |
$ | 285,260,100 | $ | 343,231,888 | $ | 1,469,367,971 | $ | 1,686,466,344 | ||||||||||||
(b) Securities loaned, at value |
$ | 1,012,464 | $ | 1,464,396 | $ | — | $ | — | ||||||||||||
(c) Investments, at cost — affiliated |
$ | 1,564,234 | $ | 1,715,409 | $ | 2,050,000 | $ | 3,710,000 | ||||||||||||
(d) Foreign currency collateral pledged, at cost |
$ | 11,735 | $ | 21,864 | $ | 108,576 | $ | 81,015 | ||||||||||||
(e) Foreign currency, at cost |
$ | 253,500 | $ | 233,044 | $ | 2,341,508 | $ | 2,329,511 |
See notes to financial statements.
64 |
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 |
Statements of Assets and Liabilities (continued)
March 31, 2023
iShares Global Financials ETF |
iShares Global Healthcare ETF |
iShares Global Industrials ETF |
iShares Global Materials ETF |
|||||||||||||
|
||||||||||||||||
ASSETS |
||||||||||||||||
Investments, at value — unaffiliated(a)(b) |
$ | 416,435,241 | $ | 4,066,362,201 | $ | 335,055,433 | $ | 348,090,619 | ||||||||
Investments, at value — affiliated(c) |
6,563,352 | 34,886,449 | 4,129,037 | 2,181,059 | ||||||||||||
Cash |
28,647 | — | 18,623 | 84,625 | ||||||||||||
Cash pledged for futures contracts |
229,000 | 752,000 | 67,000 | 78,000 | ||||||||||||
Foreign currency collateral pledged for futures contracts(d) |
92,467 | — | 48,231 | 109,276 | ||||||||||||
Foreign currency, at value(e) |
985,115 | 2,876,163 | 642,382 | 556,769 | ||||||||||||
Receivables: |
||||||||||||||||
Investments sold |
375,695 | 82,033 | 109 | — | ||||||||||||
Securities lending income — affiliated |
1,414 | 6,850 | 309 | 349 | ||||||||||||
Capital shares sold |
— | — | — | 64,059 | ||||||||||||
Dividends — unaffiliated |
1,413,988 | 4,633,970 | 668,180 | 2,111,602 | ||||||||||||
Dividends — affiliated |
2,118 | 22,979 | 1,625 | 1,047 | ||||||||||||
Tax reclaims |
911,069 | 4,323,039 | 243,697 | 317,538 | ||||||||||||
Variation margin on futures contracts |
37,453 | 173,637 | 22,211 | 24,475 | ||||||||||||
Other assets |
213,591 | — | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total assets |
427,289,150 | 4,114,119,321 | 340,896,837 | 353,619,418 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
LIABILITIES |
||||||||||||||||
Bank overdraft |
— | 50 | — | — | ||||||||||||
Collateral on securities loaned, at value |
778,688 | 28,980,663 | 3,815,515 | 1,651,530 | ||||||||||||
Payables: |
||||||||||||||||
Investments purchased |
— | — | — | 678,111 | ||||||||||||
Capital shares redeemed |
910,775 | 495,395 | — | — | ||||||||||||
Investment advisory fees |
172,606 | 1,387,336 | 117,437 | 117,941 | ||||||||||||
IRS compliance fee for foreign withholding tax claims |
18,699 | — | — | — | ||||||||||||
Professional fees |
33,653 | — | 5,705 | 1,652 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total liabilities |
1,914,421 | 30,863,444 | 3,938,657 | 2,449,234 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
NET ASSETS |
$ | 425,374,729 | $ | 4,083,255,877 | $ | 336,958,180 | $ | 351,170,184 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
NET ASSETS CONSIST OF |
||||||||||||||||
Paid-in capital |
$ | 633,068,223 | $ | 3,691,597,033 | $ | 384,113,912 | $ | 495,419,807 | ||||||||
Accumulated earnings (loss) |
(207,693,494 | ) | 391,658,844 | (47,155,732 | ) | (144,249,623 | ) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
NET ASSETS |
$ | 425,374,729 | $ | 4,083,255,877 | $ | 336,958,180 | $ | 351,170,184 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
NET ASSET VALUE |
||||||||||||||||
Shares outstanding |
6,150,000 | 48,950,000 | 2,950,000 | 4,200,000 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net asset value |
$ | 69.17 | $ | 83.42 | $ | 114.22 | $ | 83.61 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Shares authorized |
Unlimited | Unlimited | Unlimited | Unlimited | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Par value |
None | None | None | None | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
(a) Investments, at cost — unaffiliated |
$ | 481,590,842 | $ | 3,585,613,905 | $ | 350,943,349 | $ | 392,509,224 | ||||||||
(b) Securities loaned, at value |
$ | 763,121 | $ | 28,551,194 | $ | 3,805,426 | $ | 1,611,959 | ||||||||
(c) Investments, at cost — affiliated |
$ | 8,217,458 | $ | 34,881,094 | $ | 4,129,689 | $ | 2,181,519 | ||||||||
(d) Foreign currency collateral pledged, at cost |
$ | 91,998 | $ | — | $ | 48,316 | $ | 110,797 | ||||||||
(e) Foreign currency, at cost |
$ | 982,739 | $ | 2,880,123 | $ | 638,864 | $ | 553,639 |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S |
65 |
Statements of Assets and Liabilities (continued)
March 31, 2023
iShares Global Tech ETF |
iShares Global Utilities ETF |
|||||||
|
||||||||
ASSETS |
||||||||
Investments, at value — unaffiliated(a)(b) |
$ | 3,167,029,526 | $ | 135,702,498 | ||||
Investments, at value — affiliated(c) |
11,943,870 | 110,000 | ||||||
Cash |
3,932 | 7,373 | ||||||
Cash pledged for futures contracts |
624,000 | 23,000 | ||||||
Foreign currency, at value(d) |
2,594,253 | 206,627 | ||||||
Receivables: |
||||||||
Investments sold |
22,467 | — | ||||||
Securities lending income — affiliated |
2,107 | — | ||||||
Dividends — unaffiliated |
2,511,230 | 170,532 | ||||||
Dividends — affiliated |
19,002 | 693 | ||||||
Tax reclaims |
33,548 | 44,755 | ||||||
Variation margin on futures contracts |
142,964 | 3,944 | ||||||
Other assets |
10,270 | — | ||||||
|
|
|
|
|||||
Total assets |
3,184,937,169 | 136,269,422 | ||||||
|
|
|
|
|||||
LIABILITIES |
||||||||
Collateral on securities loaned, at value |
6,268,915 | — | ||||||
Payables: |
||||||||
Investment advisory fees |
1,047,784 | 46,896 | ||||||
IRS compliance fee for foreign withholding tax claims |
— | 49,287 | ||||||
Professional fees |
4,299 | 16,855 | ||||||
|
|
|
|
|||||
Total liabilities |
7,320,998 | 113,038 | ||||||
|
|
|
|
|||||
NET ASSETS |
$ | 3,177,616,171 | $ | 136,156,384 | ||||
|
|
|
|
|||||
NET ASSETS CONSIST OF |
||||||||
Paid-in capital |
$ | 2,666,027,959 | $ | 200,986,144 | ||||
Accumulated earnings (loss) |
511,588,212 | (64,829,760 | ) | |||||
|
|
|
|
|||||
NET ASSETS |
$ | 3,177,616,171 | $ | 136,156,384 | ||||
|
|
|
|
|||||
NET ASSET VALUE |
||||||||
Shares outstanding |
58,450,000 | 2,250,000 | ||||||
|
|
|
|
|||||
Net asset value |
$ | 54.36 | $ | 60.51 | ||||
|
|
|
|
|||||
Shares authorized |
Unlimited | Unlimited | ||||||
|
|
|
|
|||||
Par value |
None | None | ||||||
|
|
|
|
|||||
(a) Investments, at cost — unaffiliated |
$ | 2,537,591,159 | $ | 153,128,276 | ||||
(b) Securities loaned, at value |
$ | 6,326,154 | $ | — | ||||
(c) Investments, at cost — affiliated |
$ | 11,945,627 | $ | 110,000 | ||||
(d) Foreign currency, at cost |
$ | 2,586,558 | $ | 205,609 |
See notes to financial statements.
66 |
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 |
Year Ended March 31, 2023
iShares Global Comm Services ETF |
iShares Global Consumer Discretionary ETF |
iShares Global Consumer Staples ETF |
iShares Global Energy ETF |
|||||||||||||
|
||||||||||||||||
INVESTMENT INCOME |
||||||||||||||||
Dividends — unaffiliated |
$ | 3,902,537 | $ | 4,998,933 | $ | 33,679,400 | $ | 115,052,288 | ||||||||
Dividends — affiliated |
7,542 | 8,454 | 46,735 | 98,055 | ||||||||||||
Interest — unaffiliated |
536 | 797 | 2,867 | 15,189 | ||||||||||||
Securities lending income — affiliated — net |
10,328 | 10,386 | 7,826 | 4,211 | ||||||||||||
Other income — unaffiliated |
27,956 | 43 | 162 | 1,098,592 | ||||||||||||
Foreign taxes withheld |
(189,172 | ) | (349,975 | ) | (1,201,968 | ) | (3,801,282 | ) | ||||||||
Foreign withholding tax claims |
151,764 | 17,032 | 77,242 | 4,432,467 | ||||||||||||
IRS compliance fee for foreign withholding tax claims |
(109,622 | ) | — | — | (1,676,405 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total investment income |
3,801,869 | 4,685,670 | 32,612,264 | 115,223,115 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
EXPENSES |
||||||||||||||||
Investment advisory |
980,382 | 1,225,538 | 5,199,328 | 8,707,110 | ||||||||||||
Professional |
17,956 | 1,707 | 7,740 | 553,153 | ||||||||||||
Commitment costs |
290 | 295 | 387 | 2,958 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total expenses |
998,628 | 1,227,540 | 5,207,455 | 9,263,221 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net investment income |
2,803,241 | 3,458,130 | 27,404,809 | 105,959,894 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
REALIZED AND UNREALIZED GAIN (LOSS) |
||||||||||||||||
Net realized gain (loss) from: |
||||||||||||||||
Investments — unaffiliated |
(14,034,351 | ) | (16,770,182 | ) | (27,757,207 | ) | (32,127,684 | ) | ||||||||
Investments — affiliated |
699 | (5,126 | ) | 5,141 | (4,166 | ) | ||||||||||
Capital gain distributions from underlying funds — affiliated |
— | — | — | 3 | ||||||||||||
Foreign currency transactions |
(49,315 | ) | (53,030 | ) | (7,241 | ) | (574,377 | ) | ||||||||
Futures contracts |
(32,611 | ) | (129,191 | ) | (1,432 | ) | (2,539,479 | ) | ||||||||
In-kind redemptions — unaffiliated(a) |
4,741,618 | 3,720,641 | 23,949,120 | 254,055,244 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
(9,373,960 | ) | (13,236,888 | ) | (3,811,619 | ) | 218,809,541 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net change in unrealized appreciation (depreciation) on: |
||||||||||||||||
Investments — unaffiliated |
(21,145,993 | ) | (18,013,283 | ) | 13,423,793 | (138,011,702 | ) | |||||||||
Investments — affiliated |
(190 | ) | 180 | (19 | ) | — | ||||||||||
Foreign currency translations |
(7,272 | ) | 1,030 | 17,980 | 19,226 | |||||||||||
Futures contracts |
32,579 | (38,191 | ) | 108,887 | 107,699 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
(21,120,876 | ) | (18,050,264 | ) | 13,550,641 | (137,884,777 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net realized and unrealized gain (loss) |
(30,494,836 | ) | (31,287,152 | ) | 9,739,022 | 80,924,764 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
$ | (27,691,595 | ) | $ | (27,829,022 | ) | $ | 37,143,831 | $ | 186,884,658 | ||||||
|
|
|
|
|
|
|
|
(a) |
See Note 2 of the Notes to Financial Statements. |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S |
67 |
Statements of Operations (continued)
Year Ended March 31, 2023
iShares Global Financials ETF |
iShares Global Healthcare ETF |
iShares Global Industrials ETF |
iShares Global Materials ETF |
|||||||||||||
|
||||||||||||||||
INVESTMENT INCOME |
||||||||||||||||
Dividends — unaffiliated |
$ | 27,434,959 | $ | 69,738,396 | $ | 7,013,129 | $ | 15,554,753 | ||||||||
Dividends — affiliated |
296,545 | 129,215 | 14,424 | 9,115 | ||||||||||||
Interest — unaffiliated |
3,866 | 7,456 | — | 678 | ||||||||||||
Securities lending income — affiliated — net |
7,305 | 48,440 | 13,687 | 3,946 | ||||||||||||
Other income — unaffiliated |
8,605 | 123,258 | 140 | 41 | ||||||||||||
Foreign taxes withheld |
(1,965,994 | ) | (3,446,043 | ) | (455,653 | ) | (890,431 | ) | ||||||||
Foreign withholding tax claims |
322,697 | 563,076 | 56,776 | 16,444 | ||||||||||||
IRS compliance fee for foreign withholding tax claims |
(18,699 | ) | — | — | — | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total investment income |
26,089,284 | 67,163,798 | 6,642,503 | 14,694,546 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
EXPENSES |
||||||||||||||||
Investment advisory |
3,041,905 | 15,772,425 | 1,304,241 | 1,673,604 | ||||||||||||
Professional |
38,942 | 68,643 | 11,504 | 1,649 | ||||||||||||
Commitment costs |
3,356 | — | 76 | 1,899 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total expenses |
3,084,203 | 15,841,068 | 1,315,821 | 1,677,152 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net investment income |
23,005,081 | 51,322,730 | 5,326,682 | 13,017,394 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
REALIZED AND UNREALIZED GAIN (LOSS) |
||||||||||||||||
Net realized gain (loss) from: |
||||||||||||||||
Investments — unaffiliated |
(46,517,892 | ) | (24,391,173 | ) | (8,315,458 | ) | (8,150,568 | ) | ||||||||
Investments — affiliated |
(401,351 | ) | 4,655 | 5,125 | 1,739 | |||||||||||
Capital gain distributions from underlying funds — affiliated |
1 | 4 | — | — | ||||||||||||
Foreign currency transactions |
(322,681 | ) | (189,249 | ) | (73,936 | ) | (329,332 | ) | ||||||||
Futures contracts |
(702,503 | ) | (1,915,886 | ) | (30,818 | ) | (345,394 | ) | ||||||||
In-kind redemptions — unaffiliated(a) |
(62,250,390 | ) | 265,262,419 | (216,046 | ) | (3,918,100 | ) | |||||||||
In-kind redemptions — affiliated(a) |
(2,146,093 | ) | — | — | — | |||||||||||
Litigation proceeds(b) |
186,962 | — | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
(112,153,947 | ) | 238,770,770 | (8,631,133 | ) | (12,741,655 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net change in unrealized appreciation (depreciation) on: |
||||||||||||||||
Investments — unaffiliated |
(22,837,390 | ) | (403,185,054 | ) | (3,825,766 | ) | (79,623,521 | ) | ||||||||
Investments — affiliated |
703,806 | 4,144 | (1,113 | ) | (460 | ) | ||||||||||
Foreign currency translations |
(1,346 | ) | 56,618 | (230 | ) | (1,929 | ) | |||||||||
Futures contracts |
100,971 | (34,093 | ) | 19,090 | (180,977 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
(22,033,959 | ) | (403,158,385 | ) | (3,808,019 | ) | (79,806,887 | ) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Net realized and unrealized loss |
(134,187,906 | ) | (164,387,615 | ) | (12,439,152 | ) | (92,548,542 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS |
$ | (111,182,825 | ) | $ | (113,064,885 | ) | $ | (7,112,470 | ) | $ | (79,531,148 | ) | ||||
|
|
|
|
|
|
|
|
(a) |
See Note 2 of the Notes to Financial Statements. |
(b) |
Represents proceeds received from settlement of class action litigation where the Fund was able to recover a portion of investment losses previously realized. |
See notes to financial statements.
