Table of Contents

 

LOGO

  AUGUST 31, 2022

 

   

  

2022 Annual Report

 

 

iShares, Inc.

· iShares MSCI Brazil ETF | EWZ | NYSE Arca

· iShares MSCI Chile ETF | ECH | Cboe BZX

· iShares MSCI Israel ETF | EIS | NYSE Arca

· iShares MSCI South Africa ETF | EZA | NYSE Arca

· iShares MSCI Turkey ETF | TUR | NASDAQ


Table of Contents

The Markets in Review

Dear Shareholder,

The 12-month reporting period as of August 31, 2022 saw the emergence of significant challenges that disrupted the economic recovery and strong financial markets of 2021. The U.S. economy shrank in the first half of 2022, ending the run of robust growth that followed the reopening of global economies and the development of COVID-19 vaccines. Changes in consumer spending patterns and a tight labor market led to elevated inflation, which reached a 40-year high. Moreover, while the foremost effect of Russia’s invasion of Ukraine has been a severe humanitarian crisis, the ongoing war continued to present challenges for both investors and policymakers.

Equity prices fell as interest rates rose, particularly weighing on relatively high-valuation growth stocks and economically sensitive small-capitalization stocks. While both large- and small-capitalization U.S. stocks fell, declines for small-capitalization U.S. stocks were steeper. Both emerging market stocks and international equities from developed markets fell significantly, pressured by rising interest rates and a strengthening U.S. dollar.

The 10-year U.S. Treasury yield (which is inversely related to bond prices) rose notably during the reporting period as investors reacted to higher inflation and attempted to anticipate its impact on future interest rate changes. The corporate bond market also faced inflationary headwinds, and increasing uncertainty led to higher corporate bond spreads (the difference in yield between U.S. Treasuries and similarly-dated corporate bonds).

The U.S. Federal Reserve (the “Fed”), acknowledging that inflation is growing faster than expected, raised interest rates four times while indicating that additional rate hikes were likely. Furthermore, the Fed wound down its bond-buying programs and began to reduce its balance sheet. As investors attempted to assess the Fed’s future trajectory, the Fed’s statements late in the reporting period led markets to believe that additional tightening is likely in the near term.

The horrific war in Ukraine has significantly clouded the outlook for the global economy, leading to major volatility in energy and metals markets. Sanctions on Russia, Europe’s top energy supplier, and general wartime disruption have magnified supply problems for key commodities. We believe elevated energy prices will continue to exacerbate inflationary pressure while also constraining economic growth. Combating inflation without stifling a recovery, while buffering against ongoing supply and price shocks, will be an especially challenging environment for setting effective monetary policy. Despite the likelihood of more rate increases on the horizon, we believe the Fed will ultimately err on the side of protecting employment, even at the expense of higher inflation. In the meantime, however, we are likely to see a period of slowing growth paired with relatively high inflation.

In this environment, while we favor an overweight to equities in the long-term, the market’s concerns over excessive rate hikes from central banks moderate our outlook. Furthermore, the energy shock and a deteriorating economic backdrop in China and Europe are likely to challenge corporate earnings, so we are underweight equities overall in the near term. We take the opposite view on credit, where higher spreads provide near-term opportunities, while the likelihood of higher inflation leads us to take an underweight stance on credit in the long term. We believe that investment-grade corporates, U.K. gilts, local-currency emerging market debt, and inflation-protected bonds (particularly in Europe) offer strong opportunities for a six- to twelve-month horizon.

Overall, our view is that investors need to think globally, extend their scope across a broad array of asset classes, 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 August 31, 2022
     
     6-Month      12-Month   
   

U.S. large cap equities

(S&P 500® Index)

  (8.84)%   (11.23)%
   

U.S. small cap equities

(Russell 2000® Index)

  (9.31)      (17.88)   
   

International equities

(MSCI Europe, Australasia, Far East Index)

  (13.97)      (19.80)   
   

Emerging market equities

(MSCI Emerging Markets

Index)

  (13.30)      (21.80)   
   

3-month Treasury bills

(ICE BofA 3-Month

U.S. Treasury Bill Index)

  0.36       0.39    
   

U.S. Treasury securities

(ICE BofA 10-Year

U.S. Treasury Index)

  (9.71)      (13.27)   
   

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

  (7.76)      (11.52)   
   

Tax-exempt municipal bonds (Bloomberg Municipal Bond Index)

  (5.72)      (8.63)   
   

U.S. high yield bonds

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

  (7.78)      (10.61)   

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

Table of Contents

 

      Page

The Markets in Review

   2

Annual Report:

  

Market Overview

   4

Fund Summary

   5

About Fund Performance

   15

Disclosure of Expenses

   15

Schedules of Investments

   16

Financial Statements

  

Statements of Assets and Liabilities

   30

Statements of Operations

   32

Statements of Changes in Net Assets

   34

Financial Highlights

   37

Notes to Financial Statements

   42

Report of Independent Registered Public Accounting Firm

   51

Important Tax Information

   52

Board Review and Approval of Investment Advisory Contract

   53

Supplemental Information

   55

Director and Officer Information

   57

General Information

   60

Glossary of Terms Used in this Report

   61

 

 

 

 


Table of Contents

Market Overview

 

 

iShares, Inc.

Global Market Overview

Global equity markets declined in U.S. dollar terms during the 12 months ended August 31, 2022 (“reporting period”). The MSCI ACWI, a broad global equity index that includes both developed and emerging markets, returned -15.88% in U.S. dollar terms for the reporting period.

For the first third of the reporting period, economic recovery supported stocks in most regions of the world. The global economy continued to rebound from the impact of restrictions imposed at the beginning of the coronavirus pandemic, as mitigation and adaptation allowed most economic activity to continue. However, substantial challenges emerged at the beginning of 2022 which negatively affected stock prices. Inflation rose significantly in many countries, reducing consumers’ purchasing power and leading many central banks to tighten monetary policy. Russia’s invasion of Ukraine presented a further challenge to the global economy, disrupting important commodities markets.

The U.S. economy grew briskly over the final half of 2021, powered primarily by consumer spending. Record-high personal savings rates allowed consumers to spend at an elevated level, releasing pent-up demand for goods and services. Growth subsequently stalled in the first half of 2022, and the economy contracted amid lower inventories and faltering business investment. Despite the economic downturn, unemployment declined substantially, falling to 3.7% in August 2022 while the number of long-term unemployed dropped below the pre-pandemic level. Although high inflation negatively impacted consumer sentiment, which declined significantly, consumer spending continued to grow.

Rising inflation led to a shift in policy from the U.S. Federal Reserve (“the Fed”). As the reporting period began, the Fed was using accommodative monetary policy to stimulate the economy. Short-term interest rates were kept at near-zero levels, and the Fed used bond-buying programs to stabilize debt markets. However, rising prices led the Fed to tighten monetary policy during the reporting period in an attempt to prevent runaway inflation. The Fed slowed and then ended its bond-buying activities, finally reversing course as it began to reduce its balance sheet in June 2022. In March 2022, the Fed began to raise short-term interest rates, followed by three more increases for a total increase of 225 basis points, the most rapid rise in decades. Interest rates rose significantly in response, leading to higher borrowing costs for businesses. In that environment, the U.S. dollar significantly appreciated relative to most foreign currencies.

Stocks declined in Europe in U.S. dollar terms as economic growth stalled and the euro declined sharply relative to the U.S. dollar. Significantly higher inflation and Russia’s invasion of Ukraine negatively impacted equities. Russia is an important trading partner with many European countries, and new sanctions imposed limits on certain types of trade with Russia. Investors became concerned that the sharp rise in energy prices during the reporting period would constrain economic growth, as Europe relies on imported energy for much of its industrial and heating needs. The European Central Bank (“ECB”) responded to elevated inflation by raising interest rates in July 2022, the first such increase in over a decade.

Despite relatively low inflation by global standards, Asia-Pacific stocks declined significantly in U.S. dollar terms. Chinese stocks faced significant headwinds amid regulatory interventions by the Chinese government and strict lockdowns following COVID-19 outbreaks. Japanese stocks also declined amid an economic contraction in the first quarter of 2022 and a sharp decline in the Japanese yen relative to the U.S. dollar. Emerging market stocks declined substantially, as higher interest rates and a strengthening U.S. dollar raised the cost of borrowing in many emerging economies.

 

 

4  

2 0 2 2   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


Table of Contents
Fund Summary as of August 31, 2022       iShares® MSCI Brazil ETF

 

Investment Objective

The iShares MSCI Brazil ETF (the “Fund”) seeks to track the investment results of an index composed of Brazilian equities, as represented by the MSCI Brazil 25/50 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

    (6.05 )%      (0.97 )%      (1.88 )%         (6.05 )%      (4.77 )%      (17.30 )% 

Fund Market

    (5.48     (0.93     (1.89        (5.48     (4.56     (17.36

Index

    (5.72     (0.15     (1.14          (5.72     (0.74     (10.83

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

Index performance through February 11, 2013 reflects the performance of the MSCI Brazil Index. Index performance beginning on February 12, 2013 reflects the performance of the MSCI Brazil 25/50 Index.

