LOGO

  MARCH 31, 2023

 

 

   

 

  

2023 Annual Report

 

 

iShares Trust

·  iShares Global Comm Services ETF | IXP | NYSE Arca

·  iShares Global Consumer Discretionary ETF | RXI | NYSE Arca

·  iShares Global Consumer Staples ETF | KXI | NYSE Arca

·  iShares Global Energy ETF | IXC | NYSE Arca

·  iShares Global Financials ETF | IXG | NYSE Arca

·  iShares Global Healthcare ETF | IXJ | NYSE Arca

·  iShares Global Industrials ETF | EXI | NYSE Arca

·  iShares Global Materials ETF | MXI | NYSE Arca

·  iShares Global Tech ETF | IXN | NYSE Arca

·  iShares Global Utilities ETF | JXI | NYSE Arca

 


The Markets in Review

Dear Shareholder,

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

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

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

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

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

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

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

 

LOGO

Rob Kapito

President, BlackRock, Inc.

LOGO

Rob Kapito

President, BlackRock, Inc.

 

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

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

    15.62%        (7.73)%   
   

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

    9.14           (11.61)      
   

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

    27.27           (1.38)      
   

Emerging market equities
(MSCI Emerging Markets Index)

    14.04           (10.70)      
   

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

    1.93           2.52       
   

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

    4.38           (6.90)      
   

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

    4.89           (4.78)      
   

Tax-exempt municipal bonds
(Bloomberg Municipal Bond Index)

    7.00           0.26       
   

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

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

 

 

 

2  

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


Table of Contents

 

     Page  

 

 

The Markets in Review

     2  

Annual Report:

  

Market Overview

     4  

Fund Summary

     5  

About Fund Performance

     25  

Disclosure of Expenses

     25  

Schedules of Investments

     26  

Financial Statements

  

Statements of Assets and Liabilities

     64  

Statements of Operations

     67  

Statements of Changes in Net Assets

     70  

Financial Highlights

     75  

Notes to Financial Statements

     85  

Report of Independent Registered Public Accounting Firm

     96  

Important Tax Information

     97  

Statement Regarding Liquidity Risk Management Program

     98  

Supplemental Information

     99  

Trustee and Officer Information

     101  

General Information

     104  

Glossary of Terms Used in this Report

     105  

 

 

 


Market Overview

 

iShares Trust

Global Market Overview

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

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

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

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

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

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

 

 

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  
 

 

 

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

Fund NAV

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

Fund Market

    (12.27      4.42        4.42             (12.27      24.14        54.06  

Index

    (12.49      4.71        4.44                   (12.49      25.90        54.36  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

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

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

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

Expense Example

 

Actual     Hypothetical 5% Return           

 

 

   

 

 

      
 

Beginning

Account Value

(10/01/22)

 

 

 

      

Ending

Account Value

(03/31/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

   

Beginning      

Account Value      

(10/01/22)      

 

 

 

   

Ending

Account Value

(03/31/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

      

Annualized

Expense

Ratio

 

 

 

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

 

  (a) 

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

 

 

 

F U N D   S U M M A R Y

  5


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

 

Portfolio Management Commentary

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

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

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

Portfolio Information

 

INDUSTRY ALLOCATION

 

   
Industry    

Percent of

Total Investments

 

(a) 

Interactive Media & Services

    47.6

Diversified Telecommunication Services

    19.4  

Entertainment

    15.8  

Media

    9.4  

Wireless Telecommunication Services

    7.8  

GEOGRAPHIC ALLOCATION

 

   
Country/Geographic Region    

Percent of

Total Investments

 

(a) 

United States

    66.9

China

    10.4  

Japan

    7.3  

Canada

    2.7  

Germany

    2.3  

United Kingdom

    2.2  

France

    1.4  

Spain

    1.3  

Australia

    1.1  

South Korea

    1.1  

Other (each representing less than 1%)

    3.3  

 

  (a) 

Excludes money market funds.

 

 

 

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  
 

 

 

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

Fund NAV

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

Fund Market

    (6.27      6.63        9.42            (6.27      37.83        146.09  

Index

    (6.66      6.77        9.46                  (6.66      38.78        146.93  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

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

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

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

Expense Example

 

Actual     Hypothetical 5% Return           

 

 

   

 

 

      
 

Beginning

Account Value

(10/01/22)

 

 

 

      

Ending

Account Value

(03/31/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

   

Beginning      

Account Value      

(10/01/22)      

 

 

 

   

Ending

Account Value

(03/31/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

      

Annualized

Expense

Ratio

 

 

 

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

 

  (a) 

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

 

 

 

F U N D   S U M M A R Y

  7


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

 

Portfolio Management Commentary

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

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

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

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

Portfolio Information

 

INDUSTRY ALLOCATION

 

   
Industry    

Percent of

Total Investments

 

(a) 

Consumer Discretionary Distribution & Retail

    34.8

Automobiles & Components

    25.4  

Consumer Services

    19.9  

Consumer Durables & Apparel

    19.9  

GEOGRAPHIC ALLOCATION

 

   
Country/Geographic Region    

Percent of

Total Investments

 

(a) 

United States

    56.4

Japan

    11.6  

France

    7.5  

China

    7.3  

Germany

    3.7  

United Kingdom

    2.5  

Switzerland

    1.8  

Netherlands

    1.7  

Italy

    1.6  

Spain

    1.3  

Canada

    1.2  

Australia

    1.2  

Other (each representing less than 1%)

    2.2  

 

  (a) 

Excludes money market funds.