68 |
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 |
Statements of Operations (continued)
Year Ended March 31, 2023
iShares Global Tech ETF |
iShares Global Utilities ETF |
|||||||
|
||||||||
INVESTMENT INCOME |
||||||||
Dividends — unaffiliated |
$ | 40,139,701 | $ | 5,367,484 | ||||
Dividends — affiliated |
107,632 | 6,556 | ||||||
Interest — unaffiliated |
13,174 | 424 | ||||||
Securities lending income — affiliated — net |
58,039 | 1,549 | ||||||
Non-cash dividends — unaffiliated |
— | 309,307 | ||||||
Other income — unaffiliated |
124 | 48,419 | ||||||
Foreign taxes withheld |
(1,838,446 | ) | (241,650 | ) | ||||
Foreign withholding tax claims |
42,855 | 198,724 | ||||||
IRS compliance fee for foreign withholding tax claims |
— | (1,018 | ) | |||||
|
|
|
|
|||||
Total investment income |
38,523,079 | 5,689,795 | ||||||
|
|
|
|
|||||
EXPENSES |
||||||||
Investment advisory |
13,489,508 | 673,985 | ||||||
Commitment costs |
16,846 | 54 | ||||||
Professional |
4,148 | 24,864 | ||||||
|
|
|
|
|||||
Total expenses |
13,510,502 | 698,903 | ||||||
|
|
|
|
|||||
Net investment income |
25,012,577 | 4,990,892 | ||||||
|
|
|
|
|||||
REALIZED AND UNREALIZED GAIN (LOSS) |
||||||||
Net realized gain (loss) from: |
||||||||
Investments — unaffiliated |
(63,110,253 | ) | (4,982,072 | ) | ||||
Investments — affiliated |
(25,672 | ) | (82 | ) | ||||
Capital gain distributions from underlying funds — affiliated |
3 | — | ||||||
Foreign currency transactions |
(498,023 | ) | (24,291 | ) | ||||
Futures contracts |
(250,992 | ) | (45,062 | ) | ||||
In-kind redemptions — unaffiliated(a) |
546,542,119 | 1,531,166 | ||||||
|
|
|
|
|||||
482,657,182 | (3,520,341 | ) | ||||||
|
|
|
|
|||||
Net change in unrealized appreciation (depreciation) on: |
||||||||
Investments — unaffiliated |
(987,930,976 | ) | (15,196,322 | ) | ||||
Investments — affiliated |
(2,371 | ) | (3 | ) | ||||
Foreign currency translations |
21,362 | (13 | ) | |||||
Futures contracts |
(156,780 | ) | (6,500 | ) | ||||
|
|
|
|
|||||
(988,068,765 | ) | (15,202,838 | ) | |||||
|
|
|
|
|||||
Net realized and unrealized loss |
(505,411,583 | ) | (18,723,179 | ) | ||||
|
|
|
|
|||||
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS |
$ | (480,399,006 | ) | $ | (13,732,287 | ) | ||
|
|
|
|
(a) |
See Note 2 of the Notes to Financial Statements. |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S |
69 |
Statements of Changes in Net Assets
iShares Global Comm Services ETF |
iShares Global Consumer Discretionary ETF |
|||||||||||||||||||
|
|
|
|
|||||||||||||||||
Year Ended 03/31/23 |
Year Ended 03/31/22 |
Year Ended 03/31/23 |
Year Ended 03/31/22 |
|||||||||||||||||
|
||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS |
||||||||||||||||||||
OPERATIONS |
||||||||||||||||||||
Net investment income |
$ | 2,803,241 | $ | 2,759,004 | $ | 3,458,130 | $ | 2,686,489 | ||||||||||||
Net realized gain (loss) |
(9,373,960 | ) | 59,321,532 | (13,236,888 | ) | 70,684,647 | ||||||||||||||
Net change in unrealized appreciation (depreciation) |
(21,120,876 | ) | (79,134,138 | ) | (18,050,264 | ) | (98,094,515 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net decrease in net assets resulting from operations |
(27,691,595 | ) | (17,053,602 | ) | (27,829,022 | ) | (24,723,379 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) |
||||||||||||||||||||
Decrease in net assets resulting from distributions to shareholders |
(2,680,016 | ) | (5,514,816 | ) | (3,272,046 | ) | (4,140,498 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
CAPITAL SHARE TRANSACTIONS |
||||||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions |
46,641,829 | (57,541,140 | ) | (22,847,245 | ) | (43,016,116 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
NET ASSETS |
||||||||||||||||||||
Total increase (decrease) in net assets |
16,270,218 | (80,109,558 | ) | (53,948,313 | ) | (71,879,993 | ) | |||||||||||||
Beginning of year |
240,269,947 | 320,379,505 | 358,864,963 | 430,744,956 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
End of year |
$ | 256,540,165 | $ | 240,269,947 | $ | 304,916,650 | $ | 358,864,963 | ||||||||||||
|
|
|
|
|
|
|
|
(a) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
70 |
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 |
Statements of Changes in Net Assets (continued)
iShares Global Consumer Staples ETF |
iShares Global Energy ETF |
|||||||||||||||||||
|
|
|
|
|||||||||||||||||
Year Ended 03/31/23 |
Year Ended 03/31/22 |
Year Ended 03/31/23 |
Year Ended 03/31/22 |
|||||||||||||||||
|
||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS |
||||||||||||||||||||
OPERATIONS |
||||||||||||||||||||
Net investment income |
$ | 27,404,809 | $ | 16,123,906 | $ | 105,959,894 | $ | 70,477,381 | ||||||||||||
Net realized gain (loss) |
(3,811,619 | ) | 23,776,879 | 218,809,541 | 113,122,772 | |||||||||||||||
Net change in unrealized appreciation (depreciation) |
13,550,641 | 6,967,202 | (137,884,777 | ) | 516,085,873 | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net increase in net assets resulting from operations |
37,143,831 | 46,867,987 | 186,884,658 | 699,686,026 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) |
||||||||||||||||||||
Decrease in net assets resulting from distributions to shareholders |
(24,794,345 | ) | (15,010,694 | ) | (103,333,626 | ) | (64,194,482 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
CAPITAL SHARE TRANSACTIONS |
||||||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions |
502,554,697 | 464,010,197 | (565,617,612 | ) | 337,330,459 | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
NET ASSETS |
||||||||||||||||||||
Total increase (decrease) in net assets |
514,904,183 | 495,867,490 | (482,066,580 | ) | 972,822,003 | |||||||||||||||
Beginning of year |
1,021,774,923 | 525,907,433 | 2,280,842,719 | 1,308,020,716 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
End of year |
$ | 1,536,679,106 | $ | 1,021,774,923 | $ | 1,798,776,139 | $ | 2,280,842,719 | ||||||||||||
|
|
|
|
|
|
|
|
(a) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S |
71 |
Statements of Changes in Net Assets (continued)
iShares Global Financials ETF |
iShares Global Healthcare ETF |
|||||||||||||||||||
|
|
|
|
|||||||||||||||||
Year Ended 03/31/23 |
Year Ended 03/31/22 |
Year Ended 03/31/23 |
Year Ended 03/31/22 |
|||||||||||||||||
|
||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS |
||||||||||||||||||||
OPERATIONS |
||||||||||||||||||||
Net investment income |
$ | 23,005,081 | $ | 51,081,838 | $ | 51,322,730 | $ | 41,847,005 | ||||||||||||
Net realized gain (loss) |
(112,153,947 | ) | 76,434,346 | 238,770,770 | 75,337,909 | |||||||||||||||
Net change in unrealized appreciation (depreciation) |
(22,033,959 | ) | (57,062,400 | ) | (403,158,385 | ) | 301,309,666 | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net increase (decrease) in net assets resulting from operations |
(111,182,825 | ) | 70,453,784 | (113,064,885 | ) | 418,494,580 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) |
||||||||||||||||||||
Decrease in net assets resulting from distributions to shareholders |
(27,379,101 | ) | (47,722,673 | ) | (46,042,619 | ) | (39,505,134 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
CAPITAL SHARE TRANSACTIONS |
||||||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions |
(598,208,666 | ) | 666,670,761 | 750,358,066 | 407,814,541 | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
NET ASSETS |
||||||||||||||||||||
Total increase (decrease) in net assets |
(736,770,592 | ) | 689,401,872 | 591,250,562 | 786,803,987 | |||||||||||||||
Beginning of year |
1,162,145,321 | 472,743,449 | 3,492,005,315 | 2,705,201,328 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
End of year |
$ | 425,374,729 | $ | 1,162,145,321 | $ | 4,083,255,877 | $ | 3,492,005,315 | ||||||||||||
|
|
|
|
|
|
|
|
(a) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
72 |
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 |
Statements of Changes in Net Assets (continued)
iShares Global Industrials ETF |
iShares Global Materials ETF |
|||||||||||||||||||
|
|
|
|
|||||||||||||||||
Year Ended 03/31/23 |
Year Ended 03/31/22 |
Year Ended 03/31/23 |
Year Ended 03/31/22 |
|||||||||||||||||
|
||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS |
||||||||||||||||||||
OPERATIONS |
||||||||||||||||||||
Net investment income |
$ | 5,326,682 | $ | 5,417,472 | $ | 13,017,394 | $ | 26,924,199 | ||||||||||||
Net realized gain (loss) |
(8,631,133 | ) | 15,679,431 | (12,741,655 | ) | 92,748,979 | ||||||||||||||
Net change in unrealized appreciation (depreciation) |
(3,808,019 | ) | (14,934,079 | ) | (79,806,887 | ) | (43,739,735 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net increase (decrease) in net assets resulting from operations |
(7,112,470 | ) | 6,162,824 | (79,531,148 | ) | 75,933,443 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) |
||||||||||||||||||||
Decrease in net assets resulting from distributions to shareholders |
(5,234,413 | ) | (6,438,398 | ) | (22,752,409 | ) | (25,613,809 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
CAPITAL SHARE TRANSACTIONS |
||||||||||||||||||||
Net decrease in net assets derived from capital share transactions |
(27,176,051 | ) | (45,709,099 | ) | (273,573,823 | ) | (46,291,020 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
NET ASSETS |
||||||||||||||||||||
Total increase (decrease) in net assets |
(39,522,934 | ) | (45,984,673 | ) | (375,857,380 | ) | 4,028,614 | |||||||||||||
Beginning of year |
376,481,114 | 422,465,787 | 727,027,564 | 722,998,950 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
End of year |
$ | 336,958,180 | $ | 376,481,114 | $ | 351,170,184 | $ | 727,027,564 | ||||||||||||
|
|
|
|
|
|
|
|
(a) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S |
73 |
Statements of Changes in Net Assets (continued)
iShares Global Tech ETF |
iShares Global Utilities ETF |
|||||||||||||||||||
|
|
|
|
|||||||||||||||||
Year Ended 03/31/23 |
Year Ended 03/31/22 |
Year Ended 03/31/23 |
Year Ended 03/31/22 |
|||||||||||||||||
|
||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS |
||||||||||||||||||||
OPERATIONS |
||||||||||||||||||||
Net investment income |
$ | 25,012,577 | $ | 26,880,272 | $ | 4,990,892 | $ | 4,609,122 | ||||||||||||
Net realized gain (loss) |
482,657,182 | 1,095,104,060 | (3,520,341 | ) | (1,772,830 | ) | ||||||||||||||
Net change in unrealized appreciation (depreciation) |
(988,068,765 | ) | (517,913,046 | ) | (15,202,838 | ) | 13,096,496 | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net increase (decrease) in net assets resulting from operations |
(480,399,006 | ) | 604,071,286 | (13,732,287 | ) | 15,932,788 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) |
||||||||||||||||||||
Decrease in net assets resulting from distributions to shareholders |
(23,649,568 | ) | (32,243,037 | ) | (5,088,399 | ) | (4,448,043 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
CAPITAL SHARE TRANSACTIONS |
||||||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions |
(1,320,298,332 | ) | (616,406,539 | ) | (25,424,599 | ) | 17,649,357 | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
NET ASSETS |
||||||||||||||||||||
Total increase (decrease) in net assets |
(1,824,346,906 | ) | (44,578,290 | ) | (44,245,285 | ) | 29,134,102 | |||||||||||||
Beginning of year |
5,001,963,077 | 5,046,541,367 | 180,401,669 | 151,267,567 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
End of year |
$ | 3,177,616,171 | $ | 5,001,963,077 | $ | 136,156,384 | $ | 180,401,669 | ||||||||||||
|
|
|
|
|
|
|
|
(a) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
74 |
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 |
(For a share outstanding throughout each period)
iShares Global Comm Services ETF | ||||||||||||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||||||||
Year Ended 03/31/23 |
Year Ended 03/31/22 |
Year Ended 03/31/21 |
Year Ended 03/31/20 |
Year Ended 03/31/19 |
||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of year |
$ | 73.93 | $ | 80.09 | $ | 51.81 | $ | 56.22 | $ | 57.19 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Net investment income(a) |
0.71 | (b) | 0.74 | (b) | 0.66 | 0.78 | 1.82 | |||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss)(c) |
(9.72 | ) | (5.42 | ) | 28.33 | (3.85 | ) | (0.62 | ) | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Net increase (decrease)from investment operations |
(9.01 | ) | (4.68 | ) | 28.99 | (3.07 | ) | 1.20 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Distributions from net investment income(d) |
(0.78 | ) | (1.48 | ) | (0.71 | ) | (1.34 | ) | (2.17 | ) | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Net asset value, end of year |
$ | 64.14 | $ | 73.93 | $ | 80.09 | $ | 51.81 | $ | 56.22 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Total Return(e) |
||||||||||||||||||||||||||||||||||||||||
Based on net asset value |
(12.16 | )%(b) | (6.03 | )%(b) | 56.20 | % | (5.70 | )% | 2.37 | % | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Ratios to Average Net Assets(f) |
||||||||||||||||||||||||||||||||||||||||
Total expenses |
0.42 | % | 0.43 | % | 0.43 | % | 0.46 | % | 0.46 | % | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Total expenses excluding professional fees for foreign withholding tax claims |
0.41 | % | 0.41 | % | N/A | N/A | N/A | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Net investment income |
1.18 | %(b) | 0.89 | %(b) | 0.96 | % | 1.34 | % | 3.28 | % | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Supplemental Data |
||||||||||||||||||||||||||||||||||||||||
Net assets, end of year (000) |
$ | 256,540 | $ | 240,270 | $ | 320,380 | $ | 225,363 | $ | 236,105 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Portfolio turnover rate(g) |
14 | % | 18 | % | 13 | % | 24 | % | 79 | % | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) |
Based on average shares outstanding. |
(b) |
Reflects the positive effect of foreign withholding tax claims, net of the associated professional fees, which resulted in the following increases for the year ended March 31, 2023 and March 31, 2022 respectively: |
• Net investment income per share by $0.03 and $0.10.
