LOGO

  SEPTEMBER 30, 2021

 

 

    

  

2021 Semi-Annual Report

(Unaudited)

 

 

iShares Trust

·  iShares Focused Value Factor ETF | FOVL | NYSE Arca

·  iShares U.S. Aerospace & Defense ETF | ITA | Cboe BZX

·  iShares U.S. Broker-Dealers & Securities Exchanges ETF | IAI | NYSE Arca

·  iShares U.S. Healthcare Providers ETF | IHF | NYSE Arca

·  iShares U.S. Home Construction ETF | ITB | Cboe BZX

·  iShares U.S. Infrastructure ETF | IFRA | Cboe BZX

·  iShares U.S. Insurance ETF | IAK | NYSE Arca

·  iShares U.S. Medical Devices ETF | IHI | NYSE Arca

·  iShares U.S. Oil & Gas Exploration & Production ETF | IEO | Cboe BZX

·  iShares U.S. Oil Equipment & Services ETF | IEZ | NYSE Arca

·  iShares U.S. Pharmaceuticals ETF | IHE | NYSE Arca

·  iShares U.S. Real Estate ETF | IYR | NYSE Arca

·  iShares U.S. Regional Banks ETF | IAT | NYSE Arca

·  iShares U.S. Telecommunications ETF | IYZ | Cboe BZX


The Markets in Review

Dear Shareholder,

The 12-month reporting period as of September 30, 2021 was a remarkable period of adaptation and recovery, as the global economy dealt with the implications of the coronavirus (or “COVID-19”) pandemic. The United States began the reporting period as the initial reopening-led economic rebound was beginning to slow. Nonetheless, the economy continued to grow at a brisk pace for the reporting period, eventually regaining the output lost from the pandemic.

Equity prices rose with the broader economy, as strong fiscal and monetary support, as well as the development of vaccines, made investors increasingly optimistic about the economic outlook. The implementation of mass vaccination campaigns and passage of two additional fiscal stimulus packages further boosted stocks, and many equity indices neared or surpassed all-time highs late in the reporting period. In the United States, returns of small-capitalization stocks, which benefited the most from the resumption of in-person activities, outpaced large-capitalization stocks. International equities also gained, as both developed and emerging markets continued to recover from the effects of the pandemic.

The 10-year U.S. Treasury yield (which is inversely related to bond prices) had fallen sharply prior to the beginning of the reporting period, which meant bonds were priced for extreme risk avoidance and economic disruption. Despite expectations of doom and gloom, the economy expanded rapidly, stoking inflation concerns in early 2021, which led to higher yields and a negative overall return for most U.S. Treasuries. In the corporate bond market, support from the U.S. Federal Reserve (the “Fed”) assuaged credit concerns and led to solid returns for high-yield corporate bonds, although investment-grade corporates declined slightly.

The Fed remained committed to accommodative monetary policy by maintaining near-zero interest rates and by reiterating that inflation could exceed its 2% target for a sustained period without triggering a rate increase. In response to rising inflation late in the period, the Fed changed its market guidance, raising the possibility of higher rates in 2022 and reducing bond purchasing beginning in late 2021.

Looking ahead, we believe that the global expansion will continue to broaden as Europe and other developed market economies gain momentum, although the delta variant of the coronavirus remains a threat, particularly in emerging markets. While we expect inflation to remain elevated in the medium-term as the expansion continues, we believe the recent uptick owes more to temporary supply disruptions than a lasting change in fundamentals. The change in Fed policy also means that moderate inflation is less likely to be followed by interest rate hikes that could threaten the economic expansion.

Overall, we favor a moderately positive stance toward risk, with an overweight in equities. Sectors that are better poised to manage the transition to a lower-carbon world, such as technology and health care, are particularly attractive in the long-term. U.S. small-capitalization stocks and European equities are likely to benefit from the continuing vaccine-led restart, while Chinese equities stand to gain from a more accommodative monetary and fiscal environment as the Chinese economy slows. We are underweight long-term credit, but inflation-protected U.S. Treasuries, Asian fixed income, and emerging market local-currency bonds offer potential opportunities. We believe that international diversification and a focus on sustainability can help provide portfolio resilience, and the disruption created by the coronavirus appears to be accelerating the shift toward sustainable investments.

In this environment, our view is that investors need to think globally, extend their scope across a broad array of asset classes, and be nimble as market conditions change. We encourage you to talk with your financial advisor and visit iShares.com for further insight about investing in today’s markets.

Sincerely,

Trust

 

LOGO

 

Rob Kapito

President, BlackRock, Inc.

LOGO

Rob Kapito

President, BlackRock, Inc.

 

Total Returns as of September 30, 2021
     
     6-Month     12-Month  
   

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

  9.18%   30.00%
   

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

  (0.25)      47.68   
   

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

  4.70      25.73   
   

Emerging market equities
(MSCI Emerging Markets Index)

  (3.45)      18.20   
   

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

  0.01      0.07  
   

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

  2.92      (6.22)  
   

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

  1.88      (0.90)  
   

Tax-exempt municipal bonds
(S&P Municipal Bond Index)

  1.24      2.71  
   

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

  3.65      11.27   
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

Fund Summary

   4

About Fund Performance

   18

Shareholder Expenses

   18

Schedules of Investments

   19

Financial Statements

  

Statements of Assets and Liabilities

   57

Statements of Operations

   61

Statements of Changes in Net Assets

   65

Financial Highlights

   72

Notes to Financial Statements

   86

Board Review and Approval of Investment Advisory Contract

   98

Supplemental Information

   106

General Information

   107

Glossary of Terms Used in this Report

   108

 

 

 


 

Fund Summary as of September 30, 2021    iShares® Focused Value Factor ETF

 

Investment Objective

The iShares Focused Value Factor ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. large- and mid-capitalization stocks with prominent value characteristics, as represented by the Focused Value Select 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    
     6 Months     1 Year    

Since

Inception

           1 Year    

Since

Inception

 

Fund NAV

    4.59     76.87     7.56       76.87     20.30

Fund Market

    4.61       76.81       7.59         76.81       20.41  

Index

    4.75       77.57       7.88               77.57       21.17  

The inception date of the Fund was 3/19/19. The first day of secondary market trading was 3/21/19.

Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.

Past performance is no guarantee 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” on page 18 for more information.

Expense Example

 

    Actual           Hypothetical 5% Return           
 

 

 

     

 

 

      
   

Beginning

Account Value

(04/01/21)

 

 

 

      

Ending

Account Value

(09/30/21)

 

 

 

      

Expenses

Paid During

the Period 

 

 

(a) 

     

Beginning

Account Value

(04/01/21)

 

 

 

      

Ending

Account Value

(09/30/21)

 

 

 

      

Expenses

Paid During

the Period 

 

 

(a) 

      

Annualized

Expense

Ratio

 

 

 

                 
      $        1,000.00              $      1,045.90              $        1.28               $      1,000.00              $      1,023.80              $        1.27          0.25

 

  (a)

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (183 days) and divided by the number of days in the year (365 days). 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 “Shareholder Expenses” on page 18 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

 

 
Sector    
Percent of   
Total Investments(a)
 
 

 

 

Insurance

    34.6%  

Banks

    21.2     

Diversified Financials

    17.5     

Technology Hardware & Equipment

    9.0     

Retailing

    8.1     

Food & Staples Retailing

    2.6     

Health Care Equipment & Services

    2.5     

Utilities

    2.3     

Automobiles & Components

    2.2     

 

 

TEN LARGEST HOLDINGS

 

 

 
Security    
Percent of   
Total Investments(a)
 
 

 

 

Penske Automotive Group Inc.

    3.3%  

Dick’s Sporting Goods Inc.

    3.0     

Zions Bancorp. NA

    2.9     

New York Community Bancorp. Inc.

    2.9     

Hartford Financial Services Group Inc. (The)

    2.8     

MGIC Investment Corp.

    2.7     

First American Financial Corp.

    2.7     

Raymond James Financial Inc.

    2.7     

Janus Henderson Group PLC

    2.7     

Kroger Co. (The)

    2.6     

 

 

 

  (a)

Excludes money market funds.

