|
AUGUST 31, 2023 |
2023 Annual Report |
iShares, Inc.
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iShares Emerging Markets Equity Factor ETF | EMGF | Cboe BZX |
· |
iShares ESG Aware MSCI EM ETF | ESGE | NASDAQ |
· |
iShares MSCI Emerging Markets ex China ETF | EMXC | NASDAQ |
· |
iShares MSCI Emerging Markets Min Vol Factor ETF | EEMV | Cboe BZX |
· |
iShares MSCI Global Min Vol Factor ETF | ACWV | Cboe BZX |
Dear Shareholder,
Despite an uncertain economic landscape during the 12-month reporting period ended August 31, 2023, the resilience of the U.S. economy in the face of ever tighter financial conditions provided an encouraging backdrop for investors. While inflation was near multi-decade highs at the beginning of the period, it declined precipitously as commodity prices dropped. Labor shortages also moderated, although wages continued to grow and unemployment rates reached the lowest levels in decades. This robust labor market powered further growth in consumer spending, backstopping the economy.
Equity returns were solid, as the durability of consumer sentiment eased investors’ concerns about the economy’s trajectory. The U.S. economy resumed growth in the third quarter of 2022 and continued to expand thereafter. Most major classes of equities rose, as large-capitalization U.S. stocks and developed market equities advanced strongly. However, small-capitalization U.S. stocks and emerging market equities posted more modest gains.
The 10-year U.S. Treasury yield rose during the reporting period, driving its price down, as investors reacted to elevated inflation and attempted to anticipate future interest rate changes. The corporate bond market also faced inflationary headwinds, although high-yield corporate bond prices fared significantly better than investment-grade bonds as demand from yield-seeking investors remained strong.
The U.S. Federal Reserve (the “Fed”), acknowledging that inflation has been more persistent than expected, raised interest rates seven times during the 12-month period. Furthermore, the Fed wound down its bond-buying programs and incrementally reduced its balance sheet by not replacing securities that reach maturity. However, the Fed declined to raise interest rates at its June 2023 meeting, the first time it paused its tightening in the current cycle, before again raising rates in July 2023.
Supply constraints appear to have become an embedded feature of the new macroeconomic environment, making it difficult for developed economies to increase production without sparking higher inflation. Geopolitical fragmentation and an aging population risk further exacerbating these constraints, keeping the labor market tight and wage growth high. Although the Fed has decelerated the pace of interest rate hikes and recently opted for two pauses, we believe that the new economic regime means that the Fed will need to maintain high rates for an extended period to keep inflation under control. Furthermore, ongoing structural changes may mean that the Fed will be hesitant to cut interest rates in the event of faltering economic activity lest inflation accelerate again. We believe investors should expect a period of higher volatility as markets adjust to the new economic reality and policymakers attempt to adapt.
While we favor an overweight position to developed market equities in the long term, we prefer an underweight stance in the near term. Expectations for corporate earnings remain elevated, which seems inconsistent with macroeconomic constraints. Nevertheless, we are overweight on emerging market stocks in the near term as growth trends for emerging markets appear brighter. We also believe that stocks with an AI tilt should benefit from an investment cycle that is set to support revenues and margins. In credit, there are selective opportunities in the near term despite tightening credit and financial conditions. For fixed income investing with a six- to twelve-month horizon, we see the most attractive investments in short-term U.S. Treasuries, U.S. inflation-linked bonds, U.S. mortgage-backed securities, and hard-currency emerging market bonds.
Overall, our view is that investors need to think globally, position themselves to be prepared for a decarbonizing economy, and be nimble as market conditions change. We encourage you to talk with your financial advisor and visit iShares.com for further insight about investing in today’s markets.
Rob Kapito
President, BlackRock, Inc.
Rob Kapito
President, BlackRock, Inc.
Total Returns as of August 31, 2023
| ||||
6-Month
|
12-Month
| |||
U.S.
large cap equities
|
14.50% | 15.94% | ||
U.S.
small cap equities
|
0.99 | 4.65 | ||
International
equities
|
4.75 | 17.92 | ||
Emerging
market equities
|
3.62 | 1.25 | ||
3-month Treasury bills
|
2.47 | 4.25 | ||
U.S.
Treasury securities
|
0.11 | (4.71) | ||
U.S.
investment grade bonds
|
0.95 | (1.19) | ||
Tax-exempt municipal
bonds
|
1.04 | 1.70 | ||
U.S. high yield bonds (Bloomberg U.S. Corporate High Yield 2% Issuer Capped Index)
|
4.55 | 7.19 | ||
Past performance is not an indication of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.
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T H I S P A G E I S N O T P A R T O F Y O U R F U N D R E P O R T |
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iShares, Inc.
Global Market Overview
Global equity markets advanced during the 12 months ended August 31, 2023 (“reporting period”), supported by continued economic growth and moderating inflation. The MSCI ACWI, a broad global equity index that includes both developed and emerging markets, returned 13.95% in U.S. dollar terms for the reporting period. Despite concerns about the impact of higher interest rates and rising prices, the global economy continued to grow, albeit at a slower pace than during the initial post-coronavirus pandemic recovery. Inflation began to subside in most regions of the world, and lower energy prices reduced pressure on consumers, leading consumer and business sentiment to improve. While the Russian invasion of Ukraine continued to disrupt trade in Europe and elsewhere, market adaptation lessened the economic impact of the ongoing war. The prices of several key commodities, including oil, natural gas, and wheat, either stabilized or declined during the reporting period, easing pressure on the world’s economies.
The U.S. Federal Reserve (“Fed”) tightened monetary policy rapidly, raising short-term interest rates seven times over the course of the reporting period. The pace of tightening decelerated as the Fed twice lowered the increment of increase before pausing entirely in June 2023, the first time it declined to take action since the tightening cycle began. However, the Fed then raised interest rates again at its July 2023 meeting and stated that it would continue to monitor economic data. The Fed also continued to decrease the size of its balance sheet by reducing the store of U.S. Treasuries it had accumulated to stabilize markets in the early phases of the pandemic.
Despite the tightening financial conditions, the U.S. economy demonstrated continued strength, and U.S. equities advanced. The economy returned to growth in the third quarter of 2022 and showed robust, if slightly slower, growth thereafter. Consumers powered the economy, increasing their spending in both nominal and inflation-adjusted terms. A strong labor market bolstered spending, as unemployment remained low, and the number of employed persons reached an all-time high. Tightness in the labor market drove higher wages, although wage growth slowed as the reporting period continued.
European stocks outpaced their counterparts in most other regions of the globe, advancing strongly for the reporting period despite modest economic growth. European stocks benefited from a solid recovery following the early phases of the war in Ukraine. While the conflict disrupted critical natural gas supplies, new sources were secured and prices declined, while a warm winter helped moderate consumption. The European Central Bank (“ECB”) responded to the highest inflation since the introduction of the euro by raising interest rates eight times and beginning to reduce the size of its debt holdings.
Stocks in the Asia-Pacific region gained, albeit at a slower pace than other regions of the world. Japan returned to growth in the fourth quarter of 2022 and first half of 2023, as strong business investment and exports helped boost the economy and support Japanese equities. However, Chinese stocks were negatively impacted by slowing economic growth. While investors were initially optimistic following China’s lifting of several pandemic-related lockdowns in December 2022, subsequent performance disappointed, and tensions with the U.S. increased. Emerging market stocks advanced modestly, as the resilient global economic environment reassured investors. The declining value of the U.S. dollar relative to many other currencies and the slowing pace of the Fed’s interest rate increases also supported emerging market stocks.
4 |
2 0 2 3 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Fund Summary as of August 31, 2023
|
iShares® Emerging Markets Equity Factor ETF |
Investment Objective
The iShares Emerging Markets Equity Factor ETF (the “Fund”)(formerly the iShares MSCI Emerging Markets Multifactor ETF) seeks to track the investment results of an index composed of stocks of large- and mid-capitalization companies in emerging markets that have favorable exposure to target style factors subject to constraints, as represented by the STOXX Emerging Markets Equity Factor 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 | Since Inception |
1 Year | 5 Years | Since Inception |
|||||||||||||||||||||||
Fund NAV |
0.30 | % | 1.50 | % | 5.35 | % | 0.30 | % | 7.73 | % | 49.67 | % | ||||||||||||||||
Fund Market |
0.56 | 1.45 | 5.29 | 0.56 | 7.49 | 49.01 | ||||||||||||||||||||||
Index(a) |
0.35 | 2.28 | 5.88 | 0.35 | 11.93 | 55.56 | ||||||||||||||||||||||
MSCI Emerging Markets Diversified Multiple Factor Index |
1.90 | 2.59 | 6.10 | 1.90 | 13.66 | 57.98 | ||||||||||||||||||||||
Stoxx Emerging Markets Equity Factor Index(b) |
N/A | N/A | N/A | N/A | N/A | N/A |
GROWTH OF $10,000 INVESTMENT
(SINCE INCEPTION AT NET ASSET VALUE)
The inception date of the Fund was December 8, 2015. The first day of secondary market trading was December 10, 2015.
(a) |
Index performance through February 28, 2023 reflects the performance of the MSCI Emerging Markets Diversified Multiple Factor Index. Index performance beginning on March 1, 2023 reflects the performance of the STOXX Emerging Markets Equity Factor Index, which effective as of March 1, 2023, replaced the MSCI Emerging markets Diversified Multiple Factor Index as the underlying index of the fund. |
(b) |
The inception date of the STOXX Emerging Markets Equity Factor Index was December 2, 2022. The cumulative total return for this index for the period March 1, 2023 through August 31, 2023 was 5.11%. |
Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||||||
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Beginning Account Value (03/01/23) |
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Ending Account Value (08/31/23) |
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Expenses Paid During the Period |
(a) |
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Beginning Account Value (03/01/23) |
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Ending Account Value (08/31/23) |
|
|
Expenses Paid During the Period |
(a) |
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Annualized Expense Ratio |
| ||||||||||||||
$ 1,000.00 | $ 1,048.00 | $ 1.45 | $ 1,000.00 | $ 1,023.80 | $ 1.43 | 0.28 | % |
(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 |
Fund Summary as of August 31, 2023 (continued) | iShares® Emerging Markets Equity Factor ETF |
Portfolio Management Commentary
Emerging markets stocks with favorable exposure to five targeted factors — value, quality, momentum, low volatility, and small size — were nearly flat during the reporting period. Taiwanese stocks contributed the most to the Index’s return, as the Taiwanese economy returned to growth in the second quarter of 2023 and unemployment fell to the lowest level in 23 years. Exports of microchips to the U.S. continued to increase, and the 2022 CHIPS and Science Act in the U.S. encouraged Taiwanese investment in U.S. semiconductor manufacturing facilities.
The Taiwanese information technology sector was a source of strength, led by companies in its technology hardware, storage, and peripherals industry. Continued growth of cloud computing fueled robust sales of high-end power units used in data centers, bolstering profits in the industry. The semiconductors and semiconductor equipment industry also posted gains, helped by growing investor interest in technologies related to artificial intelligence (“AI”). Semiconductor manufacturers made capital investments in anticipation of rising customer demand for AI microchips. A slowdown in the U.S. inflation rate also provided a tailwind to Taiwanese information technology stocks, as investors grew optimistic that the monetary tightening cycle was nearing an end.
South Korean stocks advanced, particularly the steel industry in the materials sector. A leading steelmaker exceeded earnings expectations, with operating profit rising substantially, as it recovered from a lengthy, typhoon-related mill closure early in the reporting period. Battery material sales also increased significantly, bolstering earnings.
Stocks in Turkey further contributed to the Index’s performance, led by the industrials sector. Strong automotive demand domestically combined with rising exports benefited auto manufacturing operations in the industrial conglomerates industry.
On the downside, Chinese stocks detracted notably from the Index’s return, negatively impacted by slowing economic growth. While investors were initially optimistic following China’s lifting of several coronavirus pandemic-related lockdowns in December 2022, subsequent economic performance disappointed. The financials sector faced headwinds, as the insurance industry’s profits were negatively impacted by volatile financial markets and the lingering economic disruption from the lockdowns. The declining value of the Chinese yuan relative to the U.S. dollar also decreased the value of Chinese stocks in U.S. dollar terms.
Equities in SaudiArabia also declined, most notably in the financials sector. Tighter liquidity amid rapid credit growth and a slowing economy drove investors’ concerns about the Saudi banking industry.
Portfolio Information
SECTOR ALLOCATION | ||||
Sector | |
Percent of Total Investments |
(a) | |
Information Technology |
22.6 | % | ||
Financials |
22.1 | |||
Consumer Discretionary |
13.5 | |||
Communication Services |
9.6 | |||
Consumer Staples |
7.3 | |||
Materials |
6.8 | |||
Industrials |
6.7 | |||
Energy |
5.2 | |||
Utilities |
2.9 | |||
Health Care |
2.3 | |||
Real Estate |
1.0 |
GEOGRAPHIC ALLOCATION | ||||
Country/Geographic Region | |
Percent of Total Investments |
(a) | |
China |
27.5 | % | ||
India |
18.1 | |||
Taiwan |
15.2 | |||
South Korea |
12.8 | |||
Brazil |
5.1 | |||
Saudi Arabia |
2.9 | |||
Mexico |
2.7 | |||
Indonesia |
2.3 | |||
South Africa |
2.2 | |||
United Arab Emirates |
2.2 | |||
Thailand |
1.4 | |||
Turkey |
1.2 | |||
Qatar |
1.1 | |||
Malaysia |
1.0 | |||
Other (each representing less than 1%) |
4.3 |
(a) |
Excludes money market funds. |
6 |
2 0 2 3 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Fund Summary as of August 31, 2023
|
iShares® ESG Aware MSCI EM ETF |
Investment Objective
The iShares ESG Aware MSCI EM ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization emerging market equities that have positive environmental, social and governance characteristics as identified by the index provider while exhibiting risk and return characteristics similar to those of the parent index, as represented by the MSCI Emerging Markets Extended ESG Focus 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 | Since Inception |
1 Year | 5 Years | Since Inception |
|||||||||||||||||||||||
Fund NAV |
1.81 | % | 0.87 | % | 5.19 | % | 1.81 | % | 4.42 | % | 43.79 | % | ||||||||||||||||
Fund Market |
1.98 | 0.71 | 5.13 | 1.98 | 3.61 | 43.22 | ||||||||||||||||||||||
Index |
1.46 | 1.23 | 5.67 | 1.46 | 6.28 | 48.50 |
GROWTH OF $10,000 INVESTMENT
(SINCE INCEPTION AT NET ASSET VALUE)
The inception date of the Fund was June 28, 2016. The first day of secondary market trading was June 30, 2016.
Index performance through May 31, 2018 reflects the performance of the MSCI Emerging Markets ESG Focus Index. Index performance beginning on June 1, 2018 reflects the performance of the MSCI Emerging Markets Extended ESG Focus 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 | |||||||||||||||||||||||||||||||||
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Beginning Account Value (03/01/23) |
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Ending Account Value (08/31/23) |
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Expenses Paid During the Period |
(a) |
|
Beginning Account Value (03/01/23) |
|
|
Ending Account Value (08/31/23) |
|
|
Expenses Paid During the Period |
(a) |
|
Annualized Expense Ratio |
| ||||||||||||||
$ 1,000.00 | $ 1,037.70 | $ 1.34 | $ 1,000.00 | $ 1,023.90 | $ 1.33 | 0.26 | % |
(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 |
Fund Summary as of August 31, 2023 (continued)
|
iShares® ESG Aware MSCI EM ETF |
Portfolio Management Commentary
Investor interest in the environmental, social, and governance (“ESG”) attributes of companies was mixed during the reporting period. Globally, fund flows to ESG-focused investments slowed in the first half of 2023 while remaining net positive.
During the reporting period, the Index of emerging market stocks with a tilt towards favorable ESG characteristics posted a modest advance. Taiwanese stocks contributed the most to the Index’s return, led by the information technology sector. Personal computer sales rebounded from a post-coronavirus pandemic slump, driving a notable recovery in industry profits late in the reporting period.
Mexican stocks also advanced, as the beverages industry in the consumer staples sector posted gains amid high consumer demand and effective digital initiatives to improve operations. Stocks from South Korea also contributed due to optimism surrounding the effect of new artificial intelligence advances on the information technology sector.
On the downside, Chinese stocks detracted from the Index’s return. Concerns about a slowdown in China’s consumer spending weighed on the industry.
In terms of relative performance, the Index was nearly in line with the broader market, as represented by the MSCI Emerging Markets Index. The Index balances seeking similar risk and return to the broad market while tilting towards companies with favorable ESG characteristics. Compared to the broader market, the Index held an underweight position in the utilities sector which helped support relative performance. Stock selection in the information technology sector also contributed to the Index’s relative performance, while stock selection in the industrials sector and financials sector detracted.
Portfolio Information
SECTOR ALLOCATION | ||||
Sector | |
Percent of Total Investments |
(a) | |
Financials |
24.9 | % | ||
Information Technology |
21.1 | |||
Consumer Discretionary |
14.0 | |||
Communication Services |
11.6 | |||
Consumer Staples |
5.9 | |||
Materials |
5.8 | |||
Industrials |
5.5 | |||
Energy |
4.5 | |||
Health Care |
3.8 | |||
Utilities |
1.6 | |||
Real Estate |
1.3 |
GEOGRAPHIC ALLOCATION | ||||
Country/Geographic Region | |
Percent of Total Investments |
(a) | |
China |
29.2 | % | ||
Taiwan |
16.3 | |||
India |
14.6 | |||
South Korea |
12.7 | |||
Brazil |
4.7 | |||
Saudi Arabia |
3.5 | |||
South Africa |
3.4 | |||
Thailand |
2.9 | |||
Mexico |
2.3 | |||
Malaysia |
2.2 | |||
Indonesia |
1.7 | |||
United Arab Emirates |
1.4 | |||
Other (each representing less than 1%) |
5.1 |
(a) |
Excludes money market funds. |
8 |
2 0 2 3 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Fund Summary as of August 31, 2023
|
iShares® MSCI Emerging Markets ex China ETF |
Investment Objective
The iShares MSCI Emerging Markets ex China ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization emerging market equities, excluding China, as represented by the MSCI Emerging Markets ex China 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 | Since Inception |
1 Year | 5 Years | Since Inception |
|||||||||||||||||||||||
Fund NAV |
5.69 | % | 3.09 | % | 2.59 | % | 5.69 | % | 16.46 | % | 16.93 | % | ||||||||||||||||
Fund Market |
6.71 | 3.05 | 2.61 | 6.71 | 16.19 | 17.12 | ||||||||||||||||||||||
Index |
5.48 | 3.53 | 3.05 | 5.48 | 18.93 | 20.18 |
GROWTH OF $10,000 INVESTMENT
(SINCE INCEPTION AT NET ASSET VALUE)
The inception date of the Fund was July 18, 2017. The first day of secondary market trading was July 20, 2017.
Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||||||
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Beginning Account Value (03/01/23) |
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Ending Account Value (08/31/23) |
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Expenses Paid During the Period |
(a) |
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Beginning Account Value (03/01/23) |
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Ending Account Value (08/31/23) |
|
|
Expenses Paid During the Period |
(a) |
|
Annualized Expense Ratio |
| ||||||||||||||
$ 1,000.00 | $ 1,073.60 | $ 1.31 | $ 1,000.00 | $ 1,023.90 | $ 1.28 | 0.25 | % |
(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 |
Fund Summary as of August 31, 2023 (continued)
|
iShares® MSCI Emerging Markets ex China ETF |
Portfolio Management Commentary
Emerging market stocks outside of China advanced during the reporting period, as the resilient global economic environment reassured investors. The declining value of the U.S. dollar relative to many other currencies and the slowing pace of the Fed’s interest rate increases also supported emerging market stocks.
South Korean stocks contributed the most to the Index’s return, led by the information technology sector. A U.S. law enacted in August 2022 encouraged South Korean companies in the technology hardware and equipment industry to expand manufacturing in the U.S. Investors also responded favorably to early-2023 production cuts by microchip producers. The South Korean materials sector also contributed, led by the steel industry. As a South Korean steel company diversified into electric vehicle battery production, it benefited from investor optimism that a U.S. automaker will soon pivot from Chinese battery producers to South Korean producers.
Taiwanese information technology stocks contributed meaningfully to the Index’s performance. A slowdown in the U.S. inflation rate supported Taiwanese information technology stocks, as investors grew optimistic that the monetary tightening cycle was nearing an end. Companies in the technology hardware, storage, and peripherals industry and the semiconductors industry were buoyed by growing investor interest in technologies related to artificial intelligence (“AI”). In this environment, Taiwanese companies that manufacture AI servers and produce microchips for AI applications posted strong gains.
Mexican stocks also contributed, led by the consumer staples sector. The beverages industry advanced, as strong sales growth across business segments benefited a leading operator of convenience stores and bottling operations. The company’s strategic investments in digital enterprises further buoyed investor sentiment. Brazilian stocks also contributed, led by the energy sector. Investors reacted positively to the new government’s policies on pricing and capital allocation for a state-owned oil company.
On the downside, stocks in Saudi Arabia and Qatar weighed on the Index’s performance, driven by the financials sector. Banks in both countries were negatively impacted by large investments in a Swiss financial services company that was forced by the Swiss government into a takeover arrangement with a competing firm.
Portfolio Information
SECTOR ALLOCATION | ||||
Sector | |
Percent of Total Investments |
(a) | |
Information Technology |
26.7 | % | ||
Financials |
24.8 | |||
Materials |
10.2 | |||
Industrials |
7.5 | |||
Consumer Staples |
6.5 | |||
Consumer Discretionary |
6.4 | |||
Energy |
5.9 | |||
Communication Services |
5.1 | |||
Health Care |
3.0 | |||
Utilities |
2.7 | |||
Real Estate |
1.2 |
GEOGRAPHIC ALLOCATION | ||||
Country/Geographic Region | |
Percent of Total Investments |
(a) | |
India |
21.5 | % | ||
Taiwan |
21.2 | |||
South Korea |
17.9 | |||
Brazil |
7.5 | |||
Saudi Arabia |
6.2 | |||
South Africa |
4.1 | |||
Mexico |
3.7 | |||
Thailand |
2.9 | |||
Indonesia |
2.9 | |||
Malaysia |
2.0 | |||
United Arab Emirates |
1.9 | |||
Qatar |
1.3 | |||
Poland |
1.2 | |||
Kuwait |
1.2 | |||
Turkey |
1.0 | |||
Other (each representing less than 1%) |
3.5 |
(a) |
Excludes money market funds. |
10 |
2 0 2 3 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Fund Summary as of August 31, 2023 | iShares® MSCI Emerging Markets Min Vol Factor ETF |
Investment Objective
The iShares MSCI Emerging Markets Min Vol Factor ETF (the “Fund”) seeks to track the investment results of an index composed of emerging market equities that, in the aggregate, have lower volatility characteristics relative to the broader emerging equity markets, as represented by the MSCI Emerging Markets Minimum Volatility (USD) 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 |
1.62 | % | 0.68 | % | 2.25 | % | 1.62 | % | 3.45 | % | 24.95 | % | ||||||||||||||||
Fund Market |
1.49 | 0.64 | 2.31 | 1.49 | 3.24 | 25.66 | ||||||||||||||||||||||
Index |
1.76 | 1.12 | 2.58 | 1.76 | 5.74 | 29.07 |
GROWTH OF $10,000 INVESTMENT
(AT NET ASSET VALUE)
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 (03/01/23) |
|
|
Ending Account Value (08/31/23) |
|
|
Expenses Paid During the Period |
(a) |
|
Beginning Account Value (03/01/23) |
|
|
Ending Account Value (08/31/23) |
|
|
Expenses Paid During the Period |
(a) |
|
Annualized Expense Ratio |
| ||||||||
$ 1,000.00 | $ 1,035.40 | $ 1.28 | $ 1,000.00 | $ 1,023.90 | $ 1.28 | 0.25 | % |
(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 |
Fund Summary as of August 31, 2023 (continued) | iShares® MSCI Emerging Markets Min Vol Factor ETF |
Portfolio Management Commentary
Lower-volatility stocks in emerging markets posted a small gain for the reporting period. Taiwanese stocks contributed the most to the Index’s return, as the Taiwanese economy returned to growth in the second quarter of 2023 and unemployment fell to the lowest level in 23 years. Exports of microchips to the U.S. continued to increase, and the 2022 CHIPS and Science Act in the U.S. encouraged Taiwanese investment in U.S. semiconductor manufacturing facilities.
The Taiwanese information technology sector led the advance, as companies in its technology hardware, storage, and peripherals industry were buoyed by growing investor interest in technologies related to artificial intelligence (“AI”). In this environment, companies involved in AI-related activities, such as manufacturing AI servers and producing chips for AI applications, posted strong gains. Continued data center growth fueled robust sales of high-end power units used in their construction, bolstering profits in the industry. A slowdown in the U.S. inflation rate also provided a tailwind to Taiwanese information technology stocks, as investors grew optimistic that the monetary tightening cycle was nearing an end.
Indian stocks also advanced, led by the healthcare sector. Strong sales of generic drugs in the U.S. and the acquisition of a U.S. biotechnology firm benefited Indian pharmaceuticals companies. Collaboration with a U.S. online pharmacy dedicated to low-cost generic drug sales bolstered the industry’s presence in the critical U.S. market.
On the downside, Qatari stocks detracted from the Index’s performance, particularly stocks in the financials sector. Prices for liquefied natural gas, Qatar’s largest export product, dropped by more than two-thirds, as global markets adjusted to supply disruptions following Russia’s invasion of Ukraine in early 2022. This decline negatively impacted stocks in the banking industry, reflecting banks’ significant loan exposure to oil and gas businesses faced with lower values for their products.
In terms of relative performance, the Index was nearly in line with the broader market, as measured by the MSCI Emerging Markets Index. Stocks with low-volatility characteristics generally perform better in an environment of market declines or muted market returns. Looking at sectors, the Index had an overweight position in the healthcare sector and an underweight position in the information technology sector. Both positions detracted from the Index’s relative performance. Stock selection in the financials, industrials, and materials sectors also detracted.
Portfolio Information
SECTOR ALLOCATION
Sector | |
Percent
of Total Investments |
(a) | |
Financials |
22.6 | % | ||
Information Technology |
17.3 | |||
Communication Services |
14.4 | |||
Consumer Staples |
11.1 | |||
Health Care |
9.4 | |||
Consumer Discretionary |
8.3 | |||
Industrials |
5.0 | |||
Materials |
4.5 | |||
Utilities |
3.7 | |||
Energy |
2.4 | |||
Real Estate |
1.3 |
GEOGRAPHIC ALLOCATION
Country/Geographic Region | |
Percent of Total Investments |
(a) | |
China |
23.0 | % | ||
Taiwan |
18.5 | |||
India |
16.1 | |||
Saudi Arabia |
9.4 | |||
South Korea |
7.5 | |||
Thailand |
5.8 | |||
Malaysia |
4.4 | |||
United Arab Emirates |
4.0 | |||
Qatar |
2.6 | |||
Kuwait |
2.5 | |||
Philippines |
1.5 | |||
Indonesia |
1.3 | |||
Mexico |
1.0 | |||
Other (each representing less than 1%) |
2.4 |
(a) |
Excludes money market funds. |
12 |
2 0 2 3 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Fund Summary as of August 31, 2023 | iShares® MSCI Global Min Vol Factor ETF |
Investment Objective
The iShares MSCI Global MinVol Factor ETF (the “Fund”) seeks to track the investment results of an index composed of developed and emerging market equities that, in the aggregate, have lower volatility characteristics relative to the broader developed and emerging equity markets, as represented by the MSCI ACWI Minimum Volatility (USD) 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 |
5.00 | % | 4.55 | % | 7.36 | % | 5.00 | % | 24.89 | % | 103.44 | % | ||||||||||||||||
Fund Market |
5.07 | 4.56 | 7.37 | 5.07 | 24.98 | 103.64 | ||||||||||||||||||||||
Index |
4.61 | 4.39 | 7.17 | 4.61 | 23.95 | 99.79 |
GROWTH OF $10,000 INVESTMENT
(AT NET ASSET VALUE)
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 (03/01/23) |
|
|
Ending Account Value (08/31/23) |
|
|
Expenses Paid During the Period |
(a) |
|
Beginning Account Value (03/01/23) |
|
|
Ending Account Value (08/31/23) |
|
|
Expenses Paid During the Period |
(a) |
|
Annualized Expense Ratio |
| ||||||||||||
$ 1,000.00 | $ 1,057.10 | $ 1.04 | $ 1,000.00 | $ 1,024.20 | $ 1.02 | 0.20 | % |
(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 |
Fund Summary as of August 31, 2023 (continued) | iShares® MSCI Global Min Vol Factor ETF |
Portfolio Management Commentary
Lower-volatility global stocks advanced for the reporting period, as the world economy showed resilience despite the challenges of inflation and higher interest rates. Stocks in the U.S., which represented approximately 56% of the Index on average, contributed the most to the Index’s return. Solid economic growth and low unemployment helped support strong consumer spending, benefiting U.S. stocks.
The U.S. healthcare sector advanced notably, as innovation in development of new treatments for common medical conditions drove gains in the sector. The biotechnology industry was a leading source of strength, helped by approval of a treatment for several eye diseases. Food and Drug Administration approval of a drug targeting a type of breast cancer bolstered the biotechnology industry’s gains, and development of a promising diabetes drug for treatment of obesity buoyed the pharmaceuticals industry. The U.S. information technology sector also contributed to the Index’s return, particularly the software industry. The rapidly growing use of artificial intelligence (“AI”) applications drove higher revenue and earnings in the industry, as spending on cloud services to power AI increased sharply.
Japanese stocks also gained, helped by Japan’s improving economy and corporate reforms designed to reorient focus on profits. In October 2022, Japan lifted strict coronavirus pandemic-related border controls, driving a significant increase in tourism and stimulating consumer spending. Stocks in the industrials sector advanced, as strong performance in food and retail operations boosted earnings for a large company in the trading companies and distributors industry.
Equities from Taiwan advanced amid strength in the information technology sector. Companies in the technology hardware, storage, and peripherals industry were buoyed by growing investor interest in technologies related to AI, benefiting companies that manufacture AI servers and produce chips for AI applications.
In terms of relative performance, the Index significantly underperformed the broader market, as measured by the MSCI All Country World Index. Stocks with low-volatility characteristics generally perform better in an environment of market declines or muted market returns. Consequently, as global stocks rebounded, led by large information technology companies, lower-volatility stocks posted generally lower returns. Looking at sectors, stock selection in the communication services sector was the largest detractor from the Index’s relative performance. An underweight position in the information technology sector, which rallied sharply during the reporting period, also detracted, as did an overweight position in the utilities sector.
Portfolio Information
SECTOR ALLOCATION |
| |||
Sector | |
Percent
of Total Investments |
(a) | |
Health Care |
18.0 | % | ||
Information Technology |
17.3 | |||
Financials |
13.0 | |||
Communication Services |
12.0 | |||
Consumer Staples |
11.9 | |||
Industrials |
9.2 | |||
Utilities |
7.1 | |||
Consumer Discretionary |
5.9 | |||
Materials |
3.4 | |||
Energy |
1.9 | |||
Real Estate |
0.3 |
GEOGRAPHIC ALLOCATION
Country/Geographic Region | |
Percent of Total Investments |
(a) | |
United States |
56.3 | % | ||
Japan |
10.7 | |||
China |
7.4 | |||
Taiwan |
5.3 | |||
India |
4.9 | |||
Switzerland |
3.4 | |||
Canada |
1.9 | |||
Hong Kong |
1.8 | |||
Saudi Arabia |
1.4 | |||
Singapore |
1.0 | |||
Other (each representing less than 1%) |
5.9 |
(a) |
Excludes money market funds. |
14 |
2 0 2 3 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
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. Since shares of a fund may not trade in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary market trading in shares of the fund, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.
Shareholders of each Fund may incur the following charges: (1) transactional expenses, including brokerage commissions on purchases and sales of fund shares and (2) ongoing expenses, including management fees and other fund expenses. The expense examples shown (which are based on a hypothetical investment of $1,000 invested at the beginning of the period and held through the end of the period) are intended to assist shareholders both in calculating expenses based on an investment in each Fund and in comparing these expenses with similar costs of investing in other funds.
The expense examples provide information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. In order to estimate the expenses a shareholder paid during the period covered by this report, shareholders can divide their account value by $1,000 and then multiply the result by the number under the heading entitled “Expenses Paid During the Period.”
The expense examples also provide information about hypothetical account values and hypothetical expenses based on a fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. In order to assist shareholders in comparing the ongoing expenses of investing in the Funds and other funds, compare the 5% hypothetical examples with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
The expenses shown in the expense examples are intended to highlight shareholders’ ongoing costs only and do not reflect any transactional expenses, such as brokerage commissions and other fees paid on purchases and sales of fund shares. Therefore, the hypothetical examples are useful in comparing ongoing expenses only and will not help shareholders determine the relative total expenses of owning different funds. If these transactional expenses were included, shareholder expenses would have been higher.
A B O U T F U N D P E R F O R M A N C E / D I S C L O S U R E O F E X P E N S E S |
15 |
August 31, 2023 |
iShares® Emerging Markets Equity Factor ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
||||||||
Brazil — 3.8% | ||||||||
B3 SA - Brasil, Bolsa, Balcao |
1,196,719 | $ | 3,124,681 | |||||
Banco do Brasil SA |
149,227 | 1,419,330 | ||||||
Centrais Eletricas Brasileiras SA |
101,092 | 719,804 | ||||||
Cia. de Saneamento Basico do Estado de Sao Paulo |
32,423 | 379,225 | ||||||
Cia. Energetica de Minas Gerais |
57,426 | 228,333 | ||||||
Cia. Siderurgica Nacional SA |
183,021 | 447,569 | ||||||
CPFL Energia SA |
61,118 | 421,478 | ||||||
CSN Mineracao SA |
847,441 | 732,433 | ||||||
Hypera SA |
74,783 | 588,804 | ||||||
JBS SA |
584,285 | 2,170,989 | ||||||
Neoenergia SA |
191,252 | 704,443 | ||||||
Petroleo Brasileiro SA |
327,780 | 2,286,229 | ||||||
Porto Seguro SA |
54,884 | 289,268 | ||||||
Raia Drogasil SA |
45,244 | 251,069 | ||||||
Sendas Distribuidora SA |
75,409 | 176,795 | ||||||
Suzano SA |
89,905 | 910,479 | ||||||
Tim SA |
394,947 | 1,149,259 | ||||||
Vale SA |
370,316 | 4,866,705 | ||||||
Vibra Energia SA |
325,625 | 1,213,848 | ||||||
WEG SA |
170,968 | 1,238,746 | ||||||
|
|
|||||||
23,319,487 | ||||||||
Chile — 0.4% | ||||||||
Banco de Chile |
3,993,209 | 435,590 | ||||||
Banco Santander Chile |
1,292,558 | 61,856 | ||||||
Cencosud SA |
477,107 | 1,021,295 | ||||||
Colbun SA |
1,371,372 | 215,156 | ||||||
Empresas CMPC SA |
284,569 | 516,691 | ||||||
Empresas COPEC SA |
37,387 | 270,043 | ||||||
Quinenco SA |
55,606 | 174,841 | ||||||
|
|
|||||||
2,695,472 | ||||||||
China — 27.5% | ||||||||
37 Interactive Entertainment Network Technology |
||||||||
Group Co. Ltd., Class A |
230,600 | 781,624 | ||||||
3SBio Inc.(a) |
330,500 | 276,387 | ||||||
Agricultural Bank of China Ltd., Class A |
936,300 | 445,021 | ||||||
Agricultural Bank of China Ltd., Class H |
1,056,000 | 361,949 | ||||||
AIMA Technology Group Co. Ltd. |
89,500 | 348,818 | ||||||
Alibaba Group Holding Ltd.(b) |
1,369,348 | 15,892,838 | ||||||
Anhui Guangxin Agrochemical Co. Ltd. |
96,860 | 267,516 | ||||||
Anhui Gujing Distillery Co. Ltd., Class A |
12,300 | 486,489 | ||||||
Anhui Jinhe Industrial Co. Ltd. |
29,600 | 89,089 | ||||||
ANTA Sports Products Ltd. |
139,000 | 1,566,975 | ||||||
Autohome Inc., ADR |
12,818 | 370,440 | ||||||
AVIC Industry-Finance Holdings Co. Ltd., Class A |
783,400 | 397,305 | ||||||
Baidu Inc.(b) |
201,650 | 3,601,315 | ||||||
Bank of Chengdu Co. Ltd., Class A |
44,300 | 83,404 | ||||||
Bank of China Ltd., Class A |
108,900 | 56,098 | ||||||
Bank of China Ltd., Class H |
9,829,000 | 3,331,216 | ||||||
Bank of Communications Co. Ltd., Class H |
