LOGO

  JULY 31, 2022

 

 

  

  

2022 Annual Report

 

 

 

iShares Trust

·  iShares Currency Hedged MSCI ACWI ex U.S. ETF | HAWX | NYSE Arca

·  iShares Currency Hedged MSCI EAFE ETF | HEFA | Cboe BZX

·  iShares Currency Hedged MSCI EAFE Small-Cap ETF | HSCZ | NYSE Arca

·  iShares MSCI ACWI ex U.S. ETF | ACWX | NASDAQ

·  iShares MSCI EAFE ETF | EFA | NYSE Arca

·  iShares MSCI EAFE Small-Cap ETF | SCZ | NASDAQ


The Markets in Review

Dear Shareholder,

The 12-month reporting period as of July 31, 2022 saw the emergence of significant challenges that disrupted the economic recovery and strong financial markets. The U.S. economy shrank in the first half of 2022, ending the run of robust growth that followed the reopening of global economies and the development of COVID-19 vaccines. Changes in consumer spending patterns and a tight labor market led to elevated inflation, which reached a 40-year high. Moreover, while the foremost effect of Russia’s invasion of Ukraine has been a severe humanitarian crisis, the ongoing war continued to present challenges for both investors and policymakers.

Equity prices fell as interest rates rose, particularly weighing on relatively high-valuation growth stocks and economically sensitive small-capitalization stocks. While both large- and small-capitalization U.S. stocks fell, declines for small-capitalization U.S. stocks were steeper. Both emerging market stocks and international equities from developed markets fell significantly, pressured by rising interest rates and a strengthening U.S. dollar.

The 10-year U.S. Treasury yield (which is inversely related to bond prices) rose notably during the reporting period as investors reacted to higher inflation and attempted to anticipate its impact on future interest rate changes. The corporate bond market also faced inflationary headwinds, and increasing uncertainty led to higher corporate bond spreads (the difference in yield between U.S. Treasuries and similarly-dated corporate bonds).

The U.S. Federal Reserve (the “Fed”), acknowledging that inflation is growing faster than expected, raised interest rates four times while indicating that additional rate hikes were likely. Furthermore, the Fed wound down its bond-buying programs and began to reduce its balance sheet. Continued high inflation and the Fed’s statements led many analysts to anticipate that interest rates have room to rise before peaking, although investors’ inflation expectations began to decline near the end of the period.

The horrific war in Ukraine has significantly clouded the outlook for the global economy, leading to major volatility in energy and metals markets. Sanctions on Russia, Europe’s top energy supplier, and general wartime disruption have magnified supply problems for key commodities. We believe elevated energy prices will continue to exacerbate inflationary pressure while also constraining economic growth. Combating inflation without stifling a recovery, while buffering against ongoing supply and price shocks, will be an especially challenging environment for setting effective monetary policy. Despite the likelihood of more rate increases on the horizon, we believe the Fed will ultimately err on the side of protecting employment, even at the expense of higher inflation. In the meantime, however, we believe that we are likely to see a period of slowing growth paired with relatively high inflation.

In this environment, while we favor an overweight to equities in the long-term, the market’s concerns over excessive rate hikes from central banks moderate our outlook. Furthermore, the energy shock and a deteriorating economic backdrop in China and Europe are likely to challenge corporate earnings, so we are underweight equities overall in the near-term. We take the opposite view on credit, where higher spreads provide near-term opportunities, while the likelihood of higher inflation leads us to take an underweight stance on credit in the long-term. We believe that investment-grade corporates, U.K. gilts, local-currency emerging market debt, and inflation-protected bonds (particularly in Europe) offer strong opportunities for a six- to twelve-month horizon.

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

Sincerely,

 

LOGO

Rob Kapito

President, BlackRock, Inc.

LOGO

Rob Kapito

President, BlackRock, Inc.

 

Total Returns as of July 31, 2022  
     
      6-Month         12-Month    
   

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

    (7.81)%       (4.64)%  
   

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

    (6.42)          (14.29)     
   

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

    (11.27)          (14.32)     
   

Emerging market equities
(MSCI Emerging Markets Index)

    (16.24)          (20.09)     
   

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

    0.21           0.22      
   

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

    (6.38)          (10.00)     
   

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

    (6.14)          (9.12)     
   

Tax-exempt municipal bonds
(Bloomberg Municipal Bond Index)

    (3.95)          (6.93)     
   

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

    (6.58)          (8.03)     
Past performance is not an indication of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.

 

 

 

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


Table of Contents

 

      Page

The Markets in Review

   2

Annual Report:

  

Market Overview

   4

Fund Summary

   5

About Fund Performance

   17

Disclosure of Expenses

   17

Schedules of Investments

   18

Financial Statements:

  

Statements of Assets and Liabilities

   90

Statements of Operations

   92

Statements of Changes in Net Assets

   94

Financial Highlights

   97

Notes to Financial Statements

   103

Report of Independent Registered Public Accounting Firm

   115

Important Tax Information

   116

Board Review and Approval of Investment Advisory Contract

   117

Supplemental Information

   127

Trustee and Officer Information

   129

General Information

   132

Glossary of Terms Used in this Report

   133

 

 

  3


Market Overview

 

iShares Trust

Global Market Overview

Global equity markets declined during the 12 months ended July 31, 2022 (“reporting period”). The MSCI ACWI, a broad global equity index that includes both developed and emerging markets, returned -10.48% in U.S. dollar terms for the reporting period.

For the first five months of the reporting period, economic recovery supported stocks in most regions of the world. The global economy continued to rebound from the impact of restrictions imposed at the beginning of the coronavirus pandemic, as mitigation and adaptation allowed most economic activity to continue. However, substantial challenges emerged at the beginning of 2022, which negatively affected stock prices. Inflation rose significantly in many countries, reducing consumers’ purchasing power and leading many central banks to tighten monetary policy. Russia’s invasion of Ukraine presented a further challenge to the global economy, disrupting important commodities markets.

The U.S. economy grew briskly over the final half of 2021, powered primarily by consumer spending. Record-high personal savings rates allowed consumers to spend at an elevated level, releasing pent-up demand for goods and services. Growth subsequently stalled in the first half of 2022, and the economy contracted amid lower inventories and faltering business investment. Despite the economic downturn, unemployment declined substantially, falling to 3.5% in July 2022 — identical to the pre-pandemic rate in February 2020. Although high inflation negatively impacted consumer sentiment, which declined significantly, consumer spending continued to increase.

Rising inflation led to a shift in policy from the U.S. Federal Reserve (“the Fed”). As the reporting period began, the Fed was using accommodative monetary policy to stimulate the economy. Short-term interest rates were kept at near-zero levels, and the Fed used bond-buying programs to stabilize debt markets. However, rising prices led the Fed to tighten monetary policy during the reporting period in an attempt to prevent runaway inflation. The Fed slowed and then ended its bond-buying activities, finally reversing course as it began to reduce its balance sheet in June 2022. In March 2022, the Fed began to raise short-term interest rates, followed by three more increases for a total increase of 225 basis points, the most rapid rise in decades. Interest rates rose significantly in response, leading to higher borrowing costs for businesses.

Stocks declined in Europe and economic growth stalled, with the Eurozone economy slowing substantially beginning in the fourth quarter of 2021. Significantly higher inflation and Russia’s invasion of Ukraine negatively impacted equities. Russia is an important trading partner with many European countries, and new sanctions imposed limits on certain types of trade with Russia. Investors became concerned that the sharp rise in energy prices during the reporting period would constrain economic growth, as Europe relies on imported energy for much of its industrial and heating needs. The European Central Bank (“ECB”) responded to elevated inflation by raising interest rates in July 2022, the first such increase in over a decade.

Despite relatively low inflation by global standards, Asia-Pacific stocks declined significantly. Chinese stocks faced significant headwinds amid regulatory interventions by the Chinese government and strict lockdowns following COVID-19 outbreaks. Japanese stocks also declined amid an economic contraction in the first quarter of 2022 and a sharp decline in the Japanese yen relative to the U.S. dollar. Emerging market stocks declined substantially, as higher interest rates and a strengthening U.S. dollar raised the cost of borrowing in many emerging economies.

 

 

4  

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


Fund Summary as of July 31, 2022    iShares® Currency Hedged MSCI ACWI ex U.S. ETF

 

Investment Objective

The iShares Currency Hedged MSCI ACWI ex U.S. ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization developed and emerging equities, excluding the U.S., while mitigating exposure to fluctuations between the value of the component currencies and the U.S. dollar, as represented by the MSCI ACWI ex USA 100% Hedged to USD Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. The Fund currently seeks to achieve its investment objective by investing a substantial portion of its assets in one underlying fund, the iShares MSCI ACWI ex U.S. ETF.

Performance

 

    Average Annual Total Returns           Cumulative Total Returns  
     1 Year      5 Years     

Since

Inception

           1 Year      5 Years     

Since

Inception

 

Fund NAV

    (5.03 )%       5.89      5.83       (5.03 )%       33.11      49.41

Fund Market

    (5.04      5.87        5.83         (5.04      33.03        49.44  

Index

    (5.54      5.89        5.80               (5.54      33.11        49.12  

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

 

LOGO

The inception date of the Fund was June 29, 2015. The first day of secondary market trading was July 1, 2015.

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

(02/01/22)

 

 

 

      

Ending

Account Value

(07/31/22)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

           

Beginning

Account Value

(02/01/22)

 

 

 

      

Ending

Account Value

(07/31/22)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

      

Annualized

Expense

Ratio

 

 

 

  $       1,000.00          $         942.80          $        0.14               $      1,000.00          $      1,024.60          $        0.15          0.03

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information. The fees and expenses of the underlying funds in which the Fund invests are not included in the Fund’s annualized expense ratio.

 

 

 

F U N D   S U M M A R Y

  5


Fund Summary as of July 31, 2022  (continued)    iShares® Currency Hedged MSCI ACWI ex U.S. ETF

 

Portfolio Management Commentary

International stocks declined significantly in U.S. dollar terms during the reporting period, as global growth cooled in an environment of high inflation, rising interest rates, and volatility in commodities markets. China was the leading detractor from the Index’s return as strict lockdowns to prevent the spread of COVID-19 weighed on economic activity. In the second quarter of 2022, China’s economy contracted for the first time since the coronavirus pandemic began.

Among Chinese stocks, the consumer discretionary sector detracted the most from the Index’s return, particularly the internet and direct marketing retail industry. Strong domestic and international competition slowed revenue growth and diminished earnings. Heightened regulatory scrutiny from the Chinese government contributed to investor uncertainty surrounding the industry. The slowing economy further weighed on Chinese e-commerce platforms, as unemployment increased and consumer confidence declined. The communication services sector was another source of weakness, constrained by new regulations that dampened revenue growth.

Stocks in Japan, which experienced two separate quarters of economic contraction during the reporting period, also detracted from the Index’s performance. The Bank of Japan kept short-term interest rates negative even as the Fed and other central banks raised interest rates. The industrials sector led Japanese detraction amid a notable slowdown in industrial production.

