LOGO

  SEPTEMBER 30, 2023

 

 

   

  

2023 Semi-Annual Report

(Unaudited)

 

 

iShares Trust

· iShares S&P 100 ETF | OEF | NYSE Arca

· iShares S&P 500 Growth ETF | IVW | NYSE Arca

· iShares S&P 500 Value ETF | IVE | NYSE Arca

· iShares S&P Small-Cap 600 Value ETF | IJS | NYSE Arca


The Markets in Review

Dear Shareholder,

The combination of continued economic growth and moderating inflation provided a supportive backdrop for investors during the 12-month reporting period ended September 30, 2023. Significantly tighter monetary policy helped to rein in inflation while the economy proved more resilient than many investors anticipated. A moderating labor market also helped ease inflationary pressure, although wages continued to grow and unemployment rates touched the lowest levels in decades. This robust labor market powered further growth in consumer spending, backstopping the economy. On October 7, 2023, Hamas launched a horrific attack on Israel. The ensuing war will have a significant humanitarian impact and could lead to heightened economic and market volatility. We see geopolitics as a structural market risk going forward. See our geopolitical risk dashboard at blackrock.com for more details.

Equity returns were substantial, as the durability of consumer sentiment and spending mitigated investors’ concerns about the economy’s trajectory. The U.S. economy resumed growth in the third quarter of 2022 and continued to expand thereafter. All major classes of equities rose, although large-capitalization U.S. stocks posted significantly higher returns than small-capitalization U.S. stocks due primarily to the performance of large technology companies. International developed market equities also advanced strongly, and emerging market equities posted solid gains.

The 10-year U.S. Treasury yield rose during the reporting period, driving its price down, as investors reacted to elevated inflation and attempted to anticipate future interest rate changes. The corporate bond market benefited from improving economic sentiment, although high-yield corporate bond prices fared significantly better than investment-grade bonds as demand from yield-seeking investors remained strong.

The U.S. Federal Reserve (the “Fed”), attempting to manage persistent inflation, raised interest rates six times during the 12-month period. Furthermore, the Fed wound down its bond-buying programs and incrementally reduced its balance sheet by not replacing securities that reach maturity. However, the Fed declined to raise interest rates at two of its meetings late in the period.

Supply constraints appear to have become an embedded feature of the new macroeconomic environment, making it difficult for developed economies to increase production without sparking higher inflation. Geopolitical fragmentation and an aging population risk further exacerbating these constraints, keeping the labor market tight and wage growth high. Although the Fed has decelerated the pace of interest rate hikes and recently opted for two pauses, we believe that the new economic regime means that the Fed will need to maintain high rates for an extended period to keep inflation under control. Furthermore, ongoing structural changes may mean that the Fed will be hesitant to cut interest rates in the event of faltering economic activity lest inflation accelerate again. We believe investors should expect a period of higher volatility as markets adjust to the new economic reality and policymakers attempt to adapt.

While we favor an overweight position in developed market equities in the long term, we prefer an underweight stance in the near term. Expectations for corporate earnings remain elevated, which seems inconsistent with macroeconomic constraints. Nevertheless, we are overweight on Japanese stocks in the near term as shareholder-friendly policies generate increased investor interest. We also believe that stocks with an AI tilt should benefit from an investment cycle that is set to support revenues and margins. In credit, there are selective opportunities in the near term despite tightening credit and financial conditions. For fixed income investing with a six- to twelve-month horizon, we see the most attractive investments in short-term U.S. Treasuries, U.S. inflation-linked bonds, euro area government bonds and gilts, U.S. mortgage-backed securities, and hard-currency emerging market bonds.

Overall, our view is that investors need to think globally, position themselves to be prepared for a decarbonizing economy, and be nimble as market conditions change. We encourage you to talk with your financial advisor and visit iShares.com for further insight about investing in today’s markets.

Sincerely,

 

LOGO

Rob Kapito

President, BlackRock, Inc.

LOGO

Rob Kapito

President, BlackRock, Inc.

 

Total Returns as of September 30, 2023

 

    

 

 6-Month 

 

 

 

 12-Month 

 

 

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

 

  5.18%   21.62%

 

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

 

  (0.19)       8.93  

 

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

 

  (1.28)     25.65  

 

Emerging market equities (MSCI Emerging Markets Index)

 

  (2.05)      11.70  

 

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

 

    2.50        4.47  

 

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

 

  (6.98)     (2.90)

 

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

 

  (4.05)       0.64  

 

Tax-exempt municipal bonds (Bloomberg Municipal Bond Index)

 

  (4.05)       2.66  

 

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

 

    2.22      10.28  

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  

Semi-Annual Report:

  

Fund Summary

     4  

About Fund Performance

     8  

Disclosure of Expenses

     8  

Schedules of Investments

     9  

Financial Statements:

  

Statements of Assets and Liabilities

     35  

Statements of Operations

     36  

Statements of Changes in Net Assets

     37  

Financial Highlights

     39  

Notes to Financial Statements

     43  

Board Review and Approval of Investment Advisory Contract

     52  

Supplemental Information

     56  

General Information

     57  

Glossary of Terms Used in this Report

     58  

 

 

  3


Fund Summary  as of September 30, 2023    iShares® S&P 100 ETF

 

Investment Objective

The iShares S&P100 ETF (the “Fund”) seeks to track the investment results of an index composed of 100 large-capitalization U.S. equities, as represented by the S&P 100® (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-Month Total

Returns

     1 Year      5 Years     10 Years     1 Year      5 Years      10 Years  

Fund NAV

    7.95      25.41      10.89     12.38     25.41      67.67      221.26

Fund Market

    7.99        25.26        10.90       12.38       25.26        67.72        221.31  

Index

    8.05        25.66        11.12       12.60       25.66        69.39        227.61  

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

Expense Example

 

Actual              Hypothetical 5% Return           

 

 

        

 

 

      
 

Beginning

Account Value

(04/01/23)

 

 

 

      

Ending

Account Value

(09/30/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

              

Beginning

Account Value

(04/01/23)

 

 

 

      

Ending

Account Value

(09/30/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

      

Annualized
Expense
Ratio
 
 
 
  $       1,000.00          $        1,079.50          $          1.04                  $      1,000.00          $       1,024.00          $        1.01          0.20

 

(a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

Portfolio Information

 

SECTOR ALLOCATION

 

 
Sector  

Percent of   

Total Investments(a)

 

 

 

Information Technology

    32.9%  

Health Care

    12.6     

Communication Services

    12.2     

Financials

    12.0     

Consumer Discretionary

    11.9     

Consumer Staples

    7.1     

Industrials

    5.1     

Energy

    3.7     

Utilities

    1.2     

Other (each representing less than 1%)

    1.3     

 

(a) 

Excludes money market funds.

 

TEN LARGEST HOLDINGS

 

 
Security  

Percent of   

Total Investments(a)

 

 

 

Apple Inc.

    10.3%  

Microsoft Corp.

    9.6     

Amazon.com, Inc.

    4.7     

NVIDIA Corp.

    4.4     

Alphabet, Inc., Class A

    3.2     

Tesla, Inc.

    2.8     

Meta Platforms, Inc., Class A

    2.7     

Alphabet, Inc., Class C, NVS

    2.7     

Berkshire Hathaway, Inc., Class B

    2.6     

Exxon Mobil Corp.

    1.9     

 

 

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Fund Summary  as of September 30, 2023    iShares® S&P 500 Growth ETF

 

Investment Objective

The iShares S&P 500 Growth ETF (the “Fund”) seeks to track the investment results of an index composed of large-capitalization U.S. equities that exhibit growth characteristics, as represented by the S&P 500 Growth 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-Month Total

Returns

    1 Year     5 Years     10 Years     1 Year     5 Years     10 Years  

Fund NAV

    7.63     19.61     10.25     13.26     19.61     62.90     247.33

Fund Market

    7.68       19.54       10.25       13.25       19.54       62.87       247.15  

Index

    7.73       19.82       10.44       13.46       19.82       64.30       253.61  

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

Expense Example

 

Actual        Hypothetical 5% Return           

 

 

      

 

 

      
 

Beginning

Account Value

(04/01/23)

 

 

 

      

Ending

Account Value

(09/30/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

      

Beginning

Account Value

(04/01/23)

 

 

 

      

Ending

Account Value

(09/30/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

      

Annualized

Expense

Ratio

 

 

 

  $       1,000.00          $        1,076.30          $          0.93          $      1,000.00          $       1,024.10          $        0.91          0.18

 

(a)

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

Portfolio Information

 

SECTOR ALLOCATION

 

 

 
Sector  

Percent of   

Total Investments(a)

 

 

 

Information Technology

    35.2%  

Health Care

    17.3     

Consumer Discretionary

    10.4     

Communication Services

    7.9     

Financials

    7.4     

Energy

    7.2     

Consumer Staples

    6.3     

Industrials

    5.1     

Materials

    1.9     

Other (each representing less than 1%)

    1.3     

 

 

 

(a) 

Excludes money market funds.

 

TEN LARGEST HOLDINGS

 

 

 
Security   Percent of   
Total Investments(a)
 

 

 

Apple Inc.

    12.8%  

Microsoft Corp.

    6.9     

NVIDIA Corp.

    5.5     

Alphabet, Inc., Class A

    3.9     

Tesla, Inc.

    3.5     

Alphabet, Inc., Class C, NVS

    3.4     

Amazon.com, Inc.

    2.7     

Exxon Mobil Corp.

    2.4     

UnitedHealth Group, Inc.

    2.4     

Eli Lilly & Co.

    2.2     

 

 

 

 

 

F U N D    S U M M A R Y

    5  


Fund Summary  as of September 30, 2023    iShares® S&P 500 Value ETF

 

Investment Objective

The iShares S&P 500 Value ETF (the “Fund”) seeks to track the investment results of an index composed of large-capitalization U.S. equities that exhibit value characteristics, as represented by the S&P 500 Value 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-Month Total

Returns

    1 Year     5 Years     10 Years     1 Year     5 Years     10 Years  

Fund NAV

    2.19     21.99     8.23     9.46     21.99     48.52     146.85

Fund Market

    2.28       22.04       8.25       9.46       22.04       48.62       146.94  

Index

    2.27       22.19       8.41       9.64       22.19       49.77       150.96  

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

Expense Example

 

Actual           Hypothetical 5% Return           

 

 

     

 

 

      
 


Beginning

Account Value
(04/01/23)

 


 

      

Ending

Account Value

(09/30/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

           

Beginning

Account Value

(04/01/23)

 

 

 

      

Ending

Account Value

(09/30/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

      

Annualized

Expense

Ratio

 

 

 

  $     1,000.00          $        1,021.90          $          0.91               $      1,000.00          $       1,024.10          $        0.91          0.18

 

(a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

Portfolio Information

 

SECTOR ALLOCATION

 

 

 
Sector  

Percent of   

Total Investments(a)

 

 

 

Financials

    19.4%  

Information Technology

    18.0      

Industrials

    12.2      

Consumer Discretionary

    11.1      

Communication Services

    10.1      

Health Care

    8.6      

Consumer Staples

    6.8      

Utilities

    4.8      

Real Estate

    4.2      

Materials

    3.1      

Energy

    1.7      

 

 

 

(a) 

Excludes money market funds.

 

TEN LARGEST HOLDINGS

 

 

 
Security  

Percent of   

Total Investments(a)

 

 

 

Microsoft Corp.

    6.1%  

Meta Platforms, Inc., Class A

    4.1      

Berkshire Hathaway, Inc., Class B

    3.9      

Amazon.com, Inc.

    3.8      

JPMorgan Chase & Co.

    2.6      

Walmart, Inc.

    1.4      

Cisco Systems, Inc.

    1.3      

Salesforce, Inc.

    1.2      

Bank of America Corp.

    1.2      

Comcast Corp., Class A

    1.1      

 

 

 

 

 

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Fund Summary  as of September 30, 2023    iShares® S&P Small-Cap 600 Value ETF

 

Investment Objective

The iShares S&P Small-Cap 600 Value ETF (the “Fund”) seeks to track the investment results of an index composed of small-capitalization U.S. equities that exhibit value characteristics, as represented by the S&P SmallCap 600 Value 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-Month Total

Returns

    1 Year     5 Years     10 Years     1 Year     5 Years     10 Years  

Fund NAV

    (3.82 )%      10.01     2.99     7.37     10.01     15.89     103.67

Fund Market

    (3.71     10.01       2.99       7.37       10.01       15.89       103.66  

Index

    (3.76     10.26       3.23       7.58       10.26       17.22       107.61  

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

Expense Example

 

Actual

      

Hypothetical 5% Return

          

 

 

      

 

 

      
 

Beginning

Account Value

(04/01/23)

 

 

 

      

Ending

Account Value

(09/30/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

      

Beginning

Account Value

(04/01/23)

 

 

 

      

Ending

Account Value

(09/30/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

      

Annualized

Expense

Ratio

 

 

 

  $       1,000.00          $          961.80          $          0.88          $       1,000.00          $       1,024.10          $        0.91          0.18

 

(a)

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

Portfolio Information

 

SECTOR ALLOCATION

 

 

 
Sector  

Percent of   

Total Investments(a)

 

 

 

Consumer Discretionary

    19.6%  

Financials

    19.2     

Industrials

    16.2     

Real Estate

    11.8     

Information Technology

    7.6     

Health Care

    7.4     

Energy

    4.7     

Materials

    4.5     

Communication Services

    3.8     

Consumer Staples

    3.7     

Utilities

    1.5     

 

 

TEN LARGEST HOLDINGS

 

 

 
Security  

Percent of   

Total Investments(a)

 

 

 

Meritage Homes Corp.

    0.9%  

Insight Enterprises, Inc.

    0.9     

Group 1 Automotive, Inc.

    0.8     

Blackstone Mortgage Trust, Inc., Class A

    0.8     

Lincoln National Corp.

    0.7     

Newell Brands, Inc.

    0.7     

Essential Properties Realty Trust, Inc.

    0.7     

John Bean Technologies Corp.

    0.7     

Advance Auto Parts, Inc.

    0.7     

Carpenter Technology Corp.

    0.7     

 

 

 

(a) 

Excludes money market funds.

 

 

 

F U N D    S U M M A R Y

    7  


About Fund Performance  

 

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

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

An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.

Disclosure of Expenses

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

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

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

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

 

 

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Schedule of Investments  (unaudited)

September 30, 2023

  

iShares® S&P 100 ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

 

Common Stocks

   
Aerospace & Defense — 1.5%            

Boeing Co. (The)(a)

    195,563     $     37,485,516  

General Dynamics Corp.

    78,028       17,241,847  

Lockheed Martin Corp.

    77,303       31,613,835  

RTX Corp.

    502,010       36,129,659  
   

 

 

 
      122,470,857  
Air Freight & Logistics — 0.7%            

FedEx Corp.

    79,807       21,142,471  

United Parcel Service, Inc., Class B

    249,460       38,883,330  
   

 

 

 
      60,025,801  
Automobiles — 3.2%            

Ford Motor Co.

    1,358,412       16,871,477  

General Motors Co.

    473,492       15,611,031  

Tesla, Inc.(a)

    952,402       238,310,029  
   

 

 

 
      270,792,537  
Banks — 3.7%            

Bank of America Corp.

    2,384,422       65,285,475  

Citigroup, Inc.

    664,176       27,317,559  

JPMorgan Chase & Co.

    1,002,312       145,355,286  

U.S. Bancorp

    536,205       17,726,937  

Wells Fargo & Co.

    1,261,920       51,562,051  
   

 

 

 
      307,247,308  
Beverages — 1.9%            

Coca-Cola Co. (The)

    1,342,325       75,143,353  

PepsiCo, Inc.

    474,784       80,447,401  
   

 

 

 
      155,590,754  
Biotechnology — 2.1%            

AbbVie, Inc.

    608,766       90,742,660  

Amgen, Inc.

    184,488       49,582,995  

Gilead Sciences, Inc.

    429,753       32,205,690  
   

 

 

 
      172,531,345  
Broadline Retail — 4.7%            

Amazon.com, Inc.(a)

    3,131,572       398,085,433  
   

 

 

 
Capital Markets — 1.7%            

Bank of New York Mellon Corp. (The)

    269,473       11,493,023  

BlackRock, Inc.(b)

    48,405       31,293,348  

Charles Schwab Corp. (The)

    512,864       28,156,234  

Goldman Sachs Group, Inc. (The)

    113,703       36,790,880  

Morgan Stanley

    440,049       35,938,802  
   

 

 

 
      143,672,287  
Chemicals — 0.9%            

Dow, Inc.

    242,771       12,517,273  

Linde PLC

    168,292       62,663,526  
   

 

 

 
      75,180,799  
Communications Equipment — 0.9%            

Cisco Systems, Inc.

    1,405,494       75,559,357  
   

 

 

 
Consumer Finance — 0.5%            

American Express Co.

    200,665       29,937,211  

Capital One Financial Corp.

    131,450       12,757,223  
   

 

 

 
      42,694,434  
Consumer Staples Distribution & Retail — 2.2%  

Costco Wholesale Corp.

    152,843       86,350,181  

Target Corp.

    159,497       17,635,583  

Walmart, Inc.

    492,243       78,724,423  
   

 

 

 
      182,710,187  
Security   Shares     Value  

 

 
Diversified Telecommunication Services — 1.0%  

AT&T Inc.

    2,465,700     $     37,034,814  

Verizon Communications, Inc.

    1,449,980       46,993,852  
   

 

 

 
      84,028,666  
Electric Utilities — 1.2%            

Duke Energy Corp.

    266,363       23,509,198  

Exelon Corp.

    342,448       12,941,110  

NextEra Energy, Inc.

    697,982       39,987,389  

Southern Co. (The)

    376,132       24,343,263  
   

 

 

 
      100,780,960  
Electrical Equipment — 0.2%            

Emerson Electric Co.

    197,492       19,071,802  
   

 

 

 
Entertainment — 1.3%            

Netflix, Inc.(a)

    152,843       57,713,517  

Walt Disney Co. (The)(a)

    631,094       51,150,168  
   

 

 

 
      108,863,685  
Financial Services — 5.8%            

Berkshire Hathaway, Inc., Class B(a)

    628,990       220,335,197  

Mastercard, Inc., Class A

    286,963       113,611,521  

PayPal Holdings, Inc.(a)

    378,480       22,125,941  

Visa, Inc., Class A

    554,182       127,467,402  
   

 

 

 
      483,540,061  
Food Products — 0.5%            

Kraft Heinz Co. (The)

    275,691       9,274,245  

Mondelez International, Inc., Class A

    469,211       32,563,244  
   

 

 

 
      41,837,489  
Ground Transportation — 0.5%            

Union Pacific Corp.

    210,201       42,803,230  
   

 

 

 
Health Care Equipment & Supplies — 1.1%            

Abbott Laboratories

    598,529       57,967,534  

Medtronic PLC

    459,118       35,976,486  
   

 

 

 
      93,944,020  
Health Care Providers & Services — 2.3%            

CVS Health Corp.

    442,991       30,929,631  

UnitedHealth Group, Inc.

    319,483       161,080,134  
   

 

 

 
      192,009,765  
Hotels, Restaurants & Leisure — 1.7%            

Booking Holdings, Inc.(a)

    12,309       37,960,341  

McDonald’s Corp.

    251,350       66,215,644  

Starbucks Corp.

    395,050       36,056,213  
   

 

 

 
      140,232,198  
Household Products — 1.7%            

Colgate-Palmolive Co.

    284,856       20,256,110  

Procter & Gamble Co. (The)

    813,038       118,589,723  
   

 

 

 
      138,845,833  
Industrial Conglomerates — 1.2%            

3M Co.

    190,647       17,848,372  

General Electric Co.

    375,384       41,498,701  

Honeywell International, Inc.

    229,001       42,305,645  
   

 

 

 
      101,652,718  
Insurance — 0.3%            

American International Group, Inc.

    244,958       14,844,455  

MetLife, Inc.

    218,579       13,750,805  
   

 

 

 
      28,595,260  
Interactive Media & Services — 8.6%            

Alphabet, Inc., Class A(a)

    2,046,300       267,778,818  

 

 

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

  9


Schedule of Investments  (unaudited)  (continued)

September 30, 2023

  

iShares® S&P 100 ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

 
Interactive Media & Services (continued)            

Alphabet, Inc., Class C, NVS(a)

    1,740,672     $     229,507,603  

Meta Platforms, Inc., Class A(a)

    766,571       230,132,280  
   

 

 

 
      727,418,701  
IT Services — 1.3%            

Accenture PLC, Class A

    217,563       66,815,773  

International Business Machines Corp.

    314,206       44,083,102  
   

 

 

 
      110,898,875  
Life Sciences Tools & Services — 1.5%            

Danaher Corp.

    226,647       56,231,121  

Thermo Fisher Scientific, Inc.

    133,114       67,378,313  
   

 

 

 
      123,609,434  
Machinery — 1.0%            

Caterpillar, Inc.

    175,948       48,033,804  

Deere & Co.

    94,044       35,490,325  
   

 

 

 
      83,524,129  
Media — 0.9%            

Charter Communications, Inc., Class A(a)(c)

    35,025       15,404,696  

Comcast Corp., Class A

    1,419,507       62,940,940  
   

 

 

 
      78,345,636  
Oil, Gas & Consumable Fuels — 3.7%            

Chevron Corp.

    611,946       103,186,334  

ConocoPhillips

    413,017       49,479,437  

Exxon Mobil Corp.

    1,380,706       162,343,412  
   

 

 

 
      315,009,183  
Pharmaceuticals — 5.6%            

Bristol-Myers Squibb Co.

    720,534       41,819,793  

Eli Lilly & Co.

    275,026       147,724,716  

Johnson & Johnson

    830,527       129,354,580  

Merck & Co., Inc.

    875,195       90,101,325  

Pfizer, Inc.

    1,947,299       64,591,908  
   

 

 

 
      473,592,322  
Retail REITs — 0.1%            

Simon Property Group, Inc.

    113,042       12,211,927  
   

 

 

 
Semiconductors & Semiconductor Equipment — 8.2%  

Advanced Micro Devices, Inc.(a)

    557,248       57,296,239  

Broadcom, Inc.

    142,335       118,220,604  

Intel Corp.

    1,444,446       51,350,055  

NVIDIA Corp.

    851,908       370,571,461  

QUALCOMM, Inc.

    384,909       42,747,994  

Texas Instruments, Inc.

    313,159       49,795,413  
   

 

 

 
      689,981,766  
Software — 12.1%            

Adobe, Inc.(a)

    157,207       80,159,849  
Security   Shares     Value  

 

 
Software (continued)            

Microsoft Corp.

    2,562,537     $ 809,121,058  

Oracle Corp.

    542,968       57,511,171  

Salesforce, Inc.(a)

    335,935       68,120,899  
   

 

 

 
      1,014,912,977  
Specialized REITs — 0.3%            

American Tower Corp.

    160,777       26,439,778  
   

 

 

 
Specialty Retail — 1.7%            

Home Depot, Inc. (The)

    346,756       104,775,793  

Lowe’s Cos., Inc.

    202,105       42,005,503  
   

 

 

 
      146,781,296  
Technology Hardware, Storage & Peripherals — 10.3%  

Apple Inc.