• Total return by 0.05% and 0.15%.
• Ratio of net investment income to average net assets by 0.06% and 0.12%.
(c) |
The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) |
Where applicable, assumes the reinvestment of distributions. |
(f) |
Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(g) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
F I N A N C I A L H I G H L I G H T S |
75 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Global Consumer Discretionary ETF | ||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||
Year Ended 03/31/23 |
Year Ended 03/31/22 |
Year Ended 03/31/21 |
Year Ended 03/31/20 |
Year Ended 03/31/19 |
||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||
Net asset value, beginning of year |
$ | 156.03 | $ | 162.55 | $ | 95.12 | $ | 113.27 | $ | 111.45 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Net investment income(a) |
1.58 | (b) | 1.02 | (b) | 1.06 | 1.75 | 1.70 | |||||||||||||||||||||||
Net realized and unrealized gain (loss)(c) |
(11.15 | ) | (5.95 | ) | 67.38 | (18.03 | ) | 1.87 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Net increase (decrease) from investment operations |
(9.57 | ) | (4.93 | ) | 68.44 | (16.28 | ) | 3.57 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Distributions from net investment income(d) |
(1.26 | ) | (1.59 | ) | (1.01 | ) | (1.87 | ) | (1.75 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Net asset value, end of year |
$ | 145.20 | $ | 156.03 | $ | 162.55 | $ | 95.12 | $ | 113.27 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total Return(e) |
||||||||||||||||||||||||||||||
Based on net asset value |
(6.12 | )%(b) | (3.13 | )%(b) | 72.21 | % | (14.71 | )%(f) | 3.32 | % | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Ratios to Average Net Assets(g) |
||||||||||||||||||||||||||||||
Total expenses |
0.41 | % | 0.40 | % | 0.43 | % | 0.46 | % | 0.46 | % | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total expenses excluding professional fees for foreign withholding tax claims |
0.41 | % | 0.40 | % | N/A | N/A | N/A | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Net investment income |
1.17 | %(b) | 0.60 | %(b) | 0.75 | % | 1.47 | % | 1.51 | % | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Supplemental Data |
||||||||||||||||||||||||||||||
Net assets, end of year (000) |
$ | 304,917 | $ | 358,865 | $ | 430,745 | $ | 156,949 | $ | 203,889 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Portfolio turnover rate(h) |
17 | % | 12 | % | 34 | % | 17 | % | 30 | % | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) |
Based on average shares outstanding. |
(b) |
Reflects the positive effect of foreign withholding tax claims, net of the associated professional fees, which resulted in the following increases for the year ended March 31, 2023 and March 31, 2022 respectively: |
• Net investment income per share by $0.01 and $0.03.
• Total return by 0.00% and 0.02%.
• Ratio of net investment income to average net assets by 0.01% and 0.02%.
(c) |
The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) |
Where applicable, assumes the reinvestment of distributions. |
(f) |
Includes payment received from an affiliate, which had no impact on the Fund’s total return. |
(g) |
Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(h) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
76 |
2 0 2 3 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Global Consumer Staples ETF | ||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||
Year Ended | Year Ended |
|
Year Ended |
|
Year Ended |
|
Year Ended |
| ||||||||||||||||||||||
03/31/23 | 03/31/22 | 03/31/21 | 03/31/20 | 03/31/19 | (a) | |||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||
Net asset value, beginning of year |
$ | 62.11 | $ | 58.11 | $ | 47.96 | $ | 51.67 | $ | 50.14 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Net investment income(b) |
1.29 | (c) | 1.37 | 1.34 | 1.18 | 1.20 | ||||||||||||||||||||||||
Net realized and unrealized gain (loss)(d) |
(0.38 | ) | 4.09 | 10.17 | (3.69 | ) | 1.70 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Net increase (decrease) from investment operations |
0.91 | 5.46 | 11.51 | (2.51 | ) | 2.90 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Distributions from net investment income(e) |
(1.18 | ) | (1.46 | ) | (1.36 | ) | (1.20 | ) | (1.37 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Net asset value, end of year |
$ | 61.84 | $ | 62.11 | $ | 58.11 | $ | 47.96 | $ | 51.67 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total Return(f) |
||||||||||||||||||||||||||||||
Based on net asset value |
1.56 | %(c) | 9.42 | % | 24.21 | % | (5.10 | )% | 6.07 | % | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Ratios to Average Net Assets(g) |
||||||||||||||||||||||||||||||
Total expenses |
0.41 | % | 0.40 | % | 0.43 | % | 0.46 | % | 0.46 | % | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total expenses excluding professional fees for foreign withholding tax claims |
0.41 | % | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Net investment income |
2.18 | %(c) | 2.22 | % | 2.46 | % | 2.21 | % | 2.43 | % | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Supplemental Data |
||||||||||||||||||||||||||||||
Net assets, end of year (000) |
$ | 1,536,679 | $ | 1,021,775 | $ | 525,907 | $ | 683,380 | $ | 738,832 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Portfolio turnover rate(h) |
13 | % | 8 | % | 7 | % | 7 | % | 7 | % | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) |
Per share amounts reflect a two-for-one stock split effective after the close of trading on May 1, 2018. |
(b) |
Based on average shares outstanding. |
(c) |
Reflects the positive effect of foreign withholding tax claims, net of the associated professional fees, which resulted in the following increases for the year ended March 31, 2023: |
• Net investment income per share by $0.00.
• Total return by 0.01%.
• Ratio of net investment income to average net assets by 0.01%.
(d) |
The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(e) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(f) |
Where applicable, assumes the reinvestment of distributions. |
(g) |
Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(h) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
F I N A N C I A L H I G H L I G H T S |
77 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Global Energy ETF | ||||||||||||||||||||
|
|
|||||||||||||||||||
Year Ended 03/31/23 |
Year Ended 03/31/22 |
Year Ended 03/31/21 |
Year Ended 03/31/20 |
Year Ended 03/31/19 |
||||||||||||||||
|
||||||||||||||||||||
Net asset value, beginning of year |
$ | 36.12 | $ | 24.63 | $ | 17.06 | $ | 33.70 | $ | 33.91 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net investment income(a) |
1.89 | (b) | 1.22 | 0.94 | 1.13 | 1.11 | ||||||||||||||
Net realized and unrealized gain (loss)(c) |
1.56 | 11.37 | 7.62 | (15.61 | ) | (0.29 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net increase (decrease) from investment operations |
3.45 | 12.59 | 8.56 | (14.48 | ) | 0.82 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Distributions from net investment income(d) |
(1.86 | ) | (1.10 | ) | (0.99 | ) | (2.16 | ) | (1.03 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net asset value, end of year |
$ | 37.71 | $ | 36.12 | $ | 24.63 | $ | 17.06 | $ | 33.70 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Return(e) |
||||||||||||||||||||
Based on net asset value |
9.39 | %(b) | 52.61 | % | 51.36 | % | (45.73 | )% | 2.56 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Ratios to Average Net Assets(f) |
||||||||||||||||||||
Total expenses |
0.44 | % | 0.40 | % | 0.43 | % | 0.46 | % | 0.46 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total expenses excluding professional fees for foreign withholding tax claims |
0.41 | % | N/A | N/A | N/A | N/A | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net investment income |
5.03 | %(b) | 4.33 | % | 4.65 | % | 3.78 | % | 3.17 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Supplemental Data |
||||||||||||||||||||
Net assets, end of year (000) |
$ | 1,798,776 | $ | 2,280,843 | $ | 1,308,021 | $ | 616,818 | $ | 1,031,245 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Portfolio turnover rate(g) |
10 | % | 6 | % | 5 | % | 7 | % | 6 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
(a) |
Based on average shares outstanding. |
(b) |
Reflects the positive effect of foreign withholding tax claims, net of the associated professional fees, which resulted in the following increases for the year ended March 31, 2023: |
• Net investment income per share by $0.07.
• Total return by 0.24%.
• Ratio of net investment income to average net assets by 0.18%.
(c) |
The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) |
Where applicable, assumes the reinvestment of distributions. |
(f) |
Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(g) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
78 |
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 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Global Financials ETF | ||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||
Year Ended 03/31/23 |
Year Ended 03/31/22 |
Year Ended 03/31/21 |
Year Ended 03/31/20 |
Year Ended 03/31/19 |
||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||
Net asset value, beginning of year |
$ | 79.60 | $ | 73.29 | $ | 47.23 | $ | 61.61 | $ | 68.93 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Net investment income(a) |
2.19 | (b) | 1.65 | (b) | 1.36 | 1.71 | 1.84 | |||||||||||||||||||||||
Net realized and unrealized gain (loss)(c) |
(10.01 | ) | 6.01 | 26.09 | (14.12 | ) | (7.38 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Net increase (decrease) from investment operations |
(7.82 | ) | 7.66 | 27.45 | (12.41 | ) | (5.54 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Distributions from net investment income(d) |
(2.61 | ) | (1.35 | ) | (1.39 | ) | (1.97 | ) | (1.78 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Net asset value, end of year |
$ | 69.17 | $ | 79.60 | $ | 73.29 | $ | 47.23 | $ | 61.61 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total Return(e) |
||||||||||||||||||||||||||||||
Based on net asset value |
(9.86 | )%(b)(f) | 10.48 | %(b) | 58.99 | % | (20.99 | )%(g) | (8.02 | )% | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Ratios to Average Net Assets(h) |
||||||||||||||||||||||||||||||
Total expenses |
0.42 | % | 0.40 | % | 0.43 | % | 0.46 | % | 0.46 | % | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total expenses excluding professional fees for foreign withholding tax claims |
0.41 | % | 0.40 | % | 0.43 | % | N/A | 0.46 | % | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Net investment income |
3.12 | %(b) | 2.07 | %(b) | 2.28 | % | 2.66 | % | 2.84 | % | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Supplemental Data |
||||||||||||||||||||||||||||||
Net assets, end of year (000) |
$ | 425,375 | $ | 1,162,145 | $ | 472,743 | $ | 203,073 | $ | 341,918 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Portfolio turnover rate(i) |
13 | % | 12 | % | 4 | % | 7 | % | 7 | % | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) |
Based on average shares outstanding. |
(b) |
Reflects the positive effect of foreign withholding tax claims, net of the associated professional fees, which resulted in the following increases for the year ended March 31, 2023 and March 31, 2022 respectively: |
• Net investment income per share by $0.03 and $0.01.
• Total return by 0.06% and 0.02%.
• Ratio of net investment income to average net assets by 0.04% and 0.01%.
(c) |
The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) |
Where applicable, assumes the reinvestment of distributions. |
(f) |
Includes proceeds received from a class action litigation, which impacted the Fund’s total return. Not including these proceeds, the Fund’s total return would have been (9.92)% for the year ended March 31, 2023. |
(g) |
Includes payment received from an affiliate, which had no impact on the Fund’s total return. |
(h) |
Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(i) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
F I N A N C I A L H I G H L I G H T S |
79 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Global Healthcare ETF | ||||||||||||||||||||||
|
|
|||||||||||||||||||||
|
Year Ended 03/31/23 |
|
|
Year Ended 03/31/22 |
|
|
Year Ended 03/31/21 |
|
Year Ended 03/31/20 |
|
|
Year Ended 03/31/19 |
(a) | |||||||||
|
||||||||||||||||||||||
Net asset value, beginning of year |
$ | 87.41 | $ | 76.96 | $ | 60.95 | $ | 61.13 | $ | 55.61 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net investment income(b) |
1.11 | (c) | 1.07 | 1.02 | 0.96 | 0.92 | ||||||||||||||||
Net realized and unrealized gain (loss)(d) |
(4.11 | ) | 10.39 | 15.96 | (0.16 | ) | 5.80 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net increase (decrease) from investment operations |
(3.00 | ) | 11.46 | 16.98 | 0.80 | 6.72 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Distributions from net investment income(e) |
(0.99 | ) | (1.01 | ) | (0.97 | ) | (0.98 | ) | (1.20 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net asset value, end of year |
$ | 83.42 | $ | 87.41 | $ | 76.96 | $ | 60.95 | $ | 61.13 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total Return(f) |
||||||||||||||||||||||
Based on net asset value |
(3.44 | )%(c) | 14.94 | % | 28.03 | % | 1.23 | % | 12.29 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Ratios to Average Net Assets(g) |
||||||||||||||||||||||
Total expenses |
0.42 | % | 0.40 | % | 0.43 | % | 0.46 | % | 0.46 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total expenses excluding professional fees for foreign withholding tax claims |
0.41 | % | N/A | N/A | N/A | N/A | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net investment income |
1.34 | %(c) | 1.27 | % | 1.41 | % | 1.52 | % | 1.55 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Supplemental Data |
||||||||||||||||||||||
Net assets, end of year (000) |
$ | 4,083,256 | $ | 3,492,005 | $ | 2,705,201 | $ | 1,947,392 | $ | 2,121,287 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Portfolio turnover rate(h) |
3 | % | 4 | % | 5 | % | 5 | % | 8 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) |
Per share amounts reflect a two-for-one stock split effective after the close of trading on May 1, 2018. |
(b) |
Based on average shares outstanding. |
(c) |
Reflects the positive effect of foreign withholding tax claims, net of the associated professional fees, which resulted in the following increases for the year ended March 31, 2023: |
• Net investment income per share by $0.01.
• Total return by 0.01%.
• Ratio of net investment income to average net assets by 0.01%.