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

(03/01/22)

 

 

 

      

Ending

Account Value

(08/31/22)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

          

Beginning

Account Value

(03/01/22)

 

 

 

      

Ending

Account Value

(08/31/22)

 

 

 

      

Expenses
Paid During

the Period

 
 

(a) 

      

Annualized

Expense

Ratio

 

 

 

      $       1,000.00          $        962.80          $         2.87           $       1,000.00          $       1,022.30          $         2.96          0.58

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (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


Table of Contents
Fund Summary as of August 31, 2022   (continued)    iShares® MSCI Brazil ETF

 

Portfolio Management Commentary

Brazilian stocks declined during the reporting period, retreating from a post-coronavirus pandemic high in April 2022, amid high inflation, rising interest rates, and slowing economic growth. Rising commodities prices and a shift toward value stocks bolstered the market in early 2022 as exports rose to multi-decade highs. Prices for oil, metals, and agricultural commodities, which are Brazil’s primary exports, increased, especially after Russia invaded Ukraine. However, Brazilian equities declined late in the reporting period as slowing global growth and recessionary concerns started to weigh on commodities prices.

The materials sector was the largest detractor from the Index’s return. Metals and mining stocks declined as prices for iron ore, a key steelmaking ingredient, fell sharply amid concerns about demand from China, where a property market slump and pandemic-related restrictions drove steelmakers to reduce production. Lower prices and higher costs for logistics and fuel pressured margins and weighed on mining companies’ earnings.

The consumer discretionary sector also detracted solidly from the Index’s return amid high inflation, supply-chain disruptions, and weakening consumer sentiment. Retailers declined amid rising interest rates and high levels of consumer debt, while inflation pressured margins and profits. E-commerce sales also showed signs of slowing as customers returned to brick-and-mortar stores.

Conversely, the energy sector was the largest contributor to the Index’s return, advancing as oil, coal, and natural gas prices rose sharply in early 2022 and remained historically high as supply failed to keep pace with demand. Supply constraints following Russia’s invasion of Ukraine and the resulting international sanctions against Russia, a key exporter of natural gas and oil, further supported prices. Sharp increases in prices drove stronger margins and profits for the integrated oil and gas industry, while large dividends further supported the industry.

Portfolio Information

 

SECTOR ALLOCATION  
   
Sector    

Percent of

Total Investments

 

(a) 

Financials

    24.5

Materials

    20.0  

Energy

    19.4  

Consumer Staples

    8.9  

Utilities

    8.7  

Industrials

    8.3  

Consumer Discretionary

    4.0  

Health Care

    3.5  

Communication Services

    2.0  

Information Technology

    0.7  

 

  (a) 

Excludes money market funds.

 
TEN LARGEST HOLDINGS  
   
Security    

Percent of

Total Investments

 

(a) 

Vale SA

    14.4

Petroleo Brasileiro SA (Preferred)

    8.8  

Petroleo Brasileiro SA

    7.7  

Itau Unibanco Holding SA (Preferred)

    6.9  

Banco Bradesco SA (Preferred)

    4.9  

B3 SA - Brasil, Bolsa, Balcao

    4.0  

Ambev SA

    3.9  

WEG SA

    2.8  

Localiza Rent a Car SA

    2.7  

Centrais Eletricas Brasileiras SA

    2.7  

 

 

6  

2 0 2 2   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


Table of Contents
Fund Summary as of August 31, 2022     iShares® MSCI Chile ETF

 

Investment Objective

The iShares MSCI Chile ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Chilean equities, as represented by the MSCI Chile IMI 25/50 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

    3.93 %(a)      (7.64 )%      (5.29 )%         3.93 %(a)      (32.78 )%      (41.92 )% 

Fund Market

    4.39       (7.57     (5.20        4.39       (32.55     (41.37

Index

    3.84       (7.59     (5.16          3.84       (32.60     (41.10

 

  (a) 

The NAV total return presented in the table for the one-year period differs from the same period return disclosed in the financial highlights. The total return in the financial highlights is calculated in the same manner but differs due to certain adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

 

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

Index performance through February 11, 2013 reflects the performance of the MSCI Chile Investable Market Index. Index performance beginning on February 12, 2013 reflects the performance of the MSCI Chile IMI 25/50 Index.

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

(03/01/22)

 

 

 

      

Ending

Account Value

(08/31/22)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

          

Beginning

Account Value

(03/01/22)

 

 

 

      

Ending

Account Value

(08/31/22)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

      

Annualized

Expense

Ratio

 

 

 

      $       1,000.00          $       1,100.20          $         3.07           $      1,000.00          $      1,022.30          $         2.96          0.58

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (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


Table of Contents
Fund Summary as of August 31, 2022   (continued)    iShares® MSCI Chile ETF

 

Portfolio Management Commentary

Stocks in Chile advanced modestly during the reporting period, supported by surging prices for raw materials, as exports of raw materials comprise a significant portion of Chile’s economic output. However, those higher prices also contributed to inflation, leading to interest rate increases and constraining domestic demand. Currency weakness exacerbated price pressures. In July 2022, Chile’s central bank intervened to aid the Chilean peso, which had fallen to a record low relative to the U.S. dollar. Late in the reporting period, amid heightened uncertainty regarding a scheduled constitutional referendum in September 2022, inflation reached its highest level in almost three decades and recession concerns mounted.

The Chilean materials sector contributed the most to the Index’s performance, particularly the chemicals industry. Prices for fertilizer and agricultural chemicals surged amid the imposition of economic and trade sanctions on Russia and Belarus, the world’s second- and third-largest producers of potash, a key fertilizer nutrient. Lithium prices also rose considerably, lifting profits for a large Chilean exporter of that important component of electric vehicle batteries. Prices for mineral salts reached record highs, supporting substantial revenue gains for all related products. Sales volumes of industrial chemicals also increased, as did sales and prices for iodine and associated products.

On the downside, the consumer staples, utilities, and consumer discretionary sectors detracted from the Index’s return. Profit margins declined in the beverages industry amid rising raw material and packaging costs and the depreciation of local currencies against the U.S. dollar. Rising costs also constrained margins for the electric utilities industry, as companies had to pay considerably more for raw materials to generate power. In the consumer discretionary sector, reduced consumer spending and rising costs for goods from suppliers similarly pressured margins at department stores.

Portfolio Information

 

SECTOR ALLOCATION  
   

Sector

   

Percent of

Total Investments

 

(a) 

Materials

    29.6

Financials

    21.7  

Utilities

    14.0  

Consumer Staples

    13.4  

Energy

    8.0  

Real Estate

    4.3  

Consumer Discretionary

    3.9  

Industrials

    3.3  

Communication Services

    1.8  

 

  (a) 

Excludes money market funds.

 
TEN LARGEST HOLDINGS  

Security

   

Percent of

Total Investments

 

(a) 

Sociedad Quimica y Minera de Chile SA (Preferred), Class B

    23.2

Banco de Chile

    10.2  

Empresas COPEC SA

    8.0  

Banco de Credito e Inversiones SA

    4.6  

Banco Santander Chile

    4.5  

Empresas CMPC SA

    4.3  

Falabella SA

    3.9  

Enel Americas SA

    3.9  

Cencosud SA

    3.8  

Cia. Sud Americana de Vapores SA

    3.3  

 

 

8  

2 0 2 2   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


Table of Contents
Fund Summary as of August 31, 2022    iShares® MSCI Israel ETF

 

Investment Objective

The iShares MSCI Israel ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Israeli equities, as represented by the MSCI Israel Capped Investable Market 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

    (6.38 )%      8.01     7.73        (6.38 )%      46.97     110.59

Fund Market

    (6.34     7.91       7.77          (6.34     46.35       111.35  

Index

    (5.47     8.70       8.21            (5.47     51.73       120.13  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

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

(03/01/22)


 

 

      

Ending

Account Value

(08/31/22)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

 

    

   

Beginning

Account Value

(03/01/22)

 

 

 

      

Ending

Account Value

(08/31/22)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

      

Annualized

Expense

Ratio

 

 

 

      $       1,000.00          $         904.30          $        2.78           $      1,000.00          $      1,022.30          $        2.96          0.58

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (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


Table of Contents
Fund Summary as of August 31, 2022   (continued)    iShares® MSCI Israel ETF

 

Portfolio Management Commentary

Stocks in Israel declined for the reporting period amid rising inflation, higher interest rates, and inconsistent economic growth. Israel’s economy contracted in the first quarter of 2022 but rebounded late in the reporting period. Recession fears receded as private consumption increased, and the country’s tourism and hospitality businesses bounced back from pandemic-related shutdowns. Although the country’s inflation rate remained lower than many other developed nations, the Bank of Israel joined other central banks in raising interest rates significantly.