 

 

 

4  

2 0 2 1   I S H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


 

Fund Summary as of September 30, 2021    iShares® U.S. Aerospace & Defense ETF

 

Investment Objective

The iShares U.S. Aerospace & Defense ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. equities in the aerospace and defense sector, as represented by the Dow Jones U.S. Select Aerospace & Defense IndexTM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

           Average Annual Total Returns          Cumulative Total Returns  
     6 Months      1 Year      5 Years     10 Years          1 Year      5 Years      10 Years  

Fund NAV

    0.45      32.77      11.35     15.83        32.77      71.20      334.84

Fund Market

    0.47        32.75        11.35       15.83          32.75        71.22        334.60  

Index

    0.65        33.32        11.85       16.32            33.32        75.04        353.63  

Past performance is no guarantee 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” on page 18 for more information.

Expense Example

 

    Actual         Hypothetical 5% Return           
 

 

 

     

 

 

      
   

Beginning

Account Value

(04/01/21)

 

 

 

      

Ending

Account Value

(09/30/21)

 

 

 

      

Expenses

Paid During

the Period

 

 

 (a) 

     

Beginning

Account Value

(04/01/21)

 

 

 

      

Ending

Account Value

(09/30/21)

 

 

 

      

Expenses

Paid During

the Period 

 

 

(a) 

      

Annualized

Expense

Ratio

 

 

 

                 
      $        1,000.00              $      1,004.50              $        1.96           $      1,000.00              $      1,023.10              $        1.98          0.39

 

  (a)

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (183 days) and divided by the number of days in the year (365 days). 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 “Shareholder Expenses” on page 18 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

 

 
Sector    
Percent of   
Total Investments(a)
 
 

 

 

Aerospace & Defense

    97.3%  

Industrial Machinery

    2.0     

Leisure Products

    0.7     

 

 

TEN LARGEST HOLDINGS

 

 

 
Security    
Percent of   
Total Investments(a)
 
 

 

 

Raytheon Technologies Corp.

    20.6%  

Boeing Co. (The)

    19.3     

Lockheed Martin Corp.

    5.9     

TransDigm Group Inc.

    4.7     

Northrop Grumman Corp.

    4.4     

Textron Inc.

    4.3     

General Dynamics Corp.

    4.3     

L3Harris Technologies Inc.

    4.2     

Howmet Aerospace Inc.

    4.0     

Axon Enterprise Inc.

    3.8     

 

 

 

  (a)

Excludes money market funds.

 

 

 

F U N D   S U M M A R Y

  5


Fund Summary as of September 30, 2021    iShares® U.S. Broker-Dealers & Securities Exchanges ETF

 

Investment Objective

The iShares U.S. Broker-Dealers & Securities Exchanges ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. equities in the investment services sector, as represented by the Dow Jones U.S. Select Investment Services IndexTM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

           Average Annual Total Returns          Cumulative Total Returns  
     6 Months      1 Year      5 Years     10 Years           1 Year      5 Years      10 Years  

Fund NAV

    14.00      70.67      22.22     20.01          70.67      172.67      519.81

Fund Market

    14.04        70.42        22.24       20.02          70.42        172.94        520.28  

Index

    14.23        71.40        22.65       20.42            71.40        177.57        541.05  

Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.

Past performance is no guarantee 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” on page 18 for more information.

Expense Example

 

    Actual           Hypothetical 5% Return           
 

 

     

 

 

      
 

Beginning

Account Value

(04/01/21)

      

Ending

Account Value

(09/30/21)

 

 

 

      

Expenses

Paid During

the Period 

 

 

(a) 

     

Beginning

Account Value

(04/01/21)

 

 

 

      

Ending

Account Value

(09/30/21)

 

 

 

      

Expenses

Paid During

the Period 

 

 

(a) 

      

Annualized

Expense

Ratio

 

 

 

                 
    $        1,000.00            $      1,140.00              $        2.09               $      1,000.00              $      1,023.10              $        1.98          0.39

 

  (a)

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (183 days) and divided by the number of days in the year (365 days). 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 “Shareholder Expenses” on page 18 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

 

 
Sector    
Percent of   
Total Investments(a)
 
 

 

 

Investment Banking & Brokerage

    77.3%  

Financial Exchanges & Data

    22.5     

Asset Management & Custody Banks

    0.2     

 

 

TEN LARGEST HOLDINGS

 

 

 
Security    
Percent of   
Total Investments(a)
 
 

 

 

Morgan Stanley

    21.8%  

Goldman Sachs Group Inc. (The)

    19.8     

LPL Financial Holdings Inc.

    5.0     

Charles Schwab Corp. (The)

    4.7     

Raymond James Financial Inc.

    4.7     

CME Group Inc.

    4.6     

Cboe Global Markets Inc.

    4.6     

Nasdaq Inc.

    4.5     

Intercontinental Exchange Inc.

    4.5     

MarketAxess Holdings Inc.

    4.3     

 

 

 

  (a)

Excludes money market funds.

 

 

 

6  

2 0 2 1   I S H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Fund Summary as of September 30, 2021    iShares® U.S. Healthcare Providers ETF

 

Investment Objective

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

Performance

 

           Average Annual Total Returns          Cumulative Total Returns  
     6 Months      1 Year      5 Years     10 Years          1 Year      5 Years      10 Years  

Fund NAV

    2.00      27.28      16.96     18.31        27.28      118.85      437.12

Fund Market

    1.92        27.51        16.99       18.32          27.51        119.11        437.77  

Index

    2.16        27.73        17.42       18.75            27.73        123.25        457.39  

Past performance is no guarantee 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” on page 18 for more information.

Expense Example

 

    Actual           Hypothetical 5% Return           
 

 

 

     

 

 

      
   

Beginning

Account Value

(04/01/21)

 

 

 

      

Ending

Account Value

(09/30/21)

 

 

 

      

Expenses

Paid During

the Period 

 

 

(a) 

     

Beginning

Account Value

(04/01/21)

 

 

 

      

Ending

Account Value

(09/30/21)

 

 

 

      

Expenses

Paid During

the Period 

 

 

(a) 

      

Annualized

Expense

Ratio

 

 

 

                 
      $        1,000.00          $      1,020.00              $        1.97               $      1,000.00              $      1,023.10              $        1.98          0.39

 

  (a)

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (183 days) and divided by the number of days in the year (365 days). 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 “Shareholder Expenses” on page 18 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

 

 
Sector    
Percent of   
Total Investments(a)
 
 

 

 

Managed Health Care

    45.8%  

Health Care Services

    34.4     

Health Care Facilities

    11.2     

Health Care Technology

    7.7     

Life Sciences Tools & Services

    0.9     

 

 

TEN LARGEST HOLDINGS

 

 

 
Security    
Percent of   
Total Investments(a)
 
 

 

 

UnitedHealth Group Inc.

    22.1%  

CVS Health Corp.

    13.0     

Anthem Inc.

    10.3     

Centene Corp.

    4.7     

HCA Healthcare Inc.

    4.5     

Humana Inc.

    4.4     

Cigna Corp.

    4.4     

Laboratory Corp. of America Holdings

    3.9     

Teladoc Health Inc.

    2.9     

Quest Diagnostics Inc.

    2.6     

 

 

 

  (a)

Excludes money market funds.

 

 

 

F U N D   S U M M A R Y

  7


Fund Summary as of September 30, 2021    iShares® U.S. Home Construction ETF

 

Investment Objective

The iShares U.S. Home Construction ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. equities in the home construction sector, as represented by the Dow Jones U.S. Select Home Construction IndexTM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

           Average Annual Total Returns          Cumulative Total Returns  
     6 Months      1 Year      5 Years     10 Years          1 Year      5 Years      10 Years  

Fund NAV

    (2.25 )%       17.41      19.75     22.68        17.41      146.29      671.97

Fund Market

    (2.26      17.40        19.76       22.69          17.40        146.36        673.06  

Index

    (2.05      17.88        20.26       23.21            17.88        151.57        706.53  

Past performance is no guarantee 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” on page 18 for more information.