German stocks also detracted from the Index’s return, as weakness in the automobiles industry weighed on the consumer discretionary sector. Supply chain problems, exacerbated by a global semiconductor shortage and Russia’s invasion of Ukraine, led to production difficulties that constrained automobile sales.

South Korean stocks detracted amid cooling demand for certain consumer electronics, such as televisions and smartphones. In addition, product delays due to manufacturing issues pressured industry revenues. French stocks also detracted, particularly in the consumer discretionary sector, as investors became concerned about the impact of Chinese lockdowns on demand for luxury products.

In terms of currency performance, the U.S. dollar gained significantly against most foreign currencies during the reporting period. Four interest rate increases by the Fed made U.S.-based investments relatively more attractive, and geopolitical instability led some investors to move into U.S. dollars. The Japanese yen, the euro, and the British pound depreciated by approximately 18%, 14%, and 12% respectively against the U.S. dollar.

The negative performance of some foreign currencies meant hedging activity contributed to the Index’s return. A fully hedged investor seeks to bypass the currency fluctuations — both on the upside and on the downside — related to holding foreign-currency-denominated securities. The Index’s hedging activity offset the negative impact of foreign currency performance relative to the U.S. dollar, resulting in an Index return that was relatively close to the Index’s return measured in local currencies.

Portfolio Information

 

PORTFOLIO COMPOSITION  
   
Investment Type   Percent of
Net Assets
 
Investment Companies     100.1
Short-term Investments     0.2  
Forward foreign currency exchange contracts, net cumulative appreciation     0.1  
Other assets less liabilities     (0.4
SECTOR ALLOCATION (of the UNDERLYING FUND)

 

   
Sector   Percent of
Total Investment(a)
 

Financials

    20.0

Industrials

    12.4  

Consumer Discretionary

    11.5  

Information Technology

    11.5  

Health Care

    9.7  

Consumer Staples

    9.1  

Materials

    7.9  

Communication Services

    6.1  

Energy

    6.0  

Utilities

    3.4  

Real Estate

    2.4  

 

  (a) 

Excludes money market funds.

 

 

 

6  

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


Fund Summary as of July 31, 2022    iShares® Currency Hedged MSCI EAFE ETF

 

Investment Objective

The iShares Currency Hedged MSCI EAFE ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization equities in Europe, Australasia, and the Far East while mitigating exposure to fluctuations between the value of the component currencies and the U.S. dollar, as represented by the MSCI EAFE® 100% Hedged to USD Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. The Fund currently seeks to achieve its investment objective by investing a substantial portion of its assets in one underlying fund, the iShares MSCI EAFE ETF.

Performance

 

    Average Annual Total Returns           Cumulative Total Returns  
     1 Year      5 Years      Since
Inception
           1 Year      5 Years      Since
Inception
 

Fund NAV

    (0.29 )%       7.02      7.62       (0.29 )%       40.37      86.60

Fund Market

    (0.34      6.98        7.60         (0.34      40.13        86.40  

Index

    (0.78      6.99        7.61               (0.78      40.16        86.47  

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

 

LOGO

The inception date of the Fund was January 31, 2014. The first day of secondary market trading was February 4, 2014.

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
(02/01/22)
 
 
 
      

Ending
Account Value
(07/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
           

Beginning
Account Value
(02/01/22)
 
 
 
      

Ending
Account Value
(07/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
  $      1,000.00          $        977.20          $        0.15               $      1,000.00          $      1,024.60          $        0.15          0.03

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information. The fees and expenses of the underlying funds in which the Fund invests are not included in the Fund’s annualized expense ratio.

 

 

 

F U N D   S U M M A R Y

  7


Fund Summary as of July 31, 2022  (continued)    iShares® Currency Hedged MSCI EAFE ETF

 

Portfolio Management Commentary

Large- and mid-capitalization stocks in developed markets outside the U.S. and Canada declined in U.S. dollar terms during the reporting period, as higher inflation, rising interest rates, and weakening global economies sent markets lower. Russia’s invasion of Ukraine also increased investor uncertainty, as international sanctions on Russia disrupted global economic activity, unsettled commodities markets, and constrained companies that had connections to Russia. The combination of resilient consumer demand and persistent supply chain disruptions contributed to higher inflation in many countries. This inflationary pressure led some of the world’s central banks to adopt less accommodative stances regarding monetary policy. The Chinese government’s imposition of new lockdowns to quell the spread of COVID-19 pressured Asian stocks.

Japanese stocks, particularly in the industrials sector, detracted the most from the Index’s return. Japan’s gross domestic product shrank in the first quarter as supply chain disruptions, particularly in China, dampened exports and production. Japanese exports to China, the country’s largest export market, slowed amid China’s lockdown measures to limit the spread of the coronavirus, which idled factories and warehouses and slowed deliveries of goods.

European stocks, particularly in Germany, France, and the Netherlands also detracted from the Index’s return. The war in Ukraine disrupted supply chains, weakened the economic outlook, and contributed to record-high inflation across the Eurozone as commodities and oil prices soared. The ECB raised interest rates in July 2022 for the first time in 11 years to fight growing inflation.

In terms of currency performance, the U.S. dollar gained significantly relative to most foreign currencies during the reporting period. Four interest rate increases by the Fed made U.S.-based investments relatively more attractive, and geopolitical instability led some investors to move into U.S. dollars. The Japanese yen, the euro, and the British pound depreciated by approximately 18%, 14%, and 12%, respectively, against the U.S. dollar.

The negative performance of some foreign currencies meant hedging activity contributed to the Index’s return. A fully hedged investor seeks to bypass the currency fluctuations — both on the upside and on the downside — related to holding foreign-currency-denominated securities. The Index’s hedging activity offset the negative impact of foreign currency performance relative to the U.S. dollar, resulting in an Index return that was relatively close to the Index’s return measured in local currencies.

Portfolio Information

 

PORTFOLIO COMPOSITION  
   
Investment Type   Percent of
Net Assets
 
Investment Companies     100.1
Short-term Investments     0.1  
Forward foreign currency exchange contracts, net cumulative appreciation     0.1  
Other assets less liabilities     (0.3
SECTOR ALLOCATION (of the UNDERLYING FUND)

 

   
Sector   Percent of
Total Investment(a)
 

Financials

    17.2

Industrials

    15.4  

Health Care

    13.4  

Consumer Discretionary

    11.6  

Consumer Staples

    10.9  

Information Technology

    8.2  

Materials

    7.4  

Communication Services

    4.9  

Energy

    4.6  

Utilities

    3.5  

Real Estate

    2.9  

 

  (a) 

Excludes money market funds.

 

 

 

8  

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


Fund Summary as of July 31, 2022      iShares® Currency Hedged MSCI EAFE Small-Cap ETF

 

Investment Objective

The iShares Currency Hedged MSCI EAFE Small-Cap ETF (the “Fund”) seeks to track the investment results of an index composed of small-capitalization developed market equities, excluding the U.S. and Canada, while mitigating exposure to fluctuations between the value of the component currencies and the U.S. dollar, as represented by the MSCI EAFE Small-Cap 100% Hedged to USD Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. The Fund currently seeks to achieve its investment objective by investing a substantial portion of its assets in one underlying fund, the iShares MSCI EAFE Small-Cap ETF.

Performance

 

    Average Annual Total Returns           Cumulative Total Returns  
     1 Year      5 Years      Since
Inception
           1 Year      5 Years      Since
Inception
 

Fund NAV

    (6.97 )%       6.60      7.81       (6.97 )%       37.68      70.47

Fund Market

    (7.11      6.58        7.79         (7.11      37.51        70.21  

Index

    (7.45      6.74        7.85               (7.45      38.53        70.83  

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

 

LOGO

The inception date of the Fund was June 29, 2015. The first day of secondary market trading was July 1, 2015.

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
(02/01/22)
 
 
 
      

Ending
Account Value
(07/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
           

Beginning
Account Value
(02/01/22)
 
 
 
      

Ending
Account Value
(07/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
  $      1,000.00          $        956.30          $        0.15               $      1,000.00          $      1,024.60          $        0.15          0.03

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information. The fees and expenses of the underlying funds in which the Fund invests are not included in the Fund’s annualized expense ratio.

 

 

 

F U N D   S U M M A R Y

  9


Fund Summary as of July 31, 2022  (continued)    iShares® Currency Hedged MSCI EAFE Small-Cap ETF

 

Portfolio Management Commentary

Small-capitalization developed market stocks outside the U.S. and Canada declined in U.S. dollar terms during the reporting period, as higher inflation, rising interest rates, and weakening global economies sent markets lower. Russia’s invasion of Ukraine also increased investor uncertainty, as international sanctions on Russia disrupted global economic activity, unsettled commodities markets, and constrained companies that had connections to Russia. The combination of resilient consumer demand and persistent supply chain disruptions contributed to higher inflation in many countries. This inflationary pressure led some of the world’s central banks to adopt less accommodative stances regarding monetary policy. The Chinese government’s imposition of new lockdowns to quell the spread of COVID-19 pressured Asian stocks.

Japanese stocks detracted the most from the Index’s return. Japan’s gross domestic product shrank in the first quarter as supply chain disruptions, particularly in China, dampened exports and production. Japanese exports to China, the country’s largest export market, slowed amid China’s measures to limit the spread of the coronavirus, which idled factories and warehouses and slowed deliveries of goods.

Stocks in the U.K., particularly in the consumer discretionary sector, also detracted from the Index’s return. Stocks of several consumer discretionary companies dropped on diminished sales outlooks due to falling levels of consumer confidence, inflation rates at 40-year highs, and slowing economic growth. The Bank of England raised interest rates in December 2021 for the first time since the start of the coronavirus pandemic and continued to raise rates in 2022 to the highest levels in 13 years. Stocks in Sweden and Germany also detracted from the Index’s performance amid high inflation.

In terms of currency performance, the U.S. dollar gained significantly relative to most foreign currencies during the reporting period. Four interest rate increases by the Fed made U.S.-based investments relatively more attractive, and geopolitical instability led some investors to move into U.S. dollars. The Japanese yen, the euro, and the British pound depreciated by approximately 18%, 14%, and 12%, respectively, against the U.S. dollar.

The negative performance of some foreign currencies meant hedging activity contributed to the Index’s return. A fully hedged investor seeks to bypass the currency fluctuations — both on the upside and on the downside — related to holding foreign-currency-denominated securities. The Index’s hedging activity offset the negative impact of foreign currency performance relative to the U.S. dollar, resulting in an Index return that was relatively close to the Index’s return measured in local currencies.

Portfolio Information

 

PORTFOLIO COMPOSITION  
   
Investment Type   Percent of
Net Assets
 
Investment Companies     100.1
Short-term Investments     0.1  
Forward foreign currency exchange contracts, net cumulative depreciation     (0.4
Other assets less liabilities     0.2  
SECTOR ALLOCATION (of the UNDERLYING FUND)

 

   
Sector   Percent of
Total Investment(a)
 

Industrials

    22.6

Real Estate

    12.1  

Consumer Discretionary

    11.9  

Financials

    11.1  

Information Technology

    9.5  

Materials

    9.5  

Health Care

    7.0  

Consumer Staples

    6.2  

Communication Services

    4.2  

Utilities

    3.3  

Energy

    2.6  

 

  (a) 

Excludes money market funds.