(d) |
The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(e) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(f) |
Where applicable, assumes the reinvestment of distributions. |
(g) |
Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(h) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
80 |
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 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Global Industrials ETF | ||||||||||||||||||||
|
|
|||||||||||||||||||
Year Ended 03/31/23 |
Year Ended 03/31/22 |
Year Ended 03/31/21 |
Year Ended 03/31/20 |
Year Ended 03/31/19 |
||||||||||||||||
|
||||||||||||||||||||
Net asset value, beginning of year |
$ | 115.84 | $ | 115.74 | $ | 71.50 | $ | 88.88 | $ | 91.22 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net investment income(a) |
1.77 | (b) | 1.53 | (b) | 1.32 | 1.61 | 1.65 | |||||||||||||
Net realized and unrealized gain (loss)(c) |
(1.65 | ) | 0.32 | 44.27 | (17.32 | ) | (2.27 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net increase (decrease) from investment operations |
0.12 | 1.85 | 45.59 | (15.71 | ) | (0.62 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Distributions from net investment income(d) |
(1.74 | ) | (1.75 | ) | (1.35 | ) | (1.67 | ) | (1.72 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net asset value, end of year |
$ | 114.22 | $ | 115.84 | $ | 115.74 | $ | 71.50 | $ | 88.88 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Return(e) |
||||||||||||||||||||
Based on net asset value |
0.22 | %(b) | 1.54 | %(b) | 64.27 | % | (18.08 | )% | (0.59 | )% | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Ratios to Average Net Assets(f) |
||||||||||||||||||||
Total expenses |
0.42 | % | 0.41 | % | 0.43 | % | 0.46 | % | 0.46 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total expenses excluding professional fees for foreign withholding tax claims |
0.41 | % | 0.40 | % | 0.43 | % | N/A | N/A | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net investment income |
1.69 | %(b) | 1.27 | %(b) | 1.34 | % | 1.75 | % | 1.87 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Supplemental Data |
||||||||||||||||||||
Net assets, end of year (000) |
$ | 336,958 | $ | 376,481 | $ | 422,466 | $ | 146,580 | $ | 217,744 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Portfolio turnover rate(g) |
9 | % | 7 | % | 8 | % | 5 | % | 5 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
(a) |
Based on average shares outstanding. |
(b) |
Reflects the positive effect of foreign withholding tax claims, net of the associated professional fees, which resulted in the following increases for the year ended March 31, 2023 and March 31, 2022 respectively: |
• Net investment income per share by $0.02 and $0.05.
• Total return by 0.01% and 0.05%.
• Ratio of net investment income to average net assets by 0.01% and 0.04%.
(c) |
The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) |
Where applicable, assumes the reinvestment of distributions. |
(f) |
Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(g) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
F I N A N C I A L H I G H L I G H T S |
81 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Global Materials ETF | ||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||
Year Ended 03/31/23 |
Year Ended 03/31/22 |
Year Ended 03/31/21 |
Year Ended 03/31/20 |
Year Ended 03/31/19 |
||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||
Net asset value, beginning of year |
$ | 93.81 | $ | 86.59 | $ | 49.67 | $ | 64.22 | $ | 67.34 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Net investment income(a) |
2.60 | (b) | 3.16 | (b) | 2.07 | 1.54 | 1.91 | |||||||||||||||||||||||
Net realized and unrealized gain (loss)(c) |
(9.00 | ) | 7.23 | 35.84 | (13.63 | ) | (3.44 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Net increase (decrease) from investment operations |
(6.40 | ) | 10.39 | 37.91 | (12.09 | ) | (1.53 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Distributions from net investment income(d) |
(3.80 | ) | (3.17 | ) | (0.99 | ) | (2.46 | ) | (1.59 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Net asset value, end of year |
$ | 83.61 | $ | 93.81 | $ | 86.59 | $ | 49.67 | $ | 64.22 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total Return(e) |
||||||||||||||||||||||||||||||
Based on net asset value |
(6.77 | )%(b) | 12.19 | %(b) | 76.78 | % | (19.66 | )% | (2.14 | )% | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Ratios to Average Net Assets(f) |
||||||||||||||||||||||||||||||
Total expenses |
0.41 | % | 0.40 | % | 0.43 | % | 0.45 | % | 0.46 | % | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total expenses excluding professional fees for foreign withholding tax claims |
0.41 | % | 0.40 | % | N/A | N/A | 0.46 | % | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Net investment income |
3.20 | %(b) | 3.48 | %(b) | 2.76 | % | 2.43 | % | 2.91 | % | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Supplemental Data |
||||||||||||||||||||||||||||||
Net assets, end of year (000) |
$ | 351,170 | $ | 727,028 | $ | 722,999 | $ | 129,132 | $ | 208,704 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Portfolio turnover rate(g) |
9 | % | 6 | % | 4 | % | 12 | % | 11 | % | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) |
Based on average shares outstanding. |
(b) |
Reflects the positive effect of foreign withholding tax claims, net of the associated professional fees, which resulted in the following increases for the year ended March 31, 2023 and March 31, 2022 respectively: |
• Net investment income per share by $0.00 and $0.01.
• Total return by 0.01% and (0.01)%
• Ratio of net investment income to average net assets by 0.00% and 0.01%.
(c) |
The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) |
Where applicable, assumes the reinvestment of distributions. |
(f) |
Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(g) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
82 |
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 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Global Tech ETF | ||||||||||||||||||||
|
|
|||||||||||||||||||
|
Year Ended 03/31/23 |
|
|
Year Ended 03/31/22 |
(a) |
|
Year Ended 03/31/21 |
(a) |
|
Year Ended 03/31/20 |
(a) |
|
Year Ended 03/31/19 |
(a) | ||||||
|
||||||||||||||||||||
Net asset value, beginning of year |
$ | 57.86 | $ | 51.13 | $ | 30.49 | $ | 28.48 | $ | 26.31 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net investment income(b) |
0.37 | (c) | 0.29 | (c) | 0.33 | 0.38 | 0.30 | |||||||||||||
Net realized and unrealized gain (loss)(d) |
(3.51 | ) | 6.81 | 20.62 | 2.00 | 2.10 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net increase (decrease) from investment operations |
(3.14 | ) | 7.10 | 20.95 | 2.38 | 2.40 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Distributions from net investment income(e) |
(0.36 | ) | (0.37 | ) | (0.31 | ) | (0.37 | ) | (0.23 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net asset value, end of year |
$ | 54.36 | $ | 57.86 | $ | 51.13 | $ | 30.49 | $ | 28.48 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Return(f) |
||||||||||||||||||||
Based on net asset value |
(5.34 | )%(c) | 13.89 | %(c) | 68.97 | % | 8.33 | % | 9.19 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Ratios to Average Net Assets(g) |
||||||||||||||||||||
Total expenses |
0.41 | % | 0.40 | % | 0.43 | % | 0.46 | % | 0.46 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total expenses excluding professional fees for foreign withholding tax claims |
0.41 | % | 0.40 | % | 0.43 | % | N/A | 0.46 | % | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net investment income |
0.77 | %(c) | 0.50 | %(c) | 0.75 | % | 1.21 | % | 1.09 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Supplemental Data |
||||||||||||||||||||
Net assets, end of year (000) |
$ | 3,177,616 | $ | 5,001,963 | $ | 5,046,541 | $ | 2,752,872 | $ | 2,819,178 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Portfolio turnover rate(h) |
12 | % | 7 | % | 4 | % | 7 | % | 17 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
(a) |
Per share amounts reflect a six-for-one stock split effective after the close of trading on July 16, 2021. |
(b) |
Based on average shares outstanding. |
(c) |
Reflects the positive effect of foreign withholding tax claims, net of the associated professional fees, which resulted in the following increases for the year ended March 31, 2023 and March 31, 2022 respectively: |
• Net investment income per share by $0.00 and $0.00.
• Total return by 0.01% and 0.01%.
• Ratio of net investment income to average net assets by 0.00% and 0.00%.
(d) |
The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(e) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(f) |
Where applicable, assumes the reinvestment of distributions. |
(g) |
Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(h) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
F I N A N C I A L H I G H L I G H T S |
83 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Global Utilities ETF | ||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||
Year Ended 03/31/23 |
Year Ended 03/31/22 |
Year Ended 03/31/21 |
Year Ended 03/31/20 |
Year Ended 03/31/19 |
||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||
Net asset value, beginning of year |
$ | 65.60 | $ | 60.51 | $ | 50.71 | $ | 54.08 | $ | 48.78 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Net investment income(a) |
1.86 | (b) | 1.81 | 1.71 | 1.62 | 1.78 | ||||||||||||||||||||||||
Net realized and unrealized gain (loss)(c) |
(5.06 | ) | 5.08 | 9.68 | (2.98 | ) | 5.07 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Net increase (decrease) from investment operations |
(3.20 | ) | 6.89 | 11.39 | (1.36 | ) | 6.85 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Distributions from net investment income(d) |
(1.89 | ) | (1.80 | ) | (1.59 | ) | (2.01 | ) | (1.55 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Net asset value, end of year |
$ | 60.51 | $ | 65.60 | $ | 60.51 | $ | 50.71 | $ | 54.08 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total Return(e) |
||||||||||||||||||||||||||||||
Based on net asset value |
(4.93 | )%(b) | 11.59 | % | 22.70 | % | (2.84 | )% | 14.40 | % | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Ratios to Average Net Assets(f) |
||||||||||||||||||||||||||||||
Total expenses |
0.43 | % | 0.42 | % | 0.43 | % | 0.46 | % | 0.46 | % | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total expenses excluding professional fees for foreign withholding tax claims |
0.41 | % | N/A | N/A | N/A | 0.46 | % | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Net investment income |
3.06 | %(b) | 2.91 | % | 3.03 | % | 2.87 | % | 3.53 | % | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Supplemental Data |
||||||||||||||||||||||||||||||
Net assets, end of year (000) |
$ | 136,156 | $ | 180,402 | $ | 151,268 | $ | 152,123 | $ | 208,222 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Portfolio turnover rate(g) |
9 | % | 9 | % | 7 | % | 6 | % | 8 | % | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) |
Based on average shares outstanding. |
(b) |
Reflects the positive effect of foreign withholding tax claims, net of the associated professional fees, which resulted in the following increases for the year ended March 31, 2023: |
• Net investment income per share by $0.06.
• Total return by 0.12%.
• Ratio of net investment income to average net assets by 0.11%.
(c) |
The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) |
Where applicable, assumes the reinvestment of distributions. |
(f) |
Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(g) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
84 |
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 |
1. |
ORGANIZATION |
iShares Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust is organized as a Delaware statutory trust and is authorized to have multiple series or portfolios.
These financial statements relate only to the following funds (each, a “Fund” and collectively, the “Funds”):
iShares ETF | Diversification Classification | |
Global Comm Services |
Non-diversified | |
Global Consumer Discretionary |
Diversified | |
Global Consumer Staples |
Diversified | |
Global Energy |
Non-diversified | |
Global Financials |
Diversified | |
Global Healthcare |
Diversified | |
Global Industrials |
Diversified | |
Global Materials |
Diversified | |
Global Tech |
Non-diversified | |
Global Utilities |
Diversified |
2. |
SIGNIFICANT ACCOUNTING POLICIES |
The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:
Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recorded on the ex-dividend date. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Dividends from foreign securities where the ex-dividend date may have passed are subsequently recorded when the Funds are informed of the ex-dividend date. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Upon notification from issuers or as estimated by management, a portion of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain.
Foreign Currency Translation: Each Fund’s books and records are maintained in U.S. dollars. Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of investments are recorded at the rates of exchange prevailing on the respective dates of such transactions. Generally, when the U.S. dollar rises in value against a foreign currency, the investments denominated in that currency will lose value; the opposite effect occurs if the U.S. dollar falls in relative value.
Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of investments for financial reporting purposes. Accordingly, the effects of changes in exchange rates on investments are not segregated in the Statements of Operations from the effects of changes in market prices of those investments, but are included as a component of net realized and unrealized gain (loss) from investments. Each Fund reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes.
Foreign Taxes: The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its Statements of Operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “Other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of March 31, 2023, if any, are disclosed in the Statements of Assets and Liabilities.
The Funds file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. The Funds may record a reclaim receivable based on collectability, which includes factors such as the jurisdiction’s applicable laws, payment history and market convention. The Statements of Operations includes tax reclaims recorded as well as professional and other fees, if any, associated with recovery of foreign withholding taxes.
Collateralization: If required by an exchange or counterparty agreement, the Funds may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments.
In-kind Redemptions: For financial reporting purposes, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or net asset value (“NAV”) per share.
N O T E S T O F I N A N C I A L S T A T E M E N T S |
85 |
Notes to Financial Statements (continued)
Distributions: Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.
Indemnifications: In the normal course of business, each Fund enters into contracts that contain a variety of representations that provide general indemnification. The Funds’ maximum exposure under these arrangements is unknown because it involves future potential claims against the Funds, which cannot be predicted with any certainty.
3. |
INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS |
Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Board of Trustees of the Trust (the “Board”) of each Fund has approved the designation of BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, as the valuation designee for each Fund. Each Fund determines the fair values of its financial instruments using various independent dealers or pricing services under BFA’s policies. If a security’s market price is not readily available or does not otherwise accurately represent the fair value of the security, the security will be valued in accordance with BFA’s policies and procedures as reflecting fair value. BFA has formed a committee (the “Valuation Committee”) to develop pricing policies and procedures and to oversee the pricing function for all financial instruments, with assistance from other BlackRock pricing committees.
Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:
• |
Equity investments traded on a recognized securities exchange are valued at that day’s official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price. |
• |
Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published NAV. |
• |
Futures contracts are valued based on that day’s last reported settlement or trade price on the exchange where the contract is traded. |
Generally, trading in foreign instruments is substantially completed each day at various times prior to the close of trading on the New York Stock Exchange (“NYSE”).Each business day, the Funds use current market factors supplied by independent pricing services to value certain foreign instruments (“Systematic Fair Value Price”).The Systematic Fair Value Price is designed to value such foreign securities at fair value as of the close of trading on the NYSE, which follows the close of the local markets.
If events (e.g., market volatility, company announcement or a natural disaster) occur that are expected to materially affect the value of such investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Valuation Committee, in accordance with BFA’s policies and procedures as reflecting fair value (“Fair Valued Investments”).The fair valuation approaches that may be used by the Valuation Committee include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Valuation Committee seeks to determine the price that each Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Valuation Committee deems relevant and consistent with the principles of fair value measurement.
Fair value pricing could result in a difference between the prices used to calculate a fund’s NAV and the prices used by the fund’s underlying index, which in turn could result in a difference between the fund’s performance and the performance of the fund’s underlying index.