Expense Example

 

    Actual           Hypothetical 5% Return           
 

 

 

     

 

 

      
   

Beginning

Account Value

(04/01/21)

 

 

 

      

Ending

Account Value

(09/30/21)

 

 

 

      

Expenses

Paid During

the Period 

 

 

(a) 

     

Beginning

Account Value

(04/01/21)

 

 

 

      

Ending

Account Value

(09/30/21)

 

 

 

      

Expenses

Paid During

the Period 

 

 

(a) 

      

Annualized

Expense

Ratio

 

 

 

                 
      $        1,000.00              $      977.50              $        1.93               $      1,000.00              $      1,023.10              $        1.98          0.39

 

  (a)

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (183 days) and divided by the number of days in the year (365 days). 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 “Shareholder Expenses” on page 18 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

 

 
Sector    
Percent of   
Total Investments(a)
 
 

 

 

Homebuilding

    64.4%  

Building Products

    13.5     

Home Improvement Retail

    11.6     

Specialty Chemicals

    4.5     

Home Furnishings

    2.5     

Trading Companies & Distributors

    1.8     

Other (each representing less than 1%)

    1.7     

 

 

TEN LARGEST HOLDINGS

 

 

 
Security    
Percent of   
Total Investments(a)
 
 

 

 

DR Horton Inc.

    13.9%  

Lennar Corp., Class A

    13.1     

NVR Inc.

    8.2     

PulteGroup Inc.

    6.1     

Lowe’s Companies Inc.

    4.8     

Home Depot Inc. (The)

    4.8     

Sherwin-Williams Co. (The)

    4.5     

TopBuild Corp.

    3.4     

Toll Brothers Inc.

    3.3     

Masco Corp.

    2.1     

 

 

 

  (a)

Excludes money market funds.

 

 

 

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Fund Summary as of September 30, 2021    iShares® U.S. Infrastructure ETF

 

Investment Objective

The iShares U.S. Infrastructure ETF (the “Fund”) seeks to track the investment results of an index composed of equities of U.S. companies that have infrastructure exposure and that could benefit from a potential increase in domestic infrastructure activities, as represented by the NYSE® FactSet U.S. Infrastructure IndexSM (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    
     6 Months     1 Year    

Since

Inception

          1 Year    

Since

Inception

 

Fund NAV

    (0.54 )%      42.80     11.34       42.80     45.59

Fund Market

    (0.71     42.59       11.36         42.59       45.67  

Index

    (0.35     43.49       11.79               43.49       47.56  

The inception date of the Fund was 4/3/18. The first day of secondary market trading was 4/5/18.

Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.

Past performance is no guarantee 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” on page 18 for more information.

Expense Example

 

      Actual         Hypothetical 5% Return           
 

 

 

     

 

 

      
   

Beginning

Account Value

(04/01/21)

 

 

 

      

Ending

Account Value

(09/30/21)

 

 

 

      

Expenses

Paid During

the Period 

 

 

(a) 

     

Beginning

Account Value

(04/01/21)

 

 

 

      

Ending

Account Value

(09/30/21)

 

 

 

      

Expenses

Paid During

the Period 

 

 

(a) 

      

Annualized

Expense

Ratio

 

 

 

                 
          $        1,000.00              $         994.60              $        2.00           $      1,000.00              $      1,023.10              $        2.03          0.40

 

  (a)

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (183 days) and divided by the number of days in the year (365 days). 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 “Shareholder Expenses” on page 18 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

 

 
Sector       
Percent of   
Total Investments(a)
 
 

 

 

Electric Utilities

    18.5%  

Construction & Engineering

    12.1     

Multi-Utilities

    10.9     

Building Products

    7.1     

Steel

    7.1     

Gas Utilities

    6.4     

Oil & Gas Storage & Transportation

    5.9     

Water Utilities

    5.1     

Commodity Chemicals

    3.8     

Construction Materials

    3.0     

Railroads

    3.0     

Construction Machinery & Heavy Trucks

    3.0     

Aluminum

    1.9     

Trading Companies & Distributors

    1.8     

Specialty Chemicals

    1.8     

Environmental & Facilities Services

    1.2     

Industrial Machinery

    1.2     

Other (each representing less than 1%)

    6.2     

 

 

TEN LARGEST HOLDINGS

 

 

 
Security    
Percent of   
Total Investments(a)
 
 

 

 

EnLink Midstream LLC

    0.9%  

ONEOK Inc.

    0.9     

Equitrans Midstream Corp.

    0.9     

PG&E Corp.

    0.8     

Williams Companies Inc. (The)

    0.8     

Antero Midstream Corp.

    0.8     

Kinder Morgan Inc.

    0.8     

Otter Tail Corp.

    0.8     

DTE Midstream LLC

    0.8     

National Fuel Gas Co.

    0.8     

 

 

 

  (a)

Excludes money market funds.

 

 

 

F U N D   S U M M A R Y

  9


Fund Summary as of September 30, 2021    iShares® U.S. Insurance ETF

 

Investment Objective

The iShares U.S. Insurance ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. equities in the insurance sector, as represented by the Dow Jones U.S. Select Insurance IndexTM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

           Average Annual Total Returns          Cumulative Total Returns  
     6 Months      1 Year      5 Years     10 Years          1 Year      5 Years      10 Years  

Fund NAV

    6.55      43.74      10.46     14.25        43.74      64.41      278.98

Fund Market

    6.37        43.49        10.45       14.25          43.49        64.36        278.93  

Index

    6.73        44.28        10.89       14.74            44.28        67.64        295.38  

Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.

Past performance is no guarantee 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” on page 18 for more information.

Expense Example

 

      Actual         Hypothetical 5% Return           
 

 

 

     

 

 

      
         

Beginning

Account Value

(04/01/21)

 

 

 

      

Ending

Account Value

(09/30/21)

 

 

 

      

Expenses

Paid During

the Period 

 

 

(a) 

     

Beginning

Account Value

(04/01/21)

 

 

 

      

Ending

Account Value

(09/30/21)

 

 

 

      

Expenses

Paid During

the Period 

 

 

(a) 

      

Annualized

Expense

Ratio

 

 

 

                 
          $        1,000.00              $      1,065.50              $        2.02           $      1,000.00              $      1,023.10              $        1.98          0.39

 

  (a)

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (183 days) and divided by the number of days in the year (365 days). 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 “Shareholder Expenses” on page 18 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

 

 
Sector    
Percent of   
Total Investments(a)
 
 

 

 

Property & Casualty Insurance

    49.5%  

Life & Health Insurance

    27.6     

Multi-line Insurance

    13.8     

Insurance Brokers

    6.7     

Reinsurance

    1.3     

Other Diversified Financial Services

    1.1     

 

 

TEN LARGEST HOLDINGS

 

 

 
Security    
Percent of   
Total Investments(a)
 
 

 

 

Chubb Ltd.

    11.1%  

Progressive Corp. (The)

    7.7     

American International Group Inc.

    6.8     

MetLife Inc.

    6.6     

Prudential Financial Inc.

    5.9     

Travelers Companies Inc. (The)

    5.5     

Arthur J Gallagher & Co.

    4.6     

Allstate Corp. (The)

    4.4     

Aflac Inc.

    4.4     

Hartford Financial Services Group Inc. (The)

    3.7     

 

 

 

  (a)

Excludes money market funds.

 

 

 

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Fund Summary as of September 30, 2021    iShares® U.S. Medical Devices ETF

 

Investment Objective

The iShares U.S. Medical Devices ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. equities in the medical devices sector, as represented by the Dow Jones U.S. Select Medical Equipment IndexTM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

           Average Annual Total Returns          Cumulative Total Returns  
     6 Months      1 Year      5 Years     10 Years          1 Year      5 Years      10 Years  

Fund NAV

    14.26      25.87      21.40     21.51        25.87      163.64      601.50

Fund Market

    14.17        26.06        21.39       21.51          26.06        163.55        601.92  

Index

    14.48        26.35        21.91       22.02            26.35        169.28        631.47  

Past performance is no guarantee 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” on page 18 for more information.

Expense Example

 

      Actual         Hypothetical 5% Return           
 

 

 

     

 

 

      
   

Beginning
Account Value
(04/01/21)
 
 
 
      

Ending
Account Value
(09/30/21)
 
 
 
      

Expenses
Paid During
the Period 
 
 
(a) 
     

Beginning
Account Value
(04/01/21)
 
 
 
      

Ending
Account Value
(09/30/21)
 
 
 
      

Expenses
Paid During
the Period 
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
                 
              $        1,000.00              $      1,142.60              $         2.09           $      1,000.00              $      1,023.10              $        1.98          0.39

 

  (a)

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (183 days) and divided by the number of days in the year (365 days). 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 “Shareholder Expenses” on page 18 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

 

 
Sector    
Percent of   
Total Investments(a)
 
 

 

 

Health Care Equipment

    83.2%  

Life Sciences Tools & Services

    16.4     

Health Care Supplies

    0.4     

 

 

TEN LARGEST HOLDINGS

 

 

 
Security    
Percent of   
Total Investments(a)
 
 

 

 

Thermo Fisher Scientific Inc.