 

 

 

10  

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Fund Summary as of July 31, 2022    iShares® MSCI ACWI ex U.S. ETF

 

Investment Objective

The iShares MSCI ACWI ex U.S. ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization non-U.S. equities, as represented by the MSCI ACWI ex USA Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

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

Fund NAV

    (15.04 )%       2.40      4.96       (15.04 )%       12.59      62.30

Fund Market

    (14.92      2.41        5.01         (14.92      12.66        63.04  

Index

    (15.26      2.45        5.04               (15.26      12.84        63.49  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO

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

Expense Example

 

Actual           Hypothetical 5% Return           

 

 

     

 

 

      
 

Beginning
Account Value
(02/01/22)
 
 
 
      

Ending
Account Value
(07/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
           

Beginning
Account Value
(02/01/22)
 
 
 
      

Ending
Account Value
(07/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
  $      1,000.00          $          870.00          $        1.48               $      1,000.00          $      1,023.20          $        1.61          0.32

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

 

F U N D   S U M M A R Y

  11


Fund Summary as of July 31, 2022  (continued)    iShares® MSCI ACWI ex U.S. ETF

 

Portfolio Management Commentary

International stocks declined significantly during the reporting period, as global growth cooled in an environment of high inflation, rising interest rates, and volatility in commodities markets. China was the leading detractor from the Index’s return as strict lockdowns to prevent the spread of COVID-19 weighed on economic activity. In the second quarter of 2022, China’s economy contracted for the first time since the coronavirus pandemic began.

Among Chinese stocks, the consumer discretionary sector detracted the most from the Index’s return, particularly the internet and direct marketing retail industry. Strong domestic and international competition slowed revenue growth and diminished earnings. Heightened regulatory scrutiny from the Chinese government contributed to investor uncertainty surrounding the industry. The slowing economy further weighed on Chinese e-commerce platforms, as unemployment increased and consumer confidence declined. The communication services sector was another source of weakness, constrained by new regulations that dampened revenue growth.

Stocks in Japan, which experienced two separate quarters of economic contraction during the reporting period, also detracted from the Index’s performance. The Bank of Japan kept short-term interest rates negative even as the Fed and other central banks raised interest rates. This difference led to a substantial decrease in the Japanese yen’s value relative to the U.S. dollar, reducing the value of Japanese assets denominated in U.S. dollars. The industrials sector led Japanese detraction amid a notable slowdown in industrial production. Although currency weakness has historically aided industrial exporters, recent increases in offshore production have limited the benefits.

German stocks also detracted from the Index’s return, as weakness in the automobiles industry weighed on the consumer discretionary sector. Supply chain problems, exacerbated by a global semiconductor shortage and Russia’s invasion of Ukraine, led to production difficulties that constrained automobile sales.

South Korean stocks detracted amid cooling demand for certain consumer electronics, such as televisions and smartphones. In addition, product delays due to manufacturing issues pressured industry revenues. French stocks also detracted, particularly in the consumer discretionary sector, as investors became concerned about the impact of Chinese lockdowns on demand for luxury products.

Portfolio Information

 

SECTOR ALLOCATION
   

Sector

   

Percent of

Total Investments

 

(a) 

Financials

    20.0

Industrials

    12.4  

Consumer Discretionary

    11.5  

Information Technology

    11.5  

Health Care

    9.7  

Consumer Staples

    9.1  

Materials

    7.9  

Communication Services

    6.1  

Energy

    6.0  

Utilities

    3.4  

Real Estate

    2.4  

GEOGRAPHIC ALLOCATION

 

   

Country/Geographic Region

   

Percent of

Total Investments

 

(a) 

Japan

    14.2

United Kingdom

    9.5  

China

    9.0  

Canada

    8.2  

France

    7.0  

Switzerland

    6.8  

Australia

    5.5  

Germany

    4.8  

Taiwan

    4.2  

India

    4.0  

 

  (a) 

Excludes money market funds.

 

 

 

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Fund Summary as of July 31, 2022    iShares® MSCI EAFE ETF

 

Investment Objective

The iShares MSCI EAFE ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization developed market equities, excluding the U.S. and Canada, as represented by the MSCI EAFE Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

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

Fund NAV

    (13.84 )%       2.74      5.81       (13.84 )%       14.49      75.88

Fund Market

    (13.79      2.72        5.88         (13.79      14.36        77.12  

Index

    (14.32      2.61        5.79               (14.32      13.78        75.57  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

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

Expense Example

 

Actual           Hypothetical 5% Return           

 

 

     

 

 

      
 

Beginning
Account Value
(02/01/22)
 
 
 
      

Ending
Account Value
(07/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
           

Beginning
Account Value
(02/01/22)
 
 
 
      

Ending
Account Value
(07/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
  $      1,000.00          $        884.70          $        1.54               $      1,000.00          $      1,023.20          $        1.66          0.33

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

 

F U N D   S U M M A R Y

  13


Fund Summary as of July 31, 2022  (continued)    iShares® MSCI EAFE ETF

 

Portfolio Management Commentary

Large- and mid-capitalization stocks in developed markets outside the U.S. and Canada declined during the reporting period, as higher inflation, rising interest rates, and weakening global economies sent markets lower. Russia’s invasion of Ukraine also increased investor uncertainty, as international sanctions on Russia disrupted global economic activity, unsettled commodities markets, and constrained companies that had connections to Russia. The combination of resilient consumer demand and persistent supply chain disruptions contributed to higher inflation in many countries. This inflationary pressure led some of the world’s central banks to adopt less accommodative stances regarding monetary policy. The Chinese government’s imposition of new lockdowns to quell the spread of COVID-19 pressured Asian stocks.

Japanese stocks, particularly in the industrials sector, detracted the most from the Index’s return. Several companies in the industrials sector posted strong earnings during the reporting period, but they detracted from the Index’s performance due primarily to the weakness of the Japanese yen relative to the U.S. dollar. The Japanese yen hit a 24-year low in July 2022 against the U.S. dollar, weakening returns from the country as the Bank of Japan continued its low interest rate policy while other central banks raised interest rates. Japan’s gross domestic product shrank in the first quarter as supply chain disruptions, particularly in China, dampened exports and production. Japanese exports to China, the country’s largest export market, slowed amid China’s lockdown measures to limit the spread of the coronavirus, which idled factories and warehouses and slowed deliveries of goods.

European stocks, particularly in Germany, France, and the Netherlands also detracted from the Index’s return. The weakening euro, which reached parity with the U.S. dollar for the first time in 20 years, devalued returns from the continent. In addition, the war in Ukraine disrupted supply chains, weakened the economic outlook, and contributed to record-high inflation across the Eurozone as commodities and oil prices soared. The ECB raised interest rates in July 2022 for the first time in 11 years to fight growing inflation.

Portfolio Information

 

SECTOR ALLOCATION

 
   

Sector

   

Percent of

Total Investments

 

(a) 

Financials

    17.2

Industrials

    15.4  

Health Care

    13.4  

Consumer Discretionary

    11.6  

Consumer Staples

    10.9  

Information Technology

    8.2  

Materials

    7.4  

Communication Services

    4.9  

Energy

    4.6  

Utilities

    3.5  

Real Estate

    2.9  
GEOGRAPHIC ALLOCATION

 

   

Country/Geographic Region

   

Percent of

Total Investments

 

(a) 

Japan

    22.4

United Kingdom

    15.0  

France

    11.1  

Switzerland

    10.7  

Australia

    8.7  

Germany

    7.5  

Netherlands

    4.5  

Sweden

    3.4  

Hong Kong

    3.1  

Denmark

    2.8  

 

  (a) 

Excludes money market funds.

 

 

 

14  

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Fund Summary as of July 31, 2022      iShares® MSCI EAFE Small-Cap ETF

 

Investment Objective

The iShares MSCI EAFE Small-Cap ETF (the “Fund”) seeks to track the investment results of an index composed of small-capitalization developed market equities, excluding the U.S. and Canada, as represented by the MSCI EAFE Small Cap Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

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

Fund NAV

    (19.80 )%       2.33      7.81       (19.80 )%       12.21      112.14

Fund Market

    (19.75      2.28        7.90         (19.75      11.95        113.90  

Index

    (20.31      2.30        7.83               (20.31      12.03        112.51  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

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

Expense Example

 

Actual           Hypothetical 5% Return           

 

 

     

 

 

      
 

Beginning
Account Value
(02/01/22)
 
 
 
      

Ending
Account Value
(07/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
           

Beginning
Account Value
(02/01/22)
 
 
 
      

Ending
Account Value
(07/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
  $      1,000.00          $          864.90          $        1.85               $      1,000.00          $      1,022.80          $        2.01          0.40

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

 

F U N D   S U M M A R Y

  15


Fund Summary as of July 31, 2022  (continued)    iShares® MSCI EAFE Small-Cap ETF

 

Portfolio Management Commentary

Small-capitalization developed market stocks outside the U.S. and Canada declined during the reporting period, as higher inflation, rising interest rates, and weakening global economies sent markets lower. Russia’s invasion of Ukraine also increased investor uncertainty, as international sanctions on Russia disrupted global economic activity, unsettled commodities markets, and constrained companies that had connections to Russia. The combination of resilient consumer demand and persistent supply chain disruptions contributed to higher inflation in many countries. This inflationary pressure led some of the world’s central banks to adopt less accommodative stances regarding monetary policy. The Chinese government’s imposition of new lockdowns to quell the spread of COVID-19 pressured Asian stocks.

Japanese stocks detracted the most from the Index’s return, due primarily to the weakness of the Japanese yen relative to the U.S. dollar. The Japanese yen hit a 24-year low in July 2022 against the U.S. dollar, weakening performance from the country as the Bank of Japan continued its low interest rate policy while some other central banks raised interest rates. Japan’s gross domestic product shrank in the first quarter as supply chain disruptions, particularly in China, dampened exports and production. Japanese exports to China, the country’s largest export market, slowed amid China’s measures to limit the spread of the coronavirus, which idled factories and warehouses and slowed deliveries of goods.

Stocks in the U.K., particularly in the consumer discretionary sector, also detracted from the Index’s return. Stocks of several consumer discretionary companies dropped on diminished sales outlooks due to falling levels of consumer confidence, inflation rates at 40-year highs, and slowing economic growth. The Bank of England raised interest rates in December 2021 for the first time since the start of the coronavirus pandemic and continued to raise rates in 2022 to the highest levels in 13 years. Additionally, the British pound weakened against the U.S. dollar, which diminished returns from the U.K. Stocks in Sweden and Germany also detracted from the Index’s performance amid high inflation and the depreciation of the Swedish krona and the euro relative to the U.S. dollar.

Portfolio Information

 

SECTOR ALLOCATION
   

Sector

   
Percent of
Total Investments
 
(a) 

Industrials

    22.6

Real Estate

    12.1  

Consumer Discretionary

    11.9  

Financials

    11.1  

Materials

    9.5  

Information Technology

    9.5  

Health Care

    7.0  

Consumer Staples

    6.2  

Communication Services

    4.2  

Utilities

    3.3  

Energy

    2.6  
GEOGRAPHIC ALLOCATION

 

   

Country/Geographic Region

   
Percent of
Total Investments
 
(a) 

Japan

    30.0

United Kingdom

    16.5  

Australia

    10.4  

Sweden

    5.9  

Switzerland

    4.7  

Germany

    4.4  

France

    3.5  

Israel

    3.2  

Italy

    2.7  

Norway

    2.3  

 

  (a) 

Excludes money market funds.

