Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-09729
iShares Trust
(Exact name of registrant as specified in charter)
c/o: State Street Bank and Trust Company
1 Iron Street, Boston, MA 02210
(Address of principal executive offices) (Zip code)
The Corporation Trust Company
1209 Orange Street, Wilmington, DE 19801
(Name and address of agent for service)
Registrant’s telephone number, including area code: (415) 670-2000
Date of fiscal year end: August 31, 2018
Date of reporting period: February 28, 2018
Table of Contents
Item 1. Reports to Stockholders.
Table of Contents
FEBRUARY 28, 2018
2018 SEMI-ANNUAL REPORT (UNAUDITED) |
iShares Trust
Ø | iShares MSCI Argentina and Global Exposure ETF | AGT | Cboe BZX |
Ø | iShares MSCI Brazil Small-Cap ETF | EWZS | NASDAQ |
Ø | iShares MSCI China ETF | MCHI | NASDAQ |
Ø | iShares MSCI China Small-Cap ETF | ECNS | NYSE Arca |
Ø | iShares MSCI Indonesia ETF | EIDO | NYSE Arca |
Ø | iShares MSCI Peru ETF | EPU | NYSE Arca |
Ø | iShares MSCI Philippines ETF | EPHE | NYSE Arca |
Ø | iShares MSCI Poland ETF | EPOL | NYSE Arca |
Ø | iShares MSCI Qatar ETF | QAT | NASDAQ |
Ø | iShares MSCI Saudi Arabia ETF | KSA | NYSE Arca |
Ø | iShares MSCI UAE ETF | UAE | NASDAQ |
Table of Contents
5 | ||||
16 | ||||
16 | ||||
17 | ||||
17 | ||||
19 | ||||
22 | ||||
28 | ||||
38 | ||||
41 | ||||
43 | ||||
45 | ||||
47 | ||||
49 | ||||
52 | ||||
54 | ||||
68 | ||||
79 | ||||
92 | ||||
93 |
Table of Contents
iSHARES® MSCI ARGENTINA AND GLOBAL EXPOSURE ETF
Performance as of February 28, 2018
The iShares MSCI Argentina and Global Exposure ETF (the “Fund”) seeks to track the investment results of a broad-based equity index with exposure to Argentina, as represented by the MSCI All Argentina 25/50 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. For the six-month reporting period ended February 28, 2018, the total return for the Fund was 24.56%, net of fees, while the total return for the Index was 22.43%.
Cumulative Total Returns | ||||||||||||
NAV | MARKET | INDEX | ||||||||||
Since Inception | 27.04% | 26.56% | 25.79% |
The inception date of the Fund was 4/25/17. The first day of secondary market trading was 4/27/17.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 16 for more information.
Shareholder Expenses | ||||||||||||||||||||||||||
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Annualized Expense Ratio | ||||||||||||||||||||
$ | 1,000.00 | $ | 1,245.60 | $ | 3.29 | $ | 1,000.00 | $ | 1,021.90 | $ | 2.96 | 0.59% |
a | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 16 for more information. |
ALLOCATION BY SECTOR
As of 2/28/18
Sector | Percentage of Total Investments* |
Information Technology | 26.60 | % | ||
Financials | 23.08 | |||
Energy | 21.18 | |||
Consumer Staples | 7.99 | |||
Telecommunication Services | 4.32 | |||
Utilities | 4.29 | |||
Real Estate | 4.24 | |||
Materials | 3.65 | |||
Consumer Discretionary | 2.80 | |||
Industrials | 1.85 | |||
|
| |||
TOTAL | 100.00 | % | ||
|
|
TEN LARGEST COUNTRIES
As of 2/28/18
Country | Percentage of Total Investments* |
Argentina | 52.22 | % | ||
United States | 23.35 | |||
Italy | 12.45 | |||
Chile | 5.71 | |||
Canada | 3.65 | |||
Spain | 1.85 | |||
United Kingdom | 0.77 | |||
|
| |||
TOTAL | 100.00 | % | ||
|
|
* | Excludes money market funds. |
FUND PERFORMANCE OVERVIEWS | 5 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI BRAZIL SMALL-CAP ETF
Performance as of February 28, 2018
The iShares MSCI Brazil Small-Cap ETF (the “Fund”) seeks to track the investment results of an index composed of small-capitalization Brazilian equities, as represented by the MSCI Brazil 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. For the six-month reporting period ended February 28, 2018, the total return for the Fund was 11.44%, net of fees, while the total return for the Index was 11.87%.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||||||||
1 Year | 30.32% | 31.94% | 31.42% | 30.32% | 31.94% | 31.42% | ||||||||||||||||||||||
5 Years | (6.55)% | (6.56)% | (6.20)% | (28.74)% | (28.77)% | (27.40)% | ||||||||||||||||||||||
Since Inception | (2.08)% | (2.10)% | (1.67)% | (14.44)% | (14.55)% | (11.73)% |
The inception date of the Fund was 9/28/10. The first day of secondary market trading was 9/29/10.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 16 for more information.
Shareholder Expenses | ||||||||||||||||||||||||||
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Annualized Expense Ratio | ||||||||||||||||||||
$ | 1,000.00 | $ | 1,114.40 | $ | 3.09 | $ | 1,000.00 | $ | 1,021.90 | $ | 2.96 | 0.59% |
a | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 16 for more information. |
ALLOCATION BY SECTOR
As of 2/28/18
Sector | Percentage of Total Investments* |
Consumer Discretionary | 40.52 | % | ||
Materials | 15.25 | |||
Utilities | 12.22 | |||
Industrials | 10.39 | |||
Health Care | 4.81 | |||
Consumer Staples | 4.48 | |||
Real Estate | 4.40 | |||
Information Technology | 3.85 | |||
Financials | 3.59 | |||
Energy | 0.49 | |||
|
| |||
TOTAL | 100.00 | % | ||
|
|
TEN LARGEST FUND HOLDINGS
As of 2/28/18
Security | Percentage of Total Investments* |
Estacio Participacoes SA | 5.96 | % | ||
Bradespar SA (Preferred) | 5.05 | |||
Magazine Luiza SA | 4.48 | |||
CVC Brasil Operadora e Agencia de Viagens SA | 3.95 | |||
Usinas Siderurgicas de Minas Gerais SA Class A (Preferred) | 3.51 | |||
Smiles Fidelidade SA | 3.39 | |||
Metalurgica Gerdau SA (Preferred) | 3.35 | |||
Fleury SA | 3.34 | |||
B2W Cia. Digital | 3.18 | |||
MRV Engenharia e Participacoes SA | 2.88 | |||
|
| |||
TOTAL | 39.09 | % | ||
|
|
* | Excludes money market funds. |
6 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI CHINA ETF
Performance as of February 28, 2018
The iShares MSCI China ETF (the “Fund”) seeks to track the investment results of an index composed of Chinese equities that are available to international investors, as represented by the MSCI China Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month reporting period ended February 28, 2018, the total return for the Fund was 14.17%, net of fees, while the total return for the Index was 14.48%.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||||||||
1 Year | 45.79% | 44.36% | 46.71% | 45.79% | 44.36% | 46.71% | ||||||||||||||||||||||
5 Years | 10.46% | 10.27% | 11.03% | 64.48% | 63.04% | 68.76% | ||||||||||||||||||||||
Since Inception | 7.24% | 7.08% | 7.82% | 62.28% | 60.55% | 68.35% |
The inception date of the Fund was 3/29/11. The first day of secondary market trading was 3/31/11.
Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 16 for more information.
Shareholder Expenses | ||||||||||||||||||||||||||
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Beginning Account Value (9/1/17) | Ending (2/28/18) | Expenses Paid During Period a | Annualized Expense Ratio | ||||||||||||||||||||
$ | 1,000.00 | $ | 1,141.70 | $ | 3.13 | $ | 1,000.00 | $ | 1,021.90 | $ | 2.96 | 0.59% |
a | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 16 for more information. |
ALLOCATION BY SECTOR
As of 2/28/18
Sector | Percentage of Total Investments* |
Information Technology | 41.40 | % | ||
Financials | 23.10 | |||
Consumer Discretionary | 9.55 | |||
Real Estate | 4.92 | |||
Energy | 4.66 | |||
Telecommunication Services | 4.30 | |||
Industrials | 4.01 | |||
Health Care | 2.38 | |||
Consumer Staples | 2.11 | |||
Utilities | 2.04 | |||
Materials | 1.53 | |||
|
| |||
TOTAL | 100.00 | % | ||
|
|
TEN LARGEST FUND HOLDINGS
As of 2/28/18
Security | Percentage of Total Investments* |
Tencent Holdings Ltd. | 18.46 | % | ||
Alibaba Group Holding Ltd. ADR | 12.58 | |||
China Construction Bank Corp. Class H | 5.14 | |||
Baidu Inc. ADR | 4.07 | |||
Industrial & Commercial Bank of China Ltd. Class H | 3.74 | |||
China Mobile Ltd. | 3.39 | |||
Ping An Insurance Group Co. of China Ltd. Class H | 3.24 | |||
Bank of China Ltd. Class H | 2.56 | |||
JD.com Inc. ADR | 1.82 | |||
CNOOC Ltd. | 1.53 | |||
|
| |||
TOTAL | 56.53 | % | ||
|
|
* | Excludes money market funds. |
FUND PERFORMANCE OVERVIEWS | 7 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI CHINA SMALL-CAP ETF
Performance as of February 28, 2018
The iShares MSCI China Small-Cap ETF (the “Fund”) seeks to track the investment results of an index composed of small-capitalization Chinese equities that are available to international investors, as represented by the MSCI China 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. For the six-month reporting period ended February 28, 2018, the total return for the Fund was 9.33%, net of fees, while the total return for the Index was 9.25%.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||||||||
1 Year | 21.18% | 20.43% | 18.47% | 21.18% | 20.43% | 18.47% | ||||||||||||||||||||||
5 Years | 7.06% | 6.90% | 5.98% | 40.64% | 39.62% | 33.67% | ||||||||||||||||||||||
Since Inception | 3.28% | 3.23% | 2.51% | 27.10% | 26.57% | 20.22% |
The inception date of the Fund was 9/28/10. The first day of secondary market trading was 9/29/10.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 16 for more information.
Shareholder Expenses | ||||||||||||||||||||||||||
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Annualized Expense Ratio | ||||||||||||||||||||
$ | 1,000.00 | $ | 1,093.30 | $ | 3.06 | $ | 1,000.00 | $ | 1,021.90 | $ | 2.96 | 0.59% |
a | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 16 for more information. |
ALLOCATION BY SECTOR
As of 2/28/18
Sector | Percentage of Total Investments* |
Consumer Discretionary | 17.59 | % | ||
Real Estate | 17.46 | |||
Information Technology | 16.29 | |||
Industrials | 14.74 | |||
Health Care | 10.04 | |||
Materials | 8.16 | |||
Utilities | 5.16 | |||
Consumer Staples | 4.08 | |||
Financials | 3.92 | |||
Energy | 2.46 | |||
Telecommunication Services | 0.10 | |||
|
| |||
TOTAL | 100.00 | % | ||
|
|
TEN LARGEST FUND HOLDINGS
As of 2/28/18
Security | Percentage of Total Investments* |
Genscript Biotech Corp. | 1.39 | % | ||
Chong Sing Holdings FinTech Group Ltd. | 1.17 | |||
Kingboard Laminates Holdings Ltd. | 1.15 | |||
Shenzhen International Holdings Ltd. | 1.15 | |||
GDS Holdings Ltd. ADR | 1.11 | |||
KWG Property Holding Ltd. | 1.08 | |||
51job Inc. ADR | 0.98 | |||
Inner Mongolia Yitai Coal Co. Ltd. Class B | 0.93 | |||
Hutchison China MediTech Ltd. | 0.92 | |||
Chinasoft International Ltd. | 0.90 | |||
|
| |||
TOTAL | 10.78 | % | ||
|
|
* | Excludes money market funds. |
8 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI INDONESIA ETF
Performance as of February 28, 2018
The iShares MSCI Indonesia ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Indonesian equities, as represented by the MSCI Indonesia Investable Market 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. For the six-month reporting period ended February 28, 2018, the total return for the Fund was 7.48%, net of fees, while the total return for the Index was 7.79%.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||||||||
1 Year | 18.29% | 18.55% | 19.00% | 18.29% | 18.55% | 19.00% | ||||||||||||||||||||||
5 Years | (1.90)% | (2.07)% | (1.42)% | (9.15)% | (9.91)% | (6.92)% | ||||||||||||||||||||||
Since Inception | 3.94% | 3.83% | 4.45% | 35.29% | 34.18% | 40.54% |
The inception date of the Fund was 5/5/10. The first day of secondary market trading was 5/7/10.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 16 for more information.
Shareholder Expenses | ||||||||||||||||||||||||||
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Annualized Expense Ratio | ||||||||||||||||||||
$ | 1,000.00 | $ | 1,074.80 | $ | 3.04 | $ | 1,000.00 | $ | 1,021.90 | $ | 2.96 | 0.59% |
a | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 16 for more information. |
ALLOCATION BY SECTOR
As of 2/28/18
Sector | Percentage of Total Investments* |
Financials | 36.74 | % | ||
Consumer Staples | 14.42 | |||
Consumer Discretionary | 12.44 | |||
Telecommunication Services | 11.53 | |||
Energy | 7.86 | |||
Real Estate | 5.03 | |||
Materials | 4.92 | |||
Industrials | 3.49 | |||
Health Care | 2.08 | |||
Utilities | 1.49 | |||
|
| |||
TOTAL | 100.00 | % | ||
|
|
TEN LARGEST FUND HOLDINGS
As of 2/28/18
Security | Percentage of Total Investments* |
Bank Central Asia Tbk PT | 11.45 | % | ||
Bank Rakyat Indonesia Persero Tbk PT | 10.48 | |||
Telekomunikasi Indonesia Persero Tbk PT | 10.11 | |||
Astra International Tbk PT | 8.15 | |||
Bank Mandiri Persero Tbk PT | 7.73 | |||
Unilever Indonesia Tbk PT | 4.22 | |||
Bank Negara Indonesia Persero Tbk PT | 3.77 | |||
United Tractors Tbk PT | 3.07 | |||
Hanjaya Mandala Sampoerna Tbk PT | 2.34 | |||
Indocement Tunggal Prakarsa Tbk PT | 2.09 | |||
|
| |||
TOTAL | 63.41 | % | ||
|
|
* | Excludes money market funds. |
FUND PERFORMANCE OVERVIEWS | 9 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI PERU ETF
Performance as of February 28, 2018
The iShares MSCI Peru ETF (the “Fund”) (formerly the iShares MSCI All Peru Capped ETF) seeks to track the investment results of an index composed of Peruvian equities, as represented by the MSCI All Peru Capped Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month reporting period ended February 28, 2018, the total return for the Fund was 14.29%, net of fees, while the total return for the Index was 14.44%.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||||||||
1 Year | 27.84% | 26.83% | 28.57% | 27.84% | 26.83% | 28.57% | ||||||||||||||||||||||
5 Years | 0.68% | 0.47% | 1.39% | 3.42% | 2.35% | 7.14% | ||||||||||||||||||||||
Since Inception | 8.35% | 8.28% | 9.10% | 100.85% | 99.82% | 113.29% |
The inception date of the Fund was 6/19/09. The first day of secondary market trading was 6/22/09.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 16 for more information.
Shareholder Expenses | ||||||||||||||||||||||||||
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Annualized Expense Ratio | ||||||||||||||||||||
$ | 1,000.00 | $ | 1,142.90 | $ | 3.13 | $ | 1,000.00 | $ | 1,021.90 | $ | 2.96 | 0.59% |
a | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 16 for more information. |
ALLOCATION BY SECTOR
As of 2/28/18
Sector | Percentage of Total Investments* |
Materials | 50.82 | % | ||
Financials | 29.68 | |||
Consumer Staples | 8.46 | |||
Industrials | 4.73 | |||
Utilities | 2.81 | |||
Consumer Discretionary | 2.41 | |||
Energy | 1.09 | |||
|
| |||
TOTAL | 100.00 | % | ||
|
|
TEN LARGEST FUND HOLDINGS
As of 2/28/18
Security | Percentage of Total Investments* |
Credicorp Ltd. | 22.68 | % | ||
Southern Copper Corp. | 14.07 | |||
Cia. de Minas Buenaventura SAA ADR | 9.45 | |||
Alicorp SAA | 4.79 | |||
Intercorp Financial Services Inc. | 4.60 | |||
Volcan Cia. Minera SAA Class B | 3.65 | |||
Ferreycorp SAA | 3.44 | |||
Cia. Minera Milpo SAA | 3.32 | |||
Trevali Mining Corp. | 3.30 | |||
InRetail Peru Corp. | 2.99 | |||
|
| |||
TOTAL | 72.29 | % | ||
|
|
* | Excludes money market funds. |
10 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI PHILIPPINES ETF
Performance as of February 28, 2018
The iShares MSCI Philippines ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Philippine equities, as represented by the MSCI Philippines Investable Market 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. For the six-month reporting period ended February 28, 2018, the total return for the Fund was 1.96%, net of fees, while the total return for the Index was 2.20%.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||||||||
1 Year | 8.80% | 9.39% | 9.41% | 8.80% | 9.39% | 9.41% | ||||||||||||||||||||||
5 Years | (1.11)% | (1.22)% | (0.43)% | (5.41)% | (5.96)% | (2.13)% | ||||||||||||||||||||||
Since Inception | 6.19% | 6.04% | 6.74% | 56.16% | 54.58% | 62.27% |
The inception date of the Fund was 9/28/10. The first day of secondary market trading was 9/29/10.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 16 for more information.