 

 

 

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  
 

 

 

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

Fund NAV

    1.56      6.80      6.58%          1.56      38.95      89.07

Fund Market

    1.75        6.80        6.57             1.75        38.94        88.90  

Index

    1.17        6.70        6.51                   1.17        38.30        87.83  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

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

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

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

Expense Example

 

Actual     Hypothetical 5% Return           

 

 

   

 

 

      
 

Beginning

Account Value

(10/01/22)

 

 

 

      

Ending

Account Value

(03/31/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

   

Beginning      

Account Value      

(10/01/22)      

 

 

 

   

Ending

Account Value

(03/31/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

      

Annualized

Expense

Ratio

 

 

 

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

 

  (a) 

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

 

 

 

F U N D   S U M M A R Y

  9


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

 

Portfolio Management Commentary

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

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

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

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

Portfolio Information

 

INDUSTRY ALLOCATION

 

   
Industry    

Percent of

Total Investments

 

(a) 

Packaged Foods & Meats

    20.9

Household Products

    14.9  

Consumer Staples Merchandise Retail

    14.1  

Soft Drinks & Non-alcoholic Beverages

    12.6  

Personal Care Products

    9.4  

Tobacco

    8.8  

Food Retail

    6.9  

Distillers & Vintners

    5.1  

Brewers

    4.3  

Agricultural Products & Services

    1.4  

Food Distributors

    1.0  

Other (each representing less than 1%)

    0.6  

GEOGRAPHIC ALLOCATION

 

   
Country/Geographic Region    

Percent of

Total Investments

 

(a) 

United States

    58.0

United Kingdom

    11.6  

Switzerland

    8.8  

Japan

    5.4  

France

    5.2  

Canada

    2.0  

Netherlands

    1.7  

Belgium

    1.6  

Australia

    1.5  

Mexico

    1.1  

Other (each representing less than 1%)

    3.1  

 

  (a) 

Excludes money market funds.

 

 

 

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  
 

 

 

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

Fund NAV

    9.39      7.06      3.33%          9.39      40.63      38.75

Fund Market

    9.43        7.05        3.33             9.43        40.60        38.80  

Index

    8.45        6.52        3.01                   8.45        37.15        34.55  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

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

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

Expense Example

 

Actual     Hypothetical 5% Return           

 

 

   

 

 

      
 

Beginning

Account Value

(10/01/22)

 

 

 

      

Ending

Account Value

(03/31/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

   

Beginning      

Account Value      

(10/01/22)      

 

 

 

   

Ending

Account Value

(03/31/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

      

Annualized

Expense

Ratio

 

 

 

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

 

  (a) 

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

 

 

  11


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

 

Portfolio Management Commentary

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

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

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

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

Portfolio Information

 

INDUSTRY ALLOCATION

 

   
Industry    

Percent of

Total Investments

 

(a) 

Integrated Oil & Gas

    56.2

Oil & Gas Exploration & Production

    20.8  

Oil & Gas Storage & Transportation

    9.6  

Oil & Gas Refining & Marketing

    7.8  

Oil & Gas Equipment & Services

    5.2  

Other (each representing less than 1%)

    0.4  

GEOGRAPHIC ALLOCATION

 

   
Country/Geographic Region    

Percent of

Total Investments

 

(a) 

United States

    60.9

United Kingdom

    12.2  

Canada

    11.4  

France

    5.3  

Australia

    2.4  

Italy

    1.6  

Brazil

    1.6  

Norway

    1.4  

Other (each representing less than 1%)

    3.2  

 

  (a) 

Excludes money market funds.

 

 

 

12  

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


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

 

Investment Objective

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

Performance

 

    Average Annual Total Returns            Cumulative Total Returns  
 

 

 

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

Fund NAV

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

Fund Market

    (9.90      2.74        6.30             (9.90      14.48        84.21  

Index

    (10.35      2.83        6.38                   (10.35      14.98        85.62  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

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

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

Expense Example

 

Actual     Hypothetical 5% Return  

 

 

   

 

 

      
 

Beginning

Account Value

(10/01/22)

 

 

 

      

Ending

Account Value

(03/31/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

   

Beginning      

Account Value      

(10/01/22)      

 

 

 

   

Ending

Account Value

(03/31/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

      

Annualized

Expense

Ratio

 

 

 

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

 

  (a) 

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

 

 

 

F U N D   S U M M A R Y

  13


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

 

Portfolio Management Commentary

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

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

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

Portfolio Information

 

INDUSTRY ALLOCATION

 

   
Industry    

Percent of

Total Investments

 

(a) 

Banks

    38.8

Insurance

    20.9  

Financial Services

    20.3  

Capital Markets

    17.8  

Consumer Finance

    2.2  

GEOGRAPHIC ALLOCATION

 

   
Country/Geographic Region    

Percent of

Total Investments

 

(a) 

United States

    54.6

Canada

    7.2  

United Kingdom

    5.1  

Australia

    4.4  

Japan

    4.4  

Switzerland

    3.0  

Germany

    2.7  

France

    2.4  

China

    2.3  

Hong Kong

    2.2  

Sweden

    1.7  

Italy

    1.6  

Netherlands

    1.6  

Spain

    1.5  

Singapore

    1.5  

Brazil

    1.0  

Other (each representing less than 1%)

    2.8  

 

  (a) 

Excludes money market funds.

 

 

 

14  

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


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

 

Investment Objective

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

Performance

 

    Average Annual Total Returns            Cumulative Total Returns  
 

 

 

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

Fund NAV

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

Fund Market

    (3.73      10.00        10.31             (3.73      61.07        166.80  

Index

    (3.73      10.05        10.39                   (3.73      61.39        168.72  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

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

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

Expense Example

 

Actual     Hypothetical 5% Return           

 

 

   

 

 

      
 

Beginning

Account Value

(10/01/22)

 

 

 

      

Ending

Account Value

(03/31/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

   

Beginning      

Account Value      

(10/01/22)      

 

 

 

   

Ending

Account Value

(03/31/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

      

Annualized

Expense

Ratio

 

 

 

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

 

  (a) 

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

 

 

 

F U N D   S U M M A R Y

  15


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

 

Portfolio Management Commentary

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

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

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

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

Portfolio Information

 

INDUSTRY ALLOCATION

 

   
Industry    

Percent of

Total Investments

 

(a) 

Pharmaceuticals

    41.3

Health Care Equipment & Supplies

    18.5  

Health Care Providers & Services

    15.7  

Biotechnology

    13.6  

Life Sciences Tools & Services

    10.7  

Health Care Technology

    0.2  

GEOGRAPHIC ALLOCATION

 

   
Country/Geographic Region    

Percent of

Total Investments

 

(a) 

United States

    70.7

Switzerland

    7.9  

Japan

    4.7  

Denmark

    4.4  

United Kingdom

    4.3  

France

    2.8  

Germany

    2.1  

Australia

    1.8  

Other (each representing less than 1%)

    1.3  

 

  (a) 

Excludes money market funds.