    13.2%  

Abbott Laboratories

    12.3     

Danaher Corp.

    11.4     

Medtronic PLC

    8.3     

Stryker Corp.

    4.5     

Becton Dickinson and Co.

    4.5     

Edwards Lifesciences Corp.

    4.4     

Intuitive Surgical Inc.

    4.4     

Boston Scientific Corp.

    4.1     

IDEXX Laboratories Inc.

    3.5     

 

 

 

  (a)

Excludes money market funds.

 

 

 

F U N D   S U M M A R Y

  11


Fund Summary as of September 30, 2021    iShares® U.S. Oil & Gas Exploration & Production ETF

 

Investment Objective

The iShares U.S. Oil & Gas Exploration & Production ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. equities in the oil and gas exploration and production sector, as represented by the Dow Jones U.S. Select Oil Exploration & Production IndexTM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

           Average Annual Total Returns          Cumulative Total Returns  
     6 Months      1 Year      5 Years     10 Years          1 Year      5 Years      10 Years  

Fund NAV

    21.12      125.50      0.96     2.93        125.50      4.89      33.49

Fund Market

    21.02        125.36        0.97       2.93          125.36        4.93        33.43  

Index

    21.39        126.52        1.37       3.35            126.52        7.05        38.96  

Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.

Past performance is no guarantee 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” on page 18 for more information.

Expense Example

 

      Actual         Hypothetical 5% Return           
 

 

 

     

 

 

      
   

Beginning
Account Value
(04/01/21)
 
 
 
      

Ending
Account Value
(09/30/21)
 
 
 
      

Expenses
Paid During
the Period 
 
 
(a) 
     

Beginning
Account Value
(04/01/21)
 
 
 
      


Ending

Account Value
(09/30/21)



 

      

Expenses
Paid During
the Period 
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
                 
          $       1,000.00              $      1,211.20              $        2.16           $      1,000.00              $      1,023.10              $        1.98          0.39

 

  (a)

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (183 days) and divided by the number of days in the year (365 days). 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 “Shareholder Expenses” on page 18 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

 

 
Sector    
Percent of   
Total Investments(a)
 
 

 

 

Oil & Gas Exploration & Production

    74.1%  

Oil & Gas Refining & Marketing

    19.2     

Oil & Gas Storage & Transportation

    6.7     

 

 

TEN LARGEST HOLDINGS

 

 

 
Security    
Percent of   
Total Investments(a)
 
 

 

 

ConocoPhillips

    18.1%  

EOG Resources Inc.

    9.4     

Marathon Petroleum Corp.

    7.9     

Pioneer Natural Resources Co.

    7.5     

Devon Energy Corp.

    4.9     

Hess Corp.

    4.4     

Valero Energy Corp.

    4.3     

Cheniere Energy Inc.

    4.2     

Phillips 66

    4.1     

Diamondback Energy Inc.

    3.6     

 

 

 

  (a)

Excludes money market funds.

 

 

 

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Fund Summary as of September 30, 2021    iShares® U.S. Oil Equipment & Services ETF

 

Investment Objective

The iShares U.S. Oil Equipment & Services ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. equities in the oil equipment and services sector, as represented by the Dow Jones U.S. Select Oil Equipment & Services IndexTM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

               Average Annual Total Returns          Cumulative Total Returns  
     6 Months      1 Year      5 Years     10 Years              1 Year      5 Years      10 Years  

Fund NAV

    2.38      91.72      (17.30 )%      (9.35)%          91.72      (61.33 )%       (62.54 )% 

Fund Market

    2.38        91.98        (17.30     (9.35)             91.98        (61.32      (62.54

Index

    2.54        92.90        (17.04     (9.08)               92.90        (60.70      (61.39

Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.

Past performance is no guarantee 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” on page 18 for more information.

Expense Example

 

      Actual         Hypothetical 5% Return           
 

 

 

     

 

 

      
         

Beginning
Account Value
(04/01/21)
 
 
 
      

Ending
Account Value

(09/30/21)

 

 

      

Expenses
Paid During
the Period 
 
 
(a) 
     

Beginning
Account Value
(04/01/21)
 
 
 
      

Ending
Account Value
(09/30/21)
 
 
 
      

Expenses
Paid During
the Period 
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
                 
          $       1,000.00              $      1,023.80              $        1.98               $      1,000.00              $      1,023.10              $        1.98          0.39

 

  (a)

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (183 days) and divided by the number of days in the year (365 days). 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 “Shareholder Expenses” on page 18 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

 

 
Sector    
Percent of   
Total Investments(a)
 
 

 

 

Oil & Gas Equipment & Services

    87.3%  

Oil & Gas Drilling

    12.7     

 

 

TEN LARGEST HOLDINGS

 

 

 
Security    
Percent of   
Total Investments(a)
 
 

 

 

Schlumberger NV

    22.9%  

Baker Hughes Co.

    21.4     

TechnipFMC PLC

    4.9     

Halliburton Co.

    4.6     

NOV Inc.

    4.3     

Helmerich & Payne Inc.

    4.2     

ChampionX Corp.

    4.2     

Transocean Ltd.

    4.1     

Cactus Inc., Class A

    3.9     

Patterson-UTI Energy Inc.

    3.1     

 

 

 

  (a)

Excludes money market funds.

 

 

 

F U N D   S U M M A R Y

  13


Fund Summary as of September 30, 2021    iShares® U.S. Pharmaceuticals ETF

 

Investment Objective

The iShares U.S. Pharmaceuticals ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. equities in the pharmaceuticals sector, as represented by the Dow Jones U.S. Select Pharmaceuticals IndexTM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

           Average Annual Total Returns          Cumulative Total Returns  
     6 Months      1 Year      5 Years     10 Years          1 Year      5 Years      10 Years  

Fund NAV

    4.02      13.73      5.56     12.27        13.73      31.08      218.05

Fund Market

    3.95        13.68        5.60       12.28          13.68        31.32        218.35  

Index

    4.22        14.12        5.85       12.62            14.12        32.90        228.19  

Past performance is no guarantee 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” on page 18 for more information.

Expense Example

 

      Actual         Hypothetical 5% Return           
 

 

 

     

 

 

      
   

Beginning
Account Value
(04/01/21)
 
 
 
      

Ending
Account Value
(09/30/21)
 
 
 
      

Expenses
Paid During
the Period 
 
 
(a) 
     

Beginning
Account Value
(04/01/21)
 
 
 
      

Ending
Account Value
(09/30/21)
 
 
 
      

Expenses
Paid During
the Period 
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
                 
          $        1,000.00              $      1,040.20              $        1.99           $      1,000.00              $      1,023.10              $        1.98          0.39

 

  (a)

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (183 days) and divided by the number of days in the year (365 days). 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 “Shareholder Expenses” on page 18 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

 

 
Sector    
Percent of   
Total Investments(a)
 
 

 

 

Pharmaceuticals

    97.1%  

Biotechnology

    2.9     

 

 

TEN LARGEST HOLDINGS

 

 

 
Security    
Percent of   
Total Investments(a)
 
 

 

 

Johnson & Johnson

    22.4%  

Pfizer Inc.

    19.1     

Merck & Co. Inc.

    4.7     

Elanco Animal Health Inc.

    4.5     

Catalent Inc.

    4.5     

Royalty Pharma PLC, Class A

    4.4     

Viatris Inc.

    4.4     

Zoetis Inc.

    4.4     

Bristol-Myers Squibb Co.

    4.3     

Eli Lilly & Co.

    4.3     

 

 

 

  (a)

Excludes money market funds.

 

 

 

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Fund Summary as of September 30, 2021    iShares® U.S. Real Estate ETF

 

Investment Objective

The iShares U.S. Real Estate ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. equities in the real estate sector, as represented by the Dow Jones U.S. Real Estate Capped IndexTM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

           Average Annual Total Returns          Cumulative Total Returns  
     6 Months      1 Year      5 Years     10 Years          1 Year      5 Years      10 Years  

Fund NAV

    12.42      30.80      8.29     11.16        30.80      48.94      188.08

Fund Market

    12.23        30.81        8.29       11.15          30.81        48.91        187.80  

Index

    12.64        30.86        8.66       11.65            30.86        51.49        200.95  

Index performance through January 24, 2021 reflects the performance of the Dow Jones U.S. Real Estate IndexTM. Index performance beginning on January 25, 2021 reflects the performance of the Dow Jones U.S. Real Estate Capped IndexTM.