The information technology sector detracted the most from the Index’s return. The IT services industry declined as website creators adjusted to slowing global economic growth and reduced online spending. Israel’s exit from the Russian market and the negative foreign exchange impacts of gains in the U.S. dollar led to revenue declines, prompting expense-reduction measures, including plans to reduce jobs. The application software industry also declined substantially as investors shifted away from high-valuation growth stocks. Growth stocks, which advanced during much of the coronavirus pandemic, declined as economic uncertainty intensified.

The consumer discretionary sector also weighed on the Index’s return. Within the internet and direct marketing retail industry, an online marketplace for freelance work sharply decreased its earnings expectations. Uncertainty regarding revenue from its European markets increased after Russia’s invasion of Ukraine.

On the upside, the financials sector contributed to the Index’s performance as earnings increased at the nation’s largest banks. Net interest income, the difference banks earn from making loans and paying out interest on deposits, increased amid rising interest rates. Banks also benefited from reducing asset provisions set aside during the pandemic to protect against potential loan defaults. The materials sector also contributed as earnings for fertilizer and agricultural chemicals distributors increased, reflecting sharp increases in product prices.

Portfolio Information

 

SECTOR ALLOCATION  
   
Sector    

Percent of

Total Investments

 

(a) 

Financials

    27.2

Information Technology

    26.7  

Real Estate

    11.5  

Industrials

    8.8  

Health Care

    6.7  

Materials

    4.4  

Consumer Discretionary

    3.6  

Communication Services

    3.2  

Utilities

    3.0  

Energy

    2.5  

Consumer Staples

    2.4  

 

  (a) 

Excludes money market funds.

 
TEN LARGEST HOLDINGS  
   
Security    

Percent of

Total Investments

 

(a) 

Bank Leumi Le-Israel BM

    8.3

Nice Ltd.

    6.9  

Bank Hapoalim BM

    6.7  

Check Point Software Technologies Ltd.

    6.2  

Teva Pharmaceutical Industries Ltd.

    5.1  

Israel Discount Bank Ltd., Class A

    3.8  

ICL Group Ltd.

    3.4  

Mizrahi Tefahot Bank Ltd.

    3.2  

CyberArk Software Ltd.

    3.0  

Elbit Systems Ltd.

    2.9  

 

 

10  

2 0 2 2   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


Table of Contents
Fund Summary as of August 31, 2022     iShares® MSCI South Africa ETF

 

Investment Objective

The iShares MSCI South Africa ETF (the “Fund”) seeks to track the investment results of an index composed of South African equities, as represented by the MSCI South Africa 25/50 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

    (16.34 )%      (3.57 )%      (0.74 )%         (16.34 )%      (16.63 )%      (7.11 )% 

Fund Market

    (16.73     (3.60     (0.80        (16.73     (16.74     (7.70

Index

    (15.59     (3.00     (0.12              (15.59     (14.13     (1.20

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

Index performance through August 31, 2017 reflects the performance of the MSCI South Africa Index. Index performance beginning on September 1, 2017 reflects the performance of the MSCI South Africa 25/50 Index.

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

(03/01/22)

 
 

 

      

Ending
Account Value
(08/31/22)
 
 
 
      


Expenses

Paid During
the Period

 


(a) 

           

Beginning
Account Value
(03/01/22)
 
 
 
      

Ending
Account Value
(08/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
      $        1,000.00          $        785.20          $        2.61               $      1,000.00          $      1,022.30          $        2.96          0.58

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (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

  11


Table of Contents
Fund Summary as of August 31, 2022   (continued)    iShares® MSCI South Africa ETF

 

Portfolio Management Commentary

South Africa’s stock market declined substantially for the reporting period amid weak economic growth and interest rate increases targeting high inflation. The nation’s economic output fluctuated between slow growth and contraction. Exports increased, but high unemployment persisted. Power outages from the country’s severely strained electrical grid and challenging operating conditions in the country’s commodities-intensive industries further limited economic output. Meanwhile, the South African Reserve Bank raised interest rates, prompting recession concerns. The declining value of the South African rand relative to the U.S. dollar also diminished the value of South African stocks in U.S. dollar terms.

The materials sector detracted the most from the Index’s return, driven by the metals and mining industry. Prices for precious metals, used for products ranging from semiconductors to catalytic converters, advanced sharply in the wake of Russia’s invasion of Ukraine. However, rising production costs made it difficult for miners to take advantage of the price increases. In addition, labor strikes affected gold mining operations. A decline in metals prices late the reporting period further weighed on the industry’s earnings.

The consumer discretionary sector detracted meaningfully from the Index’s performance, driven by the internet and direct marketing retail industry. Earnings for a leading internet and multimedia company declined sharply, mainly due to its stake in a similar firm in China, where a regulatory crackdown on technology companies slowed online advertising growth. Rising capital costs further pressured the company.

The financials sector also detracted. Although insurance companies benefited from lower coronavirus-related claims, substantial claims from floods in April 2022 reduced earnings. The diversified financial services industry also declined. Rising interest rates prompted significant outflows from the bond market in the second quarter of 2022, adversely affecting the industry.

Portfolio Information

 

SECTOR ALLOCATION

 

   

Sector

   

Percent of

Total Investments


(a) 

Financials

    33.5

Materials

    23.0  

Consumer Discretionary

    18.9  

Communication Services

    8.9  

Consumer Staples

    8.8  

Real Estate

    2.3  

Industrials

    1.7  

Health Care

    1.5  

Energy

    1.4  

TEN LARGEST HOLDINGS

 

   

Security

   

Percent of

Total Investments


(a) 

Naspers Ltd., Class N

    14.1

FirstRand Ltd.

    8.6  

MTN Group Ltd.

    5.6  

Standard Bank Group Ltd.

    5.5  

Sasol Ltd.

    5.0  

Capitec Bank Holdings Ltd.

    4.8  

Impala Platinum Holdings Ltd.

    4.1  

Absa Group Ltd.

    3.8  

Gold Fields Ltd.

    3.3  

Shoprite Holdings Ltd.

    3.1  

 

  (a) 

Excludes money market funds.

 

 

 

12  

2 0 2 2   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


Table of Contents
Fund Summary as of August 31, 2022     iShares® MSCI Turkey ETF

 

Investment Objective

The iShares MSCI Turkey ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Turkish equities, as represented by the MSCI Turkey IMI 25/50 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

    (2.41 )%      (10.75 )%      (6.36 )%         (2.41 )%      (43.36 )%      (48.16 )% 

Fund Market

    (2.35     (10.85     (6.34        (2.35     (43.69     (48.07

Index

    (1.98     (10.52     (6.07              (1.98     (42.65     (46.53

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

Index performance through May 28, 2019 reflects the performance of MSCI Turkey Investable Market Index. Index performance beginning on May 29, 2019 reflects the performance of the MSCI Turkey IMI 25/50 Index.

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
(03/01/22)

 


 

      

Ending
Account Value
(08/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
           

Beginning
Account Value
(03/01/22)
 
 
 
      

Ending
Account Value
(08/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
      $      1,000.00          $      1,221.60          $      3.25               $      1,000.00          $      1,022.30          $      2.96          0.58

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (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


Table of Contents
Fund Summary as of August 31, 2022   (continued)    iShares® MSCI Turkey ETF

 

Portfolio Management Commentary

Stocks in Turkey declined modestly for the reporting period. While central banks around the world, led by the Fed, raised interest rates in response to rising prices, Turkey’s central bank lowered interest rates. That allowed the country’s economy to grow at a relatively strong rate despite losing some momentum in the first half of 2022. However, it also fed the nation’s soaring inflation and sharply decelerating currency. As inflation rose to 80%, Turkish citizens bought stocks as a hedge against the currency’s weakened buying power. Consequently, Turkey’s stock market advanced sharply, particularly in the latter half of the reporting period, outperforming most other global equity markets. However, the Turkish lira’s 54% decline relative to the U.S. dollar weighed notably on Turkey’s market performance in U.S. dollar terms.

The consumer staples sector detracted the most from the Index’s return due to currency effects, even as the food retail industry strengthened domestically. Ahead-of-expectations revenue and earnings propelled the stock of the nation’s leading grocery chain in local currency terms, however, it declined in U.S. dollar terms.

The Turkish lira’s decline also led the communication services sector to detract from the Index’s return. Although the country’s largest wireless telecommunication services provider reported significantly increased revenue and earnings, its stock fell as currency effects diminished the value of those gains in U.S. dollar terms.

On the upside, the industrials sector contributed as Turkey’s leading airline benefited from the currency weakness. Vacation travel increased amid the easing of coronavirus pandemic-related restrictions. The weak currency attracted foreign visitors to the country, improving the industry outlook. The energy sector also contributed as the nation’s largest refining business benefited from elevated fuel prices, significantly boosting revenue and earnings.