Fair Value Hierarchy: Various inputs are used in determining the fair value of financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:
• |
Level 1 – Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that each Fund has the ability to access; |
• |
Level 2 – Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs); and |
• |
Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, (including the Valuation Committee’s assumptions used in determining the fair value of financial instruments). |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds that may not have a secondary market and/or may have a limited number of investors. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.
86 |
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 |
Notes to Financial Statements (continued)
4. |
SECURITIES AND OTHER INVESTMENTS |
Securities Lending: Each Fund may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by an approved bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund or excess collateral is returned by the Fund, on the next business day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.
As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested in money market funds managed by BFA, or its affiliates is disclosed in the Schedule of Investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan, if any, are also disclosed in each Fund’s Schedule of Investments. The market value of any securities on loan and the value of any related cash collateral are disclosed in the Statements of Assets and Liabilities.
Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (each, an “MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the Funds, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the Funds can reinvest cash collateral received in connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell or re-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.
As of period end, the following table is a summary of the securities on loan by counterparty which are subject to offset under an MSLA:
|
||||||||||||||||
iShares ETF and Counterparty | |
Securities Loaned at Value |
|
|
Cash Collateral Received |
(a) |
|
Non-Cash Collateral Received, at Fair Value |
(a) |
Net Amount | ||||||
|
||||||||||||||||
Global Comm Services |
||||||||||||||||
BofA Securities, Inc. |
$ | 13,800 | $ | (13,800 | ) | $ | — | $ | — | |||||||
Goldman Sachs &Co. LLC |
10,593 | (10,593 | ) | — | — | |||||||||||
J.P. Morgan Securities LLC |
13,940 | (13,940 | ) | — | — | |||||||||||
Morgan Stanley |
974,131 | (974,131 | ) | — | — | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 1,012,464 | $ | (1,012,464 | ) | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Global Consumer Discretionary |
||||||||||||||||
Citigroup Global Markets Inc. |
$ | 481,264 | $ | (466,777 | ) | $ | — | $ | 14,487 | (b) | ||||||
Nomura Securities International, Inc. |
123,830 | (123,830 | ) | — | — | |||||||||||
TD Prime Services LLC |
69,229 | (67,307 | ) | — | 1,922 | (b) | ||||||||||
UBS AG |
790,073 | (787,315 | ) | — | 2,758 | (b) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 1,464,396 | $ | (1,445,229 | ) | $ | — | $ | 19,167 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Global Financials |
||||||||||||||||
BofA Securities, Inc. |
$ | 10,218 | $ | (10,218 | ) | $ | — | $ | — | |||||||
Citigroup Global Markets Inc. |
557,959 | (557,959 | ) | — | — | |||||||||||
J.P. Morgan Securities LLC |
60,990 | (60,990 | ) | — | — | |||||||||||
UBS AG |
133,954 | (133,954 | ) | — | — | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 763,121 | $ | (763,121 | ) | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Global Healthcare |
||||||||||||||||
BofA Securities, Inc. |
$ | 936,215 | $ | (936,215 | ) | $ | — | $ | — | |||||||
Citigroup Global Markets, Inc. |
16,638,303 | (16,638,303 | ) | — | — | |||||||||||
J.P. Morgan Securities LLC |
6,854,059 | (6,854,059 | ) | — | — | |||||||||||
Morgan Stanley & Co. LLC |
3,878,639 | (3,878,639 | ) | — | — | |||||||||||
Virtu Americas LLC |
243,978 | (243,978 | ) | — | — | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 28,551,194 | $ | (28,551,194 | ) | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
|
N O T E S T O F I N A N C I A L S T A T E M E N T S |
87 |
Notes to Financial Statements (continued)
|
||||||||||||||||
iShares ETF and Counterparty | |
Securities Loaned at Value |
|
|
Cash Collateral Received |
(a) |
|
Non-Cash Collateral Received, at Fair Value |
(a) |
Net Amount | ||||||
|
||||||||||||||||
Global Industrials |
||||||||||||||||
BNP Paribas Prime Brokerage International Ltd. |
$ | 264,012 | $ | (264,012 | ) | $ | — | $ | — | |||||||
J.P. Morgan Securities LLC |
1,439,970 | (1,439,970 | ) | — | — | |||||||||||
Morgan Stanley |
1,837,809 | (1,837,676 | ) | — | 133 | (b) | ||||||||||
UBS Securities LLC |
56,197 | (56,197 | ) | — | — | |||||||||||
Wells Fargo Bank N.A. |
207,438 | (207,438 | ) | — | — | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 3,805,426 | $ | (3,805,293 | ) | $ | — | $ | 133 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Global Materials |
||||||||||||||||
Citigroup Global Markets Inc. |
$ | 1,611,959 | $ | (1,611,959 | ) | $ | — | $ | — | |||||||
|
|
|
|
|
|
|
|
|||||||||
Global Tech |
||||||||||||||||
Goldman Sachs & Co. LLC |
$ | 3,725,819 | $ | (3,710,104 | ) | $ | — | $ | 15,715 | (b) | ||||||
Morgan Stanley |
2,600,335 | (2,553,766 | ) | — | 46,569 | (b) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 6,326,154 | $ | (6,263,870 | ) | $ | — | $ | 62,284 | ||||||||
|
|
|
|
|
|
|
|
(a) |
Collateral received, if any, in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Fund’s Statements of Assets and Liabilities. |
(b) |
The market value of the loaned securities is determined as of March 31, 2023. Additional collateral is delivered to the Fund on the next business day in accordance with the MSLA. The net amount would be subject to the borrower default indemnity in the event of default by a counterparty. |
The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, each Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned to the extent the collateral received does not cover the value of the securities loaned in the event of borrower default. Each Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by each Fund.
5. |
DERIVATIVE FINANCIAL INSTRUMENTS |
Futures Contracts: Futures contracts are purchased or sold to gain exposure to, or manage exposure to, changes in interest rates (interest rate risk) and changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk).
Futures contracts are exchange-traded agreements between the Funds and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, the Funds are required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Amounts pledged, which are considered restricted, are included in cash pledged for futures contracts in the Statements of Assets and Liabilities.
Securities deposited as initial margin are designated in the Schedule of Investments and cash deposited, if any, are shown as cash pledged for futures contracts in the Statements of Assets and Liabilities. Pursuant to the contract, the Funds agree to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as variation margin receivable (or payable) on futures contracts in the Statements of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statements of Operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest rates, foreign currency exchange rates or underlying assets.
6. |
INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES |
Investment Advisory Fees: Pursuant to an Investment Advisory Agreement with the Trust, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent trustees).
88 |
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 |
Notes to Financial Statements (continued)
For its investment advisory services to each Fund, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, based on each Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds as follows:
Aggregate Average Daily Net Assets | Investment Advisory Fees | |||
First $10 billion |
0.4800% | |||
Over $10 billion, up to and including $20 billion |
0.4300 | |||
Over $20 billion, up to and including $30 billion |
0.3800 | |||
Over $30 billion, up to and including $40 billion |
0.3420 | |||
Over $40 billion |
0.3078 |
Distributor: BlackRock Investments, LLC, an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.
Securities Lending: The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending, including any custodial costs. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan (the “collateral investment fees”). The cash collateral is invested in a money market fund, BlackRock Cash Funds: Institutional or BlackRock Cash Funds: Treasury, managed by BFA, or its affiliates. However, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04%. The SL Agency Shares of such money market fund will not be subject to a sales load, distribution fee or service fee. The money market fund in which the cash collateral has been invested may, under certain circumstances, impose a liquidity fee of up to 2% of the value redeemed or temporarily restrict redemptions for up to 10 business days during a 90 day period, in the event that the money market fund’s weekly liquid assets fall below certain thresholds.
Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment fees. Each Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.
Pursuant to the current securities lending agreement, each of iShares Global Healthcare ETF and iShares Global Tech ETF (the “Group 1 Funds”), retains 81% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
Pursuant to the current securities lending agreement, each of iShares Global Comm Services ETF, iShares Global Consumer Discretionary ETF, iShares Global Consumer Staples ETF, iShares Global Energy ETF, iShares Global Financials ETF, iShares Global Industrials ETF, iShares Global Materials ETF and iShares Global Utilities ETF (the “Group 2 Funds”), retains 82% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in a given calendar year exceeds a specified threshold: (1) each Group 1 Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year 81% of securities lending income (which excludes collateral investment fees), and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees, and (2) each Group 2 Fund will retain for the remainder of that calendar year 85% of securities lending income (which excludes collateral investment fees), and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
The share of securities lending income earned by each Fund is shown as securities lending income – affiliated – net in its Statements of Operations. For the year ended March 31, 2023, the Funds paid BTC the following amounts for securities lending agent services:
iShares ETF | Amounts | |||
Global Comm Services |
$ | 3,103 | ||
Global Consumer Discretionary |
4,017 | |||
Global Consumer Staples |
2,630 | |||
Global Energy |
1,459 | |||
Global Financials |
2,211 | |||
Global Healthcare |
18,294 | |||
Global Industrials |
4,438 | |||
Global Materials |
1,447 | |||
Global Tech |
23,528 | |||
Global Utilities |
402 |
Officers and Trustees: Certain officers and/or trustees of the Trust are officers and/or trustees of BlackRock or its affiliates.
N O T E S T O F I N A N C I A L S T A T E M E N T S |
89 |
Notes to Financial Statements (continued)
Other Transactions: Cross trading is the buying or selling of portfolio securities between funds to which BFA (or an affiliate) serves as investment adviser. At its regularly scheduled quarterly meetings, the Board reviews such transactions as of the most recent calendar quarter for compliance with the requirements and restrictions set forth by Rule 17a-7.
For the year ended March 31, 2023, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:
iShares ETF | Purchases | Sales | Net Realized Gain (Loss) |
|||||||||
Global Comm Services |
$ | 9,635,480 | $ | 7,713,786 | $ | (4,889,566) | ||||||
Global Consumer Discretionary |
21,053,573 | 22,101,806 | (6,882,298) | |||||||||
Global Consumer Staples |
56,729,191 | 52,510,037 | (7,946,863) | |||||||||
Global Energy |
39,702,884 | 19,999,537 | (3,100,559) | |||||||||
Global Financials |
58,888,933 | 21,508,660 | (7,361,695) | |||||||||
Global Healthcare |
37,288,686 | 16,537,438 | (4,397,647) | |||||||||
Global Industrials |
12,313,240 | 7,786,297 | (1,665,196) | |||||||||
Global Materials |
2,705,856 | 1,888,509 | (353,981) | |||||||||
Global Tech |
136,398,411 | 92,127,955 | (15,910,045) | |||||||||
Global Utilities |
1,742,638 | 2,673,424 | (268,040) |
Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is shown as dividends – affiliated in the Statements of Operations.
A fund, in order to improve its portfolio liquidity and its ability to track its underlying index, may invest in shares of other iShares funds that invest in securities in the fund’s underlying index.
7. |
PURCHASES AND SALES |
For the year ended March 31, 2023, purchases and sales of investments, excluding short-term securities and in-kind transactions, were as follows:
iShares ETF | Purchases | Sales | ||||||
Global Comm Services |
$ | 62,342,905 | $ | 34,070,596 | ||||
Global Consumer Discretionary |
69,198,508 | 52,005,291 | ||||||
Global Consumer Staples |
200,458,773 | 168,413,717 | ||||||
Global Energy |
221,729,681 | 200,907,977 | ||||||
Global Financials |
94,731,662 | 126,660,891 | ||||||
Global Healthcare |
172,949,792 | 118,330,697 | ||||||
Global Industrials |
29,164,601 | 30,413,435 | ||||||
Global Materials |
35,257,104 | 45,598,934 | ||||||
Global Tech |
380,467,509 | 505,345,193 | ||||||
Global Utilities |
15,160,957 | 15,602,331 |
For the year ended March 31, 2023, in-kind transactions were as follows:
iShares ETF |
In-kind Purchases |
In-kind Sales |
||||||
Global Comm Services |
$ | 252,707,040 | $ | 233,615,935 | ||||
Global Consumer Discretionary |
233,215,003 | 272,950,242 | ||||||
Global Consumer Staples |
570,444,867 | 101,258,337 | ||||||
Global Energy |
335,965,915 | 922,713,757 | ||||||
Global Financials |
91,246,118 | 659,285,219 | ||||||
Global Healthcare |
1,287,014,220 | 590,715,231 | ||||||
Global Industrials |
92,097,600 | 118,323,889 | ||||||
Global Materials |
60,859,404 | 326,732,320 | ||||||
Global Tech |
150,284,430 | 1,345,218,499 | ||||||
Global Utilities |
31,805,563 | 56,894,342 |
8. |
INCOME TAX INFORMATION |
Each Fund is treated as an entity separate from the Trust’s other funds for federal income tax purposes. It is each Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required.
90 |
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 |
Notes to Financial Statements (continued)
Management has analyzed tax laws and regulations and their application to the Funds as of March 31, 2023, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.