 

 

 

16  

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


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

 

Investment Objective

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

Performance

 

    Average Annual Total Returns            Cumulative Total Returns  
 

 

 

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

Fund NAV

    0.22      6.39      8.64%          0.22      36.31      129.11

Fund Market

    (0.04      6.32        8.61             (0.04      35.88        128.38  

Index

    (0.38      6.42        8.65                   (0.38      36.51        129.31  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

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

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

Expense Example

 

Actual     Hypothetical 5% Return           

 

 

   

 

 

      
 

Beginning

Account Value

(10/01/22)

 

 

 

      

Ending

Account Value

(03/31/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

   

Beginning      

Account Value      

(10/01/22)      

 

 

 

   

Ending

Account Value

(03/31/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

      

Annualized

Expense

Ratio

 

 

 

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

 

  (a) 

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

 

 

 

F U N D   S U M M A R Y

  17


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

 

Portfolio Management Commentary

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

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

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

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

Portfolio Information

 

INDUSTRY ALLOCATION

 

   
Industry    

Percent of

Total Investments

 

(a) 

Capital Goods

    67.2

Transportation

    18.6  

Commercial & Professional Services

    14.2  

GEOGRAPHIC ALLOCATION

 

   
Country/Geographic Region    

Percent of

Total Investments

 

(a) 

United States

    53.4

Japan

    13.8  

France

    7.4  

United Kingdom

    4.7  

Germany

    4.3  

Canada

    3.7  

Sweden

    3.4  

Switzerland

    2.5  

Denmark

    1.4  

Australia

    1.0  

Other (each representing less than 1%)

    4.4  

 

  (a) 

Excludes money market funds.

 

 

 

18  

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


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

 

Investment Objective

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

Performance

 

    Average Annual Total Returns            Cumulative Total Returns  
 

 

 

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

Fund NAV

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

Fund Market

    (6.89      7.64        6.29             (6.89      44.47        83.98  

Index

    (7.24      7.87        6.39                   (7.24      46.08        85.71  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

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

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

Expense Example

 

Actual     Hypothetical 5% Return           

 

 

   

 

 

      
 

Beginning

Account Value

(10/01/22)

 

 

 

      

Ending

Account Value

(03/31/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

   

Beginning      

Account Value      

(10/01/22)      

 

 

 

   

Ending

Account Value

(03/31/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

      

Annualized

Expense

Ratio

 

 

 

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

 

  (a) 

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

 

 

 

F U N D   S U M M A R Y

  19


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

 

Portfolio Management Commentary

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

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

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

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

Portfolio Information

 

INDUSTRY ALLOCATION

 

   
Industry    

Percent of

Total Investments

 

(a) 

Chemicals

    47.9

Metals & Mining

    39.3  

Construction Materials

    6.1  

Containers & Packaging

    4.9  

Paper & Forest Products

    1.8  

GEOGRAPHIC ALLOCATION

 

   
Country/Geographic Region    

Percent of

Total Investments

 

(a) 

United States

    37.2

Australia

    12.0  

United Kingdom

    9.1  

Canada

    7.7  

Japan

    6.5  

Switzerland

    4.7  

France

    4.6  

Germany

    3.3  

Brazil

    2.7  

South Korea

    2.0  

Ireland

    1.9  

Netherlands

    1.4  

Taiwan

    1.1  

Finland

    1.1  

Other (each representing less than 1%)

    4.7  

 

  (a)

Excludes money market funds.

 

 

 

20  

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)

 

LOGO

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

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

Expense Example

 

Actual     Hypothetical 5% Return           

 

 

   

 

 

      
 

Beginning

Account Value

(10/01/22)

 

 

 

      

Ending

Account Value

(03/31/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

   

Beginning      

Account Value      

(10/01/22)      

 

 

 

   

Ending

Account Value

(03/31/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

      

Annualized

Expense

Ratio

 

 

 

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

 

  (a) 

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

 

 

 

F U N D   S U M M A R Y

  21


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

 

Portfolio Management Commentary

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

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

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

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

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

Portfolio Information

 

INDUSTRY ALLOCATION

 

   
Industry    

Percent of

Total Investments

 

(a) 

Software

    31.6

Semiconductors & Semiconductor Equipment

    28.6  

Technology Hardware, Storage & Peripherals

    26.4  

IT Services

    5.3  

Electronic Equipment, Instruments & Components

    4.8  

Communications Equipment

    3.3  

GEOGRAPHIC ALLOCATION

 

   
Country/Geographic Region    

Percent of

Total Investments

 

(a) 

United States

    81.3

Taiwan

    4.1  

Japan

    3.7  

South Korea

    3.2  

Netherlands

    2.7  

Germany

    1.8  

Canada

    1.2  

Other (each representing less than 1%)

    2.0  

 

  (a) 

Excludes money market funds.

 

 

 

22  

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)

 

LOGO

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

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

Expense Example

 

Actual     Hypothetical 5% Return           

 

 

   

 

 

      
 

Beginning

Account Value

(10/01/22)

 

 

 

      

Ending

Account Value

(03/31/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

   

Beginning      

Account Value      

(10/01/22)      

 

 

 

   

Ending

Account Value

(03/31/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

      

Annualized

Expense

Ratio

 

 

 

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

 

  (a) 

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

 

 

 

F U N D   S U M M A R Y

  23


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

 

Portfolio Management Commentary

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

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

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

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

Portfolio Information

 

INDUSTRY ALLOCATION

 

   
Industry    

Percent of

Total Investments

 

(a) 

Electric Utilities

    61.1

Multi-Utilities

    28.9  

Gas Utilities

    3.9  

Water Utilities

    3.1  

Independent Power and Renewable Electricity Producers

    3.0  

GEOGRAPHIC ALLOCATION

 

   
Country/Geographic Region    

Percent of

Total Investments

 

(a) 

United States

    64.5

United Kingdom

    6.7  

Spain

    6.4  

Italy

    4.6  

Canada

    4.1  

Germany

    3.8  

France

    3.3  

Japan

    2.0  

Australia

    1.1  

Denmark

    1.1  

Portugal

    1.0  

Other (each representing less than 1%)

    1.4  

 

  (a) 

Excludes money market funds.