Past performance is no guarantee 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” on page 18 for more information.

Expense Example

 

      Actual         Hypothetical 5% Return           
 

 

 

     

 

 

      
   

Beginning
Account Value
(04/01/21)
 
 
 
      

Ending
Account Value
(09/30/21)
 
 
 
      


Expenses

Paid During
the Period 

 


(a) 

     

Beginning
Account Value
(04/01/21)
 
 
 
      

Ending
Account Value
(09/30/21)
 
 
 
      

Expenses
Paid During
the Period 
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
                 
          $        1,000.00              $      1,124.20              $        2.08           $      1,000.00              $      1,023.10              $        1.98          0.39

 

  (a)

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (183 days) and divided by the number of days in the year (365 days). 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 “Shareholder Expenses” on page 18 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

 

 
Sector    
Percent of   
Total Investments(a)
 
 

 

 

Specialized REITs

    37.7%  

Residential REITs

    15.3     

Industrial REITs

    10.7     

Retail REITs

    8.6     

Health Care REITs

    8.2     

Office REITs

    6.5     

Real Estate Services

    4.2     

Mortgage REITs

    2.7     

Diversified REITs

    2.5     

Research & Consulting Services

    2.5     

Other (each representing less than 1%)

    1.1     

 

 

TEN LARGEST HOLDINGS

 

 

 
Security    
Percent of   
Total Investments(a)
 
 

 

 

American Tower Corp.

    8.6%  

Prologis Inc.

    6.6     

Crown Castle International Corp.

    5.3     

Equinix Inc.

    4.3     

Public Storage

    3.3     

Simon Property Group Inc.

    3.1     

Digital Realty Trust Inc.

    2.9     

SBA Communications Corp.

    2.6     

Welltower Inc.

    2.5     

CoStar Group Inc.

    2.5     

 

 

 

  (a)

Excludes money market funds.

 

 

 

F U N D   S U M M A R Y

  15


Fund Summary as of September 30, 2021    iShares® U.S. Regional Banks ETF

 

Investment Objective

The iShares U.S. Regional Banks ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. equities in the regional banks sector, as represented by the Dow Jones U.S. Select Regional Banks IndexTM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

           Average Annual Total Returns          Cumulative Total Returns  
     6 Months      1 Year      5 Years     10 Years          1 Year      5 Years      10 Years  

Fund NAV

    7.97      88.98      14.18     15.27        88.98      94.04      314.11

Fund Market

    7.91        89.04        14.18       15.27          89.04        94.10        314.23  

Index

    8.13        89.86        14.65       15.77            89.86        98.09        332.64  

Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.

Past performance is no guarantee 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” on page 18 for more information.

Expense Example

 

      Actual         Hypothetical 5% Return           
 

 

 

     

 

 

      
   

Beginning
Account Value
(04/01/21)
 
 
 
      

Ending
Account Value
(09/30/21)
 
 
 
      

Expenses
Paid During
the Period 
 
 
(a) 
     

Beginning
Account Value
(04/01/21)
 
 
 
      

Ending
Account Value
(09/30/21)
 
 
 
      

Expenses
Paid During
the Period 
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
                 
          $        1,000.00              $      1,079.70              $        2.03           $      1,000.00              $      1,023.10          $        1.98          0.39

 

  (a)

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (183 days) and divided by the number of days in the year (365 days). 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 “Shareholder Expenses” on page 18 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

 

 
Sector    
Percent of   
Total Investments(a)
 
 

 

 

Regional Banks

    86.2%  

Diversified Banks

    12.7     

Thrifts & Mortgage Finance

    1.1     

 

 

TEN LARGEST HOLDINGS

 

 

 
Security    
Percent of   
Total Investments(a)
 
 

 

 

PNC Financial Services Group Inc. (The)

    13.2%  

U.S. Bancorp.

    12.7     

Truist Financial Corp.

    12.4     

First Republic Bank/CA

    5.4     

Fifth Third Bancorp.

    4.7     

SVB Financial Group

    4.7     

Huntington Bancshares Inc./OH

    3.7     

KeyCorp

    3.4     

Regions Financial Corp.

    3.3     

Citizens Financial Group Inc.

    3.3     

 

 

 

  (a)

Excludes money market funds.

 

 

 

16  

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Fund Summary as of September 30, 2021    iShares® U.S. Telecommunications ETF

 

Investment Objective

The iShares U.S. Telecommunications ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. equities in the telecommunications sector, as represented by the Russell 1000 Telecommunications RIC 22.5/45 Capped Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

          Average Annual Total Returns         Cumulative Total Returns  
     6 Months     1 Year     5 Years     10 Years         1 Year     5 Years     10 Years  

Fund NAV

    1.60     22.69     2.86     7.53       22.69     15.16     106.68

Fund Market

    1.85       22.76       2.88       7.52         22.76       15.26       106.58  

Index(a)

    1.82       23.12       3.04       7.75         23.12       16.13       110.94  

Dow Jones U.S. Select Telecommunications Index

    2.22       23.61       3.12       7.79         23.61       16.59       111.77  

Russell 1000 Telecommunications RIC 22.5/45 Capped Index(b)

    N/A       N/A       N/A       N/A           N/A       N/A       N/A  

 

  (a)

Index performance through September 19, 2021 reflects the performance of the Dow Jones U.S. Select Telecommunications Index. Index performance beginning on September 20, 2021 reflects the performance of the Russell 1000 Telecommunications RIC 22.5/45 Capped Index, which, effective as of September 20, 2021, replaced the Dow Jones U.S. Select Telecommunications Index as the underlying index of the fund.

 
  (b)

The inception date of the Russell 1000 Telecommunications RIC 22.5/45 Capped Index was July 9, 2021. The cumulative total return for this index for the period July 9, 2021 through September 30, 2021 was -5.87%.

 

Past performance is no guarantee 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” on page 18 for more information.

Expense Example

 

      Actual         Hypothetical 5% Return           
 

 

 

     

 

 

      
   

Beginning
Account Value
(04/01/21)
 
 
 
      

Ending
Account Value
(09/30/21)
 
 
 
      

Expenses
Paid During
the Period 
 
 
(a) 
     

Beginning
Account Value
(04/01/21)
 
 
 
      

Ending
Account Value
(09/30/21)
 
 
 
      

Expenses
Paid During
the Period 
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
                 
          $        1,000.00              $      1,016.00              $        1.97           $      1,000.00              $      1,023.10              $        1.98          0.39

 

  (a)

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (183 days) and divided by the number of days in the year (365 days). 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 “Shareholder Expenses” on page 18 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

 

 
Sector    
Percent of   
Total Investments(a)
 
 

 

 

Communications Equipment

    39.5%  

Media

    31.3     

Diversified Telecommunication Services

    22.3     

Wireless Telecommunication Services

    3.6     

Entertainment

    3.3     

 

 

TEN LARGEST HOLDINGS

 

 

 
Security    
Percent of   
Total Investments(a)
 
 

 

 

Comcast Corp., Class A

    16.1%  

Cisco Systems Inc.

    14.6     

Verizon Communications Inc.

    14.3     

AT&T Inc.

    4.7     

Charter Communications Inc., Class A

    3.6     

T-Mobile U.S. Inc.

    3.6     

Viasat Inc.

    3.5     

Lumen Technologies Inc.

    3.3     

Motorola Solutions Inc.

    3.3     

Roku Inc.

    3.3     

 

 

 

  (a)

Excludes money market funds.

 

 

 

F U N D   S U M M A R Y

  17


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 by 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.

Shareholder Expenses

As a shareholder of your Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested at the beginning of the period (or from the commencement of operations if less than 6 months) and held through the end of the period, is intended to help you understand your ongoing costs (in dollars and cents) of investing in your Fund and to compare these costs with the ongoing costs of investing in other funds.

Actual Expenses – The table provides information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. To estimate the expenses that you paid on your account over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During the Period.”