U.S. GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or NAV per share. As of March 31, 2023, permanent differences attributable to realized gains (losses) from in-kind redemptions were reclassified to the following accounts:
iShares ETF | Paid-in Capital | Accumulated Earnings (Loss) |
||||||
Global Comm Services |
$ | 3,897,809 | $ | (3,897,809 | ) | |||
Global Consumer Discretionary |
2,506,102 | (2,506,102 | ) | |||||
Global Consumer Staples |
23,909,655 | (23,909,655 | ) | |||||
Global Energy |
238,834,101 | (238,834,101 | ) | |||||
Global Financials |
(67,299,383 | ) | 67,299,383 | |||||
Global Healthcare |
263,096,123 | (263,096,123 | ) | |||||
Global Industrials |
(1,837,266 | ) | 1,837,266 | |||||
Global Materials |
(10,685,562 | ) | 10,685,562 | |||||
Global Tech |
544,535,867 | (544,535,867 | ) | |||||
Global Utilities |
380,667 | (380,667 | ) |
The tax character of distributions paid was as follows:
|
||||||||||
iShares ETF |
Year Ended 03/31/23 |
Year Ended 03/31/22 |
||||||||
|
||||||||||
Global Comm Services |
||||||||||
Ordinary income |
$ | 2,680,016 | $ | 5,514,816 | ||||||
|
|
|
|
|||||||
Global Consumer Discretionary |
||||||||||
Ordinary income |
$ | 3,272,046 | $ | 4,140,498 | ||||||
|
|
|
|
|||||||
Global Consumer Staples |
||||||||||
Ordinary income |
$ | 24,794,345 | $ | 15,010,694 | ||||||
|
|
|
|
|||||||
Global Energy |
||||||||||
Ordinary income |
$ | 103,333,626 | $ | 64,194,482 | ||||||
|
|
|
|
|||||||
Global Financials |
||||||||||
Ordinary income |
$ | 27,379,101 | $ | 47,722,673 | ||||||
|
|
|
|
|||||||
Global Healthcare |
||||||||||
Ordinary income |
$ | 46,042,619 | $ | 39,505,134 | ||||||
|
|
|
|
|||||||
Global Industrials |
||||||||||
Ordinary income |
$ | 5,234,413 | $ | 6,438,398 | ||||||
|
|
|
|
|||||||
Global Materials |
||||||||||
Ordinary income |
$ | 22,752,409 | $ | 25,613,809 | ||||||
|
|
|
|
|||||||
Global Tech |
||||||||||
Ordinary income |
$ | 23,649,568 | $ | 32,243,037 | ||||||
|
|
|
|
|||||||
Global Utilities |
||||||||||
Ordinary income |
$ | 5,088,399 | $ | 4,448,043 | ||||||
|
|
|
|
As of March 31, 2023, the tax components of accumulated net earnings (losses) were as follows:
iShares ETF | |
Undistributed Ordinary Income |
|
|
Non-expiring Capital Loss |
|
|
Net Unrealized Gains (Losses) |
(b) |
Total | ||||||
Global Comm Services |
$ | 1,365,043 | $ | (117,568,119 | ) | $ | (33,682,689 | ) | $ | (149,885,765 | ) | |||||
Global Consumer Discretionary |
806,005 | (37,746,038 | ) | (43,340,838 | ) | (80,280,871 | ) | |||||||||
Global Consumer Staples |
7,089,189 | (44,421,053 | ) | 53,272,063 | 15,940,199 | |||||||||||
Global Energy |
17,883,069 | (222,017,490 | ) | 80,737,470 | (123,396,951 | ) | ||||||||||
Global Financials |
2,951,220 | (141,359,570 | ) | (69,285,144 | ) | (207,693,494 | ) | |||||||||
Global Healthcare |
19,971,237 | (86,791,650 | ) | 458,479,257 | 391,658,844 | |||||||||||
Global Industrials |
2,754,797 | (32,099,046 | ) | (17,811,483 | ) | (47,155,732 | ) | |||||||||
Global Materials |
3,007,939 | (96,368,567 | ) | (50,888,995 | ) | (144,249,623 | ) | |||||||||
Global Tech |
5,666,366 | (116,952,012 | ) | 622,873,858 | 511,588,212 | |||||||||||
Global Utilities |
841,472 | (46,525,570 | ) | (19,145,662 | ) | (64,829,760 | ) |
N O T E S T O F I N A N C I A L S T A T E M E N T S |
91 |
Notes to Financial Statements (continued)
(a) |
Amounts available to offset future realized capital gains. |
(b) |
The difference between book-basis and tax-basis unrealized gains (losses) was attributable primarily to the tax deferral of losses on wash sales, the realization for tax purposes of unrealized gains (losses) on certain futures contracts, the timing and recognition of partnership income, the characterization of corporate actions and the realization for tax purposes of unrealized gains on investments in passive foreign investment companies. |
A fund may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” Such fund may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.
As of March 31, 2023, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:
iShares ETF | Tax Cost |
Gross Unrealized Appreciation |
Gross Unrealized Depreciation |
Net Unrealized Appreciation (Depreciation) |
||||||||||||
Global Comm Services |
$ | 291,046,107 | $ | 6,137,545 | $ | (39,820,452 | ) | $ | (33,682,907 | ) | ||||||
Global Consumer Discretionary |
348,946,477 | 13,183,219 | (56,520,744 | ) | (43,337,525 | ) | ||||||||||
Global Consumer Staples |
1,476,032,546 | 109,253,235 | (55,997,337 | ) | 53,255,898 | |||||||||||
Global Energy |
1,711,767,217 | 202,087,793 | (121,349,143 | ) | 80,738,650 | |||||||||||
Global Financials |
492,260,581 | 12,768,548 | (82,030,536 | ) | (69,261,988 | ) | ||||||||||
Global Healthcare |
3,642,815,858 | 663,603,606 | (205,170,814 | ) | 458,432,792 | |||||||||||
Global Industrials |
356,999,134 | 21,532,199 | (39,341,406 | ) | (17,809,207 | ) | ||||||||||
Global Materials |
401,178,557 | 16,613,775 | (67,500,962 | ) | (50,887,187 | ) | ||||||||||
Global Tech |
2,556,098,314 | 746,765,285 | (123,890,203 | ) | 622,875,082 | |||||||||||
Global Utilities |
154,956,396 | 4,262,418 | (23,406,316 | ) | (19,143,898 | ) |
9. |
LINE OF CREDIT |
The iShares Global Comm Services ETF, iShares Global Consumer Discretionary ETF, iShares Global Consumer Staples ETF, iShares Global Energy ETF, iShares Global Financials ETF, iShares Global Industrials ETF, iShares Global Materials ETF, iShares Global Tech ETF and iShares Global Utilities ETF, along with certain other iShares funds (“Participating Funds”), are parties to a $800 million credit agreement (“Syndicated Credit Agreement”) with a group of lenders, which expires on August 11, 2023. The line of credit may be used for temporary or emergency purposes, including redemptions, settlement of trades and rebalancing of portfolio holdings in certain target markets. The Funds may borrow up to the aggregate commitment amount subject to asset coverage and other limitations as specified in the Syndicated Credit Agreement. The Syndicated Credit Agreement has the following terms: a commitment fee of 0.15% per annum on the unused portion of the credit agreement and interest at a rate equal to the higher of (a) Daily Simple Secured Overnight Financing Rate (“SOFR”) plus 0.10% and 1.00% per annum or (b) the U.S. Federal Funds rate plus 1.00% per annum on amounts borrowed. The commitment fee is generally allocated to each Participating Fund based on the lesser of a Participating Fund’s relative exposure to certain target markets or a Participating Fund’s maximum borrowing amount as set forth by the terms of the Syndicated Credit Agreement.
During the year ended March 31, 2023, the Funds did not borrow under the Syndicated Credit Agreement.
10. |
PRINCIPAL RISKS |
In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Funds and their investments. Each Fund’s prospectus provides details of the risks to which the Fund is subject.
BFA uses a “passive” or index approach to try to achieve each Fund’s investment objective following the securities included in its underlying index during upturns as well as downturns. BFA does not take steps to reduce market exposure or to lessen the effects of a declining market. Divergence from the underlying index and the composition of the portfolio is monitored by BFA.
The Funds may be exposed to additional risks when reinvesting cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00, which may be subject to redemption gates or liquidity fees under certain circumstances.
Infectious Illness Risk: An outbreak of an infectious illness, such as the COVID-19 pandemic, may adversely impact the economies of many nations and the global economy, and may impact individual issuers and capital markets in ways that cannot be foreseen. An infectious illness outbreak may result in, among other things, closed international borders, prolonged quarantines, supply chain disruptions, market volatility or disruptions and other significant economic, social and political impacts.
Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. A fund may invest in illiquid investments. An illiquid investment is any investment that a fund reasonably expects cannot be sold or disposed of in current market
92 |
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 |
Notes to Financial Statements (continued)
conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. A fund may experience difficulty in selling illiquid investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause a fund’s NAV to experience significant increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of a fund may lose value, regardless of the individual results of the securities and other instruments in which a fund invests.
The price each Fund could receive upon the sale of any particular portfolio investment may differ from each Fund’s valuation of the investment, particularly for securities that trade in thin or volatile markets or that are valued using a fair valuation technique or a price provided by an independent pricing service. Changes to significant unobservable inputs and assumptions (i.e., publicly traded company multiples, growth rate, time to exit) due to the lack of observable inputs.
Counterparty Credit Risk: The Funds may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions, including making timely interest and/or principal payments or otherwise honoring its obligations. The Funds manage counterparty credit risk by entering into transactions only with counterparties that BFA believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Funds to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Funds’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statements of Assets and Liabilities, less any collateral held by the Funds.
A derivative contract may suffer a mark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.
With exchange-traded futures, there is less counterparty credit risk to the Funds since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, a fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Funds.
Concentration Risk: A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its Schedule of Investments.
Certain Funds invest a significant portion of their assets in securities of issuers located in Europe or with significant exposure to European issuers or countries. The European financial markets have recently experienced volatility and adverse trends due to concerns about economic downturns in, or rising government debt levels of, several European countries as well as acts of war in the region. These events may spread to other countries in Europe and may affect the value and liquidity of certain of the Funds’ investments.
Responses to the financial problems by European governments, central banks and others, including austerity measures and reforms, may not work, may result in social unrest and may limit future growth and economic recovery or have other unintended consequences. Further defaults or restructurings by governments and others of their debt could have additional adverse effects on economies, financial markets and asset valuations around the world. The United Kingdom has withdrawn from the European Union, and one or more other countries may withdraw from the European Union and/or abandon the Euro, the common currency of the European Union. These events and actions have adversely affected, and may in the future adversely affect the value and exchange rate of the Euro and may continue to significantly affect the economies of every country in Europe, including countries that do not use the Euro and non-European Union member states. The impact of these actions, especially if they occur in a disorderly fashion, is not clear but could be significant and far reaching. In addition, Russia launched a large-scale invasion of Ukraine on February 24, 2022. The extent and duration of the military action, resulting sanctions and resulting future market disruptions in the region are impossible to predict, but have been, and may continue to be significant and have a severe adverse effect on the region, including significant negative impacts on the economy and the markets for certain securities and commodities, such as oil and natural gas, as well as other sectors.
Certain Funds invest a significant portion of their assets in securities within a single or limited number of market sectors. When a fund concentrates its investments in this manner, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.
Significant Shareholder Redemption Risk: Certain shareholders may own or manage a substantial amount of fund shares and/or hold their fund investments for a limited period of time. Large redemptions of fund shares by these shareholders may force a fund to sell portfolio securities, which may negatively impact the fund’s NAV, increase the fund’s brokerage costs, and/or accelerate the realization of taxable income/gains and cause the fund to make additional taxable distributions to shareholders.
11. |
CAPITAL SHARE TRANSACTIONS |
Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable.
N O T E S T O F I N A N C I A L S T A T E M E N T S |
93 |
Notes to Financial Statements (continued)
Transactions in capital shares were as follows:
|
||||||||||||||||||||
Year Ended 03/31/23 |
Year Ended 03/31/22 |
|||||||||||||||||||
|
|
|
|
|||||||||||||||||
iShares ETF | Shares | Amount | Shares | Amount | ||||||||||||||||
|
||||||||||||||||||||
Global Comm Services |
||||||||||||||||||||
Shares sold |
5,000,000 | $ | 285,678,262 | 2,400,000 | $ | 180,066,363 | ||||||||||||||
Shares redeemed |
(4,250,000 | ) | (239,036,433 | ) | (3,150,000 | ) | (237,607,503 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
750,000 | $ | 46,641,829 | (750,000 | ) | $ | (57,541,140 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Global Consumer Discretionary |
||||||||||||||||||||
Shares sold |
1,950,000 | $ | 257,608,569 | 1,350,000 | $ | 226,608,040 | ||||||||||||||
Shares redeemed |
(2,150,000 | ) | (280,455,814 | ) | (1,700,000 | ) | (269,624,156 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
(200,000 | ) | $ | (22,847,245 | ) | (350,000 | ) | $ | (43,016,116 | ) | |||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Global Consumer Staples |
||||||||||||||||||||
Shares sold |
10,150,000 | $ | 606,139,893 | 9,150,000 | $ | 571,394,685 | ||||||||||||||
Shares redeemed |
(1,750,000 | ) | (103,585,196 | ) | (1,750,000 | ) | (107,384,488 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
8,400,000 | $ | 502,554,697 | 7,400,000 | $ | 464,010,197 | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Global Energy |
||||||||||||||||||||
Shares sold |
10,350,000 | $ | 380,017,898 | 46,650,000 | $ | 1,309,027,739 | ||||||||||||||
Shares redeemed |
(25,800,000 | ) | (945,635,510 | ) | (36,600,000 | ) | (971,697,280 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
(15,450,000 | ) | $ | (565,617,612 | ) | 10,050,000 | $ | 337,330,459 | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Global Financials |
||||||||||||||||||||
Shares sold |
1,500,000 | $ | 109,276,663 | 42,650,000 | $ | 3,390,727,688 | ||||||||||||||
Shares redeemed |
(9,950,000 | ) | (707,485,329 | ) | (34,500,000 | ) | (2,724,056,927 | ) | ||||||||||||
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(8,450,000 | ) | $ | (598,208,666 | ) | 8,150,000 | $ | 666,670,761 | |||||||||||||
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Global Healthcare |
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Shares sold |
16,250,000 | $ | 1,349,795,290 | 6,950,000 | $ | 589,227,954 | ||||||||||||||
Shares redeemed |
(7,250,000 | ) | (599,437,224 | ) | (2,150,000 | ) | (181,413,413 | ) | ||||||||||||
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9,000,000 | $ | 750,358,066 | 4,800,000 | $ | 407,814,541 | |||||||||||||||
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Global Industrials |
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Shares sold |
900,000 | $ | 96,114,001 | 800,000 | $ | 96,528,258 | ||||||||||||||
Shares redeemed |
(1,200,000 | ) | (123,290,052 | ) | (1,200,000 | ) | (142,237,357 | ) | ||||||||||||
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(300,000 | ) | $ | (27,176,051 | ) | (400,000 | ) | $ | (45,709,099 | ) | |||||||||||
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Global Materials |
||||||||||||||||||||
Shares sold |
800,000 | $ | 67,400,271 | 3,650,000 | $ | 336,899,964 | ||||||||||||||
Shares redeemed |
(4,350,000 | ) | (340,974,094 | ) | (4,250,000 | ) | (383,190,984 | ) | ||||||||||||
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(3,550,000 | ) | $ | (273,573,823 | ) | (600,000 | ) | $ | (46,291,020 | ) | |||||||||||
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Global Tech |
||||||||||||||||||||
Shares sold |
3,700,000 | $ | 189,510,660 | 27,900,000 | (a) | $ | 1,627,576,238 | |||||||||||||
Shares redeemed |
(31,700,000 | ) | (1,509,808,992 | ) | (40,150,000 | )(a) | (2,243,982,777 | ) | ||||||||||||
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(28,000,000 | ) | $ | (1,320,298,332 | ) | (12,250,000 | ) | $ | (616,406,539 | ) | |||||||||||
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Global Utilities |
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Shares sold |
500,000 | $ | 32,654,633 | 1,050,000 | $ | 66,190,402 | ||||||||||||||
Shares redeemed |
(1,000,000 | ) | (58,079,232 | ) | (800,000 | ) | (48,541,045 | ) | ||||||||||||
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(500,000 | ) | $ | (25,424,599 | ) | 250,000 | $ | 17,649,357 | |||||||||||||
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(a) |
Share transactions reflect a six-for-one stock split effective after the close of trading on July 16, 2021. |
The consideration for the purchase of Creation Units of a fund in the Trust generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Trust may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to State Street Bank and Trust Company, the Trust’s administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in shares sold in the table above.