Shareholder Expenses | ||||||||||||||||||||||||||
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Annualized Expense Ratio | ||||||||||||||||||||
$ | 1,000.00 | $ | 1,019.60 | $ | 2.95 | $ | 1,000.00 | $ | 1,021.90 | $ | 2.96 | 0.59% |
a | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 16 for more information. |
ALLOCATION BY SECTOR
As of 2/28/18
Sector | Percentage of Total Investments* |
Financials | 29.22 | % | ||
Industrials | 23.50 | |||
Real Estate | 22.69 | |||
Consumer Discretionary | 6.14 | |||
Utilities | 6.12 | |||
Telecommunication Services | 5.57 | |||
Consumer Staples | 4.79 | |||
Materials | 1.33 | |||
Energy | 0.64 | |||
|
| |||
TOTAL | 100.00 | % | ||
|
|
TEN LARGEST FUND HOLDINGS
As of 2/28/18
Security | Percentage of Total Investments* |
BDO Unibank Inc. | 9.06 | % | ||
SM Prime Holdings Inc. | 9.04 | |||
Ayala Land Inc. | 8.95 | |||
Ayala Corp. | 7.76 | |||
SM Investments Corp. | 6.70 | |||
JG Summit Holdings Inc. | 6.10 | |||
Aboitiz Equity Ventures Inc. | 4.51 | |||
Universal Robina Corp. | 3.89 | |||
PLDT Inc. | 3.88 | |||
Jollibee Foods Corp. | 3.82 | |||
|
| |||
TOTAL | 63.71 | % | ||
|
|
* | Excludes money market funds. |
FUND PERFORMANCE OVERVIEWS | 11 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI POLAND ETF
Performance as of February 28, 2018
The iShares MSCI Poland ETF (the “Fund”) (formerly the iShares MSCI Poland Capped ETF) seeks to track the investment results of a broad-based index composed of Polish equities, as represented by the MSCI Poland IMI 25/50 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. For the six-month reporting period ended February 28, 2018, the total return for the Fund was -1.58%, net of fees, while the total return for the Index was -1.37%.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||||||||
1 Year | 27.67% | 27.47% | 28.07% | 27.67% | 27.47% | 28.07% | ||||||||||||||||||||||
5 Years | 2.17% | 2.11% | 2.51% | 11.33% | 11.01% | 13.19% | ||||||||||||||||||||||
Since Inception | 4.48% | 4.38% | 4.79% | 40.53% | 39.46% | 43.84% |
The inception date of the Fund was 5/25/10. The first day of secondary market trading was 5/26/10.
Index performance through February 11, 2013 reflects the performance of the MSCI Poland Investable Market Index. Index performance beginning on February 12, 2013 reflects the performance of the MSCI Poland IMI 25/50 Index.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 16 for more information.
Shareholder Expenses | ||||||||||||||||||||||||||
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Annualized Expense Ratio | ||||||||||||||||||||
$ | 1,000.00 | $ | 984.20 | $ | 2.90 | $ | 1,000.00 | $ | 1,021.90 | $ | 2.96 | 0.59% |
a | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 16 for more information. |
ALLOCATION BY SECTOR
As of 2/28/18
Sector | Percentage of Total Investments* |
Financials | 47.37 | % | ||
Energy | 17.16 | |||
Consumer Discretionary | 9.09 | |||
Materials | 8.66 | |||
Utilities | 6.15 | |||
Information Technology | 4.21 | |||
Telecommunication Services | 2.88 | |||
Industrials | 1.74 | |||
Consumer Staples | 1.72 | |||
Real Estate | 0.73 | |||
Health Care | 0.29 | |||
|
| |||
TOTAL | 100.00 | % | ||
|
|
TEN LARGEST FUND HOLDINGS
As of 2/28/18
Security | Percentage of Total Investments* |
Powszechna Kasa Oszczednosci Bank Polski SA | 14.94 | % | ||
Polski Koncern Naftowy ORLEN SA | 10.82 | |||
Powszechny Zaklad Ubezpieczen SA | 9.51 | |||
Bank Pekao SA | 7.52 | |||
Bank Zachodni WBK SA | 4.44 | |||
LPP SA | 4.41 | |||
KGHM Polska Miedz SA | 4.40 | |||
Polskie Gornictwo Naftowe i Gazownictwo SA | 4.00 | |||
PGE Polska Grupa Energetyczna SA | 3.26 | |||
Alior Bank SA | 2.92 | |||
|
| |||
TOTAL | 66.22 | % | ||
|
|
* | Excludes money market funds. |
12 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI QATAR ETF
Performance as of February 28, 2018
The iShares MSCI Qatar ETF (the “Fund”) (formerly the iShares MSCI Qatar Capped ETF) seeks to track the investment results of an index composed of Qatar equities, as represented by the MSCI All Qatar Capped Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month reporting period ended February 28, 2018, the total return for the Fund was -0.98%, net of fees, while the total return for the Index was -0.84%.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||||||||
1 Year | (15.92)% | (15.90)% | (15.63)% | (15.92)% | (15.90)% | (15.63)% | ||||||||||||||||||||||
Since Inception | (7.54)% | (7.71)% | (7.06)% | (25.98)% | (26.50)% | (24.47)% |
The inception date of the Fund was 4/29/14. The first day of secondary market trading was 5/1/14.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 16 for more information.
Shareholder Expenses | ||||||||||||||||||||||||||
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Annualized Expense Ratio | ||||||||||||||||||||
$ | 1,000.00 | $ | 990.20 | $ | 2.91 | $ | 1,000.00 | $ | 1,021.90 | $ | 2.96 | 0.59% |
a | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 16 for more information. |
ALLOCATION BY SECTOR
As of 2/28/18
Sector | Percentage of Total Investments* |
Financials | 53.47 | % | ||
Industrials | 16.81 | |||
Real Estate | 10.76 | |||
Telecommunication Services | 7.35 | |||
Energy | 4.80 | |||
Utilities | 3.95 | |||
Health Care | 1.04 | |||
Materials | 0.99 | |||
Consumer Staples | 0.83 | |||
|
| |||
TOTAL | 100.00 | % | ||
|
|
TEN LARGEST FUND HOLDINGS
As of 2/28/18
Security | Percentage of Total Investments* |
Qatar National Bank QPSC | 21.50 | % | ||
Industries Qatar QSC | 11.96 | |||
Masraf Al Rayan QSC | 10.56 | |||
Ooredoo QPSC | 4.74 | |||
Ezdan Holding Group QSC | 4.52 | |||
Qatar Insurance Co. SAQ | 4.48 | |||
Commercial Bank PQSC (The) | 4.27 | |||
Doha Bank QPSC | 4.18 | |||
Qatar Islamic Bank SAQ | 4.08 | |||
Qatar Electricity & Water Co. QSC | 3.95 | |||
|
| |||
TOTAL | 74.24 | % | ||
|
|
* | Excludes money market funds. |
FUND PERFORMANCE OVERVIEWS | 13 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI SAUDI ARABIA ETF
Performance as of February 28, 2018
The iShares MSCI Saudi Arabia ETF (the “Fund”) (formerly the iShares MSCI Saudi Arabia Capped ETF) seeks to track the investment results of a broad-based index composed of Saudi Arabian equities, as represented by the MSCI Saudi Arabia IMI 25/50 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. For the six-month reporting period ended February 28, 2018, the total return for the Fund was 3.47%, net of fees, while the total return for the Index was 3.84%.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||||||||
1 Year | 12.19% | 10.77% | 13.13% | 12.19% | 10.77% | 13.13% | ||||||||||||||||||||||
Since Inception | 5.26% | 5.09% | 6.22% | 13.42% | 12.97% | 15.98% |
The inception date of the Fund was 9/16/15. The first day of secondary market trading was 9/17/15.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 16 for more information.
Shareholder Expenses | ||||||||||||||||||||||||||
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Annualized Expense Ratio | ||||||||||||||||||||
$ | 1,000.00 | $ | 1,034.70 | $ | 3.73 | $ | 1,000.00 | $ | 1,021.10 | $ | 3.71 | 0.74% |
a | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 16 for more information. |
ALLOCATION BY SECTOR
As of 2/28/18
Sector | Percentage of Total Investments* |
Financials | 38.16 | % | ||
Materials | 32.77 | |||
Consumer Staples | 7.66 | |||
Telecommunication Services | 6.84 | |||
Utilities | 3.44 | |||
Consumer Discretionary | 3.42 | |||
Health Care | 2.97 | |||
Real Estate | 2.55 | |||
Industrials | 1.18 | |||
Energy | 1.01 | |||
|
| |||
TOTAL | 100.00 | % | ||
|
|
TEN LARGEST FUND HOLDINGS
As of 2/28/18
Security | Percentage of Total Investments* |
Saudi Basic Industries Corp. | 14.48 | % | ||
Al Rajhi Bank | 10.65 | |||
National Commercial Bank | 8.55 | |||
Saudi Telecom Co. | 5.43 | |||
Samba Financial Group | 4.47 | |||
Almarai Co. JSC | 4.38 | |||
Saudi Arabian Mining Co. | 3.93 | |||
Saudi Electricity Co. | 3.21 | |||
Riyad Bank | 3.03 | |||
Alinma Bank | 2.80 | |||
|
| |||
TOTAL | 60.93 | % | ||
|
|
* | Excludes money market funds. |
14 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI UAE ETF
Performance as of February 28, 2018
The iShares MSCI UAE ETF (the “Fund”) (formerly the iShares MSCI UAE Capped ETF) seeks to track the investment results of an index composed of UAE equities, as represented by the MSCI All UAE Capped Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month reporting period ended February 28, 2018, the total return for the Fund was -4.61%, net of fees, while the total return for the Index was -4.34%.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||||||||
1 Year | 2.10% | 2.40% | 2.81% | 2.10% | 2.40% | 2.81% | ||||||||||||||||||||||
Since Inception | (6.61)% | (6.81)% | (6.08)% | (23.10)% | (23.72)% | (21.40)% |
The inception date of the Fund was 4/29/14. The first day of secondary market trading was 5/1/14.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 16 for more information.
Shareholder Expenses | ||||||||||||||||||||||||||
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Annualized Expense Ratio | ||||||||||||||||||||
$ | 1,000.00 | $ | 953.90 | $ | 2.86 | $ | 1,000.00 | $ | 1,021.90 | $ | 2.96 | 0.59% |
a | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 16 for more information. |
ALLOCATION BY SECTOR
As of 2/28/18
Sector | Percentage of Total Investments* |
Financials | 33.25 | % | ||
Real Estate | 24.24 | |||
Telecommunication Services | 16.68 | |||
Industrials | 15.19 | |||
Health Care | 4.52 | |||
Energy | 3.53 | |||
Consumer Discretionary | 1.78 | |||
Consumer Staples | 0.81 | |||
|
| |||
TOTAL | 100.00 | % | ||
|
|
TEN LARGEST FUND HOLDINGS
As of 2/28/18
Security | Percentage of Total Investments* |
Emirates Telecommunications Group Co. PJSC | 16.68 | % | ||
Emaar Properties PJSC | 11.73 | |||
First Abu Dhabi Bank PJSC | 8.54 | |||
DP World Ltd. | 7.08 | |||
Abu Dhabi Commercial Bank PJSC | 4.59 | |||
Aldar Properties PJSC | 4.53 | |||
NMC Health PLC | 4.52 | |||
Dubai Islamic Bank PJSC | 4.23 | |||
DAMAC Properties Dubai Co. PJSC | 3.92 | |||
Union National Bank PJSC | 3.24 | |||
|
| |||
TOTAL | 69.06 | % | ||
|
|
* | Excludes money market funds. |
FUND PERFORMANCE OVERVIEWS | 15 |
Table of Contents
Past performance is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at www.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. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer 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. Certain funds may have a NAV which is determined prior to the opening of regular trading on its listed exchange and their market returns are calculated using the midpoint of the bid/ask spread as of the opening of regular trading on the exchange. 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.
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested on September 1, 2017 and held through February 28, 2018, is intended to help you understand your ongoing costs (in dollars and cents) of investing in a Fund and to compare these costs with the ongoing costs of investing in other funds.
Actual Expenses — The table provides information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. To estimate the expenses that you paid on your account over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number corresponding to your Fund under the heading entitled “Expenses Paid During Period.”
Hypothetical Example for Comparison Purposes — The table also provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions paid on purchases and sales of fund shares. Therefore, the hypothetical examples are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
16 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI ARGENTINA AND GLOBAL EXPOSURE ETF
February 28, 2018
Security | Shares | Value | ||||||
COMMON STOCKS — 97.78% |
| |||||||
ARGENTINA — 52.05% |
| |||||||
Adecoagro SAa | 168,497 | $ | 1,514,788 | |||||
Arcos Dorados Holdings Inc. Class Aa | 194,456 | 1,857,055 | ||||||
Banco Macro SA ADR | 27,360 | 3,094,690 | ||||||
BBVA Banco Frances SA ADR | 101,760 | 2,389,325 | ||||||
Cablevision Holding GDRa | 18,538 | 431,256 | ||||||
Cresud SACIF y A ADR | 67,384 | 1,511,423 | ||||||
Empresa Distribuidora y Comercializadora Norte SA ADRa | 2,781 | 160,853 | ||||||
Globant SAa | 41,464 | 2,159,445 | ||||||
Grupo Financiero Galicia SA ADR | 104,651 | 6,586,734 | ||||||
Grupo Supervielle SA ADR | 91,516 | 2,810,456 | ||||||
IRSA Inversiones y Representaciones SA ADR | 46,751 | 1,300,613 | ||||||
Pampa Energia SA ADRa | 42,374 | 2,683,545 | ||||||
Petrobras Argentina SA ADRa | 6,490 | 82,423 | ||||||
Telecom Argentina SA ADR | 86,026 | 2,865,526 | ||||||
Transportadora de Gas del Sur SA ADRa | 109,813 | 2,250,068 | ||||||
YPF SA ADR | 127,448 | 2,945,323 | ||||||
|
| |||||||
34,643,523 | ||||||||
CANADA — 3.63% |
| |||||||
Pan American Silver Corp. | 78,910 | 1,195,951 | ||||||
SSR Mining Inc.a,b | 146,647 | 1,222,297 | ||||||
|
| |||||||
2,418,248 | ||||||||
CHILE — 3.80% |
| |||||||
Cencosud SA | 417,224 | 1,269,065 | ||||||
Cia. Cervecerias Unidas SA | 89,362 | 1,260,493 | ||||||
|
| |||||||
2,529,558 | ||||||||
ITALY — 12.41% |
| |||||||
Tenaris SA | 476,876 | 8,259,033 | ||||||
|
| |||||||
8,259,033 | ||||||||
SPAIN — 1.85% |
| |||||||
Prosegur Cia. de Seguridad SA | 153,386 | 1,230,033 | ||||||
|
| |||||||
1,230,033 | ||||||||
UNITED KINGDOM — 0.77% |
| |||||||
IOX Investments Ltd.a | 616,161 | 6,076 | ||||||
Phoenix Global Resources PLCa | 1,049,760 | 506,245 | ||||||
|
| |||||||
512,321 |
Security | Shares | Value | ||||||
UNITED STATES — 23.27% |
| |||||||
MercadoLibre Inc.b | 39,919 | $ | 15,487,375 | |||||
|
| |||||||
15,487,375 | ||||||||
|
| |||||||
TOTAL COMMON STOCKS | 65,080,091 | |||||||
PREFERRED STOCKS — 1.89% |
| |||||||
CHILE — 1.89% |
| |||||||
Embotelladora Andina SA Class B, Preference Shares | 253,880 | 1,255,845 | ||||||
|
| |||||||
1,255,845 | ||||||||
|
| |||||||
TOTAL PREFERRED STOCKS | 1,255,845 | |||||||
SHORT-TERM INVESTMENTS — 1.83% |
| |||||||
MONEY MARKET FUNDS — 1.83% |
| |||||||
BlackRock Cash Funds: Institutional, |
| |||||||
1.58%c,d,e | 1,027,397 | 1,027,500 | ||||||
BlackRock Cash Funds: Treasury, |
| |||||||
1.32%c,d | 188,651 | 188,651 | ||||||
|
| |||||||
1,216,151 | ||||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||||
(Cost: $1,216,151) |
| 1,216,151 | ||||||
|
| |||||||
TOTAL INVESTMENTS |
| |||||||
(Cost: $60,841,511) |
| 67,552,087 | ||||||
Other Assets, Less Liabilities — (1.50)% |
| (995,327 | ) | |||||
|
| |||||||
NET ASSETS — 100.00% | $ | 66,556,760 | ||||||
|
|
ADR — American Depositary Receipts
GDR — Global Depositary Receipts
a | Non-income producing security. |
b | All or a portion of this security is on loan. |
c | Affiliate of the Fund. |
d | Annualized 7-day yield as of period end. |
e | All or a portion of this security was purchased with cash collateral received from loaned securities. |
SCHEDULESOF INVESTMENTS | 17 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI ARGENTINA AND GLOBAL EXPOSURE ETF
February 28, 2018
Affiliates (Note 2)
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows:
Affiliated issuer | Shares held at 08/31/17 | Shares purchased | Shares sold | Shares held at 02/28/18 | Value at 02/28/18 | Income | Net realized gain (loss) a | Change in unrealized appreciation (depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, | — | 1,027,397 | b | — | 1,027,397 | $ | 1,027,500 | $ | 8 | c | $ | — | $ | — | ||||||||||||||||||
BlackRock Cash Funds: Treasury, | 43,863 | 144,788 | b | — | 188,651 | 188,651 | 677 | — | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 1,216,151 | $ | 685 | $ | — | $ | — | |||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
a | Includes realized capital gain distributions from an affiliated fund, if any. |
b | Net of purchases and sales. |
c | Includes the Fund’s portion of securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. |
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments |
| |||||||||||||||
Assets |
| |||||||||||||||
Common stocks | $ | 64,642,759 | $ | 437,332 | $ | — | $ | 65,080,091 | ||||||||
Preferred stocks | 1,255,845 | — | — | 1,255,845 | ||||||||||||
Money market funds | 1,216,151 | — | — | 1,216,151 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 67,114,755 | $ | 437,332 | $ | — | $ | 67,552,087 | ||||||||
|
|
|
|
|
|
|
| |||||||||
See notes to financial statements.