1,283,000 | 734,326 | ||||||
Beijing Tongrentang Co. Ltd., Class A |
49,300 | 380,928 | ||||||
Biem.L.Fdlkk Garment Co. Ltd. |
48,300 | 229,109 | ||||||
Bosideng International Holdings Ltd. |
2,920,000 | 1,145,847 | ||||||
BYD Co. Ltd., Class A |
6,000 | 205,788 | ||||||
BYD Co. Ltd., Class H |
67,000 | 2,104,514 | ||||||
C&S Paper Co. Ltd., Class A |
48,500 | 68,694 | ||||||
Caida Securities Co. Ltd. |
302,100 | 344,711 | ||||||
China CITIC Bank Corp. Ltd., Class A |
463,700 | 348,367 | ||||||
China Coal Energy Co. Ltd. |
214,600 | 237,425 |
Security | Shares | Value | ||||||
China (continued) | ||||||||
China Coal Energy Co. Ltd., Class H |
879,000 | $ | 599,634 | |||||
China Construction Bank Corp., Class H |
10,596,000 | 5,669,399 | ||||||
China Galaxy Securities Co. Ltd., Class H |
1,928,500 | 1,037,464 | ||||||
China Hongqiao Group Ltd. |
440,500 | 438,485 | ||||||
China International Capital Corp. Ltd., Class H(a) |
557,600 | 1,070,944 | ||||||
China Life Insurance Co. Ltd., Class H |
346,000 | 524,412 | ||||||
China Medical System Holdings Ltd. |
429,000 | 617,872 | ||||||
China Merchants Bank Co. Ltd., Class H |
557,500 | 2,207,599 | ||||||
China Merchants Securities Co. Ltd., Class H(a)(c) |
443,800 | 408,968 | ||||||
China National Building Material Co. Ltd., Class H |
796,000 | 404,580 | ||||||
China National Software & Service Co. Ltd., Class A |
88,220 | 523,129 | ||||||
China Overseas Property Holdings Ltd. |
480,000 | 573,109 | ||||||
China Pacific Insurance Group Co. Ltd., Class H |
31,400 | 71,813 | ||||||
China Petroleum & Chemical Corp., Class A |
605,800 | 505,186 | ||||||
China Petroleum & Chemical Corp., Class H |
2,496,000 | 1,459,426 | ||||||
China Railway Group Ltd., Class H |
383,000 | 202,619 | ||||||
China Resources Beer Holdings Co. Ltd. |
216,000 | 1,268,211 | ||||||
China Resources Double Crane Pharmaceutical Co. Ltd., Class A |
55,200 | 122,372 | ||||||
China Resources Land Ltd. |
174,000 | 735,446 | ||||||
China Resources Mixc Lifestyle Services Ltd.(a) |
46,800 | 202,229 | ||||||
China Resources Pharmaceutical Group Ltd.(a) |
1,090,500 | 727,957 | ||||||
China Resources Power Holdings Co. Ltd. |
262,000 | 512,953 | ||||||
China Resources Sanjiu Medical & Pharmaceutical Co. Ltd., Class A |
73,700 | 481,838 | ||||||
China Shenhua Energy Co. Ltd., Class A |
188,800 | 730,924 | ||||||
China Shenhua Energy Co. Ltd., Class H |
244,000 | 710,166 | ||||||
China World Trade Center Co. Ltd. |
43,600 | 114,954 | ||||||
China Yongda Automobiles Services Holdings Ltd. |
939,000 | 416,519 | ||||||
Chongqing Changan Automobile Co. Ltd., Class A |
218,200 | 376,503 | ||||||
Chongqing Rural Commercial Bank Co. Ltd., Class H |
765,000 | 270,053 | ||||||
Chow Tai Fook Jewellery Group Ltd.(c) |
431,000 | 653,552 | ||||||
CITIC Ltd. |
42,000 | 41,681 | ||||||
CMOC Group Ltd., Class H |
519,000 | 309,617 | ||||||
CNPC Capital Co. Ltd., NVS |
35,400 | 32,668 | ||||||
COFCO Capital Holdings Co. Ltd. |
161,400 | 169,544 | ||||||
COSCO Shipping Holdings Co. Ltd., Class H |
557,500 | 571,708 | ||||||
Country Garden Holdings Co. Ltd.(b)(c) |
440,000 | 49,873 | ||||||
CSC Financial Co. Ltd., Class A |
159,700 | 566,195 | ||||||
CSC Financial Co. Ltd., Class H(a) |
676,000 | 719,543 | ||||||
Daan Gene Co. Ltd., Class A |
93,110 | 120,054 | ||||||
Daqo New Energy Corp., ADR(b)(c) |
10,858 | 401,420 | ||||||
DaShenLin Pharmaceutical Group Co. Ltd., Class A |
94,620 | 346,457 | ||||||
Eastern Air Logistics Co. Ltd. |
131,400 | 222,862 | ||||||
Ecovacs Robotics Co. Ltd., Class A |
59,600 | 434,586 | ||||||
Focus Media Information Technology Co. Ltd., Class A |
391,600 | 413,630 | ||||||
G-Bits Network Technology Xiamen Co. Ltd., Class A |
7,700 | 441,941 | ||||||
GD Power Development Co. Ltd., Class A |
1,289,000 | 621,802 | ||||||
GF Securities Co. Ltd., Class H |
435,400 | 621,258 | ||||||
Giant Biogene Holding Co. Ltd.(a)(b) |
174,200 | 835,291 | ||||||
Great Wall Motor Co. Ltd., Class H |
391,500 | 463,849 | ||||||
Gree Electric Appliances Inc. of Zhuhai, Class A |
17,100 | 84,105 | ||||||
Gree Real Estate Co. Ltd. |
71,500 | 61,202 | ||||||
Greentown China Holdings Ltd. |
222,500 | 264,236 | ||||||
Guangdong Zhongsheng Pharmaceutical Co. Ltd. |
77,400 | 160,912 | ||||||
Guosheng Financial Holding Inc.(b) |
114,000 | 164,614 | ||||||
H World Group Ltd.(b) |
130,500 | 525,894 | ||||||
Hainan Haide Capital Management Co. Ltd. |
130,690 | 210,664 | ||||||
Hangzhou Binjiang Real Estate Group Co. Ltd. |
315,600 | 455,522 | ||||||
Hangzhou Robam Appliances Co. Ltd., Class A |
22,000 | 83,106 |
16 |
2 0 2 3 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (continued) August 31, 2023 |
iShares® Emerging Markets Equity Factor ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
China (continued) | ||||||||
Heilongjiang Agriculture Co. Ltd., Class A |
184,000 | $ | 339,069 | |||||
Hengdian Group DMEGC Magnetics Co. Ltd. |
89,300 | 201,199 | ||||||
Hisense Home Appliances Group Co. Ltd. |
87,600 | 294,739 | ||||||
Holly Futures Co. Ltd. |
46,100 | 82,202 | ||||||
Hopson Development Holdings Ltd.(b) |
854,080 | 523,374 | ||||||
Huatai Securities Co. Ltd., Class H(a) |
181,600 | 238,948 | ||||||
Hundsun Technologies Inc., Class A |
50,900 | 251,826 | ||||||
Industrial & Commercial Bank of China Ltd., Class H |
8,637,000 | 3,959,868 | ||||||
Inner Mongolia Dazhong Mining Co. Ltd. |
89,900 | 132,624 | ||||||
Inner Mongolia Eerduosi Resources Co. Ltd., Class B |
138,720 | 126,934 | ||||||
JD Health International Inc.(a)(b) |
158,050 | 852,152 | ||||||
JD.com Inc., Class A |
199,000 | 3,305,012 | ||||||
Jiangsu Expressway Co. Ltd., Class H |
82,000 | 74,051 | ||||||
Jiangsu King’s Luck Brewery JSC Ltd., Class A |
100,000 | 822,896 | ||||||
Jiangxi Copper Co. Ltd., Class H |
126,000 | 196,245 | ||||||
Jinhui Liquor Co. Ltd. |
52,200 | 186,802 | ||||||
Jinneng Holding Shanxi Coal Industry Co. Ltd. |
161,200 | 216,537 | ||||||
JiuGui Liquor Co. Ltd., Class A |
31,200 | 383,955 | ||||||
Jizhong Energy Resources Co. Ltd. |
346,400 | 290,067 | ||||||
Joincare Pharmaceutical Group Industry Co. Ltd., Class A |
189,000 | 296,385 | ||||||
Joyoung Co. Ltd., Class A |
70,100 | 133,880 | ||||||
JOYY Inc., ADR |
4,854 | 166,589 | ||||||
Kanzhun Ltd., ADR(b) |
33,635 | 497,798 | ||||||
KE Holdings Inc., ADR(b) |
30,731 | 528,573 | ||||||
Kehua Data Co. Ltd. |
14,600 | 63,903 | ||||||
Kingboard Holdings Ltd. |
228,500 | 518,523 | ||||||
Kingboard Laminates Holdings Ltd. |
1,342,000 | 1,115,310 | ||||||
KingClean Electric Co. Ltd. |
37,500 | 137,115 | ||||||
Kingnet Network Co. Ltd.(b) |
221,700 | 461,212 | ||||||
Koolearn Technology Holding Ltd.(a)(b) |
71,000 | 359,670 | ||||||
Kuaishou Technology(a)(b) |
226,900 | 1,857,385 | ||||||
Kunlun Energy Co. Ltd. |
728,000 | 532,957 | ||||||
Kweichow Moutai Co. Ltd., Class A |
4,700 | 1,194,759 | ||||||
Legend Holdings Corp., Class H(a) |
170,000 | 151,961 | ||||||
Lenovo Group Ltd. |
1,220,000 | 1,378,998 | ||||||
Li Auto Inc.(b) |
95,100 | 1,979,966 | ||||||
Li Ning Co. Ltd. |
188,000 | 888,545 | ||||||
Lufax Holding Ltd., ADR |
127,394 | 154,147 | ||||||
Meihua Holdings Group Co. Ltd. |
307,800 | 386,149 | ||||||
Meituan, Class B(a)(b) |
436,120 | 7,217,415 | ||||||
Metallurgical Corp. of China Ltd., Class H |
3,150,000 | 686,591 | ||||||
MMG Ltd.(b) |
824,000 | 273,427 | ||||||
NetEase Inc. |
198,200 | 4,106,200 | ||||||
New Oriental Education & Technology Group Inc.(b) |
76,400 | 414,490 | ||||||
Newland Digital Technology Co. Ltd., Class A(b) |
98,900 | 270,924 | ||||||
Nongfu Spring Co. Ltd., Class H(a) |
378,800 | 2,127,494 | ||||||
Northeast Securities Co. Ltd., Class A |
240,300 | 260,156 | ||||||
Opple Lighting Co. Ltd. |
53,800 | 158,638 | ||||||
Orient Overseas International Ltd. |
132,000 | 1,770,290 | ||||||
Orient Securities Co. Ltd.(a)(c) |
1,450,000 | 804,654 | ||||||
People.cn Co. Ltd. |
57,700 | 329,327 | ||||||
People’s Insurance Co. Group of China Ltd. (The), Class H |
1,377,000 | 468,708 | ||||||
Perfect World Co. Ltd., Class A |
192,200 | 364,749 | ||||||
PetroChina Co. Ltd., Class A |
2,163,500 | 2,306,081 | ||||||
PetroChina Co. Ltd., Class H |
416,000 | 300,088 | ||||||
PICC Property & Casualty Co. Ltd., Class H |
429,000 | 493,332 | ||||||
Pinduoduo Inc., ADR(b)(c) |
71,126 | 7,039,340 | ||||||
Ping An Insurance Group Co. of China Ltd., Class H |
590,000 | 3,532,416 |
Security | Shares | Value | ||||||
China (continued) | ||||||||
Pingdingshan Tianan Coal Mining Co. Ltd. |
57,500 | $ | 67,417 | |||||
Postal Savings Bank of China Co. Ltd., Class H(a) |
2,781,000 | 1,371,673 | ||||||
Qifu Technology Inc. |
53,362 | 907,154 | ||||||
Radiance Holdings Group Co. Ltd.(b)(c) |
328,000 | 151,404 | ||||||
Sanquan Food Co. Ltd., Class A |
102,200 | 206,527 | ||||||
Shaanxi Coal Industry Co. Ltd., Class A |
126,900 | 290,130 | ||||||
Shan Xi Hua Yang Group New Energy Co. Ltd. |
62,300 | 64,709 | ||||||
Shandong Buchang Pharmaceuticals Co. Ltd., Class A |
109,329 | 263,084 | ||||||
Shandong Jinjing Science & Technology Co. Ltd. |
67,000 | 68,242 | ||||||
Shandong Weigao Group Medical Polymer Co. Ltd., Class H |
350,000 | 348,489 | ||||||
Shanghai Baosight Software Co. Ltd., Class B |
343,528 | 780,373 | ||||||
Shanghai Flyco Electrical Appliance Co. Ltd. |
15,100 | 140,737 | ||||||
Shanghai International Port Group Co. Ltd., Class A |
193,481 | 135,684 | ||||||
Shanghai M&G Stationery Inc., Class A |
15,000 | 77,617 | ||||||
Shanghai Stonehill Technology Co.Ltd., Class A |
337,600 | 145,476 | ||||||
Shanghai Wanye Enterprises Co. Ltd. |
64,100 | 139,783 | ||||||
Shanxi Lu’an Environmental Energy Development Co. Ltd., Class A |
214,700 | 480,248 | ||||||
Shanxi Xinghuacun Fen Wine Factory Co. Ltd., Class A |
6,000 | 199,663 | ||||||
Shenzhen Salubris Pharmaceuticals Co. Ltd., Class A |
60,000 | 227,850 | ||||||
Shijiazhuang Yiling Pharmaceutical Co. Ltd., Class A |
121,760 | 389,348 | ||||||
Sino Biopharmaceutical Ltd. |
1,175,000 | 446,016 | ||||||
Sinopec Shanghai Petrochemical Co. Ltd., Class H(b)(c) |
1,750,000 | 245,527 | ||||||
Sinosoft Co. Ltd. |
31,100 | 152,869 | ||||||
Sinotrans Ltd., Class H |
2,610,000 | 1,058,265 | ||||||
Sinotruk Hong Kong Ltd. |
666,000 | 1,235,960 | ||||||
Skshu Paint Co. Ltd., Class A(b) |
9,520 | 98,724 | ||||||
Sun Art Retail Group Ltd. |
593,000 | 138,938 | ||||||
Taiji Computer Corp. Ltd. |
63,400 | 320,718 | ||||||
TAL Education Group, ADR(b) |
101,415 | 714,976 | ||||||
Tencent Holdings Ltd. |
502,900 | 20,840,344 | ||||||
Tingyi Cayman Islands Holding Corp. |
1,024,000 | 1,503,537 | ||||||
Topsports International Holdings Ltd.(a) |
416,000 | 338,779 | ||||||
Trip.com Group Ltd.(b) |
41,450 | 1,632,547 | ||||||
Tsingtao Brewery Co. Ltd., Class H |
86,000 | 715,145 | ||||||
Uni-President China Holdings Ltd. |
479,000 | 354,256 | ||||||
Vipshop Holdings Ltd., ADR(b)(c) |
33,652 | 531,365 | ||||||
Want Want China Holdings Ltd. |
1,728,000 | 1,142,882 | ||||||
Weichai Power Co. Ltd., Class H |
365,000 | 472,829 | ||||||
Xiamen Xiangyu Co. Ltd. |
198,800 | 191,204 | ||||||
Yankuang Energy Group Co. Ltd., Class A |
100,350 | 237,121 | ||||||
Yankuang Energy Group Co. Ltd., Class H(c) |
525,000 | 824,191 | ||||||
Yifeng Pharmacy Chain Co. Ltd., Class A |
16,280 | 79,591 | ||||||
Yixintang Pharmaceutical Group Co. Ltd., Class A |
67,000 | 209,014 | ||||||
Yongan Futures Co. Ltd. |
68,400 | 156,864 | ||||||
Zangge Mining Co. Ltd. |
20,700 | 63,900 | ||||||
Zhejiang Semir Garment Co. Ltd., Class A |
178,000 | 149,384 | ||||||
Zhongshan Broad Ocean Motor Co. Ltd. |
217,500 | 162,252 | ||||||
Zijin Mining Group Co. Ltd., Class H |
364,000 | 570,153 | ||||||
ZTE Corp., Class H |
50,000 | 160,921 | ||||||
|
|
|||||||
166,599,268 | ||||||||
Colombia — 0.1% | ||||||||
Bancolombia SA |
9,698 | 68,992 | ||||||
Grupo Energia Bogota SA ESP |
410,149 | 162,034 | ||||||
Interconexion Electrica SA ESP |
172,843 | 632,976 | ||||||
|
|
|||||||
864,002 |
S C H E D U L E O F I N V E S T M E N T S |
17 |
Schedule of Investments (continued) August 31, 2023 |
iShares® Emerging Markets Equity Factor ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Czech Republic — 0.5% | ||||||||
CEZ AS |
28,858 | $ | 1,228,647 | |||||
Komercni Banka AS |
61,958 | 1,934,720 | ||||||
|
|
|||||||
3,163,367 | ||||||||
Egypt — 0.2% | ||||||||
Eastern Co. SAE |
1,973,210 | 977,550 | ||||||
|
|
|||||||
Greece — 0.5% | ||||||||
Hellenic Telecommunications Organization SA |
76,020 | 1,136,061 | ||||||
JUMBO SA |
7,750 | 239,674 | ||||||
National Bank of Greece SA(b) |
100,737 | 683,981 | ||||||
OPAP SA |
65,835 | 1,111,663 | ||||||
|
|
|||||||
3,171,379 | ||||||||
Hong Kong — 0.3% | ||||||||
BOC Hong Kong Holdings Ltd. |
612,500 | 1,701,702 | ||||||
Simcere Pharmaceutical Group Ltd.(a) |
403,000 | 314,123 | ||||||
|
|
|||||||
2,015,825 | ||||||||
Hungary — 0.2% | ||||||||
MOL Hungarian Oil & Gas PLC |
78,614 | 594,481 | ||||||
OTP Bank Nyrt |
15,700 | 640,204 | ||||||
Richter Gedeon Nyrt |
3,276 | 82,217 | ||||||
|
|
|||||||
1,316,902 | ||||||||
India — 18.1% | ||||||||
3M India Ltd. |
3,047 | 1,146,338 | ||||||
ABB India Ltd. |
29,943 | 1,583,619 | ||||||
ACC Ltd. |
28,576 | 691,844 | ||||||
Adani Enterprises Ltd. |
53,174 | 1,552,373 | ||||||
AIA Engineering Ltd. |
29,650 | 1,322,646 | ||||||
Ambuja Cements Ltd. |
157,877 | 816,356 | ||||||
Apollo Hospitals Enterprise Ltd. |
13,819 | 802,965 | ||||||
Asian Paints Ltd. |
34,392 | 1,352,143 | ||||||
Bajaj Auto Ltd. |
19,818 | 1,103,535 | ||||||
Bajaj Finance Ltd. |
16,943 | 1,464,493 | ||||||
Bharat Electronics Ltd. |
1,296,013 | 2,082,174 | ||||||
Bharti Airtel Ltd. |
169,023 | 1,747,536 | ||||||
Britannia Industries Ltd. |
2,051 | 110,672 | ||||||
CG Power and Industrial Solutions Ltd. |
35,816 | 185,647 | ||||||
Cholamandalam Investment and Finance Co. Ltd. |
14,073 | 190,569 | ||||||
Coal India Ltd. |
348,951 | 968,893 | ||||||
Colgate-Palmolive India Ltd. |
26,774 | 627,698 | ||||||
CRISIL Ltd. |
21,891 | 1,049,412 | ||||||
Cummins India Ltd. |
22,232 | 458,340 | ||||||
Dr. Reddy’s Laboratories Ltd. |
8,791 | 594,664 | ||||||
Emami Ltd. |
142,728 | 903,914 | ||||||
GAIL India Ltd. |
369,764 | 513,505 | ||||||
General Insurance Corp. of India(a)(b) |
69,345 | 182,123 | ||||||
GlaxoSmithKline Pharmaceuticals Ltd. |
24,796 | 428,006 | ||||||
Godrej Properties Ltd.(b) |
20,293 | 403,090 | ||||||
Gujarat Fluorochemicals Ltd. |
20,141 | 740,981 | ||||||
Havells India Ltd. |
88,021 | 1,470,923 | ||||||
HCL Technologies Ltd. |
134,126 | 1,897,433 | ||||||
HDFC Bank Ltd. |
320,088 | 6,061,176 | ||||||
Hero MotoCorp Ltd. |
38,882 | 1,368,723 | ||||||
Hindalco Industries Ltd. |
209,535 | 1,161,655 | ||||||
Hindustan Aeronautics Ltd. |
27,753 | 1,306,057 | ||||||
Hindustan Petroleum Corp. Ltd. |
108,017 | 323,526 | ||||||
ICICI Bank Ltd. |
451,214 | 5,208,785 | ||||||
Indian Oil Corp. Ltd. |
419,955 | 451,688 | ||||||
Indian Railway Finance Corp. Ltd.(a) |
1,741,833 | 1,055,152 | ||||||
Indraprastha Gas Ltd. |
109,501 | 618,190 |
Security | Shares | Value | ||||||
India (continued) | ||||||||
Indus Towers Ltd.(b) |
256,904 | $ 543,255 | ||||||
Info Edge India Ltd. |
4,934 | 257,827 | ||||||
Infosys Ltd. |
467,726 | 8,105,298 | ||||||
InterGlobe Aviation Ltd.(a)(b) |
25,595 | 752,559 | ||||||
Jindal Steel & Power Ltd. |
14,847 | 122,608 | ||||||
JSW Energy Ltd. |
86,491 | 366,278 | ||||||
JSW Steel Ltd. |
8,654 | 81,413 | ||||||
Kotak Mahindra Bank Ltd. |
63,983 | 1,357,711 | ||||||
L&T Technology Services Ltd.(a) |
14,944 | 793,861 | ||||||
Larsen & Toubro Infotech Ltd.(a) |
4,462 | 279,504 | ||||||
Larsen & Toubro Ltd. |
67,559 | 2,204,263 | ||||||
Life Insurance Corp. of India |
29,685 | 231,270 | ||||||
Macrotech Developers Ltd.(b) |
18,131 | 146,674 | ||||||
Mahindra & Mahindra Ltd. |
77,254 | 1,468,881 | ||||||
Marico Ltd. |
33,210 | 228,520 | ||||||
Max Healthcare Institute Ltd.(b) |
8,275 | 58,959 | ||||||
Mphasis Ltd. |
39,866 | 1,168,317 | ||||||
Muthoot Finance Ltd. |
25,985 | 395,386 | ||||||
Nestle India Ltd. |
5,841 | 1,550,519 | ||||||
NHPC Ltd., NVS |
4,735,198 | 2,870,099 | ||||||
NMDC Ltd. |
224,332 | 333,145 | ||||||
NTPC Ltd. |
52,371 | 139,332 | ||||||
Oil & Natural Gas Corp. Ltd. |
264,192 | 555,694 | ||||||
Oil India Ltd. |
271,059 | 893,776 | ||||||
Oracle Financial Services Software Ltd. |
7,508 | 372,400 | ||||||
Page Industries Ltd. |
1,301 | 630,653 | ||||||
Persistent Systems Ltd. |
11,321 | 733,484 | ||||||
Pidilite Industries Ltd. |
3,110 | 94,434 | ||||||
Polycab India Ltd. |
2,876 | 177,861 | ||||||
Power Finance Corp. Ltd. |
1,281,456 | 4,024,442 | ||||||
Power Grid Corp. of India Ltd. |
355,228 | 1,048,477 | ||||||
REC Ltd. |
1,118,914 | 3,223,554 | ||||||
Reliance Industries Ltd. |
229,067 | 6,654,633 | ||||||
SBI Cards & Payment Services Ltd. |
22,608 | 222,852 | ||||||
SBI Life Insurance Co. Ltd.(a) |
36,674 | 572,138 | ||||||
Schaeffler India Ltd. |
4,999 | 184,175 | ||||||
Solar Industries India Ltd. |
2,933 | 171,309 | ||||||
SRF Ltd. |
22,340 | 635,274 | ||||||
Sun Pharmaceutical Industries Ltd. |
33,208 | 445,122 | ||||||
Supreme Industries Ltd. |
29,151 | 1,568,888 | ||||||
Tata Consultancy Services Ltd. |
166,553 | 6,746,043 | ||||||
Tata Elxsi Ltd. |
10,002 | 874,699 | ||||||
Tata Motors Ltd., Class A |
373,288 | 1,799,389 | ||||||
Tata Steel Ltd. |
1,052,742 | 1,561,231 | ||||||
Tech Mahindra Ltd. |
74,050 | 1,073,692 | ||||||
Tube Investments of India Ltd. |
56,529 | 1,978,822 | ||||||
Union Bank of India |
168,648 | 174,814 | ||||||
Varun Beverages Ltd. |
85,433 | 927,010 | ||||||
Vedant Fashions Ltd. |
69,897 | 1,063,117 | ||||||
Vedanta Ltd. |
21,807 | 61,051 | ||||||
Wipro Ltd. |
540,912 | 2,664,414 | ||||||
WNS Holdings Ltd.(b)(c) |
17,344 | 1,133,430 | ||||||
|
|
|||||||
109,669,401 | ||||||||
Indonesia — 2.3% | ||||||||
Adaro Energy Indonesia Tbk PT |
3,850,800 | 674,609 | ||||||
Aneka Tambang Tbk |
475,000 | 61,970 | ||||||
Avia Avian Tbk PT |
1,574,200 | 62,017 | ||||||
Bank Central Asia Tbk PT |
6,280,700 | 3,781,015 | ||||||
Bank Mandiri Persero Tbk PT |
2,653,500 | 1,049,294 | ||||||
Bank Negara Indonesia Persero Tbk PT |
642,800 | 387,098 |
18 |
2 0 2 3 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (continued) August 31, 2023 |
iShares® Emerging Markets Equity Factor ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Indonesia (continued) | ||||||||
Bank Pan Indonesia Tbk PT(b) |
2,640,300 | $ | 226,268 | |||||
Bank Rakyat Indonesia Persero Tbk PT |
3,456,600 | 1,259,226 | ||||||
Bukit Asam Tbk PT |
2,928,000 | 549,507 | ||||||
GoTo Gojek Tokopedia Tbk PT(b) |
36,033,800 | 226,764 | ||||||
Hanjaya Mandala Sampoerna Tbk PT |
12,548,800 | 725,078 | ||||||
Indo Tambangraya Megah Tbk PT |
681,100 | 1,292,874 | ||||||
Kalbe Farma Tbk PT |
755,900 | 89,930 | ||||||
Perusahaan Gas Negara Tbk PT |
2,334,600 | 210,616 | ||||||
Saratoga Investama Sedaya Tbk PT, NVS |
2,881,200 | 314,893 | ||||||
Sumber Alfaria Trijaya Tbk PT |
8,236,000 | 1,568,247 | ||||||
Telkom Indonesia Persero Tbk PT |
2,952,800 | 721,779 | ||||||
Unilever Indonesia Tbk PT |
1,132,000 | 272,775 | ||||||
United Tractors Tbk PT |
141,100 | 240,762 | ||||||
|
|
|||||||
13,714,722 | ||||||||
Kuwait — 0.3% | ||||||||
Gulf Bank KSCP |
270,215 | 220,847 | ||||||
National Bank of Kuwait SAKP |
461,711 | 1,377,810 | ||||||
|
|
|||||||
1,598,657 | ||||||||
Malaysia — 1.0% | ||||||||
Axiata Group Bhd |
277,200 | 141,062 | ||||||
Fraser & Neave Holdings Bhd |
64,400 | 354,142 | ||||||
Genting Bhd |
350,400 | 330,209 | ||||||
Hong Leong Bank Bhd |
184,700 | 794,728 | ||||||
Hong Leong Financial Group Bhd |
112,000 | 439,793 | ||||||
Malaysia Airports Holdings Bhd |
53,200 | 84,477 | ||||||
Petronas Chemicals Group Bhd |
69,200 | 106,197 | ||||||
Petronas Dagangan Bhd |
46,600 | 222,957 | ||||||
Petronas Gas Bhd(c) |
98,000 | 361,586 | ||||||
Public Bank Bhd |
975,900 | 889,561 | ||||||
Sime Darby Bhd |
899,100 | 445,105 | ||||||
Telekom Malaysia Bhd |
136,100 | 149,697 | ||||||
Westports Holdings Bhd |
251,600 | 189,798 | ||||||
YTL Corp. Bhd |
4,088,600 | 1,385,872 | ||||||
|
|
|||||||
5,895,184 | ||||||||
Mexico — 2.7% | ||||||||
America Movil SAB de CV |
2,019,509 | 1,901,007 | ||||||
Banco del Bajio SA(a) |
725,227 | 2,287,482 | ||||||
Cemex SAB de CV(b)(c) |
133,370 | 1,062,959 | ||||||
Coca-Cola Femsa SAB de CV |
110,186 | 933,613 | ||||||
Fomento Economico Mexicano SAB de CV |
170,509 | 1,908,245 | ||||||
Gruma SAB de CV, Class B |
69,615 | 1,162,108 | ||||||
Grupo Aeroportuario del Pacifico SAB de CV, Class B |
118,166 | 2,171,002 | ||||||
Grupo Comercial Chedraui SA de CV |
159,656 | 893,860 | ||||||
Grupo Financiero Banorte SAB de CV, Class O |
151,000 | 1,278,990 | ||||||
Grupo Mexico SAB de CV, Series B |
154,202 | 734,450 | ||||||
Wal-Mart de Mexico SAB de CV |
546,941 | 2,154,660 | ||||||
|
|
|||||||
16,488,376 | ||||||||
Philippines — 0.8% | ||||||||
Bank of the Philippine Islands |
746,848 | 1,450,523 | ||||||
BDO Unibank Inc. |
104,450 | 256,798 | ||||||
DMCI Holdings Inc. |
3,140,000 | 535,470 | ||||||
International Container Terminal Services Inc. |
56,720 | 207,308 | ||||||
Manila Electric Co. |
171,210 | 1,038,993 | ||||||
Metropolitan Bank & Trust Co. |
59,460 | 57,947 | ||||||
PLDT Inc. |
35,460 | 719,634 | ||||||
Semirara Mining & Power Corp., Class A |
1,251,900 | 707,410 | ||||||
|
|
|||||||
4,974,083 | ||||||||
Poland — 0.8% | ||||||||
Bank Millennium SA(b) |
142,730 | 210,108 |
Security | Shares | Value | ||||||
Poland (continued) | ||||||||
Bank Polska Kasa Opieki SA |
13,678 | $ | 357,078 | |||||
CD Projekt SA |
2,621 | 93,554 | ||||||
KGHM Polska Miedz SA |
24,038 | 662,857 | ||||||
LPP SA |
496 | 1,668,606 | ||||||
mBank SA(b) |
4,046 | 420,205 | ||||||
Orange Polska SA |
550,883 | 955,472 | ||||||
PGE Polska Grupa Energetyczna SA(b) |
162,477 | 333,513 | ||||||
Powszechna Kasa Oszczednosci Bank Polski SA |
33,506 | 302,585 | ||||||
|
|
|||||||
5,003,978 | ||||||||
Qatar — 1.1% | ||||||||
Barwa Real Estate Co. |
375,999 | 269,855 | ||||||
Ezdan Holding Group QSC(b) |
497,636 | 141,643 | ||||||
Industries Qatar QSC |
613,963 | 2,080,175 | ||||||
Mesaieed Petrochemical Holding Co. |
1,490,822 | 751,790 | ||||||
Ooredoo QPSC |
671,915 | 1,990,586 | ||||||
Qatar Islamic Bank SAQ |
35,319 | 187,052 | ||||||
Qatar National Bank QPSC |
345,824 | 1,479,238 | ||||||
|
|
|||||||
6,900,339 | ||||||||
Russia — 0.0% | ||||||||
Inter RAO UES PJSC(b)(d) |
41,455,000 | 4,324 | ||||||
PhosAgro PJSC(b)(d) |
51,000 | 5 | ||||||
PhosAgro PJSC, New(b)(d) |
986 | 10 | ||||||
TCS Group Holding PLC, GDR(b)(d)(e) |
135,475 | 14 | ||||||
United Co. RUSAL International PJSC(b)(d) |
3,441,260 | 359 | ||||||
|
|
|||||||
4,712 | ||||||||
Saudi Arabia — 2.9% | ||||||||
Al Rajhi Bank |
115,256 | 2,215,713 | ||||||
Alinma Bank |
73,605 | 723,185 | ||||||
Arab National Bank |
75,970 | 522,108 | ||||||
Bank AlBilad |
57,173 | 652,909 | ||||||
Banque Saudi Fransi |
47,141 | 481,486 | ||||||
Dar Al Arkan Real Estate Development Co.(b) |
90,943 | 450,933 | ||||||
Dr Sulaiman Al Habib Medical Services Group Co. |
30,635 | 1,981,956 | ||||||
Elm Co. |
14,556 | 3,293,602 | ||||||
Etihad Etisalat Co. |
46,633 | 561,364 | ||||||
Nahdi Medical Co. |
38,140 | 1,542,080 | ||||||
Riyad Bank |
174,172 | 1,412,465 | ||||||
SABIC Agri-Nutrients Co. |
45,181 | 1,655,653 | ||||||
Sahara International Petrochemical Co. |
47,281 | 458,969 | ||||||
Saudi Arabian Mining Co.(b) |
65,502 | 705,613 | ||||||
Saudi Electricity Co. |
52,781 | 291,150 | ||||||
Saudi National Bank (The) |
23,925 | 227,844 | ||||||
Saudi Telecom Co. |
11,814 | 125,363 | ||||||
|
|
|||||||
17,302,393 | ||||||||
South Africa — 2.2% | ||||||||
African Rainbow Minerals Ltd. |
10,378 | 98,367 | ||||||
Anglo American Platinum Ltd. |
27,956 | 974,946 | ||||||
Bidvest Group Ltd. (The) |
39,885 | 601,813 | ||||||
Clicks Group Ltd. |
45,873 | 664,351 | ||||||
Exxaro Resources Ltd. |
54,537 | 484,667 | ||||||
FirstRand Ltd. |
22,781 | 88,514 | ||||||
Foschini Group Ltd. (The) |
19,832 | 109,458 | ||||||
Gold Fields Ltd. |
38,131 | 487,836 | ||||||
MTN Group Ltd. |
264,601 | 1,685,824 | ||||||
MultiChoice Group |
252,766 | 1,047,737 | ||||||
Naspers Ltd., Class N |
4,111 | 700,294 | ||||||
Nedbank Group Ltd. |
12,728 | 145,450 | ||||||
Northam Platinum Holdings Ltd.(b) |
45,414 | 299,393 | ||||||
Sasol Ltd. |
48,107 | 619,915 |
S C H E D U L E O F I N V E S T M E N T S |
19 |
Schedule of Investments (continued) August 31, 2023 |
iShares® Emerging Markets Equity Factor ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
South Africa (continued) | ||||||||
Sibanye Stillwater Ltd. |
187,050 | $ | 282,228 | |||||
Standard Bank Group Ltd. |
136,671 | 1,398,263 | ||||||
Thungela Resources Ltd. |
195,297 | 1,551,207 | ||||||
Woolworths Holdings Ltd. |
534,090 | 2,097,898 | ||||||
|
|
|||||||
13,338,161 | ||||||||
South Korea — 12.6% | ||||||||
Celltrion Healthcare Co. Ltd. |
4,423 | 216,421 | ||||||
Celltrion Inc. |
6,856 | 746,112 | ||||||
CJ CheilJedang Corp. |
263 | 59,431 | ||||||
CJ Corp. |
8,413 | 447,001 | ||||||
Coway Co. Ltd.(c) |
30,784 | 1,005,190 | ||||||
Daewoo Engineering & Construction Co. Ltd.(b) |
25,658 | 89,173 | ||||||
DB HiTek Co. Ltd.(c) |
24,217 | 978,160 | ||||||
DB Insurance Co. Ltd. |
20,411 | 1,260,531 | ||||||
DL Holdings Co. Ltd. |
20,053 | 578,976 | ||||||
Doosan Bobcat Inc. |
14,648 | 595,230 | ||||||
Ecopro BM Co. Ltd. |
811 | 198,606 | ||||||
Ecopro Co. Ltd. |
495 | 469,591 | ||||||
E-MART Inc. |
6,117 | 341,121 | ||||||
F&F Co. Ltd./New |
4,485 | 349,008 | ||||||
Hana Financial Group Inc. |
76,835 | 2,296,031 | ||||||
Hanmi Science Co. Ltd.(c) |
10,316 | 280,656 | ||||||
Hanwha Aerospace Co. Ltd. |
5,558 | 478,817 | ||||||
HMM Co. Ltd. |
3,999 | 50,342 | ||||||
Hyosung TNC Corp. |
630 | 157,495 | ||||||
Hyundai Engineering & Construction Co. Ltd. |
4,629 | 124,159 | ||||||
Hyundai Glovis Co. Ltd. |
3,144 | 409,951 | ||||||
Hyundai Marine & Fire Insurance Co. Ltd. |
13,054 | 298,484 | ||||||
Hyundai Mobis Co. Ltd. |
1,316 | 229,754 | ||||||
Hyundai Motor Co. |
14,045 | 2,006,809 | ||||||
KB Financial Group Inc. |
73,592 | 2,997,859 | ||||||
KCC Corp. |
3,543 | 584,856 | ||||||
KEPCO Engineering & Construction Co. Inc. |
1,767 | 88,396 | ||||||
Kia Corp. |
40,157 | 2,434,078 | ||||||
Korea Aerospace Industries Ltd. |
5,196 | 198,454 | ||||||
Korea Electric Power Corp.(b) |
18,065 | 243,132 | ||||||
Korea Investment Holdings Co. Ltd. |
23,104 | 907,559 | ||||||
Krafton Inc.(b) |
822 | 96,239 | ||||||
KT Corp. |
37,902 | 945,396 | ||||||
KT&G Corp. |
15,661 | 1,028,948 | ||||||
Kumho Petrochemical Co. Ltd. |
2,789 | 262,963 | ||||||
LG Chem Ltd. |
3,249 | 1,430,560 | ||||||
LG Display Co. Ltd.(b) |
30,453 | 308,091 | ||||||
LG Electronics Inc . |
14,190 | 1,056,041 | ||||||
LG Energy Solution(b) |
1,745 | 717,206 | ||||||
LG H&H Co. Ltd. |
849 | 297,928 | ||||||
LG Innotek Co. Ltd. |
3,888 | 792,666 | ||||||
LG Uplus Corp. |
75,408 | 595,776 | ||||||
Meritz Financial Group Inc. |
30,023 | 1,240,707 | ||||||
NAVER Corp. |
7,884 | 1,276,200 | ||||||
NCSoft Corp. |
3,614 | 686,621 | ||||||
Orion Corp./Republic of Korea |
7,539 | 694,322 | ||||||
Pearl Abyss Corp.(b) |
11,460 | 418,113 | ||||||
POSCO Holdings Inc. |
9,400 | 4,110,088 | ||||||
Posco International Corp. |
3,358 | 201,072 | ||||||
Samsung Biologics Co. Ltd.(a)(b) |
1,669 | 929,836 | ||||||
Samsung C&T Corp. |
863 | 68,279 | ||||||
Samsung Card Co. Ltd. |
25,513 | 577,827 | ||||||
Samsung Electro-Mechanics Co. Ltd. |
9,456 | 966,999 | ||||||
Samsung Electronics Co. Ltd. |
498,649 | 25,219,796 |
Security | Shares | Value | ||||||
South Korea (continued) | ||||||||
Samsung Engineering Co. Ltd.(b) |
22,934 | $ | 589,145 | |||||
Samsung Fire & Marine Insurance Co. Ltd. |
5,020 | 935,129 | ||||||
Samsung SDI Co. Ltd. |
2,394 | 1,110,340 | ||||||
Samsung SDS Co. Ltd. |
5,951 | 638,657 | ||||||
Samsung Securities Co. Ltd. |
22,076 | 623,071 | ||||||
SD Biosensor Inc. |
66,999 | 633,673 | ||||||
Seegene Inc. |
67,591 | 1,133,445 | ||||||
Shinhan Financial Group Co. Ltd. |
86,218 | 2,315,956 | ||||||
SK Hynix Inc. |
13,703 | 1,259,993 | ||||||
SK Innovation Co. Ltd.(b) |
1,103 | 147,947 | ||||||
SK Telecom Co. Ltd. |
4,691 | 170,397 | ||||||
Wemade Co. Ltd.(c) |
5,883 | 160,318 | ||||||
Woori Financial Group Inc. |
187,206 | 1,684,205 | ||||||
|
|
|||||||
76,445,333 | ||||||||
Taiwan — 15.2% | ||||||||
Accton Technology Corp. |
113,000 | 1,685,320 | ||||||
Acer Inc. |
767,000 | 879,426 | ||||||
Advantech Co. Ltd. |
62,291 | 670,334 | ||||||
ASE Technology Holding Co. Ltd. |
226,000 | 836,487 | ||||||
Asustek Computer Inc. |
16,000 | 201,584 | ||||||
AUO Corp. |
1,718,800 | 959,799 | ||||||
Cathay Financial Holding Co. Ltd. |
1,560,000 | 2,230,545 | ||||||
Chicony Electronics Co. Ltd. |
47,000 | 152,398 | ||||||
China Airlines Ltd. |
230,000 | 163,016 | ||||||
China Development Financial Holding Corp.(b) |
974,000 | 361,867 | ||||||
Chunghwa Telecom Co. Ltd. |
122,000 | 444,794 | ||||||
CTBC Financial Holding Co. Ltd. |
2,154,000 | 1,609,950 | ||||||
Delta Electronics Inc. |
156,000 | 1,685,875 | ||||||
Far EasTone Telecommunications Co. Ltd. |
276,000 | 612,176 | ||||||
Feng TAY Enterprise Co. Ltd. |
138,880 | 730,923 | ||||||
Formosa Sumco Technology Corp. |
99,000 | 446,273 | ||||||
Fubon Financial Holding Co. Ltd. |
1,619,000 | 3,228,548 | ||||||
Giant Manufacturing Co. Ltd. |
16,000 | 98,215 | ||||||
Gigabyte Technology Co. Ltd. |
223,000 | 2,375,503 | ||||||
Global Unichip Corp. |
41,000 | 1,866,029 | ||||||
Hon Hai Precision Industry Co. Ltd. |
891,000 | 2,974,819 | ||||||
Kinsus Interconnect Technology Corp. |
22,000 | 72,985 | ||||||
Largan Precision Co. Ltd. |
3,000 | 192,688 | ||||||
Lite-On Technology Corp. |
785,718 | 3,358,994 | ||||||
MediaTek Inc. |
159,000 | 3,506,499 | ||||||
Mega Financial Holding Co. Ltd. |
186,480 | 209,869 | ||||||
Micro-Star International Co. Ltd. |
206,000 | 1,030,115 | ||||||
momo.com Inc. |
28,380 | 462,898 | ||||||
Nan Ya Plastics Corp. |
235,000 | 487,716 | ||||||
Nan Ya Printed Circuit Board Corp. |
49,000 | 370,077 | ||||||
Nien Made Enterprise Co. Ltd. |
29,000 | 271,792 | ||||||
Novatek Microelectronics Corp. |
182,000 | 2,275,163 | ||||||
Pou Chen Corp. |
466,000 | 418,127 | ||||||
President Chain Store Corp. |
119,000 | 997,881 | ||||||
Realtek Semiconductor Corp. |
228,000 | 2,979,584 | ||||||
Ruentex Industries Ltd. |
569,000 | 1,111,682 | ||||||
Shanghai Commercial & Savings Bank Ltd. (The) |
836,000 | 1,118,140 | ||||||
SinoPac Financial Holdings Co. Ltd. |
2,388,840 | 1,282,202 | ||||||
Synnex Technology International Corp. |
36,000 | 69,000 | ||||||
Taiwan Cooperative Financial Holding Co. Ltd. |
1,565,550 | 1,290,149 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. |
2,095,000 | 35,998,282 | ||||||
Unimicron Technology Corp. |
101,000 | 584,414 | ||||||
Uni-President Enterprises Corp. |
959,000 | 2,126,310 | ||||||
United Microelectronics Corp. |
1,717,000 | 2,451,444 | ||||||
Voltronic Power Technology Corp. |
15,000 | 680,813 |
20 |
2 0 2 3 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (continued) August 31, 2023 |
iShares® Emerging Markets Equity Factor ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Taiwan (continued) | ||||||||
Wan Hai Lines Ltd. |
171,000 | $ | 242,727 | |||||
Winbond Electronics Corp.(b) |
99,000 | 81,532 | ||||||
Wiwynn Corp. |
37,000 | 1,803,175 | ||||||
Yang Ming Marine Transport Corp. |
146,000 | 193,383 | ||||||
Yuanta Financial Holding Co. Ltd. |
2,922,185 | 2,235,977 | ||||||
Yulon Nissan Motor Co. Ltd. |
9,000 | 52,605 | ||||||
|
|
|||||||
92,170,104 | ||||||||
Thailand — 1.4% | ||||||||
Advanced Info Service PCL, NVDR |
224,800 | 1,385,892 | ||||||
Carabao Group PCL, NVDR(c) |
63,200 | 155,191 | ||||||
Charoen Pokphand Foods PCL, NVDR(c) |
1,145,500 | 677,070 | ||||||
Com7 PCL, NVDR(c) |
542,300 | 498,733 | ||||||
Delta Electronics Thailand PCL, NVDR |
523,800 | 1,621,078 | ||||||
Jasmine Technology Solution PCL(b)(c) |
344,800 | 356,567 | ||||||
Kasikornbank PCL, NVDR |
57,100 | 212,705 | ||||||
Krung Thai Bank PCL, NVDR |
1,647,700 | 907,678 | ||||||
Krungthai Card PCL, NVDR(c) |
360,900 | 499,572 | ||||||
MK Restaurants Group PCL, NVDR |
381,100 | 516,823 | ||||||
PTT Exploration & Production PCL, NVDR |
102,200 | 462,683 | ||||||
SCB X PCL, NVS |
145,600 | 490,361 | ||||||
Thai Life Insurance PCL(c) |
2,046,200 | 689,398 | ||||||
TOA Paint Thailand PCL, NVDR |
120,700 | 91,312 | ||||||
|
|
|||||||
8,565,063 | ||||||||
Turkey — 1.3% | ||||||||
Anadolu Efes Biracilik Ve Malt Sanayii AS |
248,824 | 1,003,610 | ||||||
BIM Birlesik Magazalar AS |
139,767 | 1,319,313 | ||||||
Ford Otomotiv Sanayi AS |
31,718 | 1,024,059 | ||||||
KOC Holding AS |
222,854 | 1,182,497 | ||||||
Tofas Turk Otomobil Fabrikasi AS |
143,786 | 1,451,071 | ||||||
Turk Telekomunikasyon AS(b) |
309,145 | 297,110 | ||||||
Turkcell Iletisim Hizmetleri AS |
328,882 | 685,858 | ||||||
Turkiye Garanti Bankasi AS(c) |
287,082 | 538,976 | ||||||
Yapi ve Kredi Bankasi AS |
113,677 | 67,516 | ||||||
|
|
|||||||
7,570,010 | ||||||||
United Arab Emirates — 2.2% | ||||||||
Abu Dhabi Islamic Bank PJSC |
1,011,580 | 2,869,770 | ||||||
Abu Dhabi National Energy Co. PJSC |
96,170 | 90,070 | ||||||
Abu Dhabi National Oil Co. for Distribution PJSC |
1,442,017 | 1,495,803 | ||||||
Dubai Electricity & Water Authority PJSC |
2,583,014 | 1,793,271 | ||||||
Emaar Properties PJSC |
389,872 | 749,240 | ||||||
Emirates NBD Bank PJSC |
79,295 | 352,844 | ||||||
Emirates Telecommunications Group Co. PJSC |
210,105 | 1,134,899 | ||||||
Fertiglobe PLC |
1,951,024 | 1,794,885 | ||||||
First Abu Dhabi Bank PJSC |
178,363 | 664,144 | ||||||
International Holding Co. PJSC(b) |
19,379 | 2,157,912 | ||||||
|
|
|||||||
13,102,838 | ||||||||
|
|
|||||||
Total
Common Stocks — 98.4% |
596,866,606 | |||||||
|
|
Preferred Stocks | ||||||||
Brazil — 1.2% | ||||||||
Banco Bradesco SA, Preference Shares, NVS |
203,206 | 613,469 | ||||||
Cia. Energetica de Minas Gerais, Preference Shares, NVS |
24,522 | 61,057 |
Security | Shares | Value | ||||||
Brazil (continued) | ||||||||
Gerdau SA, Preference Shares, NVS |
296,111 | $ | 1,545,717 | |||||
Itau Unibanco Holding SA, Preference Shares, NVS |
494,105 | 2,736,907 | ||||||
Petroleo Brasileiro SA, Preference Shares, NVS |
365,599 | 2,358,060 | ||||||
|
|
|||||||
7,315,210 | ||||||||
Chile — 0.1% | ||||||||
Sociedad Quimica y Minera de Chile SA, Class B, Preference Shares |
12,470 | 772,277 | ||||||
|
|
|||||||
South Korea — 0.2% | ||||||||
Kumho Petrochemical Co. Ltd., 0.00% |
4,892 | 231,979 | ||||||
Samsung Electronics Co. Ltd., Preference Shares, NVS |
15,384 | 627,974 | ||||||
|
|
|||||||
859,953 | ||||||||
|
|
|||||||
Total
Preferred Stocks — 1.5% |
8,947,440 | |||||||
|
|
|||||||
Rights | ||||||||
South Korea — 0.0% | ||||||||
SK Innovation Co. Ltd., (Expires 09/19/23, Strike Price KRW 139,600.00)(b) |
81 | 2,319 | ||||||
|
|
|||||||
Total
Rights — 0.0% |
2,319 | |||||||
|
|
|||||||
Total
Long-Term Investments — 99.9% |
605,816,365 | |||||||
|
|
|||||||
Short-Term Securities |
||||||||
Money Market Funds — 2.5% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 5.52%(f)(g)(h) |
15,385,480 | 15,390,096 | ||||||
|
|
|||||||
Total
Short-Term Securities — 2.5% |
15,390,096 | |||||||
|
|
|||||||
Total
Investments — 102.4% |
621,206,461 | |||||||
Liabilities in Excess of Other Assets — (2.4)% |
(14,772,400 | ) | ||||||
|
|
|||||||
Net Assets — 100.0% |
$ | 606,434,061 | ||||||
|
|
(a) |
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. |
(b) |
Non-income producing security. |
(c) |
All or a portion of this security is on loan. |
(d) |
Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. |
(e) |
This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933. |
(f) |
Affiliate of the Fund. |
(g) |
Annualized 7-day yield as of period end. |
(h) |
All or a portion of this security was purchased with the cash collateral from loaned securities. |
S C H E D U L E O F I N V E S T M E N T S |
21 |
Schedule of Investments (continued) August 31, 2023 |
iShares® Emerging Markets Equity Factor ETF |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the year ended August 31, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Issuer | Value at 08/31/22 |
Purchases at Cost |
Proceeds from Sale |
Net Realized Gain (Loss) |
Change
in Unrealized Appreciation (Depreciation) |
Value at 08/31/23 |
Shares Held at 08/31/23 |
Income |
Capital Gain |
|||||||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares |
$ | 9,030,754 | $ | 6,356,623 | (a) | $ | — | $ | 4,947 | $ | (2,228 | ) | $ | 15,390,096 | 15,385,480 | $ | 196,625 | (b) | $ | — | ||||||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares(c) |
700,000 | — | (700,000 | )(a) | — | — | — | — | 51,607 | 2 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||
$ | 4,947 | $ | (2,228 | ) | $ | 15,390,096 | $ | 248,232 | $ | 2 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(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. |
(c) |
As of period end, the entity is no longer held. |
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 |
6 | 09/15/23 | $ | 294 | $ | 1,889 | ||||||||||
|
|
Derivative Financial Instruments Categorized by Risk Exposure
As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Commodity Contracts |
Credit Contracts |
Equity Contracts |
Foreign Currency Exchange Contracts |
Interest Rate Contracts |
Other Contracts |
Total | ||||||||||||||||||||||
Assets — Derivative Financial Instruments |
||||||||||||||||||||||||||||
Futures contracts |
||||||||||||||||||||||||||||
Unrealized appreciation on futures contracts(a) |
$ | — | $ | — | $ | 1,889 | $ | — | $ | — | $ | — | $ | 1,889 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:
Commodity Contracts |
Credit Contracts |
Equity Contracts |
Foreign Currency Exchange Contracts |
Interest Rate Contracts |
Other Contracts |
Total | ||||||||||||||||||||||
Net Realized Gain (Loss) from |
||||||||||||||||||||||||||||
Futures contracts |
$ | — | $ | — | $ | (217,207 | ) | $ | — | $ | — | $ | — | $ | (217,207 | ) | ||||||||||||
Forward foreign currency exchange contracts |
— | — | — | 1,363 | — | — | 1,363 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
$ | — | $ | — | $ | (217,207 | ) | $ | 1,363 | $ | — | $ | — | $ | (215,844 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on |
||||||||||||||||||||||||||||
Futures contracts |
$ | — | $ | — | $ | 31,631 | $ | — | $ | — | $ | — | $ | 31,631 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
22 |
2 0 2 3 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (continued) August 31, 2023 |
iShares® Emerging Markets Equity Factor ETF |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
|
||||
Futures contracts: |
||||
Average notional value of contracts — long |
$ | 2,992,894 | ||
|
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.
|
||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Assets |
||||||||||||||||||||||||||||
Investments |
||||||||||||||||||||||||||||
Long-Term Investments |
||||||||||||||||||||||||||||
Common Stocks |
$ | 88,568,817 | $ | 508,293,077 | $ | 4,712 | $ | 596,866,606 | ||||||||||||||||||||
Preferred Stocks |
8,087,487 | 859,953 | — | 8,947,440 | ||||||||||||||||||||||||
Rights |
2,319 | — | — | 2,319 | ||||||||||||||||||||||||
Short-Term Securities |
||||||||||||||||||||||||||||
Money Market Funds |
15,390,096 | — | — | 15,390,096 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||
$ | 112,048,719 | $ | 509,153,030 | $ | 4,712 | $ | 621,206,461 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Derivative Financial Instruments(a) |
||||||||||||||||||||||||||||
Assets |
||||||||||||||||||||||||||||
Equity Contracts |
$ | 1,889 | $ | — | $ | — | $ | 1,889 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
(a) |
Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument. |
See notes to financial statements.