Portfolio Information

 

SECTOR ALLOCATION

 

   

Sector

   

Percent of

Total Investments

 

(a) 

Industrials

    25.5

Materials

    19.3  

Consumer Staples

    14.4  

Financials

    13.7  

Consumer Discretionary

    9.3  

Energy

    6.6  

Communication Services

    4.5  

Real Estate

    2.7  

Utilities

    2.5  

Other (each representing less than 1%)

    1.5  

TEN LARGEST HOLDINGS

 

   

Security

   

Percent of

Total Investments


(a) 

BIM Birlesik Magazalar AS

    7.4

Turkiye Petrol Rafinerileri AS

    6.6  

Eregli Demir ve Celik Fabrikalari TAS

    6.1  

Akbank TAS

    5.2  

KOC Holding AS

    5.0  

Turkiye Sise ve Cam Fabrikalari AS

    5.0  

Turk Hava Yollari AO

    4.6  

Turkcell Iletisim Hizmetleri AS

    4.4  

Ford Otomotiv Sanayi AS

    3.9  

Turkiye Is Bankasi AS, Class C

    3.8  

 

  (a) 

Excludes money market funds.

 

 

 

14  

2 0 2 2   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


Table of Contents

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 / S H A R E H O L D E R   E X P E N S E S

    15  


Table of Contents

Schedule of Investments

August 31, 2022

  

iShares® MSCI Brazil ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Banks — 3.4%            

Banco Bradesco SA

    10,464,515     $ 31,861,817  

Banco do Brasil SA

    13,662,575       109,486,536  

Banco Santander Brasil SA

    6,962,097       39,304,319  
   

 

 

 
      180,652,672  
Beverages — 3.7%            

Ambev SA

    66,417,743       194,948,281  
   

 

 

 
Capital Markets — 5.2%            

B3 SA - Brasil, Bolsa, Balcao

    86,489,831       197,006,093  

Banco BTG Pactual SA

    15,735,176       76,976,055  

XP Inc.(a)

    1       19  
   

 

 

 
          273,982,167  
Containers & Packaging — 0.9%            

Klabin SA

    12,307,809       44,547,909  
   

 

 

 
Diversified Telecommunication Services — 1.2%  

Telefonica Brasil SA

    7,760,909       61,372,404  
   

 

 

 
Electric Utilities — 4.7%            

Centrais Eletricas Brasileiras SA

    14,911,883       132,167,255  

CPFL Energia SA

    2,588,232       17,397,830  

Energisa SA

    2,467,074       20,054,698  

Equatorial Energia SA

    16,646,731       77,371,589  
   

 

 

 
      246,991,372  
Electrical Equipment — 2.7%            

WEG SA

    25,943,809       141,079,186  
   

 

 

 
Food & Staples Retailing — 2.0%            

Atacadao SA

    8,192,755       31,102,359  

Raia Drogasil SA

    17,658,163       73,858,532  
   

 

 

 
      104,960,891  
Food Products — 2.0%            

BRF SA(a)

    11,062,822       33,704,776  

JBS SA

    12,731,914       72,416,065  
   

 

 

 
      106,120,841  
Health Care Providers & Services — 2.3%  

Hapvida Participacoes e Investimentos SA(b)

    62,209,318       87,052,867  

Rede D’Or Sao Luiz SA(b)

    4,962,112       31,790,557  
   

 

 

 
      118,843,424  
Independent Power and Renewable Electricity Producers — 0.6%  

Engie Brasil Energia SA

    4,043,843       31,480,786  
   

 

 

 
Insurance — 1.2%            

BB Seguridade Participacoes SA

    11,799,567       64,141,887  
   

 

 

 
Internet & Direct Marketing Retail — 0.6%  

Americanas SA

    9,778,493       30,712,859  
   

 

 

 
Metals & Mining — 14.3%            

Cia. Siderurgica Nacional SA

    11,487,732       30,472,609  

Vale SA

    58,039,067       719,575,546  
   

 

 

 
      750,048,155  
Multiline Retail — 0.7%            

Magazine Luiza SA(a)

    45,341,842       37,215,452  
   

 

 

 
Oil, Gas & Consumable Fuels — 10.1%            

Cosan SA

    17,389,123       66,783,538  

Petro Rio SA(a)

    8,840,340       46,407,367  

Petroleo Brasileiro SA

    53,384,359       381,419,465  
Security   Shares     Value  
Oil, Gas & Consumable Fuels (continued)  

Ultrapar Participacoes SA

    13,359,600     $ 34,744,615  
   

 

 

 
      529,354,985  
Paper & Forest Products — 1.9%            

Suzano SA

    11,847,474       100,793,710  
   

 

 

 
Personal Products — 0.7%            

Natura & Co. Holding SA

    14,018,321       38,855,949  
   

 

 

 
Pharmaceuticals — 1.1%            

Hypera SA

    6,837,225       56,604,506  
   

 

 

 
Road & Rail — 4.2%            

Localiza Rent a Car SA

    11,529,046       134,783,288  

Rumo SA

    21,289,349       82,703,703  
   

 

 

 
      217,486,991  
Software — 0.7%            

TOTVS SA

    6,289,919       34,518,143  
   

 

 

 
Specialty Retail — 2.6%            

Lojas Renner SA

    15,873,867       80,766,811  

Vibra Energia SA

    15,151,289       53,471,026  
   

 

 

 
      134,237,837  
Transportation Infrastructure — 1.1%            

CCR SA

    20,895,261       55,387,062  
   

 

 

 
Water Utilities — 1.1%            

Cia. de Saneamento Basico do Estado de Sao Paulo

    5,952,713       56,238,629  
   

 

 

 
Wireless Telecommunication Services — 0.7%  

Tim SA

    16,062,995       36,526,455  
   

 

 

 

Total Common Stocks — 69.7%
(Cost: $2,695,611,766)

      3,647,102,553  
   

 

 

 

Preferred Stocks

   
Banks — 13.4%            

Banco Bradesco SA, Preference Shares, NVS

    67,353,934       245,469,512  

Itau Unibanco Holding SA, Preference Shares, NVS

    69,325,753       343,936,968  

Itausa SA, Preference Shares, NVS

    63,791,238       112,196,261  
   

 

 

 
      701,602,741  
Chemicals — 0.3%            

Braskem SA, Class A, Preference Shares, NVS

    2,778,645       16,263,598  
   

 

 

 
Electric Utilities — 1.9%            

Centrais Eletricas Brasileiras SA, Class B, Preference Shares, NVS

    4,572,040       42,096,093  

Cia. Energetica de Minas Gerais, Preference Shares, NVS

    23,831,642       55,428,815  
   

 

 

 
      97,524,908  
Metals & Mining — 1.6%            

Gerdau SA, Preference Shares, NVS

    18,602,252       83,385,460  
   

 

 

 
Oil, Gas & Consumable Fuels — 8.3%            

Petroleo Brasileiro SA, Preference Shares, NVS

    68,501,689       437,550,193  
   

 

 

 

Total Preferred Stocks — 25.5%
(Cost: $929,231,659)

 

    1,336,326,900  
   

 

 

 

Total Long-Term Investments — 95.2%
(Cost: $3,624,843,425)

 

    4,983,429,453  
   

 

 

 

 

 

16  

2 0 2 2   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


Table of Contents

Schedule of Investments   (continued)

August 31, 2022

  

iShares® MSCI Brazil ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

 

Short-Term Securities

 

Money Market Funds — 0.1%            

BlackRock Cash Funds: Treasury, SL Agency Shares, 2.07%(c)(d)

    6,880,000     $ 6,880,000  
   

 

 

 

Total Short-Term Securities — 0.1%
(Cost: $6,880,000)

 

    6,880,000  
   

 

 

 

Total Investments in Securities — 95.3%
(Cost: $3,631,723,425)

 

    4,990,309,453  

Other Assets Less Liabilities — 4.7%

      245,863,442  
   

 

 

 

Net Assets — 100.0%

    $   5,236,172,895  
   

 

 

 

 

 

(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.