 

 

 

24  

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


About Fund Performance

 

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

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

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

Disclosure of Expenses

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

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

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

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

 

 

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

  25


Schedule of Investments  

March 31, 2023

  

iShares® Global Comm Services ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   

Australia — 1.1%

   

SEEK Ltd.

    24,696     $ 399,213  

Telstra Corp. Ltd.

    811,324       2,297,184  
   

 

 

 
      2,696,397  
Canada — 2.7%            

BCE Inc.

    64,032       2,868,292  

Rogers Communications Inc., Class B, NVS

    24,605       1,140,405  

Shaw Communications Inc., Class B, NVS

    31,483       942,044  

TELUS Corp.

    100,169       1,988,557  
   

 

 

 
      6,939,298  
China — 10.4%            

Baidu Inc.(a)

    159,300       3,001,414  

Kuaishou Technology(a)(b)

    137,600       1,058,050  

NetEase Inc.

    128,600       2,270,159  

Tencent Holdings Ltd.

    416,300       20,344,287  
   

 

 

 
          26,673,910  
Finland — 0.3%            

Elisa OYJ

    10,544       635,923  
   

 

 

 

France — 1.3%

   

Orange SA

    132,594       1,575,240  

Publicis Groupe SA

    16,607       1,296,339  

Vivendi SE

    56,523       571,535  
   

 

 

 
      3,443,114  
Germany —2.3%            

Deutsche Telekom AG, Registered

    245,096       5,939,238  
   

 

 

 

Italy —0.1%

   

Telecom Italia SpA/Milano(a)

    719,185       237,175  
   

 

 

 

Japan — 7.3%

   

Dentsu Group Inc.

    15,800       556,923  

KDDI Corp.

    110,000       3,392,152  

Nexon Co. Ltd.

    31,700       756,957  

Nintendo Co. Ltd.

    82,100       3,188,892  

Nippon Telegraph & Telephone Corp.

    160,200       4,787,211  

SoftBank Corp.

    195,000       2,251,040  

SoftBank Group Corp.

    83,500       3,282,677  

Z Holdings Corp.

    186,900       529,946  
   

 

 

 
      18,745,798  
Mexico — 0.7%            

America Movil SAB de CV

    1,387,459       1,457,525  

Grupo Televisa SAB, CPO

    185,020       195,801  

Sitios Latinoamerica SAB de CV(a)

    1,760       728  
   

 

 

 
      1,654,054  
Netherlands — 0.8%            

Koninklijke KPN NV

    223,921       791,240  

Universal Music Group NV

    53,483       1,354,443  
   

 

 

 
      2,145,683  
Norway —0.2%            

Telenor ASA

    45,068       528,430  
   

 

 

 

South Korea — 1.1%

   

Kakao Corp.

    21,895       1,036,921  

NAVER Corp.

    10,481       1,642,278  
   

 

 

 
      2,679,199  
Spain — 1.3%            

Cellnex Telecom SA(b)

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

Telefonica SA

    405,523     $ 1,746,512  
   

 

 

 
      3,366,726  
Sweden — 0.4%            

Embracer Group AB(a)(c)

    58,176       272,691  

Tele2 AB, Class B

    39,108       389,245  

Telia Co. AB

    171,337       435,069  
   

 

 

 
      1,097,005  
Switzerland — 0.4%            

Swisscom AG, Registered

    1,782       1,137,222  
   

 

 

 

Taiwan — 0.4%

   

Chunghwa Telecom Co. Ltd.

    267,120       1,050,021  
   

 

 

 
United Kingdom — 2.2%            

Auto Trader Group PLC(b)

    67,831       517,394  

BT Group PLC

    489,876       882,427  

Informa PLC

    99,380       851,831  

Rightmove PLC

    61,060       425,016  

Vodafone Group PLC

    1,881,811       2,075,820  

WPP PLC

    75,477       896,735  
   

 

 

 
      5,649,223  
United States — 66.7%            

Activision Blizzard Inc.

    50,008       4,280,185  

Alphabet Inc., Class A(a)

    305,932       31,734,326  

Alphabet Inc., Class C, NVS(a)

    266,697       27,736,488  

AT&T Inc.

    500,511       9,634,837  

Charter Communications Inc., Class A(a)

    7,396       2,644,884  

Comcast Corp., Class A

    295,378       11,197,780  

DISH Network Corp., Class A(a)

    17,398       162,323  

Electronic Arts Inc.

    18,290       2,203,030  

Fox Corp., Class A, NVS

    20,846       709,806  

Fox Corp., Class B

    9,626       301,390  

Interpublic Group of Companies Inc. (The)

    27,278       1,015,833  

Live Nation Entertainment Inc.(a)

    10,008       700,560  

Match Group Inc.(a)

    19,609       752,789  

Meta Platforms Inc, Class A(a)

    153,885       32,614,387  

Netflix Inc.(a)

    31,271       10,803,505  

News Corp., Class A, NVS

    26,704       461,178  

News Corp., Class B

    8,311       144,861  

Omnicom Group Inc.

    14,235       1,342,930  

Paramount Global, Class B, NVS

    35,456       791,023  

Take-Two Interactive Software Inc.(a)

    11,132       1,328,048  

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

    41,590       6,023,896  

Verizon Communications Inc.

    288,180       11,207,320  

Walt Disney Co. (The)(a)

    108,916       10,905,759  

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

    155,170       2,343,067  
   

 

 

 
          171,040,205  
   

 

 

 

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

      255,658,621  
   

 

 

 

Preferred Stocks

   

Italy — 0.0%

   

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

    422,595       135,853  
   

 

 

 

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

      135,853  
   

 

 

 

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

      255,794,474  
   

 

 

 

 

 

26  

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%
(Cost: $1,564,234)

 

    1,564,044  
   

 

 

 

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

 

    257,358,518  

Liabilities in Excess of Other Assets — (0.3)%

 

    (818,353
   

 

 

 

Net Assets — 100.0%

 

  $ 256,540,165  
   

 

 

 

 

 

(a) 

Non-income producing security.