S C H E D U L E O F I N V E S T M E N T S |
23 |
Schedule of Investments August 31, 2023 |
iShares® ESG Aware MSCI EM ETF (Percentages shown are based on Net Assets) |
Security | Shares |
Value | ||||||
Common Stocks |
||||||||
Brazil — 2.9% | ||||||||
B3 SA - Brasil, Bolsa, Balcao |
4,861,293 | $ | 12,693,030 | |||||
Banco do Brasil SA |
785,456 | 7,470,639 | ||||||
Banco Santander Brasil SA |
1,176,061 | 6,438,346 | ||||||
CCR SA |
3,720,967 | 9,362,436 | ||||||
Cosan SA |
4,151,226 | 14,686,742 | ||||||
Localiza Rent a Car SA |
1,160,292 | 14,819,816 | ||||||
Lojas Renner SA |
2,699,759 | 8,739,237 | ||||||
Natura & Co. Holding SA(a) |
1,742,553 | 5,341,617 | ||||||
Petroleo Brasileiro SA |
1,217,721 | 8,493,469 | ||||||
Rumo SA |
1,586,595 | 7,160,751 | ||||||
TOTVS SA |
1,749,855 | 9,802,199 | ||||||
Ultrapar Participacoes SA |
3,287,292 | 12,055,052 | ||||||
Vibra Energia SA |
2,301,086 | 8,577,871 | ||||||
|
|
|||||||
125,641,205 | ||||||||
Chile — 0.4% | ||||||||
Empresas COPEC SA |
1,030,683 | 7,444,530 | ||||||
Enel Americas SA(a) |
87,730,754 | 10,426,044 | ||||||
|
|
|||||||
17,870,574 | ||||||||
China — 29.1% | ||||||||
37 Interactive Entertainment Network Technology Group Co. Ltd., Class A |
1,234,500 | 4,184,365 | ||||||
3SBio Inc.(b) |
10,569,500 | 8,838,962 | ||||||
AAC Technologies Holdings Inc.(c) |
2,528,500 | 4,897,833 | ||||||
Agricultural Bank of China Ltd., Class A |
12,902,400 | 6,132,482 | ||||||
Agricultural Bank of China Ltd., Class H |
30,299,000 | 10,385,120 | ||||||
Alibaba Group Holding Ltd.(a). |
10,692,568 | 124,099,392 | ||||||
Alibaba
Health Information Technology |
13,814,000 | 8,155,690 | ||||||
Baidu Inc.(a) |
1,648,412 | 29,439,380 | ||||||
Bank of China Ltd., Class H |
33,379,000 | 11,312,712 | ||||||
Bank of Communications Co. Ltd., Class A |
5,651,900 | 4,312,240 | ||||||
Beijing Enterprises Water Group Ltd. |
19,388,000 | 4,466,784 | ||||||
Bosideng International Holdings Ltd. |
10,268,000 | 4,029,300 | ||||||
BYD Co. Ltd., Class A |
268,755 | 9,217,774 | ||||||
BYD Co. Ltd., Class H |
872,500 | 27,405,800 | ||||||
China Construction Bank Corp., Class A |
7,442,900 | 6,139,086 | ||||||
China Construction Bank Corp., Class H |
70,150,000 | 37,533,817 | ||||||
China International Capital Corp. Ltd., Class A |
1,104,113 | 5,919,310 | ||||||
China International Capital Corp. Ltd., Class H(b) |
3,259,600 | 6,260,491 | ||||||
China Medical System Holdings Ltd. |
7,093,000 | 10,215,769 | ||||||
China Mengniu Dairy Co. Ltd. |
4,120,000 | 13,853,362 | ||||||
China Merchants Bank Co. Ltd., Class A |
1,345,240 | 5,843,372 | ||||||
China Merchants Bank Co. Ltd., Class H |
3,855,500 | 15,267,079 | ||||||
China Railway Signal & Communication Corp. Ltd., Class A |
5,620,108 | 4,335,211 | ||||||
China Resources Beer Holdings Co. Ltd. |
1,048,000 | 6,153,169 | ||||||
China Resources Gas Group Ltd. |
2,471,600 | 6,938,694 | ||||||
China Resources Land Ltd. |
3,724,000 | 15,740,225 | ||||||
China Resources Pharmaceutical Group Ltd.(b) |
8,200,500 | 5,474,197 | ||||||
China Tourism Group Duty Free Corp. Ltd., Class A |
266,000 | 3,987,914 | ||||||
Chow Tai Fook Jewellery Group Ltd.(c) |
4,340,800 | 6,582,228 | ||||||
CITIC Securities Co. Ltd., Class A |
1,420,500 | 4,340,852 | ||||||
CMOC Group Ltd., Class A |
13,932,100 | 10,956,977 | ||||||
CMOC Group Ltd., Class H |
12,465,000 | 7,436,182 | ||||||
Contemporary Amperex Technology Co. Ltd., Class A |
461,285 | 14,983,943 | ||||||
Country
Garden Services Holdings Co. |
5,837,000 | 6,781,678 | ||||||
CSPC Pharmaceutical Group Ltd. |
8,281,520 | 6,224,455 | ||||||
ENN Energy Holdings Ltd. |
1,383,900 | 10,857,544 |
Security | Shares |
Value | ||||||
China (continued) | ||||||||
Far East Horizon Ltd. |
6,539,000 | $ | 4,467,248 | |||||
Fosun International Ltd. |
18,930,500 | 11,833,132 | ||||||
Ganfeng Lithium Group Co. Ltd., Class A |
628,750 | 4,098,149 | ||||||
Geely Automobile Holdings Ltd. |
8,038,000 | 9,978,180 | ||||||
Haier Smart Home Co. Ltd., Class A |
1,354,600 | 4,374,893 | ||||||
Haitong Securities Co. Ltd., Class A |
4,647,600 | 6,282,384 | ||||||
Hansoh Pharmaceutical Group Co. Ltd.(b) |
3,472,000 | 4,511,183 | ||||||
Huatai Securities Co. Ltd., Class A |
5,029,502 | 10,993,003 | ||||||
Huatai Securities Co. Ltd., Class H(b) |
3,294,200 | 4,334,484 | ||||||
Industrial & Commercial Bank of China Ltd., Class A |
12,463,800 | 7,911,727 | ||||||
Industrial & Commercial Bank of China Ltd., Class H |
44,496,000 | 20,400,403 | ||||||
Industrial Bank Co. Ltd., Class A |
1,965,568 | 4,272,374 | ||||||
JD Health International Inc.(a)(b) |
1,059,950 | 5,714,891 | ||||||
JD.com Inc., Class A |
1,619,228 | 26,892,304 | ||||||
Jiumaojiu International Holdings Ltd.(b) |
2,693,000 | 4,319,274 | ||||||
KE Holdings Inc., ADR(a) |
291,453 | 5,012,992 | ||||||
Kingdee International Software Group Co. Ltd.(a) |
4,788,000 | 7,398,003 | ||||||
Kuaishou Technology(a)(b) |
1,857,100 | 15,202,073 | ||||||
Kunlun Energy Co. Ltd. |
6,038,000 | 4,420,326 | ||||||
Lenovo Group Ltd. |
22,314,000 | 25,222,091 | ||||||
Li Auto Inc.(a) |
1,328,928 | 27,668,062 | ||||||
Meituan, Class B(a)(b) |
3,177,830 | 52,590,386 | ||||||
Microport Scientific Corp.(a) |
2,606,300 | 4,463,039 | ||||||
NetEase Inc. |
1,784,270 | 36,965,537 | ||||||
NIO Inc., ADR(a)(c) |
1,234,732 | 12,680,698 | ||||||
Nongfu Spring Co. Ltd., Class H(b) |
2,059,400 | 11,566,425 | ||||||
Orient Securities Co. Ltd., Class A |
3,318,452 | 4,550,102 | ||||||
Pinduoduo Inc., ADR(a) |
277,459 | 27,460,117 | ||||||
Ping
An Healthcare and Technology Co. |
1,968,700 | 4,914,069 | ||||||
Ping An Insurance Group Co. of China Ltd., Class H |
5,676,000 | 33,983,035 | ||||||
Pop Mart International Group Ltd.(b) |
1,557,200 | 5,064,929 | ||||||
Postal Savings Bank of China Co. Ltd., Class A |
9,962,600 | 6,655,478 | ||||||
Postal Savings Bank of China Co. Ltd., Class H(b) |
9,363,000 | 4,618,115 | ||||||
Shandong Weigao Group Medical Polymer Co. Ltd., Class H |
4,062,800 | 4,045,265 | ||||||
Shanghai Electric Group Co. Ltd., Class A(a) |
10,095,900 | 6,195,345 | ||||||
Shanghai Fosun Pharmaceutical Group Co. Ltd., Class A |
1,366,984 | 5,242,503 | ||||||
Shanghai Pharmaceuticals Holding Co. Ltd., Class A |
2,209,200 | 5,424,355 | ||||||
Shanghai Pharmaceuticals Holding Co. Ltd., Class H |
3,271,700 | 5,379,128 | ||||||
Shenzhen Mindray Bio-Medical Electronics Co. Ltd., Class A |
340,000 | 12,613,962 | ||||||
Sinopharm Group Co. Ltd., Class H |
1,618,000 | 4,695,311 | ||||||
Sungrow Power Supply Co. Ltd., Class A |
519,367 | 7,119,614 | ||||||
Sunny Optical Technology Group Co. Ltd. |
873,300 | 7,130,655 | ||||||
TCL Technology Group Corp., Class A(a) |
14,876,540 | 8,374,280 | ||||||
Tencent Holdings Ltd. |
4,074,500 | 168,848,639 | ||||||
Tongcheng Travel Holdings Ltd.(a) |
5,243,600 | 11,751,202 | ||||||
Trip.com Group Ltd.(a) |
214,371 | 8,443,204 | ||||||
Vipshop Holdings Ltd., ADR(a)(c) |
556,176 | 8,782,019 | ||||||
Want Want China Holdings Ltd. |
6,580,000 | 4,351,948 | ||||||
WuXi AppTec Co. Ltd., Class A |
927,100 | 10,407,350 | ||||||
WuXi AppTec Co. Ltd., Class H(b) |
523,880 | 5,740,806 | ||||||
Wuxi Biologics Cayman Inc.(a)(b) |
3,711,500 | 20,923,951 | ||||||
XPeng Inc.(a) |
1,489,896 | 13,390,383 | ||||||
Yadea Group Holdings Ltd.(b) |
7,906,000 | 15,200,461 |
24 |
2 0 2 3 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (continued) August 31, 2023 |
iShares® ESG Aware MSCI EM ETF (Percentages shown are based on Net Assets) |
Security | Shares |
Value | ||||||
China (continued) | ||||||||
Yonyou Network Technology Co. Ltd., Class A |
1,956,400 | $ | 4,880,890 | |||||
Yum China Holdings Inc. |
453,935 | 24,371,770 | ||||||
Yunnan Baiyao Group Co. Ltd., Class A |
972,820 | 7,306,534 | ||||||
|
|
|||||||
1,260,142,070 | ||||||||
Colombia — 0.1% | ||||||||
Bancolombia SA |
623,450 | 4,435,251 | ||||||
|
|
|||||||
Egypt — 0.1% | ||||||||
Commercial International Bank Egypt SAE |
2,537,904 | 3,526,465 | ||||||
|
|
|||||||
Greece — 0.7% | ||||||||
Motor Oil Hellas Corinth Refineries SA |
298,400 | 7,603,900 | ||||||
Mytilineos SA |
184,495 | 7,482,219 | ||||||
OPAP SA |
847,774 | 14,315,157 | ||||||
|
|
|||||||
29,401,276 | ||||||||
Hungary — 0.3% | ||||||||
MOL Hungarian Oil & Gas PLC |
1,711,993 | 12,946,140 | ||||||
|
|
|||||||
India — 14.5% | ||||||||
ABB India Ltd. |
91,249 | 4,825,958 | ||||||
Adani Green Energy Ltd.(a) |
344,580 | 3,865,306 | ||||||
Ashok Leyland Ltd. |
1,881,128 | 4,177,570 | ||||||
Asian Paints Ltd. |
740,402 | 29,109,378 | ||||||
Astral Ltd. |
215,335 | 5,082,672 | ||||||
AU Small Finance Bank Ltd.(b) |
1,017,126 | 8,878,867 | ||||||
Axis Bank Ltd. |
1,645,751 | 19,335,258 | ||||||
Bajaj Finance Ltd. |
200,884 | 17,363,703 | ||||||
Bandhan Bank Ltd.(b) |
1,487,493 | 4,120,845 | ||||||
Bharti Airtel Ltd. |
2,331,869 | 24,109,296 | ||||||
Britannia Industries Ltd. |
164,639 | 8,883,931 | ||||||
Cholamandalam Investment and Finance Co. Ltd. |
443,424 | 6,004,597 | ||||||
Dabur India Ltd. |
1,653,384 | 11,036,639 | ||||||
DLF Ltd. |
969,651 | 5,899,238 | ||||||
Eicher Motors Ltd. |
112,746 | 4,541,674 | ||||||
Havells India Ltd. |
312,477 | 5,221,819 | ||||||
HCL Technologies Ltd. |
1,620,071 | 22,918,572 | ||||||
HDFC Bank Ltd. |
2,155,527 | 40,916,250 | ||||||
Hero MotoCorp Ltd. |
299,574 | 10,545,592 | ||||||
Hindalco Industries Ltd. |
955,298 | 5,296,142 | ||||||
Hindustan Unilever Ltd. |
855,130 | 25,867,547 | ||||||
ICICI Bank Ltd. |
3,609,334 | 41,665,919 | ||||||
ICICI Prudential Life Insurance Co. Ltd.(b) |
1,368,976 | 9,318,678 | ||||||
IDFC First Bank Ltd.(a) |
7,698,363 | 8,680,695 | ||||||
Indian Hotels Co. Ltd. (The), Class A |
1,362,525 | 6,921,154 | ||||||
Info Edge India Ltd. |
91,705 | 4,792,053 | ||||||
Infosys Ltd. |
2,868,827 | 49,714,356 | ||||||
Kotak Mahindra Bank Ltd. |
1,325,488 | 28,126,681 | ||||||
Mahindra & Mahindra Ltd. |
614,971 | 11,692,843 | ||||||
Mahindra & Mahindra Ltd., GDR |
707,950 | 13,592,640 | ||||||
Marico Ltd. |
3,719,471 | 25,593,932 | ||||||
PI Industries Ltd. |
197,556 | 8,655,070 | ||||||
Power Grid Corp. of India Ltd. |
2,831,508 | 8,357,371 | ||||||
Reliance Industries Ltd. |
1,811,974 | 52,639,720 | ||||||
Supreme Industries Ltd. |
112,940 | 6,081,356 | ||||||
Tata Consultancy Services Ltd. |
475,783 | 19,271,059 | ||||||
Tata Consumer Products Ltd. |
1,170,400 | 11,787,178 | ||||||
Tata Elxsi Ltd. |
50,763 | 4,439,348 | ||||||
Tech Mahindra Ltd. |
615,441 | 8,923,618 | ||||||
Titan Co. Ltd. |
243,774 | 9,134,504 | ||||||
TVS Motor Co. Ltd. |
490,733 | 8,409,250 |
Security | Shares |
Value | ||||||
India (continued) | ||||||||
United Spirits Ltd.(a) |
540,714 | $ | 6,575,574 | |||||
UPL Ltd. |
600,117 | 4,282,384 | ||||||
Zomato Ltd.(a) |
9,298,221 | 10,941,247 | ||||||
|
|
|||||||
627,597,484 | ||||||||
Indonesia — 1.7% | ||||||||
Bank Central Asia Tbk PT |
38,942,100 | 23,443,351 | ||||||
Bank Rakyat Indonesia Persero Tbk PT |
47,221,500 | 17,202,608 | ||||||
GoTo Gojek Tokopedia Tbk PT(a) |
736,538,800 | 4,642,661 | ||||||
Kalbe Farma Tbk PT |
101,754,800 | 12,105,899 | ||||||
Telkom Indonesia Persero Tbk PT |
47,606,100 | 11,636,772 | ||||||
Unilever Indonesia Tbk PT |
17,470,500 | 4,209,826 | ||||||
|
|
|||||||
73,241,117 | ||||||||
Kuwait — 0.3% | ||||||||
Kuwait Finance House KSCP |
5,659,816 | 13,674,152 | ||||||
|
|
|||||||
Malaysia — 2.2% | ||||||||
AMMB Holdings Bhd |
8,869,400 | 7,135,252 | ||||||
Axiata Group Bhd |
15,552,500 | 7,914,402 | ||||||
CIMB Group Holdings Bhd |
9,826,600 | 11,912,050 | ||||||
DiGi.Com Bhd(c) |
10,479,000 | 9,895,227 | ||||||
Malayan Banking Bhd |
9,928,800 | 19,490,027 | ||||||
Maxis Bhd(c) |
13,833,400 | 11,959,222 | ||||||
Nestle Malaysia Bhd |
427,200 | 12,015,000 | ||||||
Public Bank Bhd |
5,295,800 | 4,827,277 | ||||||
Sime Darby Bhd(c) |
21,711,900 | 10,748,598 | ||||||
|
|
|||||||
95,897,055 | ||||||||
Mexico — 2.3% | ||||||||
Arca Continental SAB de CV |
1,801,296 | 17,537,030 | ||||||
Cemex SAB de CV, NVS(a) |
14,624,524 | 11,536,310 | ||||||
Fomento Economico Mexicano SAB de CV |
2,181,561 | 24,414,854 | ||||||
Grupo Bimbo SAB de CV, Series A |
1,355,460 | 6,668,191 | ||||||
Grupo Financiero Banorte SAB de CV, Class O |
2,458,017 | 20,819,730 | ||||||
Wal-Mart de Mexico SAB de CV |
4,490,286 | 17,689,365 | ||||||
|
|
|||||||
98,665,480 | ||||||||
Netherlands — 0.6% | ||||||||
NEPI Rockcastle NV |
4,006,092 | 24,042,916 | ||||||
|
|
|||||||
Peru — 0.2% | ||||||||
Credicorp Ltd. |
74,042 | 10,471,760 | ||||||
|
|
|||||||
Poland — 0.8% | ||||||||
Allegro.eu SA (a)(b) |
925,330 | 7,401,293 | ||||||
Budimex SA |
38,948 | 4,248,152 | ||||||
KGHM Polska Miedz SA |
525,114 | 14,480,217 | ||||||
Polski Koncern Naftowy ORLEN SA |
426,023 | 6,504,036 | ||||||
|
|
|||||||
32,633,698 | ||||||||
Qatar — 0.6% | ||||||||
Qatar Fuel QSC |
474,481 | 2,082,484 | ||||||
Qatar National Bank QPSC |
5,415,873 | 23,166,016 | ||||||
|
|
|||||||
25,248,500 | ||||||||
Russia — 0.0% | ||||||||
Gazprom PJSC(a)(d) |
7,224,690 | 754 | ||||||
LUKOIL PJSC(a)(d) |
725,046 | 76 | ||||||
Novatek PJSC(a)(d) |
1,686,230 | 176 | ||||||
Novolipetsk Steel PJSC(a)(d) |
5,130,970 | 535 | ||||||
PhosAgro PJSC(a)(d) |
249,741 | 26 | ||||||
PhosAgro PJSC, New(a)(d) |
4,826 | 48 | ||||||
Polymetal International PLC(a)(d) |
1,747,485 | 182 | ||||||
Polyus PJSC(a)(d) |
43,646 | 5 |
S C H E D U L E O F I N V E S T M E N T S |
25 |
Schedule of Investments (continued) August 31, 2023 |
iShares® ESG Aware MSCI EM ETF (Percentages shown are based on Net Assets) |
Security | Shares |
Value | ||||||
Russia (continued) | ||||||||
Rosneft Oil Co. PJSC(a)(d) |
759,129 | $ | 79 | |||||
Sberbank of Russia PJSC(a)(d) |
10,004,860 | 1,043 | ||||||
TCS Group Holding PLC, GDR(a)(d)(e) |
124,025 | 13 | ||||||
Yandex NV(a)(d) |
87,150 | 9 | ||||||
|
|
|||||||
2,946 | ||||||||
Saudi Arabia — 3.5% | ||||||||
Al Rajhi Bank |
1,681,859 | 32,332,526 | ||||||
Alinma Bank |
1,167,230 | 11,468,280 | ||||||
Bank AlBilad |
560,716 | 6,403,307 | ||||||
Dr Sulaiman Al Habib Medical Services Group Co. |
223,736 | 14,474,779 | ||||||
Etihad Etisalat Co. |
1,171,052 | 14,097,023 | ||||||
Mobile Telecommunications Co. |
1,849,082 | 6,655,541 | ||||||
Riyad Bank |
982,850 | 7,970,518 | ||||||
SABIC Agri-Nutrients Co. |
127,410 | 4,668,926 | ||||||
Sahara International Petrochemical Co. |
1,251,321 | 12,146,905 | ||||||
Saudi Arabian Mining Co.(a) |
1,054,020 | 11,354,310 | ||||||
Saudi Basic Industries Corp. |
586,952 | 13,823,393 | ||||||
Saudi Investment Bank (The) |
908,753 | 4,018,305 | ||||||
Savola Group (The) |
997,705 | 10,067,196 | ||||||
|
|
|||||||
149,481,009 | ||||||||
South Africa — 3.4% | ||||||||
Absa Group Ltd. |
564,256 | 5,440,288 | ||||||
Anglo American Platinum Ltd. |
122,929 | 4,287,061 | ||||||
Bidvest Group Ltd. (The) |
878,342 | 13,253,034 | ||||||
Gold Fields Ltd. |
1,272,207 | 16,276,202 | ||||||
Impala Platinum Holdings Ltd. |
897,484 | 4,620,362 | ||||||
Kumba Iron Ore Ltd. |
426,695 | 9,385,257 | ||||||
MTN Group Ltd. |
1,140,665 | 7,267,398 | ||||||
Naspers Ltd., Class N |
160,676 | 27,370,563 | ||||||
Nedbank Group Ltd. |
784,241 | 8,961,983 | ||||||
Standard Bank Group Ltd. |
635,310 | 6,499,775 | ||||||
Vodacom Group Ltd. |
5,011,911 | 28,625,084 | ||||||
Woolworths Holdings Ltd. |
4,162,858 | 16,351,645 | ||||||
|
|
|||||||
148,338,652 | ||||||||
South Korea — 12.2% | ||||||||
CJ CheilJedang Corp. |
46,379 | 10,480,484 | ||||||
DB Insurance Co. Ltd. |
76,759 | 4,740,437 | ||||||
Ecopro Co. Ltd. |
6,669 | 6,342,299 | ||||||
Hana Financial Group Inc. |
359,068 | 10,729,894 | ||||||
Hanwha Aerospace Co. Ltd. |
75,090 | 6,468,942 | ||||||
Hanwha Solutions Corp.(a) |
150,432 | 4,148,475 | ||||||
Kakao Corp. |
435,273 | 15,796,952 | ||||||
KB Financial Group Inc. |
633,071 | 25,788,910 | ||||||
LG Chem Ltd. |
29,646 | 13,053,365 | ||||||
LG Corp. |
1 | 62 | ||||||
LG Display Co. Ltd.(a) |
507,819 | 5,137,573 | ||||||
NAVER Corp. |
204,452 | 33,095,087 | ||||||
NCSoft Corp. |
21,089 | 4,006,682 | ||||||
POSCO Future M Co. Ltd.(c) |
32,116 | 10,900,311 | ||||||
POSCO Holdings Inc. |
60,502 | 26,454,103 | ||||||
Samsung C&T Corp. |
108,307 | 8,569,062 | ||||||
Samsung Electro-Mechanics Co. Ltd. |
102,448 | 10,476,643 | ||||||
Samsung Electronics Co. Ltd. |
3,307,882 | 167,300,261 | ||||||
Samsung Engineering Co. Ltd.(a) |
162,252 | 4,173,685 | ||||||
Samsung Fire & Marine Insurance Co. Ltd. |
31,111 | 5,795,379 | ||||||
Samsung SDI Co. Ltd. |
40,196 | 18,642,954 | ||||||
Samsung Securities Co. Ltd. |
608,266 | 17,167,646 | ||||||
Shinhan Financial Group Co. Ltd. |
538,252 | 14,458,324 | ||||||
SK Hynix Inc. |
398,466 | 36,639,001 |
Security | Shares |
Value | ||||||
South Korea (continued) | ||||||||
SK Inc. |
373,113 | $ | 40,740,194 | |||||
SK Innovation Co. Ltd.(a) |
86,744 | 11,635,063 | ||||||
SKC Co. Ltd. |
62,542 | 4,329,558 | ||||||
Woori Financial Group Inc. |
1,079,383 | 9,710,707 | ||||||
|
|
|||||||
526,782,053 | ||||||||
Taiwan — 16.3% | ||||||||
Acer Inc. |
28,831,000 | 33,057,029 | ||||||
Advantech Co. Ltd. |
533,741 | 5,743,763 | ||||||
ASE Technology Holding Co. Ltd. |
2,308,000 | 8,542,527 | ||||||
Asustek Computer Inc. |
350,000 | 4,423,563 | ||||||
AUO Corp. |
7,656,200 | 4,275,317 | ||||||
Cathay Financial Holding Co. Ltd. |
16,143,769 | 23,082,953 | ||||||
Chailease Holding Co. Ltd. |
775,331 | 4,322,011 | ||||||
Chunghwa Telecom Co. Ltd. |
3,072,000 | 11,189,675 | ||||||
CTBC Financial Holding Co. Ltd. |
22,564,000 | 16,864,865 | ||||||
Delta Electronics Inc. |
2,894,000 | 31,275,147 | ||||||
E.Sun Financial Holding Co. Ltd. |
53,087,836 | 40,713,630 | ||||||
Far EasTone Telecommunications Co. Ltd. |
4,391,000 | 9,739,371 | ||||||
First Financial Holding Co. Ltd. |
59,537,213 | 49,137,269 | ||||||
Fubon Financial Holding Co. Ltd. |
11,051,559 | 22,038,599 | ||||||
Lite-On Technology Corp. |
3,516,000 | 15,031,123 | ||||||
MediaTek Inc. |
846,000 | 18,657,219 | ||||||
Mega Financial Holding Co. Ltd. |
17,430,982 | 19,617,218 | ||||||
momo.com Inc. |
258,000 | 4,212,708 | ||||||
Quanta Computer Inc. |
645,000 | 5,134,238 | ||||||
SinoPac Financial Holdings Co. Ltd. |
37,361,962 | 20,053,908 | ||||||
Taishin Financial Holding Co. Ltd. |
23,137,438 | 12,917,608 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. |
17,955,000 | 308,519,884 | ||||||
United Microelectronics Corp. |
11,088,000 | 15,830,873 | ||||||
Voltronic Power Technology Corp. |
183,000 | 8,305,918 | ||||||
Wistron Corp. |
2,658,000 | 9,717,257 | ||||||
|
|
|||||||
702,403,673 | ||||||||
Thailand — 2.9% | ||||||||
Advanced Info Service PCL, NVDR |
3,589,000 | 22,126,189 | ||||||
Asset World Corp. PCL, NVDR |
65,029,400 | 8,090,287 | ||||||
Bangkok Dusit Medical Services PCL, NVDR |
20,269,400 | 16,202,198 | ||||||
BTS Group Holdings PCL, NVDR |
70,082,600 | 14,702,620 | ||||||
Delta Electronics Thailand PCL, NVDR |
3,957,200 | 12,246,905 | ||||||
Muangthai Capital PCL, NVDR |
4,562,500 | 5,302,725 | ||||||
PTT Exploration & Production PCL, NVDR |
2,944,000 | 13,328,157 | ||||||
PTT Public Company Ltd., NVDR |
21,627,700 | 21,458,600 | ||||||
Siam Cement PCL (The), NVDR |
1,388,000 | 12,406,482 | ||||||
|
|
|||||||
125,864,163 | ||||||||
Turkey — 0.7% | ||||||||
Aselsan Elektronik Sanayi Ve Ticaret AS |
4,089,973 | 5,879,179 | ||||||
Haci Omer Sabanci Holding AS |
5,413,996 | 12,105,150 | ||||||
KOC Holding AS |
825,955 | 4,383,208 | ||||||
Yapi ve Kredi Bankasi AS |
12,786,685 | 7,594,338 | ||||||
|
|
|||||||
29,961,875 | ||||||||
United Arab Emirates — 1.4% | ||||||||
Abu Dhabi Commercial Bank PJSC |
9,786,394 | 22,993,896 | ||||||
Abu Dhabi Islamic Bank PJSC |
1,688,399 | 4,789,850 | ||||||
Emirates Telecommunications Group Co. PJSC |
3,807,435 | 20,566,161 | ||||||
First Abu Dhabi Bank PJSC |
3,773,782 | 14,051,874 | ||||||
|
|
|||||||
62,401,781 | ||||||||
|
|
|||||||
Total
Common Stocks — 97.2% |
4,200,671,295 | |||||||
|
|
26 |
2 0 2 3 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (continued) August 31, 2023 |
iShares® ESG Aware MSCI EM ETF (Percentages shown are based on Net Assets) |
Security | Shares |
Value | ||||||
Preferred Stocks |
||||||||
Brazil — 1.7% | ||||||||
Banco Bradesco SA, Preference Shares, NVS |
4,034,654 | $ | 12,180,426 | |||||
Cia.
Energetica de Minas Gerais, |
7,343,936 | 18,285,504 | ||||||
Gerdau SA, Preference Shares, NVS |
1,219,391 | 6,365,295 | ||||||
Itau Unibanco Holding SA, Preference Shares, NVS |
2,318,482 | 12,842,350 | ||||||
Petroleo Brasileiro SA, Preference Shares, NVS |
3,892,096 | 25,103,451 | ||||||
|
|
|||||||
74,777,026 | ||||||||
Chile — 0.1% | ||||||||
Sociedad
Quimica y Minera de Chile SA, Class B, |
92,321 | 5,717,510 | ||||||
|
|
|||||||
Colombia — 0.2% | ||||||||
Bancolombia SA, Preference Shares, NVS |
1,005,405 | 6,685,495 | ||||||
|
|
|||||||
South Korea — 0.5% | ||||||||
Samsung
Electronics Co. Ltd., Preference |
503,404 | 20,548,929 | ||||||
|
|
|||||||
Total
Preferred Stocks — 2.5% |
|
107,728,960 | ||||||
|
|
|||||||
Total
Long-Term Investments — 99.7% |
|
4,308,400,255 | ||||||
|
|
|||||||
Short-Term Securities |
||||||||
Money Market Funds — 0.8% | ||||||||
BlackRock
Cash Funds: Institutional, SL Agency |
35,134,316 | 35,144,856 | ||||||
|
|
|||||||
Total
Short-Term Securities — 0.8% |
|
35,144,856 | ||||||
|
|
|||||||
Total
Investments — 100.5% |
|
4,343,545,111 | ||||||
Liabilities in Excess of Other Assets — (0.5)% |
(19,790,575 | ) | ||||||
|
|
|||||||
Net Assets — 100.0% |
$ | 4,323,754,536 | ||||||
|
|
(a) |
Non-income producing security. |
(b) |
Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
(c) |
All or a portion of this security is on loan. |
(d) |
Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. |
(e) |
This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933. |
(f) |
Affiliate of the Fund. |
(g) |
Annualized 7-day yield as of period end. |
(h) |
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, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Issuer | Value at 08/31/22 |
Purchases at Cost |
Proceeds from Sale |
Net Realized Gain (Loss) |
Change
in |
Value at 08/31/23 |
Shares Held at |
Income |
Capital Gain |
|||||||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares |
$ | 23,472,414 | $ | 11,675,195 | (a) | $ | — | $ | 4,671 | $ | (7,424 | ) | $ | 35,144,856 | 35,134,316 | $ | 509,929 | (b) | $ | — | ||||||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares(c) |
5,610,000 | — | (5,610,000 | )(a) | — | — | — | — | 177,979 | 1 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||
$ | 4,671 | $ | (7,424 | ) | $ | 35,144,856 | $ | 687,908 | $ | 1 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) |
Represents net amount purchased (sold). |
(b) |
All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
(c) |
As of period end, the entity is no longer held. |
S C H E D U L E O F I N V E S T M E N T S |
27 |
Schedule of Investments (continued) August 31, 2023 |
iShares® ESG Aware MSCI EM 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 |
260 | 09/15/23 | $ | 12,731 | $ | (265,412 | ) | |||||||||
|
|
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) |
$ | — | $ | — | $ | 265,412 | $ | — | $ | — | $ | — | $ | 265,412 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:
Commodity Contracts |
Credit Contracts |
Equity Contracts |
Foreign Currency Exchange Contracts |
Interest Rate Contracts |
Other Contracts |
Total | ||||||||||||||||||||||
Net Realized Gain (Loss) from |
||||||||||||||||||||||||||||
Futures contracts |
$ | — | $ | — | $ | 74,649 | $ | — | $ | — | $ | — | $ | 74,649 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on |
||||||||||||||||||||||||||||
Futures contracts |
$ | — | $ | — | $ | (292,296 | ) | $ | — | $ | — | $ | — | $ | (292,296 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
|
||||
Futures contracts: |
||||
Average notional value of contracts — long |
$ | 9,065,034 | ||
|
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.
|
||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
|
||||||||||||||||
Assets |
||||||||||||||||
Investments |
||||||||||||||||
Long-Term Investments |
||||||||||||||||
Common Stocks |
$ | 585,411,322 | $ | 3,615,257,027 | $ | 2,946 | $ | 4,200,671,295 | ||||||||
Preferred Stocks |
87,180,031 | 20,548,929 | — | 107,728,960 | ||||||||||||
Short-Term Securities |
||||||||||||||||
Money Market Funds |
35,144,856 | — | — | 35,144,856 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 707,736,209 | $ | 3,635,805,956 | $ | 2,946 | $ | 4,343,545,111 | |||||||||
|
|
|
|
|
|
|
|
28 |
2 0 2 3 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (continued) August 31, 2023 |
iShares® ESG Aware MSCI EM ETF |
Fair Value Hierarchy as of Period End (continued)
|
||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
|
||||||||||||||||
Derivative Financial Instruments(a) |
||||||||||||||||
Liabilities |
||||||||||||||||
Equity Contracts |
$ | (265,412 | ) | $ | — | $ | — | $ | (265,412 | ) | ||||||
|
|
|
|
|
|
|
|
(a) |
Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument. |
See notes to financial statements.
S C H E D U L E O F I N V E S T M E N T S |
29 |
Schedule of Investments August 31, 2023 |
iShares® MSCI Emerging Markets ex China ETF (Percentages shown are based on Net Assets) |
Security | Shares |
Value | ||||||
Common Stocks |
||||||||
Brazil — 5.5% | ||||||||
Ambev SA |
5,169,734 | $ | 14,448,384 | |||||
Atacadao SA |
719,390 | 1,490,482 | ||||||
B3 SA - Brasil, Bolsa, Balcao |
6,379,938 | 16,658,273 | ||||||
Banco Bradesco SA |
1,754,403 | 4,690,642 | ||||||
Banco BTG Pactual SA |
1,293,974 | 8,484,433 | ||||||
Banco do Brasil SA |
950,526 | 9,040,655 | ||||||
Banco Santander Brasil SA |
398,120 | 2,179,508 | ||||||
BB Seguridade Participacoes SA |
768,726 | 4,716,006 | ||||||
CCR SA |
1,109,265 | 2,791,055 | ||||||
Centrais Eletricas Brasileiras SA |
1,331,932 | 9,483,733 | ||||||
Cia. de Saneamento Basico do Estado de Sao Paulo |
378,905 | 4,431,736 | ||||||
Cia. Siderurgica Nacional SA |
736,950 | 1,802,176 | ||||||
Cosan SA |
1,337,848 | 4,733,211 | ||||||
CPFL Energia SA |
256,278 | 1,767,327 | ||||||
Energisa SA |
235,565 | 2,192,940 | ||||||
Eneva SA(a) |
947,698 | 2,281,189 | ||||||
Engie Brasil Energia SA |
214,139 | 1,821,374 | ||||||
Equatorial Energia SA |
1,116,090 | 7,135,511 | ||||||
Hapvida Participacoes e Investimentos SA(a)(b) |
5,838,355 | 5,022,444 | ||||||
Hypera SA |
417,388 | 3,286,307 | ||||||
JBS SA |
841,507 | 3,126,731 | ||||||
Klabin SA |
831,882 | 3,823,393 | ||||||
Localiza Rent a Car SA |
988,090 | 12,620,368 | ||||||
Lojas Renner SA |
1,057,901 | 3,424,471 | ||||||
Magazine Luiza SA(a) |
3,363,546 | 1,874,655 | ||||||
Natura & Co. Holding SA(a) |
1,007,816 | 3,089,356 | ||||||
Petroleo Brasileiro SA |
4,078,649 | 28,448,125 | ||||||
PRIO SA(a) |
876,190 | 8,213,314 | ||||||
Raia Drogasil SA |
1,395,056 | 7,741,468 | ||||||
Rede D’Or Sao Luiz SA(b) |
644,016 | 3,727,244 | ||||||
Rumo SA |
1,424,708 | 6,430,110 | ||||||
Sendas Distribuidora SA |
1,416,149 | 3,320,138 | ||||||
Suzano SA |
874,675 | 8,857,938 | ||||||
Telefonica Brasil SA |
463,558 | 3,870,745 | ||||||
Tim SA |
919,035 | 2,674,305 | ||||||
TOTVS SA |
576,153 | 3,227,448 | ||||||
Ultrapar Participacoes SA |
796,111 | 2,919,473 | ||||||
Vale SA |
3,730,574 | 49,027,323 | ||||||
Vibra Energia SA |
1,279,491 | 4,769,621 | ||||||
WEG SA |
1,841,112 | 13,339,748 | ||||||
|
|
|||||||
282,983,360 | ||||||||
Chile — 0.6% | ||||||||
Banco de Chile |
50,531,693 | 5,512,128 | ||||||
Banco de Credito e Inversiones SA |
73,966 | 2,127,890 | ||||||
Banco Santander Chile |
73,886,355 | 3,535,875 | ||||||
Cencosud SA |
1,399,332 | 2,995,409 | ||||||
Cia. Cervecerias Unidas SA |
142,028 | 1,049,678 | ||||||
Cia. Sud Americana de Vapores SA |
17,855,152 | 1,191,649 | ||||||
Empresas CMPC SA |
1,232,418 | 2,237,698 | ||||||
Empresas COPEC SA |
438,018 | 3,163,764 | ||||||
Enel Americas SA(a) |
23,939,179 | 2,844,965 | ||||||
Enel Chile SA |
31,292,578 | 2,108,647 | ||||||
Falabella SA |
892,624 | 2,198,776 | ||||||
|
|
|||||||
28,966,479 | ||||||||
Colombia — 0.1% | ||||||||
Bancolombia SA |
287,974 | 2,048,660 |
Security | Shares |
Value | ||||||
Colombia (continued) | ||||||||
Interconexion Electrica SA ESP |
505,945 | $ | 1,852,843 | |||||
|
|
|||||||
3,901,503 | ||||||||
Czech Republic — 0.2% | ||||||||
CEZ AS |
176,865 | 7,530,137 | ||||||
Komercni Banka AS |
85,014 | 2,654,674 | ||||||
Moneta Money Bank AS(b) |
341,118 | 1,272,519 | ||||||
|
|
|||||||
11,457,330 | ||||||||
Egypt — 0.1% | ||||||||
Commercial International Bank Egypt SAE |
1,773,810 | 2,464,742 | ||||||
Eastern Co. SAE |
790,715 | 391,729 | ||||||
Egyptian Financial Group-Hermes Holding Co.(a) |
822,113 | 319,466 | ||||||
|
|
|||||||
3,175,937 | ||||||||
Greece — 0.7% | ||||||||
Alpha Services and Holdings SA(a) |
2,391,921 | 4,021,173 | ||||||
Eurobank Ergasias Services and Holdings SA, Class A(a) |
2,784,251 | 4,826,729 | ||||||
Hellenic Telecommunications Organization SA |
194,061 | 2,900,094 | ||||||
JUMBO SA |
123,967 | 3,833,764 | ||||||
Motor Oil Hellas Corinth Refineries SA |
71,249 | 1,815,584 | ||||||
Mytilineos SA |
114,875 | 4,658,771 | ||||||
National Bank of Greece SA(a) |
588,294 | 3,994,382 | ||||||
OPAP SA |
200,701 | 3,388,953 | ||||||
Piraeus Financial Holdings SA(a) |
745,942 | 2,581,889 | ||||||
Public Power Corp. SA(a) |
225,208 | 2,461,250 | ||||||
|
|
|||||||
34,482,589 | ||||||||
Hungary — 0.3% | ||||||||
MOL Hungarian Oil & Gas PLC |
492,429 | 3,723,762 | ||||||
OTP Bank Nyrt |
258,750 | 10,551,135 | ||||||
Richter Gedeon Nyrt |
155,665 | 3,906,684 | ||||||
|
|
|||||||
18,181,581 | ||||||||
India — 21.4% | ||||||||
ABB India Ltd. |
58,174 | 3,076,695 | ||||||
Adani Enterprises Ltd. |
190,465 | 5,560,475 | ||||||
Adani Green Energy Ltd.(a) |
345,689 | 3,877,746 | ||||||
Adani Ports & Special Economic Zone Ltd. |
588,650 | 5,626,422 | ||||||
Adani Power Ltd.(a) |
852,732 | 3,298,314 | ||||||
Ambuja Cements Ltd. |
666,988 | 3,448,884 | ||||||
Apollo Hospitals Enterprise Ltd. |
110,473 | 6,419,132 | ||||||
Ashok Leyland Ltd. |
1,592,391 | 3,536,349 | ||||||
Asian Paints Ltd. |
420,507 | 16,532,501 | ||||||
Astral Ltd. |
131,116 | 3,094,804 | ||||||
AU Small Finance Bank Ltd.(b) |
183,136 | 1,598,661 | ||||||
Aurobindo Pharma Ltd. |
296,390 | 2,968,852 | ||||||
Avenue Supermarts Ltd.(a)(b) |
178,501 | 8,020,128 | ||||||
Axis Bank Ltd. |
2,472,043 | 29,043,025 | ||||||
Bajaj Auto Ltd. |
76,029 | 4,233,560 | ||||||
Bajaj Finance Ltd. |
298,855 | 25,831,971 | ||||||
Bajaj Finserv Ltd. |
418,978 | 7,526,713 | ||||||
Bajaj Holdings & Investment Ltd. |
29,889 | 2,683,691 | ||||||
Balkrishna Industries Ltd. |
84,926 | 2,382,030 | ||||||
Bandhan Bank Ltd.(b) |
786,275 | 2,178,240 | ||||||
Bank of Baroda |
1,159,151 | 2,617,461 | ||||||
Berger Paints India Ltd. |
275,283 | 2,388,265 | ||||||
Bharat Electronics Ltd. |
4,012,154 | 6,445,924 | ||||||
Bharat Forge Ltd. |
281,220 | 3,633,763 | ||||||
Bharat Petroleum Corp. Ltd. |
833,847 | 3,427,648 | ||||||
Bharti Airtel Ltd. |
2,448,639 | 25,316,587 | ||||||
Britannia Industries Ltd. |
118,980 | 6,420,168 | ||||||
CG Power and Industrial Solutions Ltd. |
683,814 | 3,544,457 |
30 |
2 0 2 3 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (continued) August 31, 2023 |
iShares® MSCI Emerging Markets ex China ETF (Percentages shown are based on Net Assets) |
Security | Shares |
Value | ||||||
India (continued) | ||||||||
Cholamandalam Investment and Finance Co. Ltd. |
451,346 | $ | 6,111,872 | |||||
Cipla Ltd. |
576,591 | 8,751,315 | ||||||
Coal India Ltd. |
1,726,739 | 4,794,441 | ||||||
Colgate-Palmolive India Ltd. |
134,532 | 3,154,008 | ||||||
Container Corp. of India Ltd. |
301,112 | 2,443,594 | ||||||
Cummins India Ltd. |
150,338 | 3,101,236 | ||||||
Dabur India Ltd. |
679,800 | 4,537,789 | ||||||
Divi’s Laboratories Ltd. |
131,168 | 5,685,980 | ||||||
DLF Ltd. |
693,520 | 4,219,291 | ||||||
Dr. Reddy’s Laboratories Ltd. |
118,779 | 8,034,760 | ||||||
Eicher Motors Ltd. |
150,207 | 6,050,691 | ||||||
GAIL India Ltd. |
2,561,865 | 3,557,758 | ||||||
Godrej Consumer Products Ltd.(a) |
449,215 | 5,451,961 | ||||||
Godrej Properties Ltd.(a) |
137,409 | 2,729,423 | ||||||
Grasim Industries Ltd. |
289,127 | 6,249,797 | ||||||
Havells India Ltd. |
274,405 | 4,585,596 | ||||||
HCL Technologies Ltd. |
1,039,028 | 14,698,762 | ||||||
HDFC Asset Management Co. Ltd.(b) |
88,400 | 2,695,366 | ||||||
HDFC Bank Ltd. |
3,056,126 | 57,870,700 | ||||||
HDFC Life Insurance Co. Ltd.(b) |
1,061,479 | 8,259,636 | ||||||
Hero MotoCorp Ltd. |
120,701 | 4,248,912 | ||||||
Hindalco Industries Ltd. |
1,350,858 | 7,489,114 | ||||||
Hindustan Aeronautics Ltd. |
86,854 | 4,087,352 | ||||||
Hindustan Petroleum Corp. Ltd. |
649,971 | 1,946,752 | ||||||
Hindustan Unilever Ltd. |
901,371 | 27,266,330 | ||||||
ICICI Bank Ltd. |
5,616,327 | 64,834,516 | ||||||
ICICI Lombard General Insurance Co. Ltd.(b) |
259,486 | 4,114,462 | ||||||
ICICI Prudential Life Insurance Co. Ltd.(b) |
390,186 | 2,656,013 | ||||||
IDFC First Bank Ltd.(a) |
3,306,301 | 3,728,194 | ||||||
Indian Hotels Co. Ltd. (The), Class A |
933,808 | 4,743,420 | ||||||
Indian Oil Corp. Ltd. |
3,179,757 | 3,420,025 | ||||||
Indian Railway Catering & Tourism Corp. Ltd. |
268,928 | 2,181,482 | ||||||
Indraprastha Gas Ltd. |
345,937 | 1,952,995 | ||||||
Info Edge India Ltd. |
77,926 | 4,072,030 | ||||||
Infosys Ltd. |
3,638,220 | 63,047,289 | ||||||
InterGlobe Aviation Ltd.(a)(b) |
147,352 | 4,332,527 | ||||||
ITC Ltd. |
3,273,215 | 17,375,397 | ||||||
Jindal Steel & Power Ltd. |
401,045 | 3,311,858 | ||||||
Jio Financial Services Ltd., NVS(a) |
3,290,297 | 9,280,338 | ||||||
JSW Steel Ltd. |
663,412 | 6,241,050 | ||||||
Jubilant Foodworks Ltd. |
434,816 | 2,686,866 | ||||||
Kotak Mahindra Bank Ltd. |
1,187,004 | 25,188,069 | ||||||
Larsen & Toubro Infotech Ltd.(b) |
97,444 | 6,103,982 | ||||||
Larsen & Toubro Ltd. |
754,938 | 24,631,540 | ||||||
Lupin Ltd. |
223,608 | 2,963,278 | ||||||
Mahindra & Mahindra Ltd. |
1,022,450 | 19,440,506 | ||||||
Marico Ltd. |
580,326 | 3,993,263 | ||||||
Maruti Suzuki India Ltd. |
148,548 | 17,938,890 | ||||||
Max Healthcare Institute Ltd.(a) |
840,195 | 5,986,334 | ||||||
Mphasis Ltd. |
84,389 | 2,473,113 | ||||||
MRF Ltd. |
2,025 | 2,657,522 | ||||||
Muthoot Finance Ltd. |
132,264 | 2,012,519 | ||||||
Nestle India Ltd. |
37,003 | 9,822,611 | ||||||
NTPC Ltd. |
4,778,678 | 12,713,599 | ||||||
Oil & Natural Gas Corp. Ltd. |
3,461,391 | 7,280,587 | ||||||
Page Industries Ltd. |
6,818 | 3,304,992 | ||||||
Petronet LNG Ltd. |
840,511 | 2,183,936 | ||||||
PI Industries Ltd. |
86,862 | 3,805,486 | ||||||
Pidilite Industries Ltd. |
168,141 | 5,105,516 | ||||||
Power Finance Corp. Ltd. |
1,145,466 | 3,600,239 |
Security | Shares |
Value | ||||||
India (continued) | ||||||||
Power Grid Corp. of India Ltd. |
3,793,113 | $ | 11,195,608 | |||||
REC Ltd. |
1,285,302 | 3,705,172 | ||||||
Reliance Industries Ltd. |
3,335,950 | 96,912,801 | ||||||
Samvardhana Motherson International Ltd. |
2,665,605 | 3,081,601 | ||||||
SBI Cards & Payment Services Ltd. |
308,398 | 3,039,949 | ||||||
SBI Life Insurance Co. Ltd.(b) |
494,291 | 7,711,256 | ||||||
Shree Cement Ltd. |
10,131 | 2,911,475 | ||||||
Shriram Transport Finance Co. Ltd. |
310,692 | 7,231,349 | ||||||
Siemens Ltd. |
98,340 | 4,656,206 | ||||||
Sona Blw Precision Forgings Ltd.(b) |
425,865 | 3,061,988 | ||||||
SRF Ltd. |
165,475 | 4,705,552 | ||||||
State Bank of India |
1,955,016 | 13,240,354 | ||||||
Sun Pharmaceutical Industries Ltd. |
1,052,387 | 14,106,266 | ||||||
Supreme Industries Ltd. |
61,416 | 3,307,000 | ||||||
Tata Consultancy Services Ltd. |
1,002,502 | 40,605,224 | ||||||
Tata Consumer Products Ltd. |
611,943 | 6,162,919 | ||||||
Tata Elxsi Ltd. |
37,611 | 3,289,174 | ||||||
Tata Motors Ltd. |
1,821,431 | 13,206,877 | ||||||
Tata Power Co. Ltd. (The) |
1,569,943 | 4,644,452 | ||||||
Tata Steel Ltd. |
8,029,715 | 11,908,180 | ||||||
Tech Mahindra Ltd. |
588,213 | 8,528,824 | ||||||
Titan Co. Ltd. |
389,388 | 14,590,835 | ||||||
Torrent Pharmaceuticals Ltd. |
114,789 | 2,555,084 | ||||||
Trent Ltd. |
198,995 | 4,922,272 | ||||||
Tube Investments of India Ltd. |
116,725 | 4,086,008 | ||||||
TVS Motor Co. Ltd. |
260,881 | 4,470,483 | ||||||
UltraTech Cement Ltd. |
125,399 | 12,563,098 | ||||||
United Spirits Ltd.(a) |
319,529 | 3,885,763 | ||||||
UPL Ltd. |
494,625 | 3,529,602 | ||||||
Varun Beverages Ltd. |
499,325 | 5,418,040 | ||||||
Vedanta Ltd. |
816,492 | 2,285,873 | ||||||
Wipro Ltd. |
1,432,115 | 7,054,286 | ||||||
Yes Bank Ltd.(a) |
14,193,949 | 2,879,013 | ||||||
Zomato Ltd.(a) |
4,710,280 | 5,542,602 | ||||||
|
|
|||||||
1,102,934,532 | ||||||||
Indonesia — 2.8% | ||||||||
Adaro Energy Indonesia Tbk PT |
16,420,000 | 2,876,566 | ||||||
Aneka Tambang Tbk |
9,385,700 | 1,224,483 | ||||||
Astra International Tbk PT |
22,068,400 | 9,337,245 | ||||||