18 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI BRAZIL SMALL-CAP ETF
February 28, 2018
Security | Shares | Value | ||||||
COMMON STOCKS — 73.77% |
| |||||||
AUTO COMPONENTS — 1.14% |
| |||||||
Mahle-Metal Leve SA | 65,100 | $ | 464,893 | |||||
Tupy SA | 83,700 | 466,324 | ||||||
|
| |||||||
931,217 | ||||||||
BANKS — 0.03% |
| |||||||
Banco ABC Brasil SAa | 4,717 | 27,587 | ||||||
|
| |||||||
27,587 | ||||||||
COMMERCIAL SERVICES & SUPPLIES — 0.92% |
| |||||||
Valid Solucoes e Servicos de Seguranca em Meios de Pagamento e Identificacao SA | 123,061 | 750,393 | ||||||
|
| |||||||
750,393 | ||||||||
CONSTRUCTION MATERIALS — 1.01% |
| |||||||
Magnesita Refratarios SA | 49,020 | 829,889 | ||||||
|
| |||||||
829,889 | ||||||||
DIVERSIFIED CONSUMER SERVICES — 7.46% |
| |||||||
Anima Holding SA | 65,100 | 541,840 | ||||||
Estacio Participacoes SA | 465,000 | 4,852,174 | ||||||
Ser Educacional SAb | 74,553 | 711,395 | ||||||
|
| |||||||
6,105,409 | ||||||||
ELECTRIC UTILITIES — 3.68% |
| |||||||
Alupar Investimento SA Units | 251,172 | 1,407,104 | ||||||
Eletropaulo Metropolitana Eletricidade de Sao Paulo SA | 176,700 | 951,828 | ||||||
Light SAa | 139,500 | 655,688 | ||||||
|
| |||||||
3,014,620 | ||||||||
FOOD PRODUCTS — 4.46% |
| |||||||
Marfrig Global Foods SAa | 372,000 | 683,598 | ||||||
Minerva SA | 176,700 | 493,862 | ||||||
Sao Martinho SA | 279,000 | 1,575,883 | ||||||
SLC Agricola SA | 83,700 | 894,518 | ||||||
|
| |||||||
3,647,861 | ||||||||
HEALTH CARE PROVIDERS & SERVICES — 4.78% |
| |||||||
Alliar Medicos A Frente SAa | 74,400 | 354,051 | ||||||
Fleury SA | 325,500 | 2,718,219 | ||||||
Instituto Hermes Pardini SA | 93,000 | 841,616 | ||||||
|
| |||||||
3,913,886 | ||||||||
HOTELS, RESTAURANTS & LEISURE — 3.93% |
| |||||||
CVC Brasil Operadora e Agencia de Viagens SA | 186,000 | 3,214,172 | ||||||
|
| |||||||
3,214,172 |
Security | Shares | Value | ||||||
HOUSEHOLD DURABLES — 6.87% |
| |||||||
Cyrela Brazil Realty SA Empreendimentos e Participacoes | 446,400 | $ | 2,107,819 | |||||
Even Construtora e Incorporadora SAa | 213,900 | 398,336 | ||||||
Ez Tec Empreendimentos e Participacoes SA | 102,353 | 765,895 | ||||||
MRV Engenharia e Participacoes SA | 502,200 | 2,346,563 | ||||||
|
| |||||||
5,618,613 | ||||||||
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS — 1.19% |
| |||||||
AES Tiete Energia SA | 279,000 | 974,729 | ||||||
|
| |||||||
974,729 | ||||||||
INSURANCE — 0.52% |
| |||||||
Wiz Solucoes e Corretagem de Seguros SA | 111,600 | 424,243 | ||||||
|
| |||||||
424,243 | ||||||||
INTERNET & DIRECT MARKETING RETAIL — 3.16% |
| |||||||
B2W Cia. Digitala | 353,427 | 2,588,081 | ||||||
|
| |||||||
2,588,081 | ||||||||
MACHINERY — 1.55% |
| |||||||
Iochpe Maxion SA | 186,007 | 1,264,762 | ||||||
|
| |||||||
1,264,762 | ||||||||
MEDIA — 4.47% |
| |||||||
Multiplus SA | 85,200 | 902,943 | ||||||
Smiles Fidelidade SA | 106,295 | 2,757,535 | ||||||
|
| |||||||
3,660,478 | ||||||||
MULTILINE RETAIL — 4.74% |
| |||||||
Magazine Luiza SA | 130,300 | 3,651,809 | ||||||
Marisa Lojas SAa | 102,300 | 223,257 | ||||||
|
| |||||||
3,875,066 | ||||||||
OIL, GAS & CONSUMABLE FUELS — 0.49% |
| |||||||
QGEP Participacoes SA | 139,500 | 401,485 | ||||||
|
| |||||||
401,485 | ||||||||
PAPER & FOREST PRODUCTS — 2.31% |
| |||||||
Duratex SA | 539,400 | 1,891,117 | ||||||
|
| |||||||
1,891,117 | ||||||||
REAL ESTATE MANAGEMENT & DEVELOPMENT — 4.38% |
| |||||||
Aliansce Shopping Centers SAa | 158,100 | 872,075 | ||||||
BR Properties SA | 213,900 | 591,250 | ||||||
Iguatemi Empresa de Shopping Centers SA | 151,941 | 1,846,910 | ||||||
Sonae Sierra Brasil SA | 37,600 | 270,824 | ||||||
|
| |||||||
3,581,059 |
SCHEDULESOF INVESTMENTS | 19 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI BRAZIL SMALL-CAP ETF
February 28, 2018
Security | Shares | Value | ||||||
ROAD & RAIL — 1.58% |
| |||||||
Cosan Logistica SAa | 241,884 | $ | 754,969 | |||||
JSL SAa | 83,700 | 190,394 | ||||||
Movida Participacoes SA | 148,798 | 349,008 | ||||||
|
| |||||||
1,294,371 | ||||||||
SOFTWARE — 3.83% |
| |||||||
Linx SA | 213,900 | 1,249,657 | ||||||
TOTVS SA | 200,146 | 1,881,480 | ||||||
|
| |||||||
3,131,137 | ||||||||
SPECIALTY RETAIL — 4.47% |
| |||||||
Cia. Hering | 251,100 | 1,777,699 | ||||||
Via Varejo SA | 223,200 | 1,881,785 | ||||||
|
| |||||||
3,659,484 | ||||||||
TEXTILES, APPAREL & LUXURY GOODS — 2.39% |
| |||||||
Arezzo Industria e Comercio SA | 78,500 | 1,355,552 | ||||||
Guararapes Confeccoes SA | 12,400 | 601,154 | ||||||
|
| |||||||
1,956,706 | ||||||||
TRANSPORTATION INFRASTRUCTURE — 2.60% |
| |||||||
EcoRodovias Infraestrutura e Logistica SA | 390,600 | 1,208,320 | ||||||
Prumo Logistica SAa | 130,200 | 454,873 | ||||||
Santos Brasil Participacoes SAa | 399,900 | 461,601 | ||||||
|
| |||||||
2,124,794 | ||||||||
WATER UTILITIES — 1.81% |
| |||||||
Cia. de Saneamento de Minas Gerais-COPASA | 109,100 | 1,479,293 | ||||||
|
| |||||||
1,479,293 | ||||||||
|
| |||||||
TOTAL COMMON STOCKS | ||||||||
(Cost: $36,016,507) |
| 60,360,452 | ||||||
PREFERRED STOCKS — 25.71% |
| |||||||
AIRLINES — 1.27% |
| |||||||
Gol Linhas Aereas Inteligentes SA, Preference Shares | 176,700 | 1,044,291 | ||||||
|
| |||||||
1,044,291 | ||||||||
BANKS — 3.02% |
| |||||||
Banco ABC Brasil SA, Preference Shares | 130,256 | 755,375 | ||||||
Banco do Estado do Rio Grande do Sul SA Class B, Preference Shares | 306,900 | 1,714,578 | ||||||
|
| |||||||
2,469,953 | ||||||||
ELECTRIC UTILITIES — 2.18% |
| |||||||
Cia. Energetica do Ceara Class A, Preference Shares | 22,100 | 402,715 |
Security | Shares | Value | ||||||
Cia. Paranaense de Energia Class B, Preference Shares | 176,700 | $ | 1,378,790 | |||||
|
| |||||||
1,781,505 | ||||||||
GAS UTILITIES — 0.93% |
| |||||||
Cia. de Gas de Sao Paulo – COMGAS, Preference Shares | 42,000 | 761,591 | ||||||
|
| |||||||
761,591 | ||||||||
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS — 1.86% |
| |||||||
Cia. Energetica de Sao Paulo Class B, Preference Shares | 325,500 | 1,522,924 | ||||||
|
| |||||||
1,522,924 | ||||||||
MACHINERY — 2.42% |
| |||||||
Marcopolo SA, Preference Shares | 855,600 | 1,077,154 | ||||||
Randon SA Implemetos e Participacoes, Preference Shares | 316,250 | 901,416 | ||||||
|
| |||||||
1,978,570 | ||||||||
METALS & MINING — 11.85% |
| |||||||
Bradespar SA, Preference Shares | 390,600 | 4,108,288 | ||||||
Metalurgica Gerdau SA, Preference Shares | 1,125,300 | 2,729,470 | ||||||
Usinas Siderurgicas de Minas Gerais SA Class A, Preference Shares | 753,300 | 2,856,685 | ||||||
|
| |||||||
9,694,443 | ||||||||
TEXTILES, APPAREL & LUXURY GOODS — 1.68% |
| |||||||
Alpargatas SA, Preference Shares | 260,400 | 1,373,036 | ||||||
|
| |||||||
1,373,036 | ||||||||
WATER UTILITIES — 0.50% |
| |||||||
Cia. de Saneamento do Parana, Preference Shares | 130,200 | 413,995 | ||||||
|
| |||||||
413,995 | ||||||||
|
| |||||||
TOTAL PREFERRED STOCKS | 21,040,308 | |||||||
SHORT-TERM INVESTMENTS — 0.09% |
| |||||||
MONEY MARKET FUNDS — 0.09% |
| |||||||
BlackRock Cash Funds: Treasury, |
| |||||||
1.32%c,d | 69,182 | 69,182 | ||||||
|
| |||||||
69,182 | ||||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS | ||||||||
(Cost: $69,182) |
| 69,182 | ||||||
|
|
20 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI BRAZIL SMALL-CAP ETF
February 28, 2018
Value | ||||||||
TOTAL INVESTMENTS |
| |||||||
(Cost: $45,594,069) |
| $ | 81,469,942 | |||||
Other Assets, Less Liabilities — 0.43% |
| 354,840 | ||||||
|
| |||||||
NET ASSETS — 100.00% | $ | 81,824,782 | ||||||
|
|
a | Non-income producing security. |
b | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
c | Affiliate of the Fund. |
d | Annualized 7-day yield as of period end. |
Affiliates (Note 2)
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows:
Affiliated issuer | Shares held at 08/31/17 | Shares purchased | Shares sold | Shares held at 02/28/18 | Value at 02/28/18 | Income | Net realized gain (loss) a | Change in unrealized appreciation (depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Treasury, | 1,362 | 67,820 | b | — | 69,182 | $ | 69,182 | $ | 596 | $ | — | $ | — | |||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
a | Includes realized capital gain distributions from an affiliated fund, if any. |
b | Net of purchases and sales. |
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments |
| |||||||||||||||
Assets |
| |||||||||||||||
Common stocks | $ | 60,360,452 | $ | — | $ | — | $ | 60,360,452 | ||||||||
Preferred stocks | 21,040,308 | — | — | 21,040,308 | ||||||||||||
Money market funds | 69,182 | — | — | 69,182 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 81,469,942 | $ | — | $ | — | $ | 81,469,942 | ||||||||
|
|
|
|
|
|
|
| |||||||||
See notes to financial statements.