(b) 

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

(c) 

All or a portion of this security is on loan.

(d) 

Affiliate of the Fund.

(e) 

Annualized 7-day yield as of period end.

(f) 

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

Affiliates

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

 

 

 
Affiliated Issuer   Value at
03/31/22
   

Purchases

at Cost

   

Proceeds

from Sale

   

Net Realized

Gain (Loss)

   

Change in

Unrealized

Appreciation

(Depreciation)

   

Value at

03/31/23

   

Shares

Held at

03/31/23

    Income    

Capital

Gain

Distributions

from

Underlying

Funds

 

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares

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

BlackRock Cash Funds: Treasury, SL Agency Shares

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

 

 

   

 

 

   

 

 

     

 

 

   

 

 

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

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 

 

  (b) 

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

 

 
Description   

Number of

Contracts

   

Expiration

Date

    

Notional

Amount

(000)

    

Value/

Unrealized

Appreciation

(Depreciation)

 

 

 

Long Contracts

          

Mini TOPIX Index

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

E-Mini S&P Communication Services Select Sector Index

     6       06/16/23        459        17,560  

Euro STOXX 50 Index

     2       06/16/23        92        3,522  
          

 

 

 
           $ 25,764  
          

 

 

 

 

 

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

  27


Schedule of Investments  (continued)

March 31, 2023

  

iShares® Global Comm Services ETF

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

 

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

 

 

Assets — Derivative Financial Instruments

                    

Futures contracts

                    

Unrealized appreciation on futures contracts(a)

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

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Net cumulative unrealized appreciation (depreciation) on futures contracts are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended March 31, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

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

 

 

Net Realized Gain (Loss) from

                    

Futures contracts

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

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                    

Futures contracts

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

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Futures contracts

  

Average notional value of contracts — long

   $ 312,216      

 

 

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

 

 
     Level 1        Level 2        Level 3        Total  

 

 

Assets

                 

Investments

                 

Long-Term Investments

                 

Common Stocks

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

Preferred Stocks

              135,853                   135,853  

Short-Term Securities

                 

Money Market Funds

     1,564,044                            1,564,044  
  

 

 

      

 

 

      

 

 

      

 

 

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

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(a)

                 

Assets

                 

Equity Contracts

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

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

28  

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


Schedule of Investments  

March 31, 2023

  

iShares® Global Consumer Discretionary ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Australia — 1.2%            

Aristocrat Leisure Ltd.

    36,867     $ 921,768  

Lottery Corp. Ltd. (The)

    124,827       429,325  

Wesfarmers Ltd.

    63,590       2,149,247  
   

 

 

 
          3,500,340  
Brazil — 0.1%            

Lojas Renner SA

    53,987       176,497  

Magazine Luiza SA(a)

    155,896       101,809  
   

 

 

 
      278,306  
Canada — 1.2%            

Canadian Tire Corp. Ltd., Class A, NVS

    3,008       392,542  

Dollarama Inc.

    15,954       953,463  

Gildan Activewear Inc.

    10,143       336,974  

Magna International Inc.

    14,955       801,030  

Restaurant Brands International Inc.

    17,155       1,151,664  
   

 

 

 
      3,635,673  
Chile — 0.0%            

Falabella SA

    41,874       96,297  
   

 

 

 

China — 7.2%

   

Alibaba Group Holding Ltd.(a)

    867,900       10,992,376  

ANTA Sports Products Ltd.

    60,600       879,858  

BYD Co. Ltd., Class H

    49,000       1,441,391  

JD.com Inc., Class A

    134,800       2,943,519  

Li Ning Co. Ltd.

    131,500       1,034,104  

Meituan, Class B(a)(b)

    264,400       4,796,802  
   

 

 

 
      22,088,050  
Denmark — 0.2%            

GN Store Nord A/S(a)

    7,694       172,520  

Pandora A/S

    5,355       514,017  
   

 

 

 
      686,537  
France — 7.5%            

Accor SA(a)

    9,536       310,026  

Cie. Generale des Etablissements Michelin SCA

    40,048       1,224,198  

Hermes International

    1,953       3,955,324  

Kering SA

    4,036       2,633,198  

LVMH Moet Hennessy Louis Vuitton SE

    14,650       13,447,357  

Renault SA(a)

    11,609       473,138  

Sodexo SA

    4,713       460,321  

Valeo

    13,099       268,788  
   

 

 

 
      22,772,350  
Germany —3.0%            

adidas AG

    10,018       1,775,915  

Bayerische Motoren Werke AG

    17,893       1,961,048  

Continental AG

    6,057       453,847  

Delivery Hero SE(a)(b)

    10,651       363,358  

Mercedes-Benz Group AG

    43,774       3,366,341  

Puma SE

    5,793       359,122  

Volkswagen AG

    1,662       285,075  

Zalando SE(a)(b)

    12,562       526,480  
   

 

 

 
      9,091,186  
Ireland — 0.5%            

Flutter Entertainment PLC, Class DI(a)

    8,592       1,563,497  
   

 

 

 

Italy —1.6%

   

Ferrari NV

    7,176       1,944,578  

Moncler SpA

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

Stellantis NV

    121,307     $ 2,206,122  
   

 

 

 
      4,959,113  
Japan — 11.6%            

Aisin Corp.

    10,400       286,650  

Bandai Namco Holdings Inc.

    37,500       808,468  

Bridgestone Corp.

    34,400       1,397,421  

Denso Corp.

    28,400       1,603,106  

Fast Retailing Co. Ltd.

    10,500       2,298,581  

Honda Motor Co. Ltd.

    95,843       2,535,159  

Isuzu Motors Ltd.

    34,900       417,089  

Nissan Motor Co. Ltd.

    132,400       501,079  

Nitori Holdings Co. Ltd.

    4,900       591,733  

Oriental Land Co. Ltd./Japan

    65,500       2,242,669  

Pan Pacific International Holdings Corp.

    30,200       584,256  

Panasonic Holdings Corp.