Bank Central Asia Tbk PT |
60,796,700 | 36,599,936 | ||||||
Bank Mandiri Persero Tbk PT |
40,932,000 | 16,186,060 | ||||||
Bank Negara Indonesia Persero Tbk PT |
8,169,700 | 4,919,842 | ||||||
Bank Rakyat Indonesia Persero Tbk PT |
74,753,371 | 27,232,361 | ||||||
Barito Pacific Tbk PT |
31,015,576 | 2,178,799 | ||||||
Charoen Pokphand Indonesia Tbk PT(a) |
8,104,000 | 2,752,938 | ||||||
GoTo Gojek Tokopedia Tbk PT(a) |
907,885,600 | 5,713,409 | ||||||
Indah Kiat Pulp & Paper Tbk PT |
2,967,700 | 1,772,329 | ||||||
Indofood CBP Sukses Makmur Tbk PT |
2,560,900 | 1,883,262 | ||||||
Indofood Sukses Makmur Tbk PT |
4,821,900 | 2,246,644 | ||||||
Kalbe Farma Tbk PT |
23,165,200 | 2,755,994 | ||||||
Merdeka Copper Gold Tbk PT(a) |
13,369,859 | 2,963,460 | ||||||
Sarana Menara Nusantara Tbk PT |
22,834,700 | 1,544,129 | ||||||
Semen Indonesia Persero Tbk PT |
3,748,923 | 1,672,870 | ||||||
Sumber Alfaria Trijaya Tbk PT |
18,692,900 | 3,559,383 | ||||||
Telkom Indonesia Persero Tbk PT |
54,309,300 | 13,275,294 | ||||||
Unilever Indonesia Tbk PT |
8,679,400 | 2,091,455 | ||||||
United Tractors Tbk PT |
1,659,600 | 2,831,806 | ||||||
Vale Indonesia Tbk PT |
2,613,000 | 1,011,284 | ||||||
|
|
|||||||
146,629,549 |
S C H E D U L E O F I N V E S T M E N T S |
31 |
Schedule of Investments (continued) August 31, 2023 |
iShares® MSCI Emerging Markets ex China ETF (Percentages shown are based on Net Assets) |
Security | Shares |
Value | ||||||
Kuwait — 1.2% | ||||||||
Agility Public Warehousing Co. KSC(a) |
1,658,093 | $ | 3,091,298 | |||||
Boubyan Bank KSCP |
1,532,449 | 3,031,321 | ||||||
Gulf Bank KSCP |
1,888,205 | 1,543,232 | ||||||
Kuwait Finance House KSCP |
8,897,344 | 21,496,041 | ||||||
Mabanee Co. KPSC |
753,880 | 2,042,928 | ||||||
Mobile Telecommunications Co. KSCP |
2,141,298 | 3,541,981 | ||||||
National Bank of Kuwait SAKP |
8,333,896 | 24,869,508 | ||||||
|
|
|||||||
59,616,309 | ||||||||
Malaysia — 2.0% | ||||||||
AMMB Holdings Bhd |
1,860,200 | 1,496,493 | ||||||
Axiata Group Bhd |
3,102,100 | 1,578,606 | ||||||
CIMB Group Holdings Bhd |
7,020,000 | 8,509,819 | ||||||
Dialog Group Bhd |
3,719,400 | 1,641,976 | ||||||
DiGi.Com Bhd |
3,978,300 | 3,756,674 | ||||||
Gamuda Bhd |
2,045,600 | 1,985,909 | ||||||
Genting Bhd |
2,340,900 | 2,206,011 | ||||||
Genting Malaysia Bhd |
3,259,500 | 1,805,611 | ||||||
Hong Leong Bank Bhd |
742,300 | 3,193,971 | ||||||
Hong Leong Financial Group Bhd |
227,100 | 891,759 | ||||||
IHH Healthcare Bhd |
2,416,200 | 3,087,212 | ||||||
Inari Amertron Bhd |
2,869,300 | 1,951,825 | ||||||
IOI Corp. Bhd |
2,760,000 | 2,398,001 | ||||||
Kuala Lumpur Kepong Bhd |
533,700 | 2,478,600 | ||||||
Malayan Banking Bhd |
5,948,700 | 11,677,174 | ||||||
Malaysia Airports Holdings Bhd |
773,944 | 1,228,957 | ||||||
Maxis Bhd(c) |
2,579,600 | 2,230,110 | ||||||
MISC Bhd |
1,469,500 | 2,278,013 | ||||||
MR DIY Group M Bhd(b) |
3,284,250 | 1,097,120 | ||||||
Nestle Malaysia Bhd |
76,300 | 2,145,937 | ||||||
Petronas Chemicals Group Bhd |
3,045,000 | 4,672,962 | ||||||
Petronas Dagangan Bhd |
311,600 | 1,490,845 | ||||||
Petronas Gas Bhd |
868,500 | 3,204,465 | ||||||
PPB Group Bhd |
701,340 | 2,376,092 | ||||||
Press Metal Aluminium Holdings Bhd |
4,071,800 | 4,256,317 | ||||||
Public Bank Bhd |
15,790,900 | 14,393,868 | ||||||
QL Resources Bhd |
1,226,400 | 1,427,276 | ||||||
RHB Bank Bhd |
1,679,100 | 2,029,702 | ||||||
Sime Darby Bhd |
3,014,100 | 1,492,147 | ||||||
Sime Darby Plantation Bhd |
2,277,400 | 2,161,163 | ||||||
Telekom Malaysia Bhd |
1,258,700 | 1,384,452 | ||||||
Tenaga Nasional Bhd |
2,893,000 | 6,135,897 | ||||||
|
|
|||||||
102,664,964 | ||||||||
Mexico — 3.6% | ||||||||
Alfa SAB de CV, Class A |
3,407,900 | 2,252,546 | ||||||
America Movil SAB de CV |
20,767,271 | 19,548,676 | ||||||
Arca Continental SAB de CV |
573,608 | 5,584,524 | ||||||
Banco del Bajio SA(b) |
877,400 | 2,767,460 | ||||||
Cemex SAB de CV, NVS(a) |
16,618,354 | 13,109,109 | ||||||
Coca-Cola Femsa SAB de CV |
582,000 | 4,931,324 | ||||||
Fibra Uno Administracion SA de CV |
3,215,100 | 4,683,914 | ||||||
Fomento Economico Mexicano SAB de CV |
2,131,783 | 23,857,766 | ||||||
Gruma SAB de CV, Class B |
206,225 | 3,442,586 | ||||||
Grupo Aeroportuario del Pacifico SAB de CV, Class B |
429,101 | 7,883,650 | ||||||
Grupo Aeroportuario del Sureste SAB de CV, Class B |
212,809 | 5,798,470 | ||||||
Grupo Bimbo SAB de CV, Series A |
1,455,781 | 7,161,720 | ||||||
Grupo Carso SAB de CV, Series A1 |
616,863 | 4,917,032 | ||||||
Grupo Financiero Banorte SAB de CV, Class O |
2,843,886 | 24,088,092 |
Security | Shares |
Value | ||||||
Mexico (continued) | ||||||||
Grupo Financiero Inbursa SAB de CV, Class O(a)(c) |
2,014,639 | $ | 4,351,729 | |||||
Grupo Mexico SAB de CV, Series B |
3,408,486 | 16,234,313 | ||||||
Grupo Televisa SAB, CPO(c) |
2,639,161 | 2,341,896 | ||||||
Industrias Penoles SAB de CV(a)(c) |
213,135 | 3,014,553 | ||||||
Kimberly-Clark de Mexico SAB de CV, Class A |
1,669,487 | 3,755,991 | ||||||
Operadora De Sites Mexicanos SAB de CV |
1,500,000 | 1,400,545 | ||||||
Orbia Advance Corp. SAB de CV |
1,102,111 | 2,453,014 | ||||||
Promotora y Operadora de Infraestructura SAB de CV |
208,708 | 2,004,395 | ||||||
Wal-Mart de Mexico SAB de CV |
5,742,051 | 22,620,660 | ||||||
|
|
|||||||
188,203,965 | ||||||||
Netherlands — 0.1% | ||||||||
NEPI Rockcastle NV |
520,840 | 3,125,868 | ||||||
Pepco Group NV(a) |
179,847 | 1,408,950 | ||||||
|
|
|||||||
4,534,818 | ||||||||
Peru — 0.4% | ||||||||
Cia. de Minas Buenaventura SAA, ADR |
243,963 | 2,083,444 | ||||||
Credicorp Ltd. |
74,512 | 10,538,232 | ||||||
Southern Copper Corp. |
93,603 | 7,550,018 | ||||||
|
|
|||||||
20,171,694 | ||||||||
Philippines — 0.8% | ||||||||
Aboitiz Equity Ventures Inc. |
1,854,150 | 1,539,121 | ||||||
ACEN Corp. |
344,115 | 30,413 | ||||||
Ayala Corp. |
272,220 | 2,959,353 | ||||||
Ayala Land Inc. |
7,416,300 | 3,553,808 | ||||||
Bank of the Philippine Islands |
2,172,298 | 4,219,023 | ||||||
BDO Unibank Inc. |
2,600,842 | 6,394,368 | ||||||
International Container Terminal Services Inc. |
1,115,590 | 4,077,406 | ||||||
JG Summit Holdings Inc. |
2,995,180 | 1,931,728 | ||||||
Jollibee Foods Corp. |
487,380 | 2,038,974 | ||||||
Manila Electric Co. |
293,570 | 1,781,538 | ||||||
Metropolitan Bank & Trust Co. |
2,055,167 | 2,002,851 | ||||||
PLDT Inc. |
87,800 | 1,781,835 | ||||||
SM Investments Corp. |
268,305 | 3,944,094 | ||||||
SM Prime Holdings Inc. |
11,053,900 | 5,699,843 | ||||||
Universal Robina Corp. |
956,900 | 1,888,738 | ||||||
|
|
|||||||
43,843,093 | ||||||||
Poland — 1.2% | ||||||||
Allegro.eu SA (a)(b) |
496,004 | 3,967,310 | ||||||
Bank Polska Kasa Opieki SA |
208,448 | 5,441,751 | ||||||
Budimex SA |
13,846 | 1,510,216 | ||||||
CD Projekt SA |
74,605 | 2,662,940 | ||||||
Cyfrowy Polsat SA |
295,130 | 969,875 | ||||||
Dino Polska SA(a)(b) |
53,831 | 4,936,387 | ||||||
KGHM Polska Miedz SA |
155,470 | 4,287,144 | ||||||
LPP SA |
1,158 | 3,895,658 | ||||||
mBank SA(a) |
16,741 | 1,738,668 | ||||||
PGE Polska Grupa Energetyczna SA(a) |
1,024,641 | 2,103,259 | ||||||
Polski Koncern Naftowy ORLEN SA |
636,780 | 9,721,635 | ||||||
Powszechna Kasa Oszczednosci Bank Polski SA |
960,002 | 8,669,562 | ||||||
Powszechny Zaklad Ubezpieczen SA |
663,517 | 6,645,023 | ||||||
Santander Bank Polska SA(a) |
39,265 | 3,532,606 | ||||||
|
|
|||||||
60,082,034 | ||||||||
Qatar — 1.3% | ||||||||
Barwa Real Estate Co. |
2,427,930 | 1,742,527 | ||||||
Commercial Bank PSQC (The) |
3,625,584 | 5,647,387 | ||||||
Dukhan Bank |
1,941,548 | 2,224,762 | ||||||
Industries Qatar QSC |
1,674,258 | 5,672,573 |
32 |
2 0 2 3 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (continued) August 31, 2023 |
iShares® MSCI Emerging Markets ex China ETF (Percentages shown are based on Net Assets) |
Security | Shares |
Value | ||||||
Qatar (continued) | ||||||||
Masraf Al Rayan QSC |
6,256,712 | $ | 3,807,158 | |||||
Mesaieed Petrochemical Holding Co |
5,132,424 | 2,588,173 | ||||||
Ooredoo QPSC |
923,053 | 2,734,597 | ||||||
Qatar Electricity & Water Co. QSC |
525,045 | 2,574,353 | ||||||
Qatar Fuel QSC |
260,481 | 1,143,244 | ||||||
Qatar Gas Transport Co. Ltd. |
2,809,760 | 2,855,381 | ||||||
Qatar International Islamic Bank QSC |
1,103,109 | 2,990,698 | ||||||
Qatar Islamic Bank SAQ |
1,812,480 | 9,599,031 | ||||||
Qatar National Bank QPSC |
5,108,786 | 21,852,473 | ||||||
|
|
|||||||
65,432,357 | ||||||||
Russia — 0.0% | ||||||||
Alrosa PJSC(a)(d) |
1,271,273 | 133 | ||||||
Gazprom PJSC(a)(d) |
5,613,440 | 585 | ||||||
Inter RAO UES PJSC(a)(d) |
19,580,300 | 2,042 | ||||||
LUKOIL PJSC(a)(d) |
197,285 | 21 | ||||||
Magnit PJSC(a)(d) |
26,665 | 3 | ||||||
Magnit PJSC, GDR(a)(d) |
1 | — | ||||||
MMC Norilsk Nickel PJSC(a)(d) |
29,789 | 3 | ||||||
Mobile TeleSystems PJSC(a)(d) |
418,880 | 44 | ||||||
Moscow Exchange MICEX-RTS PJSC(a)(d) |
631,870 | 66 | ||||||
Novatek PJSC(a)(d) |
433,150 | 45 | ||||||
Novolipetsk Steel PJSC(a)(d) |
785,210 | 82 | ||||||
Ozon Holdings PLC, ADR(a)(d) |
534 | — | ||||||
PhosAgro PJSC(a)(d) |
22,411 | 2 | ||||||
PhosAgro PJSC, GDR(a)(d)(e) |
1 | — | ||||||
PhosAgro PJSC, New(a)(d) |
433 | 4 | ||||||
Polymetal International PLC(a)(d) |
137,561 | 14 | ||||||
Polyus PJSC(a)(d) |
13,397 | 1 | ||||||
Rosneft Oil Co. PJSC(a)(d) |
532,936 | 56 | ||||||
Sberbank of Russia PJSC(a)(d) |
4,933,827 | 515 | ||||||
Severstal PAO(a)(d) |
109,143 | 11 | ||||||
Surgutneftegas PJSC(a)(d) |
3,671,000 | 383 | ||||||
Tatneft PJSC(a)(d) |
685,605 | 71 | ||||||
TCS Group Holding PLC, GDR(a)(d)(e) |
58,085 | 6 | ||||||
United Co. RUSAL International PJSC(a)(d) |
1,500,930 | 157 | ||||||
VK Co. Ltd.(a)(d) |
873 | — | ||||||
VTB Bank PJSC(a)(d) |
1,160,968,000 | 121 | ||||||
X5 Retail Group NV, GDR(a)(d) |
67,732 | 7 | ||||||
Yandex NV(a)(d) |
149,219 | 16 | ||||||
|
|
|||||||
4,388 | ||||||||
Saudi Arabia — 6.2% | ||||||||
ACWA Power Co. |
104,342 | 5,363,620 | ||||||
Advanced Petrochemical Co. |
148,463 | 1,683,232 | ||||||
Al Rajhi Bank |
2,147,978 | 41,293,327 | ||||||
Alinma Bank |
1,074,984 | 10,561,943 | ||||||
Almarai Co. JSC |
274,572 | 4,637,143 | ||||||
AngloGold Ashanti Ltd. |
459,025 | 7,813,951 | ||||||
Arab National Bank |
748,271 | 5,142,533 | ||||||
Arabian Internet & Communications Services Co. |
26,353 | 2,476,211 | ||||||
Bank AlBilad |
537,937 | 6,143,174 | ||||||
Bank Al-Jazira |
459,363 | 2,169,697 | ||||||
Banque Saudi Fransi |
653,190 | 6,671,519 | ||||||
Bupa Arabia for Cooperative Insurance Co. |
82,362 | 4,427,014 | ||||||
Co. for Cooperative Insurance (The) |
72,000 | 2,226,814 | ||||||
Dallah Healthcare Co. |
36,169 | 1,350,075 | ||||||
Dar Al Arkan Real Estate Development Co.(a) |
573,636 | 2,844,326 | ||||||
Dr Sulaiman Al Habib Medical Services Group Co. |
96,050 | 6,214,031 | ||||||
Elm Co. |
26,417 | 5,977,404 |
Security | Shares |
Value | ||||||
Saudi Arabia (continued) | ||||||||
Emaar Economic City(a) |
18,390 | $ | 41,216 | |||||
Etihad Etisalat Co. |
414,373 | 4,988,186 | ||||||
Jarir Marketing Co. |
645,796 | 2,541,413 | ||||||
Mobile Telecommunications Co. |
500,142 | 1,800,199 | ||||||
Mouwasat Medical Services Co. |
111,284 | 3,259,746 | ||||||
Nahdi Medical Co. |
41,754 | 1,688,202 | ||||||
National Industrialization Co.(a) |
382,950 | 1,298,671 | ||||||
Power & Water Utility Co. for Jubail & Yanbu |
81,352 | 1,542,167 | ||||||
Rabigh Refining & Petrochemical Co.(a) |
480,774 | 1,322,703 | ||||||
Reinet Investments SCA |
153,104 | 3,278,379 | ||||||
Riyad Bank |
1,610,796 | 13,062,907 | ||||||
SABIC Agri-Nutrients Co. |
256,891 | 9,413,744 | ||||||
Sahara International Petrochemical Co. |
394,624 | 3,830,720 | ||||||
Saudi Arabian Mining Co.(a) |
1,416,788 | 15,262,187 | ||||||
Saudi Arabian Oil Co.(b) |
2,917,809 | 27,169,918 | ||||||
Saudi Aramco Base Oil Co. |
50,149 | 1,955,874 | ||||||
Saudi Awwal Bank |
1,103,277 | 10,525,559 | ||||||
Saudi Basic Industries Corp. |
986,559 | 23,234,596 | ||||||
Saudi Electricity Co. |
915,211 | 5,048,478 | ||||||
Saudi Industrial Investment Group |
401,380 | 2,758,948 | ||||||
Saudi Investment Bank (The) |
544,831 | 2,409,122 | ||||||
Saudi Kayan Petrochemical Co.(a) |
819,801 | 2,658,650 | ||||||
Saudi National Bank (The) |
3,222,332 | 30,687,059 | ||||||
Saudi Research & Media Group(a) |
39,529 | 1,867,742 | ||||||
Saudi Tadawul Group Holding Co. |
54,725 | 2,884,978 | ||||||
Saudi Telecom Co. |
2,169,317 | 23,019,464 | ||||||
Savola Group (The) |
285,851 | 2,884,338 | ||||||
Yanbu National Petrochemical Co. |
307,623 | 3,466,534 | ||||||
|
|
|||||||
320,897,714 | ||||||||
South Africa — 4.1% | ||||||||
Absa Group Ltd. |
929,986 | 8,966,483 | ||||||
African Rainbow Minerals Ltd. |
123,367 | 1,169,325 | ||||||
Anglo American Platinum Ltd. |
71,832 | 2,505,090 | ||||||
Aspen Pharmacare Holdings Ltd. |
416,274 | 3,795,731 | ||||||
Bid Corp. Ltd. |
369,578 | 8,313,891 | ||||||
Bidvest Group Ltd. (The) |
321,270 | 4,847,545 | ||||||
Capitec Bank Holdings Ltd. |
96,022 | 8,057,509 | ||||||
Clicks Group Ltd. |
269,484 | 3,902,773 | ||||||
Discovery Ltd.(a) |
579,852 | 4,505,252 | ||||||
Exxaro Resources Ltd. |
281,682 | 2,503,293 | ||||||
FirstRand Ltd. |
5,521,119 | 21,451,841 | ||||||
Gold Fields Ltd. |
979,705 | 12,534,026 | ||||||
Growthpoint Properties Ltd. |
3,479,483 | 2,175,944 | ||||||
Harmony Gold Mining Co. Ltd. |
615,770 | 2,551,684 | ||||||
Impala Platinum Holdings Ltd. |
950,722 | 4,894,438 | ||||||
Kumba Iron Ore Ltd. |
70,743 | 1,556,009 | ||||||
MTN Group Ltd. |
1,864,202 | 11,877,193 | ||||||
Naspers Ltd., Class N |
214,777 | 36,586,469 | ||||||
Nedbank Group Ltd. |
482,865 | 5,517,982 | ||||||
Northam Platinum Holdings Ltd.(a) |
389,196 | 2,565,788 | ||||||
Old Mutual Ltd. |
5,350,451 | 3,595,299 | ||||||
OUTsurance Group Ltd., NVS |
961,868 | 2,037,316 | ||||||
Pepkor Holdings Ltd.(b) |
2,258,905 | 1,949,704 | ||||||
Remgro Ltd. |
581,235 | 4,864,400 | ||||||
Sanlam Ltd. |
1,932,170 | 6,972,591 | ||||||
Sasol Ltd. |
630,619 | 8,126,262 | ||||||
Shoprite Holdings Ltd. |
552,777 | 7,722,486 | ||||||
Sibanye Stillwater Ltd. |
3,101,805 | 4,680,118 | ||||||
Standard Bank Group Ltd. |
1,466,631 | 15,004,913 | ||||||
Vodacom Group Ltd. |
684,603 | 3,910,049 |
S C H E D U L E O F I N V E S T M E N T S |
33 |
Schedule of Investments (continued) August 31, 2023 |
iShares® MSCI Emerging Markets ex China ETF (Percentages shown are based on Net Assets) |
Security | Shares |
Value | ||||||
South Africa (continued) | ||||||||
Woolworths Holdings Ltd. |
1,031,545 | $ | 4,051,893 | |||||
|
|
|||||||
213,193,297 | ||||||||
South Korea — 17.0% | ||||||||
Amorepacific Corp. |
32,194 | 3,256,113 | ||||||
BGF retail Co. Ltd. |
8,991 | 1,063,103 | ||||||
Celltrion Healthcare Co. Ltd. |
117,362 | 5,742,625 | ||||||
Celltrion Inc. |
120,391 | 13,101,692 | ||||||
Celltrion Pharm Inc.(a)(c) |
19,859 | 1,031,884 | ||||||
CJ CheilJedang Corp. |
9,123 | 2,061,568 | ||||||
CosmoAM&T Co. Ltd.(a) |
25,354 | 3,018,100 | ||||||
Coway Co. Ltd. |
59,735 | 1,950,526 | ||||||
Daewoo Shipbuilding & Marine Engineering Co. Ltd.(a) |
47,048 | 1,364,048 | ||||||
DB Insurance Co. Ltd. |
50,537 | 3,121,034 | ||||||
Doosan Bobcat Inc. |
57,505 | 2,336,748 | ||||||
Doosan Enerbility Co. Ltd.(a) |
497,039 | 6,840,824 | ||||||
Ecopro BM Co. Ltd.(c) |
53,612 | 13,129,024 | ||||||
Ecopro Co. Ltd. |
21,662 | 20,600,820 | ||||||
F&F Co. Ltd./New |
19,801 | 1,540,849 | ||||||
GS Holdings Corp. |
52,036 | 1,476,932 | ||||||
Hana Financial Group Inc. |
324,603 | 9,699,990 | ||||||
Hankook Tire & Technology Co. Ltd. |
83,207 | 2,435,563 | ||||||
Hanmi Pharm Co. Ltd. |
7,807 | 1,738,599 | ||||||
Hanmi Semiconductor Co. Ltd. |
47,512 | 2,149,588 | ||||||
Hanon Systems |
215,014 | 1,480,408 | ||||||
Hanwha Aerospace Co. Ltd. |
38,347 | 3,303,563 | ||||||
Hanwha Solutions Corp.(a) |
115,132 | 3,168,981 | ||||||
HD Hyundai Co. Ltd. |
48,602 | 2,171,101 | ||||||
HD Hyundai Heavy Industries Co. Ltd.(a) |
24,345 | 2,405,671 | ||||||
HD Korea Shipbuilding & Offshore Engineering Co. Ltd.(a) |
47,522 | 4,443,742 | ||||||
HLB Inc.(a)(c) |
130,384 | 2,842,236 | ||||||
HMM Co. Ltd. |
273,881 | 3,447,818 | ||||||
Hotel Shilla Co. Ltd. |
35,093 | 2,337,695 | ||||||
HYBE Co. Ltd.(a) |
20,581 | 3,929,769 | ||||||
Hyundai Engineering & Construction Co. Ltd. |
87,266 | 2,340,646 | ||||||
Hyundai Glovis Co. Ltd. |
19,929 | 2,598,572 | ||||||
Hyundai Mipo Dockyard Co. Ltd.(a)(c) |
26,517 | 1,822,840 | ||||||
Hyundai Mobis Co. Ltd. |
67,205 | 11,732,983 | ||||||
Hyundai Motor Co. |
150,720 | 21,535,507 | ||||||
Hyundai Steel Co. |
94,534 | 2,584,972 | ||||||
Iljin Materials Co. Ltd. |
25,017 | 920,353 | ||||||
Industrial Bank of Korea |
304,127 | 2,474,132 | ||||||
JYP Entertainment Corp. |
30,803 | 2,614,788 | ||||||
Kakao Corp. |
341,031 | 12,376,716 | ||||||
Kakao Games Corp.(a)(c) |
41,349 | 888,286 | ||||||
Kakao Pay Corp.(a) |
29,144 | 994,559 | ||||||
KakaoBank Corp. |
185,781 | 3,695,495 | ||||||
Kangwon Land Inc. |
104,640 | 1,226,855 | ||||||
KB Financial Group Inc. |
420,279 | 17,120,572 | ||||||
Kia Corp. |
286,510 | 17,366,525 | ||||||
Korea Aerospace Industries Ltd.(c) |
81,026 | 3,094,672 | ||||||
Korea Electric Power Corp.(a) |
283,012 | 3,808,980 | ||||||
Korea Investment Holdings Co. Ltd. |
45,593 | 1,790,960 | ||||||
Korea Zinc Co. Ltd. |
8,703 | 3,465,128 | ||||||
Korean Air Lines Co. Ltd. |
206,188 | 3,550,753 | ||||||
Krafton Inc.(a) |
31,855 | 3,729,556 | ||||||
KT Corp. |
70,806 | 1,766,127 | ||||||
KT&G Corp. |
113,000 | 7,424,243 | ||||||
Kumho Petrochemical Co. Ltd. |
19,633 | 1,851,114 |
Security | Shares |
Value | ||||||
South Korea (continued) | ||||||||
L&F Co. Ltd.(c) |
27,846 | $ | 4,517,927 | |||||
LG Chem Ltd. |
54,149 | 23,842,227 | ||||||
LG Corp. |
103,583 | 6,426,098 | ||||||
LG Display Co. Ltd.(a) |
255,437 | 2,584,240 | ||||||
LG Electronics Inc. |
116,689 | 8,684,172 | ||||||
LG Energy Solution(a) |
51,293 | 21,081,749 | ||||||
LG H&H Co. Ltd. |
10,292 | 3,611,631 | ||||||
LG Innotek Co. Ltd. |
15,583 | 3,176,985 | ||||||
LG Uplus Corp. |
231,486 | 1,828,903 | ||||||
Lotte Chemical Corp. |
21,129 | 2,180,608 | ||||||
Meritz Financial Group Inc. |
115,318 | 4,765,542 | ||||||
Mirae Asset Securities Co. Ltd. |
308,236 | 1,551,433 | ||||||
NAVER Corp. |
143,834 | 23,282,720 | ||||||
NCSoft Corp. |
15,932 | 3,026,908 | ||||||
Netmarble Corp.(a)(b) |
24,233 | 784,591 | ||||||
NH Investment & Securities Co. Ltd. |
155,645 | 1,211,872 | ||||||
Orion Corp./Republic of Korea |
26,534 | 2,443,712 | ||||||
Pan Ocean Co. Ltd. |
293,540 | 989,384 | ||||||
Pearl Abyss Corp.(a) |
34,259 | 1,249,924 | ||||||
POSCO Future M Co. Ltd. |
33,959 | 11,525,833 | ||||||
POSCO Holdings Inc.(c) |
78,773 | 34,442,978 | ||||||
Posco International Corp.(c) |
55,494 | 3,322,897 | ||||||
Samsung Biologics Co. Ltd.(a)(b) |
19,500 | 10,863,875 | ||||||
Samsung C&T Corp. |
91,649 | 7,251,110 | ||||||
Samsung Electro-Mechanics Co. Ltd. |
61,495 | 6,288,665 | ||||||
Samsung Electronics Co. Ltd. |
5,232,540 | 264,642,241 | ||||||
Samsung Engineering Co. Ltd.(a) |
171,224 | 4,398,525 | ||||||
Samsung Fire & Marine Insurance Co. Ltd. |
33,959 | 6,325,907 | ||||||
Samsung Heavy Industries Co. Ltd.(a) |
724,864 | 4,826,874 | ||||||
Samsung Life Insurance Co. Ltd. |
87,871 | 4,491,168 | ||||||
Samsung SDI Co. Ltd. |
60,280 | 27,957,938 | ||||||
Samsung SDS Co. Ltd. |
41,788 | 4,484,656 | ||||||
Samsung Securities Co. Ltd. |
71,346 | 2,013,663 | ||||||
Shinhan Financial Group Co. Ltd. |
475,720 | 12,778,613 | ||||||
SK Biopharmaceuticals Co. Ltd.(a) |
34,542 | 2,236,620 | ||||||
SK Bioscience Co. Ltd.(a)(c) |
29,820 | 1,657,592 | ||||||
SK Hynix Inc.(c) |
598,321 | 55,015,694 | ||||||
SK IE Technology Co. Ltd.(a)(b) |
27,056 | 1,844,855 | ||||||
SK Inc. |
40,045 | 4,372,512 | ||||||
SK Innovation Co. Ltd.(a) |
61,776 | 8,286,079 | ||||||
SK Square Co. Ltd.(a) |
107,784 | 3,672,187 | ||||||
SKC Co. Ltd.(c) |
21,732 | 1,501,786 | ||||||
S-Oil Corp. |
51,230 | 2,829,638 | ||||||
Woori Financial Group Inc. |
668,035 | 6,010,000 | ||||||
Yuhan Corp. |
58,330 | 3,210,817 | ||||||
|
|
|||||||
873,459,297 | ||||||||
Taiwan — 21.2% | ||||||||
Accton Technology Corp. |
551,000 | 8,217,800 | ||||||
Acer Inc. |
3,154,000 | 3,616,311 | ||||||
Advantech Co. Ltd. |
514,280 | 5,534,337 | ||||||
Airtac International Group |
149,439 | 4,304,793 | ||||||
ASE Technology Holding Co. Ltd. |
3,370,000 | 12,473,274 | ||||||
Asia Cement Corp. |
2,427,000 | 3,040,153 | ||||||
Asustek Computer Inc. |
771,000 | 9,713,821 | ||||||
AUO Corp. |
7,442,800 | 4,156,152 | ||||||
Catcher Technology Co. Ltd. |
627,000 | 3,547,535 | ||||||
Cathay Financial Holding Co. Ltd. |
10,525,379 | 15,049,573 | ||||||
Chailease Holding Co. Ltd. |
1,685,595 | 9,396,194 | ||||||
Chang Hwa Commercial Bank Ltd. |
5,948,431 | 3,228,188 | ||||||
Cheng Shin Rubber Industry Co. Ltd. |
2,022,000 | 2,511,849 |
34 |
2 0 2 3 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (continued) August 31, 2023 |
iShares® MSCI Emerging Markets ex China ETF (Percentages shown are based on Net Assets) |
Security | Shares |
Value | ||||||
Taiwan (continued) | ||||||||
China Airlines Ltd. |
3,100,000 | $ | 2,197,176 | |||||
China Development Financial Holding Corp.(a) |
17,829,920 | 6,624,296 | ||||||
China Steel Corp. |
12,952,000 | 10,772,853 | ||||||
Chunghwa Telecom Co. Ltd. |
4,161,000 | 15,170,378 | ||||||
Compal Electronics Inc. |
4,770,000 | 4,762,585 | ||||||
CTBC Financial Holding Co. Ltd. |
19,318,000 | 14,438,728 | ||||||
Delta Electronics Inc. |
2,142,000 | 23,148,364 | ||||||
E Ink Holdings Inc. |
935,000 | 5,344,284 | ||||||
E.Sun Financial Holding Co. Ltd. |
15,681,336 | 12,026,185 | ||||||
Eclat Textile Co. Ltd. |
206,000 | 3,281,945 | ||||||
eMemory Technology Inc. |
71,000 | 4,022,135 | ||||||
Eva Airways Corp. |
2,795,000 | 2,758,388 | ||||||
Evergreen Marine Corp. Taiwan Ltd. |
1,081,400 | 3,611,366 | ||||||
Far Eastern New Century Corp. |
3,353,000 | 2,959,855 | ||||||
Far EasTone Telecommunications Co. Ltd. |
1,686,000 | 3,739,599 | ||||||
Feng TAY Enterprise Co. Ltd. |
514,760 | 2,709,173 | ||||||
First Financial Holding Co. Ltd. |
11,938,849 | 9,853,374 | ||||||
Formosa Chemicals & Fibre Corp. |
3,792,000 | 7,379,718 | ||||||
Formosa Petrochemical Corp. |
1,206,000 | 3,003,775 | ||||||
Formosa Plastics Corp. |
4,169,000 | 10,407,542 | ||||||
Fubon Financial Holding Co. Ltd. |
8,168,441 | 16,289,195 | ||||||
Giant Manufacturing Co. Ltd. |
317,620 | 1,949,690 | ||||||
Gigabyte Technology Co. Ltd. |
552,000 | 5,910,602 | ||||||
Global Unichip Corp. |
93,000 | 4,232,700 | ||||||
Globalwafers Co. Ltd. |
233,000 | 3,346,137 | ||||||
Hon Hai Precision Industry Co. Ltd. |
13,663,200 | 45,617,904 | ||||||
Hotai Motor Co. Ltd. |
328,572 | 6,988,903 | ||||||
Hua Nan Financial Holdings Co. Ltd. |
9,748,078 | 6,272,528 | ||||||
Innolux Corp. |
9,724,042 | 4,404,805 | ||||||
Inventec Corp. |
2,916,000 | 5,136,970 | ||||||
Largan Precision Co. Ltd. |
107,000 | 6,872,519 | ||||||
Lite-On Technology Corp. |
2,204,000 | 9,422,240 | ||||||
MediaTek Inc. |
1,670,000 | 36,829,263 | ||||||
Mega Financial Holding Co. Ltd. |
12,322,895 | 13,868,462 | ||||||
Micro-Star International Co. Ltd. |
779,000 | 3,895,433 | ||||||
momo.com Inc. |
90,420 | 1,474,814 | ||||||
Nan Ya Plastics Corp. |
5,223,000 | 10,839,742 | ||||||
Nan Ya Printed Circuit Board Corp. |
236,000 | 1,782,413 | ||||||
Nanya Technology Corp. |
1,359,000 | 2,831,707 | ||||||
Nien Made Enterprise Co. Ltd. |
188,000 | 1,761,964 | ||||||
Novatek Microelectronics Corp. |
619,000 | 7,738,054 | ||||||
Parade Technologies Ltd. |
78,000 | 2,189,889 | ||||||
Pegatron Corp. |
2,144,000 | 5,242,866 | ||||||
PharmaEssentia Corp.(a) |
260,000 | 2,919,835 | ||||||
Pou Chen Corp. |
2,435,000 | 2,184,847 | ||||||
Powerchip Semiconductor Manufacturing Corp. |
3,181,000 | 2,774,222 | ||||||
President Chain Store Corp. |
612,000 | 5,131,960 | ||||||
Quanta Computer Inc. |
2,960,000 | 23,463,167 | ||||||
Realtek Semiconductor Corp. |
528,000 | 6,900,090 | ||||||
Ruentex Development Co. Ltd.(a) |
1,867,600 | 2,157,577 | ||||||
Shanghai Commercial & Savings Bank Ltd. (The) |
4,213,678 | 5,635,741 | ||||||
Shin Kong Financial Holding Co. Ltd.(a) |
14,403,897 | 4,277,987 | ||||||
Silergy Corp. |
355,000 | 3,173,681 | ||||||
SinoPac Financial Holdings Co. Ltd. |
11,541,201 | 6,194,701 | ||||||
Synnex Technology International Corp. |
1,315,000 | 2,520,417 | ||||||
Taishin Financial Holding Co. Ltd. |
12,310,336 | 6,872,848 | ||||||
Taiwan Business Bank |
6,809,064 | 2,849,216 | ||||||
Taiwan Cement Corp. |
7,065,671 | 7,746,223 | ||||||
Taiwan Cooperative Financial Holding Co. Ltd. |
11,304,961 | 9,316,268 | ||||||
Taiwan High Speed Rail Corp. |
2,121,000 | 1,979,232 |
Security | Shares |
Value | ||||||
Taiwan (continued) | ||||||||
Taiwan Mobile Co. Ltd. |
1,894,000 | $ | 5,541,067 | |||||
Taiwan Semiconductor Manufacturing Co. Ltd. |
26,982,000 | 463,630,383 | ||||||
Unimicron Technology Corp. |
1,499,000 | 8,673,632 | ||||||
Uni-President Enterprises Corp. |
5,283,000 | 11,713,551 | ||||||
United Microelectronics Corp. |
12,375,000 | 17,668,385 | ||||||
Vanguard International Semiconductor Corp. |
985,000 | 2,106,050 | ||||||
Voltronic Power Technology Corp. |
69,000 | 3,131,739 | ||||||
Walsin Lihwa Corp. |
3,112,473 | 3,701,673 | ||||||
Wan Hai Lines Ltd. |
711,015 | 1,009,255 | ||||||
Winbond Electronics Corp.(a) |
3,216,000 | 2,648,547 | ||||||
Wistron Corp. |
2,855,000 | 10,437,460 | ||||||
Wiwynn Corp. |
96,000 | 4,678,509 | ||||||
WPG Holdings Ltd. |
1,697,520 | 2,921,168 | ||||||
Yageo Corp. |
365,858 | 5,557,844 | ||||||
Yang Ming Marine Transport Corp. |
1,834,000 | 2,429,207 | ||||||
Yuanta Financial Holding Co. Ltd. |
11,131,412 | 8,517,457 | ||||||
Zhen Ding Technology Holding Ltd. |
710,000 | 2,149,422 | ||||||
|
|
|||||||
1,090,513,860 | ||||||||
Thailand — 2.9% | ||||||||
Advanced Info Service PCL, NVDR |
1,289,900 | 7,952,235 | ||||||
Airports of Thailand PCL, NVDR(a) |
4,720,700 | 9,769,718 | ||||||
Asset World Corp. PCL, NVDR |
9,959,100 | 1,239,009 | ||||||
B Grimm Power PCL, NVDR |
1,094,200 | 1,062,565 | ||||||
Bangkok Dusit Medical Services PCL, NVDR |
12,004,900 | 9,596,030 | ||||||
Bangkok Expressway & Metro PCL, NVDR |
8,456,500 | 2,088,620 | ||||||
Banpu PCL, NVDR |
8,420,900 | 2,066,635 | ||||||
Berli Jucker PCL, NVDR |
1,098,800 | 1,058,437 | ||||||
BTS Group Holdings PCL, NVDR |
9,248,200 | 1,940,179 | ||||||
Bumrungrad Hospital PCL, NVDR |
671,100 | 4,961,122 | ||||||
Central Pattana PCL, NVDR |
2,198,000 | 4,312,032 | ||||||
Central Retail Corp. PCL, NVDR |
2,003,400 | 2,356,815 | ||||||
Charoen Pokphand Foods PCL, NVDR(c) |
4,247,700 | 2,510,687 | ||||||
CP ALL PCL, NVDR |
6,489,200 | 12,083,576 | ||||||
CP Axtra PCL(c) |
2,323,300 | 2,403,023 | ||||||
Delta Electronics Thailand PCL, NVDR(c) |
3,419,500 | 10,582,809 | ||||||
Electricity Generating PCL, NVDR |
259,000 | 986,374 | ||||||
Energy Absolute PCL, NVDR(c) |
1,906,400 | 3,442,293 | ||||||
Global Power Synergy PCL, NVDR |
780,500 | 1,174,418 | ||||||
Gulf Energy Development PCL, NVDR(c) |
3,310,200 | 4,535,651 | ||||||
Home Product Center PCL, NVDR |
6,499,200 | 2,540,553 | ||||||
Indorama Ventures PCL, NVDR |
1,984,600 | 1,642,490 | ||||||
Intouch Holdings PCL, NVDR |
1,012,150 | 2,101,707 | ||||||
Kasikornbank PCL, NVDR |
644,600 | 2,401,222 | ||||||
Krung Thai Bank PCL, NVDR |
4,094,900 | 2,255,781 | ||||||
Krungthai Card PCL, NVDR |
1,015,800 | 1,406,110 | ||||||
Land & Houses PCL, NVDR |
9,204,400 | 2,180,737 | ||||||
Minor International PCL, NVDR |
3,708,300 | 3,518,533 | ||||||
Muangthai Capital PCL, NVDR |
750,900 | 872,727 | ||||||
Osotspa PCL, NVDR |
1,518,700 | 1,300,629 | ||||||
PTT Exploration & Production PCL, NVDR |
1,534,400 | 6,946,577 | ||||||
PTT Global Chemical PCL, NVDR |
2,464,800 | 2,619,208 | ||||||
PTT Oil & Retail Business PCL, NVDR |
3,437,400 | 2,001,611 | ||||||
PTT Public Company Ltd., NVDR |
11,119,000 | 11,032,064 | ||||||
Ratch Group PCL, NVDR |
1,192,600 | 1,209,022 | ||||||
SCB X PCL, NVS |
929,300 | 3,129,755 | ||||||
SCG Packaging PCL, NVDR |
1,493,900 | 1,747,979 | ||||||
Siam Cement PCL (The), NVDR |
869,800 | 7,770,629 | ||||||
Thai Oil PCL, NVDR |
1,348,700 | 1,983,611 | ||||||
TMBThanachart Bank PCL, NVDR |
26,506,200 | 1,294,370 |
S C H E D U L E O F I N V E S T M E N T S |
35 |
Schedule of Investments (continued) August 31, 2023 |
iShares® MSCI Emerging Markets ex China ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
|
||||||||
Thailand (continued) | ||||||||
True Corp. PCL |
11,155,782 | $ | 2,196,137 | |||||
|
|
|||||||
148,273,680 | ||||||||
Turkey — 1.0% | ||||||||
Akbank TAS |
3,431,355 | 3,691,273 | ||||||
Aselsan Elektronik Sanayi Ve Ticaret AS |
1,596,210 | 2,294,491 | ||||||
BIM Birlesik Magazalar AS |
501,698 | 4,735,715 | ||||||
Eregli Demir ve Celik Fabrikalari TAS(a) |
1,558,160 | 2,504,145 | ||||||
Ford Otomotiv Sanayi AS |
78,591 | 2,537,419 | ||||||
Haci Omer Sabanci Holding AS |
1,120,461 | 2,505,238 | ||||||
Hektas Ticaret TAS(a) |
1,267,319 | 1,215,036 | ||||||
KOC Holding AS |
842,485 | 4,470,354 | ||||||
Koza Altin Isletmeleri AS |
1,020,764 | 1,085,771 | ||||||
Pegasus Hava Tasimaciligi AS(a) |
51,271 | 1,677,273 | ||||||
Sasa Polyester Sanayi AS(a) |
1,163,301 | 2,296,540 | ||||||
Tofas Turk Otomobil Fabrikasi AS |
123,877 | 1,250,152 | ||||||
Turk Hava Yollari AO(a) |
604,215 | 5,535,085 | ||||||
Turkcell Iletisim Hizmetleri AS |
1,327,986 | 2,769,411 | ||||||
Turkiye Is Bankasi AS, Class C |
3,863,685 | 3,041,682 | ||||||
Turkiye Petrol Rafinerileri AS |
1,074,106 | 5,668,733 | ||||||
Turkiye Sise ve Cam Fabrikalari AS |
1,518,315 | 2,908,642 | ||||||
Yapi ve Kredi Bankasi AS |
3,710,865 | 2,203,977 | ||||||
|
|
|||||||
52,390,937 | ||||||||
United Arab Emirates — 1.9% | ||||||||
Abu Dhabi Commercial Bank PJSC |
3,248,038 | 7,631,519 | ||||||
Abu Dhabi Islamic Bank PJSC |
1,597,638 | 4,532,368 | ||||||
Abu Dhabi National Oil Co. for Distribution PJSC |
3,496,483 | 3,626,899 | ||||||
Aldar Properties PJSC |
4,222,174 | 6,043,547 | ||||||
Americana Restaurants International PLC |
2,713,260 | 3,257,685 | ||||||
Dubai Islamic Bank PJSC |
3,153,941 | 4,842,082 | ||||||
Emaar Properties PJSC |
7,235,686 | 13,905,249 | ||||||
Emirates NBD Bank PJSC |
2,076,501 | 9,239,939 | ||||||
Emirates Telecommunications Group Co. PJSC |
3,811,525 | 20,588,254 | ||||||
First Abu Dhabi Bank PJSC |
4,841,894 | 18,029,045 | ||||||
Multiply Group(a) |
4,248,781 | 4,404,974 | ||||||
|
|
|||||||
|
96,101,561 |
| ||||||
|
|
|||||||
Total
Common Stocks — 96.6% |
4,972,096,828 | |||||||
|
|
|||||||
Preferred Stocks | ||||||||
Brazil — 2.0% | ||||||||
Banco Bradesco SA, Preference Shares, NVS |
5,823,696 | 17,581,457 | ||||||
Centrais
Eletricas Brasileiras SA, Class B, |
276,694 | 2,164,583 | ||||||
Cia.
Energetica de Minas Gerais, |
1,529,073 | 3,807,205 | ||||||
Gerdau SA, Preference Shares, NVS |
1,283,274 | 6,698,768 | ||||||
Itau
Unibanco Holding SA, Preference |
5,327,225 | 29,508,139 | ||||||
Itausa SA, Preference Shares, NVS |
5,587,937 | 10,426,498 | ||||||
Petroleo Brasileiro SA, Preference Shares, NVS |
5,225,622 | 33,704,500 | ||||||
|
|
|||||||
|
103,891,150 |
| ||||||
Chile — 0.2% | ||||||||
Sociedad Quimica y Minera de Chile SA, Class B, Preference Shares |
156,912 | 9,717,680 | ||||||
|
|
|||||||
Colombia — 0.1% | ||||||||
Bancolombia SA, Preference Shares, NVS |
505,531 | 3,361,555 | ||||||
|
|
Security | Shares | Value | ||||||
|
||||||||
Russia — 0.0% | ||||||||
Surgutneftegas
PJSC, Preference |
3,036,700 | $ | 317 | |||||
|
|
|||||||
South Korea — 0.8% | ||||||||
Hyundai Motor Co. |
||||||||
Preference Shares, NVS |
25,498 | 1,962,292 | ||||||
Series 2, Preference Shares, NVS |
39,883 | 3,138,600 | ||||||
LG Chem Ltd., Preference Shares, NVS |
7,850 | 2,026,017 | ||||||
Samsung
Electronics Co. Ltd., |
901,835 | 36,812,864 | ||||||
|
|
|||||||
43,939,773 | ||||||||
|
|
|||||||
Total
Preferred Stocks — 3.1% |
160,910,475 | |||||||
|
|
|||||||
Rights |
||||||||
Brazil — 0.0% | ||||||||
Itausa
SA, (Expires 09/29/23, Strike |
76,437 | 42,756 | ||||||
|
|
|||||||
South Korea — 0.0% | ||||||||
SK
Innovation Co. Ltd., (Expires 09/19/23, |
4,250 | 121,705 | ||||||
|
|
|||||||
Total
Rights — 0.0% |
164,461 | |||||||
|
|
|||||||
Total
Long-Term Investments — 99.7% |
5,133,171,764 | |||||||
|
|
|||||||
Short-Term Securities |
||||||||
Money Market Funds — 0.8% | ||||||||
BlackRock
Cash Funds: Institutional, |
40,010,331 | 40,022,334 | ||||||
|
|
|||||||
Total
Short-Term Securities — 0.8% |
40,022,334 | |||||||
|
|
|||||||
Total
Investments — 100.5% |
5,173,194,098 | |||||||
Liabilities in Excess of Other Assets — (0.5)% |
(26,093,360 | ) | ||||||
|
|
|||||||
Net Assets — 100.0% |
$ | 5,147,100,738 | ||||||
|
|
(a) |
Non-income producing security. |
(b) |
Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
(c) |
All or a portion of this security is on loan. |
(d) |
Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. |
(e) |
This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933. |
(f) |
Affiliate of the Fund. |
(g) |
Annualized 7-day yield as of period end. |
(h) |
All or a portion of this security was purchased with the cash collateral from loaned securities. |
36 |
2 0 2 3 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (continued) August 31, 2023 |
iShares® MSCI Emerging Markets ex China ETF |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the year ended August 31, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Issuer | Value at 08/31/22 |
Purchases at Cost |
Proceeds from Sale |
Net Realized Gain (Loss) |
Change
in |
Value at 08/31/23 |
Shares Held at 08/31/23 |
Income |
Capital Gain |
|||||||||||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares |
$ | 16,624,717 | $ | 23,388,790 | (a)$ | — | $ | 12,731 | $ | (3,904 | ) | $ | 40,022,334 | 40,010,331 | $ | 419,077 | (b) | $ | — | |||||||||||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares(c) |
4,900,000 | — | (4,900,000 | )(a) | — | — | — | — | 153,469 | 17 | ||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||
$
|
12,731
|
|
$
|
(3,904
|
)
|
$
|
40,022,334
|
|
$
|
572,546
|
|
$
|
17
|
|
||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(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. |
(c) |
As of period end, the entity is no longer held. |
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 |
|
214
|
|
|
09/15/23
|
|
$
|
10,479
|
|
$
|
54,091
|
| ||||
|
|
Derivative Financial Instruments Categorized by Risk Exposure
As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Commodity Contracts |
Credit Contracts |
Equity Contracts |
Foreign Currency Exchange Contracts |
Interest Rate Contracts |
Other Contracts |
Total | ||||||||||||||||||||||
Assets — Derivative Financial Instruments |
||||||||||||||||||||||||||||
Futures contracts |
||||||||||||||||||||||||||||
Unrealized appreciation on futures contracts(a) |
$ | — | $ | — | $ | 54,091 | $ | — | $ | — | $ | — | $ | 54,091 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:
Commodity Contracts |
Credit Contracts |
Equity Contracts |
Foreign Currency Exchange Contracts |
Interest Rate Contracts |
Other Contracts |
Total | ||||||||||||||||||||||
Net Realized Gain (Loss) from |
||||||||||||||||||||||||||||
Futures contracts |
$ | — | $ | — | $ | (529,822 | ) | $ | — | $ | — | $ | — | $ | (529,822 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on |
||||||||||||||||||||||||||||
Futures contracts |
$ | — | $ | — | $ | 333,086 | $ | — | $ | — | $ | — | $ | 333,086 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
|
||||
Futures contracts: |
||||
Average notional value of contracts — long |
$ | 8,851,303 | ||
|
S C H E D U L E O F I N V E S T M E N T S |
37 |
Schedule of Investments (continued) August 31, 2023
|
iShares® MSCI Emerging Markets ex China ETF |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||||||||||||||
Assets |
||||||||||||||||||||||||||||
Investments |
||||||||||||||||||||||||||||
Long-Term Investments |
||||||||||||||||||||||||||||
Common Stocks |
$ | 801,145,182 | $ | 4,170,947,258 | $ | 4,388 | $ | 4,972,096,828 | ||||||||||||||||||||
Preferred Stocks |
116,970,385 | 43,939,773 | 317 | 160,910,475 | ||||||||||||||||||||||||
Rights |
164,461 | — | — | 164,461 | ||||||||||||||||||||||||
Short-Term Securities |
||||||||||||||||||||||||||||
Money Market Funds |
40,022,334 | — | — | 40,022,334 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||
$ | 958,302,362 | $ | 4,214,887,031 | $ | 4,705 | $ | 5,173,194,098 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Derivative Financial Instruments(a) |
||||||||||||||||||||||||||||
Assets |
||||||||||||||||||||||||||||
Equity Contracts |
$ | 54,091 | $ | — | $ | — | $ | 54,091 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
(a) |
Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument. |
See notes to financial statements.