 

 

 

16  

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About Fund Performance

 

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

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. Beginning August 10, 2020, the price used to calculate market return (“Market Price”) is the closing price. Prior to August 10, 2020, Market Price was determined using the midpoint between the highest bid and the lowest ask on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not trade in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary market trading in shares of the fund, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.

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

Disclosure of Expenses

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

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

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

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

 

 

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

  17


Schedule of Investments

July 31, 2022

  

iShares® Currency Hedged MSCI ACWI ex U.S. ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

 

Investment Companies

   

Exchange-Traded Funds — 100.1%

   

iShares MSCI ACWI ex U.S. ETF(a)

    2,588,398     $   120,412,275  
   

 

 

 

Total Investment Companies
(Cost: $129,874,651)

      120,412,275  
   

 

 

 

Short-Term Securities

   

Money Market Funds — 0.2%

   

BlackRock Cash Funds: Treasury, SL Agency Shares, 1.81%(a)(b)

    210,000       210,000  
   

 

 

 

Total Short-Term Securities — 0.2%
(Cost: $210,000)

      210,000  
   

 

 

 

Total Investments in Securities — 100.3%
(Cost: $130,084,651)

      120,622,275  

Liabilities in Excess of Other Assets — (0.3)%

 

    (321,837
   

 

 

 

Net Assets — 100.0%

    $ 120,300,438  
   

 

 

 

 

(a) 

Affiliate of the Fund.

(b) 

Annualized 7-day yield as of period end.

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended July 31, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

                   
Affiliated Issuer  

Value at

07/31/21

   

Purchases

at Cost

   

Proceeds

from Sale

   

Net Realized

Gain (Loss)

   

Change in

Unrealized

Appreciation

(Depreciation)

   

Value at

07/31/22

   

Shares

Held at

07/31/22

    Income    

Capital

Gain

Distributions

from

Underlying

Funds

 

BlackRock Cash Funds: Treasury, SL Agency Shares

  $ 70,000     $ 140,000 (a)    $     $     $     $ 210,000       210,000     $ 1,219     $  

iShares MSCI ACWI ex U.S. ETF

    120,314,149       50,182,632       (25,268,760     1,325,971       (26,141,717     120,412,275       2,588,398       4,199,117        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ 1,325,971     $ (26,141,717   $ 120,622,275       $ 4,200,336     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 

Derivative Financial Instruments Outstanding as of Period End

Forward Foreign Currency Exchange Contracts

 

         
Currency Purchased        Currency Sold      Counterparty   Settlement Date        Unrealized
Appreciation
(Depreciation)
 
AUD      8,317,000        USD      5,803,636      Bank of America N.A.     08/03/22        $ 7,454  
AUD      554,000        USD      381,048      Deutsche Bank Securities Inc.     08/03/22          6,032  
AUD      145,000        USD      98,565      Morgan Stanley & Co. International PLC     08/03/22          2,747  
BRL      9,623,000        USD      1,850,395      Morgan Stanley & Co. International PLC     08/03/22          8,894  
CAD      12,132,000        USD      9,468,139      BNP Paribas SA     08/03/22          5,889  
CAD      965,000        USD      748,067      Bank of America N.A.     08/03/22          5,514  
CAD      212,000        USD      162,607      Morgan Stanley & Co. International PLC     08/03/22          2,946  
CHF      7,202,000        USD      7,561,988      Bank of America N.A.     08/03/22          4,330  
CHF      635,000        USD      662,932      Morgan Stanley & Co. International PLC     08/03/22          4,190  
CLP      233,389,000        USD      257,087      Morgan Stanley & Co. International PLC     08/03/22          1,871  
CNH      13,072,000        USD      1,935,911      Citibank N.A.     08/03/22          331  
DKK      14,114,000        USD      1,933,095      Bank of America N.A.     08/03/22          4,816  
EUR      21,738,000        USD      22,166,978      BNP Paribas SA     08/03/22          51,850  

 

 

18  

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Schedule of Investments   (continued)

July 31, 2022

   iShares® Currency Hedged MSCI ACWI ex U.S. ETF

 

Forward Foreign Currency Exchange Contracts (continued)

 

         
Currency Purchased        Currency Sold      Counterparty   Settlement Date        Unrealized
Appreciation
(Depreciation)
 
GBP      9,569,000        USD      11,644,982      Bank of America N.A.     08/03/22        $ 8,430  
GBP      285,000        USD      346,292      Deutsche Bank Securities Inc.     08/03/22          790  
GBP      167,000        USD      199,781      Morgan Stanley & Co. International PLC     08/03/22          3,597  
ILS      1,272,000        USD      373,086      Bank of America N.A.     08/03/22          1,144  
ILS      22,000        USD      6,274      Morgan Stanley & Co. International PLC     08/03/22          198  
INR      351,563,000        USD      4,431,743      Morgan Stanley & Co. International PLC     08/03/22          3,063  
JPY      38,227,000        USD      281,862      Citibank N.A.     08/03/22          4,825  
JPY      37,587,000        USD      277,212      Morgan Stanley & Co. International PLC     08/03/22          4,675  
JPY      2,187,414,000        USD      16,366,734      State Street Bank and Trust Co.     08/03/22          37,981  
KRW      6,335,953,000        USD      4,850,300      Morgan Stanley & Co. International PLC     08/03/22          24,549  
MXN      261,000        USD      12,645      Morgan Stanley & Co. International PLC     08/03/22          156  
NOK      6,069,000        USD      627,801      Bank of America N.A.     08/03/22          148  
NOK      107,000        USD      10,638      Morgan Stanley & Co. International PLC     08/03/22          434  
NZD      209,000        USD      131,055      Bank of America N.A.     08/03/22          386  
NZD      18,000        USD      11,189      Citibank N.A.     08/03/22          131  
NZD      4,000        USD      2,468      Morgan Stanley & Co. International PLC     08/03/22          48  
SEK      25,158,000        USD      2,467,794      Bank of America N.A.     08/03/22          7,973  
SEK      2,172,000        USD      211,129      Morgan Stanley & Co. International PLC     08/03/22          2,615  
SGD      1,269,000        USD      917,655      Bank of America N.A.     08/03/22          980  
SGD      19,000        USD      13,653      Citibank N.A.     08/03/22          101  
SGD      22,000        USD      15,654      Morgan Stanley & Co. International PLC     08/03/22          272  
TWD      151,758,000        USD      5,050,183      Morgan Stanley & Co. International PLC     08/03/22          17,019  
USD      14,682        AUD      21,000      Deutsche Bank Securities Inc.     08/03/22          9  
USD      256,031        CNH      1,717,000      Bank of America N.A.     08/03/22          1,706  
USD      1,736,257        CNH      11,645,000      JPMorgan Chase Bank N.A.     08/03/22          11,384  
USD      4,742        CNH      32,000      Morgan Stanley & Co. International PLC     08/03/22          2  
USD      29,360        DKK      209,000      Bank of America N.A.     08/03/22          663  
USD      2,048,975        DKK      14,547,000      HSBC Bank PLC     08/03/22          51,611  
USD      55,260        EUR      54,000      Morgan Stanley & Co. International PLC     08/03/22          66  
USD      24,660,692        EUR      23,544,000      State Street Bank and Trust Co.     08/03/22          595,916  
USD      101,111        GBP      83,000      UBS AG     08/03/22          31  
USD      1,534,075        HKD      12,027,000      Bank of America N.A.     08/03/22          1,900  
USD      26,628        HKD      209,000      HSBC Bank PLC     08/03/22          3  
USD      10,173,595        HKD      79,757,000      JPMorgan Chase Bank N.A.     08/03/22          12,984  
USD      28,302        HKD      222,000      Morgan Stanley & Co. International PLC     08/03/22          21  
USD      4,525,214        INR      358,555,000      Morgan Stanley & Co. International PLC     08/03/22          2,207  
USD      5,218,278        KRW      6,762,141,000      Morgan Stanley & Co. International PLC     08/03/22          15,522  
USD      805,294        MXN      16,333,000      Deutsche Bank Securities Inc.     08/03/22          4,232  
USD      1,830        MXN      37,000      State Street Bank and Trust Co.     08/03/22          15  
USD      533,219        MYR      2,350,000      Morgan Stanley & Co. International PLC     08/03/22          5,180  
USD      1,556        THB      57,000      Barclays Bank PLC     08/03/22          7  
USD      9,003        THB      323,000      HSBC Bank PLC     08/03/22          227  
USD      658,997        THB      23,285,000      JPMorgan Chase Bank N.A.     08/03/22          26,375  
USD      1,573        THB      57,000      UBS AG     08/03/22          25  
USD      451        TRY      8,000      Citibank N.A.     08/03/22          6  
USD      99,673        TRY      1,698,000      Deutsche Bank Securities Inc.     08/03/22          5,094  
USD      678        TRY      12,000      HSBC Bank PLC     08/03/22          10  
USD      5,496,743        TWD      163,101,000      Morgan Stanley & Co. International PLC     08/03/22          50,798  
USD      1,277,675        ZAR      20,998,000      Bank of America N.A.     08/03/22          14,416  
USD      1,899        ZAR      31,000      UBS AG     08/03/22          34  
ZAR      20,167,000        USD      1,210,394      Citibank N.A.     08/03/22          2,872  
AUD      70,000        USD      48,932      Morgan Stanley & Co. International PLC     09/06/22          4  
BRL      48,000        USD      9,163      Morgan Stanley & Co. International PLC     09/06/22          18  

 

 

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

    19  


Schedule of Investments   (continued)

July 31, 2022

   iShares® Currency Hedged MSCI ACWI ex U.S. ETF

 

Forward Foreign Currency Exchange Contracts (continued)

 

         
Currency Purchased        Currency Sold      Counterparty   Settlement Date        Unrealized
Appreciation
(Depreciation)
 
CAD      99,000        USD      77,222      Barclays Bank PLC     09/06/22        $ 84  
CHF      83,000        USD      87,343      Bank of America N.A.     09/06/22          76  
CNH      215,000        USD      31,856      Bank of America N.A.     09/06/22          10  
CNY      128,000        USD      18,968      State Street Bank and Trust Co.     09/06/22          7  
EUR      114,000        USD      116,751      JPMorgan Chase Bank N.A.     09/06/22          45  
GBP      175,000        USD      213,180      Bank of America N.A.     09/06/22          105  
ILS      13,000        USD      3,828      State Street Bank and Trust Co.     09/06/22          4  
INR      751,000        USD      9,427      Morgan Stanley & Co. International PLC     09/06/22          11  
JPY      35,155,000        USD      264,302      Barclays Bank PLC     09/06/22          7  
KRW      55,961,000        USD      42,851      Morgan Stanley & Co. International PLC     09/06/22          97  
MYR      8,000        USD      1,794      Morgan Stanley & Co. International PLC     09/06/22          2  
SGD      16,000        USD      11,580      Bank of America N.A.     09/06/22          4  
TRY      52,000        USD      2,777      UBS AG     09/06/22          2  
TWD      2,637,000        USD      87,805      Morgan Stanley & Co. International PLC     09/06/22          173  
USD      7,852        MXN      161,000      BNP Paribas SA     09/06/22          4  
USD      722,370        MXN      14,802,000      HSBC Bank PLC     09/06/22          883  
USD      23,927        THB      869,000      Bank of America N.A.     09/06/22          261  
USD      639,273        THB      23,218,000      Citibank N.A.     09/06/22          6,977  
                    