Hypothetical Example for Comparison Purposes – The table also provides information about hypothetical account values and hypothetical expenses based on your Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions and other fees paid on purchases and sales of fund shares. Therefore, the hypothetical examples are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

 

 

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Schedule of Investments (unaudited)

September 30, 2021

  

iShares® Focused Value Factor ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Apparel Retail — 1.8%  

Foot Locker Inc.

    13,188     $ 602,164  
   

 

 

 
Asset Management & Custody Banks — 4.9%  

Invesco Ltd.

    30,406       733,089  

Janus Henderson Group PLC

    20,942       865,533  
   

 

 

 
      1,598,622  
Automobile Manufacturers — 2.2%        

General Motors Co.(a)

    13,736       724,025  
   

 

 

 
Automotive Retail — 3.3%            

Penske Automotive Group Inc.

    10,766       1,083,060  
   

 

 

 
Consumer Finance — 5.1%            

Ally Financial Inc.

    16,308       832,524  

Capital One Financial Corp.

    5,254       850,990  
   

 

 

 
          1,683,514  
Food Retail — 2.6%  

Kroger Co. (The)

    21,215       857,722  
   

 

 

 
Health Care Services — 2.5%            

CVS Health Corp.

    9,741       826,621  
   

 

 

 
Independent Power Producers & Energy Traders — 2.3%  

Vistra Corp.

    43,814       749,219  
   

 

 

 
Investment Banking & Brokerage — 7.4%  

Raymond James Financial Inc.

    9,385       866,048  

Stifel Financial Corp.

    12,531       851,606  

Virtu Financial Inc., Class A

    29,416       718,633  
   

 

 

 
      2,436,287  
Life & Health Insurance — 10.0%            

Aflac Inc.

    15,146       789,561  

MetLife Inc.

    13,580       838,294  

Principal Financial Group Inc.

    12,862       828,313  

Prudential Financial Inc.

    7,932       834,446  
   

 

 

 
      3,290,614  
Multi-line Insurance — 2.8%            

Hartford Financial Services Group Inc. (The)

    13,115       921,329  
   

 

 

 
Property & Casualty Insurance — 19.1%  

Allstate Corp. (The)

    6,231       793,269  

Arch Capital Group Ltd.(a)

    20,872       796,893  

CNA Financial Corp.

    17,867       749,699  

Fidelity National Financial Inc.

    18,701       847,903  

First American Financial Corp.

    13,036       874,064  

Hanover Insurance Group Inc. (The)

    5,992       776,683  

Mercury General Corp.

    12,514       696,654  

Old Republic International Corp.

    32,628       754,686  
   

 

 

 
      6,289,851  
Security   Shares     Value  
Regional Banks — 15.5%            

BOK Financial Corp.

    9,385     $ 840,427  

First Horizon Corp.

    47,034       766,184  

KeyCorp.

    39,359       850,941  

People’s United Financial Inc.

    47,419       828,410  

Popular Inc.

    10,830       841,166  

Zions Bancorp. NA

    15,376       951,621  
   

 

 

 
      5,078,749  
Reinsurance — 2.5%            

Everest Re Group Ltd.

    3,225       808,765  
   

 

 

 
Specialty Stores — 3.0%            

Dick’s Sporting Goods Inc.

    8,112       971,574  
   

 

 

 
Technology Distributors — 4.4%            

Avnet Inc.

    20,278       749,678  

SYNNEX Corp.

    6,675       694,867  
   

 

 

 
      1,444,545  
Technology Hardware, Storage & Peripherals — 4.5%  

Hewlett Packard Enterprise Co.

    55,744       794,352  

Xerox Holdings Corp.

    34,600       697,882  
   

 

 

 
      1,492,234  
Thrifts & Mortgage Finance — 5.6%            

MGIC Investment Corp.

    59,761       894,025  

New York Community Bancorp. Inc.

    73,753       949,201  
   

 

 

 
      1,843,226  
   

 

 

 

Total Common Stocks — 99.5%
(Cost: $31,600,953)

 

    32,702,121  
   

 

 

 

Short-Term Investments

 

 

Money Market Funds — 0.2%

 

 

BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%(b)(c)

    80,000       80,000  
   

 

 

 

Total Short -Term Investments — 0.2%
(Cost: $80,000)

 

    80,000  
   

 

 

 

Total Investments in Securities — 99.7%
(Cost: $31,680,953)

      32,782,121  

Other Assets, Less Liabilities — 0.3%

      96,656  
   

 

 

 

Net Assets — 100.0%

    $   32,878,777  
   

 

 

 

 

(a)

Non-income producing security.

(b)

Affiliate of the Fund.

(c)

Annualized 7-day yield as of period end.

 

 

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

  19


Schedule of Investments (unaudited) (continued)

September 30, 2021

  

iShares® Focused Value Factor ETF

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended September 30, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer   

Value at

03/31/21

    

Purchases

at Cost

   

Proceeds

from Sales

   

Net Realized

Gain (Loss)

    

Change in

Unrealized

Appreciation

(Depreciation)

    

Value at

09/30/21

    

Shares

Held at

09/30/21

     Income     

Capital

Gain

Distributions

from

Underlying

Funds

 

 

 

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

   $ 167,200      $     $ (167,318 )(b)    $ 118      $      $             $ 230 (c)     $  

BlackRock Cash Funds: Treasury, SL Agency Shares

     50,000        30,00 0(b)                          80,000        80,000        2         
         

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 
          $ 118      $      $ 80,000         $ 232      $  
         

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 

 

  (a)

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

 
  (b)

Represents net amount purchased (sold).

 
  (c)

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

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

 

 
Description   

Number of

Contracts

      

Expiration

Date

      

Notional

Amount

(000)

  

Value/

Unrealized

Appreciation

(Depreciation)

 

 

 
Long Contracts                              

E-Mini Financial Select Sector Index

     1          12/17/21        $   115    $ 248  
               

 

 

 

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:

 

 

 
    

Equity

Contracts

 

 

 

Assets — Derivative Financial Instruments

  

Futures contracts

  

Unrealized appreciation on futures contracts(a)

   $ 248  
  

 

 

 

 

  (a)

Net cumulative 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 September 30, 2021, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

 
    

Equity

Contracts

 

 

 

Net Realized Gain (Loss) from:

  

Futures contracts

   $ (4,453
  

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

  

Futures contracts

   $ 248  
  

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Futures contracts:

  

Average notional value of contracts — long

   $ 76,088     

 

 

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

 

 

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Schedule of Investments (unaudited) (continued)

September 30, 2021

  

iShares® Focused Value Factor ETF

 

Fair Value Hierarchy as of Period End

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

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

 

                                                                           

 

 
     Level 1        Level 2        Level 3        Total  

 

 

Investments

                 

Assets

                 

Common Stocks

   $ 32,702,121        $        $        $ 32,702,121  

Money Market Funds

     80,000                            80,000  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 32,782,121        $        $        $ 32,782,121  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative financial instruments(a)

                 

Assets

                 

Futures Contracts

   $ 248        $        $        $ 248  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a)

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

 

See notes to financial statements.

 

 

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

  21


Schedule of Investments (unaudited) 

September 30, 2021

  

iShares® U.S. Aerospace & Defense ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

 

Common Stocks

   
Aerospace & Defense — 97.2%            

AAR Corp.(a)

    284,524     $ 9,227,113  

Aerojet Rocketdyne Holdings Inc.

    637,537       27,764,736  

Aerovironment Inc.(a)(b)

    197,055       17,009,788  

Axon Enterprise Inc.(a)

    562,053       98,370,516  

Boeing Co. (The)(a)

    2,279,797       501,418,552  

BWX Technologies Inc.

    814,524       43,870,263  

Curtiss-Wright Corp.

    349,882       44,148,111  

General Dynamics Corp.

    565,073       110,771,260  

HEICO Corp.

    357,698       47,169,635  

HEICO Corp., Class A

    631,240       74,757,753  

Hexcel Corp.(a)

    717,582       42,617,195  

Howmet Aerospace Inc.

    3,303,561       103,071,103  

Huntington Ingalls Industries Inc.

    343,528       66,321,516  

Kaman Corp.

    237,839       8,483,717  

Kratos Defense & Security Solutions Inc.(a)(b)

    1,061,166       23,674,613  

L3Harris Technologies Inc.

    500,327       110,192,019  

Lockheed Martin Corp.