38 |
2 0 2 3 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments August 31, 2023 |
iShares® MSCI Emerging Markets Min Vol Factor ETF (Percentages shown are based on Net Assets) |
Security | Shares |
Value | ||||||
Common Stocks |
||||||||
Brazil — 0.2% | ||||||||
Equatorial Energia SA |
454,498 | $ | 2,905,747 | |||||
Raia Drogasil SA |
1,078,224 | 5,983,299 | ||||||
|
|
|||||||
8,889,046 | ||||||||
Chile — 0.1% | ||||||||
Enel Americas SA(a) |
25,250,335 | 3,000,785 | ||||||
|
|
|||||||
China — 23.0% | ||||||||
360 Security Technology Inc., Class A(a) |
4,601,000 | 7,056,341 | ||||||
Agricultural Bank of China Ltd., Class H |
171,477,000 | 58,774,519 | ||||||
Anhui Gujing Distillery Co. Ltd., Class B |
1,524,543 | 25,361,260 | ||||||
Anjoy Foods Group Co. Ltd., Class A |
172,900 | 3,107,020 | ||||||
ANTA Sports Products Ltd. |
396,800 | 4,473,207 | ||||||
Asia - Potash International Investment Guangzhou Co. Ltd.(a) |
779,171 | 2,994,699 | ||||||
Bank of China Ltd., Class H |
165,673,000 | 56,149,402 | ||||||
Bank of Communications Co. Ltd., Class A |
19,775,574 | 15,088,203 | ||||||
Bank of Communications Co. Ltd., Class H |
12,828,000 | 7,342,111 | ||||||
Bank of Ningbo Co. Ltd., Class A |
618,856 | 2,224,724 | ||||||
Bank of Shanghai Co. Ltd., Class A |
4,629,811 | 3,785,100 | ||||||
Beijing
Capital International Airport Co. Ltd., |
16,568,000 | 8,675,405 | ||||||
Beijing Kingsoft Office Software Inc., Class A |
37,800 | 2,049,280 | ||||||
Beijing Tiantan Biological Products Corp. Ltd., Class A |
873,500 | 3,012,149 | ||||||
Beijing-Shanghai High Speed Railway Co. Ltd., Class A |
15,496,900 | 10,871,969 | ||||||
BGI Genomics Co. Ltd., Class A |
354,100 | 2,611,375 | ||||||
BOE Technology Group Co. Ltd., Class A |
26,840,800 | 14,781,613 | ||||||
Cambricon Technologies Corp. Ltd.(a) |
83,470 | 1,826,316 | ||||||
CGN Power Co. Ltd., Class H(b) |
65,033,000 | 16,250,418 | ||||||
Changchun High & New Technology Industry Group Inc., Class A |
105,600 | 1,998,463 | ||||||
China CITIC Bank Corp. Ltd., Class H |
45,356,000 | 20,186,527 | ||||||
China Construction Bank Corp., Class A |
7,650,584 | 6,310,389 | ||||||
China Construction Bank Corp., Class H |
46,769,000 | 25,023,793 | ||||||
China Eastern Airlines Corp. Ltd., Class A(a) |
4,417,700 | 2,637,234 | ||||||
China Huishan Dairy Holdings Co. Ltd.(c) |
5,944,807 | 8 | ||||||
China Life Insurance Co. Ltd., Class H |
9,124,000 | 13,828,705 | ||||||
China Mengniu Dairy Co. Ltd. |
2,462,000 | 8,278,393 | ||||||
China Minsheng Banking Corp. Ltd., Class A |
16,665,554 | 8,652,124 | ||||||
China Petroleum & Chemical Corp., Class H |
11,424,000 | 6,679,681 | ||||||
China Railway Signal & Communication Corp. Ltd., Class A |
6,040,800 | 4,659,722 | ||||||
China Resources Beer Holdings Co. Ltd. |
872,000 | 5,119,813 | ||||||
China Resources Microelectronics Ltd. |
537,278 | 4,321,380 | ||||||
China Resources Pharmaceutical Group Ltd.(b) |
2,581,500 | 1,723,266 | ||||||
China Shenhua Energy Co. Ltd., Class H |
2,188,000 | 6,368,206 | ||||||
China Southern Airlines Co. Ltd., Class H(a) |
7,144,000 | 3,795,013 | ||||||
China Tourism Group Duty Free Corp. Ltd., Class A |
531,063 | 7,961,780 | ||||||
China Tower Corp. Ltd., Class H(b) |
260,840,000 | 25,236,790 | ||||||
China United Network Communications Ltd., Class A |
17,810,835 | 12,771,516 | ||||||
China Yangtze Power Co. Ltd., Class A |
11,315,683 | 34,319,457 | ||||||
China Zhenhua Group Science & Technology Co. Ltd., Class A |
177,478 | 2,235,119 | ||||||
Chongqing Rural Commercial Bank Co. Ltd., Class A |
7,415,200 | 3,832,735 |
Security | Shares |
Value | ||||||
China (continued) | ||||||||
Chongqing Zhifei Biological Products Co. Ltd., Class A |
801,600 | $ | 4,861,647 | |||||
Chow Tai Fook Jewellery Group Ltd. |
3,665,000 | 5,557,470 | ||||||
CSPC Pharmaceutical Group Ltd. |
7,498,000 | 5,635,555 | ||||||
ENN Energy Holdings Ltd. |
356,600 | 2,797,746 | ||||||
Foshan Haitian Flavouring & Food Co. Ltd., Class A |
423,065 | 2,277,438 | ||||||
Fuyao Glass Industry Group Co. Ltd., Class A |
481,103 | 2,513,510 | ||||||
Gree Electric Appliances Inc. of Zhuhai, Class A |
1,030,806 | 5,069,907 | ||||||
Guangdong Haid Group Co. Ltd., Class A |
1,291,072 | 8,554,165 | ||||||
Guangdong Investment Ltd. |
7,454,000 | 5,818,771 | ||||||
Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd., Class A |
1,173,294 | 4,986,540 | ||||||
Guangzhou Haige Communications Group Inc. Co., Class A |
2,070,900 | 3,011,976 | ||||||
Guangzhou Kingmed Diagnostics Group Co. Ltd., Class A |
386,273 | 3,174,112 | ||||||
Hainan Airlines Holding Co. Ltd., Class A |
32,001,400 | 6,869,366 | ||||||
Hainan Airport Infrastructure Co. Ltd., NVS |
3,786,300 | 2,086,621 | ||||||
Hansoh Pharmaceutical Group Co. Ltd.(b) |
1,530,000 | 1,987,935 | ||||||
Hengan International Group Co. Ltd. |
3,456,000 | 12,819,538 | ||||||
Hualan Biological Engineering Inc., Class A |
957,810 | 2,794,274 | ||||||
Huaxia Bank Co. Ltd., Class A |
7,398,003 | 5,631,690 | ||||||
Hundsun Technologies Inc., Class A |
1,017,971 | 5,036,384 | ||||||
Iflytek Co. Ltd., Class A |
1,292,167 | 9,723,605 | ||||||
Imeik Technology Development Co. Ltd., Class A |
44,500 | 2,682,571 | ||||||
Industrial & Commercial Bank of China Ltd., Class A |
3,825,000 | 2,428,020 | ||||||
Industrial & Commercial Bank of China Ltd., Class H |
92,385,000 | 42,356,420 | ||||||
Ingenic Semiconductor Co. Ltd., Class A |
201,200 | 2,039,609 | ||||||
Inner Mongolia Yitai Coal Co. Ltd., Class B(a) |
2,176,918 | 2,900,249 | ||||||
JA Solar Technology Co. Ltd., Class A |
557,700 | 2,132,038 | ||||||
Jiangsu Expressway Co. Ltd., Class H |
15,946,000 | 14,400,289 | ||||||
Jiangsu Hengrui Medicine Co. Ltd., Class A |
2,042,166 | 11,740,539 | ||||||
Jointown Pharmaceutical Group Co. Ltd., Class A |
2,215,506 | 3,144,721 | ||||||
Kweichow Moutai Co. Ltd., Class A |
41,190 | 10,470,668 | ||||||
Legend Biotech Corp., ADR(a)(d) |
132,969 | 9,222,730 | ||||||
Lenovo Group Ltd. |
7,134,000 | 8,063,745 | ||||||
Liaoning Port Co Ltd., Class A |
16,403,600 | 3,560,634 | ||||||
Lingyi iTech Guangdong Co., Class A |
5,901,700 | 4,869,569 | ||||||
LONGi Green Energy Technology Co. Ltd., Class A |
489,640 | 1,789,562 | ||||||
Muyuan Foods Co. Ltd., Class A |
695,200 | 3,873,767 | ||||||
NavInfo Co. Ltd., Class A(a) |
1,406,600 | 1,991,835 | ||||||
Nongfu Spring Co. Ltd., Class H(b) |
5,368,400 | 30,151,109 | ||||||
People’s Insurance Co. Group of China Ltd. (The), Class H |
95,011,000 | 32,340,146 | ||||||
PetroChina Co. Ltd., Class A |
3,941,800 | 4,201,576 | ||||||
PICC Property & Casualty Co. Ltd., Class H |
5,074,000 | 5,834,889 | ||||||
Postal Savings Bank of China Co. Ltd., Class H(b) |
41,288,000 | 20,364,489 | ||||||
Qi An Xin Technology Group Inc.(a) |
391,342 | 2,881,247 | ||||||
Sangfor Technologies Inc., Class A(a) |
185,200 | 2,778,927 | ||||||
SDIC Power Holdings Co. Ltd., Class A |
1,811,600 | 3,164,359 | ||||||
SF Holding Co. Ltd., Class A |
914,600 | 5,462,145 | ||||||
Shandong Gold Mining Co. Ltd., Class A |
1,339,673 | 4,795,572 | ||||||
Shandong Gold Mining Co. Ltd., Class H(b)(d) |
7,065,500 | 14,227,778 | ||||||
Shanghai Aiko Solar Energy Co. Ltd. |
759,060 | 2,315,677 | ||||||
Shanghai Baosight Software Co. Ltd., Class B |
8,455,341 | 19,207,525 | ||||||
Shanghai Friendess Electronic Technology Corp. Ltd., Class A |
83,335 | 3,015,800 | ||||||
Shanghai International Airport Co. Ltd., Class A(a) |
449,900 | 2,428,296 |
S C H E D U L E O F I N V E S T M E N T S |
39 |
Schedule of Investments (continued) August 31, 2023 |
iShares® MSCI Emerging Markets Min Vol Factor ETF (Percentages shown are based on Net Assets) |
Security | Shares |
Value | ||||||
China (continued) | ||||||||
Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd., Class B |
6,320,294 | $ | 2,594,948 | |||||
Shanghai M&G Stationery Inc., Class A |
451,048 | 2,333,940 | ||||||
Shanghai Pharmaceuticals Holding Co. Ltd., Class H |
3,750,900 | 6,167,000 | ||||||
Shanghai Pudong Development Bank Co. Ltd., Class A |
4,349,786 | 4,175,141 | ||||||
Shanghai RAAS Blood Products Co. Ltd., Class A |
5,663,000 | 5,537,723 | ||||||
Shanxi Xinghuacun Fen Wine Factory Co. Ltd., Class A |
198,400 | 6,602,201 | ||||||
Shenzhen Mindray Bio-Medical Electronics Co. Ltd., Class A |
157,200 | 5,838,057 | ||||||
Shenzhen Salubris Pharmaceuticals Co. Ltd., Class A |
706,472 | 2,682,832 | ||||||
Sichuan Chuantou Energy Co. Ltd., Class A |
2,881,810 | 5,923,559 | ||||||
Sino Biopharmaceutical Ltd.(d) |
13,379,000 | 5,078,513 | ||||||
Sinopec Shanghai Petrochemical Co. Ltd., Class A(a) |
4,953,767 | 2,061,400 | ||||||
Sinopharm Group Co. Ltd., Class H |
6,685,600 | 19,401,095 | ||||||
Songcheng Performance Development Co. Ltd., Class A |
1,386,585 | 2,365,453 | ||||||
TCL Technology Group Corp., Class A(a) |
4,819,750 | 2,713,127 | ||||||
TCL Zhonghuan Renewable Energy Technology Co. Ltd., Class A |
1,215,258 | 4,276,071 | ||||||
Thunder Software Technology Co. Ltd., Class A |
199,600 | 2,189,365 | ||||||
Tianjin 712 Communication & Broadcasting Co. Ltd., Class A |
643,194 | 2,352,875 | ||||||
Tianshui Huatian Technology Co. Ltd., Class A |
1,819,100 | 2,245,169 | ||||||
Tingyi Cayman Islands Holding Corp. |
8,146,000 | 11,960,757 | ||||||
Tongwei Co. Ltd., Class A |
1,103,900 | 4,864,968 | ||||||
TravelSky Technology Ltd., Class H |
1,770,000 | 3,169,060 | ||||||
Uni-President China Holdings Ltd. |
2,659,000 | 1,966,528 | ||||||
Walvax Biotechnology Co. Ltd., Class A |
700,691 | 2,274,083 | ||||||
Want Want China Holdings Ltd. |
14,610,000 | 9,662,912 | ||||||
Wintime Energy Group Co. Ltd., NVS |
26,642,800 | 5,346,473 | ||||||
Wuliangye Yibin Co. Ltd., Class A |
203,749 | 4,365,045 | ||||||
Xinjiang Daqo New Energy Co. Ltd. |
1,476,435 | 8,423,449 | ||||||
Yealink Network Technology Corp. Ltd., Class A |
1,042,424 | 5,301,628 | ||||||
Yonyou Network Technology Co. Ltd., Class A |
829,200 | 2,068,715 | ||||||
Yum China Holdings Inc. |
215,501 | 11,570,249 | ||||||
Yunnan Baiyao Group Co. Ltd., Class A |
327,958 | 2,463,185 | ||||||
Zhefu Holding Group Co. Ltd., Class A |
4,502,500 | 2,442,805 | ||||||
Zhejiang Dahua Technology Co. Ltd., Class A |
1,235,800 | 3,666,364 | ||||||
Zhejiang Expressway Co. Ltd., Class H |
7,746,000 | 5,784,190 | ||||||
Zhejiang Jiuzhou Pharmaceutical Co. Ltd., Class A |
722,163 | 2,699,724 | ||||||
Zhejiang Supor Co. Ltd., Class A |
345,004 | 2,256,671 | ||||||
Zhejiang Zheneng Electric Power Co. Ltd., Class A(a) |
3,397,100 | 2,055,973 | ||||||
Zhongji Innolight Co. Ltd., Class A |
431,400 | 6,794,346 | ||||||
ZTE Corp., Class A |
3,126,820 | 15,219,773 | ||||||
|
|
|||||||
1,033,315,343 | ||||||||
Czech Republic — 0.2% | ||||||||
CEZ AS |
244,263 | 10,399,649 | ||||||
|
|
|||||||
Egypt — 0.2% | ||||||||
Commercial International Bank Egypt SAE |
7,098,707 | 9,863,787 | ||||||
|
|
|||||||
Greece — 0.7% | ||||||||
Hellenic Telecommunications Organization SA(d) |
1,211,735 | 18,108,458 |
Security | Shares |
Value | ||||||
Greece (continued) | ||||||||
JUMBO SA |
435,993 | $ | 13,483,379 | |||||
|
|
|||||||
31,591,837 | ||||||||
Hungary — 0.1% | ||||||||
Richter Gedeon Nyrt |
98,590 | 2,474,288 | ||||||
|
|
|||||||
India — 16.0% | ||||||||
ABB India Ltd. |
108,299 | 5,727,695 | ||||||
Adani Green Energy Ltd.(a) |
211,116 | 2,368,182 | ||||||
Apollo Hospitals Enterprise Ltd. |
73,518 | 4,271,829 | ||||||
Asian Paints Ltd. |
604,732 | 23,775,425 | ||||||
Bajaj Auto Ltd. |
374,939 | 20,877,913 | ||||||
Bharti Airtel Ltd. |
4,681,242 | 48,399,568 | ||||||
Britannia Industries Ltd. |
350,983 | 18,939,065 | ||||||
Cipla Ltd. |
1,903,817 | 28,895,529 | ||||||
Colgate-Palmolive India Ltd. |
178,696 | 4,189,402 | ||||||
Dabur India Ltd. |
3,774,762 | 25,197,223 | ||||||
Divi’s Laboratories Ltd. |
265,196 | 11,495,938 | ||||||
Dr. Reddy’s Laboratories Ltd. |
408,629 | 27,641,551 | ||||||
Eicher Motors Ltd. |
100,661 | 4,054,862 | ||||||
HCL Technologies Ltd. |
3,063,598 | 43,339,638 | ||||||
Hero MotoCorp Ltd. |
168,603 | 5,935,156 | ||||||
Hindustan Unilever Ltd. |
1,281,252 | 38,757,670 | ||||||
Indian Hotels Co. Ltd. (The), Class A |
1,361,951 | 6,918,238 | ||||||
Infosys Ltd. |
1,919,090 | 33,256,214 | ||||||
Jio Financial Services Ltd., NVS(a) |
549,678 | 1,550,376 | ||||||
Kotak Mahindra Bank Ltd. |
210,234 | 4,461,138 | ||||||
Lupin Ltd. |
1,013,957 | 13,437,070 | ||||||
Marico Ltd. |
3,760,078 | 25,873,352 | ||||||
Maruti Suzuki India Ltd. |
70,806 | 8,550,644 | ||||||
Max Healthcare Institute Ltd.(a) |
2,308,935 | 16,451,009 | ||||||
Mphasis Ltd. |
147,348 | 4,318,197 | ||||||
MRF Ltd. |
20,952 | 27,496,489 | ||||||
Nestle India Ltd. |
62,106 | 16,486,314 | ||||||
Page Industries Ltd. |
33,461 | 16,220,057 | ||||||
Petronet LNG Ltd. |
1,265,820 | 3,289,035 | ||||||
Pidilite Industries Ltd. |
879,592 | 26,708,366 | ||||||
Reliance Industries Ltd. |
557,860 | 16,206,410 | ||||||
Siemens Ltd. |
187,309 | 8,868,713 | ||||||
Sun Pharmaceutical Industries Ltd. |
1,898,218 | 25,443,842 | ||||||
Tata Consultancy Services Ltd. |
1,326,707 | 53,736,785 | ||||||
Tech Mahindra Ltd. |
1,278,627 | 18,539,517 | ||||||
Titan Co. Ltd. |
635,736 | 23,821,789 | ||||||
Torrent Pharmaceuticals Ltd. |
890,025 | 19,811,031 | ||||||
Trent Ltd. |
324,916 | 8,037,011 | ||||||
Tube Investments of India Ltd. |
75,279 | 2,635,173 | ||||||
UltraTech Cement Ltd. |
33,715 | 3,377,737 | ||||||
Wipro Ltd. |
4,563,503 | 22,478,819 | ||||||
|
|
|||||||
721,839,972 | ||||||||
Indonesia — 1.3% | ||||||||
Bank Central Asia Tbk PT |
58,025,100 | 34,931,418 | ||||||
Telkom Indonesia Persero Tbk PT |
89,940,900 | 21,985,035 | ||||||
|
|
|||||||
56,916,453 | ||||||||
Kuwait — 2.5% | ||||||||
Kuwait Finance House KSCP |
10,108,787 | 24,422,895 | ||||||
Mobile Telecommunications Co. KSCP |
21,354,337 | 35,322,810 | ||||||
National Bank of Kuwait SAKP |
18,016,638 | 53,764,161 | ||||||
|
|
|||||||
113,509,866 | ||||||||
Malaysia — 4.4% | ||||||||
DiGi.Com Bhd |
12,668,900 | 11,963,130 |
40 |
2 0 2 3 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (continued) August 31, 2023 |
iShares® MSCI Emerging Markets Min Vol Factor ETF (Percentages shown are based on Net Assets) |
Security | Shares |
Value | ||||||
Malaysia (continued) | ||||||||
Genting Malaysia Bhd |
3,630,400 | $ | 2,011,073 | |||||
Hong Leong Bank Bhd |
4,668,200 | 20,086,348 | ||||||
IHH Healthcare Bhd |
20,573,600 | 26,287,168 | ||||||
IOI Corp. Bhd |
2,887,800 | 2,509,039 | ||||||
Malayan Banking Bhd |
22,053,300 | 43,290,167 | ||||||
Malaysia Airports Holdings Bhd |
3,802,200 | 6,037,567 | ||||||
MISC Bhd |
2,450,300 | 3,798,445 | ||||||
MR DIY Group M Bhd(b) |
20,020,750 | 6,688,031 | ||||||
Nestle Malaysia Bhd |
1,000,100 | 28,127,812 | ||||||
Petronas Chemicals Group Bhd |
4,244,100 | 6,513,142 | ||||||
Petronas Dagangan Bhd |
1,621,700 | 7,758,996 | ||||||
PPB Group Bhd |
3,595,400 | 12,180,967 | ||||||
Public Bank Bhd |
4,687,900 | 4,273,158 | ||||||
Telekom Malaysia Bhd |
3,883,400 | 4,271,375 | ||||||
Tenaga Nasional Bhd |
4,774,700 | 10,126,881 | ||||||
|
|
|||||||
195,923,299 | ||||||||
Mexico — 1.0% | ||||||||
America Movil SAB de CV |
16,238,932 | 15,286,053 | ||||||
Wal-Mart de Mexico SAB de CV |
7,661,758 | 30,183,296 | ||||||
|
|
|||||||
45,469,349 | ||||||||
Peru — 0.7% | ||||||||
Cia. de Minas Buenaventura SAA, ADR |
1,425,299 | 12,172,054 | ||||||
Credicorp Ltd. |
134,619 | 19,039,165 | ||||||
|
|
|||||||
31,211,219 | ||||||||
Philippines — 1.5% | ||||||||
Bank of the Philippine Islands |
10,901,255 | 21,172,347 | ||||||
BDO Unibank Inc. |
4,537,605 | 11,156,047 | ||||||
International Container Terminal Services Inc. |
4,772,060 | 17,441,554 | ||||||
Jollibee Foods Corp. |
1,331,470 | 5,570,258 | ||||||
Manila Electric Co. |
1,803,940 | 10,947,259 | ||||||
SM Investments Corp. |
188,335 | 2,768,532 | ||||||
|
|
|||||||
69,055,997 | ||||||||
Qatar — 2.6% | ||||||||
Masraf Al Rayan QSC |
39,193,971 | 23,849,211 | ||||||
Ooredoo QPSC |
7,547,681 | 22,360,432 | ||||||
Qatar Electricity & Water Co. QSC |
4,228,260 | 20,731,623 | ||||||
Qatar Fuel QSC |
1,666,797 | 7,315,527 | ||||||
Qatar Islamic Bank SA |
1,914,923 | 10,141,577 | ||||||
Qatar National Bank QPSC |
7,362,388 | 31,492,097 | ||||||
|
|
|||||||
115,890,467 | ||||||||
Russia — 0.0% | ||||||||
Polymetal International PLC(a)(c) |
244,417 | 26 | ||||||
Polyus PJSC(a)(c) |
95,932 | 10 | ||||||
Rosneft Oil Co. PJSC(a)(c) |
759,070 | 79 | ||||||
Yandex NV(a)(c) |
49,681 | 5 | ||||||
|
|
|||||||
120 | ||||||||
Saudi Arabia — 9.3% | ||||||||
Advanced Petrochemical Co. |
667,982 | 7,573,395 | ||||||
Al Rajhi Bank |
1,889,471 | 36,323,717 | ||||||
Alinma Bank |
706,001 | 6,936,608 | ||||||
Arabian Internet & Communications Services Co. |
117,629 | 11,052,790 | ||||||
Bank AlBilad |
216,495 | 2,472,346 | ||||||
Bupa Arabia for Cooperative Insurance Co. |
278,327 | 14,960,266 | ||||||
Dallah Healthcare Co. |
126,054 | 4,705,200 | ||||||
Dar Al Arkan Real Estate Development Co.(a) |
4,772,983 | 23,666,435 | ||||||
Dr Sulaiman Al Habib Medical Services Group Co. |
133,515 | 8,637,860 | ||||||
Elm Co. |
64,721 | 14,644,494 | ||||||
Emaar Economic City(a) |
252,816 | 566,616 |
Security | Shares |
Value | ||||||
Saudi Arabia (continued) | ||||||||
Etihad Etisalat Co. |
3,885,696 | $ | 46,775,672 | |||||
Jarir Marketing Co. |
8,214,181 | 32,325,413 | ||||||
Mobile Telecommunications Co. |
6,147,102 | 22,125,732 | ||||||
Nahdi Medical Co. |
54,366 | 2,198,132 | ||||||
SABIC Agri-Nutrients Co. |
790,026 | 28,950,419 | ||||||
Saudi Arabian Oil Co.(b) |
3,975,029 | 37,014,490 | ||||||
Saudi Basic Industries Corp. |
1,276,998 | 30,074,767 | ||||||
Saudi Electricity Co. |
3,297,486 | 18,189,559 | ||||||
Saudi National Bank (The) |
226,076 | 2,152,977 | ||||||
Saudi Telecom Co. |
5,891,590 | 62,517,947 | ||||||
Yanbu National Petrochemical Co. |
568,323 | 6,404,304 | ||||||
|
|
|||||||
420,269,139 | ||||||||
South Korea — 6.9% | ||||||||
BGF retail Co. Ltd. |
75,605 | 8,939,593 | ||||||
Celltrion Healthcare Co. Ltd.(d) |
58,680 | 2,871,264 | ||||||
Celltrion Inc. |
39,923 | 4,344,668 | ||||||
Coway Co. Ltd. |
195,545 | 6,385,129 | ||||||
HD Hyundai Co. Ltd. |
116,583 | 5,207,881 | ||||||
HMM Co. Ltd. |
661,867 | 8,332,076 | ||||||
Hotel Shilla Co. Ltd.(d) |
371,593 | 24,753,397 | ||||||
Kangwon Land Inc. |
908,716 | 10,654,266 | ||||||
Kia Corp. |
45,194 | 2,739,390 | ||||||
Korea Electric Power Corp.(a) |
884,734 | 11,907,388 | ||||||
KT Corp. |
98,106 | 2,447,076 | ||||||
KT&G Corp. |
508,242 | 33,392,142 | ||||||
LG Electronics Inc. |
38,920 | 2,896,485 | ||||||
LG Uplus Corp. |
1,184,259 | 9,356,482 | ||||||
NAVER Corp. |
33,017 | 5,344,533 | ||||||
NCSoft Corp. |
8,112 | 1,541,192 | ||||||
Orion Corp./Republic of Korea |
172,883 | 15,922,073 | ||||||
Pan Ocean Co. Ltd. |
698,390 | 2,353,941 | ||||||
Samsung Biologics Co. Ltd.(a)(b) |
52,712 | 29,367,005 | ||||||
Samsung C&T Corp. |
87,240 | 6,902,278 | ||||||
Samsung Electronics Co. Ltd. |
845,783 | 42,776,531 | ||||||
Samsung SDS Co. Ltd. |
265,302 | 28,472,007 | ||||||
SK Hynix Inc. |
205,628 | 18,907,521 | ||||||
Yuhan Corp. |
434,320 | 23,907,458 | ||||||
|
|
|||||||
309,721,776 | ||||||||
Taiwan — 18.5% | ||||||||
Accton Technology Corp. |
501,000 | 7,472,084 | ||||||
Advantech Co. Ltd. |
2,734,940 | 29,431,591 | ||||||
Asustek Computer Inc. |
2,921,000 | 36,801,650 | ||||||
Catcher Technology Co. Ltd. |
493,000 | 2,789,370 | ||||||
Cathay Financial Holding Co. Ltd. |
3,829,020 | 5,474,873 | ||||||
Chang Hwa Commercial Bank Ltd. |
6,868,525 | 3,727,519 | ||||||
China Steel Corp. |
7,812,000 | 6,497,647 | ||||||
Chunghwa Telecom Co. Ltd. |
16,812,000 | 61,294,014 | ||||||
Compal Electronics Inc. |
35,264,000 | 35,209,181 | ||||||
Delta Electronics Inc. |
581,000 | 6,278,805 | ||||||
E.Sun Financial Holding Co. Ltd. |
30,255,250 | 23,203,075 | ||||||
Far EasTone Telecommunications Co. Ltd. |
22,354,000 | 49,581,848 | ||||||
First Financial Holding Co. Ltd. |
77,464,399 | 63,932,939 | ||||||
Formosa Petrochemical Corp. |
3,726,000 | 9,280,319 | ||||||
Formosa Plastics Corp. |
3,123,840 | 7,798,392 | ||||||
Hon Hai Precision Industry Co. Ltd. |
3,215,000 | 10,734,057 | ||||||
Hua Nan Financial Holdings Co. Ltd. |
80,691,906 | 51,922,260 | ||||||
Inventec Corp. |
22,065,000 | 38,870,800 | ||||||
Lite-On Technology Corp. |
10,535,752 | 45,041,007 | ||||||
Mega Financial Holding Co. Ltd. |
17,049,463 | 19,187,848 |
S C H E D U L E O F I N V E S T M E N T S |
41 |
Schedule of Investments (continued) August 31, 2023 |
iShares® MSCI Emerging Markets Min Vol Factor ETF (Percentages shown are based on Net Assets) |
Security | Shares |
Value | ||||||
Taiwan (continued) | ||||||||
PharmaEssentia Corp.(a) |
335,000 | $ | 3,762,095 | |||||
Pou Chen Corp. |
4,254,000 | 3,816,976 | ||||||
President Chain Store Corp. |
7,382,000 | 61,902,172 | ||||||
Quanta Computer Inc. |
3,686,000 | 29,217,984 | ||||||
Synnex Technology International Corp. |
7,259,000 | 13,913,088 | ||||||
Taiwan Business Bank |
19,432,448 | 8,131,403 | ||||||
Taiwan Cement Corp. |
6,601,000 | 7,236,796 | ||||||
Taiwan Cooperative Financial Holding Co. Ltd. |
73,486,884 | 60,559,564 | ||||||
Taiwan High Speed Rail Corp. |
12,919,000 | 12,055,490 | ||||||
Taiwan Mobile Co. Ltd. |
20,514,000 | 60,015,554 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. |
1,302,000 | 22,372,202 | ||||||
Uni-President Enterprises Corp. |
8,761,000 | 19,425,028 | ||||||
WPG Holdings Ltd. |
7,952,440 | 13,684,914 | ||||||
|
|
|||||||
830,622,545 | ||||||||
Thailand — 5.7% | ||||||||
Advanced Info Service PCL, NVDR |
10,021,600 | 61,783,176 | ||||||
Airports of Thailand PCL, NVDR(a) |
31,006,800 | 64,170,081 | ||||||
Asset World Corp. PCL, NVDR |
73,966,900 | 9,202,199 | ||||||
Bangkok Dusit Medical Services PCL, NVDR |
36,331,800 | 29,041,560 | ||||||
Bangkok Expressway & Metro PCL, NVDR |
9,408,900 | 2,323,848 | ||||||
Bumrungrad Hospital PCL, NVDR |
3,603,800 | 26,641,172 | ||||||
Central Retail Corp. PCL, NVDR(d) |
7,909,100 | 9,304,324 | ||||||
CP ALL PCL, NVDR |
1,275,800 | 2,375,674 | ||||||
Home Product Center PCL, NVDR |
34,084,600 | 13,323,750 | ||||||
Intouch Holdings PCL, NVDR |
11,191,300 | 23,238,480 | ||||||
PTT Oil & Retail Business PCL, NVDR |
18,825,800 | 10,962,333 | ||||||
Siam Cement PCL (The), NVDR |
603,700 | 5,393,342 | ||||||
|
|
|||||||
257,759,939 | ||||||||
Turkey — 0.2% | ||||||||
BIM Birlesik Magazalar AS |
331,811 | 3,132,088 | ||||||
Hektas Ticaret TAS(a) |
2,223,174 | 2,131,458 | ||||||
Sasa Polyester Sanayi AS(a) |
1,052,705 | 2,078,206 | ||||||
Turkiye Sise ve Cam Fabrikalari AS |
1,214,044 | 2,325,749 | ||||||
|
|
|||||||
9,667,501 | ||||||||
United Arab Emirates — 4.0% | ||||||||
Abu Dhabi National Oil Co. for Distribution PJSC |
45,601,750 | 47,302,659 | ||||||
Aldar Properties PJSC |
22,656,295 | 32,429,831 | ||||||
Dubai Islamic Bank PJSC |
25,117,847 | 38,562,132 | ||||||
Emirates NBD Bank PJSC |
1,755,699 | 7,812,446 | ||||||
Emirates Telecommunications Group Co. PJSC |
4,397,472 | 23,753,293 | ||||||
First Abu Dhabi Bank PJSC |
5,059,332 | 18,838,687 | ||||||
Multiply Group(a) |
11,356,530 | 11,774,016 | ||||||
|
|
|||||||
180,473,064 | ||||||||
|
|
|||||||
Total
Common Stocks — 99.1% |
4,457,865,441 | |||||||
|
|
Security | Shares |
Value | ||||||
Preferred Stocks | ||||||||
Russia — 0.0% | ||||||||
Surgutneftegas PJSC, Preference Shares, NVS(a)(c) |
40,815,200 | $ | 4,257 | |||||
|
|
|||||||
South Korea — 0.6% | ||||||||
Samsung Electronics Co. Ltd., Preference Shares, NVS |
622,435 | 25,407,769 | ||||||
|
|
|||||||
Total
Preferred Stocks — 0.6% |
|
25,412,026 | ||||||
|
|
|||||||
Rights | ||||||||
China — 0.0% | ||||||||
Kangmei Pharmaceutical Co. Ltd., (Expires 12/31/49)(a) |
167,567 | — | ||||||
|
|
|||||||
Total
Rights — 0.0% |
|
— | ||||||
|
|
|||||||
Total
Long-Term Investments — 99.7% |
|
4,483,277,467 | ||||||
|
|
|||||||
Short-Term Securities | ||||||||
Money Market Funds — 0.9% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 5.52%(e)(f)(g) |
40,420,994 | 40,433,121 | ||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 5.31%(e)(f) |
1,290,000 | 1,290,000 | ||||||
|
|
|||||||
Total
Short-Term Securities — 0.9% |
41,723,121 | |||||||
|
|
|||||||
Total
Investments — 100.6% |
4,525,000,588 | |||||||
Liabilities in Excess of Other Assets — (0.6)% |
|
(28,486,506 | ) | |||||
|
|
|||||||
Net Assets — 100.0% |
. | $ | 4,496,514,082 | |||||
|
|
(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) |
Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. |
(d) |
All or a portion of this security is on loan. |
(e) |
Affiliate of the Fund. |
(f) |
Annualized 7-day yield as of period end. |
(g) |
All or a portion of this security was purchased with the cash collateral from loaned securities. |
42 |
2 0 2 3 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (continued) August 31, 2023 |
iShares® MSCI Emerging Markets Min Vol Factor ETF |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the year ended August 31, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Issuer | Value at 08/31/22 |
Purchases at Cost |
Proceeds from Sale |
Net Realized Gain (Loss) |
Change
in Unrealized Appreciation (Depreciation) |
Value at 08/31/23 |
Shares Held at 08/31/23 |
Income | Capital
Gain Distributions from Underlying Funds |
|||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares |
$ | 78,672,519 | $ | — | $ | (38,261,989 | )(a) | $ | 50,523 | $ | (27,932 | ) | $ | 40,433,121 | 40,420,994 | $ | 519,328 | (b) | $ | — | ||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares |
13,620,000 | — | (12,330,000 | )(a) | — | — | 1,290,000 | 1,290,000 | 698,387 | 5 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
$ | 50,523 | $ | (27,932 | ) | $ | 41,723,121 | $ | 1,217,715 | $ | 5 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(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 |
243 | 09/15/23 | $ | 11,899 | $ | 58,120 | ||||||||||
2-Year U.S. Treasury Note |
12 | 12/29/23 | 2,446 | 8,984 | ||||||||||||
|
|
|||||||||||||||
$ | 67,104 | |||||||||||||||
|
|
Derivative Financial Instruments Categorized by Risk Exposure
As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Commodity Contracts |
Credit Contracts |
Equity Contracts |
Foreign Currency Exchange Contracts |
Interest Rate Contracts |
Other Contracts |
Total | ||||||||||||||||||||||
Assets — Derivative Financial Instruments |
||||||||||||||||||||||||||||
Futures contracts |
||||||||||||||||||||||||||||
Unrealized appreciation on futures contracts(a) |
$ | — | $ | — | $ | 58,120 | $ | — | $ | 8,984 | $ | — | $ | 67,104 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:
Commodity |
Credit |
Equity |
Foreign Currency Exchange |
Interest Rate |
Other |
Total |
||||||||||||||||||||||
Net Realized Gain (Loss) from |
||||||||||||||||||||||||||||
Futures contracts |
$ | — | $ | — | $ | (393,647 | ) | $ | — | $ | (103,900 | ) | $ | — | $ | (497,547 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on |
||||||||||||||||||||||||||||
Futures contracts |
$ | — | $ | — | $ | 146,964 | $ | — | $ | 17,523 | $ | — | $ | 164,487 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
S C H E D U L E O F I N V E S T M E N T S |
43 |
Schedule of Investments (continued) August 31, 2023 |
iShares® MSCI Emerging Markets Min Vol Factor ETF |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: |
||||
Average notional value of contracts — long |
$ | 17,842,733 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets |
||||||||||||||||
Investments |
||||||||||||||||
Long-Term Investments |
||||||||||||||||
Common Stocks |
$ | 455,844,995 | $ | 4,002,020,318 | $ | 128 | $ | 4,457,865,441 | ||||||||
Preferred Stocks |
— | 25,407,769 | 4,257 | 25,412,026 | ||||||||||||
Rights |
— | — | — | — | ||||||||||||
Short-Term Securities |
||||||||||||||||
Money Market Funds |
41,723,121 | — | — | 41,723,121 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 497,568,116 | $ | 4,027,428,087 | $ | 4,385 | $ | 4,525,000,588 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Derivative Financial Instruments(a) |
||||||||||||||||
Assets |
||||||||||||||||
Equity Contracts |
$ | 58,120 | $ | — | $ | — | $ | 58,120 | ||||||||
Interest Rate Contracts |
8,984 | — | — | 8,984 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 67,104 | $ | — | $ | — | 67,104 | ||||||||||
|
|
|
|
|
|
|
|
(a) |
Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument. |
See notes to financial statements.