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended August 31, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer   Value at
08/31/21
    Purchases
at Cost
   

Proceeds

from Sale

   

Net Realized

Gain (Loss)

    Change in
Unrealized
Appreciation
(Depreciation)
     Value at
08/31/22
     Shares
Held at
08/31/22
     Income    

Capital

Gain
Distributions

from

Underlying
Funds

 

 

 

BlackRock Cash Funds: Treasury, SL Agency Shares

  $     $ 6,880,000 (a)    $     $     $      $ 6,880,000        6,880,000      $ 43,168     $  
       

 

 

   

 

 

    

 

 

       

 

 

   

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

 

 
Description  

Number of

Contracts

    

Expiration

Date

    

Notional

Amount

(000)

    

Value/

Unrealized
Appreciation
(Depreciation)

 

 

 

Long Contracts

          

MSCI Brazil Index

    5,229        09/16/22      $ 255,883      $ (5,559,353
     

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

 

 
   

Commodity

Contracts

   

Credit

Contracts

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

 

 

Liabilities — Derivative Financial Instruments

             

Futures contracts

             

Unrealized depreciation on futures contracts(a)

  $     $     $ 5,559,353     $     $     $     $ 5,559,353  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

  (a) 

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

 

 

 

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

  17


Table of Contents

Schedule of Investments   (continued)

August 31, 2022

  

iShares® MSCI Brazil ETF

 

Derivative Financial Instruments Categorized by Risk Exposure (continued)

For the period ended August 31, 2022, 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

  $      $      $ (34,367,672   $      $      $      $ (34,367,672
 

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                  

Futures contracts

  $      $      $ (7,072,267   $      $      $      $ (7,072,267
 

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts

       

Average notional value of contracts — long

    $102,628,368      

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  

 

 

Investments

         

Assets

         

Common Stocks

  $ 3,647,102,553     $      $      $ 3,647,102,553  

Preferred Stocks

    1,336,326,900                     1,336,326,900  

Money Market Funds

    6,880,000                     6,880,000  
 

 

 

   

 

 

    

 

 

    

 

 

 
  $ 4,990,309,453     $      $      $ 4,990,309,453  
 

 

 

   

 

 

    

 

 

    

 

 

 

Derivative financial instruments(a)

         

Liabilities

         

Futures Contracts

  $ (5,559,353   $      $      $ (5,559,353
 

 

 

   

 

 

    

 

 

    

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

18  

2 0 2 2   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


Table of Contents

Schedule of Investments

August 31, 2022

  

iShares® MSCI Chile ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Banks — 21.5%            

Banco de Chile

    523,392,569     $ 49,655,866  

Banco de Credito e Inversiones SA

    766,533       22,579,048  

Banco Santander Chile

    547,261,898       21,982,068  

Itau CorpBanca Chile SA

    5,223,741,240       11,656,884  
   

 

 

 
      105,873,866  
Beverages — 4.7%            

Cia. Cervecerias Unidas SA

    2,236,808       12,155,757  

Vina Concha y Toro SA

    8,917,950       10,851,789  
   

 

 

 
      23,007,546  
Electric Utilities — 6.3%            

Enel Americas SA

    173,606,206       18,808,550  

Enel Chile SA

    75,176,503       2,467,718  

Engie Energia Chile SA

    17,306,167       9,558,218  
   

 

 

 
      30,834,486  
Food & Staples Retailing — 5.6%            

Cencosud SA

    13,288,788       18,578,356  

SMU SA

    80,637,314       8,791,154  
   

 

 

 
      27,369,510  
Independent Power and Renewable Electricity Producers — 3.2%  

Colbun SA

    162,759,566       15,871,895  
   

 

 

 
Marine — 3.3%            

Cia. Sud Americana de Vapores SA

    171,802,940       16,169,124  
   

 

 

 
Metals & Mining — 2.0%            

CAP SA

    1,248,215       10,070,675  
   

 

 

 
Multiline Retail — 3.9%            

Falabella SA

    8,050,277       18,970,360  
   

 

 

 
Oil, Gas & Consumable Fuels — 7.9%            

Empresas COPEC SA

    4,540,335       39,164,664  
   

 

 

 
Paper & Forest Products — 4.3%            

Empresas CMPC SA

    11,159,216       21,166,714  
   

 

 

 
Security   Shares     Value  
Real Estate Management & Development — 4.2%  

Cencosud Shopping SA

    3,055,636     $ 4,329,883  

Parque Arauco SA

    11,710,466       12,380,756  

Plaza SA

    3,633,421       4,072,269  
   

 

 

 
      20,782,908  
Water Utilities — 4.4%            

Aguas Andinas SA, Class A

    60,848,955       13,330,080  

Inversiones Aguas Metropolitanas SA

    16,677,361       8,429,208  
   

 

 

 
      21,759,288  
Wireless Telecommunication Services — 1.8%  

Empresa Nacional de Telecomunicaciones SA

    2,845,821       9,049,472  
   

 

 

 

Total Common Stocks — 73.1%
(Cost: $374,478,045)

      360,090,508  
   

 

 

 

Preferred Stocks

   
Beverages — 3.1%            

Embotelladora Andina SA, Class B, Preference Shares, NVS

    7,413,541       15,189,384  
   

 

 

 
Chemicals — 22.9%            

Sociedad Quimica y Minera de Chile SA, Class B, Preference Shares

    1,131,544       113,125,362  
   

 

 

 

Total Preferred Stocks — 26.0%
(Cost: $51,718,326)

      128,314,746  
   

 

 

 

Total Investments in Securities — 99.1%
(Cost: $426,196,371)

      488,405,254  

Other Assets Less Liabilities — 0.9%

      4,674,082  
   

 

 

 

Net Assets — 100.0%

    $   493,079,336  
   

 

 

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended August 31, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer   Value at
08/31/21
    Purchases
at Cost
    Proceeds
from Sale
    Net Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
08/31/22
    Shares
Held at
08/31/22
    Income    

Capital

Gain
Distributions
from
Underlying
Funds

 

 

 

BlackRock Cash Funds: Treasury, SL Agency Shares(a)

  $ 1,120,000     $     $ (1,120,000 )(b)    $     $     $           $ 3,459     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a) 

As of period end, the entity is no longer held.

 
  (b) 

Represents net amount purchased (sold).

 

 

 

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

  19


Table of Contents

Schedule of Investments   (continued)

August 31, 2022

  

iShares® MSCI Chile 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

          

MSCI Emerging Markets Index

    42        09/16/22      $ 2,062      $ (32,763
          

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

 

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

 

 

Liabilities — Derivative Financial Instruments

             

Futures contracts

             

Unrealized depreciation on futures contracts(a)

  $     $     $ 32,763     $     $     $     $ 32,763  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

  (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 August 31, 2022, 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

  $      $      $ (508,278   $      $      $      $ (508,278
 

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                  

Futures contracts

  $      $      $ (20,305   $      $      $      $ (20,305
 

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

   

Futures contracts

 

Average notional value of contracts — long

  $ 1,857,069      

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  

 

 

Investments

         

Assets

         

Common Stocks

  $ 360,090,508     $      $      $ 360,090,508  

Preferred Stocks

    128,314,746                     128,314,746  
 

 

 

   

 

 

    

 

 

    

 

 

 
  $ 488,405,254     $      $      $ 488,405,254  
 

 

 

   

 

 

    

 

 

    

 

 

 

Derivative financial instruments(a)

         

Liabilities

         

Futures Contracts

  $ (32,763   $      $      $ (32,763
 

 

 

   

 

 

    

 

 

    

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

20  

2 0 2 2   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


Table of Contents

Schedule of Investments   

August 31, 2022

  

iShares® MSCI Israel ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Aerospace & Defense — 3.1%            

Elbit Systems Ltd.

    21,785     $     4,650,798  

RADA Electronic Industries Ltd.(a)(b)

    34,347       344,500  
   

 

 

 
      4,995,298  
Banks — 23.6%            

Bank Hapoalim BM

    1,039,720       10,779,244  

Bank Leumi Le-Israel BM

    1,263,778       13,359,676  

FIBI Holdings Ltd.

    14,596       767,227  

First International Bank Of Israel Ltd. (The)

    45,149       2,101,047  

Israel Discount Bank Ltd., Class A

    1,013,248       6,194,642  

Mizrahi Tefahot Bank Ltd.

    126,097       5,128,449  
   

 

 

 
      38,330,285  
Capital Markets — 0.1%            

Altshuler Shaham Penn Ltd.

    57,152       174,893  
   

 

 

 
Chemicals — 4.3%            

ICL Group Ltd.

    579,874       5,537,029  

Israel Corp Ltd.(a)

    3,144       1,519,668  
   

 

 

 
      7,056,697  
Communications Equipment — 1.1%            

AudioCodes Ltd.

    20,824       462,578  

Gilat Satellite Networks Ltd.(a)

    35,156       228,474  

Ituran Location and Control Ltd.

    12,460       309,756  

Radware Ltd.(a)(b)

    33,359       715,884  
   

 

 

 
      1,716,692  
Construction & Engineering — 2.8%            

Ashtrom Group Ltd.

    33,227       845,668  

Elco Ltd.

    7,812       548,949  

Electra Ltd./Israel

    1,726       1,095,527  

Shapir Engineering and Industry Ltd.

    117,373       1,121,173  

Shikun & Binui Ltd.(a)

    204,011       922,422  
   

 

 

 
      4,533,739  
Consumer Finance — 0.3%            

Isracard Ltd.

    164,724       548,319  
   

 

 

 
Distributors — 0.3%            

Tadiran Group Ltd.