SCHEDULESOF INVESTMENTS | 21 |
Table of Contents
Schedule of Investments (Unaudited)
February 28, 2018
Security | Shares | Value | ||||||
COMMON STOCKS — 99.90% |
| |||||||
AEROSPACE & DEFENSE — 0.07% |
| |||||||
AviChina Industry & Technology Co. Ltd. Class H | 4,521,000 | $ | 2,518,953 | |||||
|
| |||||||
2,518,953 | ||||||||
AIRLINES — 0.33% |
| |||||||
Air China Ltd. Class H | 4,016,000 | 6,127,694 | ||||||
China Southern Airlines Co. Ltd. Class H | 4,016,000 | 5,388,675 | ||||||
|
| |||||||
11,516,369 | ||||||||
AUTO COMPONENTS — 0.24% |
| |||||||
Fuyao Glass Industry Group Co. Ltd. Class Ha | 1,104,400 | 4,431,544 | ||||||
Nexteer Automotive Group Ltd. | 1,757,000 | 3,915,770 | ||||||
|
| |||||||
8,347,314 | ||||||||
AUTOMOBILES — 2.43% |
| |||||||
Brilliance China Automotive Holdings Ltd. | 6,024,000 | 16,243,007 | ||||||
BYD Co. Ltd. Class Hb | 1,255,000 | 11,619,331 | ||||||
Dongfeng Motor Group Co. Ltd. Class H | 5,522,000 | 6,993,089 | ||||||
Geely Automobile Holdings Ltd. | 10,040,000 | 32,781,107 | ||||||
Great Wall Motor Co. Ltd. Class H | 6,400,500 | 7,573,976 | ||||||
Guangzhou Automobile Group Co. Ltd. Class H | 4,518,000 | 10,046,030 | ||||||
|
| |||||||
85,256,540 | ||||||||
BANKS — 14.59% |
| |||||||
Agricultural Bank of China Ltd. Class H | 53,965,000 | 29,998,562 | ||||||
Bank of China Ltd. Class H | 164,154,000 | 89,573,253 | ||||||
Bank of Communications Co. Ltd. Class H | 18,323,200 | 14,704,829 | ||||||
China CITIC Bank Corp. Ltd. Class H | 18,574,800 | 13,553,743 | ||||||
China Construction Bank Corp. Class H | 173,190,000 | 180,376,280 | ||||||
China Everbright Bank Co. Ltd. Class H | 5,522,000 | 2,843,809 | ||||||
China Merchants Bank Co. Ltd. Class H | 8,032,150 | 33,923,627 | ||||||
China Minsheng Banking Corp. Ltd. Class H | 11,546,300 | 12,069,663 |
Security | Shares | Value | ||||||
Chongqing Rural Commercial Bank Co. Ltd. Class H | 5,020,000 | $ | 4,079,997 | |||||
Industrial & Commercial Bank of China Ltd. Class H | 151,855,000 | 131,182,166 | ||||||
|
| |||||||
512,305,929 | ||||||||
BEVERAGES — 0.50% |
| |||||||
China Resources Beer Holdings Co. Ltd. | 3,514,000 | 13,561,499 | ||||||
Tsingtao Brewery Co. Ltd. Class H | 712,000 | 3,912,438 | ||||||
|
| |||||||
17,473,937 | ||||||||
BIOTECHNOLOGY — 0.11% |
| |||||||
3SBio Inc.a,b,c | 2,008,000 | 3,823,393 | ||||||
|
| |||||||
3,823,393 | ||||||||
CAPITAL MARKETS — 1.66% |
| |||||||
China Cinda Asset Management Co. Ltd. Class H | 18,072,000 | 6,789,731 | ||||||
China Everbright Ltd. | 2,008,000 | 4,418,714 | ||||||
China Galaxy Securities Co. Ltd. Class H | 6,777,000 | 4,754,543 | ||||||
China Huarong Asset Management Co. Ltd. Class Ha | 21,084,000 | 9,564,898 | ||||||
CITIC Securities Co. Ltd. Class H | 4,769,000 | 10,799,162 | ||||||
GF Securities Co. Ltd. Class H | 2,811,200 | 5,417,415 | ||||||
Haitong Securities Co. Ltd. Class H | 6,726,800 | 9,627,766 | ||||||
Huatai Securities Co. Ltd. Class Ha | 3,413,600 | 6,883,648 | ||||||
|
| |||||||
58,255,877 | ||||||||
CHEMICALS — 0.12% |
| |||||||
Sinopec Shanghai Petrochemical Co. Ltd. Class H | 7,028,000 | 4,221,129 | ||||||
|
| |||||||
4,221,129 | ||||||||
COMMERCIAL SERVICES & SUPPLIES — 0.22% |
| |||||||
China Everbright International Ltd.b | 5,020,000 | 7,775,088 | ||||||
|
| |||||||
7,775,088 | ||||||||
COMMUNICATIONS EQUIPMENT — 0.25% |
| |||||||
BYD Electronic International Co. Ltd. | 1,380,500 | 3,422,450 |
22 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI CHINA ETF
February 28, 2018
Security | Shares | Value | ||||||
ZTE Corp. Class Hc | 1,506,040 | $ | 5,311,835 | |||||
|
| |||||||
8,734,285 | ||||||||
CONSTRUCTION & ENGINEERING — 0.74% |
| |||||||
China Communications Construction Co. Ltd. Class H | 9,036,000 | 10,115,313 | ||||||
China Railway Construction Corp. Ltd. Class H | 4,016,000 | 4,310,940 | ||||||
China Railway Group Ltd. Class H | 8,534,000 | 6,205,316 | ||||||
China State Construction International Holdings Ltd. | 4,016,000 | 5,470,789 | ||||||
|
| |||||||
26,102,358 | ||||||||
CONSTRUCTION MATERIALS — 0.54% |
| |||||||
Anhui Conch Cement Co. Ltd. Class H | 2,510,000 | 13,455,650 | ||||||
China National Building Material Co. Ltd. Class H | 5,522,000 | 5,482,977 | ||||||
|
| |||||||
18,938,627 | ||||||||
DIVERSIFIED CONSUMER SERVICES — 1.43% |
| |||||||
New Oriental Education & Technology Group Inc. ADR | 277,355 | 25,347,473 | ||||||
TAL Education Group Class A ADR | 656,114 | 24,774,865 | ||||||
|
| |||||||
50,122,338 | ||||||||
DIVERSIFIED FINANCIAL SERVICES — 0.12% |
| |||||||
Far East Horizon Ltd. | 4,268,000 | 4,308,742 | ||||||
|
| |||||||
4,308,742 | ||||||||
DIVERSIFIED TELECOMMUNICATION SERVICES — 0.90% |
| |||||||
China Communications Services Corp. Ltd. Class H | 4,518,800 | 2,690,965 | ||||||
China Telecom Corp. Ltd. Class H | 29,116,000 | 12,836,594 | ||||||
China Unicom Hong Kong Ltd.c | 12,550,000 | 16,262,252 | ||||||
|
| |||||||
31,789,811 | ||||||||
ELECTRICAL EQUIPMENT — 0.24% |
| |||||||
Shanghai Electric Group Co. Ltd. Class Hc | 6,032,000 | 2,273,958 | ||||||
Zhuzhou CRRC Times Electric Co. Ltd. Class H | 1,129,500 | 6,119,995 | ||||||
|
| |||||||
8,393,953 | ||||||||
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 1.74% |
| |||||||
AAC Technologies Holdings Inc. | 1,506,000 | 30,003,374 |
Security | Shares | Value | ||||||
Kingboard Chemical Holdings Ltd. | 1,255,000 | $ | 6,374,995 | |||||
Sunny Optical Technology Group Co. Ltd. | 1,480,900 | 24,734,340 | ||||||
|
| |||||||
61,112,709 | ||||||||
ENERGY EQUIPMENT & SERVICES — 0.12% |
| |||||||
China Oilfield Services Ltd. Class H | 4,016,000 | 4,239,091 | ||||||
|
| |||||||
4,239,091 | ||||||||
FOOD & STAPLES RETAILING — 0.18% |
| |||||||
Sun Art Retail Group Ltd. | 4,894,500 | 6,504,901 | ||||||
|
| |||||||
6,504,901 | ||||||||
FOOD PRODUCTS — 1.01% |
| |||||||
China Huishan Dairy Holdings Co. Ltd.c,d | 2,028,595 | 2 | ||||||
China Mengniu Dairy Co. Ltd. | 5,522,000 | 18,241,307 | ||||||
Tingyi Cayman Islands Holding Corp. | 4,016,000 | 8,437,126 | ||||||
Want Want China Holdings Ltd. | 10,291,000 | 8,692,767 | ||||||
|
| |||||||
35,371,202 | ||||||||
GAS UTILITIES — 0.84% |
| |||||||
China Gas Holdings Ltd.b | 3,518,000 | 10,969,445 | ||||||
China Resources Gas Group Ltd.b | 2,008,000 | 6,774,335 | ||||||
ENN Energy Holdings Ltd. | 1,506,000 | 11,604,897 | ||||||
|
| |||||||
29,348,677 | ||||||||
HEALTH CARE EQUIPMENT & SUPPLIES — 0.08% |
| |||||||
Shandong Weigao Group Medical Polymer Co. Ltd. Class H | 4,016,000 | 2,745,658 | ||||||
|
| |||||||
2,745,658 | ||||||||
HEALTH CARE PROVIDERS & SERVICES — 0.40% |
| |||||||
Shanghai Pharmaceuticals Holding Co. Ltd. Class H | 1,430,700 | 3,605,409 | ||||||
Sinopharm Group Co. Ltd. Class H | 2,409,600 | 10,638,784 | ||||||
|
| |||||||
14,244,193 | ||||||||
HEALTH CARE TECHNOLOGY — 0.10% |
| |||||||
Alibaba Health Information Technology Ltd.b,c | 7,028,000 | 3,457,733 | ||||||
|
| |||||||
3,457,733 | ||||||||
HOTELS, RESTAURANTS & LEISURE — 0.98% |
| |||||||
Yum China Holdings Inc. | 792,909 | 34,348,818 | ||||||
|
| |||||||
34,348,818 |
SCHEDULESOF INVESTMENTS | 23 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI CHINA ETF
February 28, 2018
Security | Shares | Value | ||||||
HOUSEHOLD DURABLES — 0.24% |
| |||||||
Haier Electronics Group Co. Ltd. | 2,510,000 | $ | 8,612,258 | |||||
|
| |||||||
8,612,258 | ||||||||
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS — 0.75% |
| |||||||
CGN Power Co. Ltd. Class Ha | 22,339,000 | 6,023,448 | ||||||
China Longyuan Power Group Corp. Ltd. Class H | 6,777,000 | 4,503,393 | ||||||
China Resources Power Holdings Co. Ltd. | 4,016,000 | 6,989,882 | ||||||
Huaneng Power International Inc. Class H | 9,036,000 | 5,611,920 | ||||||
Huaneng Renewables Corp. Ltd. Class H | 10,040,000 | 3,361,507 | ||||||
|
| |||||||
26,490,150 | ||||||||
INDUSTRIAL CONGLOMERATES — 1.08% |
| |||||||
Beijing Enterprises Holdings Ltd. | 1,004,000 | 5,587,543 | ||||||
CITIC Ltd. | 12,048,000 | 17,520,893 | ||||||
Fosun International Ltd. | 5,396,500 | 11,902,878 | ||||||
Shanghai Industrial Holdings Ltd. | 1,004,000 | 2,816,224 | ||||||
|
| |||||||
37,827,538 | ||||||||
INSURANCE — 6.71% |
| |||||||
China Life Insurance Co. Ltd. Class H | 15,311,000 | 45,491,004 | ||||||
China Pacific Insurance Group Co. Ltd. Class H | 5,471,800 | 26,920,923 | ||||||
China Taiping Insurance Holdings Co. Ltd. | 3,363,524 | 12,980,771 | ||||||
New China Life Insurance Co. Ltd. Class H | 1,606,400 | 9,617,502 | ||||||
People’s Insurance Co. Group of China Ltd. (The) Class H | 14,809,000 | 8,005,069 | ||||||
PICC Property & Casualty Co. Ltd. Class H | 9,538,308 | 18,917,427 | ||||||
Ping An Insurance Group Co. of China Ltd. Class H | 10,667,500 | 113,759,584 | ||||||
|
| |||||||
235,692,280 | ||||||||
INTERNET & DIRECT MARKETING RETAIL — 3.30% |
| |||||||
Ctrip.com International Ltd. ADRc | 812,487 | 37,358,152 | ||||||
JD.com Inc. ADRc | 1,355,651 | 63,918,945 | ||||||
Vipshop Holdings Ltd. ADRc | 840,097 | 14,609,287 | ||||||
|
| |||||||
115,886,384 |
Security | Shares | Value | ||||||
INTERNET SOFTWARE & SERVICES — 38.37% |
| |||||||
58.com Inc. ADRc | 189,003 | $ | 14,245,156 | |||||
Alibaba Group Holding Ltd. ADRb,c | 2,371,197 | 441,374,610 | ||||||
Autohome Inc. ADR | 108,432 | 8,480,467 | ||||||
Baidu Inc. ADRc | 566,256 | 142,889,039 | ||||||
Momo Inc. ADRc | 223,641 | 7,391,335 | ||||||
NetEase Inc. ADR | 163,652 | 48,007,314 | ||||||
SINA Corp./Chinac | 118,472 | 13,852,931 | ||||||
Tencent Holdings Ltd. | 11,721,700 | 647,402,495 | ||||||
Weibo Corp. ADRb,c | 96,133 | 12,355,013 | ||||||
YY Inc. ADRc | 89,105 | 11,523,950 | ||||||
|
| |||||||
1,347,522,310 | ||||||||
IT SERVICES — 0.18% |
| |||||||
TravelSky Technology Ltd. Class H | 2,008,000 | 6,415,089 | ||||||
|
| |||||||
6,415,089 | ||||||||
MACHINERY — 0.76% |
| |||||||
China Conch Venture Holdings Ltd. | 3,388,500 | 10,197,587 | ||||||
CRRC Corp. Ltd. Class H | 8,785,650 | 8,049,929 | ||||||
Haitian International Holdings Ltd. | 1,255,000 | 3,841,035 | ||||||
Weichai Power Co. Ltd. Class H | 4,016,000 | 4,526,487 | ||||||
|
| |||||||
26,615,038 | ||||||||
MEDIA — 0.11% |
| |||||||
Alibaba Pictures Group Ltd.b,c | 27,610,000 | 3,775,280 | ||||||
|
| |||||||
3,775,280 | ||||||||
METALS & MINING — 0.58% |
| |||||||
Aluminum Corp. of China Ltd. Class Hb,c | 8,032,000 | 4,875,468 | ||||||
China Molybdenum Co. Ltd. Class H | 7,530,000 | 6,158,486 | ||||||
Jiangxi Copper Co. Ltd. Class H | 2,510,000 | 3,970,941 | ||||||
Zijin Mining Group Co. Ltd. Class H | 12,048,000 | 5,542,637 | ||||||
|
| |||||||
20,547,532 | ||||||||
OIL, GAS & CONSUMABLE FUELS — 4.53% |
| |||||||
China Petroleum & Chemical Corp. Class H | 52,711,000 | 42,436,622 | ||||||
China Shenhua Energy Co. Ltd. Class H | 7,028,000 | 19,983,004 | ||||||
CNOOC Ltd. | 36,897,000 | 53,752,035 | ||||||
Kunlun Energy Co. Ltd. | 6,526,000 | 6,137,958 |
24 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI CHINA ETF
February 28, 2018
Security | Shares | Value | ||||||
PetroChina Co. Ltd. Class H | 43,674,000 | $ | 30,863,637 | |||||
Yanzhou Coal Mining Co. Ltd. Class H | 4,016,000 | 6,014,788 | ||||||
|
| |||||||
159,188,044 | ||||||||
PAPER & FOREST PRODUCTS — 0.29% |
| |||||||
Lee & Man Paper Manufacturing Ltd. | 3,263,000 | 3,731,978 | ||||||
Nine Dragons Paper Holdings Ltd. | 3,514,000 | 6,340,676 | ||||||
|
| |||||||
10,072,654 | ||||||||
PERSONAL PRODUCTS — 0.42% |
| |||||||
Hengan International Group Co. Ltd. | 1,506,000 | 14,722,630 | ||||||
|
| |||||||
14,722,630 | ||||||||
PHARMACEUTICALS — 1.69% |
| |||||||
China Medical System Holdings Ltd. | 2,761,000 | 5,546,486 | ||||||
China Resources Pharmaceutical Group Ltd.a | 4,016,000 | 5,419,468 | ||||||
CSPC Pharmaceutical Group Ltd. | 9,538,000 | 22,037,115 | ||||||
Shanghai Fosun Pharmaceutical Group Co. Ltd. Class H | 1,004,000 | 5,844,147 | ||||||
Sihuan Pharmaceutical Holdings Group Ltd. | 7,781,000 | 2,843,809 | ||||||
Sino Biopharmaceutical Ltd. | 9,287,000 | 17,588,251 | ||||||
|
| |||||||
59,279,276 | ||||||||
REAL ESTATE MANAGEMENT & DEVELOPMENT — 4.91% |
| |||||||
Agile Group Holdings Ltd. | 3,514,000 | 6,062,260 | ||||||
China Evergrande Groupc | 6,777,000 | 20,092,060 | ||||||
China Jinmao Holdings Group Ltd. | 10,542,000 | 6,452,939 | ||||||
China Overseas Land & Investment Ltd. | 8,032,000 | 28,226,394 | ||||||
China Resources Land Ltd.b | 5,522,665 | 19,725,568 | ||||||
China Vanke Co. Ltd. Class H | 2,484,931 | 11,161,914 | ||||||
CIFI Holdings Group Co. Ltd. | 7,000,000 | 5,716,075 | ||||||
Country Garden Holdings Co. Ltd. | 11,044,727 | 19,872,689 | ||||||
Fullshare Holdings Ltd.b | 14,022,500 | 7,884,554 | ||||||
Guangzhou R&F Properties Co. Ltd. Class H | 2,008,000 | 4,726,638 | ||||||
Longfor Properties Co. Ltd. | 3,137,500 | 9,061,314 |
Security | Shares | Value | ||||||
Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd. Class B | 1,931,989 | $ | 2,809,112 | |||||
Shimao Property Holdings Ltd. | 2,510,000 | 6,261,127 | ||||||
Sino-Ocean Group Holding Ltd. | 6,275,000 | 4,474,525 | ||||||
SOHO China Ltd. | 4,392,500 | 2,525,941 | ||||||
Sunac China Holdings Ltd.b | 4,769,000 | 17,490,742 | ||||||
|
| |||||||
172,543,852 | ||||||||
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 0.35% |
| |||||||
GCL-Poly Energy Holdings Ltd.c | 26,857,000 | 4,255,770 | ||||||
Semiconductor Manufacturing International Corp.b,c | 5,898,800 | 7,945,172 | ||||||