    130,700       1,169,387  

Rakuten Group Inc.

    50,400       235,055  

Sekisui House Ltd.

    38,600       786,716  

Shimano Inc.

    4,700       814,913  

Sony Group Corp.

    70,800       6,448,703  

Subaru Corp.

    34,488       550,553  

Sumitomo Electric Industries Ltd.

    44,400       570,403  

Suzuki Motor Corp.

    27,400       997,837  

Toyota Motor Corp.

    705,000       10,035,956  

Yamaha Motor Co. Ltd.

    19,513       510,671  
   

 

 

 
          35,386,405  

Netherlands — 1.7%

   

Prosus NV

    65,293       5,112,703  
   

 

 

 

South Korea — 0.7%

   

Hyundai Motor Co.

    7,908       1,125,091  

Kia Corp.

    15,004       936,371  
   

 

 

 
      2,061,462  
Spain — 1.3%            

Amadeus IT Group SA(a)

    25,264       1,694,798  

Industria de Diseno Textil SA

    62,924       2,113,944  
   

 

 

 
      3,808,742  
Sweden — 0.7%            

Electrolux AB, Class B

    13,063       158,773  

Evolution AB(b)

    10,736       1,438,391  

H & M Hennes & Mauritz AB, Class B

    40,139       573,889  
   

 

 

 
      2,171,053  
Switzerland — 1.8%            

Cie. Financiere Richemont SA, Class A, Registered

    29,258       4,691,697  

Swatch Group AG (The), Bearer

    1,622       558,602  

Swatch Group AG (The), Registered

    3,139       199,033  
   

 

 

 
      5,449,332  
United Kingdom — 2.4%            

Barratt Developments PLC

    56,915       327,533  

Berkeley Group Holdings PLC

    6,358       329,395  

Burberry Group PLC

    22,705       727,010  

Compass Group PLC

    100,130       2,516,421  

Entain PLC

    33,024       512,866  

InterContinental Hotels Group PLC

    10,589       693,216  

Kingfisher PLC

    109,846       355,078  

Next PLC

    7,248       589,116  

Pearson PLC

    40,093       419,570  

Persimmon PLC

    17,412       270,368  

Taylor Wimpey PLC

    204,708       301,160  

 

 

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

  29


Schedule of Investments  (continued)

March 31, 2023

  

iShares® Global Consumer Discretionary ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
United Kingdom (continued)            

Whitbread PLC

    11,305     $ 417,621  
   

 

 

 
      7,459,354  
United States — 56.2%            

Advance Auto Parts Inc.

    3,383       411,407  

Amazon.com Inc.(a)

    309,167       31,933,859  

Aptiv PLC(a)

    15,194       1,704,615  

AutoZone Inc.(a)

    1,052       2,585,974  

Bath & Body Works Inc.

    12,810       468,590  

Best Buy Co. Inc.

    11,077       866,997  

Booking Holdings Inc.(a)

    2,178       5,776,949  

BorgWarner Inc.

    13,129       644,765  

Caesars Entertainment Inc.(a)

    12,032       587,282  

CarMax Inc.(a)(c)

    8,862       569,649  

Carnival Corp.(a)(c)

    56,202       570,450  

Chipotle Mexican Grill Inc.(a)

    1,555       2,656,391  

Darden Restaurants Inc.

    6,850       1,062,846  

Domino’s Pizza Inc.

    2,005       661,389  

DR Horton Inc.

    17,525       1,712,017  

eBay Inc.

    30,432       1,350,268  

Etsy Inc.(a)(c)

    7,047       784,542  

Expedia Group Inc.(a)

    8,241       799,624  

Ford Motor Co.

    219,581       2,766,721  

Garmin Ltd.

    8,598       867,710  

General Motors Co.

    78,170       2,867,276  

Genuine Parts Co.

    7,905       1,322,586  

Hasbro Inc.

    7,321       393,064  

Hilton Worldwide Holdings Inc.

    14,942       2,104,880  

Home Depot Inc. (The)

    44,827       13,229,344  

Las Vegas Sands Corp.(a)

    18,429       1,058,746  

Lennar Corp., Class A

    14,218       1,494,454  

LKQ Corp.

    14,233       807,865  

Lowe’s Companies Inc.

    33,912       6,781,383  

Marriott International Inc./MD, Class A

    15,089       2,505,378  

McDonald’s Corp.

    41,100       11,491,971  

MGM Resorts International

    17,650       784,013  

Mohawk Industries Inc.(a)

    2,993       299,958  

Newell Brands Inc., NVS

    20,445       254,336  

Nike Inc., Class B

    69,916       8,574,498  

Norwegian Cruise Line Holdings Ltd.(a)

    23,829       320,500  

NVR Inc.(a)

    170       947,272  

O’Reilly Automotive Inc.(a)

    3,495       2,967,185  

Pool Corp.

    2,207       755,765  

PulteGroup Inc.

    12,652       737,359  

Ralph Lauren Corp.

    2,343       273,358  

Ross Stores Inc.

    19,312       2,049,583  

Royal Caribbean Cruises Ltd.(a)

    12,324       804,757  

Starbucks Corp.

    64,536       6,720,134  

Tapestry Inc.

    13,139       566,422  

Tesla Inc.(a)

    148,635           30,835,817  

TJX Companies Inc. (The)

    64,923       5,087,366  
Security   Shares     Value  

 

 
United States (continued)            

Tractor Supply Co.

    6,194     $ 1,455,838  

Ulta Beauty Inc.(a)

    2,852       1,556,251  

VF Corp.

    18,557       425,141  

Whirlpool Corp.

    3,056       403,453  

Wynn Resorts Ltd.(a)

    5,782       647,064  

Yum! Brands Inc.