    444,070       153,248,557  

Maxar Technologies Inc.(b)

    620,654       17,576,921  

Mercury Systems Inc.(a)

    480,825       22,800,722  

Moog Inc., Class A

    250,652       19,107,202  

National Presto Industries Inc.

    43,567       3,575,979  

Northrop Grumman Corp.

    320,479       115,420,512  

PAE Inc.(a)(b)

    536,095       3,205,848  

Parsons Corp.(a)(b)

    228,361       7,709,467  

Raytheon Technologies Corp.

    6,239,138       536,316,303  

Spirit AeroSystems Holdings Inc., Class A(b)

    902,266       39,871,135  

Textron Inc.(b)

    1,622,211       113,246,550  

TransDigm Group Inc.(a)

    197,429       123,308,231  

Triumph Group Inc.(a)

    552,391       10,291,044  

Virgin Galactic Holdings Inc.(a)(b)

    1,519,131       38,434,014  
   

 

 

 
        2,532,980,375  
Security   Shares     Value  

 

 
Industrial Machinery — 2.0%        

RBC Bearings Inc.(a)(b)

    243,268     $ 51,621,469  
   

 

 

 
Leisure Products — 0.7%        

Smith & Wesson Brands Inc.

    410,233       8,516,437  

Sturm Ruger & Co. Inc.

    150,484       11,102,710  
   

 

 

 
      19,619,147  
   

 

 

 

Total Common Stocks — 99.9%
(Cost: $2,501,209,278)

      2,604,220,991  
   

 

 

 

Short-Term Investments

 

Money Market Funds — 2.6%

 

BlackRock Cash Funds: Institutional, SL Agency Shares, 0.05%(c)(d)(e)

    63,664,525       63,696,357  

BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%(c)(d)

    2,540,000       2,540,000  
   

 

 

 
      66,236,357  
   

 

 

 

Total Short -Term Investments — 2.6%
(Cost: $66,214,965)

 

    66,236,357  
   

 

 

 

Total Investments in Securities — 102.5%
(Cost: $2,567,424,243)

 

    2,670,457,348  

Other Assets, Less Liabilities — (2.5)%

 

    (64,365,809
   

 

 

 

Net Assets — 100.0%

    $  2,606,091,539  
   

 

 

 

 

(a)

Non-income producing security.

(b)

All or a portion of this security is on loan.

(c)

Affiliate of the Fund.

(d)

Annualized 7-day yield as of period end.

(e)

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 six months ended September 30, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer   

Value at

03/31/21

    

Purchases

at Cost

    

Proceeds

from Sales

    

Net Realized

Gain (Loss)

    

Change in

Unrealized

Appreciation

(Depreciation)

    

Value at

09/30/21

    

Shares

Held at

09/30/21

     Income     

Capital

Gain

Distributions

from

Underlying

Funds

 

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares

   $ 51,365,314      $ 12,336,690 (a)     $      $ 27,878      $ (33,525    $ 63,696,357        63,664,525      $ 112,677 (b)     $  

BlackRock Cash Funds: Treasury, SL Agency Shares

     3,820,000               (1,280,000 )(a)                     2,540,000        2,540,000        125         
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 
            $ 27,878      $ (33,525    $ 66,236,357         $ 112,802      $  
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 

 

  (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.

 

 

 

22  

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Schedule of Investments (unaudited) (continued)

September 30, 2021

  

iShares® U.S. Aerospace & Defense 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

           

XAI Industrial Index

     17        12/17/21      $ 1,671      $ (74,306
           

 

 

 

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:

 

 

 
    

Equity

Contracts

 

 

 

Liabilities — Derivative Financial Instruments

  

Futures contracts

  

Unrealized depreciation on futures contracts(a)

   $ 74,306  
  

 

 

 

 

  (a)

Net cumulative 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 September 30, 2021, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

 
    

Equity

Contracts

 

 

 

Net Realized Gain (Loss) from:

  

Futures contracts

   $ (8,566
  

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

  

Futures contracts

   $ (176,951
  

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Futures contracts:

  

Average notional value of contracts — long

   $ 2,814,920     

 

 

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

Fair Value Hierarchy as of Period End

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

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

 

                                                                                                   

 

 
     Level 1        Level 2        Level 3        Total  

 

 

Investments

                 

Assets

                 

Common Stocks

   $ 2,604,220,991        $        $        $ 2,604,220,991  

Money Market Funds

     66,236,357                            66,236,357  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 2,670,457,348        $        $        $ 2,670,457,348  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative financial instruments(a)

                 

Liabilities

                 

Futures Contracts

   $ (74,306      $        $        $ (74,306
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a)

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

 

See notes to financial statements.

 

 

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

  23


Schedule of Investments (unaudited) 

September 30, 2021

  

iShares® U.S. Broker-Dealers & Securities Exchanges ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

 

Common Stocks

   
Asset Management & Custody Banks — 0.2%  

Diamond Hill Investment Group Inc.

    12,032     $ 2,113,541  
   

 

 

 
Financial Exchanges & Data — 22.5%  

Cboe Global Markets Inc.

    324,527       40,195,914  

CME Group Inc.

    209,560       40,524,713  

Intercontinental Exchange Inc.

    339,087       38,933,969  

MarketAxess Holdings Inc.

    89,857       37,801,941  

Nasdaq Inc.

    204,618       39,495,367  
   

 

 

 
      196,951,904  
Investment Banking & Brokerage — 77.2%  

B. Riley Financial Inc.

    59,857       3,533,957  

BGC Partners Inc., Class A

    1,272,875       6,631,679  

Charles Schwab Corp. (The)

    567,387       41,328,469  

Cowen Inc., Class A

    108,576       3,725,243  

Evercore Inc., Class A

    148,562       19,858,283  

Goldman Sachs Group Inc. (The)

    458,856       173,461,334  

Houlihan Lokey Inc.

    189,814       17,481,869  

Interactive Brokers Group Inc., Class A

    327,222       20,399,019  

Jefferies Financial Group Inc.

    740,362       27,489,641  

Lazard Ltd., Class A

    422,446       19,348,027  

LPL Financial Holdings Inc.

    277,509       43,502,311  

Moelis & Co., Class A

    228,549       14,140,327  

Morgan Stanley

    1,960,137           190,740,931  

Piper Sandler Cos

    53,545       7,413,841  

PJT Partners Inc., Class A

    91,565       7,243,707  
Security   Shares     Value  

 

 
Investment Banking & Brokerage (continued)  

Raymond James Financial Inc.

    444,000     $ 40,972,320  

Stifel Financial Corp.

    392,558       26,678,242  

StoneX Group Inc.(a)

    63,031       4,153,743  

Virtu Financial Inc., Class A

    334,215       8,164,872  
   

 

 

 
      676,267,815  
   

 

 

 

Total Common Stocks — 99.9%
(Cost: $830,646,793)

          875,333,260  
   

 

 

 

Short-Term Investments

   

Money Market Funds — 0.1%

   

BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%(b)(c)

    1,130,000       1,130,000  
   

 

 

 

Total Short -Term Investments — 0.1%
(Cost: $1,130,000)

      1,130,000  
   

 

 

 

Total Investments in Securities — 100.0%
(Cost: $831,776,793)

      876,463,260  

Other Assets, Less Liabilities — (0.0)%

      (135,027
   

 

 

 

Net Assets — 100.0%

    $ 876,328,233  
   

 

 

 

 

(a)

Non-income producing security.

(b)

Affiliate of the Fund.

(c)

Annualized 7-day yield as of period end.

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended September 30, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer    Value at
03/31/21
     Purchases
at Cost
     Proceeds
from Sales
     Net Realized
Gain (Loss)
     Change in
Unrealized
Appreciation
(Depreciation)
     Value at
09/30/21
     Shares
Held at
09/30/21
     Income     

Capital

Gain
Distributions
from
Underlying
Funds

 

 

 

BlackRock Cash Funds: Treasury, SL Agency Shares

   $ 760,000      $ 370,000 (a)     $  —      $  —      $  —      $ 1,130,000        1,130,000      $ 39      $  —  
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 

 

  (a)

Represents net amount purchased (sold).

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

 

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

 

 

Long Contracts

           

E-Mini Financial Select Sector Index

     5        12/17/21      $ 577      $ (2,174

Russell 2000 E-Mini Index

     3        12/17/21        330        (5,158
           

 

 

 
            $ (7,332
           

 

 

 

 

 

24  

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Schedule of Investments (unaudited) (continued)

September 30, 2021

  

iShares® U.S. Broker-Dealers & Securities Exchanges ETF

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

 

 
     Equity
Contracts
 

 

 

Liabilities — Derivative Financial Instruments

  

Futures contracts

  

Unrealized depreciation on futures contracts(a)

   $ 7,332  
  

 

 

 

 

  (a)

Net cumulative 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 September 30, 2021, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

 
     Equity
Contracts
 

 

 

Net Realized Gain (Loss) from:

  

Futures contracts

   $ 69,918  
  

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

  

Futures contracts

   $ 3,113  
  

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 
Futures contracts:       

Average notional value of contracts — long

   $ 781,037      

 

 

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

Fair Value Hierarchy as of Period End

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

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

 

 

 
     Level 1        Level 2        Level 3        Total  

 

 

Investments

                 

Assets

                 

Common Stocks

   $ 875,333,260        $        $        $ 875,333,260  

Money Market Funds

     1,130,000                            1,130,000  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 876,463,260        $             —        $             —        $ 876,463,260  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative financial instruments(a)

                 

Liabilities

                 

Futures Contracts

   $ (7,332      $        $        $ (7,332
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a)

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

 

See notes to financial statements.

 

 

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

  25


Schedule of Investments (unaudited) 

September 30, 2021

  

iShares® U.S. Healthcare Providers ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

 

Common Stocks

   
Health Care Facilities — 11.2%  

Acadia Healthcare Co. Inc.(a)(b)

    149,272     $ 9,520,568  

Brookdale Senior Living Inc.(a)

    308,408       1,942,970  

Community Health Systems Inc.(a)

    205,726       2,406,994  

Encompass Health Corp.

    165,286       12,403,062  

Ensign Group Inc. (The)

    87,010       6,516,179  

Hanger Inc.(a)

    61,219       1,344,369  

HCA Healthcare Inc.

    212,558       51,592,078  

National HealthCare Corp.

    22,545       1,577,699  

Pennant Group Inc. (The)(a)

    44,877       1,260,595  

Select Medical Holdings Corp.

    176,600       6,387,622  

Surgery Partners Inc.(a)(b)

    49,196       2,082,959  

Tenet Healthcare Corp.(a)

    177,828       11,814,892  

U.S. Physical Therapy Inc.

    21,392       2,365,955  

Universal Health Services Inc., Class B

    126,034       17,439,325  
   

 

 

 
      128,655,267  
Health Care Services — 34.4%  

1Life Healthcare Inc.(a)(b)

    192,279       3,893,650  

Accolade Inc.(a)

    95,473       4,026,096  

Addus HomeCare Corp.(a)

    26,511       2,114,252  

Agiliti Inc.(a)

    45,569       867,634  

Amedisys Inc.(a)

    54,205       8,081,965  

Apollo Medical Holdings Inc.(a)

    62,509       5,691,444  

Castle Biosciences Inc.(a)

    38,825       2,581,863  

Chemed Corp.

    26,131       12,154,051  

Cigna Corp.

    253,474       50,735,356  

CorVel Corp.(a)

    15,659       2,916,019  

CVS Health Corp.

    1,763,400       149,642,124  

DaVita Inc.(a)

    111,413       12,952,875  

Fulgent Genetics Inc.(a)(b)

    31,828       2,862,929  

Guardant Health Inc.(a)(b)

    168,268       21,035,183  

Hims & Hers Health Inc.(a)

    204,464       1,541,659  

Laboratory Corp. of America Holdings(a)

    160,628       45,207,144  

LHC Group Inc.(a)(b)

    52,607       8,254,564  

MEDNAX Inc.(a)

    143,341       4,075,185  

ModivCare Inc.(a)(b)

    20,442       3,712,676  

Option Care Health Inc.(a)(b)

    230,678       5,596,248  

Premier Inc., Class A

    203,101       7,872,195  

Privia Health Group Inc.(a)

    33,463       788,388  

Quest Diagnostics Inc.

    202,955           29,491,391  

R1 RCM Inc.(a)(b)

    222,351       4,893,946  

RadNet Inc.(a)

    73,461       2,153,142  

Signify Health Inc., Class A(a)(b)

    39,181       700,164  

Tivity Health Inc.(a)(b)

    73,587       1,696,916  
   

 

 

 
      395,539,059  
Health Care Technology — 7.7%  

American Well Corp., Class A(a)(b)

    297,905       2,713,915  

Certara Inc.(a)

    154,639       5,118,551  

Change Healthcare Inc.(a)

    410,068       8,586,824  

GoodRx Holdings Inc., Class A(a)(b)

    106,501       4,368,671  
Security   Shares     Value  

 

 
Health Care Technology (continued)            

Health Catalyst Inc.(a)(b)

    84,464     $ 4,224,045  

HealthStream Inc.(a)

    42,044       1,201,618  

Inovalon Holdings Inc., Class A(a)(b)

    129,991       5,237,337  

Inspire Medical Systems Inc.(a)

    45,302       10,549,930  

Multiplan Corp.(a)(b)

    420,867       2,369,481  

Phreesia Inc.(a)(b)

    83,919       5,177,802  

Schrodinger Inc.(a)(b)

    77,439       4,234,364  

Tabula Rasa HealthCare Inc.(a)(b)

    38,343       1,004,970  

Teladoc Health Inc.(a)(b)

    264,527       33,544,669  
   

 

 

 
      88,332,177  
Life Sciences Tools & Services — 0.9%  

NeoGenomics Inc.(a)

    204,010       9,841,442  
   

 

 

 
Managed Health Care — 45.8%            

Anthem Inc.

    319,088       118,956,006  

Centene Corp.(a)

    860,480       53,616,509  

Clover Health Investments Corp.(a)(b)

    332,431       2,456,665  

HealthEquity Inc.(a)(b)

    138,518       8,970,426  

Humana Inc.

    130,789       50,896,539  

Magellan Health Inc.(a)(b)

    38,643       3,653,696  

Molina Healthcare Inc.(a)

    97,009       26,319,512  

Progyny Inc.(a)

    114,339       6,402,984  

Triple-S Management Corp.(a)

    39,634       1,401,854  

UnitedHealth Group Inc.

    650,969       254,359,627  
   

 

 

 
          527,033,818  
   

 

 

 

Total Common Stocks — 100.0%
(Cost: $1,048,037,928)

 

    1,149,401,763  
   

 

 

 

Short-Term Investments

 

Money Market Funds — 4.9%

 

BlackRock Cash Funds: Institutional, SL Agency Shares, 0.05%(c)(d)(e)

    55,705,924       55,733,777  

BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%(c)(d)

    820,000       820,000  
   

 

 

 
      56,553,777  
   

 

 

 

Total Short -Term Investments — 4.9%
(Cost: $56,536,643)

 

    56,553,777  
   

 

 

 

Total Investments in Securities — 104.9%
(Cost: $1,104,574,571)

 

    1,205,955,540  

Other Assets, Less Liabilities — (4.9)%

 

    (55,937,885
   

 

 

 

Net Assets — 100.0%

    $ 1,150,017,655  
   

 

 

 

 

(a)

Non-income producing security.

(b)

All or a portion of this security is on loan.

(c)

Affiliate of the Fund.

(d)

Annualized 7-day yield as of period end.

(e)

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

 

 

26  

2 0 2 1   I S H A R E S  E M I - 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 (unaudited) (continued)

September 30, 2021

  

iShares® U.S. Healthcare Providers ETF

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended September 30, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer   

Value at

03/31/21

    

Purchases

at Cost

    

Proceeds

from Sales

    

Net Realized

Gain (Loss)

    

Change in

Unrealized

Appreciation

(Depreciation)

    

Value at

09/30/21

    

Shares

Held at

09/30/21

     Income     

Capital

Gain

Distributions

from

Underlying

Funds

 

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares

   $ 59,045,877      $      $ (3,309,484 )(a)     $ (1,194    $ (1,422    $ 55,733,777        55,705,924      $ 84,110 (b)     $  

BlackRock Cash Funds: Treasury, SL Agency Shares

     1,150,000               (330,000 )(a)                     820,000        820,000        48         
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 
            $ (1,194    $ (1,422    $ 56,553,777         $ 84,158      $  
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 

 

  (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)