|
| |||||||
12,200,942 | ||||||||
SOFTWARE — 0.14% |
| |||||||
Kingsoft Corp. Ltd. | 1,506,000 | 4,974,902 | ||||||
|
| |||||||
4,974,902 | ||||||||
SPECIALTY RETAIL — 0.08% |
| |||||||
GOME Retail Holdings Ltd.b | 22,590,000 | 2,655,847 | ||||||
|
| |||||||
2,655,847 | ||||||||
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS — 0.32% |
| |||||||
Lenovo Group Ltd. | 15,060,000 | 7,871,315 | ||||||
Meitu Inc.a,c | 2,635,500 | 3,394,865 | ||||||
|
| |||||||
11,266,180 | ||||||||
TEXTILES, APPAREL & LUXURY GOODS — 0.74% |
| |||||||
ANTA Sports Products Ltd. | 2,259,000 | 11,200,746 | ||||||
Shenzhou International Group Holdings Ltd.b | 1,506,000 | 14,915,083 | ||||||
|
| |||||||
26,115,829 | ||||||||
TRANSPORTATION INFRASTRUCTURE — 0.57% |
| |||||||
Beijing Capital International Airport Co. Ltd. Class H | 3,012,000 | 4,449,506 | ||||||
China Merchants Port Holdings Co. Ltd. | 2,510,000 | 5,876,222 | ||||||
COSCO SHIPPING Ports Ltd. | 3,012,000 | 2,929,130 | ||||||
Jiangsu Expressway Co. Ltd. Class H | 2,510,000 | 3,906,789 | ||||||
Zhejiang Expressway Co. Ltd. Class H | 2,510,000 | 2,742,451 | ||||||
|
| |||||||
19,904,098 | ||||||||
WATER UTILITIES — 0.45% |
| |||||||
Beijing Enterprises Water Group Ltd. | 10,040,000 | 6,543,391 |
SCHEDULESOF INVESTMENTS | 25 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI CHINA ETF
February 28, 2018
Security | Shares | Value | ||||||
Guangdong Investment Ltd. | 6,024,000 | $ | 9,222,333 | |||||
|
| |||||||
15,765,724 | ||||||||
WIRELESS TELECOMMUNICATION SERVICES — 3.39% |
| |||||||
China Mobile Ltd. | 12,675,500 | 118,894,062 | ||||||
|
| |||||||
118,894,062 | ||||||||
|
| |||||||
TOTAL COMMON STOCKS |
| |||||||
(Cost: $2,615,828,745) |
| 3,508,225,524 | ||||||
SHORT-TERM INVESTMENTS — 10.36% |
| |||||||
MONEY MARKET FUNDS — 10.36% |
| |||||||
BlackRock Cash Funds: Institutional, |
| |||||||
1.58%e,f,g | 360,837,424 | 360,873,507 | ||||||
BlackRock Cash Funds: Treasury, |
| |||||||
1.32%e,f | 2,723,314 | 2,723,314 | ||||||
|
| |||||||
363,596,821 | ||||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||||
(Cost: $363,586,381) |
| 363,596,821 | ||||||
|
|
Value | ||||||
TOTAL INVESTMENTS | ||||||
(Cost: $2,979,415,126) | $ | 3,871,822,345 | ||||
Other Assets, Less Liabilities — (10.26)% | (360,195,008 | ) | ||||
|
| |||||
NET ASSETS — 100.00% | $ | 3,511,627,337 | ||||
|
|
ADR — American Depositary Receipts
a | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
b | All or a portion of this security is on loan. |
c | Non-income producing security. |
d | Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. |
e | Affiliate of the Fund. |
f | Annualized 7-day yield as of period end. |
g | All or a portion of this security was purchased with cash collateral received from loaned securities. |
Affiliates (Note 2)
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows:
Affiliated issuer | Shares held at 08/31/17 | Shares purchased | Shares sold | Shares held at 02/28/18 | Value at 02/28/18 | Income | Net realized gain (loss) a | Change in unrealized appreciation (depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, | ||||||||||||||||||||||||||||||||
SL Agency Shares | 373,781,400 | — | (12,943,976 | )b | 360,837,424 | $ | 360,873,507 | $ | 901,185 | c | $ | (30,838 | ) | $ | (46,497 | ) | ||||||||||||||||
BlackRock Cash Funds: Treasury, | ||||||||||||||||||||||||||||||||
SL Agency Shares | 527,904 | 2,195,410 | b | — | 2,723,314 | 2,723,314 | 13,313 | — | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 363,596,821 | $ | 914,498 | $ | (30,838 | ) | $ | (46,497 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
a | Includes realized capital gain distributions from an affiliated fund, if any. |
b | Net of purchases and sales. |
c | Includes the Fund’s portion of securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. |
26 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI CHINA ETF
February 28, 2018
Futures Contracts (Note 5)
Futures contracts outstanding as of February 28, 2018 were as follows:
Description | Number of contracts | Expiration date | Notional amount (000) | Value / unrealized appreciation (depreciation) | ||||||||||||
Long Contracts | ||||||||||||||||
H-Shares Index | 25 | Mar 2018 | $ | 1,972 | $ | (34,256 | ) | |||||||||
|
| |||||||||||||||
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common stocks | $ | 3,508,225,522 | $ | — | $ | 2 | $ | 3,508,225,524 | ||||||||
Money market funds | 363,596,821 | — | — | 363,596,821 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 3,871,822,343 | $ | — | $ | 2 | $ | 3,871,822,345 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative financial instrumentsa | ||||||||||||||||
Liabilities | ||||||||||||||||
Futures contracts | (34,256 | ) | — | — | (34,256 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | (34,256 | ) | $ | — | $ | — | $ | (34,256 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
a | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
SCHEDULESOF INVESTMENTS | 27 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI CHINA SMALL-CAP ETF
February 28, 2018
Security | Shares | Value | ||||||
COMMON STOCKS — 99.62% |
| |||||||
AEROSPACE & DEFENSE — 0.24% |
| |||||||
KuangChi Science Ltd.a | 216,000 | $ | 55,482 | |||||
|
| |||||||
55,482 | ||||||||
AIR FREIGHT & LOGISTICS — 0.76% |
| |||||||
Guangdong Yueyen Transportation Co. Ltd. Class H | 27,000 | 17,183 | ||||||
Sinotrans Ltd. Class H | 288,000 | 160,096 | ||||||
|
| |||||||
177,279 | ||||||||
AIRLINES — 0.17% |
| |||||||
Shandong Airlines Co. Ltd. Class B | 19,800 | 40,484 | ||||||
|
| |||||||
40,484 | ||||||||
AUTO COMPONENTS — 1.83% |
| |||||||
Chaowei Power Holdings Ltd.b | 90,000 | 55,436 | ||||||
China First Capital Group Ltd.a | 432,000 | 187,147 | ||||||
Hunan Tyen Machinery Co. Ltd. Class Ba | 29,700 | 10,959 | ||||||
Launch Tech Co. Ltd. | 22,500 | 26,481 | ||||||
Tianneng Power International Ltd. | 90,000 | 89,134 | ||||||
Xingda International Holdings Ltd. | 126,000 | 47,661 | ||||||
Zhejiang Shibao Co. Ltd. Class H | 37,000 | 11,111 | ||||||
|
| |||||||
427,929 | ||||||||
AUTOMOBILES — 0.41% |
| |||||||
Jiangling Motors Corp. Ltd. Class B | 9,900 | 18,964 | ||||||
Qingling Motors Co. Ltd. Class H | 108,000 | 34,780 | ||||||
Yadea Group Holdings Ltd.b,c | 126,000 | 43,313 | ||||||
|
| |||||||
97,057 | ||||||||
BANKS — 0.24% |
| |||||||
Bank of Chongqing Co. Ltd. Class H | 67,500 | 56,844 | ||||||
|
| |||||||
56,844 | ||||||||
BEVERAGES — 0.94% |
| |||||||
Anhui Gujing Distillery Co. Ltd. Class B | 17,100 | 92,260 | ||||||
Dynasty Fine Wines Group Ltd.a,b,d | 128,000 | — | ||||||
Tibet Water Resources Ltd.a | 306,000 | 128,261 | ||||||
|
| |||||||
220,521 | ||||||||
BIOTECHNOLOGY — 0.30% |
| |||||||
China Regenerative Medicine International Ltd.a | 1,890,000 | 41,784 | ||||||
Shanghai Haohai Biological Technology Co. Ltd.c | 5,400 | 28,327 | ||||||
|
| |||||||
70,111 |
Security | Shares | Value | ||||||
BUILDING PRODUCTS — 0.68% |
| |||||||
China Fangda Group Co. Ltd. Class B | 59,400 | $ | 39,700 | |||||
China Lesso Group Holdings Ltd. | 153,000 | 100,692 | ||||||
Luoyang Glass Co. Ltd. Class Ha,b | 36,000 | 18,218 | ||||||
|
| |||||||
158,610 | ||||||||
CAPITAL MARKETS — 1.93% |
| |||||||
China Internet Nationwide Financial Services Inc.a,b | 864 | 32,469 | ||||||
China Investment Fund International Holdings Co. Ltd.a | 144,000 | 160,096 | ||||||
China Minsheng Financial Holding Corp. Ltd.a,b | 1,440,000 | 44,717 | ||||||
Guolian Securities Co. Ltd. | 54,000 | 24,704 | ||||||
Noah Holdings Ltd. ADRa,b | 3,555 | 165,094 | ||||||
Shanghai Greencourt Investment Group Co. Ltd. Class Ba | 48,700 | 25,957 | ||||||
|
| |||||||
453,037 | ||||||||
CHEMICALS — 2.15% |
| |||||||
China BlueChemical Ltd. Class H | 252,000 | 76,322 | ||||||
China Lumena New Materials Corp.a,b,d | 868,000 | 1 | ||||||
China Sanjiang Fine Chemicals Co. Ltd. | 99,000 | 40,484 | ||||||
China XLX Fertiliser Ltd. | 54,000 | 24,566 | ||||||
Fufeng Group Ltd. | 216,600 | 148,915 | ||||||
Huabao International Holdings Ltd. | 135,000 | 101,613 | ||||||
Hubei Sanonda Co. Ltd. Class Ba | 24,300 | 24,470 | ||||||
Shanghai Chlor-Alkali Chemical Co. Ltd. Class Ba | 58,500 | 46,449 | ||||||
Sinofert Holdings Ltd.a,b | 288,000 | 40,852 | ||||||
|
| |||||||
503,672 | ||||||||
COMMERCIAL SERVICES & SUPPLIES — 1.20% |
| |||||||
Capital Environment Holdings Ltd.a,b | 720,000 | 28,983 | ||||||
China Greenland Broad Greenstate Group Co Ltd.b | 108,000 | 15,181 | ||||||
Dongjiang Environmental Co. Ltd. Class H | 27,100 | 37,679 | ||||||
Dynagreen Environmental Protection Group Co. Ltd. Class H | 54,000 | 28,017 | ||||||
Greentown Service Group Co. Ltd.b | 108,000 | 78,668 | ||||||
Realord Group Holdings Ltd.a,b | 54,000 | 34,848 | ||||||
Shanghai Zhongyida Co. Ltd.a | 54,900 | 14,988 | ||||||
Tianjin Capital Environmental Protection Group Co. Ltd. Class H | 54,000 | 31,467 |
28 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI CHINA SMALL-CAP ETF
February 28, 2018
Security | Shares | Value | ||||||
Zhi Sheng Group Holdings Ltd.a | 72,000 | $ | 11,225 | |||||
|
| |||||||
281,056 | ||||||||
COMMUNICATIONS EQUIPMENT — 1.25% |
| |||||||
China All Access Holdings Ltd. | 180,000 | 52,215 | ||||||
China Fiber Optic Network System Group Ltd.a,d | 181,600 | 11,371 | ||||||
Comba Telecom Systems Holdings Ltd. | 192,060 | 30,925 | ||||||
Eastern Communications Co. Ltd. Class B | 41,400 | 25,130 | ||||||
Nanjing Panda Electronics Co. Ltd. Class H | 18,000 | 9,339 | ||||||
O-Net Technologies Group Ltd.a,b | 54,000 | 38,644 | ||||||
Xi’an Haitiantian Holdings Co. Ltd. Class Ca | 36,000 | 28,155 | ||||||
Yangtze Optical Fibre and Cable Joint Stock Ltd. Co. Class Hc | 22,500 | 98,047 | ||||||
|
| |||||||
293,826 | ||||||||
CONSTRUCTION & ENGINEERING — 0.50% |
| |||||||
Baoye Group Co. Ltd. Class Ha | 36,000 | 23,324 | ||||||
Beijing Urban Construction Design & Development Group Co. Ltd.c | 45,000 | 25,130 | ||||||
China Singyes Solar Technologies Holdings Ltd.b | 81,400 | 32,559 | ||||||
Concord New Energy Group Ltd. | 810,000 | 36,229 | ||||||
|
| |||||||
117,242 | ||||||||
CONSTRUCTION MATERIALS — 1.33% |
| |||||||
Asia Cement China Holdings Corp. | 67,500 | 25,791 | ||||||
China National Materials Co. Ltd. Class H | 153,000 | 127,870 | ||||||
China Shanshui Cement Group Ltd.a,d | 44,000 | 24,740 | ||||||
Huaxin Cement Co. Ltd. Class B | 34,200 | 46,136 | ||||||
Shanghai Yaohua Pilkington Glass Group Co. Ltd. Class B | 21,600 | 12,528 | ||||||
Tongfang Kontafarma Holdings Ltd.a,b | 270,000 | 15,872 | ||||||
West China Cement Ltd.a | 342,000 | 58,127 | ||||||
|
| |||||||
311,064 | ||||||||
CONSUMER FINANCE — 1.67% |
| |||||||
China Rapid Finance Ltd. ADRa | 8,649 | 40,391 | ||||||
Chong Sing Holdings FinTech Group Ltd.a,b | 2,196,000 | 272,210 | ||||||
Differ Group Holding Co.Ltd.a | 180,000 | 13,111 | ||||||
Yirendai Ltd. ADRb | 1,728 | 65,439 | ||||||
|
| |||||||
391,151 |
Security | Shares | Value | ||||||
CONTAINERS & PACKAGING — 0.67% |
| |||||||
CPMC Holdings Ltd. | 36,000 | $ | 24,797 | |||||
Greatview Aseptic Packaging Co. Ltd. | 153,000 | 108,904 | ||||||
Youyuan International Holdings Ltd.a,b | 54,000 | 23,462 | ||||||
|
| |||||||
157,163 | ||||||||
DISTRIBUTORS — 0.64% |
| |||||||
China Animation Characters Co. Ltd.b | 63,000 | 24,636 | ||||||
China Beidahuang Industry Group Holdings Ltd.a,b | 432,000 | 19,598 | ||||||
Dah Chong Hong Holdings Ltd. | 117,000 | 58,012 | ||||||
Xinhua Winshare Publishing and Media Co. Ltd. Class H | 63,000 | 48,546 | ||||||
|
| |||||||
150,792 | ||||||||
DIVERSIFIED CONSUMER SERVICES — 2.03% |
| |||||||
China Maple Leaf Educational Systems Ltd.b | 90,000 | 114,782 | ||||||
China New Higher Education Group Ltd.c | 45,000 | 29,960 | ||||||
China Yuhua Education Corp Ltd. Class Lb,c | 162,000 | 91,503 | ||||||
Fu Shou Yuan International Group Ltd.b | 126,000 | 111,101 | ||||||
Tarena International Inc. ADR | 5,085 | 62,393 | ||||||
Wisdom Education International Holdings Co. Ltd. | 90,000 | 65,902 | ||||||
|
| |||||||
475,641 | ||||||||
DIVERSIFIED TELECOMMUNICATION SERVICES — 0.09% |
| |||||||
APT Satellite Holdings Ltd. | 49,500 | 21,887 | ||||||
|
| |||||||
21,887 | ||||||||
ELECTRICAL EQUIPMENT — 1.20% |
| |||||||
China Energine International Holdings Ltd.a,b | 252,000 | 12,237 | ||||||
China High Speed Transmission Equipment Group Co. Ltd.b | 45,000 | 77,633 | ||||||
FDG Electric Vehicles Ltd.a,b | 2,115,000 | 86,489 | ||||||
Foshan Electrical and Lighting Co. Ltd. Class B | 39,640 | 30,647 | ||||||
Hangzhou Steam Turbine Co. Ltd. Class Ba | 39,524 | 38,184 | ||||||
Harbin Electric Co. Ltd. Class H | 90,000 | 36,459 | ||||||
Trony Solar Holdings Co. Ltd.a,b,d | 216,000 | — | ||||||
|
| |||||||
281,649 |
SCHEDULESOF INVESTMENTS | 29 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI CHINA SMALL-CAP ETF
February 28, 2018
Security | Shares | Value | ||||||
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 2.99% |
| |||||||
Anxin-China Holdings Ltd.a,d | 672,000 | $ | 12,881 | |||||
AVIC International Holdings Ltd. Class H | 37,184 | 29,556 | ||||||
China Aerospace International Holdings Ltd. | 306,000 | 34,411 | ||||||
China Innovationpay Group Ltd.a,b | 792,000 | 44,533 | ||||||
Ju Teng International Holdings Ltd. | 108,000 | 30,639 | ||||||