    2,795       471,138  
   

 

 

 
Diversified Telecommunication Services — 1.8%  

Bezeq The Israeli Telecommunication Corp. Ltd.

    1,698,963       2,864,300  
   

 

 

 
Electrical Equipment — 0.1%            

Electreon Wireless Ltd.(a)

    3,313       72,962  
   

 

 

 
Electronic Equipment, Instruments & Components — 0.1%  

Nayax Ltd.(a)

    66,081       186,648  
   

 

 

 
Equity Real Estate Investment Trusts (REITs) — 0.9%  

Reit 1 Ltd.

    152,017       966,606  

Sella Capital Real Estate Ltd.

    168,339       536,983  
   

 

 

 
      1,503,589  
Food & Staples Retailing — 1.4%            

M Yochananof & Sons Ltd.

    4,176       262,683  

Rami Levy Chain Stores Hashikma Marketing 2006 Ltd.

    7,373       570,605  

Shufersal Ltd.(b)

    217,399       1,488,888  
   

 

 

 
      2,322,176  
Food Products — 0.9%            

Mehadrin Ltd.(a)

    0       29  

Neto Malinda Trading Ltd.(a)

    9,518       368,588  
Security   Shares     Value  
Food Products (continued)            

Strauss Group Ltd.

    42,786     $     1,118,882  
   

 

 

 
      1,487,499  
Health Care Equipment & Supplies — 1.5%            

Inmode Ltd.(a)

    57,844       1,847,537  

Nano-X Imaging Ltd.(a)(b)

    31,995       425,854  

Sisram Medical Ltd.(c)

    117,600       137,397  
   

 

 

 
      2,410,788  
Hotels, Restaurants & Leisure — 0.4%            

Fattal Holdings 1998 Ltd.(a)

    5,056       622,592  
   

 

 

 
Household Durables — 0.9%            

Azorim-Investment Development & Construction Co. Ltd.

    69,890       285,696  

Danya Cebus Ltd.

    6,457       162,523  

Electra Consumer Products 1970 Ltd.

    9,834       454,637  

Maytronics Ltd.(b)

    40,488       581,623  
   

 

 

 
      1,484,479  
Independent Power and Renewable Electricity Producers — 3.0%  

Doral Group Renewable Energy Resources Ltd.(a)

    48,738       180,548  

Energix-Renewable Energies Ltd.

    190,435       868,090  

Enlight Renewable Energy Ltd.(a)

    783,592       1,912,431  

Kenon Holdings Ltd./Singapore

    15,462       628,133  

OPC Energy Ltd.(a)(b)

    74,741       891,148  

OY Nofar Energy Ltd.(a)(b)

    12,290       412,395  
   

 

 

 
      4,892,745  
Industrial Conglomerates — 0.2%            

Arad Investment & Industrial Development Ltd.

    2,570       362,299  
   

 

 

 
Insurance — 3.1%            

Clal Insurance Enterprises Holdings Ltd.(a)

    51,460       1,111,195  

Harel Insurance Investments & Financial Services Ltd.

    95,819       1,089,459  

IDI Insurance Co. Ltd.

    6,645       216,880  

Menora Mivtachim Holdings Ltd.(a)

    20,494       472,056  

Migdal Insurance & Financial Holdings Ltd.

    347,215       573,688  

Phoenix Holdings Ltd. (The)

    123,514       1,489,909  
   

 

 

 
      4,953,187  
Interactive Media & Services — 0.1%            

Taboola.com Ltd.(a)(b)

    47,180       118,422  
   

 

 

 
Internet & Direct Marketing Retail — 0.5%            

Fiverr International Ltd.(a)(b)

    25,509       882,101  
   

 

 

 
IT Services — 3.2%            

Formula Systems 1985 Ltd.

    8,188       813,284  

Malam - Team Ltd.

    6,302       151,092  

Matrix IT Ltd.

    28,327       743,403  

One Software Technologies Ltd.

    32,121       592,181  

Wix.com Ltd.(a)

    46,779       2,960,643  
   

 

 

 
      5,260,603  
Machinery — 0.8%            

Kornit Digital Ltd.(a)(b)

    40,506       1,258,926  
   

 

 

 
Marine — 1.5%            

ZIM Integrated Shipping Services Ltd.

    68,884       2,486,024  
   

 

 

 
Media — 0.4%            

Perion Network Ltd.(a)

    32,298       657,116  
   

 

 

 
Oil, Gas & Consumable Fuels — 2.4%            

Delek Group Ltd.(a)

    7,476       1,298,477  

Equital Ltd.(a)(b)

    17,936       666,117  

Naphtha Israel Petroleum Corp. Ltd.(a)

    26,926       162,115  

 

 

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

  21


Table of Contents

Schedule of Investments   (continued)

August 31, 2022

  

iShares® MSCI Israel ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Oil, Gas & Consumable Fuels (continued)            

Oil Refineries Ltd.(b)

    1,716,219     $ 736,937  

Paz Oil Co. Ltd.(a)(b)

    8,248           1,081,137  
   

 

 

 
      3,944,783  
Pharmaceuticals — 5.2%            

Taro Pharmaceutical Industries Ltd.(a)

    7,791       262,245  

Teva Pharmaceutical Industries Ltd., ADR(a)

    908,619       8,213,916  
   

 

 

 
      8,476,161  
Professional Services — 0.3%            

Danel Adir Yeoshua Ltd.

    4,459       544,657  
   

 

 

 
Real Estate Management & Development — 10.5%        

AFI Properties Ltd.

    4,656       230,134  

Africa Israel Residences Ltd.(b)

    5,237       276,644  

Airport City Ltd.(a)

    55,997       1,171,833  

Alony Hetz Properties & Investments Ltd.

    121,465       1,958,821  

Amot Investments Ltd.

    192,359       1,374,759  

Azrieli Group Ltd.

    34,763       2,883,806  

Big Shopping Centers Ltd.

    9,808       1,402,427  

Blue Square Real Estate Ltd.

    3,889       336,110  

Brack Capital Properties NV(a)

    0       31  

Electra Real Estate Ltd.

    21,230       373,077  

G City Ltd.

    66,974       435,948  

Gav-Yam Lands Corp. Ltd.

    0       1  

Israel Canada T.R Ltd.

    107,041       441,966  

Israel Land Development - Urban Renewal Ltd.

    13,383       238,490  

Isras Investment Co. Ltd.

    1,555       372,446  

Mega Or Holdings Ltd.

    19,387       670,545  

Melisron Ltd.

    19,443       1,587,745  

Mivne Real Estate KD Ltd.

    493,768       1,812,160  

Prashkovsky Investments and Construction Ltd.

    6,100       203,912  

Property & Building Corp. Ltd.(a)

    2,444       250,639  

Summit Real Estate Holdings Ltd.

    30,172       568,827  

YH Dimri Construction & Development Ltd.

    6,109       484,295  
   

 

 

 
      17,074,616  
Semiconductors & Semiconductor Equipment — 4.4%  

Camtek Ltd./Israel(a)(b)

    23,376       627,326  

Nova Ltd.(a)

    23,474       2,303,490  

Tower Semiconductor Ltd.(a)

    89,347       4,188,009  
   

 

 

 
      7,118,825  
Software — 17.4%            

Cellebrite DI Ltd.(a)(b)

    30,744       149,108  

Check Point Software Technologies Ltd.(a)(b)

    83,951       10,094,268  

Cognyte Software Ltd.(a)(b)

    55,190       288,092  

CyberArk Software Ltd.(a)(b)

    33,351       4,811,882  

Hilan Ltd.

    12,020       731,369  

Magic Software Enterprises Ltd.

    21,964       377,141  
Security   Shares     Value  
Software (continued)            

Nice Ltd.(a)

    51,956     $     11,101,016  

Sapiens International Corp. NV

    27,083       608,918  

SimilarWeb Ltd.(a)

    15,511       119,745  
   

 

 

 
      28,281,539  
Specialty Retail — 1.2%            

Delek Automotive Systems Ltd.

    42,085       648,982  

Fox Wizel Ltd.

    6,703       972,994  

Retailors Ltd.(b)

    10,037       258,698  
   

 

 

 
      1,880,674  
Technology Hardware, Storage & Peripherals — 0.4%  

Nano Dimension Ltd., ADR(a)(b)

    211,253       627,421  
   

 

 

 
Textiles, Apparel & Luxury Goods — 0.3%            

Delta Galil Industries Ltd.(b)

    9,399       498,628  
   

 

 

 
Wireless Telecommunication Services — 0.9%        

Cellcom Israel Ltd.(a)(b)

    73,126       457,459  

Partner Communications Co. Ltd.(a)

    113,821       984,454  
   

 

 

 
      1,441,913  
   

 

 

 

Total Long-Term Investments — 99.4%
(Cost: $166,416,966)

 

    161,542,734  
   

 

 

 

Short-Term Securities

   
Money Market Funds — 4.4%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 2.42%(d)(e)(f)

    7,066,350       7,068,470  

BlackRock Cash Funds: Treasury, SL Agency Shares, 2.07%(d)(e)

    80,000       80,000  
   

 

 

 

Total Short-Term Securities — 4.4%
(Cost: $7,144,241)

 

    7,148,470  
   

 

 

 

Total Investments in Securities — 103.8%
(Cost: $173,561,207)

 

    168,691,204  

Liabilities in Excess of Other Assets — (3.8)%

 

    (6,128,934
   

 

 

 

Net Assets — 100.0%

    $ 162,562,270  
   

 

 

 

 

(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.