 

 

 
                       1,038,469  
                    

 

 

 
CNH      234,000        USD      34,870      Morgan Stanley & Co. International PLC     08/03/22          (210
CNH      88,000        USD      13,143      UBS AG     08/03/22          (108
DKK      824,000        USD      115,409      Morgan Stanley & Co. International PLC     08/03/22          (2,271
EUR      2,094,000        USD      2,186,231      Morgan Stanley & Co. International PLC     08/03/22          (45,913
EUR      35,000        USD      36,732      UBS AG     08/03/22          (958
HKD      89,685,000        USD      11,425,491      Bank of America N.A.     08/03/22          (106
HKD      1,557,000        USD      198,583      Morgan Stanley & Co. International PLC     08/03/22          (229
HKD      973,000        USD      124,108      State Street Bank and Trust Co.     08/03/22          (153
INR      12,285,000        USD      155,045      Morgan Stanley & Co. International PLC     08/03/22          (75
KRW      472,917,000        USD      365,371      Morgan Stanley & Co. International PLC     08/03/22          (1,511
MXN      1,524,000        USD      75,140      Deutsche Bank Securities Inc.     08/03/22          (395
MXN      14,802,000        USD      726,877      HSBC Bank PLC     08/03/22          (904
MYR      2,361,000        USD      531,029      Morgan Stanley & Co. International PLC     08/03/22          (518
THB      23,320,000        USD      641,287      Citibank N.A.     08/03/22          (7,714
THB      402,000        USD      11,185      Morgan Stanley & Co. International PLC     08/03/22          (263
TRY      1,637,000        USD      91,258      Citibank N.A.     08/03/22          (77
TRY      57,000        USD      3,351      Deutsche Bank Securities Inc.     08/03/22          (177
TRY      28,000        USD      1,612      Morgan Stanley & Co. International PLC     08/03/22          (52
TWD      11,711,000        USD      394,343      Morgan Stanley & Co. International PLC     08/03/22          (3,312
USD      6,095,142        AUD      8,862,000      Deutsche Bank Securities Inc.     08/03/22          (96,739
USD      28,047        AUD      41,000      HSBC Bank PLC     08/03/22          (600
USD      20,027        AUD      29,000      JPMorgan Chase Bank N.A.     08/03/22          (235
USD      28,637        AUD      42,000      State Street Bank and Trust Co.     08/03/22          (708
USD      14,393        AUD      21,000      UBS AG     08/03/22          (280
USD      1,823,111        BRL      9,623,000      Morgan Stanley & Co. International PLC     08/03/22          (36,177
USD      23,398        CAD      30,000      Bank of America N.A.     08/03/22          (29
USD      46,237        CAD      60,000      Citibank N.A.     08/03/22          (618
USD      10,149,416        CAD      13,093,000      HSBC Bank PLC     08/03/22          (75,069
USD      22,527        CAD      29,000      Morgan Stanley & Co. International PLC     08/03/22          (120
USD      46,233        CAD      60,000      State Street Bank and Trust Co.     08/03/22          (622
USD      28,744        CAD      37,000      UBS AG     08/03/22          (150
USD      18,349        CHF      18,000      Barclays Bank PLC     08/03/22          (561
USD      138,651        CHF      133,000      Bank of America N.A.     08/03/22          (1,077

 

 

20  

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


Schedule of Investments   (continued)

July 31, 2022

   iShares® Currency Hedged MSCI ACWI ex U.S. ETF

 

Forward Foreign Currency Exchange Contracts (continued)

 

         
Currency Purchased        Currency Sold      Counterparty   Settlement Date        Unrealized
Appreciation
(Depreciation)
 
USD      8,004,721        CHF      7,650,000      HSBC Bank PLC     08/03/22        $ (32,259
USD      18,454        CHF      18,000      State Street Bank and Trust Co.     08/03/22          (457
USD      18,590        CHF      18,000      UBS AG     08/03/22          (321
USD      247,325        CLP      233,389,000      Morgan Stanley & Co. International PLC     08/03/22          (11,633
USD      24,851        DKK      182,000      Bank of America N.A.     08/03/22          (138
USD      54,301        EUR      54,000      BNP Paribas SA     08/03/22          (893
USD      111,161        EUR      109,000      Bank of America N.A.     08/03/22          (250
USD      107,878        EUR      106,000      JPMorgan Chase Bank N.A.     08/03/22          (467
USD      56,529        GBP      47,000      Barclays Bank PLC     08/03/22          (709
USD      28,879        GBP      24,000      Bank of America N.A.     08/03/22          (349
USD      27,610        GBP      23,000      Citibank N.A.     08/03/22          (400
USD      29,180        GBP      24,000      Societe Generale     08/03/22          (48
USD      11,931,022        GBP      9,820,000      State Street Bank and Trust Co.     08/03/22          (28,065
USD      4,014        ILS      14,000      Barclays Bank PLC     08/03/22          (105
USD      362,521        ILS      1,268,000      Bank of America N.A.     08/03/22          (10,533
USD      878        ILS      3,000      Citibank N.A.     08/03/22          (4
USD      1,729        ILS      6,000      HSBC Bank PLC     08/03/22          (36
USD      866        ILS      3,000      JPMorgan Chase Bank N.A.     08/03/22          (17
USD      66,457        INR      5,293,000      Morgan Stanley & Co. International PLC     08/03/22          (311
USD      39,627        JPY      5,438,000      Barclays Bank PLC     08/03/22          (1,156
USD      67,054        JPY      9,187,000      Bank of America N.A.     08/03/22          (1,845
USD      40,093        JPY      5,449,000      HSBC Bank PLC     08/03/22          (772
USD      16,538,998        JPY      2,243,154,000      JPMorgan Chase Bank N.A.     08/03/22          (283,745
USD      35,697        KRW      46,729,000      Morgan Stanley & Co. International PLC     08/03/22          (256
USD      3,466        MXN      71,000      Deutsche Bank Securities Inc.     08/03/22          (17
USD      5,325        MXN      110,000      JPMorgan Chase Bank N.A.     08/03/22          (70
USD      1,753        MXN      36,000      State Street Bank and Trust Co.     08/03/22          (12
USD      2,466        MYR      11,000      Morgan Stanley & Co. International PLC     08/03/22          (6
USD      9,323        NOK      93,000      Barclays Bank PLC     08/03/22          (300
USD      1,487        NOK      15,000      Citibank N.A.     08/03/22          (65
USD      577,523        NOK      5,703,000      HSBC Bank PLC     08/03/22          (12,556
USD      36,984        NOK      365,000      Morgan Stanley & Co. International PLC     08/03/22          (782
USD      1,864        NZD      3,000      Bank of America N.A.     08/03/22          (23
USD      140,486        NZD      226,000      JPMorgan Chase Bank N.A.     08/03/22          (1,646
USD      611        NZD      1,000      Morgan Stanley & Co. International PLC     08/03/22          (18
USD      618        NZD      1,000      UBS AG     08/03/22          (11
USD      36,983        SEK      386,000      Citibank N.A.     08/03/22          (1,003
USD      2,631,834        SEK      26,944,000      HSBC Bank PLC     08/03/22          (19,692
USD      2,155        SGD      3,000      BNP Paribas SA     08/03/22          (17
USD      4,280        SGD      6,000      HSBC Bank PLC     08/03/22          (64
USD      926,192        SGD      1,289,000      JPMorgan Chase Bank N.A.     08/03/22          (6,920
USD      8,646        SGD      12,000      Morgan Stanley & Co. International PLC     08/03/22          (41
USD      221        TRY      4,000      JPMorgan Chase Bank N.A.     08/03/22          (2
USD      12,287        TWD      368,000      Morgan Stanley & Co. International PLC     08/03/22           
USD      8,942        ZAR      151,000      Deutsche Bank Securities Inc.     08/03/22          (142
USD      2,922        ZAR      50,000      Morgan Stanley & Co. International PLC     08/03/22          (86
USD      2,989        ZAR      50,000      State Street Bank and Trust Co.     08/03/22          (19
USD      3,015        ZAR      51,000      UBS AG     08/03/22          (53
ZAR      807,000        USD      49,104      Bank of America N.A.     08/03/22          (554
ZAR      357,000        USD      21,525      Morgan Stanley & Co. International PLC     08/03/22          (47
CLP      3,330,000        USD      3,678      Morgan Stanley & Co. International PLC     09/06/22          (6
HKD      4,029,000        USD      513,892      BNP Paribas SA     09/06/22          (33
HKD      1,478,000        USD      188,505      Bank of America N.A.     09/06/22           

 

 

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

    21  


Schedule of Investments   (continued)

July 31, 2022

   iShares® Currency Hedged MSCI ACWI ex U.S. ETF

 

Forward Foreign Currency Exchange Contracts (continued)

 

         
Currency Purchased        Currency Sold      Counterparty   Settlement Date        Unrealized
Appreciation
(Depreciation)
 