Kingboard Laminates Holdings Ltd. | 153,000 | 269,426 | ||||||
PAX Global Technology Ltd.b | 108,000 | 53,687 | ||||||
Tongda Group Holdings Ltd. | 450,000 | 108,111 | ||||||
Tongda Hong Tai Holdings Ltd.a | 11,250 | — | ||||||
Truly International Holdings Ltd. | 234,000 | 78,047 | ||||||
Wasion Group Holdings Ltd.b | 72,000 | 38,000 | ||||||
|
| |||||||
699,291 | ||||||||
ENERGY EQUIPMENT & SERVICES — 0.51% |
| |||||||
Anton Oilfield Services Group/Hong Konga,b | 198,000 | 25,555 | ||||||
Hilong Holding Ltd.b | 108,000 | 18,218 | ||||||
Honghua Group Ltd.a,b | 270,000 | 28,293 | ||||||
Jutal Offshore Oil Services Ltd.a | 72,000 | 18,862 | ||||||
Wison Engineering Services Co. Ltd.a | 135,000 | 27,603 | ||||||
|
| |||||||
118,531 | ||||||||
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) — 0.70% |
| |||||||
Spring REITb | 117,000 | 49,788 | ||||||
Yuexiu REIT | 171,000 | 113,850 | ||||||
|
| |||||||
163,638 | ||||||||
FOOD & STAPLES RETAILING — 0.19% |
| |||||||
Lianhua Supermarket Holdings Co. Ltd. Class Ha | 54,000 | 17,666 | ||||||
Springland International Holdings Ltd. | 126,000 | 27,373 | ||||||
|
| |||||||
45,039 | ||||||||
FOOD PRODUCTS — 2.56% |
| |||||||
China Agri-Industries Holdings Ltd. | 297,000 | 127,904 | ||||||
China Foods Ltd.b | 126,000 | 66,661 | ||||||
China Huiyuan Juice Group Ltd.a | 81,000 | 21,737 | ||||||
China Modern Dairy Holdings Ltd.a | 225,000 | 40,254 | ||||||
China Shengmu Organic Milk Ltd.a,b,c | 486,000 | 73,285 | ||||||
COFCO Meat Holdings Ltd.a,b | 279,000 | 49,559 | ||||||
Honworld Group Ltd.c | 27,000 | 12,456 | ||||||
Tenwow International Holdings Ltd. | 72,000 | 12,145 | ||||||
Yashili International Holdings Ltd.a,b | 126,000 | 22,381 |
Security | Shares | Value | ||||||
Yihai International Holding Ltd. | 63,000 | $ | 84,695 | |||||
Zhou Hei Ya International Holdings Co. Ltd.b,c | 85,500 | 88,829 | ||||||
|
| |||||||
599,906 | ||||||||
GAS UTILITIES — 1.03% |
| |||||||
Beijing Gas Blue Sky Holdings Ltd.a | 720,000 | 54,285 | ||||||
China Oil and Gas Group Ltd. | 736,000 | 63,016 | ||||||
Towngas China Co. Ltd. | 153,000 | 123,764 | ||||||
|
| |||||||
241,065 | ||||||||
HEALTH CARE EQUIPMENT & SUPPLIES — 0.53% |
| |||||||
Beijing Enterprises Medical & Health Group Ltd.a,b | 648,000 | 32,295 | ||||||
Lifetech Scientific Corp.a,b | 306,000 | 73,124 | ||||||
PW Medtech Group Ltd.a | 99,000 | 17,965 | ||||||
|
| |||||||
123,384 | ||||||||
HEALTH CARE PROVIDERS & SERVICES — 1.91% |
| |||||||
China NT Pharma Group Co.Ltd. | 90,000 | 20,127 | ||||||
China Pioneer Pharma Holdings Ltd. | 54,000 | 16,631 | ||||||
China Resources Phoenix Healthcare Holdings Co. Ltd. | 85,500 | 109,479 | ||||||
Golden Meditech Holdings Ltd.a | 144,000 | 24,290 | ||||||
Harmonicare Medical Holdings Ltd.c | 63,017 | 20,374 | ||||||
iKang Healthcare Group Inc. ADRa,b | 7,101 | 116,882 | ||||||
Rici Healthcare Holdings Ltd.a,c | 63,000 | 15,941 | ||||||
Universal Medical Financial & Technical Advisory Services Co. Ltd.c | 135,000 | 111,274 | ||||||
Wenzhou Kangning Hospital Co. Ltd.c | 2,700 | 12,594 | ||||||
|
| |||||||
447,592 | ||||||||
HOTELS, RESTAURANTS & LEISURE — 1.79% |
| |||||||
500.com Ltd. ADRa,b | 2,916 | 52,284 | ||||||
Ajisen (China) Holdings Ltd. | 72,000 | 33,675 | ||||||
China Travel International Investment Hong Kong Ltd. | 306,000 | 114,965 | ||||||
Haichang Ocean Park Holdings Ltd.a,c | 171,000 | 43,267 | ||||||
Huangshan Tourism Development Co. Ltd. Class B | 33,300 | 41,492 | ||||||
Shanghai Jin Jiang International Hotels Group Co. Ltd. Class H | 180,000 | 78,438 | ||||||
Shanghai Jinjiang International Travel Co. Ltd. Class B | 9,000 | 23,193 | ||||||
Tuniu Corp. ADRa | 4,122 | 31,781 | ||||||
|
| |||||||
419,095 |
30 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI CHINA SMALL-CAP ETF
February 28, 2018
Security | Shares | Value | ||||||
HOUSEHOLD DURABLES — 1.78% |
| |||||||
Hisense Kelon Electrical Holdings Co. Ltd. Class H | 54,000 | $ | 66,592 | |||||
Konka Group Co. Ltd. Class Ba | 94,500 | 39,248 | ||||||
Ozner Water International Holding Ltd.a,b,c | 54,000 | 13,249 | ||||||
Q Technology Group Co. Ltd.b | 45,000 | 64,406 | ||||||
Skyworth Digital Holdings Ltd. | 288,000 | 126,973 | ||||||
TCL Multimedia Technology Holdings Ltd.b | 81,000 | 37,471 | ||||||
Wuxi Little Swan Co. Ltd. Class B | 10,800 | 68,772 | ||||||
|
| |||||||
416,711 | ||||||||
HOUSEHOLD PRODUCTS — 0.37% |
| |||||||
NVC Lighting Holdings Ltd. | 162,000 | 15,113 | ||||||
Vinda International Holdings Ltd.b | 36,000 | 71,399 | ||||||
|
| |||||||
86,512 | ||||||||
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS — 2.84% |
| |||||||
Beijing Jingneng Clean Energy Co. Ltd. Class H | 144,000 | 36,988 | ||||||
Canvest Environment Protection Group Co. Ltd.b | 90,000 | 51,870 | ||||||
CGN Meiya Power Holdings Co. Ltd.a,c | 180,000 | 24,382 | ||||||
China Datang Corp. Renewable Power Co. Ltd. Class H | 324,000 | 40,162 | ||||||
China Everbright Greentech Ltd. Class La,b,c | 54,000 | 47,891 | ||||||
China Power Clean Energy Development Co. Ltd. | 61,500 | 34,423 | ||||||
China Power International Development Ltd. | 603,000 | 151,804 | ||||||
GCL New Energy Holdings Ltd.a | 1,098,000 | 68,754 | ||||||
Huadian Energy Co. Ltd. Class Ba | 50,400 | 16,934 | ||||||
Huadian Fuxin Energy Corp. Ltd. Class H | 360,000 | 87,409 | ||||||
Kong Sun Holdings Ltd.a | 675,000 | 23,290 | ||||||
Panda Green Energy Group Ltd.a,b | 522,000 | 59,369 | ||||||
Shanghai Lingyun Industries Development Co. Ltd. Class Ba | 26,100 | 21,193 | ||||||
|
| |||||||
664,469 | ||||||||
INDUSTRIAL CONGLOMERATES — 0.06% |
| |||||||
Chongqing Machinery & Electric Co. Ltd. Class H | 144,000 | 14,169 | ||||||
|
| |||||||
14,169 |
Security | Shares | Value | ||||||
INTERNET & DIRECT MARKETING RETAIL — 0.31% |
| |||||||
Cogobuy Groupc | 81,000 | $ | 44,924 | |||||
Jumei International Holding Ltd. ADRa | 9,873 | 28,138 | ||||||
|
| |||||||
73,062 | ||||||||
INTERNET SOFTWARE & SERVICES — 3.62% |
| |||||||
21Vianet Group Inc. ADRa | 10,503 | 80,138 | ||||||
Baozun Inc. ADRa,b | 3,879 | 136,386 | ||||||
Bitauto Holdings Ltd. ADRa,b | 3,573 | 101,437 | ||||||
Fang Holdings Ltd. ADRa,b | 33,957 | 171,822 | ||||||
HC International Inc.b | 67,500 | 42,008 | ||||||
INESA Intelligent Tech Inc. Class B | 32,400 | 19,764 | ||||||
Phoenix New Media Ltd. ADRa | 4,059 | 21,026 | ||||||
Renren Inc. ADRa,b | 2,304 | 21,082 | ||||||
Sino-I Technology Ltd.a | 1,080,000 | 11,179 | ||||||
Sohu.com Inc.a | 4,077 | 137,191 | ||||||
Tian Ge Interactive Holdings Ltd.c | 63,000 | 56,678 | ||||||
Xunlei Ltd. ADRa,b | 3,834 | 48,960 | ||||||
|
| |||||||
847,671 | ||||||||
IT SERVICES — 2.68% |
| |||||||
AGTech Holdings Ltd.a | 396,000 | 46,557 | ||||||
Chinasoft International Ltd.b | 288,000 | 211,253 | ||||||
Digital China Holdings Ltd.a,b | 108,000 | 61,140 | ||||||
GDS Holdings Ltd. ADRa | 9,855 | 258,201 | ||||||
Hi Sun Technology (China) Ltd.a | 243,000 | 50,617 | ||||||
|
| |||||||
627,768 | ||||||||
LEISURE PRODUCTS — 0.12% |
| |||||||
Shanghai Phoenix Enterprise Group Co. Ltd. Class Ba | 26,100 | 19,314 | ||||||
Shenzhen China Bicycle Co. Holdings Ltd.a | 36,000 | 9,431 | ||||||
|
| |||||||
28,745 | ||||||||
LIFE SCIENCES TOOLS & SERVICES — 1.38% |
| |||||||
Genscript Biotech Corp.b | 108,000 | 324,333 | ||||||
|
| |||||||
324,333 | ||||||||
MACHINERY — 2.72% |
| |||||||
China Yuchai International Ltd. | 2,358 | 52,843 | ||||||
CIMC Enric Holdings Ltd.a | 90,000 | 82,463 | ||||||
CRCC High-Tech Equipment Corp. Ltd. | 67,500 | 17,252 | ||||||
Dalian Refrigeration Co. Ltd. Class B | 18,900 | 8,791 | ||||||
First Tractor Co. Ltd. Class H | 54,000 | 21,392 | ||||||
Huangshi Dongbei Electrical Appliance Co. Ltd. Class B | 15,300 | 20,426 | ||||||
Kama Co. Ltd. Class Ba | 31,515 | 24,014 |
SCHEDULESOF INVESTMENTS | 31 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI CHINA SMALL-CAP ETF
February 28, 2018
Security | Shares | Value | ||||||
Lonking Holdings Ltd. | 270,000 | $ | 112,826 | |||||
Sany Heavy Equipment International Holdings Co. Ltd.b | 135,000 | 37,954 | ||||||
Shang Gong Group Co. Ltd. Class Ba | 33,300 | 28,405 | ||||||
Shanghai Diesel Engine Co. Ltd. Class B | 46,845 | 31,855 | ||||||
Shanghai Highly Group Co. Ltd. Class B | 39,600 | 31,561 | ||||||
Shanghai Prime Machinery Co. Ltd. Class H | 108,000 | 21,530 | ||||||
Sinotruk Hong Kong Ltd. | 99,000 | 126,007 | ||||||
Zhengzhou Coal Mining Machinery Group Co. Ltd. Class H | 34,200 | 19,973 | ||||||
|
| |||||||
637,292 | ||||||||
MARINE — 0.51% |
| |||||||
Chu Kong Shipping Enterprises Group Co. Ltd. | 54,000 | 13,802 | ||||||
Seaspan Corp. | 7,659 | 47,103 | ||||||
Sinotrans Shipping Ltd. | 202,500 | 58,483 | ||||||
|
| |||||||
119,388 | ||||||||
MEDIA — 1.46% |
| |||||||
Huanxi Media Group Ltd.a,b | 90,000 | 17,252 | ||||||
Huayi Tencent Entertainment Co. Ltd.a,b | 990,000 | 51,238 | ||||||
IMAX China Holding Inc.a,b,c | 18,000 | 51,065 | ||||||
Nan Hai Corp. Ltd.b | 1,800,000 | 57,506 | ||||||
Phoenix Satellite Television Holdings Ltd. | 180,000 | 22,312 | ||||||
Poly Culture Group Corp. Ltd. Class H | 11,700 | 21,620 | ||||||
SMI Holdings Group Ltd. | 151,200 | 72,264 | ||||||
Viva China Holdings Ltd.a,b | 437,600 | 48,092 | ||||||
|
| |||||||
341,349 | ||||||||
METALS & MINING — 3.26% |
| |||||||
Bengang Steel Plates Co. Ltd. Class Ba | 57,600 | 25,395 | ||||||
Chiho Environmental Group Ltd.a,b | 54,000 | 28,293 | ||||||
China Metal Recycling Holdings Ltd.a,d | 184,800 | — | ||||||
China Metal Resources Utilization Ltd.a,b,c | 72,000 | 46,465 | ||||||
China Silver Group Ltd.b | 144,000 | 33,307 | ||||||
Da Ming International Holdings Ltd. | 36,000 | 13,663 | ||||||
Inner Mongolia Eerduosi Resourses Co. Ltd. Class B | 43,200 | 49,119 |
Security | Shares | Value | ||||||
Jinchuan Group International Resources Co. Ltd.a,b | 207,000 | $ | 52,641 | |||||
MMG Ltd.a | 288,000 | 202,052 | ||||||
North Mining Shares Co. Ltd.a | 1,710,000 | 33,652 | ||||||
Real Gold Mining Ltd.a,d | 126,000 | 48 | ||||||
Shougang Concord International Enterprises Co. Ltd.a,b | 1,260,000 | 38,805 | ||||||
Shougang Fushan Resources Group Ltd. | 342,000 | 107,950 | ||||||
Xinjiang Xinxin Mining Industry Co. Ltd. Class Ha | 108,000 | 17,804 | ||||||
Zhaojin Mining Industry Co. Ltd. Class Hb | 148,500 | 114,810 | ||||||
|
| |||||||
764,004 | ||||||||
MULTI-UTILITIES — 0.11% |
| |||||||
Tianjin Development Holdings Ltd. | 54,000 | 24,635 | ||||||
|
| |||||||
24,635 | ||||||||
MULTILINE RETAIL — 0.54% |
| |||||||
Golden Eagle Retail Group Ltd.b | 45,000 | 59,921 | ||||||
Lifestyle China Group Ltd.a | 112,500 | 31,772 | ||||||
Maoye International Holdings Ltd.b | 135,000 | 15,699 | ||||||
Parkson Retail Group Ltd.b | 157,500 | 18,316 | ||||||
|
| |||||||
125,708 | ||||||||
OIL, GAS & CONSUMABLE FUELS — 1.95% |
| |||||||
China Suntien Green Energy Corp. Ltd. Class H | 234,000 | 55,918 | ||||||
Inner Mongolia Yitai Coal Co. Ltd. Class B | 151,200 | 217,123 | ||||||
MIE Holdings Corp.a | 198,000 | 12,904 | ||||||
Shanxi Guoxin Energy Corp. Ltd.a | 20,720 | 15,561 | ||||||
Sino Oil And Gas Holdings Ltd.a,b | 1,665,000 | 13,192 | ||||||
Sinopec Kantons Holdings Ltd. | 144,000 | 87,225 | ||||||
Strong Petrochemical Holdings Ltd. | 108,000 | 16,562 | ||||||
Yuan Heng Gas Holdings Ltd.a | 324,000 | 37,264 | ||||||
|
| |||||||
455,749 | ||||||||
PAPER & FOREST PRODUCTS — 0.72% |
| |||||||
China Forestry Holdings Co. Ltd.a,d | 306,000 | 1 | ||||||
Foshan Huaxin Packaging Co. Ltd. | 25,200 | 11,303 | ||||||
Qunxing Paper Holdings Co. Ltd.a,d | 148,000 | 1,702 | ||||||
Shandong Chenming Paper Holdings Ltd. Class B | 55,823 | 94,307 | ||||||
Shandong Chenming Paper Holdings Ltd. Class H | 36,000 | 61,554 | ||||||
Superb Summit International Group Ltd.a,d | 59,500 | 380 | ||||||
|
| |||||||
169,247 |
32 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI CHINA SMALL-CAP ETF
February 28, 2018
Security | Shares | Value | ||||||
PHARMACEUTICALS — 5.88% |
| |||||||
Beijing Tong Ren Tang Chinese Medicine Co. Ltd. | 36,000 | $ | 61,186 | |||||
China Animal Healthcare Ltd.a,b,d | 140,000 | 1,431 | ||||||
China Shineway Pharmaceutical Group Ltd. | 36,000 | 50,605 | ||||||
China Traditional Chinese Medicine Holdings Co. Ltd. | 288,000 | 174,082 | ||||||
Consun Pharmaceutical Group Ltd.b | 45,000 | 47,097 | ||||||
Dawnrays Pharmaceutical Holdings Ltd. | 54,000 | 29,466 | ||||||
Hua Han Health Industry Holdings Ltd. Class Ha,b,d | 651,960 | 4,166 | ||||||
Hutchison China MediTech Ltd.a | 3,267 | 213,818 | ||||||
Lee’s Pharmaceutical Holdings Ltd. | 36,000 | 54,561 | ||||||
Livzon Pharmaceutical Group Inc. Class H | 13,566 | 101,503 | ||||||
Luye Pharma Group Ltd.b | 166,500 | 144,259 | ||||||
Pengqi Technology Development Co. Ltd. Class Bd | 36,000 | 26,640 | ||||||
Shandong Xinhua Pharmaceutical Co. Ltd. Class H | 22,000 | 22,154 | ||||||
Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co. Ltd. Class H | 36,000 | 15,734 | ||||||
SSY Group Ltd. | 216,255 | 164,154 | ||||||
Tianjin ZhongXin Pharmaceutical Group Corp. Ltd. | 27,000 | 25,110 | ||||||
Tong Ren Tang Technologies Co. Ltd. Class H | 81,000 | 137,048 | ||||||
YiChang HEC ChangJiang Pharmaceutical Co. Ltd. Class Hc | 17,400 | 105,285 | ||||||
|
| |||||||
1,378,299 | ||||||||
PROFESSIONAL SERVICES — 0.97% |
| |||||||
51job Inc. ADRa | 3,483 | 228,032 | ||||||
|
| |||||||
228,032 | ||||||||
REAL ESTATE MANAGEMENT & DEVELOPMENT — 16.75% |
| |||||||
AVIC International Holding HK Ltd.a | 648,000 | 33,123 | ||||||
Beijing Capital Land Ltd. Class H | 144,000 | 86,305 | ||||||
Beijing North Star Co. Ltd. Class H | 108,000 | 37,264 | ||||||
Beijing Properties Holdings Ltd.a | 288,000 | 10,857 | ||||||
C C Land Holdings Ltd.a | 216,500 | 50,077 | ||||||
Carnival Group International Holdings Ltd.a,b | 1,172,596 | 59,939 |
Security | Shares | Value | ||||||
Central China Real Estate Ltd.a | 99,038 | $ | 42,398 | |||||
China Aoyuan Property Group Ltd.b | 153,000 | 123,764 | ||||||
China Electronics Optics Valley Union Holding Co Ltd. | 468,000 | 40,070 | ||||||
China Logistics Property Holdings Co. Ltd.a,b | 180,000 | 54,055 | ||||||
China Merchants Land Ltd.b | 180,000 | 32,663 | ||||||
China Overseas Grand Oceans Group Ltd. | 198,000 | 99,186 | ||||||
China Overseas Property Holdings Ltd.b | 180,000 | 60,956 | ||||||
China SCE Property Holdings Ltd. | 243,800 | 119,948 | ||||||
China South City Holdings Ltd. | 396,000 | 93,619 | ||||||
Colour Life Services Group Co. Ltd.b | 45,000 | 29,155 | ||||||
Crown International Corp Ltd.a,b | 126,000 | 21,254 | ||||||
Fantasia Holdings Group Co. Ltd.b | 243,000 | 40,059 | ||||||
Future Land Development Holdings Ltd. | 234,000 | 183,305 | ||||||
Gemdale Properties & Investment Corp. Ltd.b | 576,000 | 75,080 | ||||||
Glorious Property Holdings Ltd.a | 387,000 | 38,575 | ||||||
Greenland Hong Kong Holdings Ltd. | 117,000 | 57,264 | ||||||
Greentown China Holdings Ltd. | 90,000 | 135,254 | ||||||
Ground International Development Ltd.a,b | 180,000 | 37,264 | ||||||
Guangdong Land Holdings Ltd.a | 72,000 | 16,010 | ||||||
Guorui Properties Ltd.b | 126,000 | 35,263 | ||||||
HKC Holdings Ltd. | 27,920 | 19,909 | ||||||
Hopson Development Holdings Ltd. | 90,000 | 85,684 | ||||||
Hydoo International Holding Ltd.a | 180,000 | 15,872 | ||||||
Jiayuan International Group Ltd.a | 126,000 | 132,033 | ||||||
Kaisa Group Holdings Ltd.a | 297,000 | 158,267 | ||||||
KWG Property Holding Ltd. | 180,000 | 252,565 | ||||||
Minmetals Land Ltd.b | 162,000 | 30,018 | ||||||
Modern Land China Co. Ltd.b | 144,000 | 33,859 | ||||||
Nam Tai Property Inc. | 3,438 | 47,101 | ||||||
Poly Property Group Co. Ltd.a | 288,000 | 147,215 | ||||||
Powerlong Real Estate Holdings Ltd. | 171,000 | 85,661 | ||||||
Redco Groupb,c | 126,000 | 47,661 | ||||||
Renhe Commercial Holdings Co. Ltd.a | 2,232,000 | 56,760 | ||||||
Road King Infrastructure Ltd. | 36,000 | 65,603 | ||||||
Ronshine China Holdings Ltd.a | 72,000 | 103,234 | ||||||
Shanghai Industrial Urban Development Group Ltd. | 198,000 | 49,087 |
SCHEDULESOF INVESTMENTS | 33 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI CHINA SMALL-CAP ETF
February 28, 2018
Security | Shares | Value | ||||||
Shanghai Lingang Holdings Corp. Ltd. Class Ba | 14,400 | $ | 24,178 | |||||
Shanghai Shibei Hi-Tech Co. Ltd. Class B | 66,600 | 34,299 | ||||||
Shenzhen Investment Ltd. | 450,000 | 188,044 | ||||||
Shenzhen SEG Co. Ltd. Class B | 32,400 | 14,698 | ||||||
Shenzhen Wongtee International Enterprise Co. Ltd. Class Ba,d | 19,800 | 12,373 | ||||||
Shui On Land Ltd. | 513,000 | 144,224 | ||||||
Sinolink Worldwide Holdings Ltd.a | 270,000 | 33,468 | ||||||
Skyfame Realty Holdings Ltd.a | 108,000 | 63,210 | ||||||
SRE Group Ltd.a | 810,000 | 21,013 | ||||||
Suncity Group Holdings Ltd.a,b | 270,000 | 28,638 | ||||||
Xinyuan Real Estate Co. Ltd. ADR | 5,247 | 31,482 | ||||||
Yuexiu Property Co. Ltd. | 918,000 | 181,833 | ||||||
Yuzhou Properties Co. Ltd. | 234,440 | 144,703 | ||||||
Zhuguang Holdings Group Co. Ltd.a | 324,000 | 57,552 | ||||||
|
| |||||||
3,922,951 | ||||||||
ROAD & RAIL — 0.98% |
| |||||||
CAR Inc.a | 108,000 | 96,610 | ||||||
Dazhong Transportation Group Co. Ltd. Class B | 102,600 | 63,612 | ||||||
eHi Car Services Ltd. ADRa | 3,690 | 41,808 | ||||||
Shanghai Jinjiang International Industrial Investment Co. Ltd. Class B | 23,400 | 28,454 | ||||||
|
| |||||||
230,484 | ||||||||
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 1.98% |
| |||||||
BOE Varitronix Ltd.b | 45,000 | 23,750 | ||||||
China Electronics Huada Technology Co. Ltd. | 126,000 | 18,678 | ||||||
Hua Hong Semiconductor Ltd.c | 54,000 | 104,477 | ||||||
JA Solar Holdings Co. Ltd. ADRa,b | 5,805 | 43,015 | ||||||
JinkoSolar Holding Co. Ltd. ADRa | 4,068 | 72,695 | ||||||
Shanghai Fudan Microelectronics Group Co. Ltd. Class Ha | 36,000 | 28,523 | ||||||
Xinyi Solar Holdings Ltd. | 414,000 | 171,413 | ||||||
|
| |||||||
462,551 | ||||||||
SOFTWARE — 3.31% |
| |||||||
Beijing Beida Jade Bird Universal Sci-Tech Co. Ltd. Class Ha | 90,000 | 16,792 | ||||||
Boyaa Interactive International Ltd.a,b | 63,000 | 24,958 | ||||||
Changyou.com Ltd. ADRa | 2,484 | 70,297 |
Security | Shares | Value | ||||||
Chanjet Information Technology Co. Ltd. Class Ha | 7,200 | $ | 9,440 | |||||
Cheetah Mobile Inc. ADRa,b | 4,437 | 63,094 | ||||||
Gridsum Holding Inc. ADRa | 2,187 | 23,816 | ||||||
IGG Inc.b | 117,000 | 149,515 | ||||||
Kingdee International Software Group Co. Ltd.a,b | 270,022 | 194,615 | ||||||
National Agricultural Holdings Ltd.a,b,d | 126,000 | 15,297 | ||||||
NetDragon Websoft Holdings Ltd. | 31,500 | 82,118 | ||||||
NQ Mobile Inc. ADRa | 12,168 | 26,891 | ||||||
Rentian Technology Holdings Ltd.a,b | 360,000 | 17,712 | ||||||
Shanghai Baosight Software Co. Ltd. Class B | 31,580 | 54,855 | ||||||
Sinosoft Technology Group Ltd.b | 99,012 | 26,824 | ||||||
|
| |||||||
776,224 | ||||||||
SPECIALTY RETAIL — 2.15% |
| |||||||
Boshiwa International Holding Ltd.a,b,d | 153,000 | 1,173 | ||||||
China Harmony New Energy Auto Holding Ltd.a,b | 108,000 | 77,840 | ||||||
China ZhengTong Auto Services Holdings Ltd. | 157,500 | 142,499 | ||||||
Pou Sheng International Holdings Ltd.b | 306,000 | 77,035 | ||||||
Zhongsheng Group Holdings Ltd. | 81,000 | 205,986 | ||||||
|
| |||||||
504,533 | ||||||||
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS — 0.46% |
| |||||||
China Goldjoy Group Ltd. | 1,080,000 | 86,949 | ||||||
Coolpad Group Ltd.a,d | 384,000 | 2,944 | ||||||
TPV Technology Ltd. | 126,000 | 17,712 | ||||||
|
| |||||||
107,605 | ||||||||
TEXTILES, APPAREL & LUXURY GOODS — 4.46% |
| |||||||
361 Degrees International Ltd. | 90,000 | 33,008 | ||||||
Best Pacific International Holdings Ltd.b | 36,000 | 19,322 | ||||||
Bosideng International Holdings Ltd. | 378,000 | 32,364 | ||||||
C.banner International Holdings Ltd.a,b | 144,000 | 45,085 | ||||||
China Dongxiang Group Co. Ltd. | 477,000 | 92,653 | ||||||
China Lilang Ltd. | 63,000 | 58,771 | ||||||
China Longevity Group Co. Ltd.a,d | 96,000 | — | ||||||
Citychamp Watch & Jewellery Group Ltd.b | 180,000 | 39,564 | ||||||
Cosmo Lady China Holdings Co. Ltd.b,c | 90,000 | 37,839 |
34 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI CHINA SMALL-CAP ETF
February 28, 2018
Security | Shares | Value | ||||||
CSMall Group Ltd.a | 2,400 | $ | — | |||||
Fuguiniao Co. Ltd. Class Ha,d | 43,200 | 13,912 | ||||||
HengTen Networks Group Ltd.a,b | 3,168,000 | 141,694 | ||||||
HOSA International Ltd.b | 108,000 | 40,024 | ||||||
Lao Feng Xiang Co. Ltd. Class B | 28,880 | 106,596 | ||||||
Li Ning Co. Ltd.a | 216,000 | 198,740 | ||||||
Luthai Textile Co. Ltd. Class B | 28,800 | 31,173 | ||||||
Shanghai Haixin Group Co. Class B | 65,700 | 39,223 | ||||||
Texhong Textile Group Ltd.b | 40,500 | 52,997 | ||||||
Xtep International Holdings Ltd. | 139,500 | 62,037 | ||||||
|
| |||||||
1,045,002 | ||||||||
TRADING COMPANIES & DISTRIBUTORS — 0.65% |
| |||||||
China Aircraft Leasing Group Holdings Ltd. | 31,500 | 30,834 | ||||||
China Chengtong Development Group Ltd.a,b | 414,000 | 23,543 | ||||||
CITIC Resources Holdings Ltd.b | 396,037 | 39,476 | ||||||
New Provenance Everlasting Holdings Ltd. Class Ha | 1,710,000 | 37,149 | ||||||
Shanghai Dasheng Agricultural Finance Technology Co. Ltd.b | 364,000 | 21,397 | ||||||
|
| |||||||
152,399 | ||||||||
TRANSPORTATION INFRASTRUCTURE — 3.99% |
| |||||||
Anhui Expressway Co. Ltd. Class H | 54,000 | 42,439 | ||||||
COSCO SHIPPING International Hong Kong Co. Ltd. | 90,000 | 38,414 | ||||||
Guangdong Provincial Expressway Development Co. Ltd. Class B | 49,500 | 42,129 | ||||||
HNA Infrastructure Co. Ltd. Class H | 18,000 | 19,322 | ||||||
Hopewell Highway Infrastructure Ltd. | 130,500 | 78,881 | ||||||
Jinzhou Port Co. Ltd. Class B | 38,700 | 19,040 | ||||||
Qingdao Port International Co. Ltd.c | 153,000 | 111,055 | ||||||
Shenzhen Chiwan Wharf Holdings Ltd. Class B | 17,100 | 28,539 | ||||||
Shenzhen Expressway Co. Ltd. Class H | 108,000 | 109,031 | ||||||
Shenzhen International Holdings Ltd. | 130,500 | 268,828 | ||||||
Sichuan Expressway Co. Ltd. Class H | 126,000 | 45,406 | ||||||
Tianjin Port Development Holdings Ltd. | 252,000 | 36,712 | ||||||
Xiamen International Port Co. Ltd. Class H | 144,000 | 26,867 | ||||||
Yuexiu Transport Infrastructure Ltd. | 90,000 | 67,627 | ||||||
|
| |||||||
934,290 |
Security | Shares | Value | ||||||
WATER UTILITIES — 1.17% |
| |||||||
China Everbright Water Ltd.b | 97,200 | $ | 33,065 | |||||
China Water Affairs Group Ltd. | 126,000 | 111,262 | ||||||
China Water Industry Group Ltd.a | 180,000 | 37,264 | ||||||
CT Environmental Group Ltd.b | 306,000 | 53,572 | ||||||
Kangda International Environmental Co. Ltd.c | 99,000 | 20,242 | ||||||
Yunnan Water Investment Co. Ltd. | 45,000 | 18,920 | ||||||
|
| |||||||
274,325 | ||||||||
|
| |||||||
TOTAL COMMON STOCKS | ||||||||
(Cost: $22,818,556) |
| 23,337,545 | ||||||
SHORT-TERM INVESTMENTS — 22.26% |
| |||||||
MONEY MARKET FUNDS — 22.26% |
| |||||||
BlackRock Cash Funds: Institutional, | ||||||||
1.58%e,f,g | 5,171,738 | 5,172,255 | ||||||
BlackRock Cash Funds: Treasury, | ||||||||
1.32%e,f | 42,257 | 42,257 | ||||||
|
| |||||||
5,214,512 | ||||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||||
(Cost: $5,214,019) |
| 5,214,512 | ||||||
|
| |||||||
TOTAL INVESTMENTS |
| |||||||
(Cost: $28,032,575) |
| 28,552,057 | ||||||
Other Assets, Less Liabilities — (21.88)% |
| (5,125,020 | ) | |||||
|
| |||||||
NET ASSETS — 100.00% | $ | 23,427,037 | ||||||
|
|
ADR — American Depositary Receipts
a | Non-income producing security. |
b | All or a portion of this security is on loan. |
c | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
d | Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. |
e | Affiliate of the Fund. |
f | Annualized 7-day yield as of period end. |
g | All or a portion of this security was purchased with cash collateral received from loaned securities. |
SCHEDULESOF INVESTMENTS | 35 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI CHINA SMALL-CAP ETF
February 28, 2018
Affiliates (Note 2)
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows:
Affiliated issuer | Shares held at 08/31/17 | Shares purchased | Shares sold | Shares held at 02/28/18 | Value at 02/28/18 | Income | Net realized gain (loss) a | Change in unrealized appreciation (depreciation) | ||||||||||||||||||||||||
BlackRock Cash |
| |||||||||||||||||||||||||||||||
SL Agency Shares | 6,245,946 | — | (1,074,208 | )b | 5,171,738 | $ | 5,172,255 | $ | 142,146 | c | $ | (337 | ) | $ | (1,005 | ) | ||||||||||||||||
BlackRock Cash |
| |||||||||||||||||||||||||||||||
SL Agency Shares | 8,446 | 33,811 | b | — | 42,257 | 42,257 | 201 | — | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 5,214,512 | $ | 142,347 | $ | (337 | ) | $ | (1,005 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
a | Includes realized capital gain distributions from an affiliated fund, if any. |
b | Net of purchases and sales. |
c | Includes the Fund’s portion of securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. |
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments |
| |||||||||||||||
Assets |
| |||||||||||||||
Common stocks | $ | 23,179,946 | $ | 28,539 | $ | 129,060 | $ | 23,337,545 | ||||||||
Money market funds | 5,214,512 | — | — | 5,214,512 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 28,394,458 | $ | 28,539 | $ | 129,060 | $ | 28,552,057 | ||||||||
|
|
|
|
|
|
|
| |||||||||
A reconciliation of investments in which Level 3 inputs were used in determining fair value is presented when a Fund has a significant amount of Level 3 financial instruments at the beginning and/or end of the period in relation to the Fund’s net assets. Additional disclosure on Level 3 inputs are presented when a Fund has a significant amount of Level 3 investments at the end of the period.
36 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI CHINA SMALL-CAP ETF
February 28, 2018
The following table includes a rollforward for the period ended February 28, 2018 of investments whose values are classified as Level 3 as of the beginning or end of the period.
Common Stocks | ||||
Balance at beginning of period | $ | 223,862 | ||
Realized gain (loss) and change in unrealized appreciation/depreciation | (82,422 | ) | ||
Purchases | 3,163 | |||
Sales | (56,355 | ) | ||
Transfers ina | 40,812 | b | ||
Transfers outa | — | |||
|
| |||
Balance at end of period | $ | 129,060 | ||
|
| |||
Net change in unrealized appreciation/depreciation on investments still held at end of period | $ | (77,452 | ) | |
|
| |||
a | Represents the value as of the beginning of the reporting period. |
b | Transfers in to Level 3 are due to the suspension of trading of equity securities. |
See notes to financial statements.