44 |
2 0 2 3 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments August 31, 2023 |
iShares® MSCI Global Min Vol Factor ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Canada — 1.9% | ||||||||
BCE Inc. |
107,578 | $ | 4,557,256 | |||||
CGI Inc.(a) |
218,124 | 22,745,465 | ||||||
Franco-Nevada Corp. |
224,963 | 32,409,190 | ||||||
Loblaw Companies Ltd. |
88,550 | 7,689,144 | ||||||
TELUS Corp. |
276,370 | 4,853,656 | ||||||
Thomson Reuters Corp. |
26,488 | 3,410,781 | ||||||
Waste Connections Inc. |
112,136 | 15,361,511 | ||||||
|
|
|||||||
91,027,003 | ||||||||
China — 7.3% | ||||||||
Agricultural Bank of China Ltd., Class A |
8,120,699 | 3,859,750 | ||||||
Agricultural Bank of China Ltd., Class H |
45,629,000 | 15,639,547 | ||||||
Anhui Gujing Distillery Co. Ltd., Class B |
170,556 | 2,837,254 | ||||||
Bank of China Ltd., Class H |
123,973,000 | 42,016,561 | ||||||
Bank of Communications Co. Ltd., Class A |
3,731,700 | 2,847,181 | ||||||
Bank of Communications Co. Ltd., Class H |
13,741,000 | 7,864,667 | ||||||
Beijing Enterprises Holdings Ltd. |
781,500 | 2,927,883 | ||||||
Beijing Kingsoft Office Software Inc., Class A |
43,600 | 2,363,720 | ||||||
Beijing-Shanghai High Speed Railway Co. Ltd., Class A |
3,050,000 | 2,139,751 | ||||||
BYD Co. Ltd., Class A |
134,700 | 4,619,948 | ||||||
CGN Power Co. Ltd., Class H(b) |
16,853,000 | 4,211,220 | ||||||
China CITIC Bank Corp. Ltd., Class H |
14,119,000 | 6,283,922 | ||||||
China Coal Energy Co. Ltd., Class H |
3,383,000 | 2,307,807 | ||||||
China Conch Venture Holdings Ltd. |
1,965,000 | 1,930,685 | ||||||
China Construction Bank Corp., Class H |
55,230,000 | 29,550,858 | ||||||
China Galaxy Securities Co. Ltd., Class H |
5,584,000 | 3,003,991 | ||||||
China Merchants Port Holdings Co. Ltd. |
2,240,000 | 2,679,687 | ||||||
China Minsheng Banking Corp. Ltd., Class H |
9,927,000 | 3,188,394 | ||||||
China Shenhua Energy Co. Ltd., Class A |
603,200 | 2,335,239 | ||||||
China Shenhua Energy Co. Ltd., Class H |
3,897,500 | 11,343,732 | ||||||
China State Construction Engineering Corp. Ltd., Class A |
3,788,500 | 2,930,088 | ||||||
China Tourism Group Duty Free Corp. Ltd., Class A |
182,500 | 2,736,069 | ||||||
China Tower Corp. Ltd., Class H(b) |
68,836,000 | 6,660,020 | ||||||
China Yangtze Power Co. Ltd., Class A |
2,191,200 | 6,645,714 | ||||||
Chow Tai Fook Jewellery Group Ltd. |
3,164,800 | 4,798,985 | ||||||
CITIC Securities Co. Ltd., Class A |
967,508 | 2,956,571 | ||||||
COSCO Shipping Holdings Co. Ltd., Class H |
5,034,000 | 5,162,288 | ||||||
East Money Information Co. Ltd., Class A |
1,345,112 | 2,936,669 | ||||||
GCL-Poly Energy Holdings Ltd. |
13,524,000 | 2,342,434 | ||||||
Guangdong Investment Ltd. |
2,599,147 | 2,028,956 | ||||||
Industrial & Commercial Bank of China Ltd., Class A |
5,980,251 | 3,796,123 | ||||||
Industrial & Commercial Bank of China Ltd., Class H |
51,345,000 | 23,540,514 | ||||||
Industrial Bank Co. Ltd., Class A |
1,975,900 | 4,294,832 | ||||||
Inner Mongolia Yitai Coal Co. Ltd., Class B(a) |
1,760,339 | 2,345,252 | ||||||
Kingboard Holdings Ltd. |
1,050,000 | 2,382,709 | ||||||
Kunlun Energy Co. Ltd. |
6,184,000 | 4,527,210 | ||||||
Lenovo Group Ltd. |
4,102,000 | 4,636,597 | ||||||
LONGi Green Energy Technology Co. Ltd., Class A |
721,092 | 2,635,486 | ||||||
Luxshare Precision Industry Co. Ltd., Class A |
664,300 | 3,009,569 | ||||||
Muyuan Foods Co. Ltd., Class A |
510,120 | 2,842,471 | ||||||
NARI Technology Co. Ltd., Class A |
760,580 | 2,486,818 | ||||||
Nongfu Spring Co. Ltd., Class H(b) |
439,600 | 2,468,972 | ||||||
People’s Insurance Co. Group of China Ltd. (The), Class H |
13,558,000 | 4,614,915 | ||||||
PetroChina Co. Ltd., Class H |
26,706,000 | 19,264,795 |
Security | Shares | Value | ||||||
China (continued) | ||||||||
PICC Property & Casualty Co. Ltd., Class H |
10,774,000 | $ | 12,389,651 | |||||
Ping An Bank Co. Ltd., Class A |
1,777,800 | 2,718,844 | ||||||
Postal Savings Bank of China Co. Ltd., Class H(b) |
12,305,000 | 6,069,198 | ||||||
Sany Heavy Equipment International Holdings Co. Ltd. |
1,728,000 | 2,692,543 | ||||||
SF Holding Co. Ltd., Class A |
456,600 | 2,726,892 | ||||||
Shaanxi Coal Industry Co. Ltd., Class A |
962,200 | 2,199,864 | ||||||
Shanghai Baosight Software Co. Ltd., Class B |
952,196 | 2,163,050 | ||||||
Shanghai Pudong Development Bank Co. Ltd., Class A |
2,803,200 | 2,690,651 | ||||||
Shenzhen Mindray Bio-Medical Electronics Co. Ltd., Class A |
108,400 | 4,025,734 | ||||||
Sinopharm Group Co. Ltd., Class H |
2,080,400 | 6,037,160 | ||||||
Tingyi Cayman Islands Holding Corp. |
2,088,000 | 3,065,807 | ||||||
Topsports International Holdings Ltd.(b) |
2,725,000 | 2,219,168 | ||||||
TravelSky Technology Ltd., Class H |
1,472,000 | 2,635,512 | ||||||
Wanhua Chemical Group Co. Ltd., Class A |
299,400 | 3,858,316 | ||||||
Xiaomi Corp., Class B(a)(b) |
4,577,800 | 7,216,524 | ||||||
ZTE Corp., Class H |
1,192,400 | 3,837,632 | ||||||
ZTO Express Cayman Inc., ADR |
118,588 | 2,981,302 | ||||||
|
|
|||||||
345,523,702 | ||||||||
Denmark — 0.2% | ||||||||
Novo Nordisk A/S, Class B |
45,319 | 8,359,258 | ||||||
|
|
|||||||
Finland — 0.2% | ||||||||
Elisa OYJ |
224,196 | 11,006,017 | ||||||
|
|
|||||||
France — 0.6% | ||||||||
Bollore SE |
1,390,459 | 8,225,010 | ||||||
Orange SA |
1,783,829 | 20,026,441 | ||||||
|
|
|||||||
28,251,451 | ||||||||
Germany — 0.8% | ||||||||
Deutsche Telekom AG, Registered |
1,684,623 | 36,056,866 | ||||||
Telefonica Deutschland Holding AG |
1,436,000 | 2,730,062 | ||||||
|
|
|||||||
38,786,928 | ||||||||
Greece — 0.1% | ||||||||
Hellenic Telecommunications Organization SA |
218,959 | 3,272,176 | ||||||
|
|
|||||||
Hong Kong — 1.8% | ||||||||
BOC Hong Kong Holdings Ltd. |
1,687,000 | 4,686,974 | ||||||
CLP Holdings Ltd. |
1,534,254 | 12,030,895 | ||||||
Galaxy Entertainment Group Ltd.(a) |
1,488,000 | 9,835,236 | ||||||
Hang Seng Bank Ltd. |
1,199,200 | 15,282,741 | ||||||
HKT Trust & HKT Ltd., Class SS |
5,692,000 | 6,065,770 | ||||||
Hong Kong & China Gas Co. Ltd. |
12,841,579 | 9,438,075 | ||||||
Jardine Matheson Holdings Ltd. |
212,200 | 10,088,669 | ||||||
MTR Corp. Ltd. |
2,447,500 | 10,212,098 | ||||||
Power Assets Holdings Ltd. |
1,295,000 | 6,374,676 | ||||||
|
|
|||||||
84,015,134 | ||||||||
India — 4.9% | ||||||||
Adani Green Energy Ltd.(a) |
218,261 | 2,448,330 | ||||||
Asian Paints Ltd. |
436,014 | 17,142,169 | ||||||
Bajaj Auto Ltd. |
70,250 | 3,911,765 | ||||||
Bajaj Holdings & Investment Ltd. |
31,084 | 2,790,988 | ||||||
Berger Paints India Ltd. |
386,150 | 3,350,111 | ||||||
Bharat Petroleum Corp. Ltd. |
774,837 | 3,185,079 | ||||||
Bharti Airtel Ltd. |
1,509,847 | 15,610,375 | ||||||
Cipla Ltd. |
364,228 | 5,528,137 | ||||||
Divi’s Laboratories Ltd. |
139,454 | 6,045,168 | ||||||
Dr. Reddy’s Laboratories Ltd. |
63,272 | 4,280,010 |
S C H E D U L E O F I N V E S T M E N T S |
45 |
Schedule of Investments (continued) August 31, 2023 |
iShares® MSCI Global Min Vol Factor ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
India (continued) | ||||||||
Eicher Motors Ltd. |
182,578 | $ | 7,354,671 | |||||
Havells India Ltd. |
159,110 | 2,658,895 | ||||||
HCL Technologies Ltd. |
1,173,265 | 16,597,765 | ||||||
Hero MotoCorp Ltd. |
80,281 | 2,826,049 | ||||||
Hindustan Petroleum Corp. Ltd. |
953,434 | 2,855,665 | ||||||
Hindustan Unilever Ltd. |
160,377 | 4,851,379 | ||||||
Indian Hotels Co. Ltd. (The), Class A |
1,002,921 | 5,094,490 | ||||||
Indian Oil Corp. Ltd. |
4,536,926 | 4,879,744 | ||||||
Infosys Ltd. |
519,305 | 8,999,118 | ||||||
Larsen & Toubro Infotech Ltd.(b) |
51,604 | 3,232,522 | ||||||
Larsen & Toubro Ltd. |
204,104 | 6,659,349 | ||||||
Maruti Suzuki India Ltd. |
39,355 | 4,752,572 | ||||||
MRF Ltd. |
2,470 | 3,241,520 | ||||||
Nestle India Ltd. |
33,206 | 8,814,681 | ||||||
Petronet LNG Ltd. |
1,214,358 | 3,155,319 | ||||||
PI Industries Ltd. |
121,857 | 5,338,642 | ||||||
Pidilite Industries Ltd. |
236,191 | 7,171,820 | ||||||
Shree Cement Ltd. |
11,049 | 3,175,293 | ||||||
Sun Pharmaceutical Industries Ltd. |
417,508 | 5,596,305 | ||||||
Tata Consultancy Services Ltd. |
777,325 | 31,484,681 | ||||||
Tech Mahindra Ltd. |
374,342 | 5,427,791 | ||||||
Torrent Pharmaceuticals Ltd. |
161,456 | 3,593,843 | ||||||
UltraTech Cement Ltd. |
75,846 | 7,598,631 | ||||||
Wipro Ltd. |
655,624 | 3,229,461 | ||||||
Wipro Ltd., ADR |
955,132 | 4,670,596 | ||||||
Yes Bank Ltd.(a) |
15,166,840 | 3,076,348 | ||||||
|
|
|||||||
230,629,282 | ||||||||
Indonesia — 0.6% | ||||||||
Bank Central Asia Tbk PT |
34,286,300 | 20,640,535 | ||||||
Telkom Indonesia Persero Tbk PT |
39,720,200 | 9,709,153 | ||||||
|
|
|||||||
30,349,688 | ||||||||
Israel — 0.3% | ||||||||
Bank Hapoalim BM |
427,371 | 3,538,266 | ||||||
Check Point Software Technologies Ltd.(a)(c) |
82,884 | 11,155,358 | ||||||
Isracard Ltd. |
— | 1 | ||||||
|
|
|||||||
14,693,625 | ||||||||
Italy — 0.2% | ||||||||
Infrastrutture Wireless Italiane SpA(b) |
497,172 | 6,151,200 | ||||||
Recordati Industria Chimica e Farmaceutica SpA |
59,765 | 2,995,895 | ||||||
|
|
|||||||
9,147,095 | ||||||||
Japan — 10.7% | ||||||||
Brother Industries Ltd. |
242,900 | 4,110,734 | ||||||
Canon Inc. |
998,900 | 24,586,982 | ||||||
Capcom Co. Ltd. |
83,400 | 3,518,080 | ||||||
Central Japan Railway Co. |
226,000 | 28,977,602 | ||||||
Chiba Bank Ltd. (The) |
431,900 | 3,083,938 | ||||||
Chubu Electric Power Co. Inc. |
676,500 | 9,016,789 | ||||||
East Japan Railway Co. |
382,400 | 21,620,571 | ||||||
ENEOS Holdings Inc. |
2,830,200 | 10,627,776 | ||||||
FUJIFILM Holdings Corp. |
176,600 | 10,436,431 | ||||||
Hamamatsu Photonics KK |
208,400 | 9,642,343 | ||||||
Hankyu Hanshin Holdings Inc. |
87,600 | 3,144,083 | ||||||
Hirose Electric Co. Ltd. |
46,800 | 5,666,304 | ||||||
ITOCHU Corp. |
183,900 | 6,901,642 | ||||||
Itochu Techno-Solutions Corp. |
152,500 | 4,527,946 | ||||||
Japan Post Bank Co. Ltd. |
664,200 | 5,329,583 | ||||||
KDDI Corp. |
709,300 | 21,085,656 | ||||||
Keio Corp. |
120,900 | 4,183,221 | ||||||
Keisei Electric Railway Co. Ltd. |
62,800 | 2,404,731 |
Security | Shares | Value | ||||||
Japan (continued) | ||||||||
Keyence Corp. |
8,300 | $ | 3,445,923 | |||||
Kintetsu Group Holdings Co. Ltd. |
273,100 | 8,644,306 | ||||||
Kirin Holdings Co. Ltd. |
157,000 | 2,204,162 | ||||||
Koei Tecmo Holdings Co. Ltd. |
178,600 | 2,773,968 | ||||||
Kyocera Corp. |
63,500 | 3,256,895 | ||||||
McDonald’s Holdings Co. Japan Ltd.(c) |
136,700 | 5,440,001 | ||||||
MEIJI Holdings Co. Ltd. |
151,000 | 3,786,335 | ||||||
Mizuho Financial Group Inc. |
499,100 | 8,224,679 | ||||||
NEC Corp. |
222,100 | 11,707,084 | ||||||
Nintendo Co. Ltd. |
365,200 | 15,658,638 | ||||||
Nippon Telegraph & Telephone Corp. |
35,780,100 | 41,312,974 | ||||||
Nissin Foods Holdings Co. Ltd. |
35,500 | 3,100,297 | ||||||
Nitori Holdings Co. Ltd. |
62,400 | 7,102,857 | ||||||
Nomura Research Institute Ltd. |
138,990 | 3,994,453 | ||||||
NTT Data Group Corp. |
666,000 | 8,954,844 | ||||||
Obic Co. Ltd. |
90,900 | 15,804,598 | ||||||
Odakyu Electric Railway Co. Ltd. |
187,600 | 2,789,535 | ||||||
Ono Pharmaceutical Co. Ltd. |
479,800 | 9,064,347 | ||||||
Oracle Corp. Japan |
59,800 | 4,176,856 | ||||||
Oriental Land Co. Ltd./Japan |
241,600 | 8,702,725 | ||||||
Osaka Gas Co. Ltd. |
587,200 | 9,374,302 | ||||||
Otsuka Corp. |
80,600 | 3,592,176 | ||||||
Otsuka Holdings Co. Ltd. |
411,600 | 15,637,388 | ||||||
Pan Pacific International Holdings Corp. |
371,400 | 7,400,210 | ||||||
SCSK Corp. |
175,600 | 3,043,919 | ||||||
Secom Co. Ltd. |
283,900 | 19,869,523 | ||||||
SG Holdings Co. Ltd. |
150,900 | 2,179,728 | ||||||
Shizuoka Financial Group Inc., NVS |
708,100 | 5,754,130 | ||||||
SoftBank Corp. |
3,945,900 | 45,254,355 | ||||||
Suntory Beverage & Food Ltd. |
207,800 | 6,685,847 | ||||||
TIS Inc. |
345,000 | 8,133,845 | ||||||
Tobu Railway Co. Ltd. |
296,800 | 8,136,556 | ||||||
Toho Co. Ltd./Tokyo |
151,700 | 5,781,997 | ||||||
Tokyu Corp. |
169,100 | 2,136,853 | ||||||
USS Co. Ltd. |
293,300 | 5,121,663 | ||||||
Welcia Holdings Co. Ltd. |
149,900 | 2,757,747 | ||||||
West Japan Railway Co. |
108,000 | 4,675,755 | ||||||
|
|
|||||||
504,545,883 | ||||||||
Kuwait — 0.3% | ||||||||
Mobile Telecommunications Co. KSCP |
3,075,694 | 5,087,592 | ||||||
National Bank of Kuwait SAKP |
2,484,490 | 7,414,065 | ||||||
|
|
|||||||
12,501,657 | ||||||||
Malaysia — 0.5% | ||||||||
DiGi.Com Bhd |
3,083,400 | 2,911,627 | ||||||
Hong Leong Bank Bhd |
934,700 | 4,021,830 | ||||||
IHH Healthcare Bhd |
2,710,800 | 3,463,626 | ||||||
Malayan Banking Bhd(c) |
2,645,700 | 5,193,454 | ||||||
Petronas Chemicals Group Bhd |
1,564,800 | 2,401,396 | ||||||
Petronas Gas Bhd |
1,155,300 | 4,262,659 | ||||||
|
|
|||||||
22,254,592 | ||||||||
Netherlands — 0.5% | ||||||||
Koninklijke Ahold Delhaize NV |
507,228 | 16,591,430 | ||||||
Koninklijke KPN NV |
1,642,816 | 5,748,861 | ||||||
|
|
|||||||
22,340,291 | ||||||||
New Zealand — 0.1% | ||||||||
Spark New Zealand Ltd. |
1,691,560 | 5,117,491 | ||||||
|
|
|||||||
Philippines — 0.2% | ||||||||
BDO Unibank Inc. |
3,072,758 | 7,554,609 |
46 |
2 0 2 3 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (continued) August 31, 2023 |
iShares® MSCI Global Min Vol Factor ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Philippines (continued) | ||||||||
Jollibee Foods Corp. |
665,920 | $ | 2,785,903 | |||||
|
|
|||||||
10,340,512 | ||||||||
Qatar — 0.2% | ||||||||
Industries Qatar QSC |
696,258 | 2,359,000 | ||||||
Qatar National Bank QPSC |
1,871,613 | 8,005,693 | ||||||
|
|
|||||||
10,364,693 | ||||||||
Russia — 0.0% | ||||||||
PhosAgro PJSC(a)(d) |
41,863 | 4 | ||||||
PhosAgro PJSC, GDR(a)(d)(e) |
2 | — | ||||||
PhosAgro PJSC, New(a)(d) |
809 | 8 | ||||||
Polymetal International PLC(a)(d) |
250,942 | 26 | ||||||
Polyus PJSC(a)(d) |
53,523 | 6 | ||||||
|
|
|||||||
44 | ||||||||
Saudi Arabia — 1.4% | ||||||||
Arabian Internet & Communications Services Co. |
30,090 | 2,827,351 | ||||||
Bupa Arabia for Cooperative Insurance Co. |
49,830 | 2,678,397 | ||||||
Jarir Marketing Co. |
957,043 | 3,766,268 | ||||||
SABIC Agri-Nutrients Co. |
293,383 | 10,750,989 | ||||||
Saudi Arabian Oil Co.(b) |
1,992,409 | 18,552,821 | ||||||
Saudi Basic Industries Corp. |
297,973 | 7,017,606 | ||||||
Saudi Telecom Co. |
1,983,730 | 21,050,128 | ||||||
|
|
|||||||
66,643,560 | ||||||||
Singapore — 0.9% | ||||||||
DBS Group Holdings Ltd. |
103,400 | 2,545,050 | ||||||
Genting Singapore Ltd. |
6,867,400 | 4,443,197 | ||||||
Singapore Exchange Ltd. |
1,302,400 | 9,271,659 | ||||||
Singapore Technologies Engineering Ltd. |
1,737,900 | 4,896,547 | ||||||
Singapore Telecommunications Ltd. |
11,691,700 | 20,542,761 | ||||||
UOL Group Ltd. |
675,200 | 3,314,866 | ||||||
|
|
|||||||
45,014,080 | ||||||||
Switzerland — 3.4% | ||||||||
BKW AG |
33,375 | 5,734,601 | ||||||
Kuehne + Nagel International AG, Registered |
21,898 | 6,579,142 | ||||||
Nestle SA, Registered |
186,162 | 22,384,008 | ||||||
Novartis AG, Registered |
447,607 | 45,047,933 | ||||||
Roche Holding AG, NVS |
153,574 | 45,072,159 | ||||||
Swiss Prime Site AG, Registered |
110,851 | 10,644,338 | ||||||
Swisscom AG, Registered |
40,558 | 24,695,328 | ||||||
|
|
|||||||
160,157,509 | ||||||||
Taiwan — 5.3% | ||||||||
Acer Inc. |
4,059,000 | 4,653,966 | ||||||
Advantech Co. Ltd. |
625,959 | 6,736,151 | ||||||
Asia Cement Corp. |
3,255,000 | 4,077,337 | ||||||
Asustek Computer Inc. |
1,106,000 | 13,934,483 | ||||||
Catcher Technology Co. Ltd. |
999,000 | 5,652,293 | ||||||
Chang Hwa Commercial Bank Ltd. |
6,531,250 | 3,544,481 | ||||||
Cheng Shin Rubber Industry Co. Ltd. |
1,814,000 | 2,253,459 | ||||||
China Steel Corp. |
7,610,000 | 6,329,633 | ||||||
Chunghwa Telecom Co. Ltd. |
5,960,000 | 21,729,260 | ||||||
Compal Electronics Inc. |
6,616,000 | 6,605,715 | ||||||
E.Sun Financial Holding Co. Ltd. |
10,121,621 | 7,762,380 | ||||||
Far EasTone Telecommunications Co. Ltd. |
2,520,000 | 5,589,436 | ||||||
First Financial Holding Co. Ltd. |
16,175,798 | 13,350,214 | ||||||
Formosa Chemicals & Fibre Corp. |
5,437,000 | 10,581,099 | ||||||
Formosa Petrochemical Corp. |
1,792,000 | 4,463,320 | ||||||
Hua Nan Financial Holdings Co. Ltd. |
13,189,905 | 8,487,217 | ||||||
Inventec Corp. |
4,220,000 | 7,434,162 | ||||||
Lite-On Technology Corp. |
3,155,000 | 13,487,825 |
Security | Shares | Value | ||||||
Taiwan (continued) | ||||||||
Mega Financial Holding Co. Ltd. |
6,441,122 | $ | 7,248,983 | |||||
Nan Ya Plastics Corp. |
1,045,000 | 2,168,779 | ||||||
Pegatron Corp. |
3,143,000 | 7,685,788 | ||||||
Powerchip Semiconductor Manufacturing Corp. |
2,405,000 | 2,097,455 | ||||||
President Chain Store Corp. |
601,000 | 5,039,719 | ||||||
Quanta Computer Inc. |
4,227,000 | 33,506,353 | ||||||
Synnex Technology International Corp. |
1,944,250 | 3,726,480 | ||||||
Taishin Financial Holding Co. Ltd. |
10,242,593 | 5,718,429 | ||||||
Taiwan Cooperative Financial Holding Co. Ltd. |
15,285,766 | 12,596,796 | ||||||
Taiwan High Speed Rail Corp. |
3,135,000 | 2,925,456 | ||||||
Taiwan Mobile Co. Ltd. |
2,693,000 | 7,878,614 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. |
541,000 | 9,295,976 | ||||||
WPG Holdings Ltd. |
2,585,760 | 4,449,691 | ||||||
|
|
|||||||
251,010,950 | ||||||||
Thailand — 0.7% | ||||||||
Advanced Info Service PCL, NVDR |
1,763,600 | 10,872,596 | ||||||
Airports of Thailand PCL, NVDR(a) |
6,493,700 | 13,439,028 | ||||||
Bangkok Expressway & Metro PCL, NVDR |
10,051,900 | 2,482,659 | ||||||
Bumrungrad Hospital PCL, NVDR |
361,600 | 2,673,136 | ||||||
Home Product Center PCL, NVDR |
6,011,500 | 2,349,909 | ||||||
|
|
|||||||
31,817,328 | ||||||||
United Arab Emirates — 0.4% | ||||||||
Abu Dhabi National Oil Co. for Distribution PJSC |
4,932,853 | 5,116,844 | ||||||
Emirates Telecommunications Group Co. PJSC |
2,023,665 | 10,930,987 | ||||||
Multiply Group(a) |
2,794,614 | 2,897,349 | ||||||
|
|
|||||||
18,945,180 | ||||||||
United States — 56.1% | ||||||||
Abbott Laboratories |
90,785 | 9,341,776 | ||||||
AbbVie Inc. |
153,603 | 22,573,497 | ||||||
Accenture PLC, Class A |
38,111 | 12,339,198 | ||||||
Activision Blizzard Inc. |
328,332 | 30,203,261 | ||||||
Akamai Technologies Inc.(a)(c) |
160,220 | 16,837,520 | ||||||
Ameren Corp. |
63,112 | 5,002,888 | ||||||
American Electric Power Co. Inc. |
181,436 | 14,224,582 | ||||||
American Water Works Co. Inc. |
94,501 | 13,111,069 | ||||||
Amgen Inc. |
86,378 | 22,142,137 | ||||||
Amphenol Corp., Class A |
197,689 | 17,471,754 | ||||||
Aon PLC, Class A |
49,925 | 16,644,496 | ||||||
Arrow Electronics Inc.(a) |
75,602 | 10,087,575 | ||||||
Arthur J Gallagher & Co. |
59,518 | 13,717,709 | ||||||
AT&T Inc. |
616,274 | 9,114,692 | ||||||
AutoZone Inc.(a) |
12,935 | 32,742,754 | ||||||
Becton Dickinson and Co. |
58,806 | 16,433,337 | ||||||
Berkshire Hathaway Inc., Class B(a) |
91,805 | 33,068,161 | ||||||
BioMarin Pharmaceutical Inc.(a) |
152,196 | 13,907,670 | ||||||
Black Knight Inc.(a) |
244,835 | 18,548,700 | ||||||
Booz Allen Hamilton Holding Corp., Class A |
128,574 | 14,568,720 | ||||||
Bristol-Myers Squibb Co. |
537,726 | 33,150,808 | ||||||
Brown & Brown Inc. |
143,125 | 10,605,562 | ||||||
Campbell Soup Co. |
304,431 | 12,694,773 | ||||||
Cboe Global Markets Inc. |
166,222 | 24,885,096 | ||||||
Cencora Inc. |
133,090 | 23,421,178 | ||||||
CF Industries Holdings Inc. |
156,188 | 12,037,409 | ||||||
CH Robinson Worldwide Inc.(c) |
181,873 | 16,446,775 | ||||||
Cheniere Energy Inc. |
17,382 | 2,836,742 | ||||||
Church & Dwight Co. Inc. |
205,355 | 19,872,203 | ||||||
Cigna Group (The) |
22,566 | 6,234,083 | ||||||
Cisco Systems Inc. |
1,075,787 | 61,696,384 | ||||||
Clorox Co. (The) |
23,693 | 3,706,770 |
S C H E D U L E O F I N V E S T M E N T S |
47 |
Schedule of Investments (continued) August 31, 2023 |
iShares® MSCI Global Min Vol Factor ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
United States (continued) | ||||||||
CME Group Inc. |
55,377 | $ | 11,223,810 | |||||
CMS Energy Corp. |
126,811 | 7,125,510 | ||||||
Cognizant Technology Solutions Corp., Class A |
42,932 | 3,074,361 | ||||||
Colgate-Palmolive Co. |
166,625 | 12,241,939 | ||||||
Conagra Brands Inc. |
84,270 | 2,517,988 | ||||||
Consolidated Edison Inc. |
524,618 | 46,670,017 | ||||||
Corteva Inc. |
108,176 | 5,463,970 | ||||||
Dollar General Corp. |
120,604 | 16,703,654 | ||||||
Dominion Energy Inc. |
326,695 | 15,857,775 | ||||||
Domino’s Pizza Inc. |
42,547 | 16,482,708 | ||||||
Duke Energy Corp. |
384,847 | 34,174,414 | ||||||
Electronic Arts Inc. |
202,295 | 24,271,354 | ||||||
Eli Lilly & Co. |
120,081 | 66,548,890 | ||||||
Erie Indemnity Co., Class A, NVS |
37,773 | 10,528,468 | ||||||
Evergy Inc. |
55,281 | 3,038,797 | ||||||
Eversource Energy |
90,443 | 5,772,072 | ||||||
Expeditors International of Washington Inc. |
242,350 | 28,284,668 | ||||||
F5 Inc.(a) |
37,160 | 6,081,606 | ||||||
First Horizon Corp. |
839,394 | 10,534,395 | ||||||
Fiserv Inc.(a)(c) |
120,507 | 14,628,345 | ||||||
Gen Digital, Inc. |
634,183 | 12,842,206 | ||||||
General Mills Inc. |
502,470 | 33,997,120 | ||||||
Genuine Parts Co. |
19,542 | 3,004,192 | ||||||
Gilead Sciences Inc. |
716,938 | 54,831,418 | ||||||
GoDaddy Inc., Class A(a) |
47,064 | 3,412,611 | ||||||
Henry Schein Inc.(a) |
44,887 | 3,435,651 | ||||||
Hershey Co. (The) |
192,024 | 41,258,277 | ||||||
Hologic Inc.(a) |
32,001 | 2,391,755 | ||||||
Home Depot Inc. (The) |
61,430 | 20,290,329 | ||||||
Horizon Therapeutics PLC(a) |
85,283 | 9,614,805 | ||||||
Hormel Foods Corp. |
443,095 | 17,099,036 | ||||||
Humana Inc. |
44,836 | 20,697,643 | ||||||
Incyte Corp.(a) |
296,669 | 19,144,051 | ||||||
International Business Machines Corp. |
134,305 | 19,720,003 | ||||||
Jack Henry & Associates Inc. |
73,703 | 11,555,156 | ||||||
JM Smucker Co. (The) |
166,908 | 24,193,315 | ||||||
Johnson & Johnson |
364,259 | 58,893,395 | ||||||
Juniper Networks Inc. |
330,032 | 9,610,532 | ||||||
Kellogg Co. |
410,657 | 25,058,290 | ||||||
Keurig Dr Pepper Inc. |
564,905 | 19,009,053 | ||||||
Keysight Technologies Inc.(a) |
273,160 | 36,412,228 | ||||||
Kimberly-Clark Corp. |
121,025 | 15,591,651 | ||||||
Kraft Heinz Co. (The) |
166,521 | 5,510,180 | ||||||
Kroger Co. (The) |
747,442 | 34,673,834 | ||||||
Lockheed Martin Corp. |
9,101 | 4,080,433 | ||||||
Marsh & McLennan Companies Inc. |
211,124 | 41,167,069 | ||||||
Mastercard Inc., Class A |
19,251 | 7,943,733 | ||||||
McCormick & Co. Inc./MD, NVS |
102,184 | 8,387,263 | ||||||
McDonald’s Corp. |
180,870 | 50,851,600 | ||||||
McKesson Corp. |
112,319 | 46,311,370 | ||||||
Merck & Co. Inc. |
620,585 | 67,631,353 | ||||||
Microsoft Corp. |
70,891 | 23,235,234 | ||||||
Mondelez International Inc., Class A |
87,316 | 6,222,138 | ||||||
Motorola Solutions Inc. |
204,430 | 57,970,215 | ||||||
Neurocrine Biosciences Inc.(a) |
152,401 | 16,594,945 | ||||||
Newmont Corp. |
423,072 | 16,677,498 | ||||||
NextEra Energy Inc. |
140,960 | 9,416,128 | ||||||
Northrop Grumman Corp. |
31,522 | 13,651,863 | ||||||
Old Dominion Freight Line Inc.(c) |
10,961 | 4,684,403 | ||||||
Oracle Corp.(c) |
170,113 | 20,479,904 |
Security | Shares | Value | ||||||
United States (continued) | ||||||||
O’Reilly Automotive Inc.(a) |
26,206 | $ | 24,625,778 | |||||
PepsiCo Inc. |
345,756 | 61,516,908 | ||||||
Pfizer Inc. |
437,200 | 15,468,136 | ||||||
PG&E Corp.(a) |
266,851 | 4,349,671 | ||||||
Procter & Gamble Co. (The) |
258,566 | 39,907,076 | ||||||
Progressive Corp. (The)(c) |
164,640 | 21,974,501 | ||||||
PTC Inc.(a)(c) |
37,548 | 5,525,939 | ||||||
Quest Diagnostics Inc. |
49,974 | 6,571,581 | ||||||
Regeneron Pharmaceuticals Inc.(a) |
41,659 | 34,430,747 | ||||||
Republic Services Inc., Class A |
330,843 | 47,684,402 | ||||||
Rollins Inc. |
225,066 | 8,905,862 | ||||||
Roper Technologies Inc. |
83,715 | 41,778,808 | ||||||
Seagen Inc.(a) |
131,365 | 27,070,386 | ||||||
Southern Co. (The) |
488,986 | 33,119,022 | ||||||
T-Mobile U.S. Inc.(a) |
283,170 | 38,581,912 | ||||||
Ulta Beauty Inc.(a) |
22,506 | 9,340,665 | ||||||
United Parcel Service Inc., Class B |
14,328 | 2,427,163 | ||||||
United Therapeutics Corp.(a) |
47,480 | 10,652,613 | ||||||
UnitedHealth Group Inc. |
49,540 | 23,609,773 | ||||||
VeriSign Inc.(a) |
56,575 | 11,755,719 | ||||||
Verizon Communications Inc. |
1,432,080 | 50,094,158 | ||||||
Vertex Pharmaceuticals Inc.(a) |
130,886 | 45,592,829 | ||||||
Visa Inc., Class A |
101,675 | 24,979,514 | ||||||
VMware Inc., Class A(a) |
237,768 | 40,130,483 | ||||||
Walmart Inc. |
381,979 | 62,113,605 | ||||||
Waste Management Inc. |
429,788 | 67,382,163 | ||||||
WEC Energy Group Inc. |
398,362 | 33,510,211 | ||||||
Xcel Energy Inc. |
556,245 | 31,778,277 | ||||||
Yum! Brands Inc. |
92,300 | 11,941,774 | ||||||
|
|
|||||||
2,645,265,576 | ||||||||
|
|
|||||||
Total
Long-Term Investments — 99.6% |
|
4,701,380,705 | ||||||
Short-Term Securities |
||||||||
Money Market Funds — 1.3% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 5.52%(f)(g)(h) |
51,582,073 | 51,597,548 | ||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 5.31%(f)(g) |
7,270,000 | 7,270,000 | ||||||
|
|
|||||||
Total
Short-Term Securities — 1.3% |
|
58,867,548 | ||||||
|
|
|||||||
Total
Investments — 100.9% |
|
4,760,248,253 | ||||||
Liabilities in Excess of Other Assets — (0.9)% |
(41,704,828 | ) | ||||||
|
|
|||||||
Net Assets — 100.0% |
$ | 4,718,543,425 | ||||||
|
|
(a) |
Non-income producing security. |
(b) |
Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
(c) |
All or a portion of this security is on loan. |
(d) |
Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. |
(e) |
This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933. |
(f) |
Affiliate of the Fund. |
(g) |
Annualized 7-day yield as of period end. |
48 |
2 0 2 3 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (continued) August 31, 2023 |
iShares® MSCI Global Min Vol Factor ETF |
(h) |
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, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Issuer | Value at 08/31/22 |
Purchases at Cost |
Proceeds from Sale |
Net Realized Gain (Loss) |
Change
in Unrealized Appreciation (Depreciation) |
Value at 08/31/23 |
Shares Held at 08/31/23 |
Income |
Capital Gain |
|||||||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares |
$ | 11,312,019 | $ | 40,271,365 | (a) | $ | — | $ | 9,907 | $ | 4,257 | $ | 51,597,548 | 51,582,073 | $ | 217,703 | (b) | $ | — | |||||||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares |
6,260,000 | 1,010,000 | (a) | — | — | — | 7,270,000 | 7,270,000 | 300,432 | 3 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||
$ | 9,907 | $ | 4,257 | $ | 58,867,548 | $ | 518,135 | $ | 3 | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) |
Represents net amount purchased (sold). |
(b) |
All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
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 EAFE Index |
36 | 09/15/23 | $ | 3,797 | $ | 14,811 | ||||||||||
MSCI Emerging Markets Index |
37 | 09/15/23 | 1,812 | (11,755 | ) | |||||||||||
S&P 500 E-Mini Index |
33 | 09/15/23 | 7,451 | 93,017 | ||||||||||||
2-Year U.S. Treasury Note |
9 | 12/29/23 | 1,834 | 6,738 | ||||||||||||
|
|
|||||||||||||||
$ | 102,811 | |||||||||||||||
|
|
Derivative Financial Instruments Categorized by Risk Exposure
As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Commodity Contracts |
Credit Contracts |
Equity Contracts |
Foreign Currency Exchange Contracts |
Interest Rate Contracts |
Other Contracts |
Total | ||||||||||||||||||||||
Assets — Derivative Financial Instruments |
||||||||||||||||||||||||||||
Futures contracts |
||||||||||||||||||||||||||||
Unrealized appreciation on futures contracts(a) |
$ | — | $ | — | $ | 107,828 | $ | — | $ | 6,738 | $ | — | $ | 114,566 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Liabilities — Derivative Financial Instruments |
||||||||||||||||||||||||||||
Futures contracts |
||||||||||||||||||||||||||||
Unrealized depreciation on futures contracts(a) |
$ | — | $ | — | $ | 11,755 | $ | — | $ | — | $ | — | $ | 11,755 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 |
49 |
Schedule of Investments (continued) August 31, 2023 |
iShares® MSCI Global Min Vol Factor ETF |
For the period ended August 31, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:
Commodity Contracts |
Credit Contracts |
Equity Contracts |
Foreign Currency Exchange Contracts |
Interest Contracts |
Other Contracts |
Total | ||||||||||||||||||||||
Net Realized Gain (Loss) from |
||||||||||||||||||||||||||||
Futures contracts |
$ | — | $ | — | $ | 1,549,862 | $ | — | $ | (62,317 | ) | $ | — | $ | 1,487,545 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on |
||||||||||||||||||||||||||||
Futures contracts |
$ | — | $ | — | $ | 623,515 | $ | — | $ | 10,712 | $ | — | $ | 634,227 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
|
||||
Futures contracts: |
||||
Average notional value of contracts — long |
$ | 13,590,611 | ||
|
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.
|
||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Assets |
||||||||||||||||||||||||||||
Investments |
||||||||||||||||||||||||||||
Long-Term Investments |
||||||||||||||||||||||||||||
Common Stocks |
$ | 2,792,580,575 | $ | 1,908,800,086 | $ | 44 | $ | 4,701,380,705 | ||||||||||||||||||||
Short-Term Securities |
||||||||||||||||||||||||||||
Money Market Funds |
58,867,548 | — | — | 58,867,548 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||
$ | 2,851,448,123 | $ | 1,908,800,086 | $ | 44 | $ | 4,760,248,253 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Derivative Financial Instruments(a) |
||||||||||||||||||||||||||||
Assets |
||||||||||||||||||||||||||||
Equity Contracts |
$ | 107,828 | $ | — | $ | — | $ | 107,828 | ||||||||||||||||||||
Interest Rate Contracts |
6,738 | — | — | 6,738 | ||||||||||||||||||||||||
Liabilities |
||||||||||||||||||||||||||||
Equity Contracts |
(11,755 | ) | — | — | (11,755 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||
$ | 102,811 | $ | — | $ | — | 102,811 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
(a) |
Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument. |
See notes to financial statements.
50 |
2 0 2 3 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Statements of Assets and Liabilities
August 31, 2023
iShares Emerging Markets Equity Factor ETF |
iShares ESG Aware EM ETF |
iShares MSCI Emerging Markets ex China ETF |
iShares MSCI Emerging Markets Min Vol Factor ETF |
|||||||||||||
ASSETS |
||||||||||||||||
Investments, at value — unaffiliated(a)(b) |
$ | 605,816,365 | $ | 4,308,400,255 | $ | 5,133,171,764 | $ | 4,483,277,467 | ||||||||
Investments, at value — affiliated(c) |
15,390,096 | 35,144,856 | 40,022,334 | 41,723,121 | ||||||||||||
Cash |
133,926 | 83,787,853 | 43,455,696 | 2,622,731 | ||||||||||||
Cash pledged for futures contracts |
10,000 | 309,000 | 423,000 | 496,000 | ||||||||||||
Foreign currency, at value(d) |
1,300,252 | 26,794,342 | 7,788,732 | 15,573,587 | ||||||||||||
Receivables: |
||||||||||||||||
Investments sold |
— | 201,918,677 | 80,088,969 | 23,921,611 | ||||||||||||
Securities lending income — affiliated |
24,351 | 18,124 | 46,095 | 18,916 | ||||||||||||
Capital shares sold |
— | — | 37,618,392 | — | ||||||||||||
Dividends — unaffiliated |
1,670,753 | 7,149,294 | 10,027,106 | 8,268,879 | ||||||||||||
Dividends — affiliated |
374 | 15,483 | 16,703 | 4,695 | ||||||||||||
Tax reclaims |
140,114 | 455,084 | 146,870 | — | ||||||||||||
Other assets |
— | — | 2,540 | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total assets |
624,486,231 | 4,663,992,968 | 5,352,808,201 | 4,575,907,007 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
LIABILITIES |
||||||||||||||||
Bank borrowings |
— | 82,780,559 | 32,217,666 | — | ||||||||||||
Collateral on securities loaned, at value |
15,390,675 | 35,161,827 | 40,017,762 | 40,399,556 | ||||||||||||
Payables: |
||||||||||||||||
Investments purchased |
101,205 | 214,164,656 | 123,171,749 | 29,471,701 | ||||||||||||
Capital shares redeemed |
— | — | — | 99,654 | ||||||||||||
Deferred foreign capital gain tax |
2,426,802 | 7,062,148 | 9,060,148 | 8,253,414 | ||||||||||||
Investment advisory fees |
129,608 | 938,925 | 1,057,367 | 964,359 | ||||||||||||
Variation .margin on futures contracts |
3,880 | 130,317 | 182,771 | 204,241 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total liabilities |
18,052,170 | 340,238,432 | 205,707,463 | 79,392,925 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Commitments and contingent liabilities |
||||||||||||||||
NET ASSETS |
$ | 606,434,061 | $ | 4,323,754,536 | $ | 5,147,100,738 | $ | 4,496,514,082 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
NET ASSETS CONSIST OF |
||||||||||||||||
Paid-in capital |
$ | 713,948,945 | $ | 5,252,734,158 | $ | 5,536,035,355 | $ | 5,160,344,995 | ||||||||
Accumulated loss |
(107,514,884 | ) | (928,979,622 | ) | (388,934,617 | ) | (663,830,913 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
NET ASSETS |
$ | 606,434,061 | $ | 4,323,754,536 | $ | 5,147,100,738 | $ | 4,496,514,082 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
NET ASSET VALUE |
||||||||||||||||
Shares outstanding |
14,500,000 | 137,900,000 | 100,600,000 | 82,500,000 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net asset value |
$ | 41.82 | $ | 31.35 | $ | 51.16 | $ | 54.50 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Shares authorized |
525 million | 600 million | 200 million | 500 million | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Par value |
$ | 0.001 | $ | 0.001 | $ | 0.001 | $ | 0.001 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
(a) Investments, at cost — unaffiliated |
$ | 588,756,152 | $ | 4,381,820,006 | $ | 5,342,326,780 | $ | 4,079,812,633 | ||||||||
(b) Securities loaned, at value |
$ | 13,462,883 | $ | 33,321,973 | $ | 37,800,341 | $ | 28,925,047 | ||||||||
(c) Investments, at cost — affiliated |
$ | 15,388,487 | $ | 35,140,056 | $ | 40,020,478 | $ | 41,711,298 | ||||||||
(d) Foreign currency, at cost |
$ | 1,345,819 | $ | 26,840,743 | $ | 7,818,605 | $ | 15,603,591 |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S |
51 |
Statements of Assets and Liabilities (continued)
August 31, 2023
iShares MSCI Global Min |
||||
ASSETS |
||||
Investments, at value — unaffiliated(a)(b) |
$ | 4,701,380,705 | ||
Investments, at value — affiliated(c) |
58,867,548 | |||
Cash |
1,224,619 | |||
Cash pledged for futures contracts |
549,000 | |||
Foreign currency, at value(d) |
4,025,010 | |||
Receivables: |
||||
Investments sold |
10,056,271 | |||
Securities lending income — affiliated |
77,427 | |||
Dividends — unaffiliated |
8,924,126 | |||
Dividends — affiliated |
27,318 | |||
Tax reclaims |
3,290,584 | |||
|
|
|||
Total assets |
4,788,422,608 | |||
|
|
|||
LIABILITIES |
||||
Collateral on securities loaned, at value |
51,494,939 | |||
Payables: |
||||
Investments purchased |
12,461,106 | |||
Deferred foreign capital gain tax |
5,061,427 | |||
Investment advisory fees |
805,794 | |||
Variation margin on futures contracts |
55,917 | |||
|
|
|||
Total liabilities |
69,879,183 | |||
|
|
|||
Commitments and contingent liabilities |
||||
NET ASSETS |
$ | 4,718,543,425 | ||
|
|
|||
NET ASSETS CONSIST OF |
||||
Paid-in capital |
$ | 4,502,386,734 | ||
Accumulated earnings |
216,156,691 | |||
|
|
|||
NET ASSETS |
$ | 4,718,543,425 | ||
|
|
|||
NET ASSET VALUE |
||||
Shares outstanding |
48,300,000 | |||
|
|
|||
Net asset value |
$ | 97.69 | ||
|
|
|||
Shares authorized |
500 million | |||
|
|
|||
Par value |
$ | 0.001 | ||
|
|
|||
(a) Investments, at cost — unaffiliated |
$ | 4,234,434,504 | ||
(b) Securities loaned, at value |
$ | 49,595,130 | ||
(c) Investments, at cost — affiliated |
$ | 58,856,936 | ||
(d) Foreign currency, at cost |
$ | 4,039,668 |
See notes to financial statements.
52 |
2 0 2 3 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Year Ended August 31, 2023
iShares Emerging Markets Equity Factor ETF |
iShares ESG Aware MSCI EM ETF |
iShares MSCI Emerging Markets ex China ETF |
iShares MSCI Emerging Markets Min Vol Factor ETF |
|||||||||||||
INVESTMENT INCOME |
||||||||||||||||
Dividends — unaffiliated |
$ | 33,803,843 | $ | 129,996,728 | $ | 123,418,486 | $ | 167,886,970 | ||||||||
Dividends — affiliated |
51,607 | 177,979 | 153,469 | 698,387 | ||||||||||||
Interest — unaffiliated |
— | — | — | 188,802 | ||||||||||||
Securities lending income — affiliated — net |
196,625 | 509,929 | 419,077 | 519,328 | ||||||||||||
Other income — unaffiliated |
— | — | — | 4,120 | ||||||||||||
Foreign taxes withheld |
(3,724,269 | ) | (14,255,976 | ) | (16,199,234 | ) | (17,692,569 | ) | ||||||||
Other foreign taxes |
(479 | ) | (431,020 | ) | (190,866 | ) | (717,760 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total investment income |
30,327,327 | 115,997,640 | 107,600,932 | 150,887,278 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
EXPENSES |
||||||||||||||||
Investment advisory |
2,418,892 | 10,418,712 | 8,546,725 | 37,426,390 | ||||||||||||
Interest expense |
161,536 | 194,398 | 55,447 | 175,825 | ||||||||||||
Commitment costs |
16,575 | 49,961 | 48,101 | 49,961 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total expenses |
2,597,003 | 10,663,071 | 8,650,273 | 37,652,176 | ||||||||||||
Less: |
||||||||||||||||
Investment advisory fees waived |
— | — | — | (23,012,591 | ) | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total expenses after fees waived |
2,597,003 | 10,663,071 | 8,650,273 | 14,639,585 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net investment income |
27,730,324 | 105,334,569 | 98,950,659 | 136,247,693 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
REALIZED AND UNREALIZED GAIN (LOSS) |
||||||||||||||||
Net realized gain (loss) from: |
||||||||||||||||
Investments — unaffiliated(a) |
(49,744,048 | ) | (213,054,221 | ) | (98,422,628 | ) | (611,872,356 | ) | ||||||||
Investments — affiliated |
4,947 | 4,671 | 12,731 | 50,523 | ||||||||||||
Capital gain distributions from underlying funds — affiliated |
2 | 1 | 17 | 5 | ||||||||||||
Forward foreign currency exchange contracts |
1,363 | — | — | — | ||||||||||||
Foreign currency transactions |
(839,334 | ) | (870,409 | ) | (1,672,967 | ) | (4,784,433 | ) | ||||||||
Futures contracts |
(217,207 | ) | 74,649 | (529,822 | ) | (497,547 | ) | |||||||||
In-kind redemptions — unaffiliated(b) |
2,309,958 | 8,274,880 | 422,758 | 107,165,379 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
(48,484,319 | ) | (205,570,429 | ) | (100,189,911 | ) | (509,938,429 | ) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Net change in unrealized appreciation (depreciation) on: |
||||||||||||||||
Investments — unaffiliated(c) |
18,388,287 | 123,314,688 | 197,002,646 | 615,184,061 | ||||||||||||
Investments — affiliated |
(2,228 | ) | (7,424 | ) | (3,904 | ) | (27,932 | ) | ||||||||
Foreign currency translations |
(25,478 | ) | 97,347 | 282,829 | 225,036 | |||||||||||
Futures contracts |
31,631 | (292,296 | ) | 333,086 | 164,487 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
18,392,212 | 123,112,315 | 197,614,657 | 615,545,652 | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net realized and unrealized gain (loss) |
(30,092,107 | ) | (82,458,114 | ) | 97,424,746 | 105,607,223 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
$ | (2,361,783 | ) | $ | 22,876,455 | $ | 196,375,405 | $ | 241,854,916 | |||||||
|
|
|
|
|
|
|
|
|||||||||
(a) Net of foreign capital gain tax and capital gain tax refund, if applicable of |
$ | (1,609,653 | ) | $ | (3,059,643 | ) | $ | (548,213 | ) | $ | (1,505,428 | ) | ||||
(b) See Note 2 of the Notes to Financial Statements |
||||||||||||||||
(c) Net of reduction/increase in deferred foreign capital gain tax of |
$ | (137,118 | ) | $ | 562,829 | $ | (6,610,517 | ) | $ | (4,619,586 | ) |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S |
53 |
Statements of Operations (continued)
Year Ended August 31, 2023
iShares MSCI Global Min Vol Factor ETF |
||||
INVESTMENT INCOME |
||||
Dividends — unaffiliated |
$ | 127,405,581 | ||
Dividends — affiliated |
300,432 | |||
Securities lending income — affiliated — net |
217,703 | |||
Other income — unaffiliated |
12,088 | |||
Foreign taxes withheld |
(8,715,442 | ) | ||
Foreign withholding tax claims |
187,160 | |||
Other foreign taxes |
(189,245 | ) | ||
|
|
|||
Total investment income |
119,218,277 | |||
|
|
|||
EXPENSES |
||||
Investment advisory |
13,615,898 | |||
Commitment costs |
47,650 | |||
Interest expense |
43,577 | |||
Professional |
19,930 | |||
|
|
|||
Total expenses |
13,727,055 | |||
Less: |
||||
Investment advisory fees waived |
(4,618,321 | ) | ||
|
|
|||
Total expenses after fees waived |
9,108,734 | |||
|
|
|||
Net investment income |
110,109,543 | |||
|
|
|||
REALIZED AND UNREALIZED GAIN (LOSS) |
||||
Net realized gain (loss) from: |
||||
Investments — unaffiliated(a) |
(78,527,738 | ) | ||
Investments — affiliated |
9,907 | |||
Capital gain distributions from underlying funds — affiliated |
3 | |||
Foreign currency transactions |
(2,063,136 | ) | ||
Futures contracts |
1,487,545 | |||
In-kind redemptions — unaffiliated(b) |
69,822,260 | |||
|
|
|||
(9,271,159 | ) | |||
|
|
|||
Net change in unrealized appreciation (depreciation) on: |
||||
Investments — unaffiliated(c) |
120,318,690 | |||
Investments — affiliated |
4,257 | |||
Foreign currency translations |
455,370 | |||
Futures contracts |
634,227 | |||
|
|
|||
121,412,544 | ||||
|
|
|||
Net realized and unrealized gain |
112,141,385 | |||
|
|
|||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS |
$ | 222,250,928 | ||
|
|
|||
(a) Net of foreign capital gain tax and capital gain tax refund, if applicable of |
$ | (790,383 | ) | |
(b) See Note 2 of the Notes to Financial Statements. |
||||
(c) Net of increase in deferred foreign capital gain tax of |
$ | (168,305 | ) |
See notes to financial statements.
54 |
2 0 2 3 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Statements of Changes in Net Assets
iShares Emerging Markets Equity Factor ETF |
iShares ESG Aware MSCI EM ETF |
|||||||||||||||||||
Year Ended 08/31/23 |
Year Ended 08/31/22 |
Year Ended 08/31/23 |
Year Ended 08/31/22 |
|||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS |
|
|||||||||||||||||||
OPERATIONS |
||||||||||||||||||||
Net investment income |
$ | 27,730,324 | $ | 28,827,105 | $ | 105,334,569 | $ | 130,794,394 | ||||||||||||
Net realized loss |
(48,484,319 | ) | (12,052,611 | ) | (205,570,429 | ) | (410,931,587 | ) | ||||||||||||
Net change in unrealized appreciation (depreciation) |
18,392,212 | (173,736,750 | ) | 123,112,315 | (1,506,377,431 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net increase (decrease) in net assets resulting from operations |
(2,361,783 | ) | (156,962,256 | ) | 22,876,455 | (1,786,514,624 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) |
||||||||||||||||||||
Decrease in net assets resulting from distributions to shareholders |
(30,828,923 | ) | (24,269,864 | ) | (98,049,319 | ) | (171,869,925 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
CAPITAL SHARE TRANSACTIONS |
||||||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions |
(193,183,181 | ) | 252,840,861 | 147,402,728 | (895,534,243 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
NET ASSETS |
||||||||||||||||||||
Total increase (decrease) in net assets |
(226,373,887 | ) | 71,608,741 | 72,229,864 | (2,853,918,792 | ) | ||||||||||||||
Beginning of year |
832,807,948 | 761,199,207 | 4,251,524,672 | 7,105,443,464 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
End of year |
$ | 606,434,061 | $ | 832,807,948 | $ | 4,323,754,536 | $ | 4,251,524,672 | ||||||||||||
|
|
|
|
|
|
|
|
(a) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S |
55 |
Statements of Changes in Net Assets (continued)
iShares MSCI Emerging Markets ex China ETF |
iShares MSCI Emerging Markets Min Vol Factor ETF |
|||||||||||||||||||
Year Ended 08/31/23 |
Year Ended 08/31/22 |
Year Ended 08/31/23 |
Year Ended 08/31/22 |
|||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS |
|
|||||||||||||||||||
OPERATIONS |
||||||||||||||||||||
Net investment income |
$ | 98,950,659 | $ | 72,722,303 | $ | 136,247,693 | $ | 136,267,262 | ||||||||||||
Net realized gain (loss) |
(100,189,911 | ) | (90,777,201 | ) | (509,938,429 | ) | 201,551,744 | |||||||||||||
Net change in unrealized appreciation (depreciation) |
197,614,657 | (505,422,090 | ) | 615,545,652 | (898,895,137 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net increase (decrease) in net assets resulting from operations |
196,375,405 | (523,476,988 | ) | 241,854,916 | (561,076,131 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) |
||||||||||||||||||||
Decrease in net assets resulting from distributions to shareholders |
(83,177,048 | ) | (51,969,537 | ) | (153,732,586 | ) | (76,156,771 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
CAPITAL SHARE TRANSACTIONS |
||||||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions |
2,726,740,408 | 1,601,141,901 | (1,768,751,802 | ) | 2,939,861,974 | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
NET ASSETS |
||||||||||||||||||||
Total increase (decrease) in net assets |
2,839,938,765 | 1,025,695,376 | (1,680,629,472 | ) | 2,302,629,072 | |||||||||||||||
Beginning of year |
2,307,161,973 | 1,281,466,597 | 6,177,143,554 | 3,874,514,482 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
End of year |
$ | 5,147,100,738 | $ | 2,307,161,973 | $ | 4,496,514,082 | $ | 6,177,143,554 | ||||||||||||
|
|
|
|
|
|
|
|
(a) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
56 |
2 0 2 3 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Statements of Changes in Net Assets (continued)
iShares MSCI Global Min Vol Factor ETF |
||||||||
|
Year Ended 08/31/23 |
Year Ended 08/31/22 |
||||||
INCREASE (DECREASE) IN NET ASSETS |
||||||||
OPERATIONS |
||||||||
Net investment income |
$ | 110,109,543 | $ | 106,780,084 | ||||
Net realized gain (loss) |
(9,271,159 | ) | 218,127,905 | |||||
Net change in unrealized appreciation (depreciation) |
121,412,544 | (785,770,593 | ) | |||||
|
|
|
|
|||||
Net increase (decrease) in net assets resulting from operations |
222,250,928 | (460,862,604 | ) | |||||
|
|
|
|
|||||
DISTRIBUTIONS TO SHAREHOLDERS(a) |
||||||||
Decrease in net assets resulting from distributions to shareholders |
(98,968,869 | ) | (98,218,027 | ) | ||||
|
|
|
|
|||||
CAPITAL SHARE TRANSACTIONS |
||||||||
Net increase (decrease) in net assets derived from capital share transactions |
118,692,307 | (270,611,429 | ) | |||||
|
|
|
|
|||||
NET ASSETS |
||||||||
Total increase (decrease) in net assets |
241,974,366 | (829,692,060 | ) | |||||
Beginning of year |
4,476,569,059 | 5,306,261,119 | ||||||
|
|
|
|
|||||
End of year |
$ | 4,718,543,425 | $ | 4,476,569,059 | ||||
|
|
|
|
(a) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S |
57 |
(For a share outstanding throughout each period)
iShares Emerging Markets Equity Factor ETF | ||||||||||||||||||||
Year Ended 08/31/23 |
Year Ended 08/31/22 |
Year Ended 08/31/21 |
Year Ended 08/31/20 |
Year Ended 08/31/19 |
||||||||||||||||
Net asset value, beginning of year |
$ | 43.38 | $ | 53.61 | $ | 44.03 | $ | 40.35 | $ | 44.78 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net investment income(a) |
1.46 | 1.64 | 1.23 | 1.11 | 1.47 | |||||||||||||||
Net realized and unrealized gain (loss)(b) |
(1.38 | ) | (10.49 | ) | 9.24 | 3.73 | (4.72 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net increase (decrease) from investment operations |
0.08 | (8.85 | ) | 10.47 | 4.84 | (3.25 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Distributions from net investment income(c) |
(1.64 | ) | (1.38 | ) | (0.89 | ) | (1.16 | ) | (1.18 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net asset value, end of year |
$ | 41.82 | $ | 43.38 | $ | 53.61 | $ | 44.03 | $ | 40.35 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Return(d) |
||||||||||||||||||||
Based on net asset value |
0.30 | % | (16.80 | )% | 23.97 | % | 12.17 | % | (7.16 | )% | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Ratios to Average Net Assets(e) |
||||||||||||||||||||
Total expenses |
0.33 | % | 0.45 | % | 0.45 | % | 0.45 | % | 0.45 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total expenses after fees waived |
0.33 | % | 0.45 | % | 0.45 | % | 0.45 | % | 0.45 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net investment income |
3.51 | % | 3.41 | % | 2.44 | % | 2.71 | % | 3.55 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Supplemental Data |
||||||||||||||||||||
Net assets, end of year (000) |
$ | 606,434 | $ | 832,808 | $ | 761,199 | $ | 541,608 | $ | 411,575 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Portfolio turnover rate(f) |
121 | % | 54 | % | 49 | % | 45 | % | 53 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
(a) |
Based on average shares outstanding. |
(b) |
The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(c) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(d) |
Where applicable, assumes the reinvestment of distributions. |
(e) |
Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(f) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
58 |
2 0 2 3 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares ESG Aware MSCI EM ETF | ||||||||||||||||||||
Year Ended 08/31/23 |
Year Ended 08/31/22 |
Year Ended 08/31/21 |
Year Ended 08/31/20 |
Year Ended 08/31/19 |
||||||||||||||||
Net asset value, beginning of year |
$ | 31.56 | $ | 43.35 | $ | 35.93 | $ | 32.03 | $ | 33.65 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net investment income(a) |
0.78 | 0.83 | 0.75 | 0.89 | 0.91 | |||||||||||||||
Net realized and unrealized gain (loss)(b) |
(0.23 | ) | (11.51 | ) | 7.23 | 3.89 | (1.85 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net increase (decrease) from investment operations |
0.55 | (10.68 | ) | 7.98 | 4.78 | (0.94 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Distributions from net investment income(c) |
(0.76 | ) | (1.11 | ) | (0.56 | ) | (0.88 | ) | (0.68 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net asset value, end of year |
$ | 31.35 | $ | 31.56 | $ | 43.35 | $ | 35.93 | $ | 32.03 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Return(d) |
||||||||||||||||||||
Based on net asset value |
1.81 | % | (25.08 | )% | 22.30 | % | 15.11 | % | (2.76 | )% | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Ratios to Average Net Assets(e) |
||||||||||||||||||||
Total expenses |
0.26 | % | 0.25 | % | 0.25 | % | 0.25 | % | 0.25 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net investment income |
2.53 | % | 2.20 | % | 1.76 | % | 2.75 | % | 2.76 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Supplemental Data |
||||||||||||||||||||
Net assets, end of year (000) |
$ | 4,323,755 | $ | 4,251,525 | $ | 7,105,443 | $ | 3,654,480 | $ | 672,543 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Portfolio turnover rate(f) |
38 | % | 41 | % | 41 | % | 46 | % | 34 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
(a) |
Based on average shares outstanding. |
(b) |
The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(c) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(d) |
Where applicable, assumes the reinvestment of distributions. |
(e) |
Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(f) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
F I N A N C I A L H I G H L I G H T S |
59 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares MSCI Emerging Markets ex China ETF | ||||||||||||||||||||
Year Ended 08/31/23 |
Year Ended 08/31/22 |
Year Ended 08/31/21 |
Year Ended 08/31/20 |
Year Ended 08/31/19 |
||||||||||||||||
Net asset value, beginning of period |
$ | 49.62 | $ | 62.82 | $ | 46.00 | $ | 46.25 | $ | 49.59 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net investment income(a) |
1.45 | 1.86 | 1.58 | 1.46 | 1.62 | |||||||||||||||
Net realized and unrealized gain (loss)(b) |
1.31 | (13.73 | ) | 16.09 | (0.05 | ) | (3.83 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net increase (decrease) from investment operations |
2.76 | (11.87 | ) | 17.67 | 1.41 | (2.21 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Distributions from net investment income(c) |
(1.22 | ) | (1.33 | ) | (0.85 | ) | (1.66 | ) | (1.13 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net asset value, end of period |
$ | 51.16 | $ | 49.62 | $ | 62.82 | $ | 46.00 | $ | 46.25 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Return(d) |
||||||||||||||||||||
Based on net asset value |
5.69 | % | (19.17 | )% | 38.66 | % | 2.87 | % | (4.42 | )% | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Ratios to Average Net Assets(e) |
||||||||||||||||||||
Total expenses |
0.25 | % | 0.25 | % | 0.25 | % | 0.36 | % | 0.49 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total expenses after fees waived |
0.25 | % | 0.25 | % | 0.22 | % | 0.16 | % | 0.26 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net investment income |
2.89 | % | 3.34 | % | 2.65 | % | 3.24 | % | 3.38 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Supplemental Data |
||||||||||||||||||||
Net assets, end of period (000) |
$ | 5,147,101 | $ | 2,307,162 | $ | 1,281,467 | $ | 73,606 | $ | 27,748 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Portfolio turnover rate(f) |
13 | % | 21 | % | 51 | % | 18 | % | 10 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
(a) |
Based on average shares outstanding. |
(b) |
The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(c) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(d) |
Where applicable, assumes the reinvestment of distributions. |
(e) |
Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(f) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
60 |
2 0 2 3 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares MSCI Emerging Markets Min Vol Factor ETF | ||||||||||||||||||||||||||||||||||||
Year Ended 08/31/23 |
Year Ended 08/31/22 |
Year Ended 08/31/21(a) |
Year Ended 08/31/20(a) |
Year Ended 08/31/19(a) |
||||||||||||||||||||||||||||||||
Net asset value, beginning of year |
$ | 54.86 | $ | 63.94 | $ | 55.97 | $ | 56.84 | $ | 59.22 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Net investment income(b) |
1.25 | 1.87 | 1.32 | (c) | 1.42 | 1.57 | ||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss)(d) |
(0.38 | ) | (9.86 | ) | 8.12 | (0.82 | ) | (2.46 | ) | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Net increase (decrease) from investment operations |
0.87 | (7.99 | ) | 9.44 | 0.60 | (0.89 | ) | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Distributions from net investment income(e) |
(1.23 | ) | (1.09 | ) | (1.47 | ) | (1.47 | ) | (1.49 | ) | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Net asset value, end of year |
$ | 54.50 | $ | 54.86 | $ | 63.94 | $ | 55.97 | $ | 56.84 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total Return(f) |
||||||||||||||||||||||||||||||||||||
Based on net asset value |
1.62 | % | (12.68 | )% | 17.04 | %(c) | 1.07 | % | (1.44 | )%(g) | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Ratios to Average Net Assets(h) |
||||||||||||||||||||||||||||||||||||
Total expenses |
0.64 | % | 0.69 | % | 0.69 | % | 0.70 | % | 0.68 | % | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total expenses after fees waived |
0.25 | % | 0.25 | % | 0.25 | % | 0.25 | % | 0.25 | % | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total expenses excluding professional fees for foreign withholding tax claims |
N/A | 0.69 | % | 0.69 | % | N/A | N/A | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Net investment income |
2.32 | % | 3.14 | % | 2.15 | %(c) | 2.59 | % | 2.71 | % | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Supplemental Data |
||||||||||||||||||||||||||||||||||||
Net assets, end of year (000) |
$ | 4,496,514 | $ | 6,177,144 | $ | 3,874,514 | $ | 4,248,258 | $ | 5,417,265 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Portfolio turnover rate(i) |
58 | % | 26 | % | 38 | % | 23 | % | 24 | % | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) |
Consolidated Financial Highlights. |
(b) |
Based on average shares outstanding. |
(c) |
Reflects the positive effect of foreign withholding tax claims, net of the associated professional fees, which resulted in the following increases for the year ended August 31, 2021: |
• Net investment income per share by $0.01.
• Total return by 0.02%.
• Ratio of net investment income to average net assets by 0.01%.
(d) |
The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(e) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(f) |
Where applicable, assumes the reinvestment of distributions. |
(g) |
Includes payment received from an affiliate, which had no impact on the Fund’s total return. |
(h) |
Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(i) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
F I N A N C I A L H I G H L I G H T S |
61 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares MSCI Global Min Vol Factor ETF | ||||||||||||||||||||||||||||||||||||
Year Ended 08/31/23 |
Year Ended 08/31/22 |
Year Ended 08/31/21 |
Year Ended 08/31/20 |
Year Ended 08/31/19 |
||||||||||||||||||||||||||||||||
Net asset value, beginning of year |
$ | 95.04 | $ | 106.77 | $ | 93.16 | $ | 93.54 | $ | 87.04 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Net investment income(a) |
2.32 | 2.18 | 1.97 | 2.13 | 2.16 | |||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss)(b) |
2.40 | (11.91 | ) | 13.38 | (0.18 | ) | 6.36 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Net increase (decrease) from investment operations |
4.72 | (9.73 | ) | 15.35 | 1.95 | 8.52 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Distributions from net investment income(c) |
(2.07 | ) | (2.00 | ) | (1.74 | ) | (2.33 | ) | (2.02 | ) | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Net asset value, end of year |
$ | 97.69 | $ | 95.04 | $ | 106.77 | $ | 93.16 | $ | 93.54 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total Return(d) |
||||||||||||||||||||||||||||||||||||
Based on net asset value |
5.00 | %(e) | (9.21 | )% | 16.63 | % | 2.13 | % | 9.99 | % | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Ratios to Average Net Assets(f) |
||||||||||||||||||||||||||||||||||||
Total expenses |
0.30 | % | 0.32 | % | 0.32 | % | 0.32 | % | 0.32 | % | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total expenses after fees waived |
0.20 | % | 0.20 | % | 0.20 | % | 0.20 | % | 0.20 | % | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total expenses excluding professional fees for foreign withholding tax claims |
0.30 | % | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Net investment income |
2.42 | % | 2.13 | % | 2.00 | % | 2.33 | % | 2.45 | % | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Supplemental Data |
||||||||||||||||||||||||||||||||||||
Net assets, end of year (000) |
$ | 4,718,543 | $ | 4,476,569 | $ | 5,306,261 | $ | 5,924,818 | $ | 5,275,720 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Portfolio turnover rate(g) |
22 | % | 23 | % | 25 | % | 22 | % | 21 | % | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) |
Based on average shares outstanding. |
(b) |
The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(c) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(d) |
Where applicable, assumes the reinvestment of distributions. |
(e) |
Reflects the positive effect of foreign withholding tax claims, net of the associated professional fees, which resulted in the following increases for the year ended August 31, 2023: |
• Total return by 0.01%.
(f) |
Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(g) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
62 |
2 0 2 3 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
1. |
ORGANIZATION |
iShares, Inc. (the “Company”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Company is organized as a Maryland corporation and is authorized to have multiple series or portfolios.
These financial statements relate only to the following funds (each, a “Fund” and collectively, the “Funds”):
iShares ETF | Diversification Classification | |
Emerging Markets Equity Factor(a) |
Diversified | |
ESG Aware MSCI EM |
Diversified | |
MSCI Emerging Markets ex China |
Diversified | |
MSCI Emerging Markets Min Vol Factor |
Diversified | |
MSCI Global Min Vol Factor |
Diversified |
(a) |
Formerly the iShares MSCI Emerging Markets Multifactor ETF |
2. |
SIGNIFICANT ACCOUNTING POLICIES |
The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:
Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recorded on the ex-dividend date. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Dividends from foreign securities where the ex-dividend date may have passed are subsequently recorded when the Funds are informed of the ex-dividend date. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Upon notification from issuers or as estimated by management, a portion of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized daily on an accrual basis.
Foreign Currency Translation: Each Fund’s books and records are maintained in U.S. dollars. Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of investments are recorded at the rates of exchange prevailing on the respective dates of such transactions. Generally, when the U.S. dollar rises in value against a foreign currency, the investments denominated in that currency will lose value; the opposite effect occurs if the U.S. dollar falls in relative value.
Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of investments for financial reporting purposes. Accordingly, the effects of changes in exchange rates on investments are not segregated in the Statements of Operations from the effects of changes in market prices of those investments, but are included as a component of net realized and unrealized gain (loss) from investments. Each Fund reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes.
Foreign Taxes: The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its Statements of Operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “Other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of August 31, 2023, if any, are disclosed in the Statements of Assets and Liabilities.
The Funds file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. The Funds may record a reclaim receivable based on collectability, which includes factors such as the jurisdiction’s applicable laws, payment history and market convention. The Statements of Operations includes tax reclaims recorded as well as professional and other fees, if any, associated with recovery of foreign withholding taxes.
Collateralization: If required by an exchange or counterparty agreement, the Funds may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments.
In-kind Redemptions: For financial reporting purposes, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or net asset value (“NAV”) per share.
N O T E S T O F I N A N C I A L S T A T E M E N T S |
63 |
Notes to Financial Statements (continued)
Distributions: Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds.
Indemnifications: In the normal course of business, each Fund enters into contracts that contain a variety of representations that provide general indemnification. The Funds’ maximum exposure under these arrangements is unknown because it involves future potential claims against the Funds, which cannot be predicted with any certainty.
3. |
INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS |
Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Board of Directors of the Company (the “Board”) of each Fund has approved the designation of BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, as the valuation designee for each Fund. Each Fund determines the fair values of its financial instruments using various independent dealers or pricing services under BFA’s policies. If a security’s market price is not readily available or does not otherwise accurately represent the fair value of the security, the security will be valued in accordance with BFA’s policies and procedures as reflecting fair value. BFA has formed a committee (the “Valuation Committee”) to develop pricing policies and procedures and to oversee the pricing function for all financial instruments, with assistance from other BlackRock pricing committees.
Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:
· |
Equity investments traded on a recognized securities exchange are valued at that day’s official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price. |
· |
Exchange-traded funds and closed-end funds traded on a recognized securities exchange are valued at that day’s official closing price, as applicable, on the exchange where the fund is primarily traded. Funds traded on a recognized exchange for which there were no sales on that day may be valued at the last traded price. |
· |
Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published NAV. |
· |
Futures contracts are valued based on that day’s last reported settlement or trade price on the exchange where the contract is traded. |
· |
Forward foreign currency exchange contracts are valued at the mean between the bid and ask prices and are determined as of the close of trading on the New York Stock Exchange (“NYSE”) based on that day’s prevailing forward exchange rate for the underlying currencies. |
Generally, trading in foreign instruments is substantially completed each day at various times prior to the close of trading on the New York Stock Exchange (“NYSE”). Each business day, the Funds use current market factors supplied by independent pricing services to value certain foreign instruments (“Systematic Fair Value Price”). The Systematic Fair Value Price is designed to value such foreign securities at fair value as of the close of trading on the NYSE, which follows the close of the local markets.
If events (e.g., market volatility, company announcement or a natural disaster) occur that are expected to materially affect the value of such investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Valuation Committee, in accordance with BFA’s policies and procedures as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Valuation Committee include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Valuation Committee seeks to determine the price that each Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Valuation Committee deems relevant and consistent with the principles of fair value measurement.
Fair value pricing could result in a difference between the prices used to calculate a fund’s NAV and the prices used by the fund’s underlying index, which in turn could result in a difference between the fund’s performance and the performance of the fund’s underlying index.
Fair Value Hierarchy: Various inputs are used in determining the fair value of financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:
· |
Level 1 – Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that each Fund has the ability to access; |
· |
Level 2 – Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs); and |
· |
Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, (including the Valuation Committee’s assumptions used in determining the fair value of financial instruments). |
64 |
2 0 2 3 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements (continued)
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds that may not have a secondary market and/or may have a limited number of investors. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.
4. |
SECURITIES AND OTHER INVESTMENTS |
Securities Lending: Each Fund may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by an approved bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund or excess collateral is returned by the Fund, on the next business day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.
As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested in money market funds managed by BFA, or its affiliates is disclosed in the Schedule of Investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan, if any, are also disclosed in each Fund’s Schedule of Investments. The market value of any securities on loan and the value of any related cash collateral are disclosed in the Statements of Assets and Liabilities.
Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (each, an “MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the Funds, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the Funds can reinvest cash collateral received in connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell or re-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.
As of period end, the following table is a summary of the securities on loan by counterparty which are subject to offset under an MSLA:
iShares ETF and Counterparty |
|
Securities Loaned at Value |
|
|
Cash Collateral Received |
(a) |
|
Non-Cash Collateral Received, at Fair Value |
(a) |
Net Amount | ||||||
Emerging Markets Equity Factor |
||||||||||||||||
Barclays Bank PLC |
$ | 170,469 | $ | (170,469 | ) | $ | — | $ | — | |||||||
BARCLAYS CAPITAL INC. |
7,084,473 | (7,084,473 | ) | — | — | |||||||||||
BNP Paribas Prime Brokerage International Ltd. |
273,371 | (273,371 | ) | — | — | |||||||||||
Citigroup Global Markets, Inc. |
33,355 | (33,355 | ) | — | — | |||||||||||
GOLDMAN SACHS & CO. |
436,451 | (436,451 | ) | — | — | |||||||||||
HSBC Bank PLC |
1,880,903 | (1,880,903 | ) | — | — | |||||||||||
J.P. Morgan Securities LLC |
1,027,561 | (1,027,561 | ) | — | — | |||||||||||
Macquarie Bank Ltd. |
108,107 | (108,107 | ) | — | — | |||||||||||
Morgan Stanley & Co. LLC |
1,996,400 | (1,996,400 | ) | — | — | |||||||||||
SG AMERICAS Securities LLC |
355,030 | (355,030 | ) | — | — | |||||||||||
UBS AG |
5,273 | (5,273 | ) | — | — | |||||||||||
Wells Fargo Securities LLC |
91,490 | (91,490 | ) | — | — | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 13,462,883 | $ | (13,462,883 | ) | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
|
N O T E S T O F I N A N C I A L S T A T E M E N T S |
65 |
Notes to Financial Statements (continued)
iShares ETF and Counterparty |
|
Securities Loaned at Value |
|
|
Cash Collateral Received |
(a) |
|
Non-Cash Collateral Received, at Fair Value |
(a) |
Net Amount | ||||||
ESG Aware MSCI EM |
||||||||||||||||
BNP Paribas SA |
$ | 2,063,243 | $ | (2,063,243 | ) | $ | — | $ | — | |||||||
HSBC Bank PLC |
9,365,431 | (9,365,431 | ) | — | — | |||||||||||
J.P. Morgan Securities LLC |
14,114,300 | (14,114,300 | ) | — | — | |||||||||||
Macquarie Bank Ltd. |
80,076 | (80,076 | ) | — | — | |||||||||||
Morgan Stanley |
12,871 | (12,871 | ) | — | — | |||||||||||
Nomura Securities International, Inc. |
42,107 | (42,107 | ) | — | — | |||||||||||
SG Americas Securities LLC |
217,902 | (217,902 | ) | — | — | |||||||||||
State Street Bank & Trust Co. |
194,416 | (194,416 | ) | — | — | |||||||||||
UBS AG |
7,231,627 | (7,231,627 | ) | — | — | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 33,321,973 | $ | (33,321,973 | ) | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
|
|||||||||
MSCI Emerging Markets ex China |
||||||||||||||||
Barclays Capital, Inc. |
$ | 1,087,789 | $ | (1,087,789 | ) | $ | — | $ | — | |||||||
J.P. Morgan Securities LLC |
2,770,407 | (2,770,407 | ) | — | — | |||||||||||
Jefferies LLC |
19,421,186 | (19,421,186 | ) | — | — | |||||||||||
Morgan Stanley |
11,072,852 | (11,072,852 | ) | — | — | |||||||||||
Nomura Securities International, Inc. |
2,448,897 | (2,448,897 | ) | — | — | |||||||||||
UBS AG |
999,210 | (999,210 | ) | — | — | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 37,800,341 | $ | (37,800,341 | ) | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
|
|||||||||
MSCI Emerging Markets Min Vol Factor |
||||||||||||||||
BofA Securities, Inc. |
$ | 9,992,141 | $ | (9,992,141 | ) | $ | — | $ | — | |||||||
Credit Suisse Securities (USA) LLC |
110,753 | (110,753 | ) | — | — | |||||||||||
Goldman Sachs & Co. LLC |
8,879,467 | (8,879,467 | ) | — | — | |||||||||||
HSBC Bank PLC |
3,795,880 | (3,795,880 | ) | — | — | |||||||||||
J.P. Morgan Securities LLC |
3,330,714 | (3,330,714 | ) | — | — | |||||||||||
Morgan Stanley |
2,816,092 | (2,816,092 | ) | — | — | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 28,925,047 | $ | (28,925,047 | ) | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
|
|||||||||
MSCI Global Min Vol Factor |
||||||||||||||||
Barclays Bank PLC |
$ | 15,554,746 | $ | (15,554,746 | ) | $ | — | $ | — | |||||||
HSBC Bank PLC |
166,138 | (166,138 | ) | — | — | |||||||||||
J.P. Morgan Securities LLC |
254,377 | (254,377 | ) | — | — | |||||||||||
Macquarie Bank Limited |
135,236 | (135,236 | ) | — | — | |||||||||||
Morgan Stanley |
16,191,311 | (16,191,311 | ) | — | — | |||||||||||
RBC Capital Markets LLC |
10,938,937 | (10,938,937 | ) | — | — | |||||||||||
SG Americas Securities LLC |
886,147 | (886,147 | ) | — | — | |||||||||||
State Street Bank & Trust Co. |
5,188,615 | (5,188,615 | ) | — | — | |||||||||||
Wells Fargo Bank, National Association |
279,623 | (279,623 | ) | — | — | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 49,595,130 | $ | (49,595,130 | ) | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
|
(a) |
Collateral received, if any, in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Fund’s Statements of Assets and Liabilities. |
The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, each Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned to the extent the collateral received does not cover the value of the securities loaned in the event of borrower default. Each Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by each Fund.
5. |
DERIVATIVE FINANCIAL INSTRUMENTS |
Futures Contracts: Futures contracts are purchased or sold to gain exposure to, or manage exposure to, changes in interest rates (interest rate risk) and changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk).
Futures contracts are exchange-traded agreements between the Funds and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, the Funds are required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Amounts pledged, which are considered restricted, are included in cash pledged for futures contracts in the Statements of Assets and Liabilities.
66 |
2 0 2 3 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements (continued)
Securities deposited as initial margin are designated in the Schedule of Investments and cash deposited, if any, are shown as cash pledged for futures contracts in the Statements of Assets and Liabilities. Pursuant to the contract, the Funds agree to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as variation margin receivable (or payable) on futures contracts in the Statements of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statements of Operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest rates, foreign currency exchange rates or underlying assets.
Forward Foreign Currency Exchange Contracts: Forward foreign currency exchange contracts are entered into to gain or reduce exposure to foreign currencies (foreign currency exchange rate risk).
A forward foreign currency exchange contract is an agreement between two parties to buy and sell a currency at a set exchange rate on a specified date. These contracts help to manage the overall exposure to the currencies in which some of the investments held by the Funds are denominated and in some cases, may be used to obtain exposure to a particular market.The contracts are traded over-the-counter (“OTC”) and not on an organized exchange.
The contract is marked-to-market daily and the change in market value is recorded as unrealized appreciation or depreciation in the Statements of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statements of Operations equal to the difference between the value at the time it was opened and the value at the time it was closed. Non-deliverable forward foreign currency exchange contracts are settled with the counterparty in cash without the delivery of foreign currency. The use of forward foreign currency exchange contracts involves the risk that the value of a contract changes unfavorably due to movements in the value of the referenced foreign currencies, and such value may exceed the amount(s) reflected in the Statements of Assets and Liabilities. Cash amounts pledged for forward foreign currency exchange contracts are considered restricted and are included in cash pledged as collateral for OTC derivatives in the Statements of Assets and Liabilities. A fund’s risk of loss from counterparty credit risk on OTC derivatives is generally limited to the aggregate unrealized gain netted against any collateral held by the Fund.
Master Netting Arrangements: In order to define its contractual rights and to secure rights that will help mitigate its counterparty risk, a Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with its derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between a Fund and a counterparty that governs certain OTC derivatives and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, a Fund may, under certain circumstances, offset with the counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default including the bankruptcy or insolvency of the counterparty. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy, insolvency, or other events.
For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the mark-to-market amount for each transaction under such agreement, and comparing that amount to the value of any collateral currently pledged by a fund and the counterparty.
Cash collateral that has been pledged to cover obligations of the Funds and cash collateral received from the counterparty, if any, is reported separately in the Statements of Assets and Liabilities as cash pledged as collateral and cash received as collateral, respectively. Non-cash collateral pledged by the Funds, if any, is noted in the Schedules of Investments. Generally, the amount of collateral due from or to a counterparty is subject to a certain minimum transfer amount threshold before a transfer is required, which is determined at the close of business of the Funds. Any additional required collateral is delivered to/pledged by the Funds on the next business day. Typically, the counterparty is not permitted to sell, re-pledge or use cash and non-cash collateral it receives. A fund generally agrees not to use non-cash collateral that it receives but may, absent default or certain other circumstances defined in the underlying ISDA Master Agreement, be permitted to use cash collateral received. In such cases, interest may be paid pursuant to the collateral arrangement with the counterparty. To the extent amounts due to the Funds from the counterparty are not fully collateralized, each Fund bears the risk of loss from counterparty non-performance. Likewise, to the extent the Funds have delivered collateral to a counterparty and stand ready to perform under the terms of their agreement with such counterparty, each Fund bears the risk of loss from a counterparty in the amount of the value of the collateral in the event the counterparty fails to return such collateral. Based on the terms of agreements, collateral may not be required for all derivative contracts.
For financial reporting purposes, each Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements, if any, in the Statements of Assets and Liabilities.
6. |
INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES |
Investment Advisory Fees: Pursuant to an Investment Advisory Agreement with the Company, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent directors).
N O T E S T O F I N A N C I A L S T A T E M E N T S |
67 |
Notes to Financial Statements (continued)
For its investment advisory services to each of the following Funds, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, based on the average daily net assets of each Fund as follows:
iShares ETF | Investment Advisory Fees |
|||
Emerging Markets Equity Factor | 0.25% | |||
ESG Aware MSCI EM |
0.25 | |||
MSCI Emerging Markets ex China |
0.25 | |||
MSCI Emerging Markets Min Vol Factor |
0.25 | |||
MSCI Global Min Vol Factor |
0.20 |
Effective December 16, 2022, for its investment advisory services to the iShares Emerging Markets Equity Factor ETF, BFA is entitled to an annual investment advisory fee of 0.25%, accrued daily and paid monthly by the Fund, based on the average daily net assets of the Fund. Prior to December 16, 2022, BFA was entitled to an annual investment advisory fee of 0.45%, accrued daily and paid monthly by the Fund, based on the average daily net assets of the Fund.
Effective June 30, 2023, for its investment advisory services to the iShares MSCI Emerging Markets Min Vol Factor ETF, BFA is entitled to an annual investment advisory fee of 0.25%, accrued daily and paid monthly by the Fund, based on the average daily net assets of the Fund.
Prior to June 30, 2023, for its investment advisory services to the iShares MSCI Emerging Markets Min Vol Factor ETF, BFA was entitled to an annual investment advisory fee, accrued daily and paid monthly by the Fund, based on the Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:
Aggregate Average Daily Net Assets | Investment Advisory Fees |
|||
First $14 billion |
0.75 | % | ||
Over $14 billion, up to and including $28 billion |
0.68 | |||
Over $28 billion, up to and including $42 billion |
0.61 | |||
Over $42 billion, up to and including $56 billion |
0.54 | |||
Over $56 billion, up to and including $70 billion |
0.47 | |||
Over $70 billion, up to and including $84 billion |
0.41 | |||
Over $84 billion |
0.35 |
Effective June 30, 2023, for its investment advisory services to the iShares MSCI Global Min Vol Factor ETF, BFA is entitled to an annual investment advisory fee of 0.20%, accrued daily and paid monthly by the Fund, based on the average daily net assets of the Fund.
Prior to June 30, 2023, for its investment advisory services to the iShares MSCI Global Min Vol Factor ETF, BFA was entitled to an annual investment advisory fee, accrued daily and paid monthly by the Fund, based on the Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:
Aggregate Average Daily Net Assets | Investment Advisory Fees |
|||
First $30 billion |
0.350 | % | ||
Over $30 billion, up to and including $60 billion |
0.320 | |||
Over $60 billion, up to and including $90 billion |
0.280 | |||
Over $90 billion, up to and including $120 billion |
0.252 | |||
Over $120 billion, up to and including $150 billion |
0.227 | |||
Over $150 billion |
0.204 |
Expense Waivers: A fund may incur its pro rata share of fees and expenses attributable to its investments in other investment companies (“acquired fund fees and expenses”). The total of the investment advisory fee and any other fund expenses, if any, is a fund’s total annual operating expenses. Total expenses as shown in the Statements of Operations does not include acquired fund fees and expenses.
For each of the iShares Emerging Markets Equity Factor and iShares MSCI Emerging Markets ex China ETFs, BFA has contractually agreed to waive a portion of its investment advisory fee for each Fund through December 31, 2026 and December 31, 2027, respectively, in an amount equal to the acquired fund fees and expenses, if any, attributable to each Fund’s investments in other iShares funds.
For each of the iShares MSCI Emerging Markets Min Vol Factor and iShares MSCI Global Min Vol Factor ETFs, BFA had contractually agreed to waive a portion of its investment advisory fee for each Fund through December 31, 2023 in order to limit each Fund’s total annual operating expenses after fee waiver to 0.25% and 0.20%, respectively, of average daily net assets. The contractual waivers were terminated as of June 30, 2023.
These amounts are included in investment advisory fees waived in the Statements of Operations. For the year ended August 31, 2023, the amounts waived in investment advisory fees pursuant to these arrangements were as follows:
iShares ETF | Amounts Waived | |||
MSCI Emerging Markets Min Vol Factor |
$ | 23,012,591 | ||
MSCI Global Min Vol Factor |
4,618,321 |
68 |
2 0 2 3 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements (continued)
Distributor: BlackRock Investments, LLC, an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.
Securities Lending: The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending, including any custodial costs. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan (the “collateral investment fees”). The cash collateral is invested in a money market fund, BlackRock Cash Funds: Institutional or BlackRock Cash Funds: Treasury, managed by BFA, or its affiliates. However, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04%. The SL Agency Shares of such money market fund will not be subject to a sales load, distribution fee or service fee. The money market fund in which the cash collateral has been invested may, under certain circumstances, impose a liquidity fee of up to 2% of the value redeemed or temporarily restrict redemptions for up to 10 business days during a 90 day period, in the event that the money market fund’s weekly liquid assets fall below certain thresholds.
Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment fees. Each Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.
Pursuant to the current securities lending agreement, each Fund retains 82% of securities lending income (which excludes collateral investment fees), and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in that calendar year exceeds a specified threshold, each Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year 85% of securities lending income (which excludes collateral investment fees), and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
The share of securities lending income earned by each Fund is shown as securities lending income – affiliated – net in its Statements of Operations. For the year ended August 31, 2023, the Funds paid BTC the following amounts for securities lending agent services:
iShares ETF | Amounts | |||
Emerging Markets Equity Factor |
$ | 46,019 | ||
ESG Aware MSCI EM |
121,702 | |||
MSCI Emerging Markets ex China |
99,514 | |||
MSCI Emerging Markets Min Vol Factor |
129,530 | |||
MSCI Global Min Vol Factor |
60,870 |
Officers and Directors: Certain officers and/or directors of the Company are officers and/or directors of BlackRock or its affiliates.
Other Transactions: Cross trading is the buying or selling of portfolio securities between funds to which BFA (or an affiliate) serves as investment adviser. At its regularly scheduled quarterly meetings, the Board reviews such transactions as of the most recent calendar quarter for compliance with the requirements and restrictions set forth by Rule 17a-7.
For the year ended August 31, 2023, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:
iShares ETF | Purchases | Sales | Net Realized Gain (Loss) |
|||||||||
Emerging Markets Equity Factor |
$ | 67,134,193 | $ | 40,371,853 | $ | (5,886,734 | ) | |||||
ESG Aware MSCI EM |
59,669,866 | 55,775,265 | (13,534,484 | ) | ||||||||
MSCI Emerging Markets ex China |
3,546,624 | 12,149,668 | (2,043,748 | ) | ||||||||
MSCI Emerging Markets Min Vol Factor |
64,019,246 | 13,157,950 | (5,543,114 | ) | ||||||||
MSCI Global Min Vol Factor |
149,082,473 | 168,463,888 | (1,825,665 | ) |
Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is shown as dividends – affiliated in the Statements of Operations.
A fund, in order to improve its portfolio liquidity and its ability to track its underlying index, may invest in shares of other iShares funds that invest in securities in the fund’s underlying index.
N O T E S T O F I N A N C I A L S T A T E M E N T S |
69 |
Notes to Financial Statements (continued)
7. |
PURCHASES AND SALES |
For the year ended August 31, 2023, purchases and sales of investments, excluding short-term securities and in-kind transactions, were as follows:
iShares ETF | Purchases | Sales | ||||||
Emerging Markets Equity Factor |
$ | 946,417,933 | $ | 1,054,383,959 | ||||
ESG Aware MSCI EM |
1,748,771,436 | 1,584,518,199 | ||||||
MSCI Emerging Markets ex China |
2,616,735,140 | 428,551,258 | ||||||
MSCI Emerging Markets Min Vol Factor |
3,379,250,477 | 4,757,256,905 | ||||||
MSCI Global Min Vol Factor |
1,157,274,984 | 1,020,710,772 |
For the year ended August 31, 2023, in-kind transactions were as follows:
iShares ETF | In-kind Purchases |
In-kind Sales |
||||||
Emerging Markets Equity Factor |
$ | 21,565,452 | $ | 109,968,832 | ||||
ESG Aware MSCI EM |
73,640,936 | 83,618,535 | ||||||
MSCI Emerging Markets ex China |
541,672,957 | 8,465,555 | ||||||
MSCI Emerging Markets Min Vol Factor |
226,861,553 | 628,320,581 | ||||||
MSCI Global Min Vol Factor |
253,702,675 | 260,185,109 |
8. |
INCOME TAX INFORMATION |
Each Fund is treated as an entity separate from the Company’s other funds for federal income tax purposes. It is each Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required.
Management has analyzed tax laws and regulations and their application to the Funds as of August 31, 2023, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.
U.S. GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or NAV per share. As of August 31, 2023, permanent differences attributable to realized gains (losses) from in-kind redemptions were reclassified to the following accounts:
iShares ETF | Paid-in Capital | Accumulated Earnings (Loss) |
||||||
Emerging Markets Equity Factor |
$ | (899,752 | ) | $ | 899,752 | |||
ESG Aware MSCI EM |
7,568,422 | (7,568,422 | ) | |||||
MSCI Emerging Markets ex China |
343,532 | (343,532 | ) | |||||
MSCI Emerging Markets Min Vol Factor |
105,324,691 | (105,324,691 | ) | |||||
MSCI Global Min Vol Factor |
67,653,175 | (67,653,175 | ) |
The tax character of distributions paid was as follows:
iShares ETF | Year Ended 08/31/23 |
Year Ended 08/31/22 |
||||||
Emerging Markets Equity Factor |
||||||||
Ordinary income |
$ | 30,828,923 | $ | 24,269,864 | ||||
|
|
|
|
|||||
ESG Aware MSCI EM |
||||||||
Ordinary income |
$ | 98,049,319 | $ | 171,869,925 | ||||
|
|
|
|
|||||
MSCI Emerging Markets ex China |
||||||||
Ordinary income |
$ | 83,177,048 | $ | 51,969,537 | ||||
|
|
|
|
|||||
MSCI Emerging Markets Min Vol Factor |
||||||||
Ordinary income |
$ | 153,732,586 | $ | 76,156,771 | ||||
|
|
|
|
|||||
MSCI Global Min Vol Factor |
||||||||
Ordinary income |
$ | 98,968,869 | $ | 98,218,027 | ||||
|
|
|
|
70 |
2 0 2 3 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements (continued)
As of August 31, 2023, the tax components of accumulated net earnings (losses) were as follows:
iShares ETF | Undistributed Ordinary Income |
Non-expiring Capital Loss |
Net Unrealized Gains (Losses)(b) |
Total | ||||||||||||
Emerging Markets Equity Factor |
$ | 21,543,090 | $ | (127,984,851 | ) | $ | (1,073,123 | ) | $ | (107,514,884 | ) | |||||
ESG Aware MSCI EM |
57,781,482 | (829,882,107 | ) | (156,878,997 | ) | (928,979,622 | ) | |||||||||
MSCI Emerging Markets ex China |
50,994,748 | (134,221,201 | ) | (305,708,164 | ) | (388,934,617 | ) | |||||||||
MSCI Emerging Markets Min Vol Factor |
69,051,076 | (1,234,300,856 | ) | 501,418,867 | (663,830,913 | ) | ||||||||||
MSCI Global Min Vol Factor |
40,410,209 | (263,839,039 | ) | 439,585,521 | 216,156,691 |
(a) |
Amounts available to offset future realized capital gains. |
(b) |
The difference between book-basis and tax-basis unrealized gains (losses) was attributable primarily to the tax deferral of losses on wash sales, the realization for tax purposes of unrealized gains (losses) on certain foreign currency contracts and futures contracts, the characterization of corporate actions, the realization for tax purposes of unrealized gains on investments in passive foreign investment companies and the timing and recognition of realized gains/losses for tax purposes. |
A fund may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” Such fund may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.
As of August 31, 2023, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:
iShares ETF | Tax Cost | Gross Unrealized Appreciation |
Gross Unrealized Depreciation |
Net Unrealized Appreciation (Depreciation) |
||||||||||||
Emerging Markets Equity Factor |
$ | 619,788,686 | $ | 66,903,098 | $ | (65,483,270 | ) | $ | 1,419,828 | |||||||
ESG Aware MSCI EM |
4,493,387,939 | 638,988,494 | (788,831,322 | ) | (149,842,828 | ) | ||||||||||
MSCI Emerging Markets ex China |
5,469,963,184 | 288,462,020 | (585,231,106 | ) | (296,769,086 | ) | ||||||||||
MSCI Emerging Markets Min Vol Factor |
4,015,304,322 | 769,949,032 | (260,252,766 | ) | 509,696,266 | |||||||||||
MSCI Global Min Vol Factor |
4,315,646,025 | 760,429,924 | (315,827,696 | ) | 444,602,228 |
9. |
LINE OF CREDIT |
The Funds, along with certain other iShares funds (“Participating Funds”), are parties to a $800 million credit agreement (“Syndicated Credit Agreement”) with a group of lenders, which expires on August 9, 2024. The line of credit may be used for temporary or emergency purposes, including redemptions, settlement of trades and rebalancing of portfolio holdings in certain target markets. The Funds may borrow up to the aggregate commitment amount subject to asset coverage and other limitations as specified in the Syndicated Credit Agreement. The Syndicated Credit Agreement has the following terms: a commitment fee of 0.15% per annum on the unused portion of the credit agreement and interest at a rate equal to the higher of (a) Daily Simple Secured Overnight Financing Rate (“SOFR”) plus 0.10% and 1.00% per annum or (b) the U.S. Federal Funds rate plus 1.00% per annum on amounts borrowed. The commitment fee is generally allocated to each Participating Fund based on the lesser of a Participating Fund’s relative exposure to certain target markets or a Participating Fund’s maximum borrowing amount as set forth by the terms of the Syndicated Credit Agreement.
For the year ended August 31, 2023, the maximum amount borrowed, the average daily borrowing and the weighted average interest rate, if any, under the Syndicated Credit Agreement were as follows:
iShares ETF | Maximum Amount Borrowed |
Average Borrowing |
Weighted Average Interest Rates |
|||||||||
Emerging Markets Equity Factor |
$ | 127,400,000 | $ | 2,928,493 | 5.07 | % | ||||||
ESG Aware MSCI EM |
82,766,000 | 2,728,079 | 5.12 | |||||||||
MSCI Emerging Markets ex China |
32,212,000 | 935,923 | 5.61 | |||||||||
MSCI Emerging Markets Min Vol Factor |
113,000,000 | 2,970,685 | 5.58 | |||||||||
MSCI Global Min Vol Factor |
21,800,000 | 768,082 | 5.54 |
10. |
PRINCIPAL RISKS |
In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Funds and their investments. Each Fund’s prospectus provides details of the risks to which the Fund is subject.
N O T E S T O F I N A N C I A L S T A T E M E N T S |
71 |
Notes to Financial Statements (continued)
BFA uses a “passive” or index approach to try to achieve each Fund’s investment objective following the securities included in its underlying index during upturns as well as downturns. BFA does not take steps to reduce market exposure or to lessen the effects of a declining market. Divergence from the underlying index and the composition of the portfolio is monitored by BFA.
The Funds may be exposed to additional risks when reinvesting cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00, which may be subject to redemption gates or liquidity fees under certain circumstances.
Market Risk: Investments in the securities of issuers domiciled in countries with emerging capital markets involve certain additional risks that do not generally apply to investments in securities of issuers in more developed capital markets, such as (i) low or nonexistent trading volume, resulting in a lack of liquidity and increased volatility in prices for such securities; (ii) uncertain national policies and social, political and economic instability, increasing the potential for expropriation of assets, confiscatory taxation, high rates of inflation or unfavorable diplomatic developments; (iii) lack of publicly available or reliable information about issuers as a result of not being subject to the same degree of regulatory requirements and accounting, auditing and financial reporting standards; and (iv) possible fluctuations in exchange rates, differing legal systems and the existence or possible imposition of exchange controls, custodial restrictions or other foreign or U.S. governmental laws or restrictions applicable to such investments.
Infectious Illness Risk: An outbreak of an infectious illness, such as the COVID-19 pandemic, may adversely impact the economies of many nations and the global economy, and may impact individual issuers and capital markets in ways that cannot be foreseen. An infectious illness outbreak may result in, among other things, closed international borders, prolonged quarantines, supply chain disruptions, market volatility or disruptions and other significant economic, social and political impacts.
Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. A fund may invest in illiquid investments. An illiquid investment is any investment that a fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. A fund may experience difficulty in selling illiquid investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause a fund’s NAV to experience significant increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of a fund may lose value, regardless of the individual results of the securities and other instruments in which a fund invests.
The price each Fund could receive upon the sale of any particular portfolio investment may differ from each Fund’s valuation of the investment, particularly for securities that trade in thin or volatile markets or that are valued using a fair valuation technique or a price provided by an independent pricing service. Changes to significant unobservable inputs and assumptions (i.e., publicly traded company multiples, growth rate, time to exit) due to the lack of observable inputs.
Counterparty Credit Risk: The Funds may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions, including making timely interest and/or principal payments or otherwise honoring its obligations. The Funds manage counterparty credit risk by entering into transactions only with counterparties that BFA believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Funds to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Funds’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statements of Assets and Liabilities, less any collateral held by the Funds.