    5,068,733       867,817,777  
   

 

 

 
Textiles, Apparel & Luxury Goods — 0.5%  

NIKE, Inc., Class B

    422,529       40,402,223  
   

 

 

 
Tobacco — 0.9%            

Altria Group, Inc.

    612,050       25,736,703  

Philip Morris International, Inc.

    535,406       49,567,887  
   

 

 

 
      75,304,590  
Wireless Telecommunication Services — 0.3%  

T-Mobile U.S., Inc.(a)

    178,504       24,999,485  
   

 

 

 

Total Long-Term Investments — 99.8%

   

    (Cost: $7,107,191,880)

      8,394,016,885  
   

 

 

 

Short-Term Securities

   
Money Market Funds — 0.7%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 5.54%(b)(d)(e)

    15,716,314       15,722,601  

BlackRock Cash Funds: Treasury, SL Agency Shares, 5.31%(b)(d)

    47,409,678       47,409,678  
   

 

 

 

Total Short-Term Securities — 0.7%

   

    (Cost: $63,132,082)

      63,132,279  
   

 

 

 

Total Investments — 100.5%

   

    (Cost: $7,170,323,962)

      8,457,149,164  

Liabilities in Excess of Other Assets — (0.5)%

 

    (42,868,390
   

 

 

 

Net Assets — 100.0%

    $   8,414,280,774  
   

 

 

 

 

(a)

Non-income producing security.

(b)

Affiliate of the Fund.

(c)

All or a portion of this security is on loan.

(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.

 

 

10  

2 0 2 3   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, 2023

  

iShares® S&P 100 ETF

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended September 30, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

                   
       Affiliated Issuer  

Value at

03/31/23

   

Purchases

at Cost

   

Proceeds

from Sale

    

Net

Realized

Gain (Loss)

    

Change in

Unrealized

Appreciation

(Depreciation)

   

Value at

09/30/23

   

Shares

Held at

09/30/23

    Income    

Capital

Gain

Distributions

from Underlying

Funds

   

     

 
 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $     $ 15,721,538 (a)    $       $ 866       $ 197     $ 15,722,601       15,716,314     $ 11,979 (b)    $    
 

BlackRock Cash Funds: Treasury, SL Agency Shares

    14,929,868         32,479,810 (a)                          47,409,678       47,409,678       510,398          
 

BlackRock, Inc.

    33,178,984       3,410,680       (4,325,674      (61,967      (908,675     31,293,348       48,405       507,480          
          

 

 

    

 

 

   

 

 

     

 

 

   

 

 

   
            $ (61,101     $ (908,478   $   94,425,627       $ 1,029,857     $    
          

 

 

    

 

 

   

 

 

     

 

 

   

 

 

   
 

 

(a) Represents net amount purchased (sold).

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

 

  

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

         
Description   

Number of

Contracts

    

Expiration

Date

    

Notional

Amount

(000)

    

Value/

Unrealized

Appreciation

(Depreciation)

 

Long Contracts
S&P 500 E-Mini Index

     93        12/15/23      $   20,114      $ (796,468
           

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

               
     

Commodity

Contracts

    

Credit

Contracts

    

Equity

Contracts

    

Foreign

Currency

Exchange

Contracts

    

Interest

Rate

Contracts

    

Other

Contracts

     Total  

Liabilities — Derivative Financial Instruments

                    

Futures contracts

                    

Unrealized depreciation on futures contracts(a)

   $      $      $   796,468      $      $      $      $   796,468  

 

(a) Net cumulative unrealized appreciation (depreciation) on futures contracts, if any, are reported in the Schedule of Investments. In the Statement 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, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

     

Commodity

Contracts

    

Credit

Contracts

    

Equity

Contracts

    

Foreign

Currency

Exchange

Contracts

    

Interest

Rate

Contracts

    

Other

Contracts

     Total  

Net Realized Gain (Loss) from:

                    

Futures contracts

     $          —      $      $ 2,351,967      $      $      $      $ 2,351,967  

Net Change in Unrealized Appreciation (Depreciation) on:

                    

Futures contracts

     $          —      $      $   (1,809,626)      $      $      $      $   (1,809,626)  

 

 

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

    11  


Schedule of Investments  (unaudited)  (continued)

September 30, 2023

  

iShares® S&P 100 ETF

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

Futures contracts

  

Average notional value of contracts — long

   $ 21,838,444  

 

 

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

Fair Value Hierarchy as of Period End

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

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

 

 

 
     Level 1        Level 2        Level 3        Total  

 

 

Assets

                 

Investments

                 

Long-Term Investments

                 

Common Stocks

   $         8,394,016,885        $        $        $         8,394,016,885  

Short-Term Securities

                 

Money Market Funds

     63,132,279                            63,132,279  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 8,457,149,164        $        $        $ 8,457,149,164  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(a)

                 

Liabilities

                 

Equity Contracts

   $ (796,468      $                     —        $                     —        $ (796,468
  

 

 

      

 

 

      

 

 

      

 

 

 

 

(a) 

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

 

See notes to financial statements.

 

 

12  

2 0 2 3   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, 2023

  

iShares® S&P 500 Growth ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

 

Common Stocks

   

Aerospace & Defense — 1.0%

   

Axon Enterprise, Inc.(a)

    120,923     $ 24,062,468  

General Dynamics Corp.

    205,648       45,442,039  

L3Harris Technologies, Inc.

    162,564       28,305,644  

Lockheed Martin Corp.

    272,670       111,511,123  

Northrop Grumman Corp.

    175,460       77,235,737  

TransDigm Group, Inc.(a)

    44,341       37,385,227  
   

 

 

 
      323,942,238  
Air Freight & Logistics — 0.1%            

CH Robinson Worldwide, Inc.

    106,512       9,173,878  

Expeditors International of Washington, Inc.

    254,230       29,142,385  
   

 

 

 
      38,316,263  
Automobiles — 3.5%            

Tesla, Inc.(a)

    4,731,557       1,183,930,192  
   

 

 

 
Beverages — 2.3%            

Brown-Forman Corp., Class B, NVS

    172,095       9,928,160  

Coca-Cola Co. (The)

    4,334,656       242,654,043  

Constellation Brands, Inc., Class A

    154,781       38,901,109  

Keurig Dr Pepper, Inc.

    864,668       27,297,569  

Monster Beverage Corp.(a)(b)

    1,274,377       67,478,262  

PepsiCo, Inc.

    2,358,743       399,665,414  
   

 

 

 
      785,924,557  
Biotechnology — 3.8%            

AbbVie, Inc.

    3,024,369       450,812,443  

Amgen, Inc.

    916,541       246,329,559  

Biogen, Inc.(a)

    116,694       29,991,525  

Gilead Sciences, Inc.

    2,135,018       159,998,249  

Incyte Corp.(a)

    318,639       18,407,775  

Moderna, Inc.(a)(b)

    567,179       58,583,919  

Regeneron Pharmaceuticals, Inc.(a)

    182,900       150,519,384  

Vertex Pharmaceuticals, Inc.(a)

    442,240       153,784,538  
   

 

 

 
      1,268,427,392  
Broadline Retail — 2.7%            

Amazon.com, Inc.(a)

    7,156,557       909,741,526  

Etsy, Inc.(a)(b)

    123,371       7,967,299  
   

 

 

 
      917,708,825  
Building Products — 0.0%            

Masco Corp.

    274,185       14,655,188  
   

 

 

 
Capital Markets — 1.3%            

Ameriprise Financial, Inc.

    175,811       57,961,371  

Blackstone, Inc., Class A, NVS

    1,216,143       130,297,561  

Cboe Global Markets, Inc.

    121,140       18,923,279  

Charles Schwab Corp. (The)

    1,503,271       82,529,578  

FactSet Research Systems, Inc.

    39,182       17,132,721  

MarketAxess Holdings, Inc.

    31,525       6,735,001  

Moody’s Corp.

    126,880       40,115,650  

MSCI, Inc., Class A

    77,101       39,558,981  

Nasdaq, Inc.

    370,806       18,017,464  

Raymond James Financial, Inc.

    323,094       32,448,330  
   

 

 

 
      443,719,936  
Chemicals — 1.3%            

Air Products & Chemicals, Inc.

    380,648       107,875,643  

Albemarle Corp.(b)

    200,583       34,107,134  

CF Industries Holdings, Inc.

    331,670       28,437,386  

Corteva, Inc.

    837,964       42,870,238  

FMC Corp.

    215,092       14,404,711  
Security   Shares     Value  

 

 

Chemicals (continued)

   

Linde PLC

    510,012     $ 189,902,968  

Mosaic Co. (The)

    567,093       20,188,511  
   

 

 

 
      437,786,591  
Commercial Services & Supplies — 0.6%            

Cintas Corp.

    87,311       41,997,464  

Copart, Inc.(a)

    1,488,910       64,157,132  

Republic Services, Inc.

    193,723       27,607,465  

Rollins, Inc.

    482,610       18,015,831  

Waste Management, Inc.

    372,558       56,792,741  
   

 

 

 
      208,570,633  
Communications Equipment — 0.4%            

Arista Networks, Inc.(a)(b)

    429,652       79,025,892  

Motorola Solutions, Inc.

    157,187       42,792,589  
   

 

 

 
      121,818,481  
Construction & Engineering — 0.1%            

Quanta Services, Inc.

    248,794       46,541,894  
   

 

 

 
Construction Materials — 0.1%            

Vulcan Materials Co.

    134,587       27,189,266  
   

 

 

 
Consumer Finance — 0.3%            

American Express Co.

    488,485       72,877,077  

Discover Financial Services

    249,204       21,588,543  
   

 

 

 
      94,465,620  
Consumer Staples Distribution & Retail — 1.1%  

Costco Wholesale Corp.

    501,154       283,131,964  

Dollar General Corp.

    375,835       39,763,343  

Dollar Tree, Inc.(a)(b)

    359,151       38,231,624  
   

 

 

 
      361,126,931  
Distributors — 0.1%            

Genuine Parts Co.

    173,696       25,078,229  

Pool Corp.

    42,031       14,967,239  
   

 

 

 
      40,045,468  
Electric Utilities — 0.2%            

NRG Energy, Inc.

    185,485       7,144,882  

PG&E Corp.(a)

    3,583,145       57,796,129  
   

 

 

 
      64,941,011  
Electrical Equipment — 0.1%            

AMETEK, Inc.(b)

    198,120       29,274,211  
   

 

 

 
Electronic Equipment, Instruments & Components — 0.4%  

Amphenol Corp., Class A

    1,022,011       85,838,704  

CDW Corp.

    145,165       29,288,490  

Keysight Technologies, Inc.(a)

    165,041       21,836,575  
   

 

 

 
      136,963,769  
Energy Equipment & Services — 0.2%            

Schlumberger NV

    1,290,640       75,244,312  
   

 

 

 
Entertainment — 0.3%            

Activision Blizzard, Inc.

    723,238       67,716,774  

Electronic Arts, Inc.

    286,492       34,493,637  
   

 

 

 
      102,210,411  
Financial Services — 3.9%            

Fiserv, Inc.(a)

    720,747       81,415,581  

FleetCor Technologies, Inc.(a)(b)

    67,104       17,134,335  

Jack Henry & Associates, Inc.

    124,820       18,865,295  

Mastercard, Inc., Class A

    1,425,640       564,425,133  

Visa, Inc., Class A

    2,753,197       633,262,842  
   

 

 

 
      1,315,103,186  

 

 

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

  13


Schedule of Investments  (unaudited)  (continued)

September 30, 2023

  

iShares® S&P 500 Growth ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

 

Food Products — 0.9%

   

Archer-Daniels-Midland Co.

    451,557     $ 34,056,429  

Bunge Ltd.

    106,112       11,486,624  

Campbell Soup Co.

    198,369       8,148,999  

General Mills, Inc.

    680,943       43,573,543  

Hershey Co. (The)

    257,598       51,540,208  

Hormel Foods Corp.

    356,277       13,549,214  

Kellanova

    244,028       14,522,106  

Lamb Weston Holdings, Inc.

    249,164       23,037,703  

McCormick & Co., Inc., NVS

    218,598       16,534,753  

Mondelez International, Inc., Class A

    1,258,766       87,358,360  
   

 

 

 
          303,807,939  
Gas Utilities — 0.0%            

Atmos Energy Corp.

    155,672       16,490,335  
   

 

 

 
Ground Transportation — 0.7%            

CSX Corp.

    1,649,034       50,707,796  

JB Hunt Transport Services, Inc.

    140,345       26,457,839  

Old Dominion Freight Line, Inc.(b)

    153,516       62,809,536  

Union Pacific Corp.

    522,145       106,324,386  
   

 

 

 
      246,299,557  
Health Care Equipment & Supplies — 1.4%  

Abbott Laboratories

    1,546,219       149,751,310  

Boston Scientific Corp.(a)

    1,329,724       70,209,427  

Dexcom, Inc.(a)

    663,993       61,950,547  

Hologic, Inc.(a)

    421,048       29,220,731  

IDEXX Laboratories, Inc.(a)

    69,511       30,395,075  

Insulet Corp.(a)(b)

    120,276       19,182,819  

Intuitive Surgical, Inc.(a)

    294,999       86,225,258  

ResMed, Inc.

    136,550       20,191,649  
   

 

 

 
      467,126,816  
Health Care Providers & Services — 3.7%            

Cigna Group (The)

    248,505       71,089,825  

Elevance Health, Inc.

    403,778       175,813,017  

HCA Healthcare, Inc.

    186,036       45,761,135  

Humana, Inc.

    135,880       66,108,338  

McKesson Corp.

    106,213       46,186,723  

Molina Healthcare, Inc.(a)

    99,980       32,782,442  

Quest Diagnostics, Inc.

    126,787       15,450,264  

UnitedHealth Group, Inc.

    1,587,203       800,251,881  
   

 

 

 
      1,253,443,625  
Hotels, Restaurants & Leisure — 1.6%            

Airbnb, Inc., Class A(a)(b)

    291,646       40,016,747  

Chipotle Mexican Grill, Inc.(a)

    47,272       86,594,268  

Domino’s Pizza, Inc.

    27,934       10,581,120  

Hilton Worldwide Holdings, Inc.

    215,777       32,405,390  

Marriott International, Inc., Class A

    218,601       42,968,212  

McDonald’s Corp.

    774,207       203,957,092  

Starbucks Corp.

    1,000,936       91,355,429  

Yum! Brands, Inc.

    307,286       38,392,313  
   

 

 

 
      546,270,571  
Household Durables — 0.1%            

DR Horton, Inc.

    261,693       28,124,147  
   

 

 

 
Household Products — 1.3%            

Clorox Co. (The)

    95,271       12,486,217  

Colgate-Palmolive Co.

    778,830       55,382,601  

Kimberly-Clark Corp.

    277,483       33,533,821  

Procter & Gamble Co. (The)

    2,221,557       324,036,304  
   

 

 

 
      425,438,943  
Independent Power and Renewable Electricity Producers — 0.0%  

AES Corp. (The)

    682,078       10,367,586  
   

 

 

 
Security   Shares     Value  

 

 

Insurance — 1.8%

   

Aon PLC, Class A

    229,420     $ 74,382,552  

Arch Capital Group Ltd.(a)(b)

    639,049       50,938,596  

Arthur J. Gallagher & Co.

    236,416       53,886,299  

Brown & Brown, Inc.

    237,699       16,600,898  

Chubb Ltd.

    401,158       83,513,073  

Everest Group Ltd.

    42,727       15,880,344  

Globe Life, Inc.

    104,628       11,376,203  

Marsh & McLennan Cos., Inc.

    541,683       103,082,275  

Principal Financial Group, Inc.

    233,177       16,805,066  

Progressive Corp. (The)

    1,002,957       139,711,910  

Travelers Cos., Inc. (The)

    211,319       34,510,506  

W R Berkley Corp.

    346,219       21,981,444  
   

 

 

 
      622,669,166  
Interactive Media & Services — 7.3%            

Alphabet, Inc., Class A(a)

    10,166,067       1,330,331,528  

Alphabet, Inc., Class C, NVS(a)

    8,647,700       1,140,199,245  
   

 

 

 
      2,470,530,773  
IT Services — 0.7%            

Accenture PLC, Class A

    529,619       162,651,291  

EPAM Systems, Inc.(a)

    67,634       17,293,337  

Gartner, Inc.(a)

    134,934       46,364,672  

VeriSign, Inc.(a)

    75,437       15,278,256  
   

 

 

 
      241,587,556  
Life Sciences Tools & Services — 2.2%            

Agilent Technologies, Inc.

    304,287       34,025,372  

Bio-Techne Corp.

    129,005       8,781,370  

Danaher Corp.

    1,125,982       279,356,134  

IQVIA Holdings, Inc.(a)(b)

    150,093       29,530,798  

Mettler-Toledo International, Inc.(a)

    24,436       27,076,799  

Thermo Fisher Scientific, Inc.

    661,316       334,738,320  

Waters Corp.(a)(b)

    101,531       27,840,815  
   

 

 

 
      741,349,608  
Machinery — 1.3%            

Caterpillar, Inc.

    524,471       143,180,583  

Cummins, Inc.

    124,015       28,332,467  

Deere & Co.

    467,210       176,315,710  

IDEX Corp.

    73,666       15,324,001  

Illinois Tool Works, Inc.

    240,389       55,363,990  

Snap-on, Inc.

    51,812       13,215,169  
   

 

 

 
      431,731,920  
Metals & Mining — 0.6%            

Freeport-McMoRan, Inc.

    2,456,505       91,603,071  

Nucor Corp.

    426,179       66,633,087  

Steel Dynamics, Inc.

    267,656       28,698,076  
   

 

 

 
          186,934,234  
Multi-Utilities — 0.2%            

Sempra

    646,983       44,014,253  

WEC Energy Group, Inc.

    280,785       22,617,232  
   

 

 

 
      66,631,485  
Oil, Gas & Consumable Fuels — 7.0%            

APA Corp.

    527,446       21,678,031  

Chevron Corp.

    3,040,157       512,631,273  

ConocoPhillips

    2,051,873       245,814,385  

Coterra Energy, Inc.

    1,298,943       35,136,408  

Devon Energy Corp.

    1,097,056       52,329,571  

Diamondback Energy, Inc.

    306,058       47,402,263  

EOG Resources, Inc.

    997,690       126,467,184  

EQT Corp.

    618,337       25,092,116  

Exxon Mobil Corp.

    6,859,385       806,526,488  

 

 

14  

2 0 2 3   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, 2023

  

iShares® S&P 500 Growth ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

 

Oil, Gas & Consumable Fuels (continued)

   

Hess Corp.

    473,514     $ 72,447,642  

Marathon Oil Corp.

    1,041,172       27,851,351  

Marathon Petroleum Corp.

    328,617       49,732,897  

Occidental Petroleum Corp.

    1,136,911       73,762,786  

ONEOK, Inc.

    997,635       63,279,988  

Pioneer Natural Resources Co.

    399,483       91,701,323  

Targa Resources Corp.

    384,557       32,964,226  

Williams Cos., Inc. (The)

    2,084,312       70,220,471  
   

 

 

 
      2,355,038,403  
Personal Care Products — 0.2%            

Kenvue, Inc.

    2,952,775       59,291,722  
   

 

 

 
Pharmaceuticals — 6.2%            

Bristol-Myers Squibb Co.

    3,579,634       207,761,957  

Eli Lilly & Co.

    1,366,341       733,902,741  

Johnson & Johnson

    2,558,170       398,434,978  

Merck & Co., Inc.

    4,347,988       447,625,365  

Pfizer, Inc.

    9,674,230       320,894,209  
   

 

 

 
          2,108,619,250  
Professional Services — 0.9%            

Automatic Data Processing, Inc.

    705,932       169,833,120  

Broadridge Financial Solutions, Inc.

    97,755       17,503,033  

Equifax, Inc.

    102,984       18,864,609  

Leidos Holdings, Inc.

    154,213       14,212,270  

Paychex, Inc.

    313,327       36,136,003  

Paycom Software, Inc.

    83,686       21,697,269  

Verisk Analytics, Inc.

    114,183       26,974,592  
   

 

 

 
          305,220,896  
Real Estate Management & Development — 0.2%  

CoStar Group, Inc.(a)(b)

    699,363       53,774,021  
   

 

 

 
Semiconductors & Semiconductor Equipment — 10.4%  

Advanced Micro Devices, Inc.(a)

    1,494,946       153,710,348  

Analog Devices, Inc.

    403,809       70,702,918  

Applied Materials, Inc.

    1,438,888       199,214,044  

Broadcom, Inc.

    424,276       352,395,160  

Enphase Energy, Inc.(a)(b)

    234,389       28,161,838  

First Solar, Inc.(a)

    183,637       29,673,903  

KLA Corp.

    234,267       107,448,902  

Lam Research Corp.

    228,401       143,154,895  

Microchip Technology, Inc.

    455,904       35,583,307  

Monolithic Power Systems, Inc.

    81,687       37,739,394  

NVIDIA Corp.

    4,232,291       1,841,004,262  

NXP Semiconductors NV

    260,451       52,069,364  

ON Semiconductor Corp.(a)(b)

    739,415       68,728,624  

QUALCOMM, Inc.

    1,912,241       212,373,486  

SolarEdge Technologies, Inc.(a)(b)

    97,328       12,604,949  

Teradyne, Inc.(b)

    128,626       12,921,768  

Texas Instruments, Inc.

    980,143       155,852,538  
   

 

 

 
      3,513,339,700  
Software — 10.5%            

Adobe, Inc.(a)

    367,071       187,169,503  

Autodesk, Inc.(a)

    201,090       41,607,532  

Cadence Design Systems, Inc.(a)

    465,705       109,114,681  

Fair Isaac Corp.(a)

    42,507       36,918,605  

Fortinet, Inc.(a)(b)

    1,116,895       65,539,399  

Gen Digital, Inc.

    514,447       9,095,423  

Intuit, Inc.

    254,335       129,949,925  

Microsoft Corp.

    7,383,828       2,331,443,691  

Oracle Corp.(b)

    1,591,513       168,573,057  

Palo Alto Networks, Inc.(a)(b)

    524,075       122,864,143  
Security   Shares     Value  

 

 

Software (continued)

   

PTC, Inc.(a)(b)

    204,269     $ 28,940,832  

ServiceNow, Inc.(a)

    349,551       195,385,027  

Synopsys, Inc.(a)

    260,721       119,663,117  

Tyler Technologies, Inc.(a)

    33,887       13,085,126  
   

 

 

 
      3,559,350,061  
Specialized REITs — 0.7%            

American Tower Corp.

    423,337       69,617,769  

Extra Space Storage, Inc.

    180,503       21,945,555  

Iron Mountain, Inc.

    314,226       18,680,736  

Public Storage

    168,109       44,300,084  

SBA Communications Corp., Class A

    104,264       20,870,525  

VICI Properties, Inc.

    989,271       28,787,786  

Weyerhaeuser Co.

    711,681       21,820,139  
   

 

 

 
      226,022,594  
Specialty Retail — 2.3%            

AutoZone, Inc.(a)

    31,109       79,016,549  

Home Depot, Inc. (The)

    913,026       275,879,936  

Lowe’s Cos., Inc.

    692,804       143,992,384  

O’Reilly Automotive, Inc.(a)

    103,499       94,066,101  

TJX Cos., Inc. (The)

    1,260,284       112,014,042  

Tractor Supply Co.

    186,063       37,780,092  

Ulta Beauty, Inc.(a)

    85,605       34,194,917  
   

 

 

 
      776,944,021  
Technology Hardware, Storage & Peripherals — 12.8%  

Apple Inc.

    25,181,581       4,311,338,483  
   

 

 

 
Tobacco — 0.6%            

Altria Group, Inc.

    1,581,194       66,489,208  

Philip Morris International, Inc.

    1,436,351       132,977,375  
   

 

 

 
      199,466,583  
Trading Companies & Distributors — 0.2%  

Fastenal Co.

    481,104       26,287,523  

WW Grainger, Inc.

    76,200       52,718,208  
   

 

 

 
      79,005,731  
Wireless Telecommunication Services — 0.2%  

T-Mobile U.S., Inc.(a)

    603,137       84,469,337  
   

 

 

 

Total Long-Term Investments — 99.8%
(Cost: $25,078,370,854)

      33,728,591,438  
   

 

 

 

Short-Term Securities

   
Money Market Funds — 0.9%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 5.54%(c)(d)(e)

    145,103,696       145,161,737  

BlackRock Cash Funds: Treasury, SL Agency Shares, 5.31%(c)(d)

    153,222,760       153,222,760  
   

 

 

 

Total Short-Term Securities — 0.9%
(Cost: $298,334,664)

      298,384,497  
   

 

 

 

Total Investments — 100.7%
(Cost: $25,376,705,518)

      34,026,975,935  

Liabilities in Excess of Other Assets — (0.7)%

 

    (238,664,465
   

 

 

 

Net Assets — 100.0%

    $ 33,788,311,470  
   

 

 

 

 

(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 S   O F   I N V E S T M E N T S

  15


Schedule of Investments  (unaudited)  (continued)

September 30, 2023

  

iShares® S&P 500 Growth ETF

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended September 30, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

                   
       Affiliated Issuer  

Value at

03/31/23

   

Purchases

at Cost

   

Proceeds

from Sale

   

Net

Realized

Gain (Loss)

   

Change in

Unrealized

Appreciation

(Depreciation)

   

Value at

09/30/23

   

Shares

Held at

09/30/23

    Income    

Capital

Gain
Distributions

from Underlying
Funds

   

  

 
 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $   237,690,559       $       $  (92,574,916 )(a)    $ 20,983     $ 25,111     $   145,161,737       145,103,696     $   1,195,928 (b)    $    
 

BlackRock Cash Funds: Treasury, SL Agency Shares

    41,154,407       112,068,353 (a)                        153,222,760       153,222,760       1,284,199          
         

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   
          $ 20,983     $ 25,111     $ 298,384,497       $ 2,480,127     $    
         

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

  (a)

Represents net amount purchased (sold).

 
  (b)

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

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

         
Description   

Number of

Contracts

    

Expiration

Date

    

Notional

Amount

(000)

    

Value/

Unrealized

Appreciation

(Depreciation)

 

Long Contracts
S&P 500 E-Mini Index

     239        12/15/23      $ 51,690      $ (2,269,654
           

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

               
     

Commodity

Contracts

    

Credit

Contracts

    

Equity

Contracts

    

Foreign

Currency

Exchange

Contracts

    

Interest

Rate

Contracts

    

Other

Contracts

     Total  

Liabilities — Derivative Financial Instruments

                    

Futures contracts

                    

Unrealized depreciation on futures contracts(a)

   $      $      $   2,269,654      $      $      $      $   2,269,654  

 

  (a)

Net cumulative unrealized appreciation (depreciation) on futures contracts, if any, 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, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

               
     

Commodity

Contracts

    

Credit

Contracts

    

Equity

Contracts

    

Foreign

Currency

Exchange

Contracts

    

Interest

Rate

Contracts

    

Other

Contracts

     Total  

Net Realized Gain (Loss) from:

                    

Futures contracts

   $      $      $   6,943,310      $      $      $      $   6,943,310  

Net Change in Unrealized Appreciation (Depreciation) on:

                    

Futures contracts

   $      $      $   (4,810,946    $      $      $      $   (4,810,946

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

   

Futures contracts

 

Average notional value of contracts — long

  $ 58,833,500  

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

 

 

16  

2 0 2 3   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, 2023

  

iShares® S&P 500 Growth 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  

 

 

Assets

           

Investments

           

Long-Term Investments

           

Common Stocks

   $       33,728,591,438      $      $      $       33,728,591,438  

Short-Term Securities

           

Money Market Funds

     298,384,497                                —                                —        298,384,497  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 34,026,975,935      $      $      $ 34,026,975,935  
  

 

 

    

 

 

    

 

 

    

 

 

 

Derivative Financial Instruments(a)

           

Liabilities

           

Equity Contracts

   $ (2,269,654    $      $      $ (2,269,654
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(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 S  O F   I N V E S T M E N T S

    17  


Schedule of Investments  (unaudited)

September 30, 2023

  

iShares® S&P 500 Value ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

 

Aerospace & Defense — 2.2%

 

Boeing Co. (The)(a)

    835,220     $ 160,094,970  

General Dynamics Corp.

    156,756       34,638,373  

Howmet Aerospace, Inc.

    579,576       26,805,390  

Huntington Ingalls Industries, Inc.

    59,028       12,075,948  

L3Harris Technologies, Inc.

    139,298       24,254,568  

Lockheed Martin Corp.

    95,714       39,143,198  

Northrop Grumman Corp.

    58,659       25,821,105  

RTX Corp.

    2,144,004       154,303,968  

Textron, Inc.

    290,579       22,705,843  

TransDigm Group, Inc.(a)

    43,049       36,295,903  
   

 

 

 
      536,139,266  
Air Freight & Logistics — 1.1%  

CH Robinson Worldwide, Inc.

    79,045       6,808,146  

FedEx Corp.

    340,841       90,295,597  

United Parcel Service, Inc., Class B

    1,065,401       166,064,054  
   

 

 

 
      263,167,797  
Automobile Components — 0.2%  

Aptiv PLC(a)

    416,545       41,067,172  

BorgWarner, Inc.

    347,647       14,034,509  
   

 

 

 
      55,101,681  
Automobiles — 0.6%            

Ford Motor Co.

    5,790,995       71,924,158  

General Motors Co.

    2,026,737       66,821,519  
   

 

 

 
      138,745,677  
Banks — 6.6%  

Bank of America Corp.

    10,183,499             278,824,203  

Citigroup, Inc.

    2,836,599       116,669,317  

Citizens Financial Group, Inc.

    699,009       18,733,441  

Comerica, Inc.

    195,803       8,135,615  

Fifth Third Bancorp

    1,002,964       25,405,078  

Huntington Bancshares, Inc.

    2,130,849       22,160,830  

JPMorgan Chase & Co.

    4,280,723       620,790,449  

KeyCorp.

    1,369,249       14,733,119  

M&T Bank Corp.

    244,365       30,899,954  

PNC Financial Services Group, Inc. (The)

    586,638       72,021,547  

Regions Financial Corp.

    1,382,249       23,774,683  

Truist Financial Corp.

    1,962,028       56,133,621  

U.S. Bancorp

    2,293,442       75,821,193  

Wells Fargo & Co.

    5,389,463       220,213,458  

Zions Bancorp N.A.

    218,182       7,612,370  
   

 

 

 
      1,591,928,878  
Beverages — 0.8%  

Brown-Forman Corp., Class B, NVS

    119,657       6,903,012  

Coca-Cola Co. (The)

    2,006,503       112,324,038  

Constellation Brands, Inc., Class A

    104,875       26,358,234  

Keurig Dr Pepper, Inc.

    744,475       23,503,076  

Molson Coors Beverage Co., Class B

    274,559       17,459,207  
   

 

 

 
      186,547,567  
Biotechnology — 0.1%  

Biogen, Inc.(a)(b)

    113,063       29,058,322  
   

 

 

 
Broadline Retail — 4.0%  

Amazon.com, Inc.(a)

    7,222,214       918,087,844  

eBay, Inc.

    782,971       34,521,191  

Etsy, Inc.(a)(b)

    76,902       4,966,331  
   

 

 

 
      957,575,366  
Building Products — 0.9%  

A O Smith Corp.

    182,049       12,038,900  
Security   Shares     Value  

Building Products (continued)

 

Allegion PLC

    129,687     $ 13,513,386  

Carrier Global Corp.

    1,233,843       68,108,134  

Johnson Controls International PLC

    1,002,125       53,323,071  

Masco Corp.

    95,272       5,092,288  

Trane Technologies PLC

    336,435       68,266,026  
   

 

 

 
      220,341,805  
Capital Markets — 4.7%  

Bank of New York Mellon Corp. (The)

    1,147,162       48,926,459  

BlackRock, Inc.(c)

    206,731       133,649,524  

Cboe Global Markets, Inc.

    51,050       7,974,521  

Charles Schwab Corp. (The)

    898,047       49,302,780  

CME Group, Inc., Class A

    529,913       106,099,181  

FactSet Research Systems, Inc.

    22,292       9,747,400  

Franklin Resources, Inc.

    420,887       10,345,403  

Goldman Sachs Group, Inc. (The)

    485,612       157,129,475  

Intercontinental Exchange, Inc.

    843,067       92,754,231  

Invesco Ltd.

    662,804       9,623,914  

MarketAxess Holdings, Inc.

    27,992       5,980,211  

Moody’s Corp.

    123,202       38,952,776  

Morgan Stanley

    1,879,375       153,488,556  

MSCI, Inc., Class A

    50,333       25,824,856  

Nasdaq, Inc.

    177,899       8,644,112  

Northern Trust Corp.

    305,773       21,245,108  

S&P Global, Inc.

    479,321       175,148,687  

State Street Corp.

    468,647       31,380,603  

T Rowe Price Group, Inc.

    331,272       34,740,495  
   

 

 

 
            1,120,958,292  
Chemicals — 2.2%  

Celanese Corp., Class A

    147,645       18,532,400  

Corteva, Inc.

    322,263       16,486,975  

Dow, Inc.

    1,035,644       53,397,805  

DuPont de Nemours, Inc.

    676,206       50,438,206  

Eastman Chemical Co.

    174,215       13,365,775  

Ecolab, Inc.

    373,676       63,300,714  

International Flavors & Fragrances, Inc.

    375,201       25,577,452  

Linde PLC

    280,314       104,374,918  

LyondellBasell Industries NV, Class A

    379,059       35,896,887  

PPG Industries, Inc.

    346,916       45,029,697  

Sherwin-Williams Co. (The)

    348,483       88,880,589  
   

 

 

 
      515,281,418  
Commercial Services & Supplies — 0.3%  

Cintas Corp.

    52,353       25,182,317  

Republic Services, Inc.

    136,118       19,398,176  

Waste Management, Inc.

    222,394       33,901,741  
   

 

 

 
      78,482,234  
Communications Equipment — 1.6%  

Cisco Systems, Inc.

    6,002,645       322,702,195  

F5, Inc.(a)

    87,775       14,144,063  

Juniper Networks, Inc.

    470,982       13,088,590  

Motorola Solutions, Inc.

    110,516       30,086,876  
   

 

 

 
      380,021,724  
Construction Materials — 0.2%            

Martin Marietta Materials, Inc.

    91,039       37,369,689  

Vulcan Materials Co.

    80,645       16,291,903  
   

 

 

 
      53,661,592  
Consumer Finance — 0.6%  

American Express Co.

    437,074       65,207,070  

Capital One Financial Corp.

    561,871       54,529,581  

 

 

18  

2 0 2 3   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, 2023

  

iShares® S&P 500 Value ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Consumer Finance (continued)

 

Discover Financial Services

    155,087     $ 13,435,187  

Synchrony Financial

    612,550       18,725,653  
   

 

 

 
      151,897,491  
Consumer Staples Distribution & Retail — 2.7%  

Costco Wholesale Corp.

    221,941             125,387,787  

Kroger Co. (The)

    972,674       43,527,162  

Sysco Corp.

    744,040       49,143,842  

Target Corp.

    679,887       75,175,106  

Walgreens Boots Alliance, Inc.

    1,057,922       23,528,185  

Walmart, Inc.

    2,102,299       336,220,679  
   

 

 

 
      652,982,761  
Containers & Packaging — 0.5%  

Amcor PLC

    2,165,250       19,833,690  

Avery Dennison Corp.

    118,053       21,564,741  

Ball Corp.

    465,021       23,148,745  

International Paper Co.

    511,948       18,158,796  

Packaging Corp. of America

    132,674       20,372,093  

Sealed Air Corp.

    214,399       7,045,151  

Westrock Co.

    376,301       13,471,576  
   

 

 

 
      123,594,792  
Distributors — 0.2%            

Genuine Parts Co.

    57,668       8,326,106  

LKQ Corp.

    391,944       19,405,147  

Pool Corp.

    21,547       7,672,887  
   

 

 

 
      35,404,140  
Diversified Telecommunication Services — 1.5%  

AT&T Inc.

    10,530,625       158,169,987  

Verizon Communications, Inc.

    6,192,638       200,703,398  
   

 

 

 
      358,873,385  
Electric Utilities — 3.3%            

Alliant Energy Corp.

    373,235       18,083,236  

American Electric Power Co., Inc.

    758,865       57,081,825  

Constellation Energy Corp.

    473,712       51,672,505  

Duke Energy Corp.

    1,135,269       100,198,842  

Edison International

    564,593       35,733,091  

Entergy Corp.

    311,479       28,811,808  

Evergy, Inc.

    337,393       17,105,825  

Eversource Energy

    514,211       29,901,370  

Exelon Corp.

    1,465,978       55,399,309  

FirstEnergy Corp.

    758,186       25,914,797  

NextEra Energy, Inc.

    2,980,973       170,779,943  

NRG Energy, Inc.

    178,091       6,860,065  

Pinnacle West Capital Corp.

    167,377       12,332,337  

PPL Corp.

    1,087,266       25,615,987  

Southern Co. (The)

    1,606,398       103,966,079  

Xcel Energy, Inc.

    811,650       46,442,613  
   

 

 

 
      785,899,632  
Electrical Equipment — 1.2%            

AMETEK, Inc.(b)

    170,142       25,140,182  

Eaton Corp. PLC

    587,735       125,352,121  

Emerson Electric Co.

    841,831       81,295,620  

Generac Holdings, Inc.(a)

    92,316       10,058,751  

Rockwell Automation, Inc.

    169,191       48,366,631  
   

 

 

 
      290,213,305  
Electronic Equipment, Instruments & Components — 0.8%  

CDW Corp.

    73,005       14,729,489  

Corning, Inc.

    1,134,515       34,568,672  

Keysight Technologies, Inc.(a)

    120,957       16,003,821  

TE Connectivity Ltd.

    462,439       57,125,090  
Security   Shares     Value  

Electronic Equipment, Instruments & Components (continued)

 

Teledyne Technologies, Inc.(a)(b)

    69,342     $ 28,331,754  

Trimble, Inc.(a)

    366,840       19,758,002  

Zebra Technologies Corp., Class A(a)(b)

    75,223       17,792,496  
   

 

 

 
      188,309,324  
Energy Equipment & Services — 0.7%            

Baker Hughes Co., Class A

    1,487,241       52,529,352  

Halliburton Co.

    1,323,577       53,604,869  

Schlumberger NV

    983,915       57,362,244  
   

 

 

 
      163,496,465  
Entertainment — 2.5%            

Activision Blizzard, Inc.

    432,060       40,453,778  

Electronic Arts, Inc.

    116,759       14,057,784  

Live Nation Entertainment, Inc.(a)(b)

    209,839       17,425,031  

Netflix, Inc.(a)

    652,765             246,484,064  

Take-Two Interactive Software, Inc.(a)

    232,313       32,614,422  

Walt Disney Co. (The)(a)

    2,695,302       218,454,227  

Warner Bros Discovery, Inc., Class A(a)(b)

    3,267,189       35,481,672  
   

 

 

 
      604,970,978  
Financial Services — 4.9%            

Berkshire Hathaway, Inc., Class B(a)

    2,686,321       941,018,247  

Fidelity National Information Services, Inc.

    872,204       48,206,715  

Fiserv, Inc.(a)

    277,974       31,399,943  

FleetCor Technologies, Inc.(a)

    51,518       13,154,606  

Global Payments, Inc.

    382,977       44,191,716  

PayPal Holdings, Inc.(a)

    1,617,431       94,555,016  
   

 

 

 
      1,172,526,243  
Food Products — 1.1%            

Archer-Daniels-Midland Co.

    402,059       30,323,290  

Bunge Ltd.

    130,126       14,086,139  

Campbell Soup Co.

    120,202       4,937,898  

Conagra Brands, Inc.

    703,770       19,297,373  

General Mills, Inc.

    276,534       17,695,411  

Hormel Foods Corp.

    118,180       4,494,385  

J M Smucker Co. (The)

    151,123       18,574,528  

Kellanova

    175,566       10,447,933  

Kraft Heinz Co. (The)

    1,176,048       39,562,255  

McCormick & Co., Inc., NVS

    181,687       13,742,805  

Mondelez International, Inc., Class A

    921,805       63,973,267  

Tyson Foods, Inc., Class A

    419,638       21,187,522  
   

 

 

 
      258,322,806  
Gas Utilities — 0.0%            

Atmos Energy Corp.

    84,159       8,914,963  
   

 

 

 
Ground Transportation — 0.9%  

CSX Corp.

    1,536,790       47,256,292  

Norfolk Southern Corp.

    334,398       65,852,998  

Union Pacific Corp.

    448,871       91,403,602  
   

 

 

 
      204,512,892  
Health Care Equipment & Supplies — 4.0%  

Abbott Laboratories

    1,226,985       118,833,497  

Align Technology, Inc.(a)

    104,845       32,011,275  

Baxter International, Inc.

    747,953       28,227,746  

Becton Dickinson & Co.

    427,337       110,479,435  

Boston Scientific Corp.(a)(b)

    1,013,710       53,523,888  

Cooper Cos., Inc. (The)

    73,142       23,259,887  

DENTSPLY SIRONA, Inc.

    311,216       10,631,139  

Edwards Lifesciences Corp.(a)(b)

    895,473       62,038,369  

GE HealthCare Technologies, Inc.(b)

    576,188       39,203,832  

IDEXX Laboratories, Inc.(a)

    62,477       27,319,318  

Intuitive Surgical, Inc.(a)

    263,952       77,150,530  

 

 

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

    19  


Schedule of Investments  (unaudited)  (continued)

September 30, 2023

  

iShares® S&P 500 Value ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Health Care Equipment & Supplies (continued)

 

Medtronic PLC

    1,960,820     $ 153,649,855  

ResMed, Inc.

    100,040       14,792,915  

STERIS PLC

    145,315       31,885,017  

Stryker Corp.

    497,885       136,057,034  

Teleflex, Inc.

    69,216       13,594,715  

Zimmer Biomet Holdings, Inc.

    307,205       34,474,545  
   

 

 

 
      967,132,997  
Health Care Providers & Services — 2.1%  

Cardinal Health, Inc.

    375,031       32,560,191  

Cencora, Inc.

    245,566       44,194,513  

Centene Corp.(a)(b)

    797,610       54,939,377  

Cigna Group (The)

    222,352       63,608,237  

CVS Health Corp.

    1,891,946       132,095,670  

DaVita, Inc.(a)(b)

    79,135       7,480,632  

HCA Healthcare, Inc.

    136,235       33,511,085  

Henry Schein, Inc.(a)(b)

    193,241       14,348,144  

Humana, Inc.

    65,614       31,922,523  

Laboratory Corp. of America Holdings

    130,510       26,239,036  

McKesson Corp.

    107,305       46,661,579  

Quest Diagnostics, Inc.

    56,492       6,884,115  

Universal Health Services, Inc., Class B

    91,970       11,563,388  
   

 

 

 
      506,008,490  
Health Care REITs — 0.4%            

Healthpeak Properties, Inc.

    807,042       14,817,291  

Ventas, Inc.

    591,159       24,905,529  

Welltower, Inc.

    764,099       62,594,990  
   

 

 

 
      102,317,810  
Hotel & Resort REITs — 0.1%            

Host Hotels & Resorts, Inc.

    1,053,127       16,923,751  
   

 

 

 
Hotels, Restaurants & Leisure — 2.8%  

Airbnb, Inc., Class A(a)(b)

    376,821       51,703,609  

Booking Holdings, Inc.(a)

    52,575             162,138,671  

Caesars Entertainment, Inc.(a)

    316,003       14,646,739  

Carnival Corp.(a)(b)

    1,489,358       20,433,992  

Darden Restaurants, Inc.

    178,566       25,574,222  

Domino’s Pizza, Inc.

    27,927       10,578,468  

Expedia Group, Inc.(a)(b)

    202,026       20,822,820  

Hilton Worldwide Holdings, Inc.

    199,910       30,022,484  

Las Vegas Sands Corp.

    482,053       22,097,310  

Marriott International, Inc., Class A

    180,652       35,508,957  

McDonald’s Corp.

    407,924       107,463,499  

MGM Resorts International

    415,461       15,272,346  

Norwegian Cruise Line Holdings Ltd.(a)

    620,974       10,233,652  

Royal Caribbean Cruises Ltd.(a)

    346,619       31,937,475  

Starbucks Corp.

    826,727       75,455,373  

Wynn Resorts Ltd.

    143,334       13,245,495  

Yum! Brands, Inc.

    149,281       18,651,168  
   

 

 

 
      665,786,280  
Household Durables — 0.7%            

DR Horton, Inc.

    225,311       24,214,173  

Garmin Ltd.

    225,697       23,743,324  

Lennar Corp., Class A

    371,976       41,746,867  

Mohawk Industries, Inc.(a)

    77,816       6,677,391  

NVR, Inc.(a)(b)

    4,796       28,599,987  

PulteGroup, Inc.

    322,080       23,850,024  

Whirlpool Corp.

    80,907       10,817,266  
   

 

 

 
      159,649,032  
Household Products — 1.4%            

Church & Dwight Co., Inc.

    362,415       33,208,086  

Clorox Co. (The)

    100,212       13,133,785  
Security   Shares     Value  

Household Products (continued)

   

Colgate-Palmolive Co.

    547,656     $ 38,943,818  

Kimberly-Clark Corp.

    258,728       31,267,279  

Procter & Gamble Co. (The)

    1,562,562       227,915,293  
   

 

 

 
      344,468,261  
Independent Power and Renewable Electricity Producers — 0.0%  

AES Corp. (The)

    408,722       6,212,574  
   

 

 

 
Industrial Conglomerates — 1.8%            

3M Co.

    813,096       76,122,047  

General Electric Co.

    1,603,203       177,234,092  

Honeywell International, Inc.

    978,028       180,680,893  
   

 

 

 
      434,037,032  
Industrial REITs — 0.6%            

Prologis, Inc.

    1,360,868       152,702,998  
   

 

 

 
Insurance — 2.6%            

Aflac, Inc.

