LOGO

  AUGUST 31, 2023

 

   2023 Annual Report

 

iShares, Inc.

 

·  

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


The Markets in Review

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.

 

LOGO

Rob Kapito

President, BlackRock, Inc.

LOGO

Rob Kapito

President, BlackRock, Inc.

 

Total Returns as of August 31, 2023

 

    

 

 6-Month

 

 

 

12-Month

 

 

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

 

  14.50%   15.94%

 

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

 

  0.99    4.65 

 

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

 

  4.75    17.92 

 

Emerging market equities
(MSCI Emerging Markets Index)

 

  3.62    1.25 

 

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

 

  2.47    4.25 

 

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

 

  0.11    (4.71)

 

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

 

  0.95    (1.19)

 

Tax-exempt municipal bonds
(Bloomberg Municipal Bond Index)

 

  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.

 

 

 

2  

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


Table of Contents

 

      Page  

The Markets in Review

     2  

Annual Report:

  

Market Overview

     4  

Fund Summary

     5  

About Fund Performance

     15  

Disclosure of Expenses

     15  

Schedules of Investments

     16  

Financial Statements

  

Statements of Assets and Liabilities

     51  

Statements of Operations

     53  

Statements of Changes in Net Assets

     55  

Financial Highlights

     58  

Notes to Financial Statements

     63  

Report of Independent Registered Public Accounting Firm

     75  

Important Tax Information

     76  

Board Review and Approval of Investment Advisory Contract

     77  

Supplemental Information

     84  

Director and Officer Information

     86  

General Information

     88  

Glossary of Terms Used in this Report

     89  

 

 

 


Market Overview

 

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 TT 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)

 

LOGO

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                    

 

 

     

 

 

           
 

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          $  1,048.00          $  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 TT 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)

 

LOGO

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                    

 

 

     

 

 

           
 

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          $  1,037.70          $   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 TT 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)

 

LOGO

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                    

 

 

     

 

 

           
 

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          $  1,073.60          $  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 TT 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)

 

LOGO

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

Expense Example

 

Actual         Hypothetical 5% Return           

 

 

     

 

 

      
 

Beginning
Account Value
(03/01/23)
 
 
 
    

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 3I S H A R E S   A N N U A L  R E P O R TT 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)

 

LOGO

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

Expense Example

 

      Actual          Hypothetical 5% Return  
 

 

 

     

 

 

      
         

Beginning
Account Value
(03/01/23)
 
 
 
    

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 3I S H A R E S  A N N U A L  R E P O R TT O  S H A R E H O L D E R S


About Fund Performance

 

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

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

Disclosure of Expenses

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

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

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

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

 

 

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

  15


Schedule of Investments

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 3I S H A R E S  A N N U A L  R E P O R TT 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 EO 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 3I S H A R E S  A N N U A L  R E P O R TT 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 EO 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 TT 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%
(Cost: $580,670,290)

      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%
(Cost: $8,085,862)

       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%
(Cost: $—)

       2,319  
    

 

 

 

Total Long-Term Investments — 99.9%
(Cost: $588,756,152)

       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%
(Cost: $15,388,487)

       15,390,096  
    

 

 

 

Total Investments — 102.4%
(Cost: $604,144,639)

       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 EO 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
Distributions
from
Underlying
Funds

        
 

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 TT 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 EO 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
Ltd.(a)(c)

    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.
Ltd.(c)

    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.
Ltd.(a)(b)(c)

    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 TT 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 EO 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%
(Cost: $4,283,031,189)

       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 TT 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,
Preference Shares, NVS

    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,
Preference Shares

    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
Shares, NVS

    503,404       20,548,929  
   

 

 

 

Total Preferred Stocks — 2.5%
(Cost: $98,788,817)

 

    107,728,960  
   

 

 

 

Total Long-Term Investments — 99.7%
(Cost: $4,381,820,006)

 

    4,308,400,255  
   

 

 

 

Short-Term Securities

   
Money Market Funds — 0.8%            

BlackRock Cash Funds: Institutional, SL Agency
Shares, 5.52%(f)(g)(h)

    35,134,316       35,144,856  
   

 

 

 

Total Short-Term Securities — 0.8%
(Cost: $35,140,056)

 

    35,144,856  
   

 

 

 

Total Investments — 100.5%
(Cost: $4,416,960,062)

 

    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
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

  $  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 EO 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 TT 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 EO 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 EO 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 3I 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 EO 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 3I 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 EO 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%
(Cost: $5,177,393,617)

      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,
Preference Shares, NVS

    276,694       2,164,583  

Cia. Energetica de Minas Gerais,
Preference Shares, NVS

    1,529,073       3,807,205  

Gerdau SA, Preference Shares, NVS

    1,283,274       6,698,768  

Itau Unibanco Holding SA, Preference
Shares, NVS

    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
Shares, NVS(a)(d)

    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.,
Preference Shares, NVS

    901,835       36,812,864  
   

 

 

 
      43,939,773  
   

 

 

 

Total Preferred Stocks — 3.1%
(Cost: $164,933,163)