    15,694       2,072,863  
   

 

 

 
      171,377,925  
   

 

 

 

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

      301,498,325  
   

 

 

 

Preferred Stocks

   

Germany —0.7%

   

Bayerische Motoren Werke AG, Preference Shares, NVS

    3,356       343,045  

Porsche Automobil Holding SE, Preference Shares, NVS

    8,587       492,954  

Volkswagen AG, Preference Shares, NVS

    10,292       1,404,572  
   

 

 

 
      2,240,571  
South Korea — 0.1%            

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

    2,089       154,308  
   

 

 

 

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

      2,394,879  
   

 

 

 

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

      303,893,204  
   

 

 

 

Short-Term Securities

 

Money Market Funds — 0.5%            

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

    1,455,152       1,455,589  

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

    260,000       260,000  
   

 

 

 

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

 

    1,715,589  
   

 

 

 

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

 

    305,608,793  

Liabilities in Excess of Other Assets — (0.2)%

 

    (692,143
   

 

 

 

Net Assets — 100.0%

 

  $  304,916,650  
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

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

(c) 

All or a portion of this security is on loan.

(d) 

Affiliate of the Fund.

(e) 

Annualized 7-day yield as of period end.

(f) 

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

 

 

30  

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


Schedule of Investments  (continued)

March 31, 2023

  

iShares® Global Consumer Discretionary ETF

 

Affiliates

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

 

 

 
Affiliated Issuer  

Value at

03/31/22

   

Purchases

at Cost

   

Proceeds

from Sale

   

Net Realized

Gain (Loss)

   

Change in

Unrealized

Appreciation

(Depreciation)

   

Value at

03/31/23

   

Shares

Held at

03/31/23

    Income    

Capital

Gain

Distributions

from

Underlying

Funds

 

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares

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

BlackRock Cash Funds: Treasury, SL Agency Shares

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

 

 

   

 

 

   

 

 

     

 

 

   

 

 

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

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 

 

  (b) 

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

 

 
Description   

Number of

Contracts

   

Expiration

Date

    

Notional
Amount

(000)

    

Value/

Unrealized

Appreciation

(Depreciation)

 

 

 

Long Contracts

          

TOPIX Index

     1       06/08/23      $ 152      $ 159  

E-Mini Consumer Discretionary Index

     3       06/16/23        457        24,513  

Euro STOXX 50 Index

     7       06/16/23        324        10,895  
          

 

 

 
           $ 35,567  
          

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

 

 
    

Commodity

Contracts

    

Credit

Contracts

    

Equity

Contracts

    

Foreign

Currency

Exchange

Contracts

    

Interest

Rate

Contracts

    

Other

Contracts

     Total  

 

 

Assets — Derivative Financial Instruments

                    

Futures contracts

                    

Unrealized appreciation on futures contracts(a)

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

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Net cumulative unrealized appreciation (depreciation) on futures contracts are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended March 31, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

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

 

 

Net Realized Gain (Loss) from

                    

Futures contracts

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

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                    

Futures contracts

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

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Futures contracts

  

Average notional value of contracts — long

   $ 820,257      

 

 

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

 

 

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

  31


Schedule of Investments  (continued)

March 31, 2023

  

iShares® Global Consumer Discretionary ETF

 

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

 

 
     Level 1        Level 2        Level 3        Total  

 

 

Assets

                 

Investments

                 

Long-Term Investments

                 

Common Stocks

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

Preferred Stocks

              2,394,879                   2,394,879  

Short-Term Securities

                 

Money Market Funds

     1,715,589                            1,715,589  
  

 

 

      

 

 

      

 

 

      

 

 

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

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(a)

                 

Assets

                 

Equity Contracts

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

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

32  

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


Schedule of Investments  

March 31, 2023

  

iShares® Global Consumer Staples ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Australia — 1.5%            

Coles Group Ltd.

    504,546     $ 6,096,261  

Endeavour Group Ltd./Australia

    518,262       2,354,618  

Treasury Wine Estates Ltd.

    274,850       2,412,852  

Woolworths Group Ltd.

    463,177       11,775,210  
   

 

 

 
      22,638,941  
Belgium — 1.6%            

Anheuser-Busch InBev SA/NV

    375,941       25,060,165  
   

 

 

 
Brazil — 0.4%            

Ambev SA, ADR

    1,657,110       4,673,050  

Natura & Co. Holding SA

    321,252       836,652  
   

 

 

 
      5,509,702  
Canada — 2.0%            

Alimentation Couche-Tard Inc.

    291,070       14,634,263  

George Weston Ltd.

    24,645       3,265,941  

Loblaw Companies Ltd.

    57,988       5,284,781  

Metro Inc.

    89,580       4,927,397  

Saputo Inc.

    92,840       2,402,231  
   

 

 

 
          30,514,613  
Chile — 0.1%            

Cencosud SA

    513,472       992,204  
   

 

 

 
Denmark — 0.4%            

Carlsberg AS, Class B

    37,473       5,814,568  
   

 

 

 
Finland — 0.1%            

Kesko OYJ, Class B

    103,995       2,234,988  
   

 

 

 
France — 5.2%            

Carrefour SA

    220,262       4,453,166  

Danone SA

    241,886       15,051,019  

L’Oreal SA

    95,604       42,719,943  

Pernod Ricard SA

    77,519       17,552,694  
   

 

 

 
      79,776,822  
Germany —0.6%            

Beiersdorf AG

    36,933       4,804,515  

HelloFresh SE(a)

    65,457       1,560,974  

Henkel AG & Co. KGaA

    37,584       2,734,113  
   

 

 

 
      9,099,602  
Ireland — 0.4%            

Kerry Group PLC, Class A

    59,301       5,913,808  
   

 

 

 
Japan — 5.4%            

Aeon Co. Ltd.

    331,417       6,429,754  

Ajinomoto Co. Inc.

    202,600       7,048,018  

Asahi Group Holdings Ltd.

    192,298       7,156,951  

Japan Tobacco Inc.

    415,500       8,776,833  

Kao Corp.

    176,900       6,885,879  

Kikkoman Corp.

    73,300       3,742,221  

Kirin Holdings Co. Ltd.

    316,396       5,005,629  

MEIJI Holdings Co. Ltd.

    107,200       2,549,564  

Nissin Foods Holdings Co. Ltd.

    30,300       2,770,625  

Seven & i Holdings Co. Ltd.

    303,037       13,689,425  

Shiseido Co. Ltd.

    152,300       7,140,318  

Unicharm Corp.