    796,310       61,116,792  

Allstate Corp. (The)

    385,304       42,926,719  

American International Group, Inc.

    1,048,644       63,547,826  

Aon PLC, Class A

    101,426       32,884,338  

Arthur J. Gallagher & Co.

    114,637       26,129,211  

Assurant, Inc.

    78,764       11,308,935  

Brown & Brown, Inc.

    140,951       9,844,018  

Chubb Ltd.

    260,159       54,159,901  

Cincinnati Financial Corp.

    231,052       23,634,309  

Everest Group Ltd.

    26,542       9,864,865  

Globe Life, Inc.

    37,682       4,097,164  

Hartford Financial Services Group, Inc. (The)

    449,877       31,900,778  

Loews Corp.

    273,683       17,326,871  

Marsh & McLennan Cos., Inc.

    261,737       49,808,551  

MetLife, Inc.

    930,505       58,538,070  

Principal Financial Group, Inc.

    127,743       9,206,438  

Prudential Financial, Inc.

    534,707       50,738,347  

Travelers Cos., Inc. (The)

    155,705       25,428,184  

Willis Towers Watson PLC

    154,401       32,263,633  
   

 

 

 
      614,724,950  
Interactive Media & Services — 4.2%  

Match Group, Inc.(a)(b)

    411,736       16,129,758  

Meta Platforms, Inc., Class A(a)

    3,273,911       982,860,821  
   

 

 

 
      998,990,579  
IT Services — 1.8%            

Accenture PLC, Class A

    473,879             145,532,980  

Akamai Technologies, Inc.(a)(b)

    224,513       23,919,615  

Cognizant Technology Solutions Corp., Class A

    743,936       50,394,225  

DXC Technology Co.(a)

    303,664       6,325,321  

EPAM Systems, Inc.(a)

    27,637       7,066,504  

International Business Machines Corp.

    1,341,931       188,272,919  

VeriSign, Inc.(a)

    67,594       13,689,813  
   

 

 

 
      435,201,377  
Leisure Products — 0.1%            

Hasbro, Inc.

    193,248       12,781,423  
   

 

 

 
Life Sciences Tools & Services — 0.8%  

Agilent Technologies, Inc.

    173,655       19,418,102  

Bio-Rad Laboratories, Inc., Class A(a)(b)

    30,908       11,078,973  

Bio-Techne Corp.

    121,567       8,275,066  

Charles River Laboratories
International, Inc.(a)(b)

    75,925       14,879,782  

Illumina, Inc.(a)(b)

    232,916       31,974,708  

IQVIA Holdings, Inc.(a)(b)

    139,927       27,530,637  

Mettler-Toledo International, Inc.(a)(b)

    11,245       12,460,247  

 

 

20  

2 0 2 3   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, 2023

  

iShares® S&P 500 Value ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Life Sciences Tools & Services (continued)

 

Revvity, Inc.

    181,896     $ 20,135,887  

West Pharmaceutical Services, Inc.

    108,780       40,815,344  
   

 

 

 
      186,568,746  
Machinery — 2.4%            

Caterpillar, Inc.

    300,580       82,058,340  

Cummins, Inc.

    102,315       23,374,885  

Dover Corp.

    206,037       28,744,222  

Fortive Corp.

    518,313       38,438,092  

IDEX Corp.

    48,328       10,053,191  

Illinois Tool Works, Inc.

    198,616       45,743,251  

Ingersoll Rand, Inc.(b)

    597,428       38,068,112  

Nordson Corp.

    80,120       17,880,380  

Otis Worldwide Corp.

    606,509       48,708,738  

PACCAR, Inc.

    770,103       65,474,157  

Parker-Hannifin Corp.

    188,983       73,612,658  

Pentair PLC

    243,566       15,770,898  

Snap-on, Inc.

    33,221       8,473,348  

Stanley Black & Decker, Inc.

    225,913       18,881,809  

Westinghouse Air Brake Technologies Corp.

    263,230       27,973,452  

Xylem, Inc.

    354,233       32,245,830  
   

 

 

 
      575,501,363  
Media — 1.7%            

Charter Communications, Inc., Class A(a)(b)

    149,919       65,937,375  

Comcast Corp., Class A

    6,062,495             268,811,028  

Fox Corp., Class A, NVS

    375,460       11,714,352  

Fox Corp., Class B

    195,253       5,638,907  

Interpublic Group of Cos., Inc. (The)

    564,855       16,188,744  

News Corp., Class A, NVS

    558,037       11,194,222  

News Corp., Class B

    171,001       3,568,791  

Omnicom Group, Inc.

    289,698       21,576,707  

Paramount Global, Class B, NVS

    713,693       9,206,640  
   

 

 

 
          413,836,766  
Metals & Mining — 0.2%            

Newmont Corp.

    1,170,657       43,255,776  
   

 

 

 
Multi-Utilities — 1.3%            

Ameren Corp.

    387,036       28,961,904  

CenterPoint Energy, Inc.

    930,888       24,994,343  

CMS Energy Corp.

    429,497       22,810,586  

Consolidated Edison, Inc.

    508,080       43,456,082  

Dominion Energy, Inc.

    1,232,584       55,059,527  

DTE Energy Co.

    303,702       30,151,535  

NiSource, Inc.

    609,319       15,037,993  

Public Service Enterprise Group, Inc.

    735,201       41,840,289  

Sempra

    371,766       25,291,241  

WEC Energy Group, Inc.

    222,846       17,950,245  
   

 

 

 
      305,553,745  
Office REITs — 0.2%            

Alexandria Real Estate Equities, Inc.

    228,502       22,873,050  

Boston Properties, Inc.

    211,452       12,577,165  
   

 

 

 
      35,450,215  
Oil, Gas & Consumable Fuels — 1.0%            

Kinder Morgan, Inc.

    2,855,456       47,343,460  

Marathon Petroleum Corp.

    306,269       46,350,750  

Phillips 66

    655,918       78,808,548  

Valero Energy Corp.

    520,173       73,713,716  
   

 

 

 
      246,216,474  
Passenger Airlines — 0.4%            

Alaska Air Group, Inc.(a)

    187,416       6,949,385  

American Airlines Group, Inc.(a)

    965,643       12,369,887  
Security   Shares     Value  

Passenger Airlines (continued)

   

Delta Air Lines, Inc.

    947,319     $ 35,050,803  

Southwest Airlines Co.

    874,708       23,678,345  

United Airlines Holdings, Inc.(a)(b)

    484,266       20,484,452  
   

 

 

 
      98,532,872  
Personal Care Products — 0.2%            

Estee Lauder Cos., Inc. (The), Class A

    341,551       49,371,197  
   

 

 

 
Pharmaceuticals — 1.5%            

Catalent, Inc.(a)

    265,192       12,074,192  

Johnson & Johnson

    1,347,881             209,932,465  

Organon & Co.

    375,444       6,517,708  

Viatris, Inc.

    1,764,335       17,396,343  

Zoetis, Inc., Class A

    678,056       117,968,183  
   

 

 

 
      363,888,891  
Professional Services — 0.6%  

Broadridge Financial Solutions, Inc.

    90,557       16,214,231  

Ceridian HCM Holding, Inc.(a)(b)

    229,463       15,569,065  

Equifax, Inc.

    91,949       16,843,218  

Jacobs Solutions, Inc.

    186,155       25,410,157  

Leidos Holdings, Inc.

    69,819       6,434,519  

Paychex, Inc.

    202,725       23,380,274  

Robert Half, Inc.(b)

    158,049       11,581,831  

Verisk Analytics, Inc.

    115,333       27,246,268  
   

 

 

 
      142,679,563  
Real Estate Management & Development — 0.1%  

CBRE Group, Inc., Class A(a)

    455,700       33,658,002  
   

 

 

 
Residential REITs — 0.7%            

AvalonBay Communities, Inc.

    209,193       35,926,806  

Camden Property Trust

    157,498       14,896,161  

Equity Residential

    507,126       29,773,367  

Essex Property Trust, Inc.

    94,298       19,999,663  

Invitation Homes, Inc.

    845,250       26,785,973  

Mid-America Apartment Communities, Inc.

    171,868       22,110,818  

UDR, Inc.

    448,629       16,002,596  
   

 

 

 
      165,495,384  
Retail REITs — 0.6%            

Federal Realty Investment Trust

    108,539       9,836,890  

Kimco Realty Corp.

    909,123       15,991,473  

Realty Income Corp.

    1,044,059       52,140,306  

Regency Centers Corp.

    240,532       14,297,222  

Simon Property Group, Inc.

    481,959       52,066,031  
   

 

 

 
      144,331,922  
Semiconductors & Semiconductor Equipment — 3.8%  

Advanced Micro Devices, Inc.(a)

    1,094,762       112,563,429  

Analog Devices, Inc.

    391,458       68,540,381  

Broadcom, Inc.

    243,157       201,961,341  

Intel Corp.

    6,169,011       219,308,341  

Microchip Technology, Inc.

    410,288       32,022,979  

Micron Technology, Inc.

    1,613,403       109,759,806  

NXP Semiconductors NV

    155,421       31,071,766  

Qorvo, Inc.(a)

    144,910       13,834,558  

Skyworks Solutions, Inc.

    235,392       23,207,297  

Teradyne, Inc.

    115,548       11,607,952  

Texas Instruments, Inc.

    494,858       78,687,371  
   

 

 

 
      902,565,221  
Software — 9.5%            

Adobe, Inc.(a)

    355,844       181,444,856  

ANSYS, Inc.(a)

    127,845       38,040,280  

Autodesk, Inc.(a)(b)

    141,626       29,303,836  

Gen Digital, Inc.

    386,840       6,839,331  

 

 

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

    21  


Schedule of Investments  (unaudited)  (continued)

September 30, 2023

  

iShares® S&P 500 Value ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

 

Software (continued)

   

Intuit, Inc.

    193,891     $ 99,066,667  

Microsoft Corp.

    4,596,563       1,451,364,767  

Oracle Corp.

    950,762       100,704,711  

Roper Technologies, Inc.

    157,188       76,123,005  

Salesforce, Inc.(a)

    1,434,722       290,932,927  

Tyler Technologies, Inc.(a)(b)

    32,777       12,656,511  
   

 

 

 
      2,286,476,891  
Specialized REITs — 1.5%            

American Tower Corp.

    322,729       53,072,784  

Crown Castle, Inc.

    638,818       58,790,421  

Digital Realty Trust, Inc.

    445,897       53,962,455  

Equinix, Inc.

    137,823       100,095,332  

Extra Space Storage, Inc.

    155,889       18,952,985  

Iron Mountain, Inc.

    160,439       9,538,099  

Public Storage

    88,224       23,248,788  

SBA Communications Corp., Class A

    69,948       14,001,491  

VICI Properties, Inc.

    643,334       18,721,019  

Weyerhaeuser Co.

    460,735       14,126,135  
   

 

 

 
      364,509,509  
Specialty Retail — 1.8%            

Bath & Body Works, Inc.

    338,274       11,433,661  

Best Buy Co., Inc.

    285,030       19,801,034  

CarMax, Inc.(a)(b)

    233,090       16,486,456  

Home Depot, Inc. (The)

    696,042             210,316,051  

Lowe’s Cos., Inc.

    267,580       55,613,827  

Ross Stores, Inc.

    501,793       56,677,519  

TJX Cos., Inc. (The)

    609,040       54,131,475  
   

 

 

 
      424,460,023  
Technology Hardware, Storage & Peripherals — 0.5%  

Hewlett Packard Enterprise Co.

    1,899,728       32,998,276  

HP, Inc.

    1,277,653       32,835,682  

NetApp, Inc.

    309,382       23,475,906  

Seagate Technology Holdings PLC

    283,507       18,697,287  

Western Digital Corp.(a)

    469,964       21,444,457  
   

 

 

 
      129,451,608  
Textiles, Apparel & Luxury Goods — 0.8%  

NIKE, Inc., Class B

    1,804,559       172,551,932  

Ralph Lauren Corp., Class A

    59,776       6,939,396  

Tapestry, Inc.

    341,915       9,830,056  

VF Corp.

    490,571       8,668,389  
   

 

 

 
      197,989,773  
Security   Shares     Value  

 

 

Tobacco — 0.6%

   

Altria Group, Inc.

    1,254,738     $ 52,761,733  

Philip Morris International, Inc.

    1,051,853       97,380,551  
   

 

 

 
      150,142,284  
Trading Companies & Distributors — 0.3%  

Fastenal Co.

    429,866       23,487,878  

United Rentals, Inc.

    100,582       44,715,740  
   

 

 

 
      68,203,618  
Water Utilities — 0.2%            

American Water Works Co., Inc.

    286,751       35,508,376  
   

 

 

 
Wireless Telecommunication Services — 0.1%  

T-Mobile U.S., Inc.(a)

    243,723       34,133,406  
   

 

 

 

Total Long-Term Investments — 99.8%
(Cost: $23,364,412,244)

 

    23,941,649,975  
   

 

 

 
Short-Term Securities            

Money Market Funds — 1.2%

   

BlackRock Cash Funds: Institutional, SL Agency Shares, 5.54%(c)(d)(e)

    126,722,233       126,772,922  

BlackRock Cash Funds: Treasury, SL Agency Shares, 5.31%(c)(d)

    168,132,024       168,132,024  
   

 

 

 

Total Short-Term Securities — 1.2%
(Cost: $294,843,617)

 

    294,904,946  
   

 

 

 

Total Investments — 101.0%
(Cost: $23,659,255,861)

 

        24,236,554,921  

Liabilities in Excess of Other Assets — (1.0)%

 

    (238,326,196
   

 

 

 

Net Assets — 100.0%

    $ 23,998,228,725  
   

 

 

 

 

(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.

 

 

22  

2 0 2 3   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, 2023

  

iShares® S&P 500 Value ETF

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended September 30, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

        Affiliated Issuer  

Value at

03/31/23

   

Purchases

at Cost

   

Proceeds

from Sale

   

Net

Realized

Gain (Loss)

   

Change in

Unrealized

Appreciation

(Depreciation)

   

Value at

09/30/23

   

Shares

Held at

09/30/23

    Income    

Capital

Gain

Distributions

from Underlying

Funds

   

      

 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $ 210,104,994     $     $ (83,345,144 )(a)    $           9,739     $ 3,333     $ 126,772,922       126,722,233     $ 694,602 (b)    $    
 

BlackRock Cash Funds: Treasury, SL Agency Shares

    39,913,921       128,218,103 (a)                        168,132,024       168,132,024       1,070,765          
 

BlackRock, Inc.

    152,128,447       6,266,535       (20,457,742     (1,051,273     (3,236,443     133,649,524       206,731       2,220,535          
         

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   
          $ (1,041,534   $ (3,233,110   $  428,554,470       $ 3,985,902     $    
         

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

  (a)

Represents net amount purchased (sold).

 
  (b)

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

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

         
Description   

Number of

Contracts

      

Expiration

Date

      

Notional

Amount

(000)

      

Value/

Unrealized

Appreciation

(Depreciation)

 

Long Contracts
S&P 500 E-Mini Index

     228          12/15/23        $ 49,311        $ (2,043,062
                 

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

               
     

Commodity

Contracts

    

Credit

Contracts

    

Equity

Contracts

    

Foreign

Currency

Exchange

Contracts

    

Interest

Rate

Contracts

    

Other

Contracts

     Total  

Liabilities — Derivative Financial Instruments

                    

Futures contracts
Unrealized depreciation on futures contracts(a)

   $      $      $  2,043,062      $      $      $      $  2,043,062  

 

  (a) 

Net cumulative unrealized appreciation (depreciation) on futures contracts, if any, are reported in the Schedule of Investments. In the Statement 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, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

               
     

Commodity

Contracts

    

Credit

Contracts

    

Equity

Contracts

    

Foreign

Currency

Exchange

Contracts

    

Interest

Rate

Contracts

    

Other

Contracts

     Total  

Net Realized Gain (Loss) from:

                    

Futures contracts

   $      $      $   8,324,454      $      $      $      $   8,324,454  

Net Change in Unrealized Appreciation (Depreciation) on:

                    

Futures contracts

   $      $      $ (5,213,991    $      $      $      $ (5,213,991

 

 

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

    23  


Schedule of Investments  (unaudited)  (continued)

September 30, 2023

  

iShares® S&P 500 Value ETF

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts
Average notional value of contracts — long

  $56,858,544 

 

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

Fair Value Hierarchy as of Period End

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

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

 

 

 
     Level 1        Level 2        Level 3        Total  

 

 

Assets

                 

Investments

                 

Long-Term Investments

                 

Common Stocks

   $ 23,941,649,975        $                     —        $                     —        $     23,941,649,975  

Short-Term Securities

                 

Money Market Funds

     294,904,946                            294,904,946  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $     24,236,554,921        $        $        $ 24,236,554,921  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(a)

                 

Liabilities

                 

Equity Contracts

   $ (2,043,062      $        $        $ (2,043,062
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a)

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

 

See notes to financial statements.

 

 

24  

2 0 2 3   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, 2023

  

iShares® S&P Small-Cap 600 Value ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Common Stocks            
Aerospace & Defense — 1.1%            

AAR Corp.(a)

    418,997     $ 24,942,891  

Kaman Corp.

    355,775       6,990,979  

Mercury Systems, Inc.(a)

    270,269       10,024,277  

Moog, Inc., Class A

    141,162       15,945,660  

National Presto Industries, Inc.

    65,759       4,764,897  

Triumph Group, Inc.(a)

    966,997       7,407,197  
   

 

 

 
      70,075,901  
Air Freight & Logistics — 0.3%            

Hub Group, Inc., Class A(a)

    217,797       17,105,776  
   

 

 

 
Automobile Components — 1.7%            

American Axle & Manufacturing Holdings, Inc.(a)

    1,480,750       10,750,245  

Dana, Inc.

    1,619,286       23,754,926  

Gentherm, Inc.(a)(b)

    162,539       8,819,366  

LCI Industries

    159,609       18,741,289  

Patrick Industries, Inc.

    263,191       19,755,116  

Phinia, Inc.(b)

    592,324       15,868,360  

Standard Motor Products, Inc.

    235,777       7,926,823  
   

 

 

 
          105,616,125  
Automobiles — 0.2%            

Winnebago Industries, Inc.

    205,322       12,206,393  
   

 

 

 
Banks — 7.5%            

Ameris Bancorp

    320,935       12,320,695  

Atlantic Union Bankshares Corp.

    578,714       16,655,389  

Axos Financial, Inc.(a)(b)

    305,275       11,557,712  

Banc of California, Inc.

    667,068       8,258,302  

Bank of Hawaii Corp.

    245,161       12,182,050  

BankUnited, Inc.

    938,029       21,293,258  

Berkshire Hills Bancorp, Inc.

    224,289       4,496,994  

Brookline Bancorp, Inc.

    1,115,715       10,164,164  

Capitol Federal Financial, Inc.

    1,602,128       7,642,151  

Cathay General Bancorp

    318,911       11,085,346  

Central Pacific Financial Corp.

    306,136       5,106,348  

Community Bank System, Inc.

    292,809       12,359,468  

Customers Bancorp, Inc.(a)

    173,020       5,960,539  

Eagle Bancorp, Inc.

    378,652       8,122,085  

FB Financial Corp.

    215,253       6,104,575  

First Bancorp/Southern Pines NC

    210,291       5,917,589  

First Commonwealth Financial Corp.

    588,506       7,185,658  

First Financial Bancorp

    538,740       10,559,304  

First Hawaiian, Inc.

    771,455       13,924,763  

Fulton Financial Corp.

    922,812       11,175,253  

Hilltop Holdings, Inc.

    582,460       16,518,566  

Hope Bancorp, Inc.

    1,525,028       13,496,498  

Independent Bank Corp.

    266,940       13,104,085  

Independent Bank Group, Inc.

    452,770       17,907,054  

National Bank Holdings Corp., Class A

    157,255       4,679,909  

Northfield Bancorp, Inc.

    209,340       1,978,263  

Northwest Bancshares, Inc.

    772,438       7,902,041  

Pacific Premier Bancorp, Inc.

    1,208,869       26,304,989  

PacWest Bancorp(b)

    1,491,539       11,798,074  

Pathward Financial, Inc.

    89,914       4,144,136  

Provident Financial Services, Inc.

    956,232       14,620,787  

Renasant Corp.

    707,628       18,532,777  

S&T Bancorp, Inc.

    151,737       4,109,038  

Seacoast Banking Corp. of Florida

    492,665       10,818,923  

Simmons First National Corp., Class A

    1,591,581       26,993,214  

Southside Bancshares, Inc.

    155,730       4,469,451  

Tompkins Financial Corp.

    52,061       2,550,468  

Triumph Financial, Inc.(a)(b)

    103,770       6,723,258  
Security   Shares     Value  
Banks (continued)            

TrustCo Bank Corp.

    84,007     $ 2,292,551  

Trustmark Corp.

    241,570       5,249,316  

United Community Banks, Inc.

    528,105       13,419,148  

Veritex Holdings, Inc.

    354,773       6,368,175  

Washington Federal, Inc.

    386,494       9,901,976  

WSFS Financial Corp.

    769,647       28,092,116  
   

 

 

 
      474,046,456  
Beverages — 0.1%            

National Beverage Corp.(a)

    94,998       4,466,806  
   

 

 

 
Biotechnology — 0.5%            

Avid Bioservices, Inc.(a)(b)

    247,352       2,335,003  

Ironwood Pharmaceuticals, Inc., Class A(a)(b)

    639,730       6,160,600  

Myriad Genetics, Inc.(a)(b)

    1,032,085       16,554,644  

Vericel Corp.(a)(b)

    258,741       8,672,998  
   

 

 

 
      33,723,245  
Building Products — 2.3%            

American Woodmark Corp.(a)(b)

    206,348       15,601,972  

Apogee Enterprises, Inc.

    119,440       5,623,235  

AZZ, Inc.

    314,743       14,345,986  

Gibraltar Industries, Inc.(a)

    383,506       25,890,490  

Hayward Holdings, Inc.(a)

    1,584,996       22,348,444  

Insteel Industries, Inc.

    133,480       4,332,761  

Masterbrand, Inc.(a)

    1,609,493       19,555,340  

Quanex Building Products Corp.(b)

    178,008       5,014,485  

Resideo Technologies, Inc.(a)

    1,861,222       29,407,308  
   

 

 

 
          142,120,021  
Capital Markets — 0.8%            

Artisan Partners Asset Management, Inc., Class A .

    269,482       10,084,016  

B Riley Financial, Inc.

    105,600       4,328,544  

Brightsphere Investment Group, Inc.

    197,671       3,832,841  

Donnelley Financial Solutions, Inc.(a)

    157,347       8,855,489  

Moelis & Co., Class A

    270,412       12,203,694  

Virtus Investment Partners, Inc.

    41,983       8,480,146  

WisdomTree, Inc.

    647,486       4,532,402  
   

 

 

 
      52,317,132  

Chemicals — 1.7%

   

AdvanSix, Inc.

    342,166       10,634,519  

HB Fuller Co.

    244,422       16,769,794  

Koppers Holdings, Inc.

    263,996       10,441,042  

Mativ Holdings, Inc.

    687,561       9,804,620  

Minerals Technologies, Inc.

    410,230       22,464,195  

Sensient Technologies Corp.

    532,577       31,145,103  

Stepan Co.

    93,686       7,023,639  
   

 

 

 
      108,282,912  
Commercial Services & Supplies — 3.4%            

ABM Industries, Inc.

    833,796       33,360,178  

Brady Corp., Class A, NVS

    202,152       11,102,188  

CoreCivic, Inc.(a)

    1,430,354       16,091,483  

Deluxe Corp.

    551,773       10,422,992  

Enviri Corp.(a)

    1,005,342       7,258,569  

GEO Group, Inc. (The)(a)

    1,587,367       12,984,662  

Healthcare Services Group, Inc.

    932,090       9,721,699  

HNI Corp.

    586,768       20,319,776  

Interface, Inc., Class A

    732,461       7,185,442  

Liquidity Services, Inc.(a)

    128,240       2,259,589  

Matthews International Corp., Class A

    383,861       14,936,032  

MillerKnoll, Inc.

    954,240       23,331,168  

OPENLANE, Inc.(a)(b)

    1,379,722       20,585,452  

Pitney Bowes, Inc.

    1,941,853       5,864,396  

 

 

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

    25  


Schedule of Investments  (unaudited)  (continued)

September 30, 2023

  

iShares® S&P Small-Cap 600 Value ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Commercial Services & Supplies (continued)        

UniFirst Corp.

    77,926     $ 12,702,717  

Viad Corp.(a)

    263,237       6,896,809  
   

 

 

 
      215,023,152  
Communications Equipment — 0.5%            

ADTRAN Holdings, Inc.

    279,131       2,297,248  

Viasat, Inc.(a)(b)

    938,140       17,318,065  

Viavi Solutions, Inc.(a)

    1,347,681       12,317,804  
   

 

 

 
      31,933,117  
Construction & Engineering — 1.0%            

Arcosa, Inc.

    208,901       15,019,982  

Dycom Industries, Inc.(a)(b)

    118,712       10,565,368  

Granite Construction, Inc.

    553,628       21,048,936  

MYR Group, Inc.(a)

    105,250       14,183,490  
   

 

 

 
      60,817,776  
Consumer Finance — 1.7%            

Bread Financial Holdings, Inc.

    497,094       17,000,615  

Encore Capital Group, Inc.(a)(b)

    296,611       14,166,142  

Enova International, Inc.(a)

    388,082       19,741,731  

EZCORP, Inc., Class A, NVS(a)(b)

    654,921       5,403,098  

Navient Corp.

    1,103,645       19,004,767  

PRA Group, Inc.(a)

    495,820       9,524,702  

PROG Holdings, Inc.(a)

    576,192       19,135,336  

World Acceptance Corp.(a)(b)

    42,881       5,448,460  
   

 

 

 
          109,424,851  
Consumer Staples Distribution & Retail — 0.9%        

Andersons, Inc. (The)

    221,884       11,429,245  

Chefs’ Warehouse, Inc. (The)(a)(b)

    170,636       3,614,071  

PriceSmart, Inc.

    324,849       24,178,511  

SpartanNash Co.

    436,265       9,597,830  

United Natural Foods, Inc.(a)

    740,138       10,465,551  
   

 

 

 
      59,285,208  
Containers & Packaging — 0.3%            

O-I Glass, Inc.(a)(b)

    1,055,479       17,658,164  
   

 

 

 
Diversified Consumer Services — 0.5%        

Frontdoor, Inc.(a)

    485,373       14,847,560  

Mister Car Wash, Inc.(a)(b)

    564,839       3,112,263  

Perdoceo Education Corp.

    305,257       5,219,894  

Strategic Education, Inc.

    119,575       8,998,019  
   

 

 

 
      32,177,736  
Diversified REITs — 1.5%            

Alexander & Baldwin, Inc.

    914,435       15,298,498  

American Assets Trust, Inc.

    611,282       11,889,435  

Armada Hoffler Properties, Inc.

    302,496       3,097,559  

Essential Properties Realty Trust, Inc.

    1,966,553       42,536,541  

Global Net Lease, Inc.

    2,449,717       23,541,780  
   

 

 

 
      96,363,813  
Diversified Telecommunication Services — 0.6%  

Cogent Communications Holdings, Inc.

    224,467       13,894,507  

Consolidated Communications Holdings, Inc.(a)(b)

    949,299       3,246,603  

Lumen Technologies, Inc.(a)

    12,706,048       18,042,588  
   

 

 

 
      35,183,698  
Electric Utilities — 0.2%            

Otter Tail Corp.

    204,895       15,555,628  
   

 

 

 
Electrical Equipment — 0.2%            

Powell Industries, Inc.

    115,364       9,563,676  

SunPower Corp.(a)(b)

    480,442       2,964,327  
   

 

 

 
      12,528,003  
Security   Shares     Value  
Electronic Equipment, Instruments & Components — 3.7%  

Arlo Technologies, Inc.(a)(b)

    592,225     $ 6,099,917  

Benchmark Electronics, Inc.

    451,254       10,947,422  

ePlus, Inc.(a)

    176,221       11,193,558  

Insight Enterprises, Inc.(a)(b)

    381,150       55,457,325  

Itron, Inc.(a)

    573,041       34,714,824  

Knowles Corp.(a)(b)

    1,148,824       17,014,083  

Methode Electronics, Inc.

    217,062       4,959,867  

OSI Systems, Inc.(a)

    95,396       11,260,544  

PC Connection, Inc.

    142,449       7,603,928  

Rogers Corp.(a)

    211,196       27,765,938  

Sanmina Corp.(a)

    389,539       21,144,177  

ScanSource, Inc.(a)

    314,664       9,537,466  

TTM Technologies, Inc.(a)

    1,309,152       16,861,878  
   

 

 

 
          234,560,927  
Energy Equipment & Services — 2.6%            

Archrock, Inc.

    1,736,013       21,873,764  

Bristow Group, Inc.(a)

    302,412       8,518,946  

Core Laboratories, Inc.(b)

    305,978       7,346,532  

Dril-Quip, Inc.(a)(b)

    202,188       5,695,636  

Helix Energy Solutions Group, Inc.(a)

    1,787,051       19,961,360  

Helmerich & Payne, Inc.

    526,392       22,192,687  

Liberty Energy, Inc., Class A

    1,368,192       25,338,916  

Nabors Industries Ltd.(a)

    36,040       4,437,965  

Oceaneering International, Inc.(a)

    356,358       9,165,528  

Oil States International, Inc.(a)

    805,222       6,739,708  

Patterson-UTI Energy, Inc.

    1,292,914       17,893,930  

ProPetro Holding Corp.(a)(b)

    1,092,730       11,615,720  

U.S. Silica Holdings, Inc.(a)

    407,591       5,722,577  
   

 

 

 
      166,503,269  
Entertainment — 0.6%            

Cinemark Holdings, Inc.(a)(b)

    1,364,586       25,040,153  

Madison Square Garden Sports Corp., Class A

    50,369       8,880,055  

Marcus Corp. (The)(b)

    309,046       4,790,213  
   

 

 

 
      38,710,421  
Financial Services — 1.7%            

EVERTEC, Inc.

    286,148       10,638,983  

Jackson Financial, Inc., Class A

    120,636       4,610,708  

NMI Holdings, Inc., Class A(a)

    509,391       13,799,402  

Payoneer Global, Inc.(a)

    1,649,018       10,091,990  

Radian Group, Inc.

    1,346,598       33,813,076  

Walker & Dunlop, Inc.

    420,326       31,205,002  
   

 

 

 
      104,159,161  
Food Products — 0.9%            

B&G Foods, Inc.

    913,678       9,036,275  

Calavo Growers, Inc.

    223,842       5,647,534  

Fresh Del Monte Produce, Inc.

    423,730       10,949,183  

Hain Celestial Group, Inc. (The)(a)(b)

    1,125,285       11,669,206  

John B Sanfilippo & Son, Inc.

    44,445       4,391,166  

TreeHouse Foods, Inc.(a)(b)

    342,562       14,928,852  
   

 

 

 
      56,622,216  
Gas Utilities — 0.2%            

Chesapeake Utilities Corp.

    74,123       7,245,523  

Northwest Natural Holding Co.

    163,561       6,241,488  
   

 

 

 
      13,487,011  
Ground Transportation — 1.0%            

ArcBest Corp.

    302,844       30,784,093  

Heartland Express, Inc.(b)

    204,057       2,997,597  

RXO, Inc.(a)(b)

    1,474,603       29,093,917  
   

 

 

 
      62,875,607  

 

 

26  

2 0 2 3   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, 2023

  

iShares® S&P Small-Cap 600 Value ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Health Care Equipment & Supplies — 2.5%        

Artivion, Inc.(a)

    491,750     $ 7,454,930  

Avanos Medical, Inc.(a)(b)

    589,918       11,928,142  

CONMED Corp.(b)

    197,620       19,929,977  

Embecta Corp.

    382,222       5,752,441  

Glaukos Corp.(a)

    202,310       15,223,828  

Integer Holdings Corp.(a)

    419,860       32,929,620  

LeMaitre Vascular, Inc.

    78,136       4,256,849  

Omnicell, Inc.(a)(b)

    569,915       25,668,972  

OraSure Technologies, Inc.(a)(b)

    923,182       5,474,469  

Orthofix Medical, Inc.(a)

    462,291       5,945,062  

STAAR Surgical Co.(a)

    195,816       7,867,887  

Tandem Diabetes Care, Inc.(a)(b)

    328,065       6,813,910  

Varex Imaging Corp.(a)(b)

    507,255       9,531,321  
   

 

 

 
      158,777,408  
Health Care Providers & Services — 2.9%        

Agiliti, Inc.(a)(b)

    244,087       1,584,125  

Apollo Medical Holdings, Inc.(a)(b)

    530,131       16,354,541  

Community Health Systems, Inc.(a)(b)

    1,595,690       4,627,501  

CorVel Corp.(a)(b)

    40,053       7,876,422  

Enhabit, Inc.(a)(b)

    632,036       7,110,405  

Fulgent Genetics, Inc.(a)

    142,368       3,806,920  

ModivCare, Inc.(a)(b)

    154,932       4,881,907  

NeoGenomics, Inc.(a)(b)

    1,608,169       19,780,479  

Owens & Minor, Inc.(a)

    964,234       15,582,021  

Pediatrix Medical Group, Inc.(a)(b)

    1,041,226       13,233,983  

Premier, Inc., Class A

    1,110,757       23,881,276  

RadNet, Inc.(a)(b)

    760,331       21,433,731  

Select Medical Holdings Corp.

    1,314,203       33,209,910  

U.S. Physical Therapy, Inc.

    73,691       6,759,675  
   

 

 

 
      180,122,896  
Health Care REITs — 0.3%            

CareTrust REIT, Inc.

    474,702       9,731,391  

Community Healthcare Trust, Inc.

    125,675       3,732,547  

LTC Properties, Inc.

    182,321       5,857,974  

Universal Health Realty Income Trust

    56,612       2,288,823  
   

 

 

 
      21,610,735  
Health Care Technology — 0.4%            

Certara, Inc.(a)(b)

    567,448       8,250,694  

HealthStream, Inc.

    111,011       2,395,617  

Schrodinger, Inc.(a)(b)

    384,259       10,863,002  

Simulations Plus, Inc.

    66,920       2,790,564  
   

 

 

 
      24,299,877  
Hotel & Resort REITs — 2.2%            

Apple Hospitality REIT, Inc.

    1,743,438       26,744,339  

Chatham Lodging Trust

    614,961       5,885,177  

DiamondRock Hospitality Co.

    2,642,428       21,218,697  

Pebblebrook Hotel Trust(b)

    1,518,974       20,642,857  

Service Properties Trust

    2,084,982       16,033,511  

Summit Hotel Properties, Inc.

    1,356,929       7,870,188  

Sunstone Hotel Investors, Inc.

    2,611,646       24,418,890  

Xenia Hotels & Resorts, Inc.

    1,351,600       15,921,848  
   

 

 

 
          138,735,507  
Hotels, Restaurants & Leisure — 2.3%            

BJ’s Restaurants, Inc.(a)(b)

    297,191       6,972,101  

Bloomin’ Brands, Inc.

    460,167       11,315,507  

Brinker International, Inc.(a)(b)

    558,292       17,636,444  

Cheesecake Factory, Inc. (The)

    594,645       18,017,744  

Chuy’s Holdings, Inc.(a)(b)

    105,548       3,755,398  

Cracker Barrel Old Country Store, Inc.

    279,234       18,764,525  

Dave & Buster’s Entertainment, Inc.(a)(b)

    190,435       7,059,425  
Security   Shares     Value  
Hotels, Restaurants & Leisure (continued)            

Dine Brands Global, Inc.

    79,128     $ 3,912,880  

Golden Entertainment, Inc.(b)

    107,396       3,670,795  

Papa John’s International, Inc.

    226,874       15,477,344  

Sabre Corp.(a)

    2,593,161       11,643,293  

Shake Shack, Inc., Class A(a)

    222,104       12,897,579  

Six Flags Entertainment Corp.(a)

    513,791       12,079,226  
   

 

 

 
      143,202,261  
Household Durables — 4.9%            

Century Communities, Inc.

    359,226       23,989,112  

Installed Building Products, Inc.

    101,065       12,622,008  

iRobot Corp.(a)

    347,498       13,170,174  

La-Z-Boy, Inc.

    545,540       16,846,275  

LGI Homes, Inc.(a)(b)

    258,221       25,690,407  

M/I Homes, Inc.(a)

    350,417       29,449,045  

MDC Holdings, Inc.

    751,745       30,994,446  

Meritage Homes Corp.

    463,437       56,720,055  

Newell Brands, Inc.

    4,803,457       43,375,217  

Sonos, Inc.(a)(b)

    1,616,741       20,872,126  

Tri Pointe Homes, Inc.(a)

    1,247,857       34,128,889  
   

 

 

 
      307,857,754  
Household Products — 0.8%            

Central Garden & Pet Co.(a)(b)

    62,505       2,758,970  

Central Garden & Pet Co., Class A, NVS(a)

    269,208       10,792,549  

Energizer Holdings, Inc.

    838,019       26,850,129  

WD-40 Co.(b)

    59,742       12,141,964  
   

 

 

 
      52,543,612  
Industrial REITs — 0.5%            

LXP Industrial Trust

    3,688,410       32,826,849  
   

 

 

 
Insurance — 3.7%            

Ambac Financial Group, Inc.(a)

    571,276       6,889,588  

American Equity Investment Life Holding Co.(a)

    374,261       20,075,360  

AMERISAFE, Inc.

    108,566       5,435,900  

Assured Guaranty Ltd.

    343,689       20,800,058  

Employers Holdings, Inc.

    161,703       6,460,035  

Genworth Financial, Inc., Class A(a)

    5,837,388       34,207,094  

Goosehead Insurance, Inc., Class A(a)(b)

    129,097       9,621,599  

HCI Group, Inc.

    75,345       4,090,480  

Horace Mann Educators Corp.

    516,578       15,177,062  

James River Group Holdings Ltd.

    476,471       7,313,830  

Lincoln National Corp.

    1,789,713       44,188,014  

Mercury General Corp.

    335,902       9,415,333  

ProAssurance Corp.

    655,894       12,389,838  

Safety Insurance Group, Inc.

    80,534       5,491,613  

SiriusPoint Ltd.(a)

    1,113,182       11,321,061  

Stewart Information Services Corp.

    344,707       15,098,166  

United Fire Group, Inc.

    266,545       5,264,264  
   

 

 

 
          233,239,295  
Interactive Media & Services — 0.9%            

Cargurus, Inc., Class A(a)

    548,396       9,607,898  

QuinStreet, Inc.(a)(b)

    313,902       2,815,701  

Shutterstock, Inc.

    158,236       6,020,880  

TripAdvisor, Inc.(a)

    1,357,117       22,501,000  

Yelp, Inc.(a)

    363,621       15,122,997  
   

 

 

 
      56,068,476  
IT Services — 0.2%            

Perficient, Inc.(a)

    189,384       10,957,758  
   

 

 

 

 

 

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

    27  


Schedule of Investments  (unaudited)  (continued)

September 30, 2023

  

iShares® S&P Small-Cap 600 Value ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Leisure Products — 0.3%            

Sturm Ruger & Co., Inc.

    86,713     $ 4,519,482  

Vista Outdoor, Inc.(a)(b)

    401,694       13,304,105  
   

 

 

 
      17,823,587  
Life Sciences Tools & Services — 0.6%            

Cytek Biosciences, Inc.(a)(b)

    698,890       3,857,873  

Fortrea Holdings, Inc.(a)(b)

    1,116,837       31,930,370  

Mesa Laboratories, Inc.

    24,723       2,597,645  
   

 

 

 
      38,385,888  
Machinery — 3.6%            

3D Systems Corp.(a)(b)

    1,682,529       8,261,217  

Alamo Group, Inc.

    35,113       6,069,633  

Astec Industries, Inc.

    286,301       13,487,640  

Barnes Group, Inc.

    638,173       21,678,737  

CIRCOR International, Inc.(a)

    257,611       14,361,813  

Enerpac Tool Group Corp., Class A

    240,243       6,349,623  

ESCO Technologies, Inc.(b)

    103,790       10,839,828  

Greenbrier Cos., Inc. (The)

    389,168       15,566,720  

John Bean Technologies Corp.(b)

    401,330       42,195,836  

Kennametal, Inc.

    1,004,788       24,999,125  

Proto Labs, Inc.(a)

    329,510       8,699,064  

SPX Technologies, Inc.(a)

    218,378       17,775,969  

Standex International Corp.

    47,797       6,963,545  

Tennant Co.

    234,246       17,369,341  

Trinity Industries, Inc.

    421,993       10,275,530  

Wabash National Corp.

    248,133       5,240,569  
   

 

 

 
      230,134,190  
Media — 1.1%            

AMC Networks, Inc., Class A(a)

    384,093       4,524,615  

DISH Network Corp., Class A(a)(b)

    3,128,103       18,330,684  

EW Scripps Co. (The), Class A, NVS(a)(b)

    747,446       4,096,004  

John Wiley & Sons, Inc., Class A

    536,417       19,938,620  

Scholastic Corp., NVS

    351,930       13,422,610  

Thryv Holdings, Inc.(a)(b)

    383,853       7,204,921  
   

 

 

 
      67,517,454  
Metals & Mining — 2.1%            

ATI, Inc.(a)(b)

    615,928       25,345,437  

Carpenter Technology Corp.

    611,991       41,131,915  

Century Aluminum Co.(a)(b)

    658,076       4,731,567  

Compass Minerals International, Inc.

    424,437       11,863,014  

Haynes International, Inc.

    53,444       2,486,215  

Materion Corp.

    112,260       11,440,417  

Olympic Steel, Inc.

    123,419       6,937,382  

SunCoke Energy, Inc.

    1,059,149       10,750,362  

TimkenSteel Corp.(a)(b)

    277,510       6,027,517  

Warrior Met Coal, Inc.

    288,511       14,737,142  
   

 

 

 
          135,450,968  
Mortgage Real Estate Investment Trusts (REITs) — 3.5%  

Apollo Commercial Real Estate Finance, Inc.

    1,639,170       16,604,792  

Arbor Realty Trust, Inc.(b)

    2,035,222       30,894,670  

Blackstone Mortgage Trust, Inc., Class A

    2,172,059       47,242,283  

Ellington Financial, Inc.

    859,513       10,718,127  

Franklin BSP Realty Trust, Inc.

    1,035,477       13,709,716  

Hannon Armstrong Sustainable Infrastructure Capital, Inc.

    810,249       17,177,279  

Invesco Mortgage Capital, Inc.

    305,931       3,062,369  

KKR Real Estate Finance Trust, Inc.

    733,347       8,704,829  

New York Mortgage Trust, Inc.

    1,146,372       9,732,698  

PennyMac Mortgage Investment Trust

    1,092,432       13,546,157  

Ready Capital Corp.

    1,991,649       20,135,571  
Security   Shares     Value  
Mortgage Real Estate Investment Trusts (REITs) (continued)  

Redwood Trust, Inc.

    1,435,371     $ 10,234,195  

Two Harbors Investment Corp.

    1,211,806       16,044,312  
   

 

 

 
      217,806,998  
Multi-Utilities — 0.5%            

Avista Corp.

    964,627       31,224,976  
   

 

 

 
Office REITs — 2.2%            

Brandywine Realty Trust

    2,175,346       9,876,071  

Douglas Emmett, Inc.

    2,100,468       26,801,972  

Easterly Government Properties, Inc.

    1,180,422       13,492,223  

Highwoods Properties, Inc.

    1,332,086       27,454,292  

Hudson Pacific Properties, Inc.

    1,594,925       10,606,251  

JBG SMITH Properties

    1,186,538       17,157,340  

SL Green Realty Corp.

    811,635       30,273,986  
   

 

 

 
      135,662,135  
Oil, Gas & Consumable Fuels — 2.0%            

California Resources Corp.

    580,166       32,495,098  

Callon Petroleum Co.(a)(b)

    352,249       13,779,981  

CVR Energy, Inc.

    165,078       5,617,604  

Green Plains, Inc.(a)(b)

    750,373       22,586,227  

Par Pacific Holdings, Inc.(a)

    708,191       25,452,384  

Talos Energy, Inc.(a)(b)

    584,125       9,603,015  

World Kinect Corp.

    758,806       17,020,019  
   

 

 

 
          126,554,328  
Paper & Forest Products — 0.3%            

Clearwater Paper Corp.(a)

    210,674       7,636,932  

Mercer International, Inc.

    313,038       2,685,866  

Sylvamo Corp.

    193,158       8,487,363  
   

 

 

 
      18,810,161  
Passenger Airlines — 1.0%            

Allegiant Travel Co.

    190,538       14,644,750  

Hawaiian Holdings, Inc.(a)(b)

    656,755       4,157,259  

JetBlue Airways Corp.(a)(b)

    4,200,743       19,323,418  

SkyWest, Inc.(a)

    530,220       22,237,427  
   

 

 

 
      60,362,854  
Personal Care Products — 0.5%            

Edgewell Personal Care Co.

    332,577       12,292,046  

Nu Skin Enterprises, Inc., Class A

    628,424       13,328,873  

USANA Health Sciences, Inc.(a)

    141,355       8,284,817  
   

 

 

 
      33,905,736  
Pharmaceuticals — 0.4%            

ANI Pharmaceuticals, Inc.(a)

    96,758       5,617,769  

Ligand Pharmaceuticals, Inc.(a)(b)

    94,437       5,658,665  

Phibro Animal Health Corp., Class A

    258,702       3,303,625  

Prestige Consumer Healthcare, Inc.(a)

    186,962       10,692,357  
   

 

 

 
      25,272,416  
Professional Services — 0.8%            

Forrester Research, Inc.(a)

    144,617       4,179,431  

Heidrick & Struggles International, Inc.

    252,013       6,305,365  

Kelly Services, Inc., Class A, NVS

    404,166       7,351,780  

Korn Ferry

    351,196       16,660,738  

Resources Connection, Inc.

    402,738       6,004,824  

TrueBlue, Inc.(a)

    390,063       5,722,224  

TTEC Holdings, Inc.

    120,637       3,163,102  
   

 

 

 
      49,387,464  
Real Estate Management & Development — 0.8%        

Anywhere Real Estate, Inc.(a)

    1,388,113       8,925,566  

Cushman & Wakefield PLC(a)(b)

    2,118,861       16,145,721  

 

 

28  

2 0 2 3   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, 2023

  

iShares® S&P Small-Cap 600 Value ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Real Estate Management & Development (continued)  

eXp World Holdings, Inc.(b)

    705,428     $ 11,456,151  

Kennedy-Wilson Holdings, Inc.

    954,238       14,065,468  
   

 

 

 
      50,592,906  
Residential REITs — 0.6%            

Centerspace

    188,077       11,333,520  

Elme Communities

    1,106,432       15,091,732  

NexPoint Residential Trust, Inc.

    136,600       4,395,788  

Veris Residential, Inc.

    444,553       7,335,125  
   

 

 

 
      38,156,165  
Retail REITs — 2.7%            

Acadia Realty Trust

    1,199,881       17,218,292  

Getty Realty Corp.

    208,259       5,775,022  

Macerich Co. (The)

    2,713,384       29,603,019  

Phillips Edison & Co., Inc.

    843,527       28,291,896  

Retail Opportunity Investments Corp.

    1,588,328       19,663,501  

RPT Realty

    1,009,839       10,663,900  

Saul Centers, Inc.

    70,714       2,494,083  

SITE Centers Corp.

    2,268,662       27,972,603  

Tanger Factory Outlet Centers, Inc.

    597,780       13,509,828  

Urban Edge Properties

    725,143       11,065,682  

Whitestone REIT

    591,929       5,700,276  
   

 

 

 
          171,958,102  
Semiconductors & Semiconductor Equipment — 1.7%  

CEVA, Inc.(a)

    117,243       2,273,342  

Cohu, Inc.(a)

    204,022       7,026,517  

FormFactor, Inc.(a)(b)

    978,884       34,202,207  

Ichor Holdings Ltd.(a)(b)

    368,017       11,393,806  

Semtech Corp.(a)(b)

    806,215       20,760,036  

SiTime Corp.(a)(b)

    99,515       11,369,589  

SMART Global Holdings, Inc.(a)(b)

    630,234       15,346,198  

Ultra Clean Holdings, Inc.(a)(b)

    253,546       7,522,710  
   

 

 

 
      109,894,405  
Software — 0.9%            

Adeia, Inc.

    1,348,139       14,398,125  

Cerence, Inc.(a)(b)

    507,166       10,330,971  

Consensus Cloud Solutions, Inc.(a)

    72,967       1,837,309  

Digital Turbine, Inc.(a)(b)

    414,259       2,506,267  

Ebix, Inc.

    310,509       3,067,829  

LiveRamp Holdings, Inc.(a)

    376,800       10,866,912  

N-able, Inc.(a)(b)

    282,302       3,641,696  

OneSpan, Inc.(a)(b)

    233,418       2,509,243  

Xperi, Inc.(a)

    544,239       5,366,197  
   

 

 

 
      54,524,549  
Specialized REITs — 0.7%            

Four Corners Property Trust, Inc.

    377,493       8,376,570  

Outfront Media, Inc.

    1,830,778       18,490,858  

Safehold, Inc.(a)

    562,712       10,016,273  

Uniti Group, Inc.

    1,656,721       7,819,723  
   

 

 

 
      44,703,424  
Specialty Retail — 7.7%            

Abercrombie & Fitch Co., Class A(a)(b)

    631,088       35,574,431  

Academy Sports & Outdoors, Inc.(b)

    510,785       24,144,807  

Advance Auto Parts, Inc.

    749,314       41,909,132  

American Eagle Outfitters, Inc.

    2,339,608       38,860,889  

America’s Car-Mart, Inc.(a)(b)

    75,256       6,847,543  

Asbury Automotive Group, Inc.(a)(b)

    142,646       32,818,565  

Boot Barn Holdings, Inc.(a)(b)

    147,188       11,950,194  

Buckle, Inc. (The)

    117,391       3,919,686  

Caleres, Inc.

    429,040       12,339,190  

Chico’s FAS, Inc.(a)(b)

    1,556,113       11,639,725  

Security   Shares     Value  
Specialty Retail (continued)            

Designer Brands, Inc., Class A

    621,417     $ 7,867,139  

Foot Locker, Inc.

    1,030,035       17,871,107  

Group 1 Automotive, Inc.

    177,118       47,593,378  

Guess?, Inc.

    344,150       7,447,406  

Haverty Furniture Cos., Inc.

    83,719       2,409,433  

Hibbett, Inc.

    76,206       3,620,547  

Leslie’s, Inc.(a)(b)

    819,174       4,636,525  

MarineMax, Inc.(a)(b)

    251,621       8,258,201  

Monro, Inc.

    395,188       10,974,371  

National Vision Holdings, Inc.(a)

    413,584       6,691,789  

ODP Corp. (The)(a)(b)

    426,864       19,699,774  

Sally Beauty Holdings, Inc.(a)(b)

    1,355,774       11,361,386  

Shoe Carnival, Inc.

    226,645       5,446,279  

Signet Jewelers Ltd.(b)

    572,398       41,103,900  

Sleep Number Corp.(a)(b)

    265,866       6,537,645  

Sonic Automotive, Inc., Class A

    200,025       9,553,194  

Upbound Group, Inc.

    578,605       17,039,917  

Urban Outfitters, Inc.(a)(b)

    712,781       23,300,811  

Victoria’s Secret & Co.(a)(b)

    972,214       16,216,530  
   

 

 

 
      487,633,494  
Technology Hardware, Storage & Peripherals — 0.5%        

Avid Technology, Inc.(a)(b)

    174,520       4,689,352  

Corsair Gaming, Inc.(a)(b)

    241,270       3,505,653  

Xerox Holdings Corp.

    1,426,001       22,373,956  
   

 

 

 
      30,568,961  
Textiles, Apparel & Luxury Goods — 1.7%            

G-III Apparel Group Ltd.(a)(b)

    510,802       12,729,186  

Hanesbrands, Inc.(b)

    4,409,050       17,459,838  

Kontoor Brands, Inc.

    629,643       27,647,624  

Movado Group, Inc.

    196,215       5,366,480  

Oxford Industries, Inc.

    55,726       5,356,941  

Steven Madden Ltd.

    892,412       28,351,929  

Wolverine World Wide, Inc.

    1,003,834       8,090,902  
   

 

 

 
          105,002,900  
Tobacco — 0.4%            

Universal Corp.

    310,030       14,636,516  

Vector Group Ltd.

    932,509       9,921,896  
   

 

 

 
      24,558,412  
Trading Companies & Distributors — 1.3%        

DXP Enterprises, Inc.(a)

    172,688       6,033,719  

GMS, Inc.(a)

    513,972       32,878,789  

NOW, Inc.(a)

    1,344,087       15,954,313  

Veritiv Corp.

    170,816       28,850,822  
   

 

 

 
      83,717,643  
Water Utilities — 0.5%            

American States Water Co.

    144,218       11,347,072  

California Water Service Group

    276,900       13,100,139  

Middlesex Water Co.

    80,341       5,322,592  
   

 

 

 
      29,769,803  
Wireless Telecommunication Services — 0.6%        

Gogo, Inc.(a)(b)

    275,015       3,280,929  

Shenandoah Telecommunications Co.

    633,597       13,058,434  

Telephone & Data Systems, Inc.

    1,234,139       22,597,085  
   

 

 

 
      38,936,448  
   

 

 

 

Total Long-Term Investments — 98.3%
(Cost: $6,831,136,553)

 

    6,201,389,320  
   

 

 

 

 

 

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

    29  


Schedule of Investments  (unaudited)  (continued)

September 30, 2023

  

iShares® S&P Small-Cap 600 Value ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

 

Short-Term Securities

   
Money Market Funds — 9.2%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 5.54%(c)(d)(e)

    431,104,260     $ 431,276,702  

BlackRock Cash Funds: Treasury, SL Agency Shares, 5.31%(c)(d)

    145,219,528       145,219,528  
   

 

 

 

Total Short-Term Securities — 9.2%

   

(Cost: $576,289,121)

      576,496,230  
   

 

 

 

Total Investments — 107.5%

   

(Cost: $7,407,425,674)

        6,777,885,550  

Liabilities in Excess of Other Assets — (7.5)%

 

    (471,744,531
   

 

 

 

Net Assets — 100.0%

    $ 6,306,141,019  
   

 

 

 

 

(a)

Non-income producing security.

(b)

All or a portion of this security is on loan.

(c)

Affiliate of the Fund.

(d)

Annualized 7-day yield as of period end.

(e)

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

    

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended September 30, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 

      
       Affiliated Issuer  

Value at

03/31/23

    

Purchases

at Cost

   

Proceeds

from Sale

   

Net

Realized

Gain (Loss)

   

Change in

Unrealized

Appreciation

(Depreciation)

    

Value at

09/30/23

    

Shares

Held at

09/30/23

     Income    

Capital

Gain

Distributions

from Underlying

Funds

    

    

     
 

 

      
 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $   417,296,861      $   13,927,521 (a)    $     $ (24,835   $ 77,155      $ 431,276,702        431,104,260      $ 1,133,117 (b)    $       
 

BlackRock Cash Funds: Treasury, SL Agency Shares

    198,053,688              (52,834,160 )(a)                   145,219,528        145,219,528        3,099,790             
          

 

 

   

 

 

    

 

 

       

 

 

   

 

 

      
           $ (24,835   $   77,155      $   576,496,230         $ 4,232,907     $       
          

 

 

   

 

 

    

 

 

       

 

 

   

 

 

      
      

 

  (a)

Represents net amount purchased (sold).

 
  (b) 

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

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description  

Number of

Contracts

    

Expiration

Date

    

Notional

Amount

(000)

    

Value/

Unrealized

Appreciation

(Depreciation)

 

Long Contracts

          

Russell 2000 E-Mini Index

    260        12/15/23      $ 23,382      $ (476,139
          

 

 

 

 

 

30  

2 0 2 3   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, 2023

   iShares® S&P Small-Cap 600 Value ETF

 

OTC Total Return Swaps

 

 

 
Reference Entity  

Payment

Frequency

   Counterparty(a)   

Termination

Date

    

Net

Notional

   

Accrued

Unrealized

Appreciation

(Depreciation)

   

Net Value of

Reference

Entity

    

Gross Notional

Amount

Net Asset

Percentage

 

 

 

Equity Securities Long/Short

  Monthly    Goldman Sachs Bank USA(b)      08/19/26      $ (26,386,538   $ (1,406,113 )(c)    $ 25,028,636        0.4
  Monthly    HSBC Bank PLC(d)      02/10/28        (25,757,636     (494,013 )(e)      25,356,279        0.4  
  Monthly    JPMorgan Chase Bank NA(f)      02/08/24        (27,086,086     (1,067,624 )(g)      26,105,374        0.4  
            

 

 

   

 

 

    
             $ (2,967,750   $   76,490,289     
            

 

 

   

 

 

    

 

(a) The Fund receives the total return on a portfolio of long positions underlying the total return swap. The Fund pays the total return on a portfolio of short positions underlying the total return swap. In addition, the Fund pays or receives a variable rate of interest, based on a specified benchmark. The benchmark and spread are determined based upon the country and/or currency of the individual underlying positions.

(c)  Amount includes $(48,211) of net dividends, payable for referenced securities purchased and financing fees.

(e) Amount includes $(92,656) of net dividends, payable for referenced securities purchased and financing fees.

(g) Amount includes $(86,912) of net dividends, payable for referenced securities purchased and financing fees.

 

The following are the specified benchmarks (plus or minus a range) used in determining the variable rate of interest:

  

   

  

  

 

 

  (b)    (d)    (f)

     Range:

  0-75 basis points    40 basis points    40 basis points

     Benchmarks:

  USD - 1D Overnight Fed Funds Effective Rate    USD - 1D Overnight Bank Funding Rate    USD - 1D Overnight Bank Funding Rate
  (FEDL01)    (OBFR01)    (OBFR01)

 

The following table represents the individual long positions and related values of the equity securities underlying the total return swap with Goldman Sachs Bank USA as of period end, termination date August 19, 2026.

 

 

 
    Shares     Value          

% of

Basket

Value

 

 

 

Reference Entity — Long

       
Common Stocks                        
Banks                        

Atlantic Union Bankshares Corp.

    1,979     $ 56,956         0.2

Berkshire Hills Bancorp, Inc.

    26       521         0.0  

Cathay General Bancorp

    129,118         4,488,142                  17.9  

Northwest Bancshares, Inc.

    15       153         0.0  

TrustCo Bank Corp.

    571       15,582         0.1  

United Community Banks, Inc.

    1,409       35,803         0.2  

Washington Federal, Inc.

    1,295       33,178         0.1  
   

 

 

     

 

 

 
      4,630,335      
Capital Markets                        

Moelis & Co., Class A

    157,569       7,111,089         28.4  

WisdomTree, Inc.

    8,140       56,980         0.2  
   

 

 

     

 

 

 
      7,168,069      
Commercial Services & Supplies                        

Pitney Bowes, Inc.

    2,851       8,610         0.0  
   

 

 

     

 

 

 
Consumer Finance                        

Bread Financial Holdings, Inc.

    135,999       4,651,166         18.6  

Green Dot Corp., Class A

    24,813       345,645         1.4  
   

 

 

     

 

 

 
      4,996,811      
Financial Services                        

Jackson Financial, Inc., Class A

    55,252       2,111,731         8.4  

Payoneer Global, Inc.

    207,022       1,266,975         5.1  
   

 

 

     

 

 

 
      3,378,706      

 

 
    Shares     Value          

% of

Basket

Value

 

 

 
Insurance                        

Horace Mann Educators Corp.

    1,749     $ 51,386                  0.2

James River Group Holdings Ltd.

    149       2,287         0.0  
   

 

 

     

 

 

 
      53,673      

Mortgage Real Estate Investment Trusts (REITs)

       

Arbor Realty Trust, Inc.

    315,707       4,792,432         19.2  
   

 

 

     

 

 

 

Net Value of Reference Entity —

       

Goldman Sachs Bank USA

    $   25,028,636      
   

 

 

     

The following table represents the individual long positions and related values of the equity securities underlying the total return swap with HSBC Bank PLC as of period end, termination date February 10, 2028.

 

 

 
    Shares     Value          

% of

Basket

Value

 

 

 

Reference Entity — Long

       
Common Stocks                        
Banks                        

Ameris Bancorp

    14     $ 538         0.0

Central Pacific Financial Corp.

    31,835       531,008         2.1  

Community Bank System, Inc.

    1,386       58,503                  0.2  

First Bancorp

    2,223       62,555         0.3  

First Commonwealth Financial Corp.

    5,034       61,465         0.2  

Fulton Financial Corp.

    131,217           1,589,038         6.3  

Hope Bancorp, Inc.

    5,431       48,064         0.2  

Provident Financial Services, Inc.

    4,034       61,680         0.2  

S&T Bancorp, Inc.

    2,300       62,284         0.3  

Southside Bancshares, Inc.

    2,168       62,222         0.2  

TrustCo Bank Corp.

    571       15,583         0.1  

 

 

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

    31  


Schedule of Investments  (unaudited)  (continued)

September 30, 2023

  

iShares® S&P Small-Cap 600 Value ETF

    

 

 

 
    Shares      Value    

% of

      Basket

Value

 

 

 
Banks (continued)                        

Trustmark Corp.

    2,929      $ 63,647                  0.3

Veritex Holdings, Inc.

    3,395       60,940         0.2  
   

 

 

     

 

 

 
      2,677,527      
Capital Markets                        

Artisan Partners Asset Management, Inc., Class A

    3,615       135,273         0.5  
   

 

 

     

 

 

 
Consumer Finance                        

Green Dot Corp., Class A

    216,917       3,021,654         11.9  
   

 

 

     

 

 

 
Financial Services                        

Jackson Financial, Inc., Class A

    274,394       10,487,339         41.4  

Radian Group, Inc.

    16,314       409,644         1.6  
   

 

 

     

 

 

 
      10,896,983      
Insurance                        

Lincoln National Corp.

    348,639       8,607,897         33.9  
   

 

 

     

 

 

 
Office REITs                        

Douglas Emmett, Inc.

    1,328       16,945         0.1  
   

 

 

     

 

 

 

Net Value of Reference Entity — HSBC Bank PLC

    $   25,356,279      
   

 

 

     

The following table represents the individual long positions and related values of the equity securities underlying the total return swap with JPMorgan Chase Bank NA as of period end, termination date February 8, 2024.

 

 

 
    Shares      Value    

% of

      Basket

Value

 

 

 
Reference Entity — Long                        

Common Stocks

                

Banks

       

Banc of California, Inc.

    3,616      $         44,766         0.2

Veritex Holdings, Inc.

    997       17,896         0.0  
   

 

 

     

 

 

 
      62,662      

 

 
    Shares      Value    

% of

      Basket

Value

 

 

 
Capital Markets                           

Artisan Partners Asset Management, Inc., Class A

    158,436      $ 5,928,675         22.7
   

 

 

     

 

 

 

Consumer Finance

       

Green Dot Corp., Class A

    323,625       4,508,096         17.3  
   

 

 

     

 

 

 

Financial Services

       

Radian Group, Inc.

    621,503       15,605,941         59.8  
   

 

 

     

 

 

 

Net Value of Reference Entity — JPMorgan Chase Bank NA

    $   26,105,374      
   

 

 

     

 

Balances Reported in the Statements of Assets and Liabilities for OTC Swaps

Description   

 

Swap

Premiums

Paid

   

Swap

Premiums

Received

   

Unrealized    

Appreciation    

   

Unrealized 

Depreciation 

OTC Swaps

   $      $      $ —         $  (2,967,750)

 

 

32  

2 0 2 3   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, 2023

  

iShares® S&P Small-Cap 600 Value

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

 

 
    Commodity
Contracts
    

Credit

Contracts

    

Equity

Contracts

    

Foreign

Currency

Exchange

Contracts

    

Interest

Rate

Contracts

    

Other

Contracts

     Total   

 

 

Liabilities — Derivative Financial Instruments

                   

Futures contracts

                   

Unrealized depreciation on futures contracts(a)

  $      $      $ 476,139      $      $      $      $ 476,139  

Swaps — OTC

                   

Unrealized depreciation on OTC swaps; Swap premiums received

                  2,967,750                             2,967,750  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
  $      $      $   3,443,889      $      $      $      $  3,443,889  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Net cumulative unrealized appreciation (depreciation) on futures contracts, if any, 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, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

 
   

Commodity

Contracts

    

Credit

Contracts

    

Equity

Contracts

   

Foreign

Currency

Exchange

Contracts

    

Interest

Rate

Contracts

    

Other

Contracts

     Total   

 

 

Net Realized Gain (Loss) from:

                  

Futures contracts

  $      $      $    1,712,626     $      $      $      $     1,712,626  

Swaps

                  (1,472,381                          (1,472,381
 

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 
  $      $      $ 240,245     $      $      $      $ 240,245  
 

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

                  

Futures contracts

  $      $      $ (1,831,487   $      $      $      $ (1,831,487

Swaps

                  3,508,306                            3,508,306  
 

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 
  $      $      $ 1,676,819     $      $      $      $ 1,676,819  
 

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

   

Futures contracts

  

Average notional value of contracts — long

     $23,684,210  

Total return swaps

  

Average notional amount

     $122,167,769  

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

Derivative Financial Instruments – Offsetting as of Period End

The Fund’s derivative assets and liabilities (by type) were as follows:

 

     Assets             Liabilities   

Derivative Financial Instruments

      

Futures contracts

  $        $ 136,500  

Swaps — OTC(a)

             2,967,750  
 

 

 

      

 

 

 

Total derivative assets and liabilities in the Statements of Assets and Liabilities

  $        $ 3,104,250  
 

 

 

      

 

 

 

Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”)

             (136,500
 

 

 

      

 

 

 

Total derivative assets and liabilities subject to an MNA

  $        $   2,967,750  
 

 

 

      

 

 

 

 

  (a) 

Includes unrealized appreciation (depreciation) on OTC swaps and swap premiums (paid/received) in the Statements of Assets and Liabilities.

 

 

 

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

    33  


Schedule of Investments  (unaudited)  (continued)

September 30, 2023

  

iShares® S&P Small-Cap 600 Value ETF

 

The following tables present the Fund’s derivative assets and liabilities by counterparty net of amounts available for offset under an MNA and net of the related collateral received and pledged by the Fund:

 

 

 
Counterparty   

Derivative

Liabilities

Subject to

an MNA by

Counterparty

      

Derivatives

Available

for Offset(a)

      

Non-

Cash

Collateral

Pledged(b)

      

Cash

Collateral

Pledged(b)

      

Net

Amount of

Derivative

Liabilities(c)

 

 

 

Goldman Sachs Bank USA

   $ 1,406,113        $        $        $   (1,370,000      $ 36,113  

HSBC Bank PLC

     494,013                            (494,013         

JPMorgan Chase Bank N.A.

     1,067,624                            (1,067,624         
  

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 
   $ 2,967,750        $        $        $ (2,931,637      $ 36,113  
  

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a)

The amount of derivatives available for offset is limited to the amount of derivative assets and/or liabilities that are subject to an MNA.

 
  (b) 

Excess of collateral received/pledged, if any, from the individual counterparty is not shown for financial reporting purposes.

 
  (c)

Net amount represents the net amount payable due to the counterparty in the event of default.

 

Fair Value Hierarchy as of Period End

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

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

 

 

 
     Level 1        Level 2        Level 3        Total  

 

 

Assets

                 

Investments

                 

Long-Term Investments

                 

Common Stocks

   $   6,201,389,320        $        $        $   6,201,389,320  

Short-Term Securities

                 

Money Market Funds

     576,496,230                            576,496,230  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 6,777,885,550        $        $        $ 6,777,885,550  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(a)

                 

Liabilities

                 

Equity Contracts

   $ (476,139      $         (2,967,750      $                     —        $ (3,443,889
  

 

 

      

 

 

      

 

 

      

 

 

 

 

(a) 

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

 

See notes to financial statements.