 

 

22  

2 0 2 2   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


Table of Contents

Schedule of Investments   (continued)

August 31, 2022

  

iShares® MSCI Israel ETF

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended August 31, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer  

Value at

08/31/21

   

Purchases

at Cost

   

Proceeds

from Sale

   

Net Realized

Gain (Loss)

   

Change in

Unrealized

Appreciation

(Depreciation)

   

Value at

08/31/22

   

Shares

Held at

08/31/22

    Income    

Capital

Gain

Distributions

from

Underlying

Funds

 

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $ 23,201,200     $     $ (16,132,192 )(a)    $ (3,981   $ 3,443     $ 7,068,470       7,066,350     $ 106,784 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    90,000             (10,000 )(a)                  80,000       80,000       537        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ (3,981   $ 3,443     $ 7,148,470       $ 107,321     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

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

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

 

 
Description   

Number of

Contracts

    

Expiration

Date

    

Notional

Amount

(000)

    

Value/

Unrealized

Appreciation

(Depreciation)

 

 

 

Long Contracts

           

Euro STOXX 50 Index

     29        09/16/22      $ 1,022      $ (42,032
           

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

 

 
    

Commodity

Contracts

    

Credit

Contracts

    

Equity

Contracts

    

Foreign

Currency

Exchange

Contracts

    

Interest

Rate

Contracts

    

Other

Contracts

     Total  

 

 

Liabilities — Derivative Financial Instruments

                    

Futures contracts

                    

Unrealized depreciation on futures contracts(a)

   $      $      $ 42,032      $      $      $      $ 42,032  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (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 August 31, 2022, 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

   $      $      $ (40,593    $      $      $      $ (40,593
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                    

Futures contracts

   $      $      $ (45,558    $      $      $      $ (45,558
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Futures contracts

  

Average notional value of contracts — long

   $ 682,642      

 

 

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

  23


Table of Contents

Schedule of Investments   (continued)

August 31, 2022

  

iShares® MSCI Israel 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  

 

 

Investments

           

Assets

           

Common Stocks

   $ 35,916,324      $ 125,626,410      $      $ 161,542,734  

Money Market Funds

     7,148,470                      7,148,470  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 43,064,794      $ 125,626,410      $      $ 168,691,204  
  

 

 

    

 

 

    

 

 

    

 

 

 

Derivative financial instruments(a)

           

Liabilities

           

Futures Contracts

   $      $ (42,032    $      $ (42,032
  

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

24  

2 0 2 2   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


Table of Contents

Schedule of Investments

August 31, 2022

  

iShares® MSCI South Africa ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Banks — 16.5%            

Absa Group Ltd.

    1,162,081     $ 12,035,853  

Capitec Bank Holdings Ltd.

    125,748       14,952,110  

Nedbank Group Ltd.

    664,569       7,844,217  

Standard Bank Group Ltd.

    1,938,568       17,298,957  
   

 

 

 
          52,131,137  
Capital Markets — 1.0%            

Reinet Investments SCA

    197,673       3,244,359  
   

 

 

 
Chemicals — 5.0%            

Sasol Ltd.(a)

    817,752       15,727,535  
   

 

 

 
Diversified Financial Services — 10.4%            

FirstRand Ltd.

    7,290,151       27,229,508  

Remgro Ltd.

    764,608       5,669,901  
   

 

 

 
      32,899,409  
Equity Real Estate Investment Trusts (REITs) — 1.2%        

Growthpoint Properties Ltd.

    4,963,871       3,692,022  
   

 

 

 
Food & Staples Retailing — 8.8%            

Bid Corp. Ltd.

    484,203       9,188,656  

Clicks Group Ltd.

    352,445       6,132,126  

Shoprite Holdings Ltd.

    725,492       9,837,686  

SPAR Group Ltd. (The)

    277,576       2,537,421  
   

 

 

 
      27,695,889  
Industrial Conglomerates — 1.7%            

Bidvest Group Ltd. (The)

    418,015       5,245,702  
   

 

 

 
Insurance — 5.4%            

Discovery Ltd.(a)

    723,079       5,180,819  

Old Mutual Ltd.

    6,785,964       4,020,156  

Sanlam Ltd.

    2,572,097       7,996,251  
   

 

 

 
      17,197,226  
Internet & Direct Marketing Retail — 14.0%            

Naspers Ltd., Class N

    314,439       44,337,923  
   

 

 

 
Media — 1.1%            

MultiChoice Group

    542,084       3,658,780  
   

 

 

 
Metals & Mining — 18.0%            

African Rainbow Minerals Ltd.

    161,744       2,231,154  

Anglo American Platinum Ltd.

    76,671       5,352,368  

AngloGold Ashanti Ltd.

    604,079       8,067,271  

Gold Fields Ltd.

    1,287,886       10,401,420  

Harmony Gold Mining Co. Ltd.

    799,681       2,036,468  

Impala Platinum Holdings Ltd.

    1,227,521       12,862,391  

Kumba Iron Ore Ltd.

    92,838       2,055,369  
Security   Shares     Value  
Metals & Mining (continued)            

Northam Platinum Holdings Ltd.(a)

    487,327     $ 4,586,272  

Sibanye Stillwater Ltd.

    4,084,451       9,124,750  
   

 

 

 
      56,717,463  
Multiline Retail — 1.5%            

Woolworths Holdings Ltd.

    1,445,038       4,724,345  
   

 

 

 
Oil, Gas & Consumable Fuels — 1.4%            

Exxaro Resources Ltd.

    352,391       4,489,546  
   

 

 

 
Pharmaceuticals — 1.5%            

Aspen Pharmacare Holdings Ltd.

    550,830       4,727,110  
   

 

 

 
Real Estate Management & Development — 1.1%        

NEPI Rockcastle SA

    658,261       3,507,572  
   

 

 

 
Specialty Retail — 3.3%            

Foschini Group Ltd. (The)

    479,003       3,556,011  

Mr. Price Group Ltd.

    371,483       4,024,203  

Pepkor Holdings Ltd.(b)

    2,404,320       2,822,790  
   

 

 

 
      10,403,004  
Wireless Telecommunication Services — 7.8%        

MTN Group Ltd.

    2,448,816       17,724,637  

Vodacom Group Ltd.

    927,974       6,830,498  
   

 

 

 
      24,555,135  
   

 

 

 

Total Long-Term Investments — 99.7%
(Cost: $437,983,439)

      314,954,157  
   

 

 

 

Short-Term Securities

   
Money Market Funds — 0.1%            

BlackRock Cash Funds: Treasury, SL Agency Shares, 2.07%(c)(d)

    180,000       180,000  
   

 

 

 

Total Short-Term Securities — 0.1%
(Cost: $180,000)

      180,000  
   

 

 

 

Total Investments in Securities — 99.8%
(Cost: $438,163,439)

      315,134,157  

Other Assets Less Liabilities — 0.2%

      627,072  
   

 

 

 

Net Assets — 100.0%

    $  315,761,229  
   

 

 

 

 

(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.