MXN      25,000        USD      1,220      HSBC Bank PLC     09/06/22        $ (1
NOK      84,000        USD      8,698      Citibank N.A.     09/06/22           
NZD      1,000        USD      629      Bank of America N.A.     09/06/22           
THB      646,000        USD      17,840      HSBC Bank PLC     09/06/22          (247
USD      6,052,470        AUD      8,669,000      Bank of America N.A.     09/06/22          (7,969
USD      1,779,207        BRL      9,327,000      Morgan Stanley & Co. International PLC     09/06/22          (4,843
USD      9,467,607        CAD      12,132,000      BNP Paribas SA     09/06/22          (5,824
USD      336,338        CAD      431,000      Morgan Stanley & Co. International PLC     09/06/22          (214
USD      7,996,824        CHF      7,597,000      Bank of America N.A.     09/06/22          (4,642
USD      253,825        CLP      230,897,000      Morgan Stanley & Co. International PLC     09/06/22          (769
USD      1,936,906        CNH      13,072,000      Citibank N.A.     09/06/22          (524
USD      1,940,887        DKK      14,137,000      Bank of America N.A.     09/06/22          (4,901
USD      184,105        DKK      1,341,000      Morgan Stanley & Co. International PLC     09/06/22          (468
USD      23,421,857        EUR      22,915,000      BNP Paribas SA     09/06/22          (55,134
USD      378,750        GBP      311,000      BNP Paribas SA     09/06/22          (286
USD      11,653,636        GBP      9,569,000      Bank of America N.A.     09/06/22          (8,745
USD      11,438,169        HKD      89,685,000      Bank of America N.A.     09/06/22          (264
USD      389,930        ILS      1,327,000      Bank of America N.A.     09/06/22          (1,230
USD      4,727,948        INR      376,457,000      Morgan Stanley & Co. International PLC     09/06/22          (3,358
USD      936,531        JPY      124,854,000      Citibank N.A.     09/06/22          (2,170
USD      16,406,877        JPY      2,187,414,000      State Street Bank and Trust Co.     09/06/22          (38,953
USD      5,031,346        KRW      6,570,247,000      Morgan Stanley & Co. International PLC     09/06/22          (11,150
USD      518,460        MYR      2,309,000      Morgan Stanley & Co. International PLC     09/06/22          (68
USD      628,265        NOK      6,069,000      Bank of America N.A.     09/06/22          (197
USD      9,006        NOK      87,000      Morgan Stanley & Co. International PLC     09/06/22          (3
USD      137,931        NZD      220,000      Bank of America N.A.     09/06/22          (414
USD      2,471,562        SEK      25,158,000      Bank of America N.A.     09/06/22          (8,038
USD      185,198        SEK      1,885,000      Citibank N.A.     09/06/22          (590
USD      917,685        SGD      1,269,000      Bank of America N.A.     09/06/22          (1,011
USD      53,510        SGD      74,000      Morgan Stanley & Co. International PLC     09/06/22          (62
USD      9,447        TRY      177,000      Bank of America N.A.     09/06/22          (14
USD      87,280        TRY      1,637,000      Citibank N.A.     09/06/22          (222
USD      5,129,479        TWD      154,118,000      Morgan Stanley & Co. International PLC     09/06/22          (12,380
USD      42,684        ZAR      714,000      Bank of America N.A.     09/06/22          (104
USD      1,205,669        ZAR      20,167,000      Citibank N.A.     09/06/22          (2,885
ZAR      325,000        USD      19,484      Deutsche Bank Securities Inc.     09/06/22          (8
                    

 

 

 
                       (874,573
                    

 

 

 
                       $163,896  
                    

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

 

 
    

Commodity

Contracts

    

Credit

Contracts

    

Equity

Contracts

    

Foreign

Currency

Exchange

Contracts

    

Interest

Rate

Contracts

    

Other

Contracts

     Total  

 

 

Assets — Derivative Financial Instruments

                    

Forward foreign currency exchange contracts

                    

Unrealized appreciation on forward foreign currency exchange contracts

   $      $      $      $ 1,038,469      $      $      $ 1,038,469  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities — Derivative Financial Instruments

                    

Forward foreign currency exchange contracts

                    

Unrealized depreciation on forward foreign currency exchange contracts

   $      $      $      $ 874,573      $      $      $ 874,573  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

 

22  

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


Schedule of Investments   (continued)

July 31, 2022

   iShares® Currency Hedged MSCI ACWI ex U.S. ETF

 

Derivative Financial Instruments Categorized by Risk Exposure (continued)

For the period ended July 31, 2022, 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

             

Forward foreign currency exchange contracts

  $     $     $     $ 13,067,092     $     $     $ 13,067,092  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

             

Forward foreign currency exchange contracts

  $     $     $     $ 124,302     $     $     $ 124,302  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

   

Forward foreign currency exchange contracts

  

Average amounts purchased — in USD

   $ 124,655,878  

Average amounts sold — in USD

   $ 244,278,352  

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:

       

Forward foreign currency exchange contracts

   $ 1,038,469        $   874,573  
  

 

 

      

 

 

 

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

     1,038,469          874,573  

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

               
  

 

 

      

 

 

 

Total derivative assets and liabilities subject to an MNA

     1,038,469          874,573  
  

 

 

      

 

 

 

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

Assets

Subject to

an MNA by

Counterparty

 

 

 

 

 

    

Derivatives

Available

for Offset

 

 

(a) 

   

Non-Cash

Collateral

Received

 

 

 

    

Cash

Collateral

Received

 

 

(b) 

   

Net Amount

of Derivative

Assets

 

 

(c)(d) 

 

 

Bank of America N.A.

   $ 60,316      $ (52,433   $      $     $ 7,883  

Barclays Bank PLC

     98        (98                   

BNP Paribas SA

     57,743        (57,743                   

Citibank N.A.

     15,243        (15,243                   

Deutsche Bank Securities Inc.

     16,157        (16,157                   

HSBC Bank PLC

     52,734        (52,734                   

JPMorgan Chase Bank N.A.

     50,788        (50,788                   

Morgan Stanley & Co. International PLC

     151,375        (137,152            (14,223      

State Street Bank and Trust Co.

     633,923        (68,989                  564,934  

UBS AG

     92        (92                   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 
   $ 1,038,469      $ (451,429   $      $ (14,223   $ 572,817  
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

 

 

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

    23  


Schedule of Investments   (continued)

July 31, 2022

   iShares® Currency Hedged MSCI ACWI ex U.S. ETF

 

Derivative Financial Instruments - Offsetting as of Period End (continued)

 

 

 
Counterparty     

Derivative

Liabilities

Subject to

an MNA by

Counterparty

 

 

 

 

 

    

Derivatives

Available

for Offset

 

 

(a) 

    

Non-Cash

Collateral

Pledged

 

 

 

    

Cash

Collateral

Pledged

 

 

 

    

Net Amount

of Derivative

Liabilities

 

 

(d)(e) 

 

 

Bank of America N.A.

   $     52,433      $   (52,433    $           —      $           —      $              —  

Barclays Bank PLC

     2,831        (98                    2,733  

BNP Paribas SA

     62,187        (57,743                    4,444  

Citibank N.A.

     16,272        (15,243                    1,029  

Deutsche Bank Securities Inc.

     97,478        (16,157                    81,321  

HSBC Bank PLC

     142,200        (52,734                    89,466  

JPMorgan Chase Bank N.A.

     293,102        (50,788                    242,314  

Morgan Stanley & Co. International PLC

     137,152        (137,152                     

Societe Generale

     48                             48  

State Street Bank and Trust Co.

     68,989        (68,989                     

UBS AG

     1,881        (92                    1,789  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
   $     874,573      $ (451,429    $           —      $           —      $   423,144  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (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 from the individual counterparty is not shown for financial reporting purposes.

 
  (c) 

Net amount represents the net amount receivable from the counterparty in the event of default.

 
  (d) 

Net amount may also include forward foreign currency exchange contracts that are not required to be collateralized.

 
  (e) 

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  

 

 

Investments

                 

Assets

                 

Investment Companies

   $ 120,412,275        $        $        $ 120,412,275  

Money Market Funds

     210,000                            210,000  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 120,622,275        $        $           —        $ 120,622,275  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative financial instruments(a)

                 

Assets

                 

Forward Foreign Currency Exchange Contracts

   $        $ 1,038,469        $        $ 1,038,469  

Liabilities

                 

Forward Foreign Currency Exchange Contracts

              (874,573                 (874,573
   $        $ 163,896        $        $ 163,896  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

Derivative financial instruments are forward foreign currency exchange contracts. Forward foreign currency exchange contracts are valued at the unrealized appreciation (depreciation) on the instrument.

 

See notes to financial statements.

 

 

24  

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


Schedule of Investments  

July 31, 2022

  

iShares® Currency Hedged MSCI EAFE ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

 

Investment Companies

   

Exchange-Traded Funds — 100.1%

   

iShares MSCI EAFE ETF(a)

    55,834,659     $ 3,669,453,789  
   

 

 

 

Total Investment Companies
(Cost: $3,864,139,459)

      3,669,453,789  
   

 

 

 

Short-Term Securities

   

Money Market Funds — 0.1%

   

BlackRock Cash Funds: Treasury, SL Agency Shares, 1.81%(a)(b)

    2,640,000       2,640,000  
   

 

 

 

Total Short-Term Securities — 0.1%
(Cost: $2,640,000)

 

    2,640,000  
   

 

 

 

Total Investments in Securities — 100.2%
(Cost: $3,866,779,459)

 

    3,672,093,789  
   

 

 

 

Liabilities in Excess of Other Assets — (0.2)%

 

    (8,454,435
   

 

 

 

Net Assets — 100.0%

    $   3,663,639,354  
   

 

 

 

 

 

(a) 

Affiliate of the Fund.

(b) 

Annualized 7-day yield as of period end.

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended July 31, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 

   
    Affiliated Issuer   

Value at

07/31/21

    

Purchases

at Cost

    

Proceeds

from Sale

    

Net Realized

Gain (Loss)

    

Change in

Unrealized

Appreciation

(Depreciation)

    

Value at

07/31/22

    

Shares

Held at

07/31/22

     Income     

Capital

Gain

Distributions

from

Underlying

Funds

   

    

 
 

 

   

    

 

BlackRock Cash Funds: Treasury, SL Agency Shares

   $      $ 2,640,000 (a)     $      $      $      $ 2,640,000        2,640,000      $ 28,659      $    
 

iShares MSCI EAFE ETF

     2,837,556,835        2,226,928,817        (774,600,727      4,268,415        (624,699,551      3,669,453,789        55,834,659        142,857,369           
             

 

 

    

 

 

    

 

 

       

 

 

    

 

 

   
              $ 4,268,415      $ (624,699,551    $ 3,672,093,789         $ 142,886,028      $    
             

 

 

    

 

 

    

 

 

       

 

 

    

 

 

   

 

  (a) 

Represents net amount purchased (sold).

 

Derivative Financial Instruments Outstanding as of Period End

Forward Foreign Currency Exchange Contracts

 

         

      Currency Purchased      

             Currency Sold              Counterparty   Settlement Date       

Unrealized

Appreciation

(Depreciation)

 
AUD     399,916,000        USD     279,073,782        BNP Paribas SA     08/04/22        $ 352,009  
AUD     26,100,000        USD     17,952,854        Bank of America N.A.     08/04/22          283,509  
AUD     1,086,000        USD     740,606        HSBC Bank PLC     08/04/22          18,194  
AUD     9,892,000        USD     6,724,443        Morgan Stanley & Co. International PLC     08/04/22          187,208  
AUD     544,000        USD     374,641        State Street Bank and Trust Co.     08/04/22          5,458  
AUD     362,000        USD     243,911        Toronto Dominion Bank     08/04/22          9,023  
AUD     921,000        USD     637,471        UBS AG     08/04/22          6,042  
CHF     381,884,000        USD     400,718,942        Morgan Stanley & Co. International PLC     08/04/22          512,736  
DKK     637,000        USD     86,105        Bank of America N.A.     08/04/22          1,364  
DKK     2,643,000        USD     362,315        HSBC Bank PLC     08/04/22          605  
DKK     678,573,000        USD     92,945,707        State Street Bank and Trust Co.     08/04/22          231,625  

 

 

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

    25  


Schedule of Investments   (continued)

July 31, 2022

   iShares® Currency Hedged MSCI EAFE ETF

 

Forward Foreign Currency Exchange Contracts (continued)

 

         
      Currency Purchased                    Currency Sold              Counterparty    Settlement Date        Unrealized
Appreciation
(Depreciation)
 