    167,400       6,881,098  

Yakult Honsha Co. Ltd.

    60,420       4,390,139  
   

 

 

 
      82,466,454  
Mexico — 1.1%            

Fomento Economico Mexicano SAB de CV

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

Grupo Bimbo SAB de CV, Series A

    522,762     $ 2,630,636  

Wal-Mart de Mexico SAB de CV

    1,927,456       7,704,476  
   

 

 

 
      17,003,059  
Netherlands — 1.7%            

Heineken Holding NV

    41,668       3,822,960  

Heineken NV

    89,913       9,661,220  

Koninklijke Ahold Delhaize NV

    376,489       12,862,787  
   

 

 

 
          26,346,967  
Norway —0.3%            

Mowi ASA

    173,262       3,204,652  

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%
(Cost: $1,463,415,766)

 

    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%
(Cost: $5,952,205)

 

    5,306,842  
   

 

 

 

Total Long-Term Investments — 99.4%
(Cost: $1,469,367,971)

 

    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%
(Cost: $2,050,000)

 

    2,050,000  
   

 

 

 

Total Investments — 99.5%
(Cost: $1,471,417,971)

 

    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%
(Cost: $1,661,417,442)

 

    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%
(Cost: $25,048,902)

      14,699,715  
   

 

 

 

Total Long-Term Investments — 99.5%
(Cost: $1,686,466,344)

      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%
(Cost: $3,710,000)

      3,710,000  
   

 

 

 

Total Investments — 99.7%
(Cost: $1,690,176,344)

      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%
(Cost: $484,830,169)

 

      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%
(Cost: $3,609,754)

 

    2,387,154  
   

 

 

 

Total Long-Term Investments — 99.1%
(Cost: $488,439,923)

 

    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%
(Cost: $1,368,377)

 

    1,368,304  
   

 

 

 

Total Investments — 99.4%
(Cost: $489,808,300)

 

    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
Distributions

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%
(Cost: $3,579,998,148)

 

    4,059,724,265  
   

 

 

 

Preferred Stocks

   
Germany —0.2%            

Sartorius AG, Preference Shares, NVS

    15,750       6,637,936  
   

 

 

 

Total Preferred Stocks — 0.2%
(Cost: $5,615,757)

 

    6,637,936  
   

 

 

 

Total Long-Term Investments — 99.6%
(Cost: $3,585,613,905)

 

    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%
(Cost: $34,881,094)

 

    34,886,449  
   

 

 

 

Total Investments — 100.4%
(Cost: $3,620,494,999)

 

    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%
(Cost: $350,943,349)

 

    335,054,899  
   

 

 

 

Rights

   

Brazil — 0.0%

   

Localiza Rent a Car SA, Rights,
(Expires 05/18/23, Strike Price BRL 41.15)

    206       534  
   

 

 

 

Total Rights — 0.0%
(Cost: $—)

 

    534  
   

 

 

 

Total Long-Term Investments — 99.5%
(Cost: $350,943,349)

 

        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%
(Cost: $4,129,689)

 

    4,129,037  
   

 

 

 

Total Investments — 100.7%
(Cost: $355,073,038)

 

    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
03/31/23

    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%
(Cost: $390,913,435)

      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%
(Cost: $1,595,789)

 

    1,024,824  
   

 

 

 

Total Long-Term Investments — 99.1%
(Cost: $392,509,224)

 

    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%
(Cost: $2,181,519)

      2,181,059  
   

 

 

 

Total Investments — 99.7%
(Cost: $394,690,743)

 

    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
Amount

(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
Contracts

    

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


Schedule of Investments

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%
(Cost: $2,529,588,557)

 

    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%
(Cost: $8,002,602)

 

    9,874,187  
   

 

 

 

Total Long-Term Investments — 99.6%
(Cost: $2,537,591,159)

      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%
(Cost: $11,945,627)

 

    11,943,870  
   

 

 

 

Total Investments — 100.0%
(Cost: $2,549,536,786)

 

    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
03/31/23

     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%
(Cost: $153,128,276)

 

    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%
(Cost: $110,000)

 

    110,000  
   

 

 

 

Total Investments — 99.7%
(Cost: $153,238,276)

 

    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


Statements of Operations

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


Financial Highlights

(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


Notes to Financial Statements

 

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
Carryforwards

 


(a) 

   
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
 

 

 

      

 

 

      

 

 

   

 

 

 
    (8,450,000      $ (598,208,666        8,150,000     $ 666,670,761  
 

 

 

      

 

 

      

 

 

   

 

 

 

Global Healthcare

             

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
 

 

 

      

 

 

      

 

 

   

 

 

 
    9,000,000        $ 750,358,066          4,800,000     $ 407,814,541  
 

 

 

      

 

 

      

 

 

   

 

 

 

Global Industrials

             

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
 

 

 

      

 

 

      

 

 

   

 

 

 
    (300,000      $ (27,176,051        (400,000   $ (45,709,099
 

 

 

      

 

 

      

 

 

   

 

 

 

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
 

 

 

      

 

 

      

 

 

   

 

 

 
    (3,550,000      $ (273,573,823        (600,000   $ (46,291,020
 

 

 

      

 

 

      

 

 

   

 

 

 

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
 

 

 

      

 

 

      

 

 

   

 

 

 
    (28,000,000      $  (1,320,298,332        (12,250,000   $ (616,406,539
 

 

 

      

 

 

      

 

 

   

 

 

 

Global Utilities

             

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
 

 

 

      

 

 

      

 

 

   

 

 

 
    (500,000      $ (25,424,599        250,000     $ 17,649,357  
 

 

 

      

 

 

      

 

 

   

 

 

 

 

  (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).

 

 

T R U S T E E   A N D   O F F I C E R   I N F O R M A T I O N

  101


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).

 

 

102  

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)  (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.

 

 

T R U S T E E   A N D   O F F I C E R   I N F O R M A T I O N

  103


General Information

 

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.

 

 

104  

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


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

  105


 

 

 

THIS PAGE INTENTIONALLY LEFT BLANK.


 

 

 

THIS PAGE INTENTIONALLY LEFT BLANK.


 

 

 

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

 

 

LOGO

   LOGO