      160,910,475  
   

 

 

 

Rights

   
Brazil — 0.0%            

Itausa SA, (Expires 09/29/23, Strike
Price BRL 6.50)(a)

    76,437       42,756  
   

 

 

 
South Korea — 0.0%            

SK Innovation Co. Ltd., (Expires 09/19/23,
Strike Price KRW 139,600.00)(a)

    4,250       121,705  
   

 

 

 

Total Rights — 0.0%
(Cost: $—)

      164,461  
   

 

 

 

Total Long-Term Investments — 99.7%
(Cost: $5,342,326,780)

      5,133,171,764  
   

 

 

 

Short-Term Securities

   
Money Market Funds — 0.8%            

BlackRock Cash Funds: Institutional,
SL Agency Shares, 5.52%(f)(g)(h)

    40,010,331       40,022,334  
   

 

 

 

Total Short-Term Securities — 0.8%
(Cost: $40,020,478)

      40,022,334  
   

 

 

 

Total Investments — 100.5%
(Cost: $5,382,347,258)

      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
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

  $  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 EO 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 TT 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.,
Class H(a)

    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 EO 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 EO 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%
(Cost: $4,031,496,540)

       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%
(Cost: $48,316,093)

 

    25,412,026  
   

 

 

 
Rights            
China — 0.0%            

Kangmei Pharmaceutical Co. Ltd., (Expires 12/31/49)(a)

    167,567        
   

 

 

 

Total Rights — 0.0%
(Cost: $—)

 

     
   

 

 

 

Total Long-Term Investments — 99.7%
(Cost: $4,079,812,633)

 

    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%
(Cost: $41,711,298)

      41,723,121  
   

 

 

 

Total Investments — 100.6%
(Cost: $4,121,523,931)

      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 3I S H A R E S  A N N U A L  R E P O R TT 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
Contracts

    

Credit
Contracts

    

Equity
Contracts

    

Foreign

Currency

Exchange
Contracts

    

Interest

Rate
Contracts

    

Other
Contracts

    

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 EO 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 TT 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 EO 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 TT 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 EO 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%
(Cost: $4,234,434,504)

 

     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%
(Cost: $58,856,936)

 

     58,867,548  
    

 

 

 

Total Investments — 100.9%
(Cost: $4,293,291,440)

 

     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
Distributions
from
Underlying
Funds

     
 

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 EO 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
Rate

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 TT 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
MSCI

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
Vol Factor ETF

 

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 TT O  S H A R E H O L D E R S


Statements of Operations

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 TT 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 TT 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


Financial Highlights

(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 3I S H A R E S  A N N U A L  R E P O R TT 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 3I S H A R E S  A N N U A L  R E P O R TT 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 3I S H A R E S   A N N U A L  R E P O R TT O  S H A R E H O L D E R S


Notes to Financial Statements

 

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 ST 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 TT 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 ST 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 TT 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 ST 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 TT 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 ST 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 TT 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
Carryforwards(a)

    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 ST 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 TT 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 ST 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 TT 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 TO 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

  75


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

 

 

76  

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


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 WA N D   A P P R O V A LO F   I N V E S T M E N TA D V I S O R Y   C O N T R A C T

  77


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

 

 

78  

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


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 WA N D   A P P R O V A LO 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

  79


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

 

 

80  

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


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 WA N D   A P P R O V A LO 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

  81


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

 

 

82  

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


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 WA N D   A P P R O V A LO 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

  83


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
Income

     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.

 

 

84  

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


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).

 

 

86  

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


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 RA N D   O F F I C E R   I N F O R M A T I O N

  87


General Information

 

Electronic Delivery

Shareholders can sign up for e-mail notifications announcing that the shareholder report or prospectus has been posted on the iShares website at iShares.com. Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail.

To enroll in electronic delivery:

 

   

Go to icsdelivery.com.

   

If your brokerage firm is not listed, electronic delivery may not be available. Please contact your broker-dealer or financial advisor.

Householding

Householding is an option available to certain fund investors. Householding is a method of delivery, based on the preference of the individual investor, in which a single copy of certain shareholder documents and Rule 30e-3 notices can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.

Availability of Quarterly Schedule of Investments

The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to their reports on Form N-PORT. The Funds’ Forms N-PORT are available on the SEC’s website at sec.gov. Additionally, each Fund makes its portfolio holdings for the first and third quarters of each fiscal year available at iShares.com/fundreports.

Availability of Proxy Voting Policies and Proxy Voting Records

A description of the policies and procedures that the iShares Funds use to determine how to vote proxies relating to portfolio securities and information about how the iShares Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request (1) by calling toll-free 1-800-474-2737; (2) on the iShares website at iShares.com; and (3) on the SEC website at sec.gov.

A description of the 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.

 

 

88  

2 0 2 3  I S H A R E S   A N N U A L   R E P O R TT 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 YO F   T E R M S   U S E DI NT H I S   R E P O R T

  89


 

 

 

 

 

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

 

 

LOGO

   LOGO