EUR     940,000        USD     945,302        Imperial Bank of Canada      08/04/22        $ 15,556  
EUR     1,026,233,000        USD     1,046,398,478        State Street Bank and Trust Co.      08/04/22          2,605,397  
EUR     3,845,000        USD     3,923,510        UBS AG      08/04/22          6,806  
GBP     413,000        USD     491,347        HSBC Bank PLC      08/04/22          11,629  
GBP     13,716,000        USD     16,430,144        Morgan Stanley & Co. International PLC      08/04/22          274,017  
GBP     473,066,000        USD     575,650,652        State Street Bank and Trust Co.      08/04/22          477,297  
GBP     630,000        USD     754,742        UBS AG      08/04/22          12,509  
HKD     863,605,000        USD     110,014,777        Citibank N.A.      08/04/22          7,689  
ILS     203,000        USD     58,833        Bank of America N.A.      08/04/22          894  
ILS     252,000        USD     72,224        HSBC Bank PLC      08/04/22          1,919  
ILS     1,507,000        USD     429,826        Morgan Stanley & Co. International PLC      08/04/22          13,565  
ILS     61,210,000        USD     17,953,990        State Street Bank and Trust Co.      08/04/22          55,266  
JPY     95,848,000        USD     698,490        BNP Paribas SA      08/04/22          20,382  
JPY     145,625,000        USD     1,054,028        Bank of New York      08/04/22          38,178  
JPY     248,479,000        USD     1,828,068        Banco Santander Central Hispano      08/04/22          35,556  
JPY     1,604,105,000        USD     11,828,528        Citibank N.A.      08/04/22          202,459  
JPY     2,566,453,000        USD     18,929,784        Morgan Stanley & Co. International PLC      08/04/22          318,932  
JPY     287,965,000        USD     2,131,819        Royal Bank of Scotland PLC      08/04/22          27,955  
JPY     105,198,023,000        USD     787,115,772        State Street Bank and Trust Co.      08/04/22          1,882,447  
NOK     291,822,000        USD     30,185,880        BNP Paribas SA      08/04/22          9,371  
NOK     637,000        USD     64,159        Citibank N.A.      08/04/22          1,752  
NOK     789,000        USD     79,515        HSBC Bank PLC      08/04/22          2,124  
NOK     7,977,000        USD     793,093        Morgan Stanley & Co. International PLC      08/04/22          32,299  
NZD     33,000        USD     20,490        Bank of America N.A.      08/04/22          264  
NZD     814,000        USD     506,008        Citibank N.A.      08/04/22          5,923  
NZD     264,000        USD     162,950        Morgan Stanley & Co. International PLC      08/04/22          3,081  
NZD     28,000        USD     17,378        State Street Bank and Trust Co.      08/04/22          231  
NZD     9,997,000        USD     6,268,779        UBS AG      08/04/22          18,403  
SEK     1,145,000        USD     107,751        Citibank N.A.      08/04/22          4,932  
SEK     114,379,000        USD     11,100,588        Morgan Stanley & Co. International PLC      08/04/22          155,866  
SEK     4,630,000        USD     452,564        Royal Bank of Scotland PLC      08/04/22          3,091  
SEK     1,209,693,000        USD     118,653,772        State Street Bank and Trust Co.      08/04/22          396,523  
SGD     824,000        USD     592,117        Citibank N.A.      08/04/22          4,381  
SGD     141,000        USD     101,592        HSBC Bank PLC      08/04/22          479  
SGD     56,000        USD     39,827        Imperial Bank of Canada      08/04/22          712  
SGD     1,597,000        USD     1,136,877        Morgan Stanley & Co. International PLC      08/04/22          19,200  
SGD     61,256,000        USD     44,294,619        State Street Bank and Trust Co.      08/04/22          48,937  
USD     180,517        DKK     1,313,000        Bank of America N.A.      08/04/22          225  
USD     99,358,383        DKK     705,370,000        Morgan Stanley & Co. International PLC      08/04/22          2,501,457  
USD     1,164,046        DKK     8,243,000        Royal Bank of Scotland PLC      08/04/22          32,170  
USD     1,913,775        EUR     1,870,000        Morgan Stanley & Co. International PLC      08/04/22          2,282  
USD     1,175,708,464        EUR     1,122,384,000        State Street Bank and Trust Co.      08/04/22          28,420,114  
USD     4,824,579        GBP     3,960,000        UBS AG      08/04/22          1,855  

 

 

26  

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


Schedule of Investments   (continued)

July 31, 2022

   iShares® Currency Hedged MSCI EAFE ETF

 

Forward Foreign Currency Exchange Contracts (continued) 

    

 

         
      Currency Purchased                    Currency Sold              Counterparty    Settlement Date        Unrealized
Appreciation
(Depreciation)
 
USD     195,514        HKD     1,534,000        Bank of America N.A.      08/04/22        $ 84  
USD     99,971        HKD     784,000        HSBC Bank PLC      08/04/22          90  
USD     107,449,054        HKD     842,320,000        JPMorgan Chase Bank N.A.      08/04/22          138,278  
USD     415,208        HKD     3,257,000        Morgan Stanley & Co. International PLC      08/04/22          269  
USD     3,847,351        HKD     30,161,000        Royal Bank of Scotland PLC      08/04/22          4,868  
USD     1,344,118        HKD     10,539,000        State Street Bank and Trust Co.      08/04/22          1,459  
USD     316,858        HKD     2,484,000        UBS AG      08/04/22          399  
AUD     5,375,000        USD     3,757,173        Royal Bank of Scotland PLC      09/02/22          201  
CHF     5,736,000        USD     6,034,712        Royal Bank of Scotland PLC      09/02/22          4,879  
DKK     2,446,000        USD     336,421        Imperial Bank of Canada      09/02/22          145  
EUR     10,922,000        USD     11,183,299        JPMorgan Chase Bank N.A.      09/02/22          3,371  
GBP     10,708,000        USD     13,043,601        JPMorgan Chase Bank N.A.      09/02/22          5,744  
HKD     17,472,000        USD     2,228,201        State Street Bank and Trust Co.      09/02/22          3  
ILS     932,000        USD     274,286        State Street Bank and Trust Co.      09/02/22          364  
SGD     1,101,000        USD     796,828        Morgan Stanley & Co. International PLC      09/02/22          242  
USD     389,564        AUD     557,000        UBS AG      09/02/22          195  
USD     512,874        CHF     487,000        State Street Bank and Trust Co.      09/02/22          99  
USD     765,431        GBP     628,000        State Street Bank and Trust Co.      09/02/22          117  
USD     25,050        ILS     85,000        State Street Bank and Trust Co.      09/02/22          2  
USD     1,109,060        JPY     147,476,000        State Street Bank and Trust Co.      09/02/22          649  
USD     8,808        NZD     14,000        State Street Bank and Trust Co.      09/02/22          4  
USD     172,623        SEK     1,751,000        Citibank N.A.      09/02/22          71  
USD     62,266        SGD     86,000        HSBC Bank PLC      09/02/22          6  
                     

 

 

 
                        39,443,437  
                     

 

 

 
DKK     43,730,000        USD     6,115,138        Morgan Stanley & Co. International PLC      08/04/22          (110,412
DKK     1,867,000        USD     262,242        Royal Bank of Scotland PLC      08/04/22          (5,878
EUR     27,256,000        USD     28,078,889        Morgan Stanley & Co. International PLC      08/04/22          (218,112
EUR     81,351,000        USD     85,216,922        Toronto Dominion Bank      08/04/22          (2,060,841
EUR     2,798,000        USD     2,923,387        UBS AG      08/04/22          (63,303
HKD     1,149,000        USD     146,438        HSBC Bank PLC      08/04/22          (56
HKD     23,657,000        USD     3,017,434        Morgan Stanley & Co. International PLC      08/04/22          (3,554
HKD     785,000        USD     100,080        State Street Bank and Trust Co.      08/04/22          (72
HKD     1,883,000        USD     239,987        The Northern Trust Co.      08/04/22          (94
USD     245,718        AUD     362,000        BNP Paribas SA      08/04/22          (7,216
USD     414,418        AUD     612,000        Citibank N.A.      08/04/22          (13,193
USD     3,076,102        AUD     4,497,000        HSBC Bank PLC      08/04/22          (66,002
USD     911,215        AUD     1,318,000        Morgan Stanley & Co. International PLC      08/04/22          (9,687
USD     296,402,638        AUD     430,944,000        State Street Bank and Trust Co.      08/04/22          (4,702,764
USD     738,127        AUD     1,088,000        UBS AG      08/04/22          (22,070
USD     399,489,693        CHF     381,884,000        Morgan Stanley & Co. International PLC      08/04/22          (1,741,985
USD     130,589        DKK     967,000        BNP Paribas SA      08/04/22          (2,193
USD     85,702        DKK     625,000        Bank of America N.A.      08/04/22          (119
USD     1,300,994        DKK     9,520,000        HSBC Bank PLC      08/04/22          (6,232

 

 

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

    27  


Schedule of Investments   (continued)

July 31, 2022

   iShares® Currency Hedged MSCI EAFE ETF

 

Forward Foreign Currency Exchange Contracts (continued)

 

         
      Currency Purchased                    Currency Sold              Counterparty    Settlement Date       

Unrealized

Appreciation

(Depreciation)

 
USD     173,538        DKK     1,288,000        Morgan Stanley & Co. International PLC      08/04/22        $ (3,322
USD     16,989        DKK     124,000        Royal Bank of Scotland PLC      08/04/22          (38
USD     2,333,025        EUR     2,308,000        JPMorgan Chase Bank N.A.      08/04/22          (26,187
USD     472,284        EUR     469,000        Royal Bank of Scotland PLC      08/04/22          (7,122
USD     12,635,665        EUR     12,417,000        State Street Bank and Trust Co.      08/04/22          (56,854
USD     2,992,367        EUR     2,975,000        UBS AG      08/04/22          (48,645
USD     484,228        GBP     406,000        Bank of America N.A.      08/04/22          (10,223
USD     742,054        GBP     624,000        Banco Santander Central Hispano      08/04/22          (17,890
USD     6,670,580        GBP     5,546,000        HSBC Bank PLC      08/04/22          (83,669
USD     1,227,205        GBP     1,036,000        Morgan Stanley & Co. International PLC      08/04/22          (34,498
USD     578,568,181        GBP     476,172,000        State Street Bank and Trust Co.      08/04/22          (1,342,439
USD     97,500        GBP     81,000        UBS AG      08/04/22          (1,146
USD     17,605,548        ILS     61,576,000        Bank of America N.A.      08/04/22          (511,393
USD     32,404        ILS     113,000        Citibank N.A.      08/04/22          (843
USD     369,737        ILS     1,285,000        HSBC Bank PLC      08/04/22          (8,336
USD     16,157        ILS     56,000        JPMorgan Chase Bank N.A.      08/04/22          (320
USD     16,451        ILS     57,000        State Street Bank and Trust Co.      08/04/22          (320
USD     24,397        ILS     85,000        UBS AG      08/04/22          (611
USD     1,738,597        JPY     239,798,000        BNP Paribas SA      08/04/22          (59,918
USD     137,743        JPY     18,724,000        Citibank N.A.      08/04/22          (2,689
USD     2,804,599        JPY     385,004,000        HSBC Bank PLC      08/04/22          (82,979
USD     797,513,798        JPY         108,157,093,000        JPMorgan Chase Bank N.A.      08/04/22          (13,677,813
USD     8,707,647        JPY     1,182,570,000        Toronto Dominion Bank      08/04/22          (161,775
USD     1,205,877        JPY     163,309,000        UBS AG      08/04/22          (18,961
USD     52,370        NOK     519,000        Bank of New York      08/04/22          (1,332
USD     172,098        NOK     1,753,000        Citibank N.A.      08/04/22          (9,288
USD     317,567        NOK     3,202,000        HSBC Bank PLC      08/04/22          (13,749
USD     1,787,305        NOK     17,649,000        Morgan Stanley & Co. International PLC      08/04/22          (38,863
USD     237,780        NOK     2,338,000        Royal Bank of Scotland PLC      08/04/22          (4,137
USD     27,926,603        NOK     275,764,000        State Street Bank and Trust Co.      08/04/22          (607,103
USD     11,825        NZD     19,000        Bank of America N.A.      08/04/22          (125
USD     1,240        NZD     2,000        Citibank N.A.      08/04/22          (18
USD     8,576        NZD     14,000        HSBC Bank PLC      08/04/22          (229
USD     6,754,884        NZD     10,867,000        JPMorgan Chase Bank N.A.      08/04/22          (79,447
USD     3,065        NZD     5,000        Morgan Stanley & Co. International PLC      08/04/22          (80
USD     112,783        NZD     182,000        Royal Bank of Scotland PLC      08/04/22          (1,678
USD     11,631        NZD     19,000        State Street Bank & Trust Company      08/04/22          (318
USD     6,155        NZD     10,000        Toronto Dominion Bank      08/04/22          (134
USD     11,100        NZD     18,000        UBS AG      08/04/22          (221
USD     913,484        SEK     9,560,000        Citibank N.A.      08/04/22          (27,351
USD     546,570        SEK     5,584,000        HSBC Bank PLC      08/04/22          (2,971
USD     1,326,419        SEK     13,965,000        Morgan Stanley & Co. International PLC      08/04/22          (47,927
USD     127,008,361        SEK     1,300,163,000        State Street Bank and Trust Co.      08/04/22          (945,416
USD     54,540        SEK     575,000        UBS AG      08/04/22          (2,048
USD     139,390        SGD     195,000        Bank of America N.A.      08/04/22          (1,772
USD     19,921        SGD     28,000        Citibank N.A.      08/04/22          (348
USD     47,931        SGD     67,000        HSBC Bank PLC      08/04/22          (571

 

 

28  

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


Schedule of Investments   (continued)

July 31, 2022

   iShares® Currency Hedged MSCI EAFE ETF

 

Forward Foreign Currency Exchange Contracts (continued)

 

         
      Currency Purchased                    Currency Sold              Counterparty    Settlement Date       

Unrealized

Appreciation

(Depreciation)

 
USD     44,739,922        SGD     62,264,000        JPMorgan Chase Bank N.A.      08/04/22        $ (333,331
USD     825,040        SGD     1,152,000        Morgan Stanley & Co. International PLC      08/04/22          (8,899
USD     119,829        SGD     168,000        State Street Bank and Trust Co.      08/04/22          (1,787
JPY     2,225,847,000        USD     16,730,558        State Street Bank and Trust Co.      09/02/22          (1,369
NOK     5,457,000        USD     565,057        State Street Bank and Trust Co.      09/02/22          (6
NZD     74,000        USD     46,565        Bank of America N.A.      09/02/22          (29
SEK     3,054,000        USD     300,956        State Street Bank and Trust Co.      09/02/22          (1
USD     279,208,554        AUD     399,916,000        BNP Paribas SA      09/02/22          (351,276
USD     13,468,363        AUD     19,292,000        State Street Bank and Trust Co.      09/02/22          (17,640
USD     22,206,728        CHF     21,103,000        Bank of America N.A.      09/02/22          (13,200
USD     364,460,462        CHF     346,365,000        Morgan Stanley & Co. International PLC      09/02/22          (236,746
USD     9,606,258        DKK     69,991,000        BNP Paribas SA      09/02/22          (24,421
USD     93,131,326        DKK     678,573,000        State Street Bank and Trust Co.      09/02/22          (239,521
USD     66,055,834        EUR     64,641,000        BNP Paribas SA      09/02/22          (151,592
USD     1,048,486,863        EUR     1,026,233,000        State Street Bank and Trust Co.      09/02/22          (2,614,534
USD     21,477,245        GBP     17,637,000        BNP Paribas SA      09/02/22          (16,153
USD     560,326,114        GBP     460,158,000        State Street Bank and Trust Co.      09/02/22          (447,204
USD     335,392        HKD     2,630,000        BNP Paribas SA      09/02/22          (12
USD     110,124,904        HKD     863,605,000        Citibank N.A.      09/02/22          (10,674
USD     145,639        HKD     1,142,000        State Street Bank and Trust Co.      09/02/22           
USD     870,416        ILS     2,963,000        Bank of America N.A.      09/02/22          (2,747
USD     17,983,265        ILS     61,210,000        State Street Bank and Trust Co.      09/02/22          (54,643
USD     49,873,648        JPY     6,650,858,000        Citibank N.A.      09/02/22          (113,372
USD     788,768,853        JPY         105,198,023,000        State Street Bank and Trust Co.      09/02/22          (1,886,381
USD     30,207,284        NOK     291,822,000        BNP Paribas SA      09/02/22          (9,756
USD     40,681        NOK     393,000        Citibank N.A.      09/02/22          (12
USD     608,569        NOK     5,879,000        Morgan Stanley & Co. International PLC      09/02/22          (179
USD     399,386        NZD     637,000        State Street Bank and Trust Co.      09/02/22          (1,198
USD     6,268,379        NZD     9,997,000        UBS AG      09/02/22          (18,334
USD     9,332,619        SEK     95,013,000        BNP Paribas SA      09/02/22          (30,407
USD     118,810,746        SEK     1,209,693,000        State Street Bank and Trust Co.      09/02/22          (398,078
USD     2,797,703        SGD     3,869,000        Morgan Stanley & Co. International PLC      09/02/22          (3,261
USD     44,176,233        SGD     61,088,000        State Street Bank and Trust Co.      09/02/22          (48,452
                     

 

 

 
                        (34,012,115
                     

 

 

 
                        $5,431,322  
                     

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

 

 
   

Commodity

Contracts

    

Credit

Contracts

    

Equity

Contracts

    

Foreign

Currency

Exchange

Contracts

    

Interest

Rate

Contracts

    

Other

Contracts

     Total  

 

 

Assets — Derivative Financial Instruments

                   

Forward foreign currency exchange contracts

                   

Unrealized appreciation on forward foreign currency exchange contracts

  $      $      $      $ 39,443,437      $      $      $ 39,443,437  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

 

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

    29  


Schedule of Investments   (continued)

July 31, 2022

   iShares® Currency Hedged MSCI EAFE ETF

 

Derivative Financial Instruments Categorized by Risk Exposure (continued)

 

 

 
   

Commodity

Contracts

    

Credit

Contracts

    

Equity

Contracts

    

Foreign

Currency

Exchange

Contracts

    

Interest

Rate

Contracts

    

Other

Contracts

     Total  

 

 

Liabilities — Derivative Financial Instruments

                   

Forward foreign currency exchange contracts

                   

Unrealized depreciation on forward foreign currency exchange contracts

  $      $      $      $ 34,012,115      $      $      $ 34,012,115  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

For the period ended July 31, 2022, 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

                   

Forward foreign currency exchange contracts

  $      $      $      $ 450,660,942      $      $      $ 450,660,942  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                   

Forward foreign currency exchange contracts

  $      $      $      $ 14,492,019      $      $      $ 14,492,019  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Forward foreign currency exchange contracts

  

Average amounts purchased — in USD

   $ 3,359,007,327    

Average amounts sold — in USD

   $ 6,659,199,387    

 

 

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:

     

Forward foreign currency exchange contracts

   $ 39,443,437      $ 34,012,115  
  

 

 

    

 

 

 

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

     39,443,437        34,012,115  

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

             
  

 

 

    

 

 

 

Total derivative assets and liabilities subject to an MNA

     39,443,437        34,012,115  
  

 

 

    

 

 

 

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

Assets

Subject to

an MNA by

Counterparty

 

 

 

 

 

    

Derivatives

Available

for Offset

 

 

(a) 

   

Non-Cash

Collateral

Received

 

 

 

    

Cash

Collateral

Received

 

 

(b) 

   

Net Amount

of Derivative

Assets

 

 

(c)(d) 

 

 

Banco Santander Central Hispano

   $ 35,556      $ (17,890   $      $     $ 17,666  

Bank of America N.A.

     286,340        (286,340                   

Bank of New York

     38,178        (1,332                  36,846  

BNP Paribas SA

     381,762        (381,762                   

Citibank N.A.

     227,207        (177,788                  49,419  

HSBC Bank PLC

     35,046        (35,046                   

Imperial Bank of Canada

     16,413                           16,413  

JPMorgan Chase Bank N.A.

     147,393        (147,393                   

Morgan Stanley & Co. International PLC

     4,021,154        (2,457,525            (620,000     943,629  

Royal Bank of Scotland PLC

     73,164        (18,853                  54,311  

State Street Bank and Trust Co.

     34,125,992        (13,365,782                  20,760,210  

Toronto Dominion Bank

     9,023        (9,023                   

UBS AG

     46,209        (46,209                   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 
   $ 39,443,437      $ (16,944,943   $      $ (620,000   $ 21,878,494  
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

 

 

30  

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


Schedule of Investments   (continued)

July 31, 2022

   iShares® Currency Hedged MSCI EAFE ETF

 

Derivative Financial Instruments - Offsetting as of Period End (continued)

 

 

 
Counterparty     

Derivative

Liabilities

Subject to

an MNA by

Counterparty

 

 

 

 

 

    

Derivatives

Available

for Offset

 

 

(a) 

   

Non-Cash

Collateral

Pledged

 

 

 

    

Cash

Collateral

Pledged

 

 

 

   

Net Amount

of Derivative

Liabilities

 

 

(d)(e) 

 

 

Banco Santander Central Hispano

   $ 17,890      $ (17,890   $      $     $  

Bank of America N.A.

     539,608        (286,340                  253,268  

Bank of New York

     1,332        (1,332                   

BNP Paribas SA

     652,944        (381,762                  271,182  

Citibank N.A.

     177,788        (177,788                   

HSBC Bank PLC

     264,794        (35,046                  229,748  

JPMorgan Chase Bank N.A.

     14,117,098        (147,393                  13,969,705  

Morgan Stanley & Co. International PLC

     2,457,525        (2,457,525                   

Royal Bank of Scotland PLC

     18,853        (18,853                   

State Street Bank & Trust Company

     318                           318  

State Street Bank and Trust Co.

     13,365,782        (13,365,782                   

The Northern Trust Co.

     94                           94  

Toronto Dominion Bank

     2,222,750        (9,023                  2,213,727  

UBS AG

     175,339        (46,209                  129,130