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended August 31, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer  

Value at

08/31/21

   

Purchases

at Cost

   

Proceeds

from Sale

   

Net Realized

Gain (Loss)

   

Change in

Unrealized

Appreciation

(Depreciation)

    Value at
08/31/22
   

Shares

Held at

08/31/22

    Income    

Capital

Gain
Distributions

from

Underlying

Funds

 

 

 

BlackRock Cash Funds: Treasury, SL Agency Shares

  $ 310,000     $     $ (130,000 )(a)    $     $     $ 180,000       180,000     $ 1,105     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 

 

 

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

  25


Table of Contents

Schedule of Investments  (continued)

August 31, 2022

  

iShares® MSCI South Africa 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

       

FTSE/JSE Top 40 Index

    11       09/15/22     $ 389     $ (18,202
       

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

 

 
    

Commodity

Contracts

    

Credit

Contracts

    

Equity

Contracts

    

Foreign

Currency

Exchange

Contracts

    

Interest

Rate

Contracts

    

Other

Contracts

     Total  

 

 

Liabilities — Derivative Financial Instruments

                    

Futures contracts

                    

Unrealized depreciation on futures contracts(a)

   $      $      $ 18,202      $      $      $      $ 18,202  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (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 August 31, 2022, 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

   $      $      $ (91,770    $      $      $      $ (91,770
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                    

Futures contracts

   $      $      $ (34,909    $      $      $      $ (34,909
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Futures contracts

  

Average notional value of contracts — long

   $ 588,659      

 

 

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  

 

 

Investments

           

Assets

           

Common Stocks

   $ 51,619,638      $ 263,334,519      $      $ 314,954,157  

Money Market Funds

     180,000                      180,000  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $  51,799,638      $ 263,334,519      $      $ 315,134,157  
  

 

 

    

 

 

    

 

 

    

 

 

 

Derivative financial instruments(a)

           

Liabilities

           

Futures Contracts

   $      $ (18,202    $      $ (18,202
  

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

26  

2 0 2 2   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


Table of Contents

Schedule of Investments

August 31, 2022

  

iShares® MSCI Turkey ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Aerospace & Defense — 3.1%            

Aselsan Elektronik Sanayi Ve Ticaret AS

    6,229,598     $ 8,911,630  
   

 

 

 
Airlines — 6.2%            

Pegasus Hava Tasimaciligi AS(a)(b)

    395,059       4,526,571  

Turk Hava Yollari AO(a)

    3,331,404       13,361,109  
   

 

 

 
      17,887,680  
Automobiles — 3.9%            

Ford Otomotiv Sanayi AS

    628,048       11,411,670  
   

 

 

 
Banks — 12.6%            

Akbank TAS

    23,576,586       15,189,171  

Haci Omer Sabanci Holding AS(b)

    7,432,296       10,401,762  

Turkiye Is Bankasi AS, Class C(b)

    25,103,956       10,874,371  
   

 

 

 
      36,465,304  
Beverages — 3.8%            

Anadolu Efes Biracilik Ve Malt Sanayii AS

    2,087,973       4,717,852  

Coca-Cola Icecek AS

    731,390       6,415,999  
   

 

 

 
      11,133,851  
Capital Markets — 0.4%            

Is Yatirim Menkul Degerler AS

    687,091       1,072,727  
   

 

 

 
Chemicals — 7.2%            

Gubre Fabrikalari TAS(a)(b)

    523,637       3,358,092  

Hektas Ticaret TAS(a)(b)

    3,593,887       8,094,786  

Petkim Petrokimya Holding AS(a)(b)

    11,840,412       9,403,420  
   

 

 

 
          20,856,298  
Construction & Engineering — 1.1%            

Tekfen Holding AS

    1,981,438       3,240,096  
   

 

 

 
Construction Materials — 2.0%            

Nuh Cimento Sanayi AS

    653,551       2,730,352  

Oyak Cimento Fabrikalari AS(a)

    3,669,487       2,970,102  
   

 

 

 
      5,700,454  
Diversified Financial Services — 0.7%            

Turkiye Sinai Kalkinma Bankasi AS(a)(b)

    8,043,543       2,171,387  
   

 

 

 
Electric Utilities — 0.9%            

Enerjisa Enerji AS(b)(c)

    2,732,153       2,563,112  
   

 

 

 
Electronic Equipment, Instruments & Components — 0.7%  

Penta Teknoloji Urunleri Dagitim Ticaret AS(a)

    99,815       2,058,547  
   

 

 

 
Equity Real Estate Investment Trusts (REITs) — 2.7%  

Emlak Konut Gayrimenkul Yatirim Ortakligi AS(b)

    20,732,943       4,563,436  

Is Gayrimenkul Yatirim Ortakligi AS(a)(b)

    1,767,050       1,756,195  

Kizilbuk Gayrimenkul Yatirim Ortakligi AS, NVS(a)(b)

    784,973       1,467,098  
   

 

 

 
      7,786,729  
Food & Staples Retailing — 9.9%            

BIM Birlesik Magazalar AS

    3,588,545       21,529,276  

Migros Ticaret AS(a)(b)

    980,897       4,401,519  

Sok Marketler Ticaret AS(a)

    2,981,834       2,762,499  
   

 

 

 
      28,693,294  
Food Products — 0.7%            

Ulker Biskuvi Sanayi AS(a)

    1,939,725       1,918,020  
   

 

 

 
Health Care Providers & Services — 0.8%            

MLP Saglik Hizmetleri AS(a)(c)

    1,030,155       2,288,808  
   

 

 

 
Household Durables — 1.4%            

Vestel Beyaz Esya Sanayi ve Ticaret AS(b)

    3,802,095       1,965,969  
Security   Shares     Value  
Household Durables (continued)            

Vestel Elektronik Sanayi ve Ticaret AS(b)

    1,205,081     $ 1,971,836  
   

 

 

 
      3,937,805  
Independent Power and Renewable Electricity Producers — 1.6%  

Aksa Enerji Uretim AS(b)

    3,034,549       4,733,624  
   

 

 

 
Industrial Conglomerates — 11.4%            

Alarko Holding AS(b)

    1,576,526       4,271,436  

Enka Insaat ve Sanayi AS

    1       1  

KOC Holding AS

    5,851,656       14,599,301  

Turkiye Sise ve Cam Fabrikalari AS(b)

    10,524,259       14,335,681  
   

 

 

 
      33,206,419  
Machinery — 1.5%            

Jantsa Jant Sanayi Ve Ticaret AS

    311,805       1,342,484  

Otokar Otomotiv Ve Savunma Sanayi AS(b)

    35,938       943,702  

Turk Traktor ve Ziraat Makineleri AS(b)

    154,056       2,068,152  
   

 

 

 
      4,354,338  
Metals & Mining — 10.1%            

Eregli Demir ve Celik Fabrikalari TAS(b)

    11,187,876       17,678,682  

Kardemir Karabuk Demir Celik Sanayi ve Ticaret AS, Class D(b)

    7,142,586       4,626,965  

Koza Altin Isletmeleri AS(b)

    454,420       3,957,917  

Koza Anadolu Metal Madencilik Isletmeleri AS(a)(b)

    2,111,730       3,140,459  
   

 

 

 
      29,404,023  
Oil, Gas & Consumable Fuels — 6.6%            

Turkiye Petrol Rafinerileri AS(a)

    970,633       19,136,837  
   

 

 

 
Specialty Retail — 1.1%            

Dogan Sirketler Grubu Holding AS

    11,556,660       3,351,967  
   

 

 

 
Textiles, Apparel & Luxury Goods — 2.8%        

Aksa Akrilik Kimya Sanayii AS(b)

    1,539,595       4,658,187  

Mavi Giyim Sanayi Ve Ticaret AS, Class B(c)

    922,351       3,546,578  
   

 

 

 
      8,204,765  
Transportation Infrastructure — 2.1%            

TAV Havalimanlari Holding AS(a)(b)

    1,785,721       6,094,770  
   

 

 

 
Wireless Telecommunication Services — 4.4%        

Turkcell Iletisim Hizmetleri AS

    10,864,609       12,838,717  
   

 

 

 

Total Long-Term Investments — 99.7%
(Cost: $349,870,671)

      289,422,872  
   

 

 

 

Short-Term Securities

   
Money Market Funds — 11.7%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 2.42%(d)(e)(f)

    33,770,426       33,780,557  

BlackRock Cash Funds: Treasury, SL Agency Shares, 2.07%(d)(e)

    260,000       260,000  
   

 

 

 

Total Short-Term Securities — 11.7%
(Cost: $34,030,640)

 

    34,040,557  
   

 

 

 

Total Investments in Securities — 111.4%
(Cost: $383,901,311)

 

    323,463,429  

Liabilities in Excess of Other Assets — (11.4)%

 

    (33,055,194
   

 

 

 

Net Assets — 100.0%

    $  290,408,235  
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

All or a portion of this security is on loan.

 

 

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

  27


Table of Contents

Schedule of Investments  (continued)

August 31, 2022

  

iShares® MSCI Turkey ETF

 

(c) 

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

(d) 

Affiliate of the Fund.

(e) 

Annualized 7-day yield as of period end.

(f) 

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

    

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended August 31, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer   Value at
08/31/21
   

Purchases

at Cost

   

Proceeds

from Sale

   

Net Realized

Gain (Loss)

    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
08/31/22
    Shares
Held at
08/31/22
    Income    

Capital

Gain
Distributions
from
Underlying
Funds

 

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $ 11,942,050     $ 21,838,745 (a)    $     $ (4,719   $ 4,481     $ 33,780,557       33,770,426     $ 979,669 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    350,000             (90,000 )(a)                  260,000       260,000       1,477        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ (4,719   $ 4,481     $ 34,040,557       $ 981,146     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

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

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

 

 
Description    Number of
Contracts
     Expiration
Date
     Notional
Amount
(000)
     Value/
Unrealized
Appreciation
(Depreciation)
 

 

 

Long Contracts

           

MSCI Emerging Markets Index

     13        09/16/22      $ 638      $ (5,405
           

 

 

 

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: