iShares Trust


		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.


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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

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)

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

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)

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

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)

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

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)

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.


8		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. 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 Index^SM (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.

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)

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

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)

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.


10		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. 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

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)

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

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)

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.


12		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. 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	)

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)

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 Index^TM (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

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)

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.


14		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. 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 Index^TM (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.

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)

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

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)

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		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. 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%.

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)

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.


18		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

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

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.


20		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

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




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)


22		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

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)

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




	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




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		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

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)

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




	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 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




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)

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts




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


Long Contracts
E-Mini Health Care Sector Index		3		12/17/21	$	385	$	(15,957	)

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)	$	15,957

^(a)

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	$	149,188


Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts	$	(14,235	)

Average Quarterly Balances of Outstanding Derivative Financial Instruments




Futures contracts:
Average notional value of contracts — long	$	1,171,553

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


S C H E D U L E O F I N V E S T M E N T S		27

Schedule of Investments (unaudited) (continued)

September 30, 2021

iShares^® U.S. Healthcare Providers ETF

Fair Value Hierarchy as of Period End




	Level 1			Level 2		Level 3		Total


Investments
Assets
Common Stocks	$	1,149,401,763		$	—	$	—	$	1,149,401,763
Money Market Funds		56,553,777			—		—		56,553,777


	$	1,205,955,540		$	—	$	—	$	1,205,955,540

Derivative financial instruments^(a)
Liabilities
Futures Contracts	$	(15,957	)	$	—	$	—	$	(15,957	)

^(a)

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

See notes to financial statements.


28		2 0 2 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

Schedule of Investments (unaudited)

September 30, 2021

iShares^® U.S. Home Construction ETF

(Percentages shown are based on Net Assets)


Security	Shares		Value


Common Stocks

Building Products — 13.5%
American Woodmark Corp.^(a)		59,547	$	3,892,587
AZEK Co. Inc. (The)^(a)		394,894		14,425,478
Builders FirstSource Inc.^(a)(b)		734,604		38,008,411
Fortune Brands Home & Security Inc.		488,815		43,709,837
JELD-WEN Holding Inc.^(a)		326,333		8,168,115
Lennox International Inc.		121,224		35,660,464
Masco Corp.		876,253		48,675,854
Masonite International Corp.^(a)(b)		85,409		9,064,457
Owens Corning		365,621		31,260,596
PGT Innovations Inc.^(a)		211,084		4,031,705
Quanex Building Products Corp.		119,074		2,549,374
Simpson Manufacturing Co. Inc.		153,973		16,470,492
Trex Co. Inc.^(a)(b)		408,926		41,681,827
UFP Industries Inc.		219,210		14,901,896


				312,501,093

Construction Materials — 0.9%
Eagle Materials Inc.		148,482		19,474,899


Forest Products — 0.9%
Louisiana-Pacific Corp.		337,599		20,718,450


Home Furnishings — 2.5%
Ethan Allen Interiors Inc.		77,667		1,840,708
Leggett & Platt Inc.		472,583		21,190,622
Mohawk Industries Inc.^(a)		198,226		35,165,292


				58,196,622

Home Improvement Retail — 11.6%
Floor & Decor Holdings Inc., Class A^(a)		373,104		45,067,232
Home Depot Inc. (The)		335,410		110,101,687
Lowe’s Companies Inc.		544,932		110,544,906
Lumber Liquidators Holdings Inc.^(a)(b)		103,002		1,924,077


				267,637,902

Homebuilding — 64.3%
Beazer Homes USA Inc.^(a)(b)		346,007		5,968,621
Cavco Industries Inc.^(a)		100,411		23,771,300
Century Communities Inc.		349,166		21,456,251
DR Horton Inc.		3,830,789		321,671,352
Green Brick Partners Inc.^(a)		567,076		11,636,400
Installed Building Products Inc.		275,759		29,547,577
KB Home		1,057,182		41,145,523
Lennar Corp., Class A		3,228,433		302,439,603
Lennar Corp., Class B		181,378		14,073,119
LGI Homes Inc.^(a)(b)		254,596		36,129,718


Security	Shares		Value


Homebuilding (continued)
M/I Homes Inc.^(a)(b)		344,566	$	19,915,915
MDC Holdings Inc.		663,983		31,021,286
Meritage Homes Corp.^(a)		442,457		42,918,329
NVR Inc.^(a)		39,536		189,538,747
PulteGroup Inc.		3,050,130		140,061,970
Skyline Champion Corp.^(a)		620,358		37,258,701
Taylor Morrison Home Corp.^(a)(b)		1,472,492		37,960,844
Toll Brothers Inc.		1,363,010		75,360,823
TopBuild Corp.^(a)		387,072		79,276,216
TRI Pointe Homes Inc.^(a)		1,337,336		28,110,803


				1,489,263,098

Specialty Chemicals — 4.5%
Sherwin-Williams Co. (The)		374,852		104,857,350


Trading Companies & Distributors — 1.7%
Beacon Roofing Supply Inc.^(a)(b)		196,420		9,381,019
Watsco Inc.		116,885		30,930,109


				40,311,128


Total Common Stocks — 99.9% (Cost: $2,458,100,118)				2,312,960,542


Short-Term Investments

Money Market Funds — 2.2%
BlackRock Cash Funds: Institutional, SL Agency Shares, 0.05%^(c)(d)(e)		48,388,629		48,412,823
BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%^(c)(d)		2,560,000		2,560,000


				50,972,823


Total Short -Term Investments — 2.2% (Cost: $50,966,478)				50,972,823


Total Investments in Securities — 102.1% (Cost: $2,509,066,596)				2,363,933,365

Other Assets, Less Liabilities — (2.1)%				(48,366,920	)


Net Assets — 100.0%			$	2,315,566,445

^(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.


S C H E D U L E O F I N V E S T M E N T S		29

Schedule of Investments (unaudited) (continued)

September 30, 2021

iShares^® U.S. Home Construction ETF

Affiliates




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	$	31,310,054	$	17,107,167	^(a)	$	—	$	(3,944	)	$	(454	)	$	48,412,823		48,388,629	$	39,364	^(b)	$	—
BlackRock Cash Funds: Treasury, SL Agency Shares		1,583,000		977,000	^(a)		—		—			—			2,560,000		2,560,000		81			—


								$	(3,944	)	$	(454	)	$	50,972,823			$	39,445		$	—

^(a)

Represents net amount purchased (sold).

^(b)

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts




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


Long Contracts
S&P 400 E-Mini Index		9		12/17/21	$	2,370	$	(62,234	)

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)	$	62,234

^(a)

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	$	(32,960	)


Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts	$	(62,234	)

Average Quarterly Balances of Outstanding Derivative Financial Instruments




Futures contracts:
Average notional value of contracts — long	$	789,960

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


30		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

Schedule of Investments (unaudited) (continued)

September 30, 2021

iShares^® U.S. Home Construction ETF

Fair Value Hierarchy as of Period End




	Level 1			Level 2		Level 3		Total


Investments
Assets
Common Stocks	$	2,312,960,542		$	—	$	—	$	2,312,960,542
Money Market Funds		50,972,823			—		—		50,972,823


	$	2,363,933,365		$	—	$	—	$	2,363,933,365

Derivative financial instruments^(a)
Liabilities
Futures Contracts	$	(62,234	)	$	—	$	—	$	(62,234	)

^(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		31

Schedule of Investments (unaudited)

September 30, 2021

iShares^® U.S. Infrastructure ETF

(Percentages shown are based on Net Assets)


Security	Shares		Value

Common Stocks

Aerospace & Defense — 0.6%
Howmet Aerospace Inc.		133,131	$	4,153,687


Aluminum — 1.9%
Arconic Corp.^(a)		122,353		3,859,013
Century Aluminum Co.^(a)		329,686		4,434,277
Kaiser Aluminum Corp.		34,008		3,705,512


				11,998,802

Building Products — 7.1%
Advanced Drainage Systems Inc.		35,877		3,880,815
Apogee Enterprises Inc.		95,768		3,616,200
Armstrong World Industries Inc.		40,986		3,912,934
AZEK Co. Inc. (The)^(a)		98,693		3,605,255
Builders FirstSource Inc.^(a)		76,973		3,982,583
Carlisle Companies Inc.		20,151		4,005,817
Cornerstone Building Brands Inc.^(a)		240,193		3,509,220
Gibraltar Industries Inc.^(a)		56,585		3,941,145
Insteel Industries Inc.		115,841		4,407,750
Owens Corning		43,784		3,743,532
Simpson Manufacturing Co. Inc.		37,099		3,968,480
Trex Co. Inc.^(a)		36,660		3,736,754


				46,310,485

Commodity Chemicals — 3.8%
AdvanSix Inc.^(a)		111,139		4,417,775
Hawkins Inc.		113,618		3,962,996
LyondellBasell Industries NV, Class A		43,629		4,094,582
Olin Corp.		86,229		4,160,549
Tredegar Corp.		317,333		3,865,116
Westlake Chemical Corp.		48,146		4,388,026


				24,889,044

Construction & Engineering — 12.1%
AECOM^(a)		62,512		3,947,633
API Group Corp.^(a)(b)		178,195		3,626,268
Argan Inc.		88,716		3,874,228
Comfort Systems USA Inc.		54,851		3,911,973
Construction Partners Inc., Class A^(a)		123,372		4,116,924
EMCOR Group Inc.		34,162		3,941,612
Fluor Corp.^(a)		253,579		4,049,657
Granite Construction Inc.		102,479		4,053,044
Great Lakes Dredge & Dock Corp.^(a)		268,234		4,047,651
IES Holdings Inc.^(a)		87,582		4,001,622
MasTec Inc.^(a)		45,684		3,941,616
Matrix Service Co.^(a)		370,975		3,880,398
MYR Group Inc.^(a)		38,045		3,785,478
Northwest Pipe Co.^(a)		162,942		3,861,725
NV5 Global Inc.^(a)		38,988		3,843,047
Primoris Services Corp.		157,172		3,849,142
Quanta Services Inc.		36,003		4,097,861
Sterling Construction Co. Inc.^(a)		181,499		4,114,582
Tutor Perini Corp.^(a)		292,916		3,802,050
Valmont Industries Inc.		17,062		4,011,617


				78,758,128

Construction Machinery & Heavy Trucks — 2.9%
Astec Industries Inc.		70,229		3,779,023
Greenbrier Companies Inc. (The)		93,429		4,016,513
Oshkosh Corp.		37,049		3,792,706
Terex Corp.		85,062		3,581,110


Security	Shares		Value

Construction Machinery & Heavy Trucks (continued)
Trinity Industries Inc.		146,291	$	3,974,726


				19,144,078

Construction Materials — 3.0%
Eagle Materials Inc.		27,169		3,563,486
Forterra Inc.^(a)		176,593		4,160,531
Martin Marietta Materials Inc.		11,135		3,804,607
Summit Materials Inc., Class A^(a)(c)		127,402		4,073,042
Vulcan Materials Co.		23,163		3,918,253


				19,519,919

Distributors — 0.6%
Pool Corp.		8,407		3,652,085


Diversified Chemicals — 0.6%
Eastman Chemical Co.		37,045		3,731,913


Diversified Metals & Mining — 0.6%
Compass Minerals International Inc.		61,455		3,957,702


Electric Utilities — 18.5%
ALLETE Inc.		76,705		4,565,482
Alliant Energy Corp.		84,377		4,723,424
American Electric Power Co. Inc.		57,511		4,668,743
Avangrid Inc.		94,856		4,610,002
Duke Energy Corp.		49,078		4,789,522
Edison International		88,195		4,892,177
Entergy Corp.		45,957		4,563,990
Evergy Inc.		75,689		4,707,856
Eversource Energy		56,233		4,597,610
Exelon Corp.		103,826		5,018,949
FirstEnergy Corp.		131,340		4,678,331
Hawaiian Electric Industries Inc.		120,126		4,904,744
IDACORP Inc.		48,302		4,993,461
MGE Energy Inc.		63,934		4,699,149
NextEra Energy Inc.		60,526		4,752,501
NRG Energy Inc.		114,455		4,673,198
OGE Energy Corp.		145,338		4,790,340
Otter Tail Corp.		93,605		5,239,072
PG&E Corp.^(a)		565,314		5,427,014
Pinnacle West Capital Corp.		67,374		4,875,183
PNM Resources Inc.		104,203		5,155,964
Portland General Electric Co.		100,205		4,708,633
PPL Corp.		172,290		4,803,445
Southern Co. (The)		78,054		4,837,006
Xcel Energy Inc.		74,108		4,631,750


				120,307,546

Environmental & Facilities Services — 1.2%
Harsco Corp.^(a)		228,878		3,879,482
Tetra Tech Inc.		27,545		4,113,570


				7,993,052

Gas Utilities — 6.4%
Atmos Energy Corp.		53,054		4,679,363
Chesapeake Utilities Corp.		39,604		4,754,460
National Fuel Gas Co.		98,507		5,173,587
New Jersey Resources Corp.		137,885		4,799,777
Northwest Natural Holding Co.		101,428		4,664,674
ONE Gas Inc.		71,816		4,550,980
South Jersey Industries Inc.		209,434		4,452,567
Southwest Gas Holdings Inc.		58,327		3,900,910
Spire Inc.		78,353		4,793,636


				41,769,954


32		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

Schedule of Investments (unaudited) (continued)

September 30, 2021

iShares^® U.S. Infrastructure ETF

(Percentages shown are based on Net Assets)


Security	Shares		Value


Heavy Electrical Equipment — 0.6%
Babcock & Wilcox Enterprises Inc.^(a)		579,133	$	3,712,243


Home Furnishings — 0.6%
Leggett & Platt Inc.		87,612		3,928,522


Independent Power Producers & Energy Traders — 0.7%
Vistra Corp.		270,679		4,628,611


Industrial Machinery — 1.2%
Mueller Industries Inc.		94,897		3,900,267
Omega Flex Inc.		28,072		4,005,593


				7,905,860

Multi-Utilities — 10.8%
Ameren Corp.		58,862		4,767,822
Avista Corp.		112,845		4,414,496
Black Hills Corp.		72,360		4,541,314
CenterPoint Energy Inc.		200,452		4,931,119
CMS Energy Corp.		79,808		4,766,932
Consolidated Edison Inc.		67,793		4,921,094
Dominion Energy Inc.		65,994		4,818,882
DTE Energy Co.		42,951		4,798,056
MDU Resources Group Inc.		129,840		3,852,353
NiSource Inc.		206,410		5,001,314
NorthWestern Corp.		79,826		4,574,030
Public Service Enterprise Group Inc.		80,826		4,922,303
Sempra Energy		38,772		4,904,658
Unitil Corp.		104,101		4,453,441
WEC Energy Group Inc.		53,981		4,761,124


				70,428,938

Oil & Gas Equipment & Services — 0.6%
U.S. Silica Holdings Inc.^(a)		468,899		3,746,503


Oil & Gas Storage & Transportation — 5.9%
Antero Midstream Corp.		511,634		5,331,227
DTE Midstream LLC^(a)		112,522		5,203,017
EnLink Midstream LLC		891,832		6,082,294
Equitrans Midstream Corp.		555,599		5,633,774
Kinder Morgan Inc.		316,562		5,296,082
ONEOK Inc.		97,285		5,641,557
Williams Companies Inc. (The)		207,154		5,373,575


				38,561,526

Railroads — 3.0%
CSX Corp.		161,645		4,807,322
Kansas City Southern		17,738		4,800,613
Norfolk Southern Corp.		20,657		4,942,187
Union Pacific Corp.		24,069		4,717,765


				19,267,887

Renewable Electricity — 0.7%
Sunnova Energy International Inc.^(a)(c)		145,756		4,801,203


Research & Consulting Services — 0.6%
Jacobs Engineering Group Inc.		30,463		4,037,261


Specialty Chemicals — 1.8%
Avient Corp.		84,090		3,897,572
Ecovyst Inc.		315,557		3,679,395
Ingevity Corp.^(a)		53,220		3,798,311


				11,375,278


Security	Shares		Value


Steel — 7.1%
Allegheny Technologies Inc.^(a)(c)		232,428	$	3,865,278
Carpenter Technology Corp.		125,344		4,103,763
Cleveland-Cliffs Inc.^(a)		175,385		3,474,377
Commercial Metals Co.		130,762		3,983,011
Haynes International Inc.		110,282		4,108,004
Mesabi Trust		126,242		3,750,650
Nucor Corp.		36,772		3,621,674
Reliance Steel & Aluminum Co.		27,922		3,976,651
Steel Dynamics Inc.		62,523		3,656,345
TimkenSteel Corp.^(a)		312,842		4,091,973
United States Steel Corp.^(c)		159,930		3,513,662
Worthington Industries Inc.		76,460		4,029,442


				46,174,830

Trading Companies & Distributors — 1.8%
BlueLinx Holdings Inc.^(a)		71,071		3,473,951
Boise Cascade Co.		71,731		3,872,039
H&E Equipment Services Inc.		124,731		4,329,413


				11,675,403

Water Utilities — 5.1%
American States Water Co.		55,548		4,750,465
American Water Works Co. Inc.		27,937		4,722,470
California Water Service Group		80,393		4,737,560
Essential Utilities Inc.		105,197		4,847,478
Middlesex Water Co.		45,999		4,727,777
SJW Group		74,093		4,894,584
York Water Co. (The)		97,722		4,268,497


				32,948,831


Total Common Stocks — 99.8% (Cost: $654,710,299)				649,379,291


Short-Term Investments

Money Market Funds — 1.3%
BlackRock Cash Funds: Institutional, SL Agency Shares, 0.05%^(d)(e)(f)		7,693,349		7,697,196
BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%^(d)(e)		860,000		860,000


				8,557,196


Total Short -Term Investments — 1.3% (Cost: $8,557,196)				8,557,196


Total Investments in Securities — 101.1% (Cost: $663,267,495)				657,936,487

Other Assets, Less Liabilities — (1.1)%				(7,432,094	)


Net Assets — 100.0%			$	650,504,393

^(a)	Non-income producing security.

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

^(c)	All or a portion of this security is on loan.

^(d)	Affiliate of the Fund.

^(e)	Annualized 7-day yield as of period end.

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


S C H E D U L E O F I N V E S T M E N T S		33

Schedule of Investments (unaudited) (continued)

September 30, 2021

iShares^® U.S. Infrastructure ETF

Affiliates




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	$	1,775,064	$	5,921,879	^(a)	$	—	$	256	$	(3	)	$	7,697,196		7,693,349	$	5,478	^(b)	$	—
BlackRock Cash Funds: Treasury, SL Agency Shares		510,000		350,000	^(a)		—		—		—			860,000		860,000		37			—


								$	256	$	(3	)	$	8,557,196			$	5,515		$	—

^(a)

Represents net amount purchased (sold).

^(b)

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts




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


Long Contracts
E-Mini Energy Select Sector Index		2		12/17/21	$	108	$	4,556
E-Mini Utilities Select Sector Index		6		12/17/21		386		(3,403	)
S&P 400 E-Mini Index		2		12/17/21		527		(3,494	)


							$	(2,341	)

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)	$	4,556


Liabilities — Derivative Financial Instruments
Futures contracts
Unrealized depreciation on futures contracts^(a)	$	6,897

^(a)

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	$	(31,070	)


Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts	$	(2,341	)


34		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

Schedule of Investments (unaudited) (continued)

September 30, 2021

iShares^® U.S. Infrastructure ETF

Average Quarterly Balances of Outstanding Derivative Financial Instruments



Futures contracts:
Average notional value of contracts — long	$	726,627

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




	Level 1			Level 2		Level 3		Total


Investments
Assets
Common Stocks	$	649,379,291		$	—	$	—	$	649,379,291
Money Market Funds		8,557,196			—		—		8,557,196


	$	657,936,487		$	—	$	—	$	657,936,487

Derivative financial instruments^(a)
Assets
Futures Contracts	$	4,556		$	—	$	—	$	4,556
Liabilities
Futures Contracts		(6,897	)		—		—		(6,897	)


	$	(2,341	)	$	—	$	—	$	(2,341	)

^(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		35

Schedule of Investments (unaudited)

September 30, 2021

iShares^® U.S. Insurance ETF

(Percentages shown are based on Net Assets)


Security	Shares		Value

Common Stocks

Insurance Brokers — 6.7%
Arthur J Gallagher & Co.		31,506	$	4,683,367
Brown & Brown Inc.		35,618		1,975,018
eHealth Inc.^(a)		3,826		154,953


				6,813,338

Life & Health Insurance — 27.5%
Aflac Inc.		84,753		4,418,174
American Equity Investment Life Holding Co.		12,625		373,321
Athene Holding Ltd., Class A^(a)		20,021		1,378,846
Brighthouse Financial Inc.^(a)		12,681		573,562
CNO Financial Group Inc.		19,503		459,101
Genworth Financial Inc., Class A^(a)		71,140		266,775
Globe Life Inc.		14,265		1,270,013
Lincoln National Corp.		26,919		1,850,681
MetLife Inc.		107,648		6,645,111
National Western Life Group Inc., Class A		359		75,602
Oscar Health Inc., Class A^(a)		6,274		109,105
Primerica Inc.		6,019		924,699
Principal Financial Group Inc.		38,037		2,449,583
Prudential Financial Inc.		57,167		6,013,968
Trupanion Inc.^(a)		5,243		407,224
Unum Group		31,350		785,631


				28,001,396

Multi-line Insurance — 13.7%
American Financial Group Inc./OH		10,079		1,268,241
American International Group Inc.		126,395		6,937,821
American National Group Inc.		1,969		372,200
Assurant Inc.		9,019		1,422,747
Hartford Financial Services Group Inc. (The)		52,907		3,716,717
Horace Mann Educators Corp.		5,275		209,892


				13,927,618

Other Diversified Financial Services — 1.0%
Voya Financial Inc.		17,292		1,061,556


Property & Casualty Insurance — 49.4%
Allstate Corp. (The)		35,204		4,481,821
Ambac Financial Group Inc.^(a)		7,262		103,992
AMERISAFE Inc.		3,056		171,625
Arch Capital Group Ltd.^(a)		60,351		2,304,201
Argo Group International Holdings Ltd.		5,365		280,160
Assured Guaranty Ltd.		11,132		521,089
Axis Capital Holdings Ltd.		11,769		541,845
Chubb Ltd.		64,843		11,248,964
Cincinnati Financial Corp.		22,843		2,609,128
CNA Financial Corp.		4,215		176,861
Employers Holdings Inc.		3,556		140,426
Erie Indemnity Co., Class A, NVS		3,827		682,813


Security	Shares		Value

Property & Casualty Insurance (continued)
First American Financial Corp.		16,854	$	1,130,061
Hanover Insurance Group Inc. (The)		5,497		712,521
James River Group Holdings Ltd.		5,877		221,739
Kemper Corp.		9,124		609,392
Kinsale Capital Group Inc.		3,307		534,742
Lemonade Inc.^(a)		5,807		389,127
Loews Corp.		30,972		1,670,320
Markel Corp.^(a)		2,092		2,500,212
MBIA Inc.^(a)		7,553		97,056
Mercury General Corp.		4,104		228,470
MetroMile Inc.^(a)		11,644		41,336
Old Republic International Corp.		43,344		1,002,547
Palomar Holdings Inc.^(a)		3,789		306,265
ProAssurance Corp.		6,889		163,820
Progressive Corp. (The)		86,484		7,817,289
RLI Corp.		6,071		608,739
Root Inc./OH, Class A^(a)		14,542		76,636
Safety Insurance Group Inc.		2,053		162,700
Selective Insurance Group Inc.		9,168		692,459
State Auto Financial Corp.		2,740		139,603
Travelers Companies Inc. (The)		36,874		5,605,217
United Fire Group Inc.		3,420		79,002
Universal Insurance Holdings Inc.		4,314		56,255
W R Berkley Corp.		21,510		1,574,102
White Mountains Insurance Group Ltd.		476		509,134


				50,191,669

Reinsurance — 1.3%
Alleghany Corp.^(a)		2,114		1,320,003


Total Common Stocks — 99.6% (Cost: $90,169,412)				101,315,580


Short-Term Investments

Money Market Funds — 0.2%
BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%^(b)(c)		200,000		200,000


Total Short -Term Investments — 0.2% (Cost: $200,000)				200,000


Total Investments in Securities — 99.8% (Cost: $90,369,412)				101,515,580

Other Assets, Less Liabilities — 0.2%				202,032


Net Assets — 100.0%			$	101,717,612

^(a)	Non-income producing security.

^(b)	Affiliate of the Fund.

^(c)	Annualized 7-day yield as of period end.


36		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

Schedule of Investments (unaudited) (continued)

September 30, 2021

iShares^® U.S. Insurance ETF

Affiliates




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)	$	207,497	$	—			$(207,430)^(b)	$	(61	)	$	(6	)	$	—		—	$	1,617	^(c)	$	—
BlackRock Cash Funds: Treasury, SL Agency Shares		180,000		20,000	^(b)		—		—			—			200,000		200,000		6			—


								$	(61	)	$	(6	)	$	200,000			$	1,623		$	—

^(a)

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

^(b)

Represents net amount purchased (sold).

^(c)

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		3		12/17/21	$	346	$	(1,357	)

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)	$	1,357

^(a)

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	$	(9,872	)


Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts	$	(2	)

Average Quarterly Balances of Outstanding Derivative Financial Instruments




Futures contracts:
Average notional value of contracts — long	$	260,429

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


S C H E D U L E O F I N V E S T M E N T S		37

Schedule of Investments (unaudited) (continued)

September 30, 2021

iShares^® U.S. Insurance ETF

Fair Value Hierarchy as of Period End




	Level 1			Level 2		Level 3		Total


Investments
Assets
Common Stocks	$	101,315,580		$	—	$	—	$	101,315,580
Money Market Funds		200,000			—		—		200,000


	$	101,515,580		$	—	$	—	$	101,515,580

Derivative financial instruments^(a)
Liabilities
Futures Contracts	$	(1,357	)	$	—	$	—	$	(1,357	)

^(a)

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

See notes to financial statements.


38		2 0 2 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

Schedule of Investments (unaudited)

September 30, 2021

iShares^® U.S. Medical Devices ETF

(Percentages shown are based on Net Assets)


Security	Shares		Value


Common Stocks

Health Care Equipment — 83.1%
Abbott Laboratories		8,759,415	$	1,034,749,694
ABIOMED Inc.^(a)(b)		253,221		82,428,500
AngioDynamics Inc.^(a)		215,748		5,596,503
AtriCure Inc.^(a)(b)		256,021		17,806,261
Axogen Inc.^(a)		231,004		3,649,863
Axonics Inc.^(a)(b)		257,448		16,757,290
Baxter International Inc.		2,789,678		224,373,802
Becton Dickinson and Co.		1,535,182		377,378,439
Boston Scientific Corp.^(a)		7,945,613		344,760,148
Butterfly Network Inc.^(a)(b)		729,184		7,612,681
Cardiovascular Systems Inc.^(a)(b)		224,092		7,356,940
CONMED Corp.		162,927		21,315,739
CryoLife Inc.^(a)		218,187		4,863,388
CryoPort Inc.^(a)(b)		256,794		17,079,369
Danaher Corp.		3,139,324		955,735,799
Dexcom Inc.^(a)(b)		539,880		295,238,777
Eargo Inc.^(a)		127,504		858,102
Edwards Lifesciences Corp.^(a)		3,287,692		372,199,611
Envista Holdings Corp.^(a)(b)		899,854		37,622,896
Glaukos Corp.^(a)(b)		259,826		12,515,818
Globus Medical Inc., Class A^(a)		436,957		33,479,645
Heska Corp.^(a)(b)		59,398		15,356,759
Hill-Rom Holdings Inc.		367,281		55,092,150
Hologic Inc.^(a)		1,414,553		104,408,157
IDEXX Laboratories Inc.^(a)		474,750		295,247,025
Inari Medical Inc.^(a)		177,408		14,387,789
Inogen Inc.^(a)		113,549		4,892,826
Insulet Corp.^(a)(b)		384,330		109,238,116
Integer Holdings Corp.^(a)(b)		183,940		16,433,200
Integra LifeSciences Holdings Corp.^(a)(b)		405,896		27,795,758
Intersect ENT Inc.^(a)		185,232		5,038,310
Intuitive Surgical Inc.^(a)		372,773		370,592,278
iRhythm Technologies Inc.^(a)		163,540		9,576,902
LeMaitre Vascular Inc.		107,079		5,684,824
LivaNova PLC^(a)		296,885		23,510,323
Masimo Corp.^(a)		282,644		76,514,557
Medtronic PLC		5,582,491		699,765,247
Mesa Laboratories Inc.^(b)		29,009		8,771,161
Natus Medical Inc.^(a)		189,323		4,748,221
Nevro Corp.^(a)(b)		194,737		22,663,492
Novocure Ltd.^(a)(b)		497,399		57,782,842
NuVasive Inc.^(a)(b)		288,129		17,244,521
Ortho Clinical Diagnostics Holdings PLC^(a)		629,503		11,633,215
Orthofix Medical Inc.^(a)		110,947		4,229,300
Outset Medical Inc.^(a)(b)		224,818		11,115,002
Penumbra Inc.^(a)		191,869		51,133,089
ResMed Inc.		812,004		214,003,654
SeaSpine Holdings Corp.^(a)(b)		182,796		2,875,381


Security	Shares		Value


Health Care Equipment (continued)
Shockwave Medical Inc.^(a)(b)		196,144	$	40,382,127
STERIS PLC		556,669		113,716,343
Stryker Corp.		1,440,829		379,975,424
Surmodics Inc.^(a)		76,876		4,274,306
Tactile Systems Technology Inc.^(a)(b)		110,416		4,907,991
Tandem Diabetes Care Inc.^(a)(b)		351,717		41,987,975
Teleflex Inc.		261,153		98,337,162
TransMedics Group Inc.^(a)(b)		154,428		5,110,023
Vapotherm Inc.^(a)		127,693		2,843,723
Varex Imaging Corp.^(a)(b)		219,243		6,182,653
ViewRay Inc.^(a)(b)		788,652		5,686,181
Zimmer Biomet Holdings Inc.		1,165,414		170,569,993


				6,987,087,265

Health Care Supplies — 0.4%
STAAR Surgical Co.^(a)		264,468		33,992,072


Life Sciences Tools & Services — 16.4%
Bio-Rad Laboratories Inc., Class A^(a)		119,913		89,449,102
Bruker Corp.		564,617		44,096,588
NanoString Technologies Inc.^(a)(b)		254,005		12,194,780
Thermo Fisher Scientific Inc.		1,943,853		1,110,581,535
Waters Corp.^(a)		342,404		122,340,949


				1,378,662,954


Total Common Stocks — 99.9% (Cost: $6,411,555,760)				8,399,742,291


Short-Term Investments

Money Market Funds — 1.1%
BlackRock Cash Funds: Institutional, SL Agency Shares, 0.05%^(c)(d)(e)		87,248,825		87,292,450
BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%^(c)(d)		8,680,000		8,680,000


				95,972,450


Total Short -Term Investments — 1.1% (Cost: $95,846,880)				95,972,450


Total Investments in Securities — 101.0% (Cost: $6,507,402,640)				8,495,714,741

Other Assets, Less Liabilities — (1.0)%				(82,720,043	)


Net Assets — 100.0%			$	8,412,994,698

^(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.


S C H E D U L E O F I N V E S T M E N T S		39

Schedule of Investments (unaudited) (continued)

September 30, 2021

iShares^® U.S. Medical Devices ETF

Affiliates




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	$	217,217,031	$	—	$	(129,901,838	)^(a)	$	(10,516	)	$	(12,227	)	$	87,292,450		87,248,825	$	160,710	^(b)	$	—
BlackRock Cash Funds: Treasury, SL Agency Shares		8,910,000		—		(230,000	)^(a)		—			—			8,680,000		8,680,000		625			—


								$	(10,516	)	$	(12,227	)	$	95,972,450			$	161,335		$	—

^(a)

Represents net amount purchased (sold).

^(b)

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts




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


Long Contracts
E-Mini Health Care Sector Index		74		12/17/21	$	9,499	$	(378,034	)
E-Mini Technoloy Select Sector Index		19		12/17/21		2,859		(114,608	)


							$	(492,642	)

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)	$	492,642

^(a)

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	$	1,896,787


Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts	$	(793,470	)

Average Quarterly Balances of Outstanding Derivative Financial Instruments



Futures contracts:
Average notional value of contracts — long	$	11,552,560

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


40		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

Schedule of Investments (unaudited) (continued)

September 30, 2021

iShares^® U.S. Medical Devices ETF

Fair Value Hierarchy as of Period End




	Level 1			Level 2		Level 3		Total


Investments
Assets
Common Stocks	$	8,399,742,291		$	—	$	—	$	8,399,742,291
Money Market Funds		95,972,450			—		—		95,972,450


	$	8,495,714,741		$	—	$	—	$	8,495,714,741

Derivative financial instruments^(a)
Liabilities
Futures Contracts	$	(492,642	)	$	—	$	—	$	(492,642	)

^(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		41

Schedule of Investments (unaudited)

September 30, 2021

iShares^® U.S. Oil & Gas Exploration & Production ETF

(Percentages shown are based on Net Assets)


Security	Shares		Value


Common Stocks

Oil & Gas Exploration & Production — 74.0%
Antero Resources Corp.^(a)		187,098	$	3,519,313
APA Corp.		247,629		5,306,690
Bonanza Creek Energy Inc.		20,207		967,915
Brigham Minerals Inc., Class A		29,635		567,807
Cabot Oil & Gas Corp.		261,806		5,696,899
Callon Petroleum Co.^(a)		25,774		1,264,988
Centennial Resource Development Inc./DE, Class A^(a)		118,956		797,005
Cimarex Energy Co.		67,349		5,872,833
CNX Resources Corp.^(a)		142,739		1,801,366
Comstock Resources Inc.^(a)		59,484		615,659
ConocoPhillips		783,166		53,075,160
Continental Resources Inc./OK		38,521		1,777,744
Denbury Inc.^(a)		32,864		2,308,696
Devon Energy Corp.		402,146		14,280,204
Diamondback Energy Inc.		111,486		10,554,380
EOG Resources Inc.		341,472		27,409,957
EQT Corp.^(a)		198,085		4,052,819
Hess Corp.		165,296		12,911,271
Kosmos Energy Ltd.^(a)		267,285		791,164
Laredo Petroleum Inc.^(a)(b)		8,842		716,821
Magnolia Oil & Gas Corp., Class A		93,023		1,654,879
Marathon Oil Corp.		516,453		7,059,913
Matador Resources Co.^(b)		72,034		2,740,173
Murphy Oil Corp.		95,094		2,374,497
Northern Oil and Gas Inc.		35,543		760,620
Oasis Petroleum Inc.		12,257		1,218,591
Ovintiv Inc.		171,027		5,623,368
PDC Energy Inc.		64,629		3,062,768
Pioneer Natural Resources Co.		132,693		22,094,711
Range Resources Corp.^(a)		170,172		3,850,992
SM Energy Co.		79,405		2,094,704
Southwestern Energy Co.^(a)(b)		443,487		2,456,918
Talos Energy Inc.^(a)		26,815		369,243
Tellurian Inc.^(a)(b)		250,017		977,567
Texas Pacific Land Corp.^(b)		4,062		4,912,420
Whiting Petroleum Corp.^(a)		25,623		1,496,639


				217,036,694

Oil & Gas Refining & Marketing — 19.2%
Clean Energy Fuels Corp.^(a)(b)		111,011		904,740
CVR Energy Inc.		19,098		318,173


Security	Shares		Value


Oil & Gas Refining & Marketing (continued)
Delek U.S. Holdings Inc.		48,513	$	871,779
HollyFrontier Corp.		97,926		3,244,288
Marathon Petroleum Corp.		373,254		23,070,830
New Fortress Energy Inc.^(b)		27,079		751,442
Par Pacific Holdings Inc.^(a)		29,983		471,333
PBF Energy Inc., Class A^(a)		62,225		807,058
Phillips 66		169,466		11,867,704
Valero Energy Corp.		178,219		12,576,915
World Fuel Services Corp.		41,596		1,398,457


				56,282,719

Oil & Gas Storage & Transportation — 6.7%
Cheniere Energy Inc.^(a)		126,167		12,322,731
Targa Resources Corp.		149,784		7,370,871


				19,693,602


Total Common Stocks — 99.9% (Cost: $296,292,901)				293,013,015


Short-Term Investments

Money Market Funds — 0.9%
BlackRock Cash Funds: Institutional, SL Agency Shares, 0.05%^(c)(d)(e)		2,457,959		2,459,188
BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%^(c)(d)		240,000		240,000


				2,699,188


Total Short -Term Investments — 0.9% (Cost: $2,698,519)				2,699,188


Total Investments in Securities — 100.8% (Cost: $298,991,420)				295,712,203

Other Assets, Less Liabilities — (0.8)%				(2,285,551	)


Net Assets — 100.0%			$	293,426,652

^(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.


42		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

Schedule of Investments (unaudited) (continued)

September 30, 2021

iShares^® U.S. Oil & Gas Exploration & Production ETF

Affiliates




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	$	2,451,170		$ 9,395	^(a)	$	—		$	(1,197	)	$	(180	)	$	2,459,188		2,457,959	$	4,169	^(b)	$	—
BlackRock Cash Funds: Treasury, SL Agency Shares		470,000		—			(230,000	)^(a)		—			—			240,000		240,000		18			—


									$	(1,197	)	$	(180	)	$	2,699,188			$	4,187		$	—

^(a)

Represents net amount purchased (sold).

^(b)

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

Description

Number of

Contracts

Expiration

Date

Notional

Amount

(000)

Value/

Unrealized

Appreciation

(Depreciation)

Long Contracts

E-Mini Energy Select Sector Index

12/17/21

379

22,754

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)	$	22,754

^(a)

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	$	13,001


Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts	$	46,846

Average Quarterly Balances of Outstanding Derivative Financial Instruments



Futures contracts:
Average notional value of contracts — long	$	465,370

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


S C H E D U L E O F I N V E S T M E N T S		43

Schedule of Investments (unaudited) (continued)

September 30, 2021

iShares^® U.S. Oil & Gas Exploration & Production ETF

Fair Value Hierarchy as of Period End




	Level 1		Level 2		Level 3		Total


Investments
Assets
Common Stocks	$	293,013,015	$	—	$	—	$	293,013,015
Money Market Funds		2,699,188		—		—		2,699,188


	$	295,712,203	$	—	$	—	$	295,712,203

Derivative financial instruments^(a)
Assets
Futures Contracts	$	22,754	$	—	$	—	$	22,754

^(a)

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

See notes to financial statements.


44		2 0 2 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

Schedule of Investments (unaudited)

September 30, 2021

iShares^® U.S. Oil Equipment & Services ETF

(Percentages shown are based on Net Assets)


Security	Shares		Value


Common Stocks

Oil & Gas Drilling — 12.7%
Helmerich & Payne Inc.		152,769	$	4,187,399
Nabors Industries Ltd.^(a)		13,821		1,333,450
Patterson-UTI Energy Inc.		337,214		3,034,926
Transocean Ltd.^(a)		1,068,661		4,050,225


				12,606,000

Oil & Gas Equipment & Services — 87.1%
Archrock Inc.		239,074		1,972,360
Baker Hughes Co.		856,681		21,185,720
Bristow Group Inc.^(a)(b)		41,338		1,315,789
Cactus Inc., Class A		103,536		3,905,378
ChampionX Corp.^(a)(b)		185,907		4,156,880
Core Laboratories NV^(b)		82,651		2,293,565
DMC Global Inc.^(a)(b)		33,404		1,232,942
Dril-Quip Inc.^(a)(b)		63,206		1,591,527
Frank’s International NV^(a)		312,783		919,582
Halliburton Co.		211,271		4,567,679
Helix Energy Solutions Group Inc.^(a)(b)		252,867		981,124
Liberty Oilfield Services Inc., Class A^(a)		187,676		2,276,510
NexTier Oilfield Solutions Inc.^(a)(b)		284,815		1,310,149
NOV Inc.^(a)		322,660		4,230,073
Oceaneering International Inc.^(a)		178,027		2,371,320
Oil States International Inc.^(a)(b)		109,441		699,328
ProPetro Holding Corp.^(a)		151,051		1,306,591
Schlumberger NV		766,711		22,725,314
Select Energy Services Inc., Class A^(a)(b)		113,065		586,807
TechnipFMC PLC^(a)		649,937		4,894,026
Tidewater Inc.^(a)		73,382		884,987


Security	Shares		Value


Oil & Gas Equipment & Services (continued)
U.S. Silica Holdings Inc.^(a)		133,356	$	1,065,514


				86,473,165


Total Common Stocks — 99.8% (Cost: $110,744,799)				99,079,165


Short-Term Investments

Money Market Funds — 5.5%
BlackRock Cash Funds: Institutional, SL Agency Shares, 0.05%^(c)(d)(e)		5,321,722		5,324,383
BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%^(c)(d)		110,000		110,000


				5,434,383


Total Short -Term Investments — 5.5% (Cost: $5,432,178)				5,434,383


Total Investments in Securities — 105.3% (Cost: $116,176,977)				104,513,548

Other Assets, Less Liabilities — (5.3)%				(5,231,721	)


Net Assets — 100.0%			$	99,281,827

(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




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	$	8,721,767	$	—	$	(3,396,629	)^(a)	$	(572	)	$	(183	)	$	5,324,383		5,321,722	$	8,637	^(b)	$	—
BlackRock Cash Funds: Treasury, SL Agency Shares		630,000		—		(520,000	)^(a)		—			—			110,000		110,000		8			—


								$	(572	)	$	(183	)	$	5,434,383			$	8,645		$	—

(a)

Represents net amount purchased (sold).

(b)


S C H E D U L E O F I N V E S T M E N T S		45

Schedule of Investments (unaudited) (continued)

September 30, 2021

iShares^® U.S. Oil Equipment & Services ETF

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

Description

Number of

Contracts

Expiration

Date

Notional

Amount

(000)

Value/

Unrealized

Appreciation

(Depreciation)

Long Contracts

E-Mini Energy Select Sector Index

12/17/21

162

15,413

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)	$	15,413

(a)

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	$	(6,893	)


Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts	$	22,792

Average Quarterly Balances of Outstanding Derivative Financial Instruments




Futures contracts:

Average notional value of contracts — long			$433,933

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




	Level 1		Level 2		Level 3		Total


Investments
Assets
Common Stocks	$	99,079,165	$	—	$	—	$	99,079,165
Money Market Funds		5,434,383		—		—		5,434,383


	$	104,513,548	$	—	$	—	$	104,513,548

Derivative financial instruments^(a)
Assets
Futures Contracts	$	15,413	$	—	$	—	$	15,413

(a)

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

See notes to financial statements.


46		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

Schedule of Investments (unaudited)

September 30, 2021

iShares^® U.S. Pharmaceuticals ETF

(Percentages shown are based on Net Assets)


Security	Shares		Value


Common Stocks

Biotechnology — 2.9%
Amicus Therapeutics Inc.^(a)		325,854	$	3,111,906
Catalyst Pharmaceuticals Inc.^(a)(b)		129,984		688,915
ChemoCentryx Inc.^(a)(b)		66,319		1,134,055
Ironwood Pharmaceuticals Inc.^(a)(b)		221,259		2,889,643
Madrigal Pharmaceuticals Inc.^(a)		16,234		1,295,311
Spectrum Pharmaceuticals Inc.^(a)		222,419		484,873
Vanda Pharmaceuticals Inc.^(a)(b)		75,573		1,295,321


				10,900,024

Pharmaceuticals — 97.0%
Aerie Pharmaceuticals Inc.^(a)(b)		64,158		731,401
Amneal Pharmaceuticals Inc.^(a)		133,765		714,305
Amphastar Pharmaceuticals Inc.^(a)(b)		50,236		954,986
Antares Pharma Inc.^(a)		230,867		840,356
Arvinas Inc.^(a)		58,804		4,832,513
Atea Pharmaceuticals Inc.^(a)		71,924		2,521,655
Axsome Therapeutics Inc.^(a)(b)		40,315		1,328,782
Bristol-Myers Squibb Co.		274,541		16,244,591
Cara Therapeutics Inc.^(a)		57,151		882,983
Catalent Inc.^(a)		125,207		16,661,296
Collegium Pharmaceutical Inc.^(a)(b)		48,306		953,560
Corcept Therapeutics Inc.^(a)(b)		141,717		2,788,991
Elanco Animal Health Inc.^(a)(b)		525,914		16,771,398
Eli Lilly & Co.		69,939		16,159,406
Endo International PLC^(a)(b)		317,162		1,027,605
Innoviva Inc.^(a)		84,955		1,419,598
Intra-Cellular Therapies Inc.^(a)(b)		100,543		3,748,243
Jazz Pharmaceuticals PLC^(a)		83,058		10,814,982
Johnson & Johnson		518,418		83,724,507
Merck & Co. Inc.		236,508		17,764,116
NGM Biopharmaceuticals Inc.^(a)		50,423		1,059,891
Nuvation Bio Inc.^(a)(b)		156,685		1,557,449
Omeros Corp.^(a)(b)		84,660		1,167,461
Organon & Co.		344,349		11,291,204
Pacira BioSciences Inc.^(a)		60,383		3,381,448
Perrigo Co. PLC		181,624		8,596,264
Pfizer Inc.		1,666,207		71,663,563
Phathom Pharmaceuticals Inc.^(a)		21,269		682,735
Phibro Animal Health Corp., Class A		27,590		594,289


Security	Shares		Value


Pharmaceuticals (continued)
Prestige Consumer Healthcare Inc.^(a)		67,996	$	3,815,256
Provention Bio Inc.^(a)		69,221		443,014
Reata Pharmaceuticals Inc., Class A^(a)(b)		37,068		3,729,412
Relmada Therapeutics Inc.^(a)		22,054		578,035
Revance Therapeutics Inc.^(a)(b)		89,761		2,500,741
Royalty Pharma PLC, Class A		460,429		16,639,904
TherapeuticsMD Inc.^(a)		543,923		403,265
Theravance Biopharma Inc.^(a)(b)		71,220		527,028
Viatris Inc.		1,224,964		16,598,262
Zoetis Inc.		85,144		16,529,856
Zogenix Inc.^(a)		68,333		1,037,978


				363,682,329


Total Common Stocks — 99.9% (Cost: $348,683,528)				374,582,353


Short-Term Investments

Money Market Funds — 4.0%
BlackRock Cash Funds: Institutional, SL Agency Shares, 0.05%^(c)(d)(e)		14,753,587		14,760,964
BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%^(c)(d)		370,000		370,000


				15,130,964


Total Short -Term Investments — 4.0% (Cost: $15,123,648)				15,130,964


Total Investments in Securities — 103.9% (Cost: $363,807,176)				389,713,317

Other Assets, Less Liabilities — (3.9)%				(14,573,429	)


Net Assets — 100.0%			$	375,139,888

(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.


S C H E D U L E O F I N V E S T M E N T S		47

Schedule of Investments (unaudited) (continued)

September 30, 2021

iShares^® U.S. Pharmaceuticals ETF

Affiliates




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	$	15,774,536	$	—	$	(1,012,605	)^(a)	$	(425	)	$	(542	)	$	14,760,964		14,753,587	$	12,998	^(b)	$	—
BlackRock Cash Funds: Treasury, SL Agency Shares		440,000		—		(70,000	)^(a)		—			—			370,000		370,000		18			—


								$	(425	)	$	(542	)	$	15,130,964			$	13,016		$	—

(a)

Represents net amount purchased (sold).

(b)

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts




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


Long Contracts
E-Mini Health Care Sector Index		4		12/17/21	$	513	$	(15,656	)

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)	$	15,656

(a)

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	$	90,771


Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts	$	(25,415	)

Average Quarterly Balances of Outstanding Derivative Financial Instruments




Futures contracts:
Average notional value of contracts — long	$	536,743

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


48		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

Schedule of Investments (unaudited) (continued)

September 30, 2021

iShares^® U.S. Pharmaceuticals ETF

Fair Value Hierarchy as of Period End




	Level 1			Level 2		Level 3		Total


Investments
Assets
Common Stocks	$	374,582,353		$	—	$	—	$	374,582,353
Money Market Funds		15,130,964			—		—		15,130,964


	$	389,713,317		$	—	$	—	$	389,713,317

Derivative financial instruments^(a)
Liabilities
Futures Contracts	$	(15,656	)	$	—	$	—	$	(15,656	)

(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		49

Schedule of Investments (unaudited)

September 30, 2021

iShares^® U.S. Real Estate ETF

(Percentages shown are based on Net Assets)


Security	Shares		Value


Common Stocks

Diversified REITs — 2.5%
PS Business Parks Inc.		104,859	$	16,435,600
STORE Capital Corp.		1,268,979		40,645,397
VEREIT Inc.		1,189,194		53,787,245
WP Carey Inc.		958,288		69,993,355


				180,861,597

Health Care REITs — 8.2%
Healthcare Realty Trust Inc.		759,026		22,603,794
Healthcare Trust of America Inc., Class A		1,135,742		33,686,108
Healthpeak Properties Inc.		2,801,439		93,792,178
Medical Properties Trust Inc.		3,091,491		62,046,224
National Health Investors Inc.		239,121		12,792,973
Omega Healthcare Investors Inc.		1,239,681		37,140,843
Physicians Realty Trust		1,128,259		19,879,924
Sabra Health Care REIT Inc.		1,151,626		16,951,935
Ventas Inc.		2,044,744		112,890,316
Welltower Inc.		2,195,900		180,942,160


				592,726,455

Hotel & Resort REITs — 0.8%
Host Hotels & Resorts Inc.^(a)		3,705,295		60,507,467


Industrial REITs — 10.7%
Americold Realty Trust		1,354,904		39,359,961
Duke Realty Corp.		1,966,518		94,137,217
EastGroup Properties Inc.		209,705		34,943,144
First Industrial Realty Trust Inc.		670,153		34,901,568
Lexington Realty Trust		1,448,203		18,464,588
Prologis Inc.		3,803,276		477,044,909
Rexford Industrial Realty Inc.		714,823		40,566,205
STAG Industrial Inc.		840,928		33,006,424


				772,424,016

Mortgage REITs — 2.7%
AGNC Investment Corp.		2,733,192		43,102,438
Annaly Capital Management Inc.		7,511,867		63,249,920
Blackstone Mortgage Trust Inc., Class A		815,177		24,716,167
New Residential Investment Corp.		2,419,671		26,616,381
Starwood Property Trust Inc.		1,496,057		36,518,751


				194,203,657

Office REITs — 6.4%
Alexandria Real Estate Equities Inc.		720,514		137,668,610
Boston Properties Inc.		738,819		80,051,039
Corporate Office Properties Trust		585,838		15,805,909
Cousins Properties Inc.		771,390		28,765,133
Douglas Emmett Inc.		910,458		28,779,578
Equity Commonwealth^(a)		635,933		16,521,539
Highwoods Properties Inc.		543,364		23,831,945
Hudson Pacific Properties Inc.		791,136		20,783,143
JBG SMITH Properties		605,515		17,929,299
Kilroy Realty Corp.		543,917		36,012,745
SL Green Realty Corp.		350,067		24,798,746
Vornado Realty Trust		828,128		34,789,657


				465,737,343

Real Estate Development — 0.3%
Howard Hughes Corp. (The)^(a)(b)		215,579		18,929,992


Real Estate Services — 4.2%
CBRE Group Inc., Class A^(a)		1,744,690		169,863,018
Compass Inc., Class A^(a)(b)		144,022		1,909,732
Jones Lang LaSalle Inc.^(a)		263,722		65,426,791


Security	Shares		Value


Real Estate Services (continued)
Opendoor Technologies Inc.^(a)(b)		1,976,867	$	40,585,080
Redfin Corp.^(a)(b)		544,229		27,265,873


				305,050,494

Research & Consulting Services — 2.4%
CoStar Group Inc.^(a)		2,052,420		176,631,265


Residential REITs — 15.3%
American Campus Communities Inc.		721,919		34,976,976
American Homes 4 Rent, Class A		1,421,322		54,180,795
Apartment Income REIT Corp.		814,598		39,760,528
AvalonBay Communities Inc.		725,541		160,808,907
Camden Property Trust		522,966		77,121,796
Equity LifeStyle Properties Inc.		888,790		69,414,499
Equity Residential		1,770,777		143,291,275
Essex Property Trust Inc.		337,971		108,062,847
Invitation Homes Inc.		2,995,779		114,828,209
Mid-America Apartment Communities Inc.		602,909		112,593,256
Sun Communities Inc.		602,304		111,486,470
UDR Inc.		1,450,899		76,868,629


				1,103,394,187

Retail REITs — 8.5%
Brixmor Property Group Inc.		1,541,206		34,076,065
Federal Realty Investment Trust		363,236		42,858,216
Kimco Realty Corp.		3,190,802		66,209,141
National Retail Properties Inc.		911,298		39,358,961
Realty Income Corp.		2,023,504		131,244,469
Regency Centers Corp.		793,414		53,420,565
Simon Property Group Inc.		1,707,659		221,944,440
Spirit Realty Capital Inc.		618,123		28,458,383


				617,570,240

Specialized REITs — 37.6%
American Tower Corp.		2,341,601		621,484,322
CoreSite Realty Corp.		229,424		31,784,401
Crown Castle International Corp.		2,223,541		385,384,126
CubeSmart		1,050,118		50,878,217
CyrusOne Inc.		643,625		49,823,011
Digital Realty Trust Inc.		1,468,532		212,129,447
Equinix Inc.		396,693		313,439,040
Extra Space Storage Inc.		695,351		116,812,015
Gaming and Leisure Properties Inc.		1,158,273		53,651,205
Iron Mountain Inc.		1,505,551		65,416,191
Lamar Advertising Co., Class A		451,527		51,225,738
Life Storage Inc.		406,420		46,632,631
National Storage Affiliates Trust		422,667		22,312,591
PotlatchDeltic Corp.		349,583		18,031,491
Public Storage		792,210		235,365,591
Rayonier Inc.		736,295		26,271,006
SBA Communications Corp.		569,308		188,196,146
VICI Properties Inc.		3,188,642		90,589,319
Weyerhaeuser Co.		3,896,348		138,593,098


				2,718,019,586


Total Common Stocks — 99.6% (Cost: $7,759,925,565)				7,206,056,299


Short-Term Investments

Money Market Funds — 0.5%
BlackRock Cash Funds: Institutional, SL Agency Shares, 0.05%^(c)(d)(e)		29,516,206		29,530,964


50		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

Schedule of Investments (unaudited) (continued)

September 30, 2021

iShares^® U.S. Real Estate ETF

(Percentages shown are based on Net Assets)


Security	Shares		Value


Money Market Funds (continued)
BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%^(c)(d)		4,410,000	$	4,410,000


				33,940,964


Total Short -Term Investments — 0.5% (Cost: $33,940,964)				33,940,964


Total Investments in Securities — 100.1% (Cost: $7,793,866,529)				7,239,997,263

Other Assets, Less Liabilities — (0.1)%				(4,313,387	)


Net Assets — 100.0%			$	7,235,683,876

(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




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	$	1,932,786	$	27,599,530	^(a)	$	—		$	1,739	$	(3,091	)	$	29,530,964		29,516,206	$	14,304	^(b)	$	—
BlackRock Cash Funds: Treasury, SL Agency Shares		4,890,000		—			(480,000	)^(a)		—		—			4,410,000		4,410,000		328			—


									$	1,739	$	(3,091	)	$	33,940,964			$	14,632		$	—

(a)

Represents net amount purchased (sold).

(b)

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
Dow Jones U.S. Real Estate Index		737		12/17/21	$	29,274	$	(873,838	)

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)	$	873,838

(a)


S C H E D U L E O F I N V E S T M E N T S		51

Schedule of Investments (unaudited) (continued)

September 30, 2021

iShares^® U.S. Real Estate ETF

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	$	1,577,964


Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts	$	(1,089,707	)

Average Quarterly Balances of Outstanding Derivative Financial Instruments




Futures contracts:
Average notional value of contracts — long			$26,171,980

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




	Level 1			Level 2		Level 3		Total


Investments
Assets
Common Stocks	$	7,206,056,299		$	—	$	—	$	7,206,056,299
Money Market Funds		33,940,964			—		—		33,940,964


	$	7,239,997,263		$	—	$	—	$	7,239,997,263

Derivative financial instruments^(a)
Liabilities
Futures Contracts	$	(873,838	)	$	—	$	—	$	(873,838	)

(a)

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

See notes to financial statements.


52		2 0 2 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

Schedule of Investments (unaudited)

September 30, 2021

iShares^® U.S. Regional Banks ETF

(Percentages shown are based on Net Assets)


Security	Shares		Value


Common Stocks

Diversified Banks — 12.7%
U.S. Bancorp.		2,674,120	$	158,949,693


Regional Banks — 85.9%
Bank OZK		248,051		10,661,232
BOK Financial Corp.		61,858		5,539,384
Citizens Financial Group Inc.		867,477		40,754,070
Comerica Inc.		272,660		21,949,130
Commerce Bancshares Inc.		216,402		15,078,891
Cullen/Frost Bankers Inc.		115,333		13,680,801
East West Bancorp. Inc.		288,855		22,397,817
Fifth Third Bancorp.		1,382,161		58,658,913
First Citizens BancShares Inc./NC, Class A^(a)		14,530		12,251,260
First Financial Bankshares Inc.		260,852		11,986,149
First Horizon Corp.		1,118,406		18,218,834
First Republic Bank/CA		349,445		67,400,952
FNB Corp.		651,366		7,568,873
Glacier Bancorp. Inc.		220,532		12,206,446
Home BancShares Inc./AR		307,238		7,229,310
Huntington Bancshares Inc./OH		3,006,174		46,475,450
KeyCorp.		1,947,107		42,096,453
M&T Bank Corp.		261,980		39,124,093
People’s United Financial Inc.		871,288		15,221,401
Pinnacle Financial Partners Inc.		154,951		14,577,790
PNC Financial Services Group Inc. (The)		842,346		164,796,571
Popular Inc.		164,210		12,754,191
Prosperity Bancshares Inc.		189,200		13,457,796
Regions Financial Corp.		1,943,379		41,413,407
Signature Bank/New York NY		123,453		33,613,783
SVB Financial Group^(b)		90,639		58,632,556
Synovus Financial Corp.		298,154		13,085,979
Truist Financial Corp.		2,645,666		155,168,311
UMB Financial Corp.		87,579		8,469,765
Umpqua Holdings Corp.		448,081		9,073,640
United Bankshares Inc./WV		263,007		9,568,195
Valley National Bancorp.		827,829		11,018,404


Security	Shares		Value


Regional Banks (continued)
Webster Financial Corp.		184,422	$	10,043,622
Western Alliance Bancorp.		212,144		23,085,510
Wintrust Financial Corp.		116,109		9,331,680
Zions Bancorp. NA		329,964		20,421,472


				1,077,012,131

Thrifts & Mortgage Finance — 1.1%
New York Community Bancorp. Inc.		946,777		12,185,020
TFS Financial Corp.		97,626		1,860,751


				14,045,771


Total Common Stocks — 99.7% (Cost: $1,174,308,768)				1,250,007,595


Short-Term Investments

Money Market Funds — 1.2%
BlackRock Cash Funds: Institutional, SL Agency Shares, 0.05%^(c)(d)(e)		12,689,578		12,695,923
BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%^(c)(d)		1,927,000		1,927,000


				14,622,923


Total Short -Term Investments — 1.2% (Cost: $14,622,923)				14,622,923


Total Investments in Securities — 100.9% (Cost: $1,188,931,691)				1,264,630,518

Other Assets, Less Liabilities — (0.9)%				(11,536,415	)


Net Assets — 100.0%			$	1,253,094,103

^(a)	All or a portion of this security is on loan.

^(b)	Non-income producing security.

^(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




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	$	6,598	$	12,689,753	^(a)	$	—	$	(428	)	$	—	$	12,695,923		12,689,578	$	4,059	^(b)	$	—
BlackRock Cash Funds: Treasury, SL Agency Shares		1,127,000		800,000	^(a)		—		—			—		1,927,000		1,927,000		48			—


								$	(428	)	$	—	$	14,622,923			$	4,107		$	—

^(a)

Represents net amount purchased (sold).

^(b)


S C H E D U L E O F I N V E S T M E N T S		53

Schedule of Investments (unaudited) (continued)

September 30, 2021

iShares^® U.S. Regional Banks ETF

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts




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


Long Contracts
E-Mini Financial Select Sector Index		25		12/17/21	$	2,886	$	(681	)

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)	$	681

^(a)

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	$	119,446


Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts	$	9,298

Average Quarterly Balances of Outstanding Derivative Financial Instruments




Futures contracts:
Average notional value of contracts — long	$	2,130,075

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




	Level 1			Level 2		Level 3		Total


Investments
Assets
Common Stocks	$	1,250,007,595		$	—	$	—	$	1,250,007,595
Money Market Funds		14,622,923			—		—		14,622,923


	$	1,264,630,518		$	—	$	—	$	1,264,630,518


Derivative financial instruments^(a)
Liabilities
Futures Contracts	$	(681	)	$	—	$	—	$	(681	)

^(a)

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

See notes to financial statements.


54		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

Schedule of Investments (unaudited)

September 30, 2021

iShares^® U.S. Telecommunications ETF

(Percentages shown are based on Net Assets)


Security	Shares		Value


Common Stocks

Alternative Carriers — 3.3%
Lumen Technologies Inc.		1,128,457	$	13,981,582


Cable & Satellite — 31.2%
Altice USA Inc., Class A^(a)		479,115		9,927,263
Cable One Inc.		6,733		12,207,804
Charter Communications Inc., Class A^(a)		20,925		15,224,193
Comcast Corp., Class A		1,208,584		67,596,103
DISH Network Corp., Class A^(a)		299,844		13,031,220
Liberty Broadband Corp., Class A^(a)		11,193		1,884,342
Liberty Broadband Corp., Class C, NVS^(a)		65,349		11,285,773


				131,156,698

Communications Equipment — 39.5%
Arista Networks Inc.^(a)		38,775		13,324,641
Ciena Corp.^(a)		239,890		12,318,351
Cisco Systems Inc.		1,128,427		61,420,282
CommScope Holding Co. Inc.^(a)		888,319		12,072,255
Juniper Networks Inc.		477,927		13,152,551
Lumentum Holdings Inc.^(a)		152,259		12,719,717
Motorola Solutions Inc.		59,279		13,771,697
Ubiquiti Inc.		41,883		12,509,196
Viasat Inc.^(a)		264,871		14,586,446


				165,875,136

Integrated Telecommunication Services — 19.0%
AT&T Inc.		724,964		19,581,277
Verizon Communications Inc.		1,114,366		60,186,908


				79,768,185


Security	Shares		Value


Movies & Entertainment — 3.3%
Roku Inc.^(a)		43,450	$	13,615,058


Wireless Telecommunication Services — 3.6%
T-Mobile U.S. Inc.^(a)		119,070		15,212,383


Total Common Stocks — 99.9% (Cost: $429,770,291)				419,609,042


Short-Term Investments

Money Market Funds — 0.1%
BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%^(b)(c)		440,000		440,000


Total Short -Term Investments — 0.1% (Cost: $440,000)				440,000


Total Investments in Securities — 100.0% (Cost: $430,210,291)				420,049,042

Other Assets, Less Liabilities — (0.0)%				(46,207	)


Net Assets — 100.0%			$	420,002,835

^(a)	Non-income producing security.

^(b)	Affiliate of the Fund.

^(c)	Annualized 7-day yield as of period end.

Affiliates




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)	$	13,810,207	$	—	$	(13,810,730	)^(b)	$	5,484	$	(4,961	)	$	—		—	$	8,502	^(c)	$	—
BlackRock Cash Funds: Treasury, SL Agency Shares		550,000		—		(110,000	)^(b)		—		—			440,000		440,000		21			—


								$	5,484	$	(4,961	)	$	440,000			$	8,523		$	—

^(a)

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

^(b)

Represents net amount purchased (sold).

^(c)


S C H E D U L E O F I N V E S T M E N T S		55

Schedule of Investments (unaudited) (continued)

September 30, 2021

iShares^® U.S. Telecommunications ETF

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts




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


Long Contracts
E-Mini S&P Communication Services Index		3		12/17/21	$	315	$	(12,695	)

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)	$	12,695

^(a)

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	$	164,886


Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts	$	(8,100	)

Average Quarterly Balances of Outstanding Derivative Financial Instruments




Futures contracts:
Average notional value of contracts — long	$	433,926

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




	Level 1			Level 2		Level 3		Total


Investments
Assets
Common Stocks	$	419,609,042		$	—	$	—	$	419,609,042
Money Market Funds		440,000			—		—		440,000


	$	420,049,042		$	—	$	—	$	420,049,042

Derivative financial instruments^(a)
Liabilities
Futures Contracts	$	(12,695	)	$	—	$	—	$	(12,695	)

^(a)

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

See notes to financial statements.


56		2 0 2 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

Statements of Assets and Liabilities (unaudited)

September 30, 2021


	iShares Focused Value Factor ETF		iShares U.S. Aerospace & Defense ETF			iShares U.S. Broker-Dealers & Securities Exchanges ETF			iShares U.S. Healthcare Providers ETF


ASSETS

Investments in securities, at value (including securities on loan)^(a):
Unaffiliated^(b)	$	32,702,121	$	2,604,220,991			$	875,333,260	$	1,149,401,763
Affiliated^(c)		80,000		66,236,357				1,130,000		56,553,777
Cash		2,877		9,729				4,338		6,826
Cash pledged:
Futures contracts		8,000		100,000				41,000		20,000
Receivables:
Securities lending income — Affiliated		—		7,753				—		6,931
Dividends		94,920		157,044				115,445		154,128


Total assets		32,887,918		2,670,731,874				876,624,043		1,206,143,425


LIABILITIES
Collateral on securities loaned, at value		—		63,721,101				—		55,739,522
Payables:
Variation margin on futures contracts		1,822		34,864				10,472		4,974
Capital shares redeemed		—		7,535				—		—
Investment advisory fees		7,319		876,835				285,338		381,274


Total liabilities		9,141		64,640,335				295,810		56,125,770


NET ASSETS	$	32,878,777	$	2,606,091,539			$	876,328,233	$	1,150,017,655


NET ASSETS CONSIST OF:
Paid-in capital	$	30,735,826	$	3,141,421,973			$	800,353,408	$	1,053,649,715
Accumulated earnings (loss)		2,142,951		(535,330,434	)			75,974,825		96,367,940


NET ASSETS	$	32,878,777	$	2,606,091,539			$	876,328,233	$	1,150,017,655


Shares outstanding		600,000		25,000,000				8,400,000		4,500,000


Net asset value	$	54.80	$	104.24			$	104.32	$	255.56


Shares authorized		Unlimited		Unlimited				Unlimited		Unlimited


Par value		None		None				None		None


^(a) Securities loaned, at value	$	—	$	63,686,998			$	—	$	55,118,257
^(b) Investments, at cost — Unaffiliated	$	31,600,953	$	2,501,209,278			$	830,646,793	$	1,048,037,928
^(c) Investments, at cost — Affiliated	$	80,000	$	66,214,965			$	1,130,000	$	56,536,643

See notes to financial statements.


F I N A N C I A L S T A T E M E N T S		57

Statements of Assets and Liabilities (unaudited) (continued)

September 30, 2021


	iShares U.S. Home Construction ETF		iShares U.S. Infrastructure ETF				iShares U.S. Insurance ETF		iShares U.S. Medical Devices ETF


ASSETS

Investments in securities, at value (including securities on loan)^(a):
Unaffiliated^(b)	$	2,312,960,542		$	649,379,291		$	101,315,580	$	8,399,742,291
Affiliated^(c)		50,972,823			8,557,196			200,000		95,972,450
Cash		9,646			6,406			4,624		64,946
Cash pledged:
Futures contracts		135,000			78,000			21,000		622,000
Receivables:
Securities lending income — Affiliated		5,391			639			132		15,626
Capital shares sold		15,963			—			—		70,904
Dividends		742,192			802,012			235,350		6,609,435


Total assets		2,364,841,557			658,823,544			101,776,686		8,503,097,652


LIABILITIES
Collateral on securities loaned, at value		48,460,336			7,697,058			—		87,174,611
Payables:
Investments purchased		—			381,700			19,366		—
Variation margin on futures contracts		38,241			16,278			5,538		139,024
Capital shares redeemed		23,302			—			—		—
Investment advisory fees		753,233			224,115			34,170		2,789,319


Total liabilities		49,275,112			8,319,151			59,074		90,102,954


NET ASSETS	$	2,315,566,445		$	650,504,393		$	101,717,612	$	8,412,994,698


NET ASSETS CONSIST OF:
Paid-in capital	$	2,228,896,893		$	652,378,098		$	92,620,686	$	5,964,201,849
Accumulated earnings (loss)		86,669,552			(1,873,705	)		9,096,926		2,448,792,849


NET ASSETS	$	2,315,566,445		$	650,504,393		$	101,717,612	$	8,412,994,698


Shares outstanding		35,000,000			19,100,000			1,300,000		133,950,000	^(d)


Net asset value	$	66.16		$	34.06		$	78.24	$	62.81	^(d)


Shares authorized		Unlimited			Unlimited			Unlimited		Unlimited


Par value		None			None			None		None


^(a)Securities loaned, at value	$	45,618,993		$	7,586,619		$	—	$	84,968,126
^(b) Investments, at cost — Unaffiliated	$	2,458,100,118		$	654,710,299		$	90,169,412	$	6,411,555,760
^(c)Investments, at cost — Affiliated	$	50,966,478		$	8,557,196		$	200,000	$	95,846,880
^(d) Shares outstanding and net asset value per share reflect a six-for-one stock split effective after the close of trading on July 16, 2021.

See notes to financial statements.


58		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

Statements of Assets and Liabilities (unaudited) (continued)

September 30, 2021


	iShares U.S. Oil & Gas Exploration & Production ETF			iShares U.S. Oil Equipment & Services ETF			iShares U.S. Pharmaceuticals ETF				iShares U.S. Real Estate ETF


ASSETS

Investments in securities, at value (including securities on loan)^(a):
Unaffiliated^(b)	$	293,013,015		$	99,079,165			$	374,582,353		$	7,206,056,299
Affiliated^(c)		2,699,188			5,434,383				15,130,964			33,940,964
Cash		162,822			9,162				7,708			5,047,531
Cash pledged:
Futures contracts		32,000			14,000				20,000			1,617,000
Receivables:
Investments sold		329,476			—				—			—
Securities lending income — Affiliated		378			543				2,120			6,531
Capital shares sold		—			—				—			123,865
Dividends		81,297			96,649				285,651			21,800,295


Total assets		296,318,176			104,633,902				390,028,796			7,268,592,485


LIABILITIES
Collateral on securities loaned, at value		2,447,737			5,318,913				14,758,805			29,532,304
Payables:
Investments purchased		350,228			—				—			—
Variation margin on futures contracts		5,447			2,342				5,961			446,261
Capital shares redeemed		—			—				—			592,497
Investment advisory fees		88,112			30,820				124,142			2,337,547


Total liabilities		2,891,524			5,352,075				14,888,908			32,908,609


NET ASSETS	$	293,426,652		$	99,281,827			$	375,139,888		$	7,235,683,876


NET ASSETS CONSIST OF:
Paid-in capital	$	485,953,691		$	416,017,289			$	530,272,576		$	7,541,422,424
Accumulated loss		(192,527,039	)		(316,735,462	)			(155,132,688	)		(305,738,548	)


NET ASSETS	$	293,426,652		$	99,281,827			$	375,139,888		$	7,235,683,876


Shares outstanding		5,050,000			7,250,000				2,050,000			70,650,000


Net asset value	$	58.10		$	13.69			$	183.00		$	102.42


Shares authorized		Unlimited			Unlimited				Unlimited			Unlimited


Par value		None			None				None			None


^(a) Securities loaned, at value	$	2,389,416		$	5,102,413			$	14,350,840		$	29,364,598
^(b) Investments, at cost — Unaffiliated	$	296,292,901		$	110,744,799			$	348,683,528		$	7,759,925,565
^(c) Investments, at cost — Affiliated	$	2,698,519		$	5,432,178			$	15,123,648		$	33,940,964

See notes to financial statements.


F I N A N C I A L S T A T E M E N T S		59

Statements of Assets and Liabilities (unaudited) (continued)

September 30, 2021


	iShares U.S. Regional Banks ETF		iShares U.S. Telecommunications ETF


ASSETS
Investments in securities, at value (including securities on loan)^(a):
Unaffiliated^(b)	$	1,250,007,595		$	419,609,042
Affiliated^(c)		14,622,923			440,000
Cash		29,976			8,614
Cash pledged:
Futures contracts		170,000			17,000
Receivables:
Investments sold		1,420,862			—
Securities lending income — Affiliated		1,367			825
Capital shares sold		7,455			1,089
Dividends		3,276,289			67,953


Total assets		1,269,536,467			420,144,523


LIABILITIES
Collateral on securities loaned, at value		12,696,351			—
Payables:
Investments purchased		3,317,286			—
Variation margin on futures contracts		45,986			515
Capital shares redeemed		—			1,110
Investment advisory fees		382,741			140,063


Total liabilities		16,442,364			141,688


NET ASSETS	$	1,253,094,103		$	420,002,835


NET ASSETS CONSIST OF:
Paid-in capital	$	1,177,072,550		$	649,078,896
Accumulated earnings (loss)		76,021,553			(229,076,061	)


NET ASSETS	$	1,253,094,103		$	420,002,835


Shares outstanding		20,700,000			12,950,000


Net asset value	$	60.54		$	32.43


Shares authorized		Unlimited			Unlimited


Par value		None			None


^(a)Securities loaned, at value	$	12,064,920		$	—
^(b) Investments, at cost — Unaffiliated	$	1,174,308,768		$	429,770,291
^(c) Investments, at cost — Affiliated	$	14,622,923		$	440,000

See notes to financial statements.


60		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

Statements of Operations (unaudited)

Six Months Ended September 30, 2021


	iShares Focused Value Factor ETF				iShares U.S. Aerospace & Defense ETF			iShares U.S. Broker-Dealers & Securities Exchanges ETF				iShares U.S. Healthcare Providers ETF


INVESTMENT INCOME
Dividends — Unaffiliated		$	739,155		$	15,149,446			$	7,253,005		$	6,152,787
Dividends — Affiliated			2			125				39			48
Securities lending income — Affiliated — net			230			112,677				—			84,110
Foreign taxes withheld			(1,207	)		—				—			—


Total investment income			738,180			15,262,248				7,253,044			6,236,945


EXPENSES
Investment advisory fees			49,160			5,759,555				1,514,365			2,390,563


Total expenses			49,160			5,759,555				1,514,365			2,390,563


Net investment income			689,020			9,502,693				5,738,679			3,846,382


REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — Unaffiliated			9,014,004			27,807,061				(5,432,238	)		(4,284,972	)
Investments — Affiliated			118			27,878				—			(1,194	)
In-kind redemptions — Unaffiliated			1,703,149			104,888,564				74,059,635			134,176,682
Futures contracts			(4,453	)		(8,566	)			69,918			149,188


Net realized gain			10,712,818			132,714,937				68,697,315			130,039,704


Net change in unrealized appreciation (depreciation) on:
Investments — Unaffiliated			(9,594,414	)		(126,870,695	)			7,091,191			(109,847,790	)
Investments — Affiliated			—			(33,525	)			—			(1,422	)
Futures contracts			248			(176,951	)			3,113			(14,235	)


Net change in unrealized appreciation (depreciation)			(9,594,166	)		(127,081,171	)			7,094,304			(109,863,447	)


Net realized and unrealized gain			1,118,652			5,633,766				75,791,619			20,176,257


NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS		$	1,807,672		$	15,136,459			$	81,530,298		$	24,022,639

See notes to financial statements.


F I N A N C I A L S T A T E M E N T S		61

Statements of Operations (unaudited) (continued)

Six Months Ended September 30, 2021


	iShares U.S. Home Construction ETF			iShares U.S. Infrastructure ETF				iShares U.S. Insurance ETF				iShares U.S. Medical Devices ETF


INVESTMENT INCOME
Dividends — Unaffiliated	$	10,732,951			$	7,361,383			$	1,262,972		$	25,645,500
Dividends — Affiliated		81				37				6			625
Securities lending income — Affiliated — net		39,364				5,478				1,617			160,710


Total investment income		10,772,396				7,366,898				1,264,595			25,806,835


EXPENSES
Investment advisory fees		5,021,080				1,195,129				198,875			16,297,131


Total expenses		5,021,080				1,195,129				198,875			16,297,131


Net investment income		5,751,316				6,171,769				1,065,720			9,509,704


REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — Unaffiliated		(6,026,986	)			(5,579,076	)			(317,406	)		30,248,539
Investments — Affiliated		(3,944	)			256				(61	)		(10,516	)
In-kind redemptions — Unaffiliated		384,345,583				11,994,725				2,098,699			560,584,719
Futures contracts		(32,960	)			(31,070	)			(9,872	)		1,896,787


Net realized gain		378,281,693				6,384,835				1,771,360			592,719,529


Net change in unrealized appreciation (depreciation) on:
Investments — Unaffiliated		(454,556,241	)			(28,055,498	)			2,588,451			431,589,945
Investments — Affiliated		(454	)			(3	)			(6	)		(12,227	)
Futures contracts		(62,234	)			(2,341	)			(2	)		(793,470	)


Net change in unrealized appreciation (depreciation)		(454,618,929	)			(28,057,842	)			2,588,443			430,784,248


Net realized and unrealized gain (loss)		(76,337,236	)			(21,673,007	)			4,359,803			1,023,503,777


NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(70,585,920	)		$	(15,501,238	)		$	5,425,523		$	1,033,013,481

See notes to financial statements.


62		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

Statements of Operations (unaudited) (continued)

Six Months Ended September 30, 2021


	iShares U.S. Oil & Gas Exploration & Production ETF			iShares U.S. Oil Equipment & Services ETF			iShares U.S. Pharmaceuticals ETF				iShares U.S. Real Estate ETF


INVESTMENT INCOME
Dividends — Unaffiliated	$	4,931,985		$	619,403			$	3,644,706		$	71,762,954
Dividends — Affiliated		18			8				18			328
Securities lending income — Affiliated — net		4,169			8,637				12,998			14,304
Foreign taxes withheld		—			(342	)			—			—


Total investment income		4,936,172			627,706				3,657,722			71,777,586


EXPENSES
Investment advisory fees		650,977			311,768				740,982			12,008,130


Total expenses		650,977			311,768				740,982			12,008,130


Net investment income		4,285,195			315,938				2,916,740			59,769,456


REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — Unaffiliated		(23,003,037	)		(9,046,217	)			8,123,555			(31,686,960	)
Investments — Affiliated		(1,197	)		(572	)			(425	)		1,739
In-kind redemptions — Unaffiliated		30,612,344			4,744,010				4,801,721			618,650,861
Futures contracts		13,001			(6,893	)			90,771			1,577,964


Net realized gain (loss)		7,621,111			(4,309,672	)			13,015,622			588,543,604


Net change in unrealized appreciation (depreciation) on:
Investments — Unaffiliated		38,394,219			(1,423,162	)			(2,146,956	)		(152,312,306	)
Investments — Affiliated		(180	)		(183	)			(542	)		(3,091	)
Futures contracts		46,846			22,792				(25,415	)		(1,089,707	)


Net change in unrealized appreciation (depreciation)		38,440,885			(1,400,553	)			(2,172,913	)		(153,405,104	)


Net realized and unrealized gain (loss)		46,061,996			(5,710,225	)			10,842,709			435,138,500


NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	50,347,191		$	(5,394,287	)		$	13,759,449		$	494,907,956

See notes to financial statements.


F I N A N C I A L S T A T E M E N T S		63

Statements of Operations (unaudited) (continued)

Six Months Ended September 30, 2021


	iShares U.S. Regional Banks ETF			iShares U.S. Telecommunications ETF


INVESTMENT INCOME
Dividends — Unaffiliated	$	12,668,880			$	7,424,518
Dividends — Affiliated		48				21
Securities lending income — Affiliated — net		4,059				8,502
Foreign taxes withheld		(11,749	)			—


Total investment income		12,661,238				7,433,041


EXPENSES
Investment advisory fees		1,836,278				888,550


Total expenses		1,836,278				888,550


Net investment income		10,824,960				6,544,491


REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — Unaffiliated		(6,130,177	)			(8,759,266	)
Investments — Affiliated		(428	)			5,484
In-kind redemptions — Unaffiliated		26,539,875				25,869,832
Futures contracts		119,446				164,886


Net realized gain		20,528,716				17,280,936


Net change in unrealized appreciation (depreciation) on:
Investments — Unaffiliated		44,976,893				(15,715,116	)
Investments — Affiliated		—				(4,961	)
Futures contracts		9,298				(8,100	)


Net change in unrealized appreciation (depreciation)		44,986,191				(15,728,177	)


Net realized and unrealized gain		65,514,907				1,552,759


NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	76,339,867			$	8,097,250

See notes to financial statements.


64		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

Statements of Changes in Net Assets


	iShares Focused Value Factor ETF								iShares U.S. Aerospace & Defense ETF


		Six Months Ended 09/30/21 (unaudited)					Year Ended 03/31/21			Six Months Ended 09/30/21 (unaudited)					Year Ended 03/31/21	^(a)


INCREASE (DECREASE) IN NET ASSETS

OPERATIONS
Net investment income			$	689,020		$	771,653				$	9,502,693		$	29,845,339
Net realized gain (loss)				10,712,818			(7,763,351	)				132,714,937			(289,293,750	)
Net change in unrealized appreciation (depreciation)				(9,594,166	)		21,884,168					(127,081,171	)		1,323,199,745


Net increase in net assets resulting from operations				1,807,672			14,892,470					15,136,459			1,063,751,334


DISTRIBUTIONS TO SHAREHOLDERS^(b)
Decrease in net assets resulting from distributions to shareholders				(679,774	)		(787,521	)				(9,662,249	)		(30,040,535	)


CAPITAL SHARE TRANSACTIONS
Net increase (decrease) in net assets derived from capital share transactions				(8,251,770	)		7,756,785					(361,995,638	)		(905,501,184	)


NET ASSETS
Total increase (decrease) in net assets				(7,123,872	)		21,861,734					(356,521,428	)		128,209,615
Beginning of period				40,002,649			18,140,915					2,962,612,967			2,834,403,352


End of period			$	32,878,777		$	40,002,649				$	2,606,091,539		$	2,962,612,967

(a)	Share transactions reflect a two-for-one stock split effective after the close of trading on December 4, 2020.

(b)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.


F I N A N C I A L S T A T E M E N T S		65

Statements of Changes in Net Assets (continued)


	iShares U.S. Broker-Dealers & Securities Exchanges ETF								iShares U.S. Healthcare Providers ETF


		Six Months Ended 09/30/21 (unaudited)					Year Ended 03/31/21			Six Months Ended 09/30/21 (unaudited)					Year Ended 03/31/21


INCREASE (DECREASE) IN NET ASSETS

OPERATIONS
Net investment income			$	5,738,679		$	2,321,910				$	3,846,382		$	6,096,993
Net realized gain				68,697,315			3,038,924					130,039,704			61,949,559
Net change in unrealized appreciation (depreciation)				7,094,304			80,308,220					(109,863,447	)		326,549,848


Net increase in net assets resulting from operations				81,530,298			85,669,054					24,022,639			394,596,400


DISTRIBUTIONS TO SHAREHOLDERS^(a)
Decrease in net assets resulting from distributions to shareholders				(5,699,209	)		(2,538,244	)				(3,845,980	)		(6,386,427	)


CAPITAL SHARE TRANSACTIONS
Net increase (decrease) in net assets derived from capital share transactions				390,549,465			185,731,316					(13,881,984	)		(28,687,694	)


NET ASSETS
Total increase in net assets				466,380,554			268,862,126					6,294,675			359,522,279
Beginning of period				409,947,679			141,085,553					1,143,722,980			784,200,701


End of period			$	876,328,233		$	409,947,679				$	1,150,017,655		$	1,143,722,980

(a)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.


66		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

Statements of Changes in Net Assets (continued)


	iShares U.S. Home Construction ETF								iShares U.S. Infrastructure ETF


		Six Months Ended 09/30/21 (unaudited)					Year Ended 03/31/21			Six Months Ended 09/30/21 (unaudited)					Year Ended 03/31/21


INCREASE (DECREASE) IN NET ASSETS

OPERATIONS
Net investment income			$	5,751,316		$	9,435,630				$	6,171,769		$	1,859,166
Net realized gain				378,281,693			409,554,555					6,384,835			14,962,382
Net change in unrealized appreciation (depreciation)				(454,618,929	)		784,776,170					(28,057,842	)		23,853,728


Net increase (decrease) in net assets resulting from operations				(70,585,920	)		1,203,766,355					(15,501,238	)		40,675,276


DISTRIBUTIONS TO SHAREHOLDERS^(a)
Decrease in net assets resulting from distributions to shareholders				(5,759,854	)		(9,561,991	)				(5,973,585	)		(1,833,932	)


CAPITAL SHARE TRANSACTIONS
Net increase (decrease) in net assets derived from capital share transactions				(253,660,356	)		743,728,526					302,173,991			325,895,791


NET ASSETS
Total increase (decrease) in net assets				(330,006,130	)		1,937,932,890					280,699,168			364,737,135
Beginning of period				2,645,572,575			707,639,685					369,805,225			5,068,090


End of period			$	2,315,566,445		$	2,645,572,575				$	650,504,393		$	369,805,225

(a)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.


F I N A N C I A L S T A T E M E N T S		67

Statements of Changes in Net Assets (continued)


	iShares U.S. Insurance ETF							iShares U.S. Medical Devices ETF


	Six Months Ended 09/30/21 (unaudited)				Year Ended 03/31/21			Six Months Ended 09/30/21 (unaudited)				Year Ended 03/31/21


INCREASE (DECREASE) IN NET ASSETS

OPERATIONS
Net investment income		$	1,065,720		$	1,636,658			$	9,509,704		$	23,384,672
Net realized gain			1,771,360			2,807,695				592,719,529			772,771,841
Net change in unrealized appreciation (depreciation)			2,588,443			22,558,140				430,784,248			1,810,213,646


Net increase in net assets resulting from operations			5,425,523			27,002,493				1,033,013,481			2,606,370,159


DISTRIBUTIONS TO SHAREHOLDERS^(a)
Decrease in net assets resulting from distributions to shareholders			(1,033,845	)		(1,644,120	)			(10,436,237	)		(21,882,239	)


CAPITAL SHARE TRANSACTIONS
Net increase (decrease) in net assets derived from capital share transactions			12,025,007			(2,263,174	)			(816,503,095	)		1,477,573,504


NET ASSETS
Total increase in net assets			16,416,685			23,095,199				206,074,149			4,062,061,424
Beginning of period			85,300,927			62,205,728				8,206,920,549			4,144,859,125


End of period		$	101,717,612		$	85,300,927			$	8,412,994,698		$	8,206,920,549

(a)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.


68		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

Statements of Changes in Net Assets (continued)


	iShares U.S. Oil & Gas Exploration & Production ETF							iShares U.S. Oil Equipment & Services ETF


		Six Months Ended 09/30/21 (unaudited)			Year Ended 03/31/21			Six Months Ended 09/30/21 (unaudited)			Year Ended 03/31/21


INCREASE (DECREASE) IN NET ASSETS

OPERATIONS
Net investment income		$	4,285,195		$	5,266,848		$	315,938		$	1,665,364
Net realized gain (loss)			7,621,111			(64,686,478	)		(4,309,672	)		(44,753,323	)
Net change in unrealized appreciation (depreciation)			38,440,885			166,816,570			(1,400,553	)		78,366,002


Net increase (decrease) in net assets resulting from operations			50,347,191			107,396,940			(5,394,287	)		35,278,043


DISTRIBUTIONS TO SHAREHOLDERS^(a)
Decrease in net assets resulting from distributions to shareholders			(4,233,671	)		(5,431,832	)		(322,486	)		(3,559,832	)


CAPITAL SHARE TRANSACTIONS
Net increase (decrease) in net assets derived from capital share transactions			4,140,116			51,039,147			(266,517,113	)		314,128,775


NET ASSETS
Total increase (decrease) in net assets			50,253,636			153,004,255			(272,233,886	)		345,846,986
Beginning of period			243,173,016			90,168,761			371,515,713			25,668,727


End of period		$	293,426,652		$	243,173,016		$	99,281,827		$	371,515,713

(a)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.


F I N A N C I A L S T A T E M E N T S		69

Statements of Changes in Net Assets (continued)


	iShares U.S. Pharmaceuticals ETF							iShares U.S. Real Estate ETF


	Six Months Ended 09/30/21 (unaudited)				Year Ended 03/31/21			Six Months Ended 09/30/21 (unaudited)				Year Ended 03/31/21


INCREASE (DECREASE) IN NET ASSETS

OPERATIONS
Net investment income		$	2,916,740		$	4,693,351			$	59,769,456		$	79,978,949
Net realized gain (loss)			13,015,622			8,153,078				588,543,604			(66,849,504	)
Net change in unrealized appreciation (depreciation)			(2,172,913	)		83,541,789				(153,405,104	)		1,034,179,845


Net increase in net assets resulting from operations			13,759,449			96,388,218				494,907,956			1,047,309,290


DISTRIBUTIONS TO SHAREHOLDERS^(a)
Decrease in net assets resulting from distributions to shareholders			(3,147,149	)		(4,525,848	)			(53,795,553	)		(102,538,797	)


CAPITAL SHARE TRANSACTIONS
Net increase (decrease) in net assets derived from capital share transactions			9,765,544			(13,503,900	)			2,107,524,936			675,178,259


NET ASSETS
Total increase in net assets			20,377,844			78,358,470				2,548,637,339			1,619,948,752
Beginning of period			354,762,044			276,403,574				4,687,046,537			3,067,097,785


End of period		$	375,139,888		$	354,762,044			$	7,235,683,876		$	4,687,046,537

(a)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.


70		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

Statements of Changes in Net Assets (continued)


	iShares U.S. Regional Banks ETF							iShares U.S. Telecommunications ETF


	Six Months Ended 09/30/21 (unaudited)				Year Ended 03/31/21			Six Months Ended 09/30/21 (unaudited)				Year Ended 03/31/21


INCREASE (DECREASE) IN NET ASSETS

OPERATIONS
Net investment income		$	10,824,960		$	9,303,626			$	6,544,491		$	10,604,477
Net realized gain			20,528,716			6,986,488				17,280,936			9,326,372
Net change in unrealized appreciation (depreciation)			44,986,191			174,236,220				(15,728,177	)		82,965,567


Net increase in net assets resulting from operations			76,339,867			190,526,334				8,097,250			102,896,416


DISTRIBUTIONS TO SHAREHOLDERS^(a)
Decrease in net assets resulting from distributions to shareholders			(10,038,257	)		(9,060,857	)			(6,571,504	)		(10,690,881	)


CAPITAL SHARE TRANSACTIONS
Net increase (decrease) in net assets derived from capital share transactions			512,984,805			295,159,904				(7,404,720	)		41,297,341


NET ASSETS
Total increase (decrease) in net assets			579,286,415			476,625,381				(5,878,974	)		133,502,876
Beginning of period			673,807,688			197,182,307				425,881,809			292,378,933


End of period		$	1,253,094,103		$	673,807,688			$	420,002,835		$	425,881,809

(a)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.


F I N A N C I A L S T A T E M E N T S		71

Financial Highlights

(For a share outstanding throughout each period)


	iShares Focused Value Factor ETF


	Six Months Ended												Period From
	09/30/21				Year Ended				Year Ended						03/19/19	^(a)
	(unaudited)				03/31/21				03/31/20				to 03/31/19


Net asset value, beginning of period		$	53.34			$	30.23			$	48.63			$	49.43


Net investment income^(b)			0.98				1.23				1.33				0.04
Net realized and unrealized gain (loss)^(c)			1.49				23.04				(18.31	)			(0.84	)


Net increase (decrease) from investment operations			2.47				24.27				(16.98	)			(0.80	)


Distributions^(d)
From net investment income			(1.01	)			(1.16	)			(1.42	)			—


Total distributions			(1.01	)			(1.16	)			(1.42	)			—


Net asset value, end of period		$	54.80			$	53.34			$	30.23			$	48.63


Total Return^(e)
Based on net asset value			4.59	%^(f)			81.85	%			(35.71	)%			(1.62	)%^(f)


Ratios to Average Net Assets
Total expenses			0.25	%^(g)			0.25	%			0.25	%			0.25	%^(g)


Net investment income			3.50	%^(g)			3.20	%			2.76	%			2.36	%^(g)


Supplemental Data
Net assets, end of period (000)		$	32,879			$	40,003			$	18,141			$	31,607


Portfolio turnover rate^(h)			132	%^(f)			70	%			149	%			0	%^(f)

^(a)	Commencement of operations.

^(b)	Based on average shares outstanding.

^(c)	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^(d)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(e)	Where applicable, assumes the reinvestment of distributions.

^(f)	Not annualized.

^(g)	Annualized.

^(h)	Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.


72		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

Financial Highlights (continued)

(For a share outstanding throughout each period)


	iShares U.S. Aerospace & Defense ETF


		Six Months Ended 09/30/21 (unaudited)					Year Ended 03/31/21	^(a)		Year Ended 03/31/20	^(a)		Year Ended 03/31/19	^(a)		Year Ended 03/31/18	^(a)		Year Ended 03/31/17	^(a)


Net asset value, beginning of period			$	104.13		$	71.94		$	99.80		$	98.97		$	74.40		$	58.45


Net investment income^(b)				0.35			0.89			1.69			0.89			0.78			0.86
Net realized and unrealized gain (loss)^(c)				0.13			32.23			(27.74	)		1.01			24.70			15.85


Net increase (decrease) from investment operations				0.48			33.12			(26.05	)		1.90			25.48			16.71


Distributions^(d)
From net investment income				(0.37	)		(0.93	)		(1.81	)		(0.92	)		(0.91	)		(0.76	)
From net realized gain				—			—			—			(0.15	)		—			—


Total distributions				(0.37	)		(0.93	)		(1.81	)		(1.07	)		(0.91	)		(0.76	)


Net asset value, end of period			$	104.24		$	104.13		$	71.94		$	99.80		$	98.97		$	74.40


Total Return^(e)
Based on net asset value				0.45	%^(f)		46.23	%		(26.58	)%		1.91	%		34.40	%		28.70	%


Ratios to Average Net Assets
Total expenses				0.39	%^(g)		0.42	%		0.42	%		0.42	%		0.43	%		0.44	%


Net investment income				0.65	%^(g)		1.04	%		1.57	%		0.90	%		0.87	%		1.24	%


Supplemental Data
Net assets, end of period (000)			$	2,606,092		$	2,962,613		$	2,834,403		$	5,019,632		$	5,749,730		$	2,574,090


Portfolio turnover rate^(h)				10	%^(f)		49	%		20	%		38	%		14	%		14	%

^(a)	Per share amounts reflect a two-for-one stock split effective after the close of trading on December 4, 2020.

^(b)	Based on average shares outstanding.

^(c)	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^(d)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(e)	Where applicable, assumes the reinvestment of distributions.

^(f)	Not annualized.

^(g)	Annualized.

^(h)	Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.


F I N A N C I A L H I G H L I G H T S		73

Financial Highlights (continued)

(For a share outstanding throughout each period)


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


		Six Months Ended 09/30/21 (unaudited)				Year Ended 03/31/21				Year Ended 03/31/20				Year Ended 03/31/19				Year Ended 03/31/18				Year Ended 03/31/17


Net asset value, beginning of period			$	92.12			$	51.30			$	58.82			$	65.50			$	51.31			$	37.44


Net investment income^(a)				0.76				1.07				1.03				0.88				0.83				0.83
Net realized and unrealized gain (loss)^(b)				12.14				40.82				(7.46	)			(6.51	)			14.15				13.77


Net increase (decrease) from investment operations				12.90				41.89				(6.43	)			(5.63	)			14.98				14.60


Distributions^(c)
From net investment income				(0.70	)			(1.07	)			(1.09	)			(1.05	)			(0.79	)			(0.73	)


Total distributions				(0.70	)			(1.07	)			(1.09	)			(1.05	)			(0.79	)			(0.73	)


Net asset value, end of period			$	104.32			$	92.12			$	51.30			$	58.82			$	65.50			$	51.31


Total Return^(d)
Based on net asset value				14.00	%^(e)			82.40	%			(11.15	)%			(8.63	)%			29.39	%			39.27	%


Ratios to Average Net Assets
Total expenses				0.39	%^(f)			0.41	%			0.42	%			0.42	%			0.43	%			0.44	%


Net investment income				1.49	%^(f)			1.48	%			1.60	%			1.38	%			1.44	%			1.83	%


Supplemental Data
Net assets, end of period (000)			$	876,328			$	409,948			$	141,086			$	217,641			$	347,155			$	171,887


Portfolio turnover rate^(g)				9	%^(e)			37	%			15	%			27	%			13	%			17	%

^(a)	Based on average shares outstanding.

^(b)	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^(c)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(d)	Where applicable, assumes the reinvestment of distributions.

^(e)	Not annualized.

^(f)	Annualized.

^(g)	Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.


74		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

Financial Highlights (continued)

(For a share outstanding throughout each period)


	iShares U.S. Healthcare Providers ETF


	Six Months Ended 09/30/21 (unaudited)				Year Ended 03/31/21			Year Ended 03/31/20				Year Ended 03/31/19				Year Ended 03/31/18				Year Ended 03/31/17


Net asset value, beginning of period		$	251.37		$	166.85			$	167.98			$	157.08			$	134.12			$	121.98


Net investment income^(a)			0.84			1.30				1.25				0.54				0.35				0.31
Net realized and unrealized gain (loss)^(b)			4.21			84.59				(1.04	)			16.99				22.97				12.14


Net increase from investment operations			5.05			85.89				0.21				17.53				23.32				12.45


Distributions^(c)
From net investment income			(0.86	)		(1.37	)			(1.34	)			(6.63	)			(0.36	)			(0.31	)


Total distributions			(0.86	)		(1.37	)			(1.34	)			(6.63	)			(0.36	)			(0.31	)


Net asset value, end of period		$	255.56		$	251.37			$	166.85			$	167.98			$	157.08			$	134.12


Total Return^(d)
Based on net asset value			2.00	%^(e)		51.63	%			0.10	%			11.25	%			17.40	%			10.23	%


Ratios to Average Net Assets
Total expenses			0.39	%^(f)		0.42	%			0.42	%			0.43	%			0.43	%			0.44	%


Net investment income			0.63	%^(f)		0.61	%			0.70	%			0.29	%			0.24	%			0.25	%


Supplemental Data
Net assets, end of period (000)		$	1,150,018		$	1,143,723			$	784,201			$	797,909			$	471,251			$	529,775


Portfolio turnover rate^(g)			13	%^(e)		27	%			30	%			48	%			20	%			12	%

(a)	Based on average shares outstanding.

(b)	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

(c)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(d)	Where applicable, assumes the reinvestment of distributions.

(e)	Not annualized.

(f)	Annualized.

(g)	Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.


F I N A N C I A L H I G H L I G H T S		75

Financial Highlights (continued)

(For a share outstanding throughout each period)


	iShares U.S. Home Construction ETF


	Six Months Ended 09/30/21 (unaudited)				Year Ended 03/31/21			Year Ended 03/31/20				Year Ended 03/31/19			Year Ended 03/31/18			Year Ended 03/31/17


Net asset value, beginning of period		$	67.84		$	28.94			$	35.26		$	39.24		$	31.97		$	27.09


Net investment income^(a)			0.16			0.27				0.23			0.19			0.13			0.11
Net realized and unrealized gain (loss)^(b)			(1.68	)		38.89				(6.31	)		(3.97	)		7.28			4.89


Net increase (decrease) from investment operations			(1.52	)		39.16				(6.08	)		(3.78	)		7.41			5.00


Distributions^(c)
From net investment income			(0.16	)		(0.26	)			(0.24	)		(0.20	)		(0.14	)		(0.12	)


Total distributions			(0.16	)		(0.26	)			(0.24	)		(0.20	)		(0.14	)		(0.12	)


Net asset value, end of period		$	66.16		$	67.84			$	28.94		$	35.26		$	39.24		$	31.97


Total Return^(d)
Based on net asset value			(2.25	)%^(e)		135.53	%			(17.40	)%		(9.60	)%		23.19	%		18.50	%


Ratios to Average Net Assets
Total expenses			0.39	%^(f)		0.41	%			0.42	%		0.42	%		0.43	%		0.44	%


Net investment income			0.45	%^(f)		0.50	%			0.55	%		0.53	%		0.34	%		0.41	%


Supplemental Data
Net assets, end of period (000)		$	2,315,566		$	2,645,573			$	707,640		$	1,147,657		$	1,618,817		$	1,426,069


Portfolio turnover rate^(g)			2	%^(e)		14	%			15	%		17	%		18	%		12	%

(a)	Based on average shares outstanding.

(b)	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

(c)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(d)	Where applicable, assumes the reinvestment of distributions.

(e)	Not annualized.

(f)	Annualized.

(g)	Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.


76		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

Financial Highlights (continued)

(For a share outstanding throughout each period)


	iShares U.S. Infrastructure ETF

	Six Months Ended														Period From
	09/30/21					Year Ended					Year Ended						04/03/18	^(a)
	(unaudited)				03/31/21					03/31/20					to 03/31/19


Net asset value, beginning of period		$	34.56				$	20.27				$	26.31			$	25.31


Net investment income^(b)			0.37					0.77					0.49				0.43
Net realized and unrealized gain (loss)^(c)			(0.55	)				14.10					(6.00	)			1.24


Net increase (decrease) from investment operations			(0.18	)				14.87					(5.51	)			1.67


Distributions^(d)
From net investment income			(0.32	)				(0.58	)				(0.47	)			(0.34	)
From net realized gain			—					—					—				(0.33	)
Return of capital			—					—					(0.06	)			(0.00	)^(e)


Total distributions			(0.32	)				(0.58	)				(0.53	)			(0.67	)


Net asset value, end of period		$	34.06				$	34.56				$	20.27			$	26.31


Total Return^(f)
Based on net asset value			(0.54	)%^(g)				74.11	%				(21.26	)%			6.78	%^(g)


Ratios to Average Net Assets
Total expenses			0.40	%^(h)				0.40	%				0.40	%			0.40	%^(h)


Net investment income			2.07	%^(h)				2.54	%				1.84	%			1.67	%^(h)


Supplemental Data
Net assets, end of period (000)		$	650,504				$	369,805				$	5,068			$	5,262


Portfolio turnover rate⁽ⁱ⁾			12	%^(g)				65	%				23	%			43	%^(g)

(a)	Commencement of operations.

^(b)	Based on average shares outstanding.

(c)	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

(d)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(e)	Rounds to less than $0.01.

^(f)	Where applicable, assumes the reinvestment of distributions.

(g)	Not annualized.

(h)	Annualized.

(i)	Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.


F I N A N C I A L H I G H L I G H T S		77

Financial Highlights (continued)

(For a share outstanding throughout each period)


	iShares U.S. Insurance ETF

	Six Months Ended 09/30/21 (unaudited)				Year Ended 03/31/21				Year Ended 03/31/20				Year Ended 03/31/19				Year Ended 03/31/18				Year Ended 03/31/17


Net asset value, beginning of period		$	74.17			$	49.76			$	63.64			$	64.54			$	60.46			$	49.91


Net investment income^(a)			0.83				1.51				1.35				1.23				1.18				1.03
Net realized and unrealized gain (loss)^(b)			4.04				24.37				(13.77	)			(0.89	)			4.20				10.48


Net increase (decrease) from investment operations			4.87				25.88				(12.42	)			0.34				5.38				11.51


Distributions^(c)
From net investment income			(0.80	)			(1.47	)			(1.46	)			(1.24	)			(1.30	)			(0.96	)


Total distributions			(0.80	)			(1.47	)			(1.46	)			(1.24	)			(1.30	)			(0.96	)


Net asset value, end of period		$	78.24			$	74.17			$	49.76			$	63.64			$	64.54			$	60.46


Total Return^(d)
Based on net asset value			6.55	%^(e)			52.54	%			(19.92	)%			0.60	%			8.93	%			23.25	%


Ratios to Average Net Assets
Total expenses			0.39	%^(f)			0.42	%			0.42	%			0.43	%			0.43	%			0.44	%


Net investment income			2.10	%^(f)			2.50	%			1.95	%			1.94	%			1.85	%			1.86	%


Supplemental Data
Net assets, end of period (000)		$	101,718			$	85,301			$	62,206			$	98,637			$	132,302			$	166,264


Portfolio turnover rate^(g)			5	%^(e)			10	%			8	%			17	%			12	%			14	%

(a)	Based on average shares outstanding.

(b)	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

(c)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(d)	Where applicable, assumes the reinvestment of distributions.

(e)	Not annualized.

^(f)	Annualized.

(g)	Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.


78		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

Financial Highlights (continued)

(For a share outstanding throughout each period)


		iShares U.S. Medical Devices ETF


	Six Months Ended
			09/30/21 (unaudited)	^(a)		Year Ended 03/31/21	^(a)		Year Ended 03/31/20	^(a)		Year Ended 03/31/19	^(a)		Year Ended 03/31/18	^(a)		Year Ended 03/31/17	^(a)


Net asset value, beginning of period		$	55.04		$	37.54		$	38.57		$	30.81		$	25.24		$	20.41


Net investment income^(b)			0.07			0.15			0.16			0.12			0.11			0.12
Net realized and unrealized gain (loss)^(c)			7.78			17.49			(1.04	)		7.73			5.55			4.85


Net increase (decrease) from investment operations			7.85			17.64			(0.88	)		7.85			5.66			4.97


Distributions^(d)
From net investment income			(0.08	)		(0.14	)		(0.15	)		(0.09	)		(0.09	)		(0.14	)


Total distributions			(0.08	)		(0.14	)		(0.15	)		(0.09	)		(0.09	)		(0.14	)


Net asset value, end of period		$	62.81		$	55.04		$	37.54		$	38.57		$	30.81		$	25.24


Total Return^(e)
Based on net asset value			14.26	%^(f)		47.02	%		(2.32	)%		25.50	%		22.48	%		24.36	%


Ratios to Average Net Assets
Total expenses			0.39	%^(g)		0.41	%		0.42	%		0.43	%		0.43	%		0.44	%


Net investment income			0.23	%^(g)		0.30	%		0.39	%		0.33	%		0.38	%		0.49	%


Supplemental Data
Net assets, end of period (000)		$	8,412,995		$	8,206,921		$	4,144,859		$	3,656,734		$	1,719,373		$	1,052,380


Portfolio turnover rate^(h)			4	%^(f)		9	%		9	%		36	%		15	%		20	%

(a)	Per share amounts reflect a six-for-one stock split effective after the close of trading on July 16, 2021.

(b)	Based on average shares outstanding.

(c)	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

(d)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(e)	Where applicable, assumes the reinvestment of distributions.

(f)	Not annualized.

(g)	Annualized.

(h)	Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.


F I N A N C I A L H I G H L I G H T S		79

Financial Highlights (continued)

(For a share outstanding throughout each period)


	iShares U.S. Oil & Gas Exploration & Production ETF


		Six Months Ended 09/30/21 (unaudited)				Year Ended 03/31/21				Year Ended 03/31/20				Year Ended 03/31/19				Year Ended 03/31/18				Year Ended 03/31/17


Net asset value, beginning of period			$	48.63			$	22.83			$	58.20			$	63.55			$	61.16			$	51.96


Net investment income^(a)				0.68				0.98				0.95				0.67				0.56				0.55
Net realized and unrealized gain (loss)^(b)				9.57				25.92				(35.22	)			(5.11	)			2.49				9.25


Net increase (decrease) from investment operations				10.25				26.90				(34.27	)			(4.44	)			3.05				9.80


Distributions^(c)
From net investment income				(0.78	)			(1.10	)			(1.10	)			(0.91	)			(0.66	)			(0.60	)


Total distributions				(0.78	)			(1.10	)			(1.10	)			(0.91	)			(0.66	)			(0.60	)


Net asset value, end of period			$	58.10			$	48.63			$	22.83			$	58.20			$	63.55			$	61.16


Total Return^(d)
Based on net asset value				21.12	%^(e)			120.05	%			(59.65	)%			(7.06	)%			5.09	%			18.88	%


Ratios to Average Net Assets
Total expenses				0.39	%^(f)			0.42	%			0.42	%			0.42	%			0.43	%			0.44	%


Net investment income				2.59	%^(f)			2.81	%			1.87	%			1.00	%			0.96	%			0.93	%


Supplemental Data
Net assets, end of period (000)			$	293,427			$	243,173			$	90,169			$	276,450			$	365,406			$	418,955


Portfolio turnover rate^(g)				12	%^(e)			21	%			25	%			12	%			17	%			8	%

^(a)	Based on average shares outstanding.

^(b)	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^(c)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(d)	Where applicable, assumes the reinvestment of distributions.

^(e)	Not annualized.

^(f)	Annualized.

^(g)	Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.


80		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

Financial Highlights (continued)

(For a share outstanding throughout each period)


	iShares U.S. Oil Equipment & Services ETF


		Six Months Ended 09/30/21 (unaudited)				Year Ended 03/31/21				Year Ended 03/31/20				Year Ended 03/31/19				Year Ended 03/31/18				Year Ended 03/31/17


Net asset value, beginning of period			$	13.41			$	5.97			$	25.24			$	32.41			$	42.09			$	35.72


Net investment income^(a)				0.03				0.14				0.47				0.34				1.18	^(b)			0.33
Net realized and unrealized gain (loss)^(c)				0.29				7.50				(19.27	)			(7.14	)			(9.61	)			6.39


Net increase (decrease) from investment operations				0.32				7.64				(18.80	)			(6.80	)			(8.43	)			6.72


Distributions^(d)
From net investment income				(0.04	)			(0.20	)			(0.47	)			(0.37	)			(1.25	)			(0.35	)


Total distributions				(0.04	)			(0.20	)			(0.47	)			(0.37	)			(1.25	)			(0.35	)


Net asset value, end of period			$	13.69			$	13.41			$	5.97			$	25.24			$	32.41			$	42.09


Total Return^(e)
Based on net asset value				2.38	%^(f)			129.06	%			(75.48	)%			(21.10	)%			(20.19	)%^(g)			18.88	%


Ratios to Average Net Assets
Total expenses				0.39	%^(h)			0.41	%			0.42	%			0.42	%			0.43	%			0.44	%


Net investment income				0.40	%^(h)			1.37	%			2.44	%			1.09	%			3.37	%^(b)			0.81	%


Supplemental Data
Net assets, end of period (000)			$	99,282			$	371,516			$	25,669			$	155,238			$	204,188			$	250,434


Portfolio turnover rate⁽ⁱ⁾				15	%^(f)			71	%			23	%			35	%			25	%			27	%

^(a)	Based on average shares outstanding.

^(b)	Includes a one-time special distribution from Baker Hughes Inc. Excluding such special distribution, the net investment income would have been $0.37 per share and 1.05% of average net assets.

^(c)	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^(d)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(e)	Where applicable, assumes the reinvestment of distributions.

^(f)	Not annualized.

^(g)	Includes proceeds received from a class action litigation, which impacted the Fund’s total return. Not including these proceeds, the Fund’s total return would have been (20.37)% for the year ended March 31, 2018.

^(h)	Annualized.

⁽ⁱ⁾	Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.


F I N A N C I A L H I G H L I G H T S		81

Financial Highlights (continued)

(For a share outstanding throughout each period)


	iShares U.S. Pharmaceuticals ETF


		Six Months Ended 09/30/21 (unaudited)				Year Ended 03/31/21				Year Ended 03/31/20				Year Ended 03/31/19				Year Ended 03/31/18				Year Ended 03/31/17


Net asset value, beginning of period			$	177.38			$	134.83			$	154.05			$	147.20			$	150.97			$	137.03


Net investment income^(a)				1.45				2.20				2.14				1.73				2.25				1.28
Net realized and unrealized gain (loss)^(b)				5.72				42.53				(19.09	)			6.91				(3.75	)			14.01


Net increase (decrease) from investment operations				7.17				44.73				(16.95	)			8.64				(1.50	)			15.29


Distributions^(c)
From net investment income				(1.55	)			(2.18	)			(2.27	)			(1.79	)			(2.27	)			(1.35	)


Total distributions				(1.55	)			(2.18	)			(2.27	)			(1.79	)			(2.27	)			(1.35	)


Net asset value, end of period			$	183.00			$	177.38			$	134.83			$	154.05			$	147.20			$	150.97


Total Return^(d)
Based on net asset value				4.02	%^(e)			33.30	%			(11.06	)%			5.88	%			(1.05	)%			11.19	%


Ratios to Average Net Assets
Total expenses				0.39	%^(f)			0.42	%			0.42	%			0.42	%			0.43	%			0.44	%


Net investment income				1.55	%^(f)			1.33	%			1.45	%			1.12	%			1.47	%			0.87	%


Supplemental Data
Net assets, end of period (000)			$	375,140			$	354,762			$	276,404			$	385,114			$	390,088			$	717,098


Portfolio turnover rate^(g)				13	%^(e)			52	%			40	%			51	%			23	%			33	%

^(a)	Based on average shares outstanding.

^(b)	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^(c)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(d)	Where applicable, assumes the reinvestment of distributions.

^(e)	Not annualized.

^(f)	Annualized.

^(g)	Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.


82		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

Financial Highlights (continued)

(For a share outstanding throughout each period)


	iShares U.S. Real Estate ETF


		Six Months Ended 09/30/21 (unaudited)				Year Ended 03/31/21				Year Ended 03/31/20				Year Ended 03/31/19				Year Ended 03/31/18				Year Ended 03/31/17


Net asset value, beginning of period			$	91.81			$	69.71			$	86.99			$	75.48			$	78.51			$	77.88


Net investment income^(a)				1.01				1.67				2.16				2.28				2.22				2.19
Net realized and unrealized gain (loss)^(b)				10.41				22.49				(16.61	)			11.86				(2.36	)			1.67

Net increase (decrease) from investment operations				11.42				24.16				(14.45	)			14.14				(0.14	)			3.86


Distributions^(c)
From net investment income				(0.81	)			(2.06	)			(2.83	)			(2.63	)			(2.89	)			(3.23	)


Total distributions				(0.81	)			(2.06	)			(2.83	)			(2.63	)			(2.89	)			(3.23	)


Net asset value, end of period			$	102.42			$	91.81			$	69.71			$	86.99			$	75.48			$	78.51


Total Return^(d)
Based on net asset value				12.42	%^(e)			35.02	%			(17.14	)%			19.09	%			(0.29	)%			5.03	%


Ratios to Average Net Assets
Total expenses				0.39	%^(f)			0.41	%			0.42	%			0.42	%			0.43	%			0.44	%


Net investment income				1.95	%^(f)			2.03	%			2.39	%			2.85	%			2.80	%			2.77	%


Supplemental Data
Net assets, end of period (000)			$	7,235,684			$	4,687,047			$	3,067,098			$	4,597,605			$	3,596,742			$	4,608,522


Portfolio turnover rate^(g)				4	%^(e)			14	%			8	%			11	%			13	%			18	%

^(a)	Based on average shares outstanding.

^(b)	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^(c)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(d)	Where applicable, assumes the reinvestment of distributions.

^(e)	Not annualized.

^(f)	Annualized.

^(g)	Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.


F I N A N C I A L H I G H L I G H T S		83

Financial Highlights (continued)

(For a share outstanding throughout each period)


	iShares U.S. Regional Banks ETF


		Six Months Ended 09/30/21 (unaudited)				Year Ended 03/31/21				Year Ended 03/31/20				Year Ended 03/31/19				Year Ended 03/31/18				Year Ended 03/31/17


Net asset value, beginning of period			$	56.62			$	29.00			$	43.44			$	50.39			$	44.79			$	31.79


Net investment income^(a)				0.68				1.32				1.20				1.01				0.80				0.71
Net realized and unrealized gain (loss)^(b)				3.82				27.52				(14.32	)			(6.91	)			5.60				12.95

Net increase (decrease) from investment operations				4.50				28.84				(13.12	)			(5.90	)			6.40				13.66


Distributions^(c)
From net investment income				(0.58	)			(1.22	)			(1.32	)			(1.05	)			(0.80	)			(0.66	)


Total distributions				(0.58	)			(1.22	)			(1.32	)			(1.05	)			(0.80	)			(0.66	)


Net asset value, end of period			$	60.54			$	56.62			$	29.00			$	43.44			$	50.39			$	44.79


Total Return^(d)
Based on net asset value				7.97	%^(e)			101.55	%			(31.09	)%			(11.79	)%			14.42	%			43.37	%


Ratios to Average Net Assets
Total expenses				0.39	%^(f)			0.41	%			0.42	%			0.42	%			0.43	%			0.44	%


Net investment income				2.31	%^(f)			3.26	%			2.60	%			2.08	%			1.68	%			1.79	%


Supplemental Data
Net assets, end of period (000)			$	1,253,094			$	673,808			$	197,182			$	519,088			$	902,061			$	747,957


Portfolio turnover rate^(g)				9	%^(e)			6	%			5	%			10	%			4	%			6	%

^(a)	Based on average shares outstanding.

^(b)	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^(c)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(d)	Where applicable, assumes the reinvestment of distributions.

^(e)	Not annualized.

^(f)	Annualized.

^(g)	Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.


84		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

Financial Highlights (continued)

(For a share outstanding throughout each period)


	iShares U.S. Telecommunications ETF


		Six Months Ended 09/30/21 (unaudited)				Year Ended 03/31/21				Year Ended 03/31/20				Year Ended 03/31/19				Year Ended 03/31/18				Year Ended 03/31/17


Net asset value, beginning of period			$	32.39			$	24.88			$	29.73			$	27.06			$	32.38			$	30.71


Net investment income^(a)				0.49				0.82				0.71				0.49				0.74				0.66
Net realized and unrealized gain (loss)^(b)				0.04				7.50				(4.80	)			2.71				(5.08	)			1.87


Net increase (decrease) from investment operations				0.53				8.32				(4.09	)			3.20				(4.34	)			2.53


Distributions^(c)
From net investment income				(0.49	)			(0.81	)			(0.76	)			(0.53	)			(0.98	)			(0.86	)


Total distributions				(0.49	)			(0.81	)			(0.76	)			(0.53	)			(0.98	)			(0.86	)


Net asset value, end of period			$	32.43			$	32.39			$	24.88			$	29.73			$	27.06			$	32.38


Total Return^(d)
Based on net asset value				1.60	%^(e)			33.82	%			(13.99	)%			11.91	%			(13.63	)%			8.25	%


Ratios to Average Net Assets
Total expenses				0.39	%^(f)			0.42	%			0.42	%			0.42	%			0.43	%			0.44	%


Net investment income				2.89	%^(f)			2.82	%			2.40	%			1.73	%			2.41	%			2.02	%


Supplemental Data
Net assets, end of period (000)			$	420,003			$	425,882			$	292,379			$	463,756			$	316,596			$	519,768


Portfolio turnover rate^(g)				65	%^(e)			40	%			41	%			35	%			86	%			47	%

^(a)	Based on average shares outstanding.

^(b)	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^(c)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(d)	Where applicable, assumes the reinvestment of distributions.

^(e)	Not annualized.

^(f)	Annualized.

^(g)	Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.


F I N A N C I A L H I G H L I G H T S		85

Notes to Financial Statements (unaudited)

1.	ORGANIZATION

iShares Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust is organized as a Delaware statutory trust and is authorized to have multiple series or portfolios.

These financial statements relate only to the following funds (each, a “Fund,” and collectively, the “Funds”):



iShares ETF		Diversification Classification

Focused Value Factor		Non-diversified
U.S. Aerospace & Defense		Non-diversified
U.S. Broker-Dealers & Securities Exchanges		Non-diversified
U.S. Healthcare Providers		Non-diversified
U.S. Home Construction		Non-diversified
U.S. Infrastructure		Non-diversified
U.S. Insurance		Non-diversified
U.S. Medical Devices		Non-diversified
U.S. Oil & Gas Exploration & Production		Non-diversified
U.S. Oil Equipment & Services		Non-diversified
U.S. Pharmaceuticals		Non-diversified
U.S. Real Estate		Diversified
U.S. Regional Banks		Non-diversified
U.S. Telecommunications		Non-diversified

2.	SIGNIFICANT ACCOUNTING POLICIES

The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:

Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recorded on the ex-dividend date. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Dividends from foreign securities where the ex-dividend date may have passed are subsequently recorded when the Funds are informed of the ex-dividend date. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Upon notification from issuers or as estimated by management, a portion of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain.

Foreign Taxes: The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its Statements of Operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “Other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of September 30, 2021, if any, are disclosed in the Statements of Assets and Liabilities.

The Funds file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. The Funds may record a reclaim receivable based on collectability, which includes factors such as the jurisdiction’s applicable laws, payment history and market convention. The Statements of Operations includes tax reclaims recorded as well as professional and other fees, if any, associated with recovery of foreign withholding taxes.

Segregation and Collateralization: In cases where a Fund enters into certain investments (e.g., futures contracts) that would be treated as “senior securities” for 1940 Act purposes, a Fund may segregate or designate on its books and record cash or liquid assets having a market value at least equal to the amount of its future obligations under such investments. Doing so allows the investment to be excluded from treatment as a “senior security.” Furthermore, if required by an exchange or counterparty agreement, the Funds may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments or obligations.

In-kind Redemptions: For financial reporting purposes, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or net asset value (“NAV”) per share.

Distributions: Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.


86		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

Notes to Financial Statements (unaudited) (continued)

Indemnifications: In the normal course of business, each Fund enters into contracts that contain a variety of representations that provide general indemnification. The Funds’ maximum exposure under these arrangements is unknown because it involves future potential claims against the Funds, which cannot be predicted with any certainty.

3.	INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. Each Fund determines the fair values of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Trustees of the Trust (the “Board”). If a security’s market price is not readily available or does not otherwise accurately represent the fair value of the security, the security will be valued in accordance with a policy approved by the Board as reflecting fair value. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:

•

Equity investments traded on a recognized securities exchange are valued at that day’s official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price.

•

Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published NAV.

•

Futures contracts are valued based on that day’s last reported settlement or trade price on the exchange where the contract is traded.

Generally, trading in foreign instruments is substantially completed each day at various times prior to the close of trading on the New York Stock Exchange (“NYSE”). Each business day, the Funds use current market factors supplied by independent pricing services to value certain foreign instruments (“Systematic Fair Value Price”). The Systematic Fair Value Price is designed to value such foreign securities at fair value as of the close of trading on the NYSE, which follows the close of the local markets.

If events (e.g., market volatility, company announcement or a natural disaster) occur that are expected to materially affect the value of such investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with a policy approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Global Valuation Committee, or its delegate, seeks to determine the price that each Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deems relevant and consistent with the principles of fair value measurement. The pricing of all Fair Valued Investments is subsequently reported to the Board or a committee thereof on a quarterly basis.

Fair value pricing could result in a difference between the prices used to calculate a fund’s NAV and the prices used by the fund’s underlying index, which in turn could result in a difference between the fund’s performance and the performance of the fund’s underlying index.

Fair Value Hierarchy: Various inputs are used in determining the fair value of financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:

•

Level 1 – Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that each Fund has the ability to access;

•

Level 2 – Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs); and

•

Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, (including the Global Valuation Committee’s assumptions used in determining the fair value of financial instruments).

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds that may not have a secondary market and/or may have a limited number of investors. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

4.	SECURITIES AND OTHER INVESTMENTS

Securities Lending: Each Fund may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by an approved bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund


N O T E S T O F I N A N C I A L S T A T E M E N T S		87

Notes to Financial Statements (unaudited) (continued)

or excess collateral is returned by the Fund, on the next business day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.

As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested in money market funds managed by BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, or its affiliates is disclosed in the Schedule of Investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan, if any, are also disclosed in each Fund’s Schedule of Investments. The market value of any securities on loan and the value of any related cash collateral are disclosed in the Statements of Assets and Liabilities.

Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (each, an “MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the Funds, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the Funds can reinvest cash collateral received in connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell or re-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.

As of period end, the following table is a summary of the securities on loan by counterparty which are subject to offset under an MSLA:




iShares ETF and Counterparty		Market Value of Securities on Loan		Cash Collateral Received	^(a)		Non-Cash Collateral Received		Net Amount


U.S. Aerospace & Defense
Barclays Bank PLC	$	255,783	$	234,966		$	—	$	(20,817	)^(b)
BNP Paribas SA		277,440		277,440			—		—
BofA Securities, Inc.		3,885,160		3,584,807			—		(300,353	)^(b)
Citigroup Global Markets, Inc.		4,069,923		4,069,923			—		—
Credit Suisse Securities (USA) LLC		348,336		348,336			—		—
Goldman Sachs & Co. LLC		17,531,175		17,531,175			—		—
J.P. Morgan Securities LLC		13,234		13,234			—		—
Jefferies LLC		75,900		69,723			—		(6,177	)^(b)
Morgan Stanley		4,559,060		4,188,023			—		(371,037	)^(b)
National Financial Services LLC		13,303,603		12,394,222			—		(909,381	)^(b)
State Street Bank & Trust Co.		1,074,086		1,074,086			—		—
Toronto Dominion Bank		279,742		256,975			—		(22,767	)^(b)
UBS AG		490,820		490,820			—		—
UBS Securities LLC		529,230		529,230			—		—
Virtu Americas LLC		272,182		272,182			—		—
Wells Fargo Bank N.A.		551,684		551,684			—		—
Wells Fargo Securities LLC		16,169,640		16,169,640			—		—


	$	63,686,998	$	62,056,466		$	—	$	(1,630,532	)


U.S. Healthcare Providers
Barclays Bank PLC	$	4,326,733	$	4,326,733		$	—	$	—
BNP Paribas SA		15,374,288		15,258,256			—		(116,032	)^(b)
Citadel Clearing LLC		18,162		18,162			—		—
Citigroup Global Markets, Inc.		73,115		73,115			—		—
Credit Suisse Securities (USA) LLC		797,943		797,943			—		—
Goldman Sachs & Co. LLC		7,714,923		7,714,923			—		—
J.P. Morgan Securities LLC		3,762,364		3,762,364			—		—
Morgan Stanley		2,153,214		2,153,214			—		—
National Financial Services LLC		638,010		638,010			—		—
Pershing LLC		66,185		66,185			—		—
RBC Capital Markets LLC		32,400		32,400			—		—
Scotia Capital (USA), Inc.		2,897,329		2,897,329			—		—
SG Americas Securities LLC		8,369,460		8,369,460			—		—
State Street Bank & Trust Co.		3,324,141		3,290,311			—		(33,830	)^(b)
UBS AG		2,765,116		2,765,116			—		—
UBS Securities LLC		5,361		5,361			—		—
Wells Fargo Securities LLC		2,799,513		2,799,513			—		—


	$	55,118,257	$	54,968,395		$	—	$	(149,862	)


88		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

Notes to Financial Statements (unaudited) (continued)




iShares ETF and Counterparty		Market Value of Securities on Loan		Cash Collateral Received	^(a)		Non-Cash Collateral Received		Net Amount


U.S. Home Construction
Barclays Bank PLC	$	454,699	$	454,699		$	—	$	—
Barclays Capital, Inc.		258,398		258,398			—		—
BNP Paribas SA		612,260		612,260			—		—
Citigroup Global Markets, Inc.		16,073,830		16,073,830			—		—
Goldman Sachs & Co. LLC		149,411		149,411			—		—
J.P. Morgan Securities LLC		4,445,167		4,445,167			—		—
Morgan Stanley		20,556,231		20,556,231			—		—
National Financial Services LLC		1,273,560		1,273,560			—		—
State Street Bank & Trust Co.		1,469		1,469			—		—
UBS AG		1,630,880		1,630,880			—		—
Wells Fargo Securities LLC		163,088		163,088			—		—


	$	45,618,993	$	45,618,993		$	—	$	—


U.S. Infrastructure
Barclays Capital, Inc.	$	119,736	$	119,736		$	—	$	—
BofA Securities, Inc.		840,363		840,363			—		—
Morgan Stanley		6,626,520		6,626,520			—		—


	$	7,586,619	$	7,586,619		$	—	$	—


U.S. Medical Devices
Barclays Bank PLC	$	1,642,746	$	1,642,746		$	—	$	—
Barclays Capital, Inc.		1,568,295		1,568,295			—		—
BNP Paribas SA		14,417,205		14,417,205			—		—
BofA Securities, Inc.		6,591,645		6,591,645			—		—
Citigroup Global Markets, Inc.		2,945,696		2,945,696			—		—
Credit Suisse Securities (USA) LLC		1,655,043		1,655,043			—		—
Deutsche Bank Securities, Inc.		634,408		634,408			—		—
Goldman Sachs & Co. LLC		2,024,061		2,024,061			—		—
J.P. Morgan Securities LLC		18,195,245		18,195,245			—		—
Morgan Stanley		4,333,140		4,333,140			—		—
National Financial Services LLC		16,415		16,415			—		—
Toronto Dominion Bank		12,330,814		12,330,814			—		—
UBS AG		17,828,504		17,828,504			—		—
UBS Securities LLC		443,833		443,833			—		—
Virtu Americas LLC		341,076		341,076			—		—


	$	84,968,126	$	84,968,126		$	—	$	—


U.S. Oil & Gas Exploration & Production
Barclays Capital, Inc.	$	310,240	$	310,240		$	—	$	—
BNP Paribas SA		197,230		197,230			—		—
Credit Suisse Securities (USA) LLC		25,051		25,051			—		—
Goldman Sachs & Co. LLC		241,872		241,872			—		—
Scotia Capital (USA), Inc.		555		553			—		(2	)^(b)
UBS AG		967,788		967,788			—		—
UBS Securities LLC		646,680		646,680			—		—


	$	2,389,416	$	2,389,414		$	—	$	(2	)


U.S. Oil Equipment & Services
Barclays Capital, Inc.	$	1,525,631	$	1,525,631		$	—	$	—
BNP Paribas SA		404,296		404,296			—		—
Citigroup Global Markets, Inc.		1,171,664		1,171,664			—		—
Credit Suisse Securities (USA) LLC		137,499		137,499			—		—
Deutsche Bank Securities, Inc.		1,164		1,164			—		—
Goldman Sachs & Co. LLC		25,410		25,410			—		—
J.P. Morgan Securities LLC		1,167,759		1,167,759			—		—
Jefferies LLC		21,726		21,726			—		—
Morgan Stanley		355,200		355,200			—		—
UBS Securities LLC		121,832		121,832			—		—
Wells Fargo Securities LLC		170,232		170,232			—		—


	$	5,102,413	$	5,102,413		$	—	$	—


N O T E S T O F I N A N C I A L S T A T E M E N T S		89

Notes to Financial Statements (unaudited) (continued)




iShares ETF and Counterparty		Market Value of Securities on Loan		Cash Collateral Received	^(a)		Non-Cash Collateral Received		Net Amount


U.S. Pharmaceuticals
BMO Capital Markets Corp.	$	111,440	$	111,440		$	—	$	—
BNP Paribas SA		1,373,975		1,373,975			—		—
BofA Securities, Inc.		120,828		120,495			—		(333	)^(b)
Citigroup Global Markets, Inc.		654,710		654,710			—		—
Credit Suisse Securities (USA) LLC		97,680		97,680			—		—
Goldman Sachs & Co. LLC		381,448		381,448			—		—
J.P. Morgan Securities LLC		3,592,569		3,592,569			—		—
Morgan Stanley		3,641,354		3,641,354			—		—
National Financial Services LLC		93,149		93,149			—		—
SG Americas Securities LLC		82,278		82,278			—		—
Toronto Dominion Bank		2,254,481		2,254,481			—		—
UBS AG		297,768		297,768			—		—
UBS Securities LLC		184,356		184,356			—		—
Virtu Americas LLC		184,962		184,962			—		—
Wells Fargo Bank N.A.		274,992		274,992			—		—
Wells Fargo Securities LLC		1,004,850		1,002,078			—		(2,772	)^(b)


	$	14,350,840	$	14,347,735		$	—	$	(3,105	)


U.S. Real Estate
Barclays Bank PLC	$	8,071,020	$	8,058,861		$	—	$	(12,159	)^(b)
Barclays Capital, Inc.		218,790		218,790			—		—
BNP Paribas SA		1,287,570		1,287,570			—		—
BofA Securities, Inc.		1,159,092		1,159,092			—		—
Citigroup Global Markets, Inc.		50,879		50,879			—		—
Goldman Sachs & Co. LLC		1,142,280		1,142,280			—		—
J.P. Morgan Securities LLC		5,420,820		5,420,820			—		—
National Financial Services LLC		430,860		430,860			—		—
UBS AG		8,700,614		8,645,127			—		(55,487	)^(b)
UBS Securities LLC		2,882,673		2,864,810			—		(17,863	)^(b)


	$	29,364,598	$	29,279,089		$	—	$	(85,509	)


U.S. Regional Banks
Barclays Bank PLC	$	2,118,886	$	2,118,886		$	—	$	—
Goldman Sachs & Co. LLC		9,946,034		9,946,034			—		—


	$	12,064,920	$	12,064,920		$	—	$	—

^(a)

Collateral received in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Fund’s statement of assets and liabilities.

^(b)

The market value of the loaned securities is determined as of September 30, 2021. Additional collateral is delivered to the Fund on the next business day in accordance with the MSLA. The net amount would be subject to the borrower default indemnity in the event of default by a counterparty.

The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, each Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned to the extent the collateral received does not cover the value of the securities loaned in the event of borrower default. Each Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by each Fund.

5.	DERIVATIVE FINANCIAL INSTRUMENTS

Futures Contracts: Futures contracts are purchased or sold to gain exposure to, or manage exposure to, changes in interest rates (interest rate risk) and changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk) .

Futures contracts are exchange-traded agreements between the Funds and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, the Funds are required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Amounts pledged, which are considered restricted, are included in cash pledged for futures contracts in the Statements of Assets and Liabilities.

Securities deposited as initial margin are designated in the Schedule of Investments and cash deposited, if any, are shown as cash pledged for futures contracts in the Statements of Assets and Liabilities. Pursuant to the contract, the Funds agree to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as variation margin receivable (or


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Notes to Financial Statements (unaudited) (continued)

payable) on futures contracts in the Statements of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statements of Operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest rates, foreign currency exchange rates or underlying assets.

6.	INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory Fees: Pursuant to an Investment Advisory Agreement with the Trust, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent trustees).

For its investment advisory services to each of the following Funds, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, based on the average daily net assets of each Fund as follows:



iShares ETF	Investment Advisory Fee

Focused Value Factor		0.25	%
U.S. Infrastructure		0.40

For its investment advisory services to each Fund, except for the iShares Focused Value Factor ETF and iShares U.S. Infrastructure ETF, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, based on each Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:



Aggregate Average Daily Net Assets	Investment Advisory Fee

First $10 billion		0.4800	%
Over $10 billion, up to and including $20 billion		0.4300
Over $20 billion, up to and including $30 billion		0.3800
Over $30 billion, up to and including $40 billion		0.3400
Over $40 billion, up to and including $50 billion		0.3300
Over $50 billion, up to and including $60 billion		0.3100
Over $60 billion		0.2945

Prior to July 14, 2021, for its investment advisory services to each Fund, except for the iShares Focused Valued Factor ETF and iShares U.S. Infrastructure ETF, BFA was entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, based on each Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:



Aggregate Average Daily Net Assets	Investment Advisory Fee

First $10 billion		0.48	%
Over $10 billion, up to and including $20 billion		0.43
Over $20 billion, up to and including $30 billion		0.38
Over $30 billion, up to and including $40 billion		0.34
Over $40 billion, up to and including $50 billion		0.33
Over $50 billion		0.31

Distributor: BlackRock Investments, LLC, an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.

Securities Lending: The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan (the “collateral investment fees”). The cash collateral is invested in a money market fund, BlackRock Cash Funds: Institutional or BlackRock Cash Funds: Treasury, managed by BFA, or its affiliates. However, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04%. The SL Agency Shares of such money market fund will not be subject to a sales load, distribution fee or service fee. The money market fund in which the cash collateral has been invested may, under certain circumstances, impose a liquidity fee of up to 2% of the value redeemed or temporarily restrict redemptions for up to 10 business days during a 90 day period, in the event that the money market fund’s weekly liquid assets fall below certain thresholds.

Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment fees. Each Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.

Pursuant to the current securities lending agreement, each Fund retains 77% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.


N O T E S T O F I N A N C I A L S T A T E M E N T S		91

Notes to Financial Statements (unaudited) (continued)

In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in that calendar year exceeds a specified threshold, each Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year 81% of securities lending income (which excludes collateral investment fees), and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

The share of securities lending income earned by each Fund is shown as securities lending income – affiliated – net in its Statements of Operations. For the six months ended September 30, 2021, the Funds paid BTC the following amounts for securities lending agent services:



iShares ETF	Fees Paid to BTC

Focused Value Factor	$	99
U.S. Aerospace & Defense		39,970
U.S. Healthcare Providers		31,457
U.S. Home Construction		16,870
U.S. Infrastructure		2,348
U.S. Insurance		547
U.S. Medical Devices		68,876
U.S. Oil & Gas Exploration & Production		1,787
U.S. Oil Equipment & Services		3,645
U.S. Pharmaceuticals		5,570
U.S. Real Estate		5,916
U.S. Regional Banks		1,739
U.S. Telecommunications		3,641

Officers and Trustees: Certain officers and/or trustees of the Trust are officers and/or trustees of BlackRock or its affiliates.

Other Transactions: Cross trading is the buying or selling of portfolio securities between funds to which BFA (or an affiliate) serves as investment adviser. At its regularly scheduled quarterly meetings, the Board reviews such transactions as of the most recent calendar quarter for compliance with the requirements and restrictions set forth by Rule 17a-7.

For the six months ended September 30, 2021, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:



iShares ETF	Purchases		Sales		Net Realized Gain (Loss)

U.S. Aerospace & Defense	$	118,123,379	$	25,748,488	$	1,900,255
U.S. Broker-Dealers & Securities Exchanges		23,541,210		16,371,698		(1,122,592	)
U.S. Healthcare Providers		28,777,989		13,738,821		(367,442	)
U.S. Home Construction		30,642,160		9,554,378		(1,010,829	)
U.S. Infrastructure		6,063,346		5,043,691		(322,421	)
U.S. Insurance		1,854,039		1,065,461		(75,935	)
U.S. Medical Devices		55,419,719		68,117,802		885,334
U.S. Oil & Gas Exploration & Production		14,608,451		12,846,836		(11,114,103	)
U.S. Oil Equipment & Services		3,906,014		6,506,062		(4,358,112	)
U.S. Pharmaceuticals		15,392,428		9,854,147		(2,261,343	)
U.S. Real Estate		30,273,956		58,092,784		(3,375,531	)
U.S. Regional Banks		41,325,977		6,266,523		(169,391	)
U.S. Telecommunications		119,288,330		74,557,123		2,376,436

Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is shown as dividends – affiliated in the Statements of Operations.

A fund, in order to improve its portfolio liquidity and its ability to track its underlying index, may invest in shares of other iShares funds that invest in securities in the fund’s underlying index.


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Notes to Financial Statements (unaudited) (continued)

7.	PURCHASES AND SALES

For the six months ended September 30, 2021, purchases and sales of investments, excluding short-term investments and in-kind transactions, were as follows:



iShares ETF	Purchases		Sales

Focused Value Factor	$	50,662,369	$	50,955,417
U.S. Aerospace & Defense		280,127,707		279,704,275
U.S. Broker-Dealers & Securities Exchanges		66,515,604		66,530,470
U.S. Healthcare Providers		152,650,978		152,671,212
U.S. Home Construction		58,100,389		59,740,419
U.S. Infrastructure		74,413,775		72,178,706
U.S. Insurance		5,368,110		5,191,992
U.S. Medical Devices		356,559,881		357,533,814
U.S. Oil & Gas Exploration & Production		37,668,733		38,324,307
U.S. Oil Equipment & Services		23,874,437		23,361,066
U.S. Pharmaceuticals		46,647,474		46,647,738
U.S. Real Estate		257,952,167		240,106,831
U.S. Regional Banks		82,069,871		80,348,250
U.S. Telecommunications		286,875,887		286,446,487

For the six months ended September 30, 2021, in-kind transactions were as follows:



iShares ETF	In-kind Purchases		In-kind Sales

Focused Value Factor	$	5,641,398	$	13,701,943
U.S. Aerospace & Defense		180,516,917		541,953,061
U.S. Broker-Dealers & Securities Exchanges		666,960,336		276,479,743
U.S. Healthcare Providers		433,674,053		446,855,082
U.S. Home Construction		2,193,132,479		2,446,181,950
U.S. Infrastructure		368,630,856		68,658,600
U.S. Insurance		19,281,613		7,549,809
U.S. Medical Devices		937,644,873		1,751,266,408
U.S. Oil & Gas Exploration & Production		166,170,050		161,190,170
U.S. Oil Equipment & Services		12,491,481		278,761,318
U.S. Pharmaceuticals		28,684,414		19,034,033
U.S. Real Estate		15,358,012,507		13,247,125,204
U.S. Regional Banks		649,420,793		138,421,386
U.S. Telecommunications		192,117,623		199,706,173

8.	INCOME TAX INFORMATION

Each Fund is treated as an entity separate from the Trust’s other funds for federal income tax purposes. It is each Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required.

Management has analyzed tax laws and regulations and their application to the Funds as of September 30, 2021, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.


N O T E S T O F I N A N C I A L S T A T E M E N T S		93

Notes to Financial Statements (unaudited) (continued)

As of March 31, 2021, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:



iShares ETF	Non-Expiring

Focused Value Factor	$	9,634,428
U.S. Aerospace & Defense		722,874,076
U.S. Broker-Dealers & Securities Exchanges		36,996,700
U.S. Healthcare Providers		122,243,181
U.S. Home Construction		145,185,143
U.S. Infrastructure		3,063,692
U.S. Insurance		3,367,681
U.S. Medical Devices		133,226,956
U.S. Oil & Gas Exploration & Production		184,967,068
U.S. Oil Equipment & Services		287,690,727
U.S. Pharmaceuticals		189,661,444
U.S. Real Estate		322,683,818
U.S. Regional Banks		20,030,231
U.S. Telecommunications		229,710,211

As of September 30, 2021, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:



iShares ETF	Tax Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)

Focused Value Factor	$	31,727,054	$	2,148,359	$	(1,093,044	)	$	1,055,315
U.S. Aerospace & Defense		2,615,292,136		293,327,397		(238,236,491	)		55,090,906
U.S. Broker-Dealers & Securities Exchanges		832,231,633		57,488,040		(13,263,745	)		44,224,295
U.S. Healthcare Providers		1,117,425,963		139,228,243		(50,714,623	)		88,513,620
U.S. Home Construction		2,510,289,591		24,543,318		(170,961,778	)		(146,418,460	)
U.S. Infrastructure		663,352,412		25,543,708		(30,961,974	)		(5,418,266	)
U.S. Insurance		90,854,206		12,945,828		(2,285,811	)		10,660,017
U.S. Medical Devices		6,510,207,933		2,048,302,699		(63,288,533	)		1,985,014,166
U.S. Oil & Gas Exploration & Production		310,991,655		21,741,112		(36,997,810	)		(15,256,698	)
U.S. Oil Equipment & Services		128,600,440		2,590,892		(26,662,371	)		(24,071,479	)
U.S. Pharmaceuticals		368,277,707		49,191,224		(27,771,270	)		21,419,954
U.S. Real Estate		7,799,833,454		89,025,709		(649,735,738	)		(560,710,029	)
U.S. Regional Banks		1,190,652,122		82,857,080		(8,879,365	)		73,977,715
U.S. Telecommunications		436,660,715		8,972,080		(25,596,448	)		(16,624,368	)

9.	PRINCIPAL RISKS

In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Funds and their investments. Each Fund’s prospectus provides details of the risks to which the Fund is subject.

BFA uses a “passive” or index approach to try to achieve each Fund’s investment objective following the securities included in its underlying index during upturns as well as downturns. BFA does not take steps to reduce market exposure or to lessen the effects of a declining market. Divergence from the underlying index and the composition of the portfolio is monitored by BFA.

The Funds may be exposed to additional risks when reinvesting cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00, which may be subject to redemption gates or liquidity fees under certain circumstances.

Market Risk: An outbreak of respiratory disease caused by a novel coronavirus has developed into a global pandemic and has resulted in closing borders, quarantines, disruptions to supply chains and customer activity, as well as general concern and uncertainty. The impact of this pandemic, and other global health crises that may arise in the future, could affect the economies of many nations, individual companies and the market in general in ways that cannot necessarily be foreseen at the present time. This pandemic may result in substantial market volatility and may adversely impact the prices and liquidity of a fund’s investments. The duration of this pandemic and its effects cannot be determined with certainty.

Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or


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Notes to Financial Statements (unaudited) (continued)

industries. A fund may invest in illiquid investments. An illiquid investment is any investment that a fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. A fund may experience difficulty in selling illiquid investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause a fund’s NAV to experience significant increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of a fund may lose value, regardless of the individual results of the securities and other instruments in which a fund invests.

Counterparty Credit Risk: The Funds may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions, including making timely interest and/or principal payments or otherwise honoring its obligations. The Funds manage counterparty credit risk by entering into transactions only with counterparties that the Manager believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Funds to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Funds’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statements of Assets and Liabilities, less any collateral held by the Funds.

A derivative contract may suffer a mark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.

With exchange-traded futures, there is less counterparty credit risk to the Funds since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, a Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Funds.

Concentration Risk: A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its Schedule of Investments.

Certain Funds invest a significant portion of their assets in securities within a single or limited number of market sectors. When a Fund concentrates its investments in this manner, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio. Investment percentages in specific sectors are presented in the Schedule of Investments.

LIBOR Transition Risk: The United Kingdom’s Financial Conduct Authority announced a phase out of the London Interbank Offered Rate (“LIBOR”). Although many LIBOR rates will be phased out by the end of 2021, a selection of widely used USD LIBOR rates will continue to be published through June 2023 in order to assist with the transition. The Funds may be exposed to financial instruments tied to LIBOR to determine payment obligations, financing terms, hedging strategies or investment value. The transition process away from LIBOR might lead to increased volatility and illiquidity in markets for, and reduce the effectiveness of new hedges placed against, instruments whose terms currently include LIBOR. The ultimate effect of the LIBOR transition process on the Funds is uncertain.

10.

CAPITAL SHARE TRANSACTIONS

Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable.

Transactions in capital shares were as follows:




	Six Months Ended 09/30/21						Year Ended 03/31/21


iShares ETF	Shares			Amount			Shares			Amount


Focused Value Factor
Shares sold		100,000		$	5,655,976			300,000		$	14,086,524
Shares redeemed		(250,000	)		(13,907,746	)		(150,000	)		(6,329,739	)


Net increase (decrease)		(150,000	)	$	(8,251,770	)		150,000		$	7,756,785


U.S. Aerospace & Defense
Shares sold		1,700,000		$	180,797,215			5,500,000	^(a)	$	482,427,995
Shares redeemed		(5,150,000	)		(542,792,853	)		(16,450,000	)^(a)		(1,387,929,179	)


Net decrease		(3,450,000	)	$	(361,995,638	)		(10,950,000	)	$	(905,501,184	)

U.S. Broker-Dealers & Securities Exchanges
Shares sold		6,650,000		$	672,011,078			3,800,000		$	318,826,662
Shares redeemed		(2,700,000	)		(281,461,613	)		(2,100,000	)		(133,095,346	)


Net increase		3,950,000		$	390,549,465			1,700,000		$	185,731,316


N O T E S T O F I N A N C I A L S T A T E M E N T S		95

Notes to Financial Statements (unaudited) (continued)




	Six Months Ended 09/30/21						Year Ended 03/31/21


iShares ETF	Shares			Amount			Shares			Amount


U.S. Healthcare Providers
Shares sold		1,650,000		$	436,779,075			1,650,000		$	341,185,827
Shares redeemed		(1,700,000	)		(450,661,059	)		(1,800,000	)		(369,873,521	)


Net decrease		(50,000	)	$	(13,881,984	)		(150,000	)	$	(28,687,694	)


U.S. Home Construction
Shares sold		31,200,000		$	2,198,719,008			68,550,000		$	3,615,477,819
Shares redeemed		(35,200,000	)		(2,452,379,364	)		(54,000,000	)		(2,871,749,293	)


Net increase (decrease)		(4,000,000	)	$	(253,660,356	)		14,550,000		$	743,728,526


U.S. Infrastructure
Shares sold		10,400,000		$	371,939,132			12,450,000		$	390,893,717
Shares redeemed		(2,000,000	)		(69,765,141	)		(2,000,000	)		(64,997,926	)


Net increase		8,400,000		$	302,173,991			10,450,000		$	325,895,791


U.S. Insurance
Shares sold		250,000		$	19,739,776			650,000		$	40,706,846
Shares redeemed		(100,000	)		(7,714,769	)		(750,000	)		(42,970,020	)


Net increase (decrease)		150,000		$	12,025,007			(100,000	)	$	(2,263,174	)


U.S. Medical Devices
Shares sold		14,850,000	^(b)	$	939,999,213			97,800,000		$	4,424,569,395
Shares redeemed		(30,000,000	)^(b)		(1,756,502,308	)		(59,100,000	)		(2,946,995,891	)


Net increase (decrease)		(15,150,000	)	$	(816,503,095	)		38,700,000		$	1,477,573,504


U.S. Oil & Gas Exploration & Production
Shares sold		3,250,000		$	166,685,900			8,800,000		$	296,903,280
Shares redeemed		(3,200,000	)		(162,545,784	)		(7,750,000	)		(245,864,133	)


Net increase		50,000		$	4,140,116			1,050,000		$	51,039,147


U.S. Oil Equipment & Services
Shares sold		900,000		$	12,508,958			45,650,000		$	517,881,759
Shares redeemed		(21,350,000	)		(279,026,071	)		(22,250,000	)		(203,752,984	)


Net increase (decrease)		(20,450,000	)	$	(266,517,113	)		23,400,000		$	314,128,775


U.S. Pharmaceuticals
Shares sold		150,000		$	28,859,113			500,000		$	76,959,841
Shares redeemed		(100,000	)		(19,093,569	)		(550,000	)		(90,463,741	)


Net increase (decrease)		50,000		$	9,765,544			(50,000	)	$	(13,503,900	)


U.S. Real Estate
Shares sold		151,000,000		$	15,404,205,563			191,850,000		$	15,911,291,202
Shares redeemed		(131,400,000	)		(13,296,680,627	)		(184,800,000	)		(15,236,112,943	)


Net increase		19,600,000		$	2,107,524,936			7,050,000		$	675,178,259


U.S. Regional Banks
Shares sold		11,200,000		$	652,403,058			9,800,000		$	486,698,861
Shares redeemed		(2,400,000	)		(139,418,253	)		(4,700,000	)		(191,538,957	)


Net increase		8,800,000		$	512,984,805			5,100,000		$	295,159,904


U.S. Telecommunications

Shares sold		5,800,000		$	193,075,342			14,000,000		$	404,835,931
Shares redeemed		(6,000,000	)		(200,480,062	)		(12,600,000	)		(363,538,590	)


Net increase (decrease)		(200,000	)	$	(7,404,720	)		1,400,000		$	41,297,341

(a)

Share transactions reflect a two-for-one stock split effective after the close of trading on December 4, 2020.

(b)

Share transactions reflect a six-for-one stock split effective after the close of trading on July 16, 2021.

The consideration for the purchase of Creation Units of a fund in the Trust generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Trust may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to State Street Bank and Trust Company, the Trust’s administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also


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Notes to Financial Statements (unaudited) (continued)

pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in shares sold in the table above.

From time to time, settlement of securities related to in-kind contributions or in-kind redemptions may be delayed. In such cases, securities related to in-kind transactions are reflected as a receivable or a payable in the Statements of Assets and Liabilities.

The Board authorized a six-for-one stock split for the iShares U.S. Medical Devices ETF, effective after the close of trading on July 16, 2021, for the shareholders of record on July 14, 2021. The impact of the stock split was an increase in the number of shares outstanding by a factor of six, while decreasing the NAV per share by a factor of six, resulting in no effect on the net assets of the Fund. The financial statements for the Fund have been adjusted to reflect the stock split.

11.

SUBSEQUENT EVENTS

Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.


N O T E S T O F I N A N C I A L S T A T E M E N T S		97

Board Review and Approval of Investment Advisory Contract

iShares Focused Value Factor ETF, iShares U.S. Infrastructure ETF (each the “Fund”)

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Board Members who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Board Members), is required annually to consider and approve the Investment Advisory Agreement between the Trust and BFA (the “Advisory Agreement”) whereby the Board and its committees (composed solely of Independent Board Members) assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. The Independent Board Members requested, and BFA provided, such information as the Independent Board Members, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Agreement. At meetings on May 7, 2021 and May 14, 2021, a committee composed of all of the Independent Board Members (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or its independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June 15-16, 2021, the Board, including the Independent Board Members, reviewed the additional information provided by management in response to these requests.

After extensive discussions and deliberations, the Board, including all of the Independent Board Members, approved the continuance of the Advisory Agreement for the Fund, based on a review of qualitative and quantitative information provided by BFA and their cumulative experience as Board Members. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Independent Board Members were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the continuance of the Advisory Agreement for the Fund, the Board, including the Independent Board Members, considered various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) potential economies of scale and the sharing of related benefits; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, none of which was controlling, and conclusions that formed the basis for the Board, including the Independent Board Members, to approve the continuance of the Advisory Agreement are discussed below.

Expenses and Performance of the Fund: The Board reviewed statistical information prepared by Broadridge Financial Solutions Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, fees and expenses of another fund in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider), objectively selected by Broadridge as comprising the Fund’s applicable peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board noted that, due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances. The Board also noted that overall fund expenses (net of waivers and reimbursements) for the Fund were lower than the median of the overall fund expenses (net of waivers and reimbursements ) of the funds in its Peer Group, excluding iShares funds.

In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for the one-year, three-year, five-year, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2020, to that of relevant comparison fund(s) for the same periods. The Board noted that the Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including additional detailed information as requested by the Board, was also considered. The Board noted that the Fund generally performed in line with its underlying index over the relevant periods.

Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.

Nature, Extent and Quality of Services Provided: Based on management’s representations, including information about recent and proposed enhancements to the iShares business, including with respect to capital markets support and analysis, technology, portfolio management, product design and quality, compliance and risk management, global public policy and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Agreement for the coming year as compared with the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to support the iShares funds and their shareholders and have made significant investments into the iShares business. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies, which were provided at the May 7, 2021 meeting and throughout the year.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided to the Fund under the Advisory Agreement supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.


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Board Review and Approval of Investment Advisory Contract (continued)

by numerous factors, including, among other things, fee waivers by BFA, the types of funds managed, expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at individual fund levels is challenging. The Board discussed with management the sources of direct and ancillary revenue, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Fund. The Board also discussed BFA’s estimated profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below).

Based on this review, the Board concluded that the profits realized by BFA and its affiliates under the Advisory Agreement and from other relationships between the Fund and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors and other information considered.

Economies of Scale: The Board reviewed information and considered the extent to which economies of scale might be realized as the assets of the Fund increase, noting that the issue of potential economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical estimated profitability, including BFA’s and its affiliates’ estimated costs in providing services. The estimated cost information distinguished, among other things, between fixed and variable costs, and showed how the level and nature of fixed and variable costs may impact the existence or size of scale benefits, with the Board recognizing that potential economies of scale are difficult to measure. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board noted that the Advisory Agreement for the Fund did not provide for breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that it would continue to assess the appropriateness of adding breakpoints in the future.

The Board concluded that this review of potential economies of scale and the sharing of related benefits, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates: The Board considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (collectively, the “Other Accounts”). The Board acknowledged BFA’s representation that the iShares funds are fundamentally different investment vehicles from the Other Accounts.

The Board received detailed information regarding how the Other Accounts generally differ from the Fund, including in terms of the types of services and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded investment vehicle, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board noted that BFA and its affiliates do not manage Other Accounts with substantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate.

The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Agreement for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.

Other Benefits to BFA and/or its Affiliates: The Board reviewed other benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, both direct and indirect, including, but not limited to, payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s estimated profitability methodology), payment of advisory fees or other fees to BFA (or its affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services or other services, and BlackRock’s profile in the investment community. The Board also noted the revenue received by BFA and/or its affiliates pursuant to (i) an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds and (ii) other technology-related initiatives aimed to better support the iShares funds. The Board further noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Agreement for the coming year.

Conclusion: Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Board Members, determined that the Fund’s investment advisory fee rate under the Advisory Agreement does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Agreement for the coming year.

iShares U.S. Aerospace & Defense ETF (the “Fund”)


B O A R D R E V I E W A N D A P P R O V A L O F I N V E S T M E N T A D V I S O R Y C O N T R A C T		99

Board Review and Approval of Investment Advisory Contract (continued)

providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. The Independent Board Members requested, and BFA provided, such information as the Independent Board Members, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Agreement. At meetings on May 7, 2021 and May 14, 2021, a committee composed of all of the Independent Board Members (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or its independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June 15-16, 2021, the Board, including the Independent Board Members, reviewed the additional information provided by management in response to these requests.

In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for the one-year, three-year, five-year, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2021, to that of relevant comparison fund(s) for the same periods. The Board noted that the Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including additional detailed information as requested by the Board, was also considered. The Board noted that the Fund generally performed in line with its underlying index over the relevant periods.

Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates: The Board reviewed information about the estimated profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Agreement), and other sources of revenue and expense to BFA and its affiliates from the Fund’s operations for the last calendar year. The Board reviewed BlackRock’s methodology for calculating estimated profitability of the iShares funds, noting that the 15(c) Committee and the Board had focused on the methodology and profitability presentation. The Board recognized that profitability may be affected by numerous factors, including, among other things, fee waivers by BFA, the types of funds managed, expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at individual fund levels is challenging. The Board discussed with management the sources of direct and ancillary revenue,


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Board Review and Approval of Investment Advisory Contract (continued)

including the revenues to BTC, a BlackRock affiliate, from securities lending by the Fund. The Board also discussed BFA’s estimated profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below).

Economies of Scale: The Board reviewed information and considered the extent to which economies of scale might be realized as the assets of the Fund increase, noting that the issue of potential economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical estimated profitability, including BFA’s and its affiliates’ estimated costs in providing services. The estimated cost information distinguished, among other things, between fixed and variable costs, and showed how the level and nature of fixed and variable costs may impact the existence or size of scale benefits, with the Board recognizing that potential economies of scale are difficult to measure. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board noted that the Advisory Agreement for the Fund already provided for breakpoints in the Fund’s investment advisory fee rate, and the Board and BFA agreed during the June 15-16, 2021 meeting to revise the Advisory Agreement for the Fund to provide for one or more additional breakpoints, as the assets of the Fund, on an aggregated basis with the assets of certain other iShares funds, increase. The Board noted that it would continue to assess the appropriateness of adding new or revised breakpoints in the future.

iShares U.S. Broker-Dealers & Securities Exchanges ETF, iShares U.S. Healthcare Providers ETF, iShares U.S. Home Construction ETF, iShares U.S. Insurance ETF, iShares U.S. Medical Devices ETF, iShares U.S. Oil & Gas Exploration & Production ETF, iShares U.S. Oil Equipment & Services ETF, iShares U.S. Pharmaceuticals ETF, iShares U.S. Real Estate ETF, iShares U.S. Regional Banks ETF (each the “Fund”)


B O A R D R E V I E W A N D A P P R O V A L O F I N V E S T M E N T A D V I S O R Y C O N T R A C T		101

Board Review and Approval of Investment Advisory Contract (continued)

assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. The Independent Board Members requested, and BFA provided, such information as the Independent Board Members, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Agreement. At meetings on May 7, 2021 and May 14, 2021, a committee composed of all of the Independent Board Members (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or its independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June 15-16, 2021, the Board, including the Independent Board Members, reviewed the additional information provided by management in response to these requests.

Expenses and Performance of the Fund: The Board reviewed statistical information prepared by Broadridge Financial Solutions Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, fees and expenses of another fund in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider), objectively selected by Broadridge as comprising the Fund’s applicable peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board noted that, due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances. The Board also noted that the overall fund expenses (net of waivers and reimbursements) for the Fund were within range of the median of the overall fund expenses (net of waivers and reimbursements ) of the funds in its Peer Group, excluding iShares funds.


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Board Review and Approval of Investment Advisory Contract (continued)

Economies of Scale: The Board reviewed information and considered the extent to which economies of scale might be realized as the assets of the Fund increase, noting that the issue of potential economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical estimated profitability, including BFA’s and its affiliates’ estimated costs in providing services. The estimated cost information distinguished, among other things, between fixed and variable costs, and showed how the level and nature of fixed and variable costs may impact the existence or size of scale benefits, with the Board recognizing that potential economies of scale are difficult to measure. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board noted that the Advisory Agreement for the Fund already provided for breakpoints in the Fund’s investment advisory fee rate, and the Board and BFA agreed during the June 15-16, 2021 meeting to revise the Advisory Agreement for the Fund to provide for one or more additional breakpoints, as the assets of the Fund, on an aggregated basis with the assets of certain other iShares funds, increase. The Board noted that it would continue to assess the appropriateness of adding new or revised breakpoints in the future.

iShares U.S. Telecommunications ETF (the “Fund”)


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Board Review and Approval of Investment Advisory Contract (continued)

Members requested, and BFA provided, such information as the Independent Board Members, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Agreement. At meetings on May 7, 2021 and May 14, 2021, a committee composed of all of the Independent Board Members (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or its independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June 15-16, 2021, the Board, including the Independent Board Members, reviewed the additional information provided by management in response to these requests.

Expenses and Performance of the Fund: The Board reviewed statistical information prepared by Broadridge Financial Solutions Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, fees and expenses of another fund in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider), objectively selected by Broadridge as comprising the Fund’s applicable peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board noted that, due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances. The Board also noted that the overall fund expenses (net of waivers and reimbursements) for the Fund were higher than the median of overall fund expenses (net of waivers and reimbursements ) of the funds in its Peer Group, excluding iShares funds.

In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for the one-year, three-year, five-year, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2021, to that of relevant comparison fund(s) for the same periods. The Board noted that the Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including additional detailed information as requested by the Board, was also considered. The Board noted that the Fund generally performed in line with its underlying index over the relevant periods.


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Board Review and Approval of Investment Advisory Contract (continued)

Economies of Scale: The Board reviewed information and considered the extent to which economies of scale might be realized as the assets of the Fund increase, noting that the issue of potential economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical estimated profitability, including BFA’s and its affiliates’ estimated costs in providing services. The estimated cost information distinguished, among other things, between fixed and variable costs, and showed how the level and nature of fixed and variable costs may impact the existence or size of scale benefits, with the Board recognizing that potential economies of scale are difficult to measure. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board noted that the Advisory Agreement for the Fund already provided for breakpoints in the Fund’s investment advisory fee rate, and the Board and BFA agreed during the June 15-16, 2021 meeting to revise the Advisory Agreement for the Fund to provide for one or more additional breakpoints, as the assets of the Fund, on an aggregated basis with the assets of certain other iShares funds, increase. The Board noted that it would continue to assess the appropriateness of adding new or revised breakpoints in the future.


B O A R D R E V I E W A N D A P P R O V A L O F I N V E S T M E N T A D V I S O R Y C O N T R A C T		105

Supplemental Information (unaudited)

Regulation Regarding Derivatives

On October 28, 2020, the Securities and Exchange Commission (the “SEC”) adopted new regulations governing the use of derivatives by registered investment companies (“Rule 18f-4”). The Funds will be required to implement and comply with Rule 18f-4 by August 19, 2022. Once implemented, Rule 18f-4 will impose limits on the amount of derivatives a fund can enter into, eliminate the asset segregation framework currently used by funds to comply with Section 18 of the 1940 Act, treat derivatives as senior securities and require funds whose use of derivatives is more than a limited specified exposure amount to establish and maintain a comprehensive derivatives risk management program and appoint a derivatives risk manager.

Section 19(a) Notices

The amounts and sources of distributions reported are estimates and are being provided pursuant to regulatory requirements and are not being provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon each Fund’s investment experience during the year and may be subject to changes based on tax regulations. Shareholders will receive a Form 1099-DIV each calendar year that will inform them how to report these distributions for federal income tax purposes.

September 30, 2021



	Total Cumulative Distributions for the Fiscal Year-to-Date								% Breakdown of the Total Cumulative Distributions for the Fiscal Year-to-Date


iShares ETF	Net Investment Income		Net Realized Capital Gains		Return of Capital		Total Per Share		Net Investment Income			Net Realized Capital Gains			Return of Capital			Total Per Share

U.S. Infrastructure^(a)	$	0.321767	$	—	$	0.000323	$	0.322090		100	%		—	%		0	%^(b)		100	%
U.S. Medical Devices^(a)		0.063652		—		0.016204		0.079856		80			—			20			100
U.S. Real Estate^(a)		0.624241		—		0.189783		0.814024		77			—			23			100

^(a)

The Fund estimates that it has distributed more than its net investment income and net realized capital gains; therefore, a portion of the distribution may be a return of capital. A return of capital may occur, for example, when some or all of the shareholder’s investment in the Fund is returned to the shareholder. A return of capital does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. When distributions exceed total return performance, the difference will incrementally reduce the Fund’s net asset value per share.

^(b)

Rounds to less than 1%.


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General Information

Electronic Delivery

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

To enroll in electronic delivery:

•

Go to icsdelivery.com.

•

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

Householding

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

Availability of Quarterly Schedule of Investments

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

Availability of Proxy Voting Policies and Proxy Voting Records

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

A description of the Company’s policies and procedures with respect to the disclosure of the Fund’s portfolio securities is available in the Fund Prospectus. The Fund discloses its portfolio holdings daily and provides information regarding its top holdings in Fund fact sheets at iShares.com.


G E N E R A L I N F O R M A T I O N		107

Glossary of Terms Used in this Report


Portfolio Abbreviations - Equity

NVS		Non-Voting Shares

REIT		Real Estate Investment Trust


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Want to know more?

iShares.com | 1-800-474-2737

This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus.

Investing involves risk, including possible loss of principal.

The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by FTSE Russell, ICE Data Indices, LLC or S&P Dow Jones Indices LLC, nor do these companies make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the companies listed above.

iS-SAR-311-0921