A derivative contract may suffer a mark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.
With exchange-traded futures, there is less counterparty credit risk to the Funds since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, a fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Funds.
Geographic/Asset Class Risk: A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its Schedule of Investments.
Certain Funds invest a significant portion of their assets in issuers located in a single country or a limited number of countries. When a fund concentrates its investments in this manner, it assumes the risk that economic, regulatory, political and social conditions in that country or those countries may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the Fund’s portfolio. Unanticipated or sudden political or social developments may cause uncertainty in the markets and as a result adversely affect the Fund’s investments. Foreign issuers may not be subject to the same uniform accounting, auditing and financial reporting standards and practices as used in the United States. Foreign securities markets may also be more volatile and less liquid than U.S. securities and may be less subject to governmental supervision not typically associated with investing in U.S. securities. Investment percentages in specific countries are presented in the Schedule of Investments.
The Funds invest a significant portion of their assets in securities of issuers located in the United States. A decrease in imports or exports, changes in trade regulations, inflation and/or an economic recession in the United States may have a material adverse effect on the U.S. economy and the securities listed on U.S. exchanges. Proposed
72 |
2 0 2 3 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements (continued)
and adopted policy and legislative changes in the United States may also have a significant effect on U.S. markets generally, as well as on the value of certain securities. Governmental agencies project that the United States will continue to maintain elevated public debt levels for the foreseeable future which may constrain future economic growth. Circumstances could arise that could prevent the timely payment of interest or principal on U.S. government debt, such as reaching the legislative “debt ceiling.” Such non-payment would result in substantial negative consequences for the U.S. economy and the global financial system. If U.S. relations with certain countries deteriorate, it could adversely affect issuers that rely on the United States for trade. The United States has also experienced increased internal unrest and discord. If these trends were to continue, they may have an adverse impact on the U.S. economy and the issuers in which the the Funds invest.
Certain Funds invest a significant portion of their assets in securities of issuers located in China or with significant exposure to Chinese issuers. Investments in Chinese securities, including certain Hong Kong-listed securities, involve risks specific to China. China may be subject to considerable degrees of economic, political and social instability and demonstrates significantly higher volatility from time to time in comparison to developed markets. Chinese markets generally continue to experience inefficiency, volatility and pricing anomalies resulting from governmental influence, a lack of publicly available information and/or political and social instability. Internal social unrest or confrontations with other neighboring countries may disrupt economic development in China and result in a greater risk of currency fluctuations, currency non-convertibility, interest rate fluctuations and higher rates of inflation. Incidents involving China’s or the region’s security may cause uncertainty in Chinese markets and may adversely affect the Chinese economy and a fund’s investments. Reduction in spending on Chinese products and services, institution of tariffs or other trade barriers, or a downturn in any of the economies of China’s key trading partners may have an adverse impact on the Chinese economy. In addition, measures may be taken to limit the flow of capital and/or sanctions may be imposed, which could prohibit or restrict the ability to own or transfer fund assets and may also include retaliatory actions, such as seizure of fund assets.
Certain Funds invest a significant portion of their assets in securities of issuers located in Asia or with significant exposure to Asian issuers or countries. The Asian financial markets have recently experienced volatility and adverse trends due to concerns in several Asian countries regarding monetary policy, government intervention in the markets, rising government debt levels or economic downturns. These events may spread to other countries in Asia and may affect the value and liquidity of certain of the Funds’ investments.
Certain Funds invest a significant portion of their assets in securities within a single or limited number of market sectors. When a fund concentrates its investments in this manner, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.
Significant Shareholder Redemption Risk: Certain shareholders may own or manage a substantial amount of fund shares and/or hold their fund investments for a limited period of time. Large redemptions of fund shares by these shareholders may force a fund to sell portfolio securities, which may negatively impact the fund’s NAV, increase the fund’s brokerage costs, and/or accelerate the realization of taxable income/gains and cause the fund to make additional taxable distributions to shareholders.
11. |
CAPITAL SHARE TRANSACTIONS |
Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable.
Transactions in capital shares were as follows:
Year Ended 08/31/23 |
Year Ended 08/31/22 |
|||||||||||||||
iShares ETF | Shares | Amount | Shares | Amount | ||||||||||||
Emerging Markets Equity Factor |
||||||||||||||||
Shares sold |
3,800,000 | $ | 159,623,754 | 5,400,000 | $ | 270,269,841 | ||||||||||
Shares redeemed |
(8,500,000 | ) | (352,806,935 | ) | (400,000 | ) | (17,428,980 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
(4,700,000 | ) | $ | (193,183,181 | ) | 5,000,000 | $ | 252,840,861 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
ESG Aware MSCI EM |
||||||||||||||||
Shares sold |
15,800,000 | $ | 512,788,131 | 19,900,000 | $ | 784,318,752 | ||||||||||
Shares redeemed |
(12,600,000 | ) | (365,385,403 | ) | (49,100,000 | ) | (1,679,852,995 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
3,200,000 | $ | 147,402,728 | (29,200,000 | ) | $ | (895,534,243 | ) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
MSCI Emerging Markets ex China |
||||||||||||||||
Shares sold |
55,100,000 | $ | 2,772,309,487 | 30,600,000 | $ | 1,819,166,668 | ||||||||||
Shares redeemed |
(1,000,000 | ) | (45,569,079 | ) | (4,500,000 | ) | (218,024,767 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
54,100,000 | $ | 2,726,740,408 | 26,100,000 | $ | 1,601,141,901 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
MSCI Emerging Markets Min Vol Factor |
||||||||||||||||
Shares sold |
43,000,000 | $ | 2,217,098,360 | 54,400,000 | $ | 3,087,685,688 | ||||||||||
Shares redeemed |
(73,100,000 | ) | (3,985,850,162 | ) | (2,400,000 | ) | (147,823,714 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
(30,100,000 | ) | $ | (1,768,751,802 | ) | 52,000,000 | $ | 2,939,861,974 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
MSCI Global Min Vol Factor |
||||||||||||||||
Shares sold |
4,400,000 | $ | 432,126,269 | 4,800,000 | $ | 492,333,800 | ||||||||||
Shares redeemed |
(3,200,000 | ) | (313,433,962 | ) | (7,400,000 | ) | (762,945,229 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
1,200,000 | $ | 118,692,307 | (2,600,000 | ) | $ | (270,611,429 | ) | |||||||||
|
|
|
|
|
|
|
|
N O T E S T O F I N A N C I A L S T A T E M E N T S |
73 |
Notes to Financial Statements (continued)
The consideration for the purchase of Creation Units of a fund in the Company generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Company may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to State Street Bank and Trust Company, the Company’s administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in shares sold in the table above.
From time to time, settlement of securities related to in-kind contributions or in-kind redemptions may be delayed. In such cases, securities related to in-kind transactions are reflected as a receivable or a payable in the Statements of Assets and Liabilities.
12. |
FOREIGN WITHHOLDING TAX CLAIMS |
The Internal Revenue Service (“IRS”) has issued guidance to address U.S. income tax liabilities attributable to fund shareholders resulting from the recovery of foreign taxes withheld in prior calendar years. These withheld foreign taxes were passed through to shareholders in the form of foreign tax credits in the year the taxes were withheld. Assuming there are sufficient foreign taxes paid which iShares MSCI Global Min Vol Factor ETF is able to pass through to shareholders as a foreign tax credit in the current year, the Fund will be able to offset the prior years’ withholding taxes recovered against the foreign taxes paid in the current year. Accordingly, no federal income tax liability is recorded by the Fund.
13. |
SUBSEQUENT EVENTS |
Management’s evaluation of the impact of all subsequent events on the Funds’ financial statements was completed through the date the financial statements were available to be issued and the following item was noted:
Effective October 18, 2023, the Syndicated Credit Agreement to which the Participating Funds are party was amended to extend the maturity date to October 2024 under the same terms.
74 |
2 0 2 3 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Report of Independent Registered Public Accounting Firm
To the Board of Directors of
iShares, Inc. and Shareholders of each of the five funds listed in the table below
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of each of the funds listed in the table below (five of the funds constituting iShares, Inc., hereafter collectively referred to as the “Funds”) as of August 31, 2023, the related statements of operations and of changes in net assets for each of the periods indicated in the table below, including the related notes, and the financial highlights for each of the periods indicated in the table below (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of August 31, 2023, the results of each of their operations, the changes in each of their net assets, and each of the financial highlights for each of the periods indicated in the table below, in conformity with accounting principles generally accepted in the United States of America.
iShares Emerging Markets Equity Factor ETF(1) |
iShares ESG Aware MSCI EM ETF(1) |
iShares MSCI Emerging Markets ex China ETF(1) |
iShares MSCI Emerging Markets Min Vol Factor ETF(2) |
iShares MSCI Global Min Vol Factor ETF(1) |
(1) |
Statement of operations for the year ended August 31, 2023, statement of changes in net assets for each of the two years in the period ended August 31, 2023 and the financial highlights for each of the five years in the period ended August 31, 2023. |
(2) |
Statement of operations for the year ended August 31, 2023, statement of changes in net assets for each of the two years in the period ended August 31, 2023, the financial highlights for each of the two years in the period ended August 31, 2023 and the consolidated financial highlights for each of the three years in the period ended August 31, 2021. |
Basis for Opinions
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of August 31, 2023 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.
/s/PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
October 23, 2023
We have served as the auditor of one or more BlackRock investment companies since 2000.
R E P O R T O F I N D E P E N D E N T R E G I S T E R E D P U B L I C A C C O U N T I N G F I R M |
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Important Tax Information (unaudited)
The following amounts, or maximum amounts allowable by law, are hereby designated as qualified dividend income for individuals for the fiscal year ended August 31, 2023:
iShares ETF | Qualified Dividend Income |
|||
Emerging Markets Equity Factor |
$ | 15,238,691 | ||
ESG Aware MSCI EM |
63,684,635 | |||
MSCI Emerging Markets ex China |
47,059,047 | |||
MSCI Emerging Markets Min Vol Factor |
82,497,667 | |||
MSCI Global Min Vol Factor |
102,289,602 |
The following amounts, or maximum amounts allowable by law, are hereby designated as qualified business income for individuals for the fiscal year endedAugust 31, 2023:
iShares ETF | Qualified Business Income |
|||
MSCI Global Min Vol Factor |
$ | 195,224 |
The Funds intend to pass through to their shareholders the following amounts, or maximum amounts allowable by law, of foreign source income earned and foreign taxes paid for the fiscal year ended August 31, 2023:
iShares ETF | Foreign Source Income Earned |
Foreign Taxes Paid |
||||||
Emerging Markets Equity Factor |
$ | 33,725,071 | $ | 5,298,522 | ||||
ESG Aware MSCI EM |
138,765,710 | 17,589,135 | ||||||
MSCI Emerging Markets ex China |
123,074,239 | 16,418,963 | ||||||
MSCI Emerging Markets Min Vol Factor |
167,650,876 | 21,113,430 |
The following percentage, or maximum percentage allowable by law, of ordinary income distributions paid during the fiscal year ended August 31, 2023 qualified for the dividends-received deduction for corporate shareholders:
iShares ETF | Dividends-Received Deduction |
|||
MSCI Global Min Vol Factor |
46.20 | % |
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Board Review and Approval of Investment Advisory Contract
iShares Emerging Markets Equity Factor ETF, iShares ESG Aware MSCI EM ETF, iShares MSCI Emerging Markets ex China ETF (each the “Fund”)
Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Company’s Board of Directors (the “Board”), including a majority of Board Members who are not “interested persons” of the Company (as that term is defined in the 1940 Act) (the “Independent Board Members”), is required annually to consider the approval of the Investment Advisory Agreement between the Company and BFA (the “Advisory Agreement”) on behalf of the Fund. The Board’s consideration entails a year-long process whereby the Board and its committees (composed solely of Independent Board Members) assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. The Independent Board Members requested, and BFA provided, such information as the Independent Board Members, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Agreement. At meetings on May 2, 2023 and May 15, 2023, a committee composed of all of the Independent Board Members (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or its independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June 7-8, 2023, the Board, including the Independent Board Members, reviewed the additional information provided by management in response to these requests.
After extensive discussions and deliberations, the Board, including all of the Independent Board Members, approved the continuance of the Advisory Agreement for the Fund, based on a review of qualitative and quantitative information provided by BFA and their cumulative experience as Board Members. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Independent Board Members were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the continuance of the Advisory Agreement for the Fund, the Board, including the Independent Board Members, considered various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) potential economies of scale and the sharing of related benefits; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, none of which was controlling, and conclusions that formed the basis for the Board, including the Independent Board Members, to approve the continuance of the Advisory Agreement are discussed below.
Expenses and Performance of the Fund: The Board reviewed statistical information prepared by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, fees and expenses of other fund(s) in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs, objectively selected by Broadridge as comprising the Fund’s applicable expense peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board noted that, due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances. The Board also noted that the investment advisory fee rate and overall expenses (net of any waivers and reimbursements) for the Fund were lower than the median of the investment advisory fee rates and overall expenses (net of any waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds.
In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for the one-year, three-year, five-year, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2022, to that of such relevant comparison fund(s) for the same periods. The Board noted that the Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including additional detailed information as requested by the Board, was also considered. The Board noted that the Fund generally performed in line with its underlying index over the relevant periods.
Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Nature, Extent and Quality of Services Provided: Based on management’s representations, including information about ongoing enhancements and initiatives with respect to the iShares business, including with respect to capital markets support and analysis, technology, portfolio management, product design and quality, compliance and risk management, global public policy and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Agreement for the coming year as compared with the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to support the iShares funds and their shareholders and have made significant investments into the iShares business. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund, including related programs implemented pursuant to regulatory requirements. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the May 2, 2023 meeting and throughout the year, and matters related to BFA’s portfolio compliance program and other compliance programs and services.
Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided to the Fund under the Advisory Agreement supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
B O A R D R E V I E W A N D A P P R O V A L O F I N V E S T M E N T A D V I S O R Y C O N T R A C T |
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Board Review and Approval of Investment Advisory Contract (continued)
Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates: The Board reviewed information about the estimated profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Agreement), and other sources of revenue and expense to BFA and its affiliates from the Fund’s operations for the last calendar year. The Board reviewed BlackRock’s methodology for calculating estimated profitability of the iShares funds, noting that the 15(c) Committee and the Board had focused on the methodology and profitability presentation. The Board recognized that profitability may be affected by numerous factors, including, among other things, fee waivers by BFA, the types of funds managed, expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at individual fund levels is challenging. The Board discussed with management the sources of direct and ancillary revenue, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Fund. The Board also discussed BFA’s estimated profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below).
Based on this review, the Board concluded that the information considered with respect to the profits realized by BFA and its affiliates under the Advisory Agreement and from other relationships between the Fund and BFA and/or its affiliates, if any, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Economies of Scale: The Board reviewed information and considered the extent to which economies of scale might be realized as the assets of the Fund increase, noting that the issue of potential economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical estimated profitability (as discussed above), including BFA’s and its affiliates’ estimated costs in providing services. The estimated cost information distinguished, among other things, between fixed and variable costs, and showed how the level and nature of fixed and variable costs may impact the existence or size of scale benefits, with the Board recognizing that potential economies of scale are difficult to measure. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board noted that the Advisory Agreement for the Fund did not provide for breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that it would continue to assess the appropriateness of adding breakpoints in the future.
The Board concluded that this review of potential economies of scale and the sharing of related benefits, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates: The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds and institutional separate accounts (collectively, the “Other Accounts”). The Board acknowledged BFA’s representation that the iShares funds are fundamentally different investment vehicles from the Other Accounts.
The Board received detailed information regarding how the Other Accounts generally differ from the Fund, including in terms of the types of services and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded investment vehicle, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board noted that BFA and its affiliates do not manage Other Accounts withsubstantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate.
The Board considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement and noted that the investment advisory fee rate under the Advisory Agreement for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.
Other Benefits to BFA and/or its Affiliates: The Board reviewed other benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, both direct and indirect, including, but not limited to, payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities, as applicable (which was included in the profit margins reviewed by the Board pursuant to BFA’s estimated profitability methodology), payment of advisory fees or other fees to BFA (or its affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services or other services, and BlackRock’s profile in the investment community. The Board further considered other direct benefits that might accrue to BFA, including the potential for reduction in the Fund’s expenses that are borne by BFA under the “all-inclusive” management fee arrangement, due in part to the size and scope of BFA’s investment operations servicing the Fund (and other funds in the iShares complex) as well as in response to a changing market environment. The Board also reviewed and considered information provided by BFA concerning authorized participant primary market order processing services that are provided by BlackRock Investments, LLC (“BRIL”), an affiliate of BFA, and paid for by authorized participants under the ETF Servicing Platform. The Board also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Agreement for the coming year.
Conclusion: Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Board Members, determined that the Fund’s investment advisory fee rate under the Advisory Agreement does not constitute a fee that is so disproportionately
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Board Review and Approval of Investment Advisory Contract (continued)
large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Agreement for the coming year.
iShares MSCI Emerging Markets Min Vol Factor ETF (the “Fund”)
Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Company’s Board of Directors (the “Board”), including a majority of Board Members who are not “interested persons” of the Company (as that term is defined in the 1940 Act) (the “Independent Board Members”), is required annually to consider the approval of the Investment Advisory Agreement between the Company and BFA (the “Advisory Agreement”) on behalf of the Fund. The Board’s consideration entails a year-long process whereby the Board and its committees (composed solely of Independent Board Members) assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. The Independent Board Members requested, and BFA provided, such information as the Independent Board Members, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Agreement. At meetings on May 2, 2023 and May 15, 2023, a committee composed of all of the Independent Board Members (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or its independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June 7-8, 2023, the Board, including the Independent Board Members, reviewed the additional information provided by management in response to these requests.
After extensive discussions and deliberations, the Board, including all of the Independent Board Members, approved the continuance of the Advisory Agreement for the Fund, based on a review of qualitative and quantitative information provided by BFA and their cumulative experience as Board Members. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Independent Board Members were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the continuance of the Advisory Agreement for the Fund, the Board, including the Independent Board Members, considered various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) potential economies of scale and the sharing of related benefits; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, none of which was controlling, and conclusions that formed the basis for the Board, including the Independent Board Members, to approve the continuance of the Advisory Agreement are discussed below.
Expenses and Performance of the Fund: The Board reviewed statistical information prepared by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, fees and expenses of other fund(s) in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs, objectively selected by Broadridge as comprising the Fund’s applicable expense peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board noted that, due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances. The Board also noted that the investment advisory fee rate and overall expenses (net of any waivers and reimbursements) for the Fund were lower than the median of the investment advisory fee rates and overall expenses (net of any waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds.
In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for the one-year, three-year, five-year, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2022, to that of such relevant comparison fund(s) for the same periods. The Board noted that the Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including additional detailed information as requested by the Board, was also considered. The Board noted that the Fund generally performed in line with its underlying index over the relevant periods.
Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Nature, Extent and Quality of Services Provided: Based on management’s representations, including information about ongoing enhancements and initiatives with respect to the iShares business, including with respect to capital markets support and analysis, technology, portfolio management, product design and quality, compliance and risk management, global public policy and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Agreement for the coming year as compared with the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to support the iShares funds and their shareholders and have made significant investments into the iShares business. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund, including related programs implemented pursuant to regulatory requirements. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the May 2, 2023 meeting and throughout the year, and matters related to BFA’s portfolio compliance program and other compliance programs and services.
Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided to the Fund under the Advisory Agreement supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
B O A R D R E V I E W A N D A P P R O V A L O F I N V E S T M E N T A D V I S O R Y C O N T R A C T |
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Board Review and Approval of Investment Advisory Contract (continued)
Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates: The Board reviewed information about the estimated profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Agreement), and other sources of revenue and expense to BFA and its affiliates from the Fund’s operations for the last calendar year. The Board reviewed BlackRock’s methodology for calculating estimated profitability of the iShares funds, noting that the 15(c) Committee and the Board had focused on the methodology and profitability presentation. The Board recognized that profitability may be affected by numerous factors, including, among other things, fee waivers by BFA, the types of funds managed, expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at individual fund levels is challenging. The Board discussed with management the sources of direct and ancillary revenue, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Fund. The Board also discussed BFA’s estimated profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below).
Based on this review, the Board concluded that the information considered with respect to the profits realized by BFA and its affiliates under the Advisory Agreement and from other relationships between the Fund and BFA and/or its affiliates, if any, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Economies of Scale: The Board reviewed information and considered the extent to which economies of scale might be realized as the assets of the Fund increase, noting that the issue of potential economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical estimated profitability (as discussed above), including BFA’s and its affiliates’ estimated costs in providing services. The estimated cost information distinguished, among other things, between fixed and variable costs, and showed how the level and nature of fixed and variable costs may impact the existence or size of scale benefits, with the Board recognizing that potential economies of scale are difficult to measure. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board noted that the Advisory Agreement for the Fund already provided for breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund, on an aggregated basis with the assets of certain other iShares funds, increase. The Board also noted that during the June 7-8, 2023 meeting, it approved a permanent reduction to the advisory fee rate charged to the Fund at each breakpoint tier. The Board noted that it would continue to assess the appropriateness of adding new or revised breakpoints in the future.
The Board concluded that this review of potential economies of scale and the sharing of related benefits, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates: The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds and institutional separate accounts (collectively, the “Other Accounts”). The Board acknowledged BFA’s representation that the iShares funds are fundamentally different investment vehicles from the Other Accounts.
The Board received detailed information regarding how the Other Accounts generally differ from the Fund, including in terms of the types of services and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded investment vehicle, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board noted that BFA and its affiliates do not manage Other Accounts withsubstantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate.
The Board considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement and noted that the investment advisory fee rate under the Advisory Agreement for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.
Other Benefits to BFA and/or its Affiliates: The Board reviewed other benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, both direct and indirect, including, but not limited to, payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities, as applicable (which was included in the profit margins reviewed by the Board pursuant to BFA’s estimated profitability methodology), payment of advisory fees or other fees to BFA (or its affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services or other services, and BlackRock’s profile in the investment community. The Board further considered other direct benefits that might accrue to BFA, including the potential for reduction in the Fund’s expenses that are borne by BFA under the “all-inclusive” management fee arrangement, due in part to the size and scope of BFA’s investment operations servicing the Fund (and other funds in the iShares complex) as well as in response to a changing market environment. The Board also reviewed and considered information provided by BFA concerning authorized participant primary market order processing services that are provided by BlackRock Investments, LLC (“BRIL”), an affiliate of BFA, and paid for by authorized participants under the ETF Servicing Platform. The Board also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Agreement for the coming year.
Conclusion: Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Board Members, determined that the Fund’s investment advisory fee rate under the Advisory Agreement does not constitute a fee that is so disproportionately
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Board Review and Approval of Investment Advisory Contract (continued)
large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Agreement for the coming year.
iShares MSCI Global Min Vol Factor ETF (the “Fund”)
Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Company’s Board of Directors (the “Board”), including a majority of Board Members who are not “interested persons” of the Company (as that term is defined in the 1940 Act) (the “Independent Board Members”), is required annually to consider the approval of the Investment Advisory Agreement between the Company and BFA (the “Advisory Agreement”) on behalf of the Fund. The Board’s consideration entails a year-long process whereby the Board and its committees (composed solely of Independent Board Members) assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. The Independent Board Members requested, and BFA provided, such information as the Independent Board Members, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Agreement. At meetings on May 2, 2023 and May 15, 2023, a committee composed of all of the Independent Board Members (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or its independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June 7-8, 2023, the Board, including the Independent Board Members, reviewed the additional information provided by management in response to these requests.
After extensive discussions and deliberations, the Board, including all of the Independent Board Members, approved the continuance of the Advisory Agreement for the Fund, based on a review of qualitative and quantitative information provided by BFA and their cumulative experience as Board Members. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Independent Board Members were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the continuance of the Advisory Agreement for the Fund, the Board, including the Independent Board Members, considered various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) potential economies of scale and the sharing of related benefits; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, none of which was controlling, and conclusions that formed the basis for the Board, including the Independent Board Members, to approve the continuance of the Advisory Agreement are discussed below.
Expenses and Performance of the Fund: The Board reviewed statistical information prepared by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, fees and expenses of other fund(s) in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs, objectively selected by Broadridge as comprising the Fund’s applicable expense peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board noted that, due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances. The Board also noted that the investment advisory fee rate and overall expenses (net of any waivers and reimbursements) for the Fund were lower than the median of the investment advisory fee rates and overall expenses (net of any waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds.
In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for the one-year, three-year, five-year, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2022, to that of such relevant comparison fund(s) for the same periods. The Board noted that the Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including additional detailed information as requested by the Board, was also considered. The Board noted that the Fund generally performed in line with its underlying index over the relevant periods.
Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Nature, Extent and Quality of Services Provided: Based on management’s representations, including information about ongoing enhancements and initiatives with respect to the iShares business, including with respect to capital markets support and analysis, technology, portfolio management, product design and quality, compliance and risk management, global public policy and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Agreement for the coming year as compared with the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to support the iShares funds and their shareholders and have made significant investments into the iShares business. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund, including related programs implemented pursuant to regulatory requirements. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the May 2, 2023 meeting and throughout the year, and matters related to BFA’s portfolio compliance program and other compliance programs and services.
Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided to the Fund under the Advisory Agreement supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
B O A R D R E V I E W A N D A P P R O V A L O F I N V E S T M E N T A D V I S O R Y C O N T R A C T |
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Board Review and Approval of Investment Advisory Contract (continued)
Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates: The Board reviewed information about the estimated profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Agreement), and other sources of revenue and expense to BFA and its affiliates from the Fund’s operations for the last calendar year. The Board reviewed BlackRock’s methodology for calculating estimated profitability of the iShares funds, noting that the 15(c) Committee and the Board had focused on the methodology and profitability presentation. The Board recognized that profitability may be affected by numerous factors, including, among other things, fee waivers by BFA, the types of funds managed, expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at individual fund levels is challenging. The Board discussed with management the sources of direct and ancillary revenue, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Fund. The Board also discussed BFA’s estimated profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below).
Based on this review, the Board concluded that the information considered with respect to the profits realized by BFA and its affiliates under the Advisory Agreement and from other relationships between the Fund and BFA and/or its affiliates, if any, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Economies of Scale: The Board reviewed information and considered the extent to which economies of scale might be realized as the assets of the Fund increase, noting that the issue of potential economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical estimated profitability (as discussed above), including BFA’s and its affiliates’ estimated costs in providing services. The estimated cost information distinguished, among other things, between fixed and variable costs, and showed how the level and nature of fixed and variable costs may impact the existence or size of scale benefits, with the Board recognizing that potential economies of scale are difficult to measure. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board noted that the Advisory Agreement for the Fund already provided for breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund, on an aggregated basis with the assets of certain other iShares funds, increase. The Board also noted that during the June 7-8, 2023 meeting, it approved a permanent reduction to the advisory fee rate charged to the Fund at each breakpoint tier. The Board noted that it would continue to assess the appropriateness of adding new or revised breakpoints in the future.
The Board concluded that this review of potential economies of scale and the sharing of related benefits, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates: The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds and institutional separate accounts (collectively, the “Other Accounts”). The Board acknowledged BFA’s representation that the iShares funds are fundamentally different investment vehicles from the Other Accounts.
The Board received detailed information regarding how the Other Accounts generally differ from the Fund, including in terms of the types of services and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded investment vehicle, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board noted that BFA and its affiliates manage Other Accounts withsubstantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate.
The Board considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement and noted that the investment advisory fee rate under the Advisory Agreement for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.
Other Benefits to BFA and/or its Affiliates: The Board reviewed other benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, both direct and indirect, including, but not limited to, payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities, as applicable (which was included in the profit margins reviewed by the Board pursuant to BFA’s estimated profitability methodology), payment of advisory fees or other fees to BFA (or its affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services or other services, and BlackRock’s profile in the investment community. The Board further considered other direct benefits that might accrue to BFA, including the potential for reduction in the Fund’s expenses that are borne by BFA under the “all-inclusive” management fee arrangement, due in part to the size and scope of BFA’s investment operations servicing the Fund (and other funds in the iShares complex) as well as in response to a changing market environment. The Board also reviewed and considered information provided by BFA concerning authorized participant primary market order processing services that are provided by BlackRock Investments, LLC (“BRIL”), an affiliate of BFA, and paid for by authorized participants under the ETF Servicing Platform. The Board also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Agreement for the coming year.
Conclusion: Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Board Members, determined that the Fund’s investment advisory fee rate under the Advisory Agreement does not constitute a fee that is so disproportionately
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Board Review and Approval of Investment Advisory Contract (continued)
large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Agreement for the coming year.
B O A R D R E V I E W A N D A P P R O V A L O F I N V E S T M E N T A D V I S O R Y C O N T R A C T |
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Supplemental Information (unaudited)
Section 19(a) Notices
The amounts and sources of distributions reported are estimates and are being provided pursuant to regulatory requirements and are not being provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon each Fund’s investment experience during the year and may be subject to changes based on tax regulations. Shareholders will receive a Form 1099-DIV each calendar year that will inform them how to report these distributions for federal income tax purposes.
August 31, 2023
Total Cumulative
Distributions for the Fiscal Year |
% Breakdown of the Total
Cumulative Distributions for the Fiscal Year |
|||||||||||||||||||||||||||||||
iShares ETF |
Net Investment |
Net Realized Capital Gains |
Return of Capital | Total Per Share | Net Investment Income |
Net Realized Capital Gains |
Return of Capital |
Total Per Share |
||||||||||||||||||||||||
ESG Aware MSCI EM(a) . . . |
$ | 0.717997 | $ | — | $ | 0.040288 | $ | 0.758285 | 95 | % | — | % | 5 | % | 100 | % | ||||||||||||||||
MSCI Emerging Markets ex China(a) . |
1.214199 | — | 0.007594 | 1.221793 | 99 | — | 1 | 100 | ||||||||||||||||||||||||
MSCI Global Min Vol Factor |
2.068582 | — | — | 2.068582 | 100 | — | — | 100 |
(a) |
The Fund estimates that it has distributed more than its net investment income and net realized capital gains; therefore, a portion of the distribution may be a return of capital. A return of capital may occur, for example, when some or all of the shareholder’s investment in the Fund is returned to the shareholder. A return of capital does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. When distributions exceed total return performance, the difference will incrementally reduce the Fund’s net asset value per share. |
Tailored Shareholder Reports for Open-End Mutual Funds and ETFs
Effective January 24, 2023, the SEC adopted rule and form amendments to require open-end mutual funds and ETFs to transmit concise and visually engaging streamlined annual and semiannual reports to shareholders that highlight key information. Other information, including financial statements, will no longer appear in a streamlined shareholder report but must be available online, delivered free of charge upon request, and filed on a semiannual basis on Form N-CSR. The rule and form amendments have a compliance date of July 24, 2024. At this time, management is evaluating the impact of these amendments on the shareholder reports for the Funds.
Premium/Discount Information
Information on the Fund’s net asset value, market price, premiums and discounts, and bid-ask spreads can be found at iShares.com.
Regulation under the Alternative Investment Fund Managers Directive
The Alternative Investment Fund Managers Directive, and its United Kingdom (“UK”) equivalent, ( “AIFMD”) impose detailed and prescriptive obligations on fund managers established in the European Union (the “EU”) and the UK. These do not currently apply to managers established outside of the EU or UK, such as BFA (the “Company”). Rather, the Company is only required to comply with certain disclosure, reporting and transparency obligations of AIFMD because it has registered the iShares MSCI Emerging Markets Min Vol Factor ETF (the “Fund”) to be marketed to investors in the EU and/or UK.
Report on Remuneration
The Company is required under AIFMD to make quantitative disclosures of remuneration. These disclosures are made in line with BlackRock’s interpretation of currently available regulatory guidance on quantitative remuneration disclosures. As market or regulatory practice develops BlackRock may consider it appropriate to make changes to the way in which quantitative remuneration disclosures are calculated. Where such changes are made, this may result in disclosures in relation to a fund not being comparable to the disclosures made in the prior year, or in relation to other BlackRock fund disclosures in that same year.
Disclosures are provided in relation to (a) the staff of the Company; (b) staff who are senior management; and (c) staff who have the ability to materially affect the risk profile of the Fund.
All individuals included in the aggregated figures disclosed are rewarded in line with BlackRock’s remuneration policy for their responsibilities across the relevant BlackRock business area. As all individuals have a number of areas of responsibilities, only the portion of remuneration for those individuals’ services attributable to the Fund is included in the aggregate figures disclosed.
BlackRock has a clear and well-defined pay-for-performance philosophy, and compensation programs which support that philosophy.
BlackRock operates a total compensation model for remuneration which includes a base salary, which is contractual, and a discretionary bonus scheme. Although all employees are eligible to receive a discretionary bonus, there is no contractual obligation to make a discretionary bonus award to any employees. For senior management and staff who have the ability to materially affect the risk profile of the Fund, a significant percentage of variable remuneration is deferred over time. All employees are subject to a clawback policy.
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Supplemental Information (unaudited) (continued)
Remuneration decisions for employees are made once annually in January following the end of the performance year, based on BlackRock’s full-year financial results and other non-financial goals and objectives. Alongside financial performance, individual total compensation is also based on strategic and operating results and other considerations such as management and leadership capabilities. No set formulas are established and no fixed benchmarks are used in determining annual incentive awards.
Annual incentive awards are paid from a bonus pool which is reviewed throughout the year by BlackRock’s independent compensation committee, taking into account both actual and projected financial information together with information provided by the Enterprise Risk and Regulatory Compliance departments in relation to any activities, incidents or events that warrant consideration in making compensation decisions. Individuals are not involved in setting their own remuneration.
Each of the control functions (Enterprise Risk, Legal & Compliance, and Internal Audit) each have their own organizational structures which are independent of the business units and therefore staff members in control functions are remunerated independently of the businesses they oversee. Functional bonus pools for those control functions are determined with reference to the performance of each individual function and the remuneration of the senior members of control functions is directly overseen by BlackRock’s independent remuneration committee.
Members of staff and senior management of the Company typically provide both AIFMD and non-AIFMD related services in respect of multiple funds, clients and functions of the Company and across the broader BlackRock group. Conversely, members of staff and senior management of the broader BlackRock group may provide both AIFMD and non-AIFMD related services in respect of multiple funds, clients and functions of the broader BlackRock group and of the Company. Therefore, the figures disclosed are a sum of individuals’ portion of remuneration attributable to the Company according to an objective apportionment methodology which acknowledges the multiple-service nature of the Company and the broader BlackRock group. Accordingly, the figures are not representative of any individual’s actual remuneration or their remuneration structure.
The amount of the total remuneration awarded to the Company’s staff in respect of the Company’s financial year ending December 31, 2022 was USD 4.12 million. This figure is comprised of fixed remuneration of USD 685 thousand and variable remuneration of USD 3.44 million. There was a total of 8 beneficiaries of the remuneration described above.
The amount of the aggregate remuneration awarded by the Company in respect of the Company’s financial year ending December 31, 2022, to its senior management was USD 2.96 million, and to other members of its staff whose actions potentially have a material impact on the risk profile of the Company or its funds was USD 970 thousand. These figures relate to the entire Company and not to the Fund.
Disclosures Under the EU Sustainable Finance Disclosure Regulation
The iShares MSCI Emerging Markets Min Vol Factor ETF (the “Fund”) is registered under the Alternative Investment Fund Managers Directive to be marketed to European Union (“EU”) investors, as noted above. As a result, certain disclosures are required under the EU Sustainable Finance Disclosure Regulation (“SFDR”).
The Fund has not been categorized under the SFDR as an “Article 8” or “Article 9” product. In addition, the Fund’s investment strategy does not take into account the criteria for environmentally sustainable economic activities under the EU sustainable investment taxonomy regulation or principal adverse impacts (“PAIs”) on sustainability factors under the SFDR. PAIs are identified under the SFDR as the material impacts of investment decisions on sustainability factors relating to environmental, social and employee matters, respect for human rights, and anti-corruption and anti-bribery matters.
S U P P L E M E N T A L I N F O R M A T I O N |
85 |
Director and Officer Information (unaudited)
The Board of Directors has responsibility for the overall management and operations of the Funds, including general supervision of the duties performed by BFA and other service providers. Each Director serves until he or she resigns, is removed, dies, retires or becomes incapacitated. Each officer shall hold office until his or her successor is elected and qualifies or until his or her death, resignation or removal. Directors who are not “interested persons” (as defined in the 1940 Act) of the Company are referred to as independent directors (“Independent Directors”).
The registered investment companies advised by BFAor its affiliates (the “BlackRock-advised Funds”) are organized into one complex of open-end equity, multi-asset, index and money market funds and ETFs (the “BlackRock Multi-Asset Complex”), one complex of closed-end funds and open-end non-index fixed-income funds (including ETFs) (the “BlackRock Fixed-Income Complex”) and one complex of ETFs (“Exchange-Traded Fund Complex”) (each, a “BlackRock Fund Complex”). Each Fund is included in the Exchange-Traded Fund Complex. Each Director also serves as a Trustee of iShares Trust and a Trustee of iShares U.S. ETF Trust and, as a result, oversees all of the funds within the Exchange-Traded Fund Complex, which consists of 387 funds as of August 31, 2023. With the exception of Robert S. Kapito, Salim Ramji and Aaron Wasserman, the address of each Trustee and officer is c/o BlackRock, Inc., 400 Howard Street, San Francisco, CA 94105. The address of Mr. Kapito, Mr. Ramji and Mr. Wasserman is c/o BlackRock, Inc., 50 Hudson Yards, New York, NY 10001. The Board has designated John E. Kerrigan as its Independent Board Chair. Additional information about the Funds’ Trustees and officers may be found in the Funds’ combined Statement of Additional Information, which is available without charge, upon request, by calling toll-free 1-800-iShares (1-800-474-2737).
Interested Directors | ||||||
Name (Year of Birth) |
Position(s) |
Principal Occupation(s) During Past 5 Years |
Other Directorships Held by Director | |||
Robert S. Kapito(a) (1957) | Director
(since 2009). |
President, BlackRock, Inc. (since 2006); Vice Chairman of BlackRock, Inc. and Head of BlackRock’s Portfolio Management Group (since its formation in 1998) and BlackRock, Inc.’s predecessor entities (since 1988); Trustee, University of Pennsylvania (since 2009); President of Board of Directors, Hope & Heroes Children’s Cancer Fund (since 2002). | Director of BlackRock, Inc. (since 2006); Trustee of iShares U.S. ETF Trust (since 2011); Trustee of iShares Trust (since 2009). | |||
Salim Ramji(b) (1970) | Director
(since 2019). |
Senior Managing Director, BlackRock, Inc. (since 2014); Global Head of BlackRock’s ETF and Index Investments Business (since 2019); Head of BlackRock’s U.S. Wealth Advisory Business (2015-2019); Global Head of Corporate Strategy, BlackRock, Inc. (2014-2015); Senior Partner, McKinsey & Company (2010-2014). | Trustee of iShares U.S. ETF Trust (since 2019); Trustee of iShares Trust (since 2019). |
(a) |
Robert S. Kapito is deemed to be an “interested person” (as defined in the 1940 Act) of the Trust due to his affiliations with BlackRock, Inc. and its affiliates. |
(b) |
Salim Ramji is deemed to be an “interested person” (as defined in the 1940 Act) of the Trust due to his affiliations with BlackRock, Inc. and its affiliates. |
Independent Directors | ||||||
Name (Year of Birth) |
Position(s) | Principal Occupation(s) During Past 5 Years |
Other Directorships Held by Director | |||
John E. Kerrigan (1955) | Director (since 2005); Independent Board Chair (since 2022). | Chief Investment Officer, Santa Clara University (since 2002). | Trustee of iShares U.S. ETF Trust (since 2011); Trustee of iShares Trust (since 2005); Independent Board Chair of iShares Trust and iShares U.S. ETF Trust (since 2022). | |||
Jane D. Carlin (1956) | Director (since 2015); Risk Committee Chair (since 2016). | Consultant (since 2012); Member of the Audit Committee (2012-2018), Chair of the Nominating and Governance Committee (2017-2018) and Director of PHH Corporation (mortgage solutions) (2012-2018); Managing Director and Global Head of Financial Holding Company Governance & Assurance and the Global Head of Operational Risk Management of Morgan Stanley (2006-2012). | Trustee of iShares U.S. ETF Trust (since 2015); Trustee of iShares Trust (since 2015); Member of the Audit Committee (since 2016), Chair of the Audit Committee (since 2020) and Director of The Hanover Insurance Group, Inc. (since 2016). | |||
Richard L. Fagnani (1954) | Director (since 2017); Audit Committee Chair (since 2019). | Partner, KPMG LLP (2002-2016); Director of One Generation Away (since 2021). | Trustee of iShares U.S. ETF Trust (since 2017); Trustee of iShares Trust (since 2017). | |||
Cecilia H. Herbert (1949) | Director (since 2005); Nominating and Governance and Equity Plus Committee Chairs (since 2022). | Chair of the Finance Committee (since 2019) and Trustee and Member of the Finance, Audit and Quality Committees of Stanford Health Care (since 2016); Trustee of WNET, New York’s public media company (since 2011) and Member of the Audit Committee (since 2018), Investment Committee (since 2011) and Personnel Committee (since 2022); Member of the Wyoming State Investment Funds Committee (since 2022); Director of the Jackson Hole Center for the Arts (since 2021); Trustee of Forward Funds (14 portfolios) (2009-2018); Trustee of Salient MF Trust (4 portfolios) (2015-2018). | Trustee of iShares U.S. ETF Trust (since 2011); Trustee of iShares Trust (since 2005). |
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Director and Officer Information (unaudited) (continued)
Independent Directors (continued) | ||||||
Name (Year of Birth) |
Position(s) | Principal Occupation(s) During Past 5 Years |
Other Directorships Held by Director | |||
Drew E. Lawton (1959) | Director (since 2017); 15(c) Committee Chair (since 2017). | Senior Managing Director of New York Life Insurance Company (2010-2015). | Trustee of iShares U.S. ETF Trust (since 2017); Trustee of iShares Trust (since 2017); Director of Jackson Financial Inc. (since 2021). | |||
John E. Martinez (1961) | Director (since 2003); Securities Lending Committee Chair (since 2019). | Director of Real Estate Equity Exchange, Inc. (since 2005); Director of Cloudera Foundation (2017-2020); and Director of Reading Partners (2012-2016). | Trustee of iShares U.S. ETF Trust (since 2011); Trustee of iShares Trust (since 2003). | |||
Madhav V. Rajan (1964) | Director (since 2011); Fixed-Income Plus Committee Chair (since 2019). | Dean, and George Pratt Shultz Professor of Accounting, University of Chicago Booth School of Business (since 2017); Advisory Board Member (since 2016) and Director (since 2020) of C.M. Capital Corporation; Chair of the Board for the Center for Research in Security Prices, LLC (since 2020); Robert K. Jaedicke Professor of Accounting, Stanford University Graduate School of Business (2001-2017); Professor of Law (by courtesy), Stanford Law School (2005-2017); Senior Associate Dean for Academic Affairs and Head of MBA Program, Stanford University Graduate School of Business (2010-2016). | Trustee of iShares U.S. ETF Trust (since 2011); Trustee of iShares Trust (since 2011). | |||
Officers | ||||||
Name (Year of Birth) |
Position(s) | Principal Occupation(s) During Past 5 Years | ||||
Dominik Rohé (1973) | President (since 2023). | Managing Director, BlackRock, Inc. (since 2005); Head of Americas ETF and Index Investments (since 2023); Head of Latin America (2019-2023). | ||||
Trent Walker (1974) | Treasurer and Chief Financial Officer (since 2020). | Managing Director, BlackRock, Inc. (since September 2019); Chief Financial Officer of iShares Delaware Trust Sponsor LLC, BlackRock Funds, BlackRock Funds II, BlackRock Funds IV, BlackRock Funds V and BlackRock Funds VI (since 2021); Executive Vice President of PIMCO (2016-2019); Senior Vice President of PIMCO (2008-2015); Treasurer (2013-2019) and Assistant Treasurer (2007-2017) of PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, 2 PIMCO-sponsored interval funds and 21 PIMCO-sponsored closed-end funds. | ||||
Aaron Wasserman (1974) | Chief Compliance Officer (iShares, Inc. and iShares Trust, since 2023; iShares U.S. ETF Trust, since 2023). | Managing Director of BlackRock, Inc. (since 2018); Chief Compliance Officer of the BlackRock Multi-Asset Complex, the BlackRock Fixed-Income Complex and the Exchange-Traded Fund Complex (since 2023); Deputy Chief Compliance Officer for the BlackRock Multi-Asset Complex, the BlackRock Fixed-Income Complex and the Exchange-Traded Fund Complex (2014-2023). | ||||
Marisa Rolland (1980) | Secretary (since 2022). | Managing Director, BlackRock, Inc. (since 2023); Director, BlackRock, Inc. (2018-2022); Vice President, BlackRock, Inc. (2010-2017). | ||||
Rachel Aguirre (1982) | Executive Vice President (since 2022). | Managing Director, BlackRock, Inc. (since 2018); Director, BlackRock, Inc. (2009-2018); Head of U.S. iShares Product (since 2022); Head of EII U.S. Product Engineering (since 2021); Co-Head of EII’s Americas Portfolio Engineering (2020-2021); Head of Developed Markets Portfolio Engineering (2016-2019). | ||||
Jennifer Hsui (1976) | Executive Vice President (since 2022). | Managing Director, BlackRock, Inc. (since 2009); Co-Head of Index Equity (since 2022). | ||||
James Mauro (1970) | Executive Vice President (since 2022). | Managing Director, BlackRock, Inc. (since 2010); Head of Fixed Income Index Investments in the Americas and Head of San Francisco Core Portfolio Management (since 2020). |
Effective March 30, 2023, Dominik Rohé replaced Armando Senra as President.
Effective July 1, 2023, Aaron Wasserman replaced Charles Park as Chief Compliance Officer. |
D I R E C T O R A N D O F F I C E R I N F O R M A T I O N |
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Electronic Delivery
Shareholders can sign up for e-mail notifications announcing that the shareholder report or prospectus has been posted on the iShares website at iShares.com. Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail.
To enroll in electronic delivery:
• |
Go to icsdelivery.com. |
• |
If your brokerage firm is not listed, electronic delivery may not be available. Please contact your broker-dealer or financial advisor. |
Householding
Householding is an option available to certain fund investors. Householding is a method of delivery, based on the preference of the individual investor, in which a single copy of certain shareholder documents and Rule 30e-3 notices can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.
Availability of Quarterly Schedule of Investments
The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to their reports on Form N-PORT. The Funds’ Forms N-PORT are available on the SEC’s website at sec.gov. Additionally, each Fund makes its portfolio holdings for the first and third quarters of each fiscal year available at iShares.com/fundreports.
Availability of Proxy Voting Policies and Proxy Voting Records
A description of the policies and procedures that the iShares Funds use to determine how to vote proxies relating to portfolio securities and information about how the iShares Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request (1) by calling toll-free 1-800-474-2737; (2) on the iShares website at iShares.com; and (3) on the SEC website at sec.gov.
A description of the Company’s policies and procedures with respect to the disclosure of the Fund’s portfolio securities is available in the Fund Prospectus. The Fund discloses its portfolio holdings daily and provides information regarding its top holdings in Fund fact sheets at iShares.com.
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2 0 2 3 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Glossary of Terms Used in this Report
Portfolio Abbreviation | ||
ADR | American Depositary Receipt | |
CPO | Certificates of Participation (Ordinary) | |
GDR | Global Depositary Receipt | |
JSC | Joint Stock Company | |
NVDR | Non-Voting Depositary Receipt | |
NVS | Non-Voting Shares | |
PJSC | Public Joint Stock Company |
G L O S S A R Y O F T E R M S U S E D I N T H I S R E P O R T |
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Want to know more?
iShares.com | 1-800-474-2737
This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus.
Investing involves risk, including possible loss of principal.
The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).
The iShares Funds are not sponsored, endorsed, issued, sold or promoted by MSCI Inc., nor does this company make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the company listed above.
©2023 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.
iS-AR-816-0823
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