 

 

34  

2 0 2 3   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, 2023

 

    

iShares

S&P 100 ETF

    

iShares

S&P 500 Growth

ETF

    

iShares

S&P 500 Value ETF

   

iShares

S&P Small-Cap

600 Value ETF

 

ASSETS

         

Investments, at value — unaffiliated(a)(b)

  $  8,362,723,537      $ 33,728,591,438      $ 23,808,000,451     $ 6,201,389,320  

Investments, at value — affiliated(c)

    94,425,627        298,384,497        428,554,470       576,496,230  

Cash

    153        538        159,788       470,714  

Cash pledged:

         

Collateral — OTC derivatives

                        7,150,000  

Futures contracts

    1,157,640        2,974,340        2,837,360       1,791,000  

Receivables:

         

Investments sold

    373,184        8,506,817        10,499,690       24,820,515  

Securities lending income — affiliated

    31,966        44,285        19,998       137,283  

Swaps

                        993  

Dividends — unaffiliated

    4,043,357        18,284,429        20,008,537       11,153,774  

Dividends — affiliated

    94,439        281,445        221,041       452,646  

Due from broker

    81                     417,020  
 

 

 

    

 

 

    

 

 

   

 

 

 

Total assets

    8,462,849,984        34,057,067,789        24,270,301,335       6,824,279,495  
 

 

 

    

 

 

    

 

 

   

 

 

 

LIABILITIES

         

Collateral on securities loaned

    15,721,307        144,944,538        126,631,440       431,203,495  

Payables:

         

Investments purchased

    373,184        8,506,817        10,499,689       41,531,505  

Swaps

                        4,354,134  

Capital shares redeemed

    22,454                      

Income dividend distributions

    30,978,822        110,002,344        131,124,937       36,978,433  

Investment advisory fees

    1,417,553        5,159,220        3,679,744       966,659  

Variation margin on futures contracts

    55,890        143,400        136,800       136,500  

Unrealized depreciation on OTC swaps

                        2,967,750  
 

 

 

    

 

 

    

 

 

   

 

 

 

Total liabilities

    48,569,210        268,756,319        272,072,610       518,138,476  
 

 

 

    

 

 

    

 

 

   

 

 

 

Commitments and contingent liabilities

         

NET ASSETS

  $ 8,414,280,774      $ 33,788,311,470      $     23,998,228,725     $ 6,306,141,019  
 

 

 

    

 

 

    

 

 

   

 

 

 

NET ASSETS CONSIST OF:

         

Paid-in capital

  $ 7,373,849,803      $ 27,535,209,957      $ 24,811,825,345     $ 8,227,993,469  

Accumulated earnings (loss)

    1,040,430,971        6,253,101,513        (813,596,620     (1,921,852,450
 

 

 

    

 

 

    

 

 

   

 

 

 

NET ASSETS

  $ 8,414,280,774      $ 33,788,311,470      $ 23,998,228,725     $ 6,306,141,019  
 

 

 

    

 

 

    

 

 

   

 

 

 

NET ASSET VALUE

         

Shares outstanding

    41,950,000        493,800,000        156,100,000       70,700,000  
 

 

 

    

 

 

    

 

 

   

 

 

 

Net asset value

  $ 200.58      $ 68.43      $ 153.74     $ 89.20  
 

 

 

    

 

 

    

 

 

   

 

 

 

Shares authorized

    Unlimited        Unlimited        Unlimited       Unlimited  
 

 

 

    

 

 

    

 

 

   

 

 

 

Par value

    None        None        None       None  
 

 

 

    

 

 

    

 

 

   

 

 

 

(a) Investments, at cost — unaffiliated

  $ 7,077,464,442      $ 25,078,370,854      $ 23,215,045,322     $ 6,831,136,553  

(b) Securities loaned, at value

  $ 15,250,319      $ 142,477,449      $ 123,380,222     $ 418,587,514  

(c)  Investments, at cost — affiliated

  $ 92,859,520      $ 298,334,664      $ 444,210,539     $ 576,289,121  

See notes to financial statements.

 

 

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

  35


Statements of Operations (unaudited)

Six Months Ended September 30, 2023

 

    

iShares

S&P 100 ETF

   

iShares

S&P 500 Growth

ETF

   

iShares

S&P 500 Value ETF

   

iShares

S&P Small-Cap

600 Value ETF

 

INVESTMENT INCOME

       

Dividends — unaffiliated

  $ 62,368,662     $ 207,773,755     $ 242,203,145     $ 72,911,597  

Dividends — affiliated

    1,017,878       1,284,199       3,291,300       3,099,790  

Securities lending income — affiliated — net

    11,979       1,195,928       694,602       1,133,117  

Foreign taxes withheld

          (78,507     (47,956      
 

 

 

   

 

 

   

 

 

   

 

 

 

Total investment income

    63,398,519       210,175,375       246,141,091       77,144,504  
 

 

 

   

 

 

   

 

 

   

 

 

 

EXPENSES

       

Investment advisory

    8,209,107       29,529,187       22,431,369       6,064,963  

Interest expense

    2,557       14,260             11,649  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses

    8,211,664       29,543,447       22,431,369       6,076,612  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

    55,186,855       180,631,928       223,709,722       71,067,892  
 

 

 

   

 

 

   

 

 

   

 

 

 

REALIZED AND UNREALIZED GAIN (LOSS)

       

Net realized gain (loss) from:

       

Investments — unaffiliated

    (24,611,967     (30,389,301     (100,546,151     (405,705,881

Investments — affiliated

    (669,282     20,983       (3,107,870     (24,835

Futures contracts

    2,351,967       6,943,310       8,324,454       1,712,626  

In-kind redemptions — unaffiliated(a)

    168,584,769       821,952,972       339,707,206       32,777,227  

In-kind redemptions — affiliated(a)

    608,181             2,066,336        

Swaps

                      (1,472,381
 

 

 

   

 

 

   

 

 

   

 

 

 
    146,263,668       798,527,964       246,443,975       (372,713,244
 

 

 

   

 

 

   

 

 

   

 

 

 

Net change in unrealized appreciation (depreciation) on:

       

Investments — unaffiliated

    401,243,026       1,246,678,644       76,415,380       40,707,530  

Investments — affiliated

    (908,478     25,111       (3,233,110     77,155  

Futures contracts

    (1,809,626     (4,810,946     (5,213,991     (1,831,487

Swaps

                      3,508,306  
 

 

 

   

 

 

   

 

 

   

 

 

 
    398,524,922       1,241,892,809       67,968,279       42,461,504  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net realized and unrealized gain (loss)

    544,788,590       2,040,420,773       314,412,254       (330,251,740
 

 

 

   

 

 

   

 

 

   

 

 

 

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS

  $ 599,975,445     $   2,221,052,701     $ 538,121,976     $ (259,183,848
 

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

See Note 2 of the Notes to Financial Statements.

See notes to financial statements.

 

 

36  

2 0 2 3   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 S&P 100 ETF      iShares S&P 500 Growth ETF  
 

 

 

    

 

 

 
    

Six Months Ended

09/30/23

(unaudited)

   

Year Ended

03/31/23

    

Six Months
Ended

09/30/23

(unaudited)

   

Year Ended

03/31/23

 

INCREASE (DECREASE) IN NET ASSETS

        

OPERATIONS

        

Net investment income

  $ 55,186,855     $ 113,224,910      $ 180,631,928     $ 280,085,567  

Net realized gain

    146,263,668       407,479,441        798,527,964       191,710,832  

Net change in unrealized appreciation (depreciation)

    398,524,922       (1,345,332,448      1,241,892,809       (5,994,083,405
 

 

 

   

 

 

    

 

 

   

 

 

 

Net increase (decrease) in net assets resulting from operations

    599,975,445       (824,628,097      2,221,052,701       (5,522,287,006
 

 

 

   

 

 

    

 

 

   

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS(a)

        

Decrease in net assets resulting from distributions to shareholders

    (55,469,491     (113,384,492      (179,363,147     (273,353,269
 

 

 

   

 

 

    

 

 

   

 

 

 

CAPITAL SHARE TRANSACTIONS

        

Net increase (decrease) in net assets derived from capital share transactions

    321,747,280       (291,408,168      1,582,530,431       (798,680,236
 

 

 

   

 

 

    

 

 

   

 

 

 

NET ASSETS

        

Total increase (decrease) in net assets

    866,253,234       (1,229,420,757      3,624,219,985       (6,594,320,511

Beginning of period

    7,548,027,540       8,777,448,297        30,164,091,485       36,758,411,996  
 

 

 

   

 

 

    

 

 

   

 

 

 

End of period

  $   8,414,280,774     $ 7,548,027,540      $   33,788,311,470     $ 30,164,091,485  
 

 

 

   

 

 

    

 

 

   

 

 

 

 

(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

  37


Statements of Changes in Net Assets   (continued)

 

    iShares S&P 500 Value ETF      iShares S&P Small-Cap 600 Value ETF  
 

 

 

    

 

 

 
    

Six Months
Ended

09/30/23

(unaudited)

    Year Ended
03/31/23
    

Six Months Ended

09/30/23

(unaudited)

    Year Ended
03/31/23
 

INCREASE (DECREASE) IN NET ASSETS

        

OPERATIONS

        

Net investment income

  $ 223,709,722     $ 503,287,391      $ 71,067,892     $ 126,569,524  

Net realized gain (loss)

    246,443,975       2,360,039,333        (372,713,244     41,006,441  

Net change in unrealized appreciation (depreciation)

    67,968,279       (3,132,333,186      42,461,504       (885,835,581
 

 

 

   

 

 

    

 

 

   

 

 

 

Net increase (decrease) in net assets resulting from operations

    538,121,976       (269,006,462      (259,183,848     (718,259,616
 

 

 

   

 

 

    

 

 

   

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS(a)

        

Decrease in net assets resulting from distributions to shareholders

    (216,687,425     (505,414,298      (65,368,033     (106,591,690
 

 

 

   

 

 

    

 

 

   

 

 

 

CAPITAL SHARE TRANSACTIONS

        

Net decrease in net assets derived from capital share transactions

    (799,481,074     (635,658,997      (352,655,152     (741,070,327
 

 

 

   

 

 

    

 

 

   

 

 

 

NET ASSETS

        

Total decrease in net assets

    (478,046,523     (1,410,079,757      (677,207,033     (1,565,921,633

Beginning of period

    24,476,275,248       25,886,355,005        6,983,348,052       8,549,269,685  
 

 

 

   

 

 

    

 

 

   

 

 

 

End of period

  $   23,998,228,725     $  24,476,275,248      $     6,306,141,019     $ 6,983,348,052  
 

 

 

   

 

 

    

 

 

   

 

 

 

 

(a) 

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

See notes to financial statements.

 

 

38  

2 0 2 3   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  

(For a share outstanding throughout each period)

 

          iShares S&P 100 ETF  
     

Six Months Ended

09/30/23

(unaudited)

 

 

 

     

Year Ended

03/31/23

 

 

     

Year Ended

03/31/22

 

 

     

Year Ended

03/31/21

 

 

     

Year Ended

03/31/20

 

 

     

Year Ended

03/31/19

 

 

                         

Net asset value, beginning of period

                 $ 187.06       $ 208.24       $ 179.83       $ 118.50       $ 125.31       $ 115.89  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net investment income(a)

      1.35         2.66         2.41         2.37         2.48         2.35  

Net realized and unrealized gain(b)

      13.50         (21.16       28.36         61.39         (6.58       9.45  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net increase from investment operations

      14.85         (18.50       30.77         63.76         (4.10       11.80  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Distributions from net investment income(c)

      (1.33       (2.68       (2.36       (2.43       (2.71       (2.38
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net asset value, end of period

    $ 200.58       $ 187.06       $ 208.24       $ 179.83       $ 118.50       $ 125.31  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total Return(d)

                       

Based on net asset value

      7.95 %(e)        (8.80 )%        17.14       54.11       (3.42 )%        10.25
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Ratios to Average Net Assets(f)

                       

Total expenses

      0.20 %(g)        0.20       0.20       0.20       0.20       0.20
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net investment income

      1.34 %(g)        1.48       1.19       1.52       1.86       1.94
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Supplemental Data

                       

Net assets, end of period (000)

    $ 8,414,281       $ 7,548,028       $ 8,777,448       $ 6,977,233       $ 4,852,686       $ 4,824,336  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Portfolio turnover rate(h)

      2       3       2       8       4       7
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

 

(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) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(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

    39  


Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

          iShares S&P 500 Growth ETF  
     

Six Months Ended

09/30/23

(unaudited)

 

 

 

     

Year Ended

03/31/23

 

 

     

Year Ended

03/31/22

 

 

     

Year Ended

03/31/21

 

(a) 

     

Year Ended

03/31/20

 

(a) 

     

Year Ended

03/31/19

 

(a) 

                         

Net asset value, beginning of period

           $ 63.92       $ 76.34       $ 65.08       $ 41.25       $ 43.10       $ 38.76  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net investment income(b)

      0.38         0.60         0.41         0.47         0.60         0.52  

Net realized and unrealized gain(c)

      4.50         (12.44       11.27         23.85         (1.68       4.33  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net increase from investment operations

      4.88         (11.84       11.68         24.32         (1.08       4.85  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Distributions from net investment income(d)

      (0.37       (0.58       (0.42       (0.49       (0.77       (0.51
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net asset value, end of period

    $ 68.43       $ 63.92       $ 76.34       $ 65.08       $ 41.25       $ 43.10  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total Return(e)

                       

Based on net asset value

      7.63 %(f)        (15.48 )%        17.94       59.13       (2.65 )%        12.59
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Ratios to Average Net Assets(g)

                       

Total expenses

      0.18 %(h)        0.18       0.18       0.18       0.18       0.18
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net investment income

      1.10 %(h)        0.94       0.55       0.82       1.30       1.27
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Supplemental Data

                       

Net assets, end of period (000)

    $ 33,788,311       $ 30,164,091       $ 36,758,412       $ 31,174,756       $ 22,307,379       $ 22,550,900  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Portfolio turnover rate(i)

      2       34       14       13       27       27
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

 

(a)

Per share amounts reflect a four-for-one stock split effective after the close of trading on October 16, 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)

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(h)

Annualized.

(i)

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

40  

2 0 2 3   B L A C K R O C K   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 S&P 500 Value ETF  
   

    

 

 

 

   

Six Months Ended

09/30/23

(unaudited)

 

 

 

     

Year Ended

03/31/23

 

 

     

Year Ended

03/31/22

 

 

     

Year Ended

03/31/21

 

 

     

Year Ended

03/31/20

 

 

     

Year Ended

03/31/19

 

 

                         

Net asset value, beginning of period

          $ 151.79       $ 155.61       $ 141.09       $ 96.29       $ 112.76       $ 109.32  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net investment income(a)

      1.42         3.00         2.89         2.83         2.86         2.69  

Net realized and unrealized gain(b)

      1.91         (3.78       14.48         44.86         (16.41       3.53  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net increase from investment operations

      3.33         (0.78       17.37         47.69         (13.55       6.22  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Distributions from net investment income(c)

      (1.38       (3.04       (2.85       (2.89       (2.92       (2.78
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net asset value, end of period

    $ 153.74       $ 151.79       $ 155.61       $ 141.09       $ 96.29       $ 112.76  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total Return(d)

                       

Based on net asset value

      2.19 %(e)        (0.35 )%        12.39       50.10       (12.34 )%        5.79
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Ratios to Average Net Assets(f)

                       

Total expenses

      0.18 %(g)        0.18       0.18       0.18       0.18       0.18
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net investment income

      1.80 %(g)        2.06       1.92       2.39       2.40       2.43
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Supplemental Data

                       

Net assets, end of period (000)

    $ 23,998,229       $ 24,476,275       $ 25,886,355       $ 21,424,451       $ 14,187,829       $ 15,234,432  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Portfolio turnover rate(h)

      2       29       18       26       32       31
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

 

(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)

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(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

  41


Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

           iShares S&P Small-Cap 600 Value ETF  
 

 

Six Months Ended

09/30/23

(unaudited)

 

 

 

     

Year Ended

03/31/23

 

 

     

Year Ended

03/31/22

 

 

     

Year Ended

03/31/21

 

(a) 

     

Year Ended

03/31/20

 

(a) 

     

Year Ended

03/31/19

 

(a) 

                         

Net asset value, beginning of period

          $ 93.67       $ 102.39       $ 100.53       $ 50.14       $ 73.81       $ 75.49  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net investment income(b)

      0.98         1.62         1.07         1.12         1.10         1.20  

Net realized and unrealized gain(c)

      (4.53       (8.96       2.32         50.16         (23.45       (1.71
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net increase from investment operations

      (3.55       (7.34       3.39         51.28         (22.35       (0.51
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Distributions from net investment income(d)

      (0.92       (1.38       (1.53       (0.89       (1.32       (1.17
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net asset value, end of period

    $ 89.20       $ 93.67       $ 102.39       $ 100.53       $ 50.14       $ 73.81  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total Return(e)

                       

Based on net asset value

      (3.82 )%(f)        (7.08 )%        3.38       103.08 %(g)        (30.75 )%        (0.71 )% 
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Ratios to Average Net Assets(h)

                       

Total expenses

      0.18 %(i)        0.18       0.18       0.21       0.25       0.25
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net investment income

      2.11 %(i)        1.71       1.04       1.56       1.48       1.54
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Supplemental Data

                       

Net assets, end of period (000)

    $ 6,306,141       $ 6,983,348       $ 8,549,270       $ 8,806,141       $ 4,120,917       $ 6,155,204  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Portfolio turnover rate(j)

      18       54       42       52       53       38
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

 

(a) 

Per share amounts reflect a two-for-one stock split effective after the close of trading on October 16, 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)

Includes a payment received from an affiliate, which had no impact on the Fund’s total return.

(h)

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(i) 

Annualized.

(j)

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

42  

2 0 2 3   B L A C K R O C K   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)  

 

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

S&P 100

  Diversified

S&P 500 Growth

  Diversified

S&P 500 Value

  Diversified

S&P Small-Cap 600 Value

  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 Fund is 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, 2023, if any, are disclosed in the Statements of Assets and Liabilities.

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

Collateralization: If required by an exchange or counterparty agreement, the Funds may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments.

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

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

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

 

3.

INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

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

 

 

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

    43  


Notes to Financial Statements (unaudited)  (continued)

 

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.

 

   

Swap agreements are valued utilizing quotes received daily by independent pricing services or through brokers, which are derived using daily swap curves and models that incorporate a number of market data factors, such as discounted cash flows, trades and values of the underlying reference instruments.

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 Fund uses current market factors supplied by independent pricing services to value certain foreign instruments (“Systematic Fair Value Price”). The Systematic Fair Value Price is designed to value such foreign securities at fair value as of the close of trading on the NYSE, which follows the close of the local markets.

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

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

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

 

   

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

 

   

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

 

   

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

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

 

4.

SECURITIES AND OTHER INVESTMENTS

Securities Lending: Each Fund may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by an approved bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund or excess collateral is returned by the Fund, on the next business day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.

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

Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (each, an “MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the Funds, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left with a net amount payable to the defaulting party. However, bankruptcy

 

 

44  

2 0 2 3   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)

 

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:

 

         
    Securities        Cash    

Non-Cash

Collateral Received,

 

 

    Net  
iShares ETF and Counterparty     Loaned at Value        Collateral Received (a)           at Fair Value (a)      Amount (b) 

S&P 100

             

Barclays Bank PLC

    $ 510,191      $ (510,191      $     $  

UBS AG

      14,740,128        (14,740,128               
   

 

 

    

 

 

      

 

 

   

 

 

 
    $ 15,250,319      $ (15,250,319      $                             —     $  
   

 

 

    

 

 

      

 

 

   

 

 

 

S&P 500 Growth

             

Barclays Bank PLC

    $ 4,191,945      $ (4,191,945      $     $  

BNP Paribas SA

      29,920,998        (29,920,998               

BofA Securities, Inc.

      27,460,935        (27,460,935               

Citigroup Global Markets, Inc.

      4,732,020        (4,732,020               

Goldman Sachs & Co. LLC

      20,059,737        (20,059,737               

HSBC Bank PLC

      1,251,424        (1,251,424               

J.P. Morgan Securities LLC

      11,279,057        (11,279,057               

Jefferies LLC

      738,800        (738,800               

RBC Capital Market LLC

      4,939,363        (4,939,363               

Scotia Capital (USA), Inc.

      230,945        (230,945               

SG Americas Securities LLC

      2,128,590        (2,128,590               

Toronto-Dominion Bank

      12,127,031        (12,127,031               

UBS AG

      20,389,461        (20,225,190              164,271  

Wells Fargo Bank N.A.

      3,027,143        (3,027,143               
   

 

 

    

 

 

      

 

 

   

 

 

 
    $     142,477,449      $         (142,313,178        $     $   164,271  
   

 

 

    

 

 

      

 

 

   

 

 

 

S&P 500 Value

             

Barclays Bank PLC

    $ 52,348,492      $ (52,348,492      $     $  

Barclays Capital, Inc.

      2,948,968        (2,948,968               

BNP Paribas SA

      16,044,232        (16,044,232               

BofA Securities, Inc.

      596,330        (596,330               

Citadel Clearing LLC

      6,625,409        (6,625,409               

Citigroup Global Markets, Inc.

      156,023        (156,023               

Goldman Sachs & Co. LLC

      3,884,227        (3,884,227               

HSBC Bank PLC

      9,689,388        (9,689,388               

J.P. Morgan Securities LLC

      18,453,073        (18,453,073               

Jefferies LLC

      507,367        (507,367               

RBC Capital Market LLC

      26,279        (26,279               

Scotia Capital (USA), Inc.

      3,822,446        (3,822,446               

Scotia Capital, Inc.

      2,003        (2,003               

SG Americas Securities LLC

      4,540,382        (4,540,382               

Toronto-Dominion Bank

      205,541        (205,541               

UBS AG

      1,559,321        (1,548,147              11,174  

UBS Securities LLC

      115,842        (115,842               

Virtu Americas LLC

      124,704        (124,704               

Wells Fargo Bank N.A.

      1,730,195        (1,730,195               
   

 

 

    

 

 

      

 

 

   

 

 

 
    $ 123,380,222      $ (123,369,048      $     $ 11,174  
   

 

 

    

 

 

      

 

 

   

 

 

 

S&P Small-Cap 600 Value

             

Barclays Bank PLC

    $ 4,902,214      $ (4,902,214      $     $  

Barclays Capital, Inc.

      266,031        (266,031               

BMO Capital Markets Corp.

      986        (986               

BNP Paribas SA

      74,533,651        (74,533,651               

BofA Securities, Inc.

      18,980,153        (18,980,153               

Citadel Clearing LLC

      3,202,485        (3,202,485               

Citigroup Global Markets, Inc.

      3,184,415        (3,184,415               

Credit Suisse Securities (USA) LLC

      1,869        (1,869               

Goldman Sachs & Co. LLC

      70,821,192        (70,821,192               

HSBC Bank PLC

      690,732        (690,732               

J.P. Morgan Securities LLC

      64,081,100        (64,081,100               

Jefferies LLC

      2,584,838        (2,584,838               

Morgan Stanley

      98,280,424        (98,280,424               

National Financial Services LLC

      8,295,124        (8,295,124               

Natixis SA

      3,733,421        (3,733,421               

RBC Capital Market LLC

      32,700,901        (32,700,901               

Scotia Capital (USA), Inc.

      139,470        (139,470               

 

 

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

    45  


Notes to Financial Statements (unaudited)  (continued)

 

             
      Securities         Cash    

Non-Cash

Collateral Received,

 

 

    Net  
iShares ETF and Counterparty     Loaned at Value               Collateral Received (a)          at Fair Value (a)      Amount (b) 

S&P Small-Cap 600 Value (continued)

             

SG Americas Securities LLC

    $ 253,259       $ (253,259       $     $  

State Street Bank & Trust Co.

               25,574,270         (25,574,270              

Toronto-Dominion Bank

      2,645,900         (2,645,900              

UBS AG

      2,716,415         (2,716,415              

UBS Securities LLC

      217,551         (217,434             117  

Virtu Americas LLC

      279,450         (279,450              

Wells Fargo Bank N.A.

      193,584         (193,584              

Wells Fargo Securities LLC

      308,079         (308,079              
   

 

 

     

 

 

     

 

 

   

 

 

 
    $     418,587,514       $         (418,587,397     $                             —     $ 117  
   

 

 

     

 

 

     

 

 

   

 

 

 

 

  (a)

Collateral received, if any, in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Funds’ Statements of Assets and Liabilities.

  (b)

The market value of the loaned securities is determined as of September 30, 2023. 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 the 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 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.

Swaps: Swap contracts are entered into to manage exposure to issuers, markets and securities. Such contracts are agreements between the Fund and a counterparty to make periodic net payments on a specified notional amount or a net payment upon termination. Swap agreements are privately negotiated in the OTC market and may be entered into as a bilateral contract (“OTC swaps”) or centrally cleared (“centrally cleared swaps”). For OTC swaps, any upfront premiums paid and any upfront fees received are shown as swap premiums paid and swap premiums received, respectively, in the Statement of Assets and Liabilities and amortized over the term of the contract. The daily fluctuation in market value is recorded as unrealized appreciation (depreciation) on OTC Swaps in the Statement of Assets and Liabilities. Payments received or paid are recorded in the Statement of Operations as realized gains or losses, respectively. When an OTC swap is terminated, a realized gain or loss is recorded in the Statement of Operations equal to the difference between the proceeds from (or cost of) the closing transaction and the Fund’s basis in the contract, if any. Generally, the basis of the contract is the premium received or paid.

Total return swaps are entered into by the iShares S&P Small-Cap 600 Value to obtain exposure to a security or market without owning such security or investing directly in such market or to exchange the risk/return of one security or market (e.g., fixed-income) with another security or market (e.g., equity or commodity prices) (equity risk, commodity price risk and/or interest rate risk).

Total return swaps are agreements in which there is an exchange of cash flows whereby one party commits to make payments based on the total return (distributions plus capital gains/losses) of an underlying instrument, or basket of underlying instruments, in exchange for fixed or floating rate interest payments. If the total return of the instruments or index underlying the transaction exceeds or falls short of the offsetting fixed or floating interest rate obligation, the Fund receives payment from or makes a payment to the counterparty.

Certain total return swaps are designed to function as a portfolio of direct investments in long and short equity positions. This means that the Fund has the ability to trade in and out of these long and short positions within the swap and will receive the economic benefits and risks equivalent to direct investment in these positions, subject to certain adjustments due to events related to the counterparty. Benefits and risks include capital appreciation (depreciation), corporate actions and dividends received and paid, all of which are reflected in the swap’s market value. The market value also includes interest charges and credits (“financing fees”) related to the notional values of the long and short

 

 

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Notes to Financial Statements (unaudited)  (continued)

 

positions and cash balances within the swap. These interest charges and credits are based on a specified benchmark rate plus or minus a specified spread determined based upon the country and/or currency of the positions in the portfolio.

Positions within the swap and financing fees are reset periodically. During a reset, any unrealized appreciation (depreciation) on positions and accrued financing fees become available for cash settlement between the Fund and the counterparty. The amounts that are available for cash settlement are recorded as realized gains or losses in the Statement of Operations. Cash settlement in and out of the swap may occur at a reset date or any other date, at the discretion of the Fund and the counterparty, over the life of the agreement. Certain swaps have no stated expiration and can be terminated by either party at any time.

Swap transactions involve, to varying degrees, elements of interest rate, credit and market risks in excess of the amounts recognized in the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of the contractual terms in the agreements, and that there may be unfavorable changes in interest rates and/or market values associated with these transactions.

Master Netting Arrangements: In order to define its contractual rights and to secure rights that will help it mitigate its counterparty risk, a Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with its counterparties. An ISDA Master Agreement is a bilateral agreement between a Fund and a counterparty that governs certain OTC derivatives and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, a Fund may, under certain circumstances, offset with the counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default including the bankruptcy or insolvency of the counterparty. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy, insolvency or other events.

For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the mark-to-market amount for each transaction under such agreement, and comparing that amount to the value of any collateral currently pledged by a Fund and the counterparty.

Cash collateral that has been pledged to cover obligations of the Fund and cash collateral received from the counterparty, if any, is reported separately in the Statement of Assets and Liabilities as cash pledged as collateral and cash received as collateral, respectively. Non-cash collateral pledged by the Funds, if any, is noted in the Schedule of Investments. Generally, the amount of collateral due from or to a counterparty is subject to a certain minimum transfer amount threshold before a transfer is required, which is determined at the close of business of the Funds. Any additional required collateral is delivered to/pledged by the Funds on the next business day. Typically, the counterparty is not permitted to sell, re-pledge or use cash and non-cash collateral it receives. A Fund generally agrees not to use non-cash collateral that it receives but may, absent default or certain other circumstances defined in the underlying ISDA Master Agreement, be permitted to use cash collateral received. In such cases, interest may be paid pursuant to the collateral arrangement with the counterparty. To the extent amounts due to the Funds from the counterparty are not fully collateralized, each Fund bears the risk of loss from counterparty non-performance. Likewise, to the extent the Funds have delivered collateral to a counterparty and stand ready to perform under the terms of their agreement with such counterparty, each Fund bears the risk of loss from a counterparty in the amount of the value of the collateral in the event the counterparty fails to return such collateral. Based on the terms of agreements, collateral may not be required for all derivative contracts.

For financial reporting purposes, each Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements, if any, in the Statement of Assets and Liabilities.

 

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 Fees   

S&P 100

  0.20%

S&P 500 Growth

  0.18   

S&P 500 Value

  0.18   

S&P Small-Cap 600 Value

  0.18   

Distributor: BlackRock Investments, LLC (“BRIL”), 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.

ETF Servicing Fees: Each Fund has entered into an ETF Services Agreement with BRIL to perform certain order processing, Authorized Participant communications, and related services in connection with the issuance and redemption of Creation Units (“ETF Services”). BRIL is entitled to a transaction fee from Authorized Participants on each creation or redemption order for the ETF Services provided. The Funds do not pay BRIL for ETF Services.

Securities Lending: The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending, including any custodial costs. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities

 

 

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Notes to Financial Statements (unaudited)  (continued)

 

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 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.

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, 2023, the Funds paid BTC the following amounts for securities lending agent services:

 

 

 

 

iShares ETF

  Amounts  

 

 

S&P 100

  $ 4,855  

S&P 500 Growth

     333,480  

S&P 500 Value

    192,715  

S&P Small-Cap 600 Value

    359,409  

 

 

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, 2023, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:

 

 

 
iShares ETF   Purchases      Sales     

 

Net Realized 

Gain (Loss) 

 

 

 

S&P 100

  $ 33,575,048        $   10,463,121        $     (2,800,279)  

S&P 500 Growth

     233,574,740        62,244,403        (4,787,647)  

S&P 500 Value

    85,725,230        49,671,880        (28,025,079)  

S&P Small-Cap 600 Value

    342,483,225        76,357,300        (14,812,026)  

 

 

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.

 

7.

PURCHASES AND SALES

For the six months ended September 30, 2023, purchases and sales of investments, excluding short-term securities and in-kind transactions, were as follows:

 

 

 

 

iShares ETF

  Purchases      Sales  

 

 

S&P 100

  $ 130,818,294        $ 130,452,449  

S&P 500 Growth

    591,789,039        585,384,954  

S&P 500 Value

    420,607,201        407,768,277  

S&P Small-Cap 600 Value

    1,316,116,358        1,223,744,827  

 

 

 

 

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Notes to Financial Statements (unaudited)  (continued)

 

For the six months ended September 30, 2023, in-kind transactions were as follows:

 

 

 
iShares ETF  

 

In-kind

Purchases

    

In-kind

Sales

 

 

 

S&P 100

  $ 757,464,664      $ 436,899,112  

S&P 500 Growth

    3,397,367,110        1,817,612,484  

S&P 500 Value

    756,400,007        1,552,966,167  

S&P Small-Cap 600 Value

    62,248,127        412,456,728  

 

 

 

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, 2023, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.

As of March 31, 2023, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains and qualified late-year losses as follows:

 

 

 
iShares ETF  

 

Non-Expiring Capital

Loss Carryforwards

          

Qualified Late-Year

Ordinary Losses     

 

 

 

S&P 100

    $ 362,360,219         $  

S&P 500 Growth

    3,160,067,414                                    

S&P 500 Value

    1,566,023,135           

S&P Small-Cap 600 Value

    854,325,126          26,519,224  

 

 

As of September 30, 2023, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:

 

 

 
iShares ETF   Tax Cost     

Gross Unrealized

Appreciation

    

Gross Unrealized

Depreciation

    

 

Net Unrealized

Appreciation

(Depreciation)

 

 

 

S&P 100

  $ 7,200,347,206      $ 1,707,088,159      $ (451,082,669    $   1,256,005,490  

S&P 500 Growth

    25,415,525,105        9,673,894,480        (1,064,713,304      8,609,181,176  

S&P 500 Value

    23,733,364,669        3,023,838,812        (2,522,691,622      501,147,190  

S&P Small-Cap 600 Value

    7,453,557,083        539,123,867        (1,218,239,289      (679,115,422

 

 

 

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.

Infectious Illness Risk: An outbreak of an infectious illness, such as the COVID-19 pandemic, may adversely impact the economies of many nations and the global economy, and may impact individual issuers and capital markets in ways that cannot be foreseen. An infectious illness outbreak may result in, among other things, closed international borders, prolonged quarantines, supply chain disruptions, market volatility or disruptions and other significant economic, social and political impacts.

Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. A fund may invest in illiquid investments. An illiquid investment is any investment that a fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. A fund may experience difficulty in selling illiquid investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause a fund’s NAV to experience significant

 

 

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Notes to Financial Statements (unaudited)  (continued)

 

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 Fund’s exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statements of Assets and Liabilities, less any collateral held by the Funds.

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

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

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

The Funds invest a significant portion of their assets in securities of issuers located in the United States. A decrease in imports or exports, changes in trade regulations, inflation and/or an economic recession in the United States may have a material adverse effect on the U.S. economy and the securities listed on U.S. exchanges. Proposed and adopted policy and legislative changes in the United States may also have a significant effect on U.S. markets generally, as well as on the value of certain securities. Governmental agencies project that the United States will continue to maintain elevated public debt levels for the foreseeable future which may constrain future economic growth. Circumstances could arise that could prevent the timely payment of interest or principal on U.S. government debt, such as reaching the legislative “debt ceiling.” Such non-payment would result in substantial negative consequences for the U.S. economy and the global financial system. If U.S. relations with certain countries deteriorate, it could adversely affect issuers that rely on the United States for trade. The United States has also experienced increased internal unrest and discord. If these trends were to continue, they may have an adverse impact on the U.S. economy and the issuers in which the Funds invest.

The 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.

Significant Shareholder Redemption Risk: Certain shareholders may own or manage a substantial amount of fund shares and/or hold their fund investments for a limited period of time. Large redemptions of fund shares by these shareholders may force a fund to sell portfolio securities, which may negatively impact the fund’s NAV, increase the fund’s brokerage costs, and/or accelerate the realization of taxable income/gains and cause the fund to make additional taxable distributions to shareholders.

 

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

09/30/23

          

Year Ended

03/31/23

 
 

 

 

      

 

 

 
 iShares ETF   Shares             Amount             Shares             Amount  

S&P 100

                

Shares sold

    3,750,000        $ 759,990,565          6,650,000        $ 1,223,360,035  

Shares redeemed

    (2,150,000        (438,243,285        (8,450,000        (1,514,768,203
 

 

 

      

 

 

      

 

 

      

 

 

 
    1,600,000        $ 321,747,280          (1,800,000      $ (291,408,168
 

 

 

      

 

 

      

 

 

      

 

 

 

S&P 500 Growth

                

Shares sold

    48,450,000        $ 3,403,231,759          65,500,000        $ 4,123,265,045  

Shares redeemed

    (26,550,000        (1,820,701,328        (75,100,000        (4,921,945,281
 

 

 

      

 

 

      

 

 

      

 

 

 
    21,900,000        $ 1,582,530,431          (9,600,000      $ (798,680,236
 

 

 

      

 

 

      

 

 

      

 

 

 

 

 

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Notes to Financial Statements (unaudited)  (continued)

 

       
   

Six Months Ended

09/30/23

          

Year Ended

03/31/23

 
 

 

 

      

 

 

 
iShares ETF   Shares             Amount             Shares             Amount  

S&P 500 Value

                

Shares sold

    4,800,000        $ 759,381,347          67,300,000        $ 9,872,676,861  

Shares redeemed

    (9,950,000        (1,558,862,421        (72,400,000        (10,508,335,858
 

 

 

      

 

 

      

 

 

      

 

 

 
    (5,150,000      $ (799,481,074        (5,100,000      $ (635,658,997
 

 

 

      

 

 

      

 

 

      

 

 

 

S&P Small-Cap 600 Value

                

Shares sold

    650,000        $ 62,869,057          39,800,000        $ 3,828,377,839  

Shares redeemed

    (4,500,000        (415,524,209        (48,750,000        (4,569,448,166
 

 

 

      

 

 

      

 

 

      

 

 

 
    (3,850,000      $ (352,655,152        (8,950,000      $ (741,070,327
 

 

 

      

 

 

      

 

 

      

 

 

 

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 BRIL, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in shares sold in the table above.

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

 

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.

 

 

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Board Review and Approval of Investment Advisory Contract  

 

iShares S&P 100 ETF, iShares S&P Small-Cap 600 Value 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 the approval of the Investment Advisory Agreement between the Trust and BFA (the “Advisory Agreement”) on behalf of the Fund. The Board’s consideration entails a year-long process whereby the Board and its committees (composed solely of Independent Board Members) assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. The Independent Board Members requested, and BFA provided, such information as the Independent Board Members, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Agreement. At meetings on May 2, 2023 and May 15, 2023, a committee composed of all of the Independent Board Members (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or its independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June 7-8, 2023, the Board, including the Independent Board Members, reviewed the additional information provided by management in response to these requests.

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

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

In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for the one-year, three-year, five-year, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2022, to that of such relevant comparison fund(s) for the same periods. The Board noted that the Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including additional detailed information as requested by the Board, was also considered. The Board noted that the Fund generally performed in line with its underlying index over the relevant periods.

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

Nature, Extent and Quality of Services Provided: Based on management’s representations, including information about ongoing enhancements and initiatives with respect to the iShares business, including with respect to capital markets support and analysis, technology, portfolio management, product design and quality, compliance and risk management, global public policy and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Agreement for the coming year as compared with the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to support the iShares funds and their shareholders and have made significant investments into the iShares business. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund, including related programs implemented pursuant to regulatory requirements. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the May 2, 2023 meeting and throughout the year, and matters related to BFA’s portfolio compliance program and other compliance programs and services.

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

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

 

 

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Board Review and Approval of Investment Advisory Contract  (continued)

 

calculating and comparing profitability at individual fund levels is challenging. The Board discussed with management the sources of direct and ancillary revenue, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Fund. The Board also discussed BFA’s estimated profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below).

Based on this review, the Board concluded that the information considered with respect to the profits realized by BFA and its affiliates under the Advisory Agreement and from other relationships between the Fund and BFA and/or its affiliates, if any, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.

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

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

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates: The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds and institutional separate accounts (collectively, the “Other Accounts”). The Board acknowledged BFA’s representation that the iShares funds are fundamentally different investment vehicles from the Other Accounts.

The Board received detailed information regarding how the Other Accounts generally differ from the Fund, including in terms of the types of services and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded investment vehicle, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board noted that BFA and its affiliates do not manage Other Accounts 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 considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement and noted that the investment advisory fee rate under the Advisory Agreement for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.

Other Benefits to BFA and/or its Affiliates: The Board reviewed other benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, both direct and indirect, including, but not limited to, payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities, as applicable (which was included in the profit margins reviewed by the Board pursuant to BFA’s estimated profitability methodology), payment of advisory fees or other fees to BFA (or its affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services or other services, and BlackRock’s profile in the investment community. The Board further considered other direct benefits that might accrue to BFA, including the potential for reduction in the Fund’s expenses that are borne by BFA under the “all-inclusive” management fee arrangement, due in part to the size and scope of BFA’s investment operations servicing the Fund (and other funds in the iShares complex) as well as in response to a changing market environment. The Board also reviewed and considered information provided by BFA concerning authorized participant primary market order processing services that are provided by BlackRock Investments, LLC (“BRIL”), an affiliate of BFA, and paid for by authorized participants under the ETF Servicing Platform. The Board also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Agreement for the coming year.

Conclusion: Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Board Members, determined that the Fund’s investment advisory fee rate under the Advisory Agreement does not constitute a fee that is so disproportionately 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 S&P 500 Growth ETF, iShares S&P 500 Value 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 the approval of the Investment Advisory Agreement between the Trust and BFA (the “Advisory Agreement”) on behalf of the Fund. The Board’s consideration entails a year-long process whereby the Board and its committees (composed solely of Independent Board Members) assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet

 

 

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    53  


Board Review and Approval of Investment Advisory Contract  (continued)

 

applicable legal and regulatory requirements. The Independent Board Members requested, and BFA provided, such information as the Independent Board Members, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Agreement. At meetings on May 2, 2023 and May 15, 2023, a committee composed of all of the Independent Board Members (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or its independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June 7-8, 2023, the Board, including the Independent Board Members, reviewed the additional information provided by management in response to these requests.

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

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

In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for the one-year, three-year, five-year, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2022, to that of such relevant comparison fund(s) for the same periods. The Board noted that the Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including additional detailed information as requested by the Board, was also considered. The Board noted that the Fund generally performed in line with its underlying index over the relevant periods.

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

Nature, Extent and Quality of Services Provided: Based on management’s representations, including information about ongoing enhancements and initiatives with respect to the iShares business, including with respect to capital markets support and analysis, technology, portfolio management, product design and quality, compliance and risk management, global public policy and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Agreement for the coming year as compared with the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to support the iShares funds and their shareholders and have made significant investments into the iShares business. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund, including related programs implemented pursuant to regulatory requirements. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the May 2, 2023 meeting and throughout the year, and matters related to BFA’s portfolio compliance program and other compliance programs and services.

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

Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates: The Board reviewed information about the estimated profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Agreement), and other sources of revenue and expense to BFA and its affiliates from the Fund’s operations for the last calendar year. The Board reviewed BlackRock’s methodology for calculating estimated profitability of the iShares funds, noting that the 15(c) Committee and the Board had focused on the methodology and profitability presentation. The Board recognized that profitability may be affected by numerous factors, including, among other things, fee waivers by BFA, the types of funds managed, expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at individual fund levels is challenging. The Board discussed with management the sources of direct and ancillary revenue, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Fund. The Board also discussed BFA’s estimated profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below).

Based on this review, the Board concluded that the information considered with respect to the profits realized by BFA and its affiliates under the Advisory Agreement and from other relationships between the Fund and BFA and/or its affiliates, if any, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.

 

 

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

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

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates: The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds and institutional separate accounts (collectively, the “Other Accounts”). The Board acknowledged BFA’s representation that the iShares funds are fundamentally different investment vehicles from the Other Accounts.

The Board received detailed information regarding how the Other Accounts generally differ from the Fund, including in terms of the types of services and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded investment vehicle, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board noted that BFA and its affiliates 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 considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement and noted that the investment advisory fee rate under the Advisory Agreement for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed. The Board considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement and noted that the investment advisory fee rate under the Advisory Agreement for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.

Other Benefits to BFA and/or its Affiliates: The Board reviewed other benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, both direct and indirect, including, but not limited to, payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities, as applicable (which was included in the profit margins reviewed by the Board pursuant to BFA’s estimated profitability methodology), payment of advisory fees or other fees to BFA (or its affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services or other services, and BlackRock’s profile in the investment community. The Board further considered other direct benefits that might accrue to BFA, including the potential for reduction in the Fund’s expenses that are borne by BFA under the “all-inclusive” management fee arrangement, due in part to the size and scope of BFA’s investment operations servicing the Fund (and other funds in the iShares complex) as well as in response to a changing market environment. The Board also reviewed and considered information provided by BFA concerning authorized participant primary market order processing services that are provided by BlackRock Investments, LLC (“BRIL”), an affiliate of BFA, and paid for by authorized participants under the ETF Servicing Platform. The Board also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Agreement for the coming year.

Conclusion: Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Board Members, determined that the Fund’s investment advisory fee rate under the Advisory Agreement does not constitute a fee that is so disproportionately 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.

 

 

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Supplemental Information (unaudited)

 

Section 19(a) Notices

The amounts and sources of distributions reported are estimates and are being provided pursuant to regulatory requirements and are not being provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon each Fund’s investment experience during the year and may be subject to changes based on tax regulations. Shareholders will receive a Form 1099-DIV each calendar year that will inform them how to report these distributions for federal income tax purposes.

September 30, 2023

 

    

 

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

 

S&P 100

  $ 1.330995        $        $        $ 1.330995          100                   100

S&P Small-Cap 600 Value(a)

    0.868960                               0.048370                0.917330                95                             5               100  

 

(a) 

The Fund estimates that it has distributed more than its net investment income and net realized capital gains; therefore, a portion of the distribution may be a return of capital. A return of capital may occur, for example, when some or all of the shareholder’s investment in the Fund is returned to the shareholder. A return of capital does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. When distributions exceed total return performance, the difference will incrementally reduce the Fund’s net asset value per share.

Tailored Shareholder Reports for Open-End Mutual Funds and ETFs

Effective January 24, 2023, the SEC adopted rule and form amendments to require open-end mutual funds and ETFs to transmit concise and visually engaging streamlined annual and semiannual reports to shareholders that highlight key information. Other information, including financial statements, will no longer appear in a streamlined shareholder report but must be available online, delivered free of charge upon request, and filed on a semiannual basis on Form N-CSR. The rule and form amendments have a compliance date of July 24, 2024. At this time, management is evaluating the impact of these amendments on the shareholder reports for the Funds.

 

 

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General Information

 

Electronic Delivery

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

To enroll in electronic delivery:

 

   

Go to icsdelivery.com.

   

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

Householding

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

Availability of Quarterly Schedule of Investments

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

Availability of Proxy Voting Policies and Proxy Voting Records

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

A description of the Trust’s policies and procedures with respect to the disclosure of the Fund’s portfolio securities is available in the Fund Prospectus. The Fund discloses its portfolio holdings daily and provides information regarding its top holdings in Fund fact sheets at iShares.com.

 

 

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Glossary of Terms Used in this Report

 

Portfolio Abbreviation
NVS            Non-Voting Shares
REIT    Real Estate Investment Trust
S&P    Standard & Poor’s

 

 

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2 0 2 3   B L A C K R O C K   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


 

 

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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 S&P Dow Jones Indices LLC, nor does this company make any representations regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the company listed above.

©2022 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.

iS-SAR-301-0923

 

 

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