From time to time, settlement of securities related to in-kind contributions or in-kind redemptions may be delayed. In such cases, securities related to in-kind transactions are reflected as a receivable or a payable in the Statements of Assets and Liabilities.
94 |
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 |
Notes to Financial Statements (continued)
12. |
FOREIGN WITHHOLDING TAX CLAIMS |
The iShares Global Comm Services ETF, iShares Global Consumer Discretionary ETF, iShares Global Consumer Staples ETF, iShares Global Financials ETF, iShares Global Industrials ETF, iShares Global Materials ETF, and iShares Global Tech ETF, and have filed claims to recover taxes withheld by Sweden on dividend income based upon certain provisions in the Treaty on the Functioning of the European Union. The Funds have recorded a receivable for all recoverable taxes withheld by Sweden based upon determinations made by Swedish tax authorities. Professional and other fees associated with the filing of tax claims in Sweden that result in the recovery of foreign withholding taxes have been approved by the Board as appropriate expenses of the Funds. The Funds continue to evaluate developments in Sweden, for potential impacts to the receivables and associated professional fees payable. Swedish tax claims receivable and related liabilities are disclosed in the Statements of Assets and Liabilities. Collection of this receivable, and any subsequent payment of associated liabilities, depends upon determinations made by Swedish tax authorities.
The iShares Global Comm Services ETF, iShares Global Energy ETF and iShares Global Financials ETF are seeking, or are expected to seek, a closing agreement with the Internal Revenue Service (“IRS”) to address any prior years’ U.S. income tax liabilities attributable to Fund shareholders resulting from the recovery of foreign taxes. The closing agreement would result in the Funds paying a compliance fee to the IRS, on behalf of its shareholders, representing the estimated tax savings generated from foreign tax credits claimed by Fund shareholders on their tax returns in prior years. The Funds have accrued a liability for the estimated IRS compliance fee related to foreign withholding tax claims, which is disclosed in the Statements of Assets and Liabilities. The actual IRS compliance fee may differ from the estimate and that difference may be material.
13. |
SUBSEQUENT EVENTS |
Management’s evaluation of the impact of all subsequent events on the Funds’ financial statements was completed through the date the financial statements were available to be issued and the following items were noted:
On February 16, 2023, the Board approved a proposal to change iShares Global Energy ETF’s index to S&P Global 1200 Energy 4.5/22.5/45 Capped Index and iShares Global Tech ETF’s index to S&P Global 1200 Information Technology 4.5/22.5/45 Capped Index. These changes became effective on April 20, 2023.
N O T E S T O F I N A N C I A L S T A T E M E N T S |
95 |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of
iShares Trust and Shareholders of each of the ten funds listed in the table below
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of each of the funds listed in the table below (ten of the funds constituting iShares Trust, hereafter collectively referred to as the “Funds”) as of March 31, 2023, the related statements of operations for the year ended March 31, 2023, the statements of changes in net assets for each of the two years in the period ended March 31, 2023, including the related notes, and the financial highlights for each of the five years in the period ended March 31, 2023 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of March 31, 2023, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended March 31, 2023 and each of the financial highlights for each of the five years in the period ended March 31, 2023 in conformity with accounting principles generally accepted in the United States of America.
iShares Global Comm Services ETF
iShares Global Consumer Discretionary ETF
iShares Global Consumer Staples ETF
iShares Global Energy ETF
iShares Global Financials ETF
iShares Global Healthcare ETF
iShares Global Industrials ETF
iShares Global Materials ETF
iShares Global Tech ETF
iShares Global Utilities ETF
|
Basis for Opinions
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of March 31, 2023 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.
/s/PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
May 25, 2023
We have served as the auditor of one or more BlackRock investment companies since 2000.
96 |
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 |
Important Tax Information (unaudited) |
The following amounts, or maximum amounts allowable by law, are hereby designated as qualified dividend income for individuals for the fiscal year ended March 31, 2023:
iShares ETF | Qualified Dividend Income |
|||
Global Comm Services |
$ | 3,646,006 | ||
Global Consumer Discretionary |
4,762,718 | |||
Global Consumer Staples |
33,520,935 | |||
Global Energy |
114,647,347 | |||
Global Financials |
25,482,646 | |||
Global Healthcare |
69,649,748 | |||
Global Industrials |
6,719,677 | |||
Global Materials |
19,755,397 | |||
Global Tech |
35,677,092 | |||
Global Utilities |
5,446,821 |
The Funds intend to pass through to their shareholders the following amounts, or maximum amounts allowable by law, of foreign source income earned and foreign taxes paid for the fiscal year ended March 31, 2023:
iShares ETF | Foreign Source Income Earned |
Foreign Taxes Paid |
||||||
Global Materials |
$ | 18,015,848 | $ | 928,454 |
The following percentage, or maximum percentage allowable by law, of ordinary income distributions paid during the fiscal year ended March 31, 2023 qualified for the dividends-received deduction for corporate shareholders:
iShares ETF |
Dividends-Received Deduction | |
Global Comm Services |
44.22% | |
Global Consumer Discretionary |
57.72% | |
Global Consumer Staples |
69.91% | |
Global Energy |
46.34% | |
Global Financials |
33.90% | |
Global Healthcare |
83.79% | |
Global Industrials |
49.12% | |
Global Materials |
13.30% | |
Global Tech |
100.00% | |
Global Utilities |
60.36% |
I M P O R T A N T T A X I N F O R M A T I O N |
97 |
Statement Regarding Liquidity Risk Management Program (unaudited)
In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”),iShares Trust (the “Trust”) has adopted and implemented a liquidity risk management program (the “Program”)for iShares Global Comm Services ETF, iShares Global Consumer Discretionary ETF, iShares Global Consumer Staples ETF, iShares Global Energy ETF, iShares Global Financials ETF, iShares Global Healthcare ETF, iShares Global Industrials ETF, iShares Global Materials ETF, iShares Global Tech ETF and iShares Global Utilities ETF (the “Funds” or “ETFs”), each a series of the Trust, which is reasonably designed to assess and manage each Fund’s liquidity risk.
The Board of Trustees (the “Board”) of the Trust, on behalf of the Funds, met on December 9, 2022 (the “Meeting”) to review the Program. The Board previously appointed BlackRock Fund Advisors (“BlackRock”), the investment adviser to the Funds, as the program administrator for each Fund’s Program. BlackRock also previously delegated oversight of the Program to the 40 Act Liquidity Risk Management Committee (the “Committee”). At the Meeting, the Committee, on behalf of BlackRock, provided the Board with a report that addressed the operation of the Program and assessed its adequacy and effectiveness of implementation, including the management of each Fund’s Highly Liquid Investment Minimum (“HLIM”) where applicable, and any material changes to the Program (the “Report”). The Report covered the period from October 1, 2021 through September 30, 2022 (the “Program Reporting Period”).
The Report described the Program’s liquidity classification methodology for categorizing each Fund’s investments (including derivative transactions) into one of four liquidity buckets. It also referenced the methodology used by BlackRock to establish each Fund’s HLIM and noted that the Committee reviews and ratifies the HLIM assigned to each Fund no less frequently than annually. The Report also discussed notable events affecting liquidity over the Program Reporting Period, including extended market holidays, the imposition of capital controls in certain non-U.S. countries, Russian sanctions and the closure of the Russian securities market.
The Report noted that the Program complied with the key factors for consideration under the Liquidity Rule for assessing, managing and periodically reviewing each Fund’s liquidity risk, as follows:
a) |
The Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions. During the Program Reporting Period, the Committee reviewed whether each Fund’s strategy is appropriate for an open-end fund structure, with a focus on funds with more significant and consistent holdings of less liquid and illiquid assets. The Committee also factored a fund’s concentration in an issuer into the liquidity classification methodology by taking issuer position sizes into account. Derivative exposure was also considered in the calculation of a fund’s liquidity bucketing. Finally, a factor for consideration under the Liquidity Rule is a Fund’s use of borrowings for investment purposes. However, the Funds do not borrow for investment purposes. |
b) |
Short-term and long-term cash flow projections during both normal and reasonably foreseeable stressed conditions. During the Program Reporting Period, the Committee reviewed historical redemption activity and used this information as a component to establish each ETF’s reasonably anticipated trading size (“RATS”). The Committee may also take into consideration a fund’s shareholder ownership concentration (which, depending on product type and distribution channel, may or may not be available), a fund’s distribution channels, and the degree of certainty associated with a fund’s short-term and long-term cash flow projections. |
c) |
Holdings of cash and cash equivalents, as well as borrowing arrangements. The Committee considered that ETFs generally do not hold more than de minimis amounts of cash. The Committee also considered that ETFs generally do not engage in borrowing. |
d) |
The relationship between an ETF’s portfolio liquidity and the way in which, and the prices and spreads at which, ETF shares trade, including the efficiency of the arbitrage function and the level of active participation by market participants, including authorized participants. The Committee monitored the prevailing bid/ask spread and the ETF price premium (or discount) to NAV for all ETFs. However, there were no ETFs with persistent deviations of fund premium/discount or bid/ask spreads from long-term averages over the Program Reporting Period. |
e) |
The effect of the composition of baskets on the overall liquidity of an ETF’s portfolio. In reviewing the linkage between the composition of custom baskets accepted by an ETF and any significant change in the liquidity profile of such ETF, the Committee reviewed changes in the proportion of each ETF’s portfolio comprised of less liquid and illiquid holdings to determine if applicable thresholds were met requiring enhanced review. |
There were no material changes to the Program during the Program Reporting Period other than the enhancement of certain model components in the Program’s classification methodology. The Report provided to the Board stated that the Committee concluded that based on the operation of the functions, as described in the Report, the Program is operating as intended and is effective in implementing the requirements of the Liquidity Rule.
98 |
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 |
Supplemental Information (unaudited)
Section 19(a) Notices
The amounts and sources of distributions reported are estimates and are being provided pursuant to regulatory requirements and are not being provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon each Fund’s investment experience during the year and may be subject to changes based on tax regulations. Shareholders will receive a Form 1099-DIV each calendar year that will inform them how to report these distributions for federal income tax purposes.
March 31, 2023
Total Cumulative Distributions for the Fiscal Year |
% Breakdown of the Total Cumulative Distributions for the Fiscal Year |
|||||||||||||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||||||
iShares ETF |
Net Investment Income |
Net Realized Capital Gains |
Return of Capital |
Total Per Share |
Net Investment Income |
Net Realized Capital Gains |
Return of Capital |
Total Per Share |
||||||||||||||||||||||||||||
Global Comm Services(a) |
$ | 0.733838 | $ | — | $ | 0.046403 | $ | 0.780241 | 94 | % | — | % | 6 | % | 100 | % | ||||||||||||||||||||
Global Consumer Discretionary |
1.259193 | — | — | 1.259193 | 100 | — | — | 100 | ||||||||||||||||||||||||||||
Global Energy |
1.856963 | — | — | 1.856963 | 100 | — | — | 100 | ||||||||||||||||||||||||||||
Global Financials |
2.605246 | — | — | 2.605246 | 100 | — | — | 100 | ||||||||||||||||||||||||||||
Global Healthcare(a) |
0.959372 | — | 0.030866 | 0.990238 | 97 | — | 3 | 100 | ||||||||||||||||||||||||||||
Global Tech |
0.362285 | — | — | 0.362285 | 100 | — | — | 100 | ||||||||||||||||||||||||||||
Global Utilities |
1.886287 | — | — | 1.886287 | 100 | — | — | 100 |
(a) |
The Fund estimates that it has distributed more than its net investment income and net realized capital gains; therefore, a portion of the distribution may be a return of capital. A return of capital may occur, for example, when some or all of the shareholder’s investment in the Fund is returned to the shareholder. A return of capital does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. When distributions exceed total return performance, the difference will incrementally reduce the Fund’s net asset value per share. |
Premium/Discount Information
Information on the Fund’s net asset value, market price, premiums and discounts, and bid-ask spreads can be found at iShares.com.
Regulation under the Alternative Investment Fund Managers Directive
The Alternative Investment Fund Managers Directive, and its United Kingdom (“UK”) equivalent, (“AIFMD”) impose detailed and prescriptive obligations on fund managers established in the European Union (the “EU”) and the UK. These do not currently apply to managers established outside of the EU or UK, such as BFA (the “Company”). Rather, the Company is only required to comply with certain disclosure, reporting and transparency obligations of AIFMD because it has registered the iShares Global Consumer Staples ETF and iShares Global Energy ETF (the “Funds”) to be marketed to investors in the EU and/or UK.
Report on Remuneration
The Company is required under AIFMD to make quantitative disclosures of remuneration. These disclosures are made in line with BlackRock’s interpretation of currently available regulatory guidance on quantitative remuneration disclosures. As market or regulatory practice develops BlackRock may consider it appropriate to make changes to the way in which quantitative remuneration disclosures are calculated. Where such changes are made, this may result in disclosures in relation to a fund not being comparable to the disclosures made in the prior year, or in relation to other BlackRock fund disclosures in that same year.
Disclosures are provided in relation to (a) the staff of the Company; (b) staff who are senior management; and (c) staff who have the ability to materially affect the risk profile of the Funds.
All individuals included in the aggregated figures disclosed are rewarded in line with BlackRock’s remuneration policy for their responsibilities across the relevant BlackRock business area. As all individuals have a number of areas of responsibilities, only the portion of remuneration for those individuals’ services attributable to the Funds is included in the aggregate figures disclosed.
BlackRock has a clear and well-defined pay-for-performance philosophy, and compensation programs which support that philosophy.
BlackRock operates a total compensation model for remuneration which includes a base salary, which is contractual, and a discretionary bonus scheme. Although all employees are eligible to receive a discretionary bonus, there is no contractual obligation to make a discretionary bonus award to any employees. For senior management and staff who have the ability to materially affect the risk profile of the Funds, a significant percentage of variable remuneration is deferred over time. All employees are subject to a clawback policy.
Remuneration decisions for employees are made once annually in January following the end of the performance year, based on BlackRock’s full-year financial results and other non-financial goals and objectives. Alongside financial performance, individual total compensation is also based on strategic and operating results and other considerations such as management and leadership capabilities. No set formulas are established and no fixed benchmarks are used in determining annual incentive awards.
S U P P L E M E N T A L I N F O R M A T I O N |
99 |
Supplemental Information (unaudited) (continued)
Annual incentive awards are paid from a bonus pool which is reviewed throughout the year by BlackRock’s independent compensation committee, taking into account both actual and projected financial information together with information provided by the Enterprise Risk and Regulatory Compliance departments in relation to any activities, incidents or events that warrant consideration in making compensation decisions. Individuals are not involved in setting their own remuneration.
Each of the control functions (Enterprise Risk, Legal & Compliance, and Internal Audit) each have their own organizational structures which are independent of the business units and therefore staff members in control functions are remunerated independently of the businesses they oversee. Functional bonus pools for those control functions are determined with reference to the performance of each individual function and the remuneration of the senior members of control functions is directly overseen by BlackRock’s independent remuneration committee.
Members of staff and senior management of the Company typically provide both AIFMD and non-AIFMD related services in respect of multiple funds, clients and functions of the Company and across the broader BlackRock group. Conversely, members of staff and senior management of the broader BlackRock group may provide both AIFMD and non-AIFMD related services in respect of multiple funds, clients and functions of the broader BlackRock group and of the Company. Therefore, the figures disclosed are a sum of individuals’ portion of remuneration attributable to the Company according to an objective apportionment methodology which acknowledges the multiple-service nature of the Company and the broader BlackRock group. Accordingly, the figures are not representative of any individual’s actual remuneration or their remuneration structure.
The amount of the total remuneration awarded to the Company’s staff in respect of the Company’s financial year ending December 31, 2022 was USD 4,121 million. This figure is comprised of fixed remuneration of USD 685 million and variable remuneration of USD 3,436 million. There was a total of 8 beneficiaries of the remuneration described above.
The amount of the aggregate remuneration awarded by the Company in respect of the Company’s financial year ending December 31, 2022, to its senior management was USD 2,958 million, and to other members of its staff whose actions potentially have a material impact on the risk profile of the Company or its funds was USD 970 million. These figures relate to the entire Company and not to the Funds.
Disclosures Under the EU Sustainable Finance Disclosure Regulation
The iShares Global Consumer Staples ETF and iShares Global Energy ETF (the “Funds”) are registered under the Alternative Investment Fund Managers Directive to be marketed to European Union (“EU”) investors, as noted above. As a result, certain disclosures are required under the EU Sustainable Finance Disclosure Regulation (“SFDR”).
Each Fund has not been categorized under the SFDR as an “Article 8” or “Article 9” product. In addition, each Fund’s investment strategy does not take into account the criteria for environmentally sustainable economic activities under the EU sustainable investment taxonomy regulation or principal adverse impacts (“PAIs”) on sustainability factors under the SFDR. PAIs are identified under the SFDR as the material impacts of investment decisions on sustainability factors relating to environmental, social and employee matters, respect for human rights, and anti-corruption and anti-bribery matters.
100 |
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 |
Trustee and Officer Information (unaudited)
The Board of Trustees has responsibility for the overall management and operations of the Funds, including general supervision of the duties performed by BFA and other service providers. Each Trustee serves until he or she resigns, is removed, dies, retires or becomes incapacitated. Each officer shall hold office until his or her successor is elected and qualifies or until his or her death, resignation or removal. Trustees who are not “interested persons” (as defined in the 1940 Act) of the Trust are referred to as independent trustees (“Independent Trustees”).
The registered investment companies advised by BFA or its affiliates (the “BlackRock-advised Funds”) are organized into one complex of open-end equity, multi-asset, index and money market funds and ETFs (the “BlackRock Multi-Asset Complex”), one complex of closed-end funds and open-end non-index fixed-income funds (including ETFs)(the “BlackRock Fixed-Income Complex”) and one complex of ETFs (“Exchange-Traded Fund Complex”)(each, a “BlackRock Fund Complex”).Each Fund is included in the Exchange-Traded Fund Complex. Each Trustee also serves as a Director of iShares, Inc. and a Trustee of iShares U.S. ETF Trust and, as a result, oversees all of the funds within the Exchange-Traded Fund Complex, which consists of 380 funds as of March 31, 2023. With the exception of Robert S. Kapito, Salim Ramji and Charles Park, the address of each Trustee and officer is c/o BlackRock, Inc., 400 Howard Street, San Francisco, CA 94105. The address of Mr. Kapito, Mr. Ramji and Mr. Park is c/o BlackRock, Inc., 50 Hudson Yards, New York, NY 10001. The Board has designated John E. Kerrigan as its Independent Board Chair. Additional information about the Funds’ Trustees and officers may be found in the Funds’ combined Statement of Additional Information, which is available without charge, upon request, by calling toll-free 1-800-iShares (1-800-474-2737).
Interested Trustees | ||||||
Name (Year of Birth) |
Position(s) |
Principal Occupation(s) During Past 5 Years |
Other Directorships Held by Trustee | |||
Robert S. Kapito(a) (1957) |
Trustee (since 2009). |
President, BlackRock, Inc. (since 2006);Vice Chairman of BlackRock, Inc. and Head of BlackRock’s Portfolio Management Group (since its formation in 1998) and BlackRock, Inc.’s predecessor entities (since 1988); Trustee, University of Pennsylvania (since 2009); President of Board of Directors, Hope & Heroes Children’s Cancer Fund (since 2002). | Director of BlackRock, Inc. (since 2006); Director of iShares, Inc. (since 2009); Trustee of iShares U.S. ETF Trust (since 2011). | |||
Salim Ramji(b) (1970) |
Trustee (since 2019). |
Senior Managing Director, BlackRock, Inc. (since 2014); Global Head of BlackRock’s ETF and Index Investments Business (since 2019); Head of BlackRock’s U.S. Wealth Advisory Business (2015-2019); Global Head of Corporate Strategy, BlackRock, Inc. (2014-2015); Senior Partner, McKinsey & Company (2010-2014). | Director of iShares, Inc. (since 2019); Trustee of iShares U.S. ETF Trust (since 2019). |
(a) |
Robert S. Kapito is deemed to be an “interested person” (as defined in the 1940 Act) of the Trust due to his affiliations with BlackRock, Inc. and its affiliates. |
(b) |
Salim Ramji is deemed to be an “interested person” (as defined in the 1940 Act) of the Trust due to his affiliations with BlackRock, Inc. and its affiliates. |
Independent Trustees | ||||||
Name (Year of Birth) |
Position(s) |
Principal Occupation(s) During Past 5 Years |
Other Directorships Held by Trustee | |||
John E. Kerrigan (1955) |
Trustee (since 2005); Independent Board Chair (since 2022). | Chief Investment Officer, Santa Clara University (since 2002). | Director of iShares, Inc. (since 2005); Trustee of iShares U.S. ETF Trust (since 2011); Independent Board Chair of iShares, Inc. and iShares U.S. ETF Trust (since 2022). | |||
Jane D. Carlin (1956) |
Trustee (since 2015); Risk Committee Chair (since 2016). | Consultant (since 2012); Member of the Audit Committee (2012-2018), Chair of the Nominating and Governance Committee (2017-2018) and Director of PHH Corporation (mortgage solutions) (2012-2018); Managing Director and Global Head of Financial Holding Company Governance & Assurance and the Global Head of Operational Risk Management of Morgan Stanley (2006-2012). | Director of iShares, Inc. (since 2015); Trustee of iShares U.S. ETF Trust (since 2015); Member of the Audit Committee (since 2016), Chair of the Audit Committee (since 2020) and Director of The Hanover Insurance Group, Inc. (since 2016). | |||
Richard L. Fagnani (1954) |
Trustee (since 2017); Audit Committee Chair (since 2019). | Partner, KPMG LLP (2002-2016); Director of One Generation Away (since 2021). | Director of iShares, Inc. (since 2017); Trustee of iShares U.S. ETF Trust (since 2017). |
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Trustee and Officer Information (unaudited) (continued)
Independent Trustees (continued) | ||||||
Name (Year of Birth) |
Position(s) |
Principal Occupation(s) During Past 5 Years |
Other Directorships Held by Trustee | |||
Cecilia H. Herbert (1949) |
Trustee (since 2005); Nominating and Governance and Equity Plus Committee Chairs (since 2022). | Chair of the Finance Committee (since 2019) and Trustee and Member of the Finance, Audit and Quality Committees of Stanford Health Care (since 2016); Trustee of WNET, New York’s public media company (since 2011) and Member of the Audit Committee (since 2018), Investment Committee (since 2011) and Personnel Committee (since 2022); Chair (1994-2005) and Member (1992-2021) of the Investment Committee, Archdiocese of San Francisco; Trustee of Forward Funds (14 portfolios) (2009-2018); Trustee of Salient MF Trust (4 portfolios) (2015-2018); Director (1998-2013) and President (2007-2011) of the Board of Directors, Catholic Charities CYO; Trustee (2002-2011) and Chair of the Finance and Investment Committee (2006-2010) of the Thacher School; Director of the Senior Center of Jackson Hole (since 2020); Director of the Jackson Hole Center for the Arts (since 2021); Member of the Wyoming State Investment Funds Committee (since 2022). | Director of iShares, Inc. (since 2005); Trustee of iShares U.S. ETF Trust (since 2011). | |||
Drew E. Lawton (1959) |
Trustee (since 2017); 15(c) Committee Chair (since 2017). | Senior Managing Director of New York Life Insurance Company (2010-2015). | Director of iShares, Inc. (since 2017); Trustee of iShares U.S. ETF Trust (since 2017); Director of Jackson Financial Inc. (since 2021). | |||
John E. Martinez (1961) |
Trustee (since 2003); Securities Lending Committee Chair (since 2019). | Director of Real Estate Equity Exchange, Inc. (since 2005); Director of Cloudera Foundation (2017-2020); and Director of Reading Partners (2012-2016). | Director of iShares, Inc. (since 2003); Trustee of iShares U.S. ETF Trust (since 2011). | |||
Madhav V. Rajan (1964) |
Trustee (since 2011); Fixed-Income Plus Committee Chair (since 2019). | Dean, and George Pratt Shultz Professor of Accounting, University of Chicago Booth School of Business (since 2017); Advisory Board Member (since 2016) and Director (since 2020) of C.M. Capital Corporation; Chair of the Board for the Center for Research in Security Prices, LLC (since 2020); Robert K. Jaedicke Professor of Accounting, Stanford University Graduate School of Business (2001-2017); Professor of Law (by courtesy), Stanford Law School (2005-2017); Senior Associate Dean for Academic Affairs and Head of MBA Program, Stanford University Graduate School of Business (2010-2016). | Director of iShares, Inc. (since 2011); Trustee of iShares U.S. ETF Trust (since 2011). | |||
Officers | ||||||
Name (Year of Birth) |
Position(s) |
Principal Occupation(s) During Past 5 Years | ||||
Dominik Rohé (1973) |
President (since 2019). | Managing Director, BlackRock, Inc. (since 2005); Head of Americas ETF and Index Investments (since 2023); Head of Latin America (2019-2023). | ||||
Trent Walker (1974) |
Treasurer and Chief Financial Officer (since 2020). | Managing Director, BlackRock, Inc. (since September 2019); Chief Financial Officer of iShares Delaware Trust Sponsor LLC, BlackRock Funds, BlackRock Funds II, BlackRock Funds IV, BlackRock Funds V and BlackRock Funds VI (since 2021); Executive Vice President of PIMCO (2016-2019); Senior Vice President of PIMCO (2008-2015); Treasurer (2013-2019) and Assistant Treasurer (2007-2017) of PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, 2 PIMCO-sponsored interval funds and 21 PIMCO-sponsored closed-end funds. | ||||
Charles Park (1967) |
Chief Compliance Officer (since 2006). | Chief Compliance Officer of BlackRock Advisors, LLC and the BlackRock-advised Funds in the BlackRock Multi-Asset Complex and the BlackRock Fixed-Income Complex (since 2014); Chief Compliance Officer of BFA (since 2006). | ||||
Marisa Rolland (1980) |
Secretary (since 2022). | Managing Director, BlackRock, Inc. (since 2023); Director, BlackRock, Inc. (2018-2022); Vice President, BlackRock, Inc. (2010-2017). | ||||
Rachel Aguirre (1982) |
Executive Vice President (since 2022). | Managing Director, BlackRock, Inc. (since 2018); Director, BlackRock, Inc. (2009-2018); Head of U.S. iShares Product (since 2022); Head of EII U.S. Product Engineering (since 2021); Co-Head of EII’s Americas Portfolio Engineering (2020-2021); Head of Developed Markets Portfolio Engineering (2016-2019). |
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Trustee and Officer Information (unaudited) (continued)
Officers (continued) | ||||||
Name (Year of Birth) |
Position(s) |
Principal Occupation(s) During Past 5 Years | ||||
Jennifer Hsui (1976) |
Executive Vice President (since 2022). | Managing Director, BlackRock, Inc. (since 2009); Co-Head of Index Equity (since 2022). | ||||
James Mauro (1970) |
Executive Vice President (since 2022). | Managing Director, BlackRock, Inc. (since 2010); Head of Fixed Income Index Investments in the Americas and Head of San Francisco Core Portfolio Management (since 2020). |
Effective June 15, 2022, Marisa Rolland replaced Deepa Damre Smith as Secretary.
Effective March 30, 2023, Dominik Rohé replaced Armando Senra as President.
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Electronic Delivery
Shareholders can sign up for e-mail notifications announcing that the shareholder report or prospectus has been posted on the iShares website at iShares.com. Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail.
To enroll in electronic delivery:
• |
Go to icsdelivery.com. |
• |
If your brokerage firm is not listed, electronic delivery may not be available. Please contact your broker-dealer or financial advisor. |
Householding
Householding is an option available to certain fund investors. Householding is a method of delivery, based on the preference of the individual investor, in which a single copy of certain shareholder documents and Rule 30e-3 notices can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.
Availability of Quarterly Schedule of Investments
The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to their reports on Form N-PORT. The Funds’ Forms N-PORT are available on the SEC’s website at sec.gov. Additionally, each Fund makes its portfolio holdings for the first and third quarters of each fiscal year available at iShares.com/fundreports.
Availability of Proxy Voting Policies and Proxy Voting Records
A description of the policies and procedures that the iShares Funds use to determine how to vote proxies relating to portfolio securities and information about how the iShares Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request (1) by calling toll-free 1-800-474-2737; (2) on the iShares website at iShares.com; and (3) on the SEC website at sec.gov.
A description of the Trust’s policies and procedures with respect to the disclosure of the Fund’s portfolio securities is available in the Fund Prospectus. The Fund discloses its portfolio holdings daily and provides information regarding its top holdings in Fund fact sheets at iShares.com.
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Glossary of Terms Used in this Report
Portfolio Abbreviation | ||
ADR | American Depositary Receipt | |
CPO | Certificates of Participation (Ordinary) | |
NVS | Non-Voting Shares |
G L O S S A R Y O F T E R M S U S E D I N T H I S R E P O R T |
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Want to know more?
iShares.com | 1-800-474-2737
This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus.
Investing involves risk, including possible loss of principal.
The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).
The iShares Funds are not sponsored, endorsed, issued, sold or promoted by S&P Dow Jones Indices LLC, nor does this company make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the company listed above.
©2023 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.
iS-AR-300-0323
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