SCHEDULESOF INVESTMENTS | 37 |
Table of Contents
Schedule of Investments (Unaudited)
February 28, 2018
Security | Shares | Value | ||||||
COMMON STOCKS — 99.86% |
| |||||||
AUTOMOBILES — 8.14% |
| |||||||
Astra International Tbk PT | 79,583,130 | $ | 46,742,101 | |||||
|
| |||||||
46,742,101 | ||||||||
BANKS — 36.05% |
| |||||||
Bank Bukopin Tbk PT | 23,169,299 | 1,061,691 | ||||||
Bank Central Asia Tbk PT | 38,959,058 | 65,670,885 | ||||||
Bank Danamon Indonesia Tbk PT | 14,059,060 | 6,749,085 | ||||||
Bank Mandiri Persero Tbk PT | 73,441,460 | 44,336,773 | ||||||
Bank Negara Indonesia Persero Tbk PT | 30,575,958 | 21,627,901 | ||||||
Bank Pembangunan Daerah Jawa Barat Dan Banten Tbk PT | 10,021,336 | 1,654,612 | ||||||
Bank Pembangunan Daerah Jawa Timur Tbk PT | 18,237,300 | 981,605 | ||||||
Bank Rakyat Indonesia Persero Tbk PT | 218,802,660 | 60,157,403 | ||||||
Bank Tabungan Negara Persero Tbk PT | 17,821,326 | 4,847,930 | ||||||
|
| |||||||
207,087,885 | ||||||||
CAPITAL MARKETS — 0.41% |
| |||||||
Kresna Graha Investama Tbk PTa | 53,979,800 | 2,336,108 | ||||||
|
| |||||||
2,336,108 | ||||||||
CONSTRUCTION & ENGINEERING — 2.30% |
| |||||||
Adhi Karya Persero Tbk PT | 7,216,910 | 1,301,810 | ||||||
PP Persero Tbk PT | 12,609,322 | 2,843,139 | ||||||
Sitara Propertindo Tbk PTa | 14,208,600 | 852,609 | ||||||
Totalindo Eka Persada Tbk PTa | 6,756,700 | 2,334,388 | ||||||
Waskita Karya Persero Tbk PT | 19,320,200 | 4,089,303 | ||||||
Wijaya Karya Persero Tbk PT | 12,793,870 | 1,791,337 | ||||||
|
| |||||||
13,212,586 | ||||||||
CONSTRUCTION MATERIALS — 4.14% |
| |||||||
Indocement Tunggal Prakarsa Tbk PT | 7,492,244 | 11,975,274 | ||||||
Semen Indonesia Persero Tbk PT | 12,166,655 | 9,845,004 | ||||||
Waskita Beton Precast Tbk PT | 44,315,500 | 1,547,183 | ||||||
Wijaya Karya Beton Tbk PT | 10,747,300 | 437,756 | ||||||
|
| |||||||
23,805,217 | ||||||||
DIVERSIFIED TELECOMMUNICATION SERVICES — 11.02% |
| |||||||
Inovisi Infracom Tbk PTa,b | 9,476,400 | — | ||||||
Link Net Tbk PT | 4,343,400 | 1,753,345 | ||||||
Telekomunikasi Indonesia Persero Tbk PT | 199,477,690 | 58,036,205 |
Security | Shares | Value | ||||||
Tower Bersama Infrastructure Tbk PT | 8,640,700 | $ | 3,535,218 | |||||
|
| |||||||
63,324,768 | ||||||||
FOOD PRODUCTS — 5.74% |
| |||||||
Charoen Pokphand Indonesia Tbk PT | 29,969,425 | 7,498,623 | ||||||
Eagle High Plantations Tbk PTa | 44,728,352 | 754,772 | ||||||
Indofood CBP Sukses Makmur Tbk PT | 9,642,454 | 6,294,579 | ||||||
Indofood Sukses Makmur Tbk PT | 17,821,430 | 9,819,059 | ||||||
Inti Agri Resources Tbk PTa | 122,005,100 | 2,005,539 | ||||||
Japfa Comfeed Indonesia Tbk PT | 18,600,300 | 2,191,693 | ||||||
Nippon Indosari Corpindo Tbk PT | 7,654,433 | 684,799 | ||||||
Perusahaan Perkebunan London Sumatra Indonesia Tbk PT | 12,444,700 | 1,258,183 | ||||||
Salim Ivomas Pratama Tbk PT | 12,862,000 | 491,148 | ||||||
Sawit Sumbermas Sarana Tbk PT | 9,652,000 | 1,014,448 | ||||||
Tunas Baru Lampung Tbk PT | 10,828,200 | 952,986 | ||||||
|
| |||||||
32,965,829 | ||||||||
GAS UTILITIES — 1.49% |
| |||||||
Perusahaan Gas Negara Persero Tbk PT | 44,142,107 | 8,572,530 | ||||||
|
| |||||||
8,572,530 | ||||||||
HEALTH CARE PROVIDERS & SERVICES — 0.18% |
| |||||||
Siloam International Hospitals Tbk PTa | 1,671,665 | 1,039,585 | ||||||
|
| |||||||
1,039,585 | ||||||||
HOUSEHOLD PRODUCTS — 4.23% |
| |||||||
Sekawan Intipratama Tbk PTa,b | 30,572,100 | 51,144 | ||||||
Unilever Indonesia Tbk PT | 6,183,104 | 24,240,412 | ||||||
|
| |||||||
24,291,556 | ||||||||
INSURANCE — 0.24% |
| |||||||
Panin Financial Tbk PTa | 68,282,578 | 1,370,767 | ||||||
|
| |||||||
1,370,767 | ||||||||
MARINE — 0.00% |
| |||||||
Berlian Laju Tanker Tbk PTa,b | 20,137,514 | — | ||||||
|
| |||||||
— | ||||||||
MEDIA — 1.76% |
| |||||||
Global Mediacom Tbk PT | 28,780,100 | 1,266,463 | ||||||
Media Nusantara Citra Tbk PT | 20,743,400 | 2,315,970 | ||||||
MNC Investama Tbk PTa | 97,409,600 | 864,383 | ||||||
Surya Citra Media Tbk PT | 23,769,300 | 4,927,265 | ||||||
Visi Media Asia Tbk PTa | 33,371,700 | 752,462 | ||||||
|
| |||||||
10,126,543 |
38 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI INDONESIA ETF
February 28, 2018
Security | Shares | Value | ||||||
METALS & MINING — 0.77% |
| |||||||
Aneka Tambang Persero Tbk PTa | 33,809,654 | $ | 2,348,490 | |||||
Krakatau Steel Persero Tbk PTa | 15,046,193 | 558,138 | ||||||
Pelat Timah Nusantara Tbk PTa | 2,045,200 | 537,017 | ||||||
Timah Tbk PT | 11,806,980 | 1,000,482 | ||||||
|
| |||||||
4,444,127 | ||||||||
MULTILINE RETAIL — 1.84% |
| |||||||
Matahari Department Store Tbk PT | 10,035,800 | 7,774,031 | ||||||
Mitra Adiperkasa Tbk PT | 3,028,500 | 1,674,117 | ||||||
Ramayana Lestari Sentosa Tbk PT | 12,944,800 | 1,111,021 | ||||||
|
| |||||||
10,559,169 | ||||||||
OIL, GAS & CONSUMABLE FUELS — 7.85% |
| |||||||
Adaro Energy Tbk PT | 58,452,039 | 9,991,075 | ||||||
Bukit Asam Persero Tbk PT | 14,072,850 | 3,244,786 | ||||||
Bumi Resources Tbk PTa | 105,415,100 | 2,422,895 | ||||||
Delta Dunia Makmur Tbk PTa | 18,561,300 | 1,498,567 | ||||||
Harum Energy Tbk PTa | 3,286,500 | 812,750 | ||||||
Indika Energy Tbk PTa | 7,403,500 | 2,326,299 | ||||||
Indo Tambangraya Megah Tbk PT | 1,379,280 | 3,089,924 | ||||||
Medco Energi Internasional Tbk PTa | 32,169,033 | 3,685,218 | ||||||
Sugih Energy Tbk PTa | 119,120,611 | 433,213 | ||||||
United Tractors Tbk PT | 6,795,296 | 17,595,559 | ||||||
|
| |||||||
45,100,286 | ||||||||
PERSONAL PRODUCTS — 0.12% |
| |||||||
Industri Jamu Dan Farmasi Sido Muncul Tbk PT | 13,484,700 | 666,952 | ||||||
|
| |||||||
666,952 | ||||||||
PHARMACEUTICALS — 1.89% |
| |||||||
Indofarma Persero Tbk PTa | 2,512,900 | 806,043 | ||||||
Kalbe Farma Tbk PT | 86,459,485 | 10,061,838 | ||||||
|
| |||||||
10,867,881 | ||||||||
REAL ESTATE MANAGEMENT & DEVELOPMENT — 5.02% |
| |||||||
Alam Sutera Realty Tbk PT | 39,942,316 | 1,138,843 | ||||||
Bumi Serpong Damai Tbk PT | 31,851,422 | 4,482,853 | ||||||
Ciputra Development Tbk PT | 56,556,413 | 5,306,599 | ||||||
Hanson International Tbk PTa | 256,304,435 | 2,833,638 | ||||||
Intiland Development Tbk PT | 25,354,520 | 663,900 | ||||||
Kawasan Industri Jababeka Tbk PT | 58,762,213 | 1,188,195 | ||||||
Lippo Karawaci Tbk PT | 56,640,162 | 2,121,663 |
Security | Shares | Value | ||||||
Modernland Realty Tbk PT | 35,564,418 | $ | 858,813 | |||||
Pakuwon Jati Tbk PT | 89,121,377 | 4,375,527 | ||||||
PP Properti Tbk PT | 88,122,939 | 1,198,603 | ||||||
Sentul City Tbk PTa | 90,133,800 | 1,350,515 | ||||||
Summarecon Agung Tbk PT | 41,299,958 | 3,334,396 | ||||||
|
| |||||||
28,853,545 | ||||||||
SPECIALTY RETAIL — 0.54% |
| |||||||
Ace Hardware Indonesia Tbk PT | 31,965,679 | 3,092,290 | ||||||
|
| |||||||
3,092,290 | ||||||||
TEXTILES, APPAREL & LUXURY GOODS — 0.14% |
| |||||||
Sri Rejeki Isman Tbk PT | 33,918,400 | 828,933 | ||||||
|
| |||||||
828,933 | ||||||||
TOBACCO — 4.32% |
| |||||||
Gudang Garam Tbk PT | 1,964,242 | 11,393,847 | ||||||
Hanjaya Mandala Sampoerna Tbk PT | 38,232,700 | 13,403,761 | ||||||
|
| |||||||
24,797,608 | ||||||||
TRADING COMPANIES & DISTRIBUTORS — 0.57% |
| |||||||
AKR Corporindo Tbk PT | 7,434,700 | 3,298,663 | ||||||
|
| |||||||
3,298,663 | ||||||||
TRANSPORTATION INFRASTRUCTURE — 0.61% |
| |||||||
Jasa Marga Persero Tbk PT | 9,054,308 | 3,523,333 | ||||||
|
| |||||||
3,523,333 | ||||||||
WIRELESS TELECOMMUNICATION SERVICES — 0.49% |
| |||||||
XL Axiata Tbk PTa | 13,039,300 | 2,797,828 | ||||||
|
| |||||||
2,797,828 | ||||||||
|
| |||||||
TOTAL COMMON STOCKS |
| |||||||
(Cost: $594,996,823) |
| 573,706,090 | ||||||
SHORT-TERM INVESTMENTS — 0.04% |
| |||||||
MONEY MARKET FUNDS — 0.04% |
| |||||||
BlackRock Cash Funds: Treasury, |
| |||||||
1.32%c,d | 237,081 | 237,081 | ||||||
|
| |||||||
237,081 | ||||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||||
(Cost: $237,081) | 237,081 | |||||||
|
| |||||||
TOTAL INVESTMENTS |
| |||||||
(Cost: $595,233,904) |
| 573,943,171 | ||||||
Other Assets, Less Liabilities — 0.10% |
| 569,509 | ||||||
|
| |||||||
NET ASSETS — 100.00% |
| $ | 574,512,680 | |||||
|
|
SCHEDULESOF INVESTMENTS | 39 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI INDONESIA ETF
February 28, 2018
a | Non-income producing security. |
b | Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. |
c | Affiliate of the Fund. |
d | Annualized 7-day yield as of period end. |
Affiliates (Note 2)
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows:
Affiliated issuer | Shares held at 08/31/17 | Shares purchased | Shares sold | Shares held at 02/28/18 | Value at 02/28/18 | Income | Net realized gain (loss) a | Change in unrealized appreciation (depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Treasury, | 146,022 | 91,059 | b | — | 237,081 | $ | 237,081 | $ | 1,236 | $ | — | $ | — | |||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
�� |
a | Includes realized capital gain distributions from an affiliated fund, if any. |
b | Net of purchases and sales. |
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments |
| |||||||||||||||
Assets |
| |||||||||||||||
Common stocks | $ | 573,654,946 | $ | — | $ | 51,144 | $ | 573,706,090 | ||||||||
Money market funds | 237,081 | — | — | 237,081 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 573,892,027 | $ | — | $ | 51,144 | $ | 573,943,171 | ||||||||
|
|
|
|
|
|
|
| |||||||||
See notes to financial statements.
40 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
February 28, 2018
Security | Shares | Value | ||||||
COMMON STOCKS — 99.85% |
| |||||||
BANKS — 29.63% |
| |||||||
BBVA Banco Continental SA | 3,442,291 | $ | 4,485,586 | |||||
Credicorp Ltd. | 195,962 | 42,415,975 | ||||||
Intercorp Financial Services Inc. | 207,125 | 8,601,901 | ||||||
|
| |||||||
55,503,462 | ||||||||
CONSTRUCTION & ENGINEERING — 1.29% |
| |||||||
Grana y Montero SAAa | 4,823,124 | 2,410,453 | ||||||
|
| |||||||
2,410,453 | ||||||||
CONSTRUCTION MATERIALS — 4.94% |
| |||||||
Cementos Pacasmayo SAA | 2,021,075 | 4,895,445 | ||||||
Union Andina de Cementos SAA | 4,759,069 | 4,362,905 | ||||||
|
| |||||||
9,258,350 | ||||||||
ELECTRIC UTILITIES — 2.81% |
| |||||||
Enel Distribucion Peru SAA | 1,052,342 | 1,871,404 | ||||||
Luz del Sur SAA | 915,127 | 3,386,656 | ||||||
|
| |||||||
5,258,060 | ||||||||
FOOD & STAPLES RETAILING — 2.98% |
| |||||||
InRetail Peru Corp.b | 261,757 | 5,588,512 | ||||||
|
| |||||||
5,588,512 | ||||||||
FOOD PRODUCTS — 5.47% |
| |||||||
Alicorp SAA | 2,658,278 | 8,965,524 | ||||||
Casa Grande SAA | 734,923 | 1,268,624 | ||||||
|
| |||||||
10,234,148 | ||||||||
METALS & MINING — 45.80% |
| |||||||
Cia. de Minas Buenaventura SAA ADR | 1,136,274 | 17,669,061 | ||||||
Cia. Minera Atacocha SAA Class Ba | 3,492,091 | 717,370 | ||||||
Cia. Minera Milpo SAA | 3,878,000 | 6,206,702 | ||||||
Hochschild Mining PLC | 1,854,435 | 5,225,250 | ||||||
Minsur SA | 7,770,804 | 4,169,525 | ||||||
Pan American Silver Corp. | 227,863 | 3,453,467 | ||||||
Sociedad Minera Cerro Verde SAAa | 166,762 | 4,911,141 | ||||||
Southern Copper Corp. | 498,958 | 26,310,055 | ||||||
Tahoe Resources Inc. | 840,765 | 4,120,657 | ||||||
Trevali Mining Corp.a | 5,232,356 | 6,166,042 | ||||||
Volcan Cia. Minera SAA Class B | 18,093,984 | 6,823,732 | ||||||
|
| |||||||
85,773,002 | ||||||||
MULTILINE RETAIL — 2.40% |
| |||||||
SACI Falabella | 444,380 | 4,497,380 | ||||||
|
| |||||||
4,497,380 |
Security | Shares | Value | ||||||
OIL, GAS & CONSUMABLE FUELS — 1.09% |
| |||||||
Refineria La Pampilla SAA Relapasaa | 20,864,764 | $ | 2,047,133 | |||||
|
| |||||||
2,047,133 | ||||||||
TRADING COMPANIES & DISTRIBUTORS — 3.44% |
| |||||||
Ferreycorp SAA | 8,296,851 | 6,436,006 | ||||||
|
| |||||||
6,436,006 | ||||||||
|
| |||||||
TOTAL COMMON STOCKS | ||||||||
(Cost: $212,903,992) | 187,006,506 | |||||||
SHORT-TERM INVESTMENTS — 0.12% |
| |||||||
MONEY MARKET FUNDS — 0.12% |
| |||||||
BlackRock Cash Funds: Treasury, | ||||||||
1.32%c,d | 230,101 | 230,101 | ||||||
|
| |||||||
230,101 | ||||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS |
| 230,101 | ||||||
|
| |||||||
TOTAL INVESTMENTS | ||||||||
(Cost: $213,134,093) | 187,236,607 | |||||||
Other Assets, Less Liabilities — 0.03% |
| 59,098 | ||||||
|
| |||||||
NET ASSETS — 100.00% | $ | 187,295,705 | ||||||
|
|
ADR — American Depositary Receipts
a | Non-income producing security. |
b | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
c | Affiliate of the Fund. |
d | Annualized 7-day yield as of period end. |
SCHEDULESOF INVESTMENTS | 41 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI PERU ETF
February 28, 2018
Affiliates (Note 2)
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows:
Affiliated issuer | Shares held at 08/31/17 | Shares purchased | Shares sold | Shares held at 02/28/18 | Value at 02/28/18 | Income | Net realized gain (loss) a | Change in unrealized appreciation (depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Treasury, | 92,100 | 138,001 | b | — | 230,101 | $ | 230,101 | $ | 1,358 | $ | — | $ | — | |||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
a | Includes realized capital gain distributions from an affiliated fund, if any. |
b | Net of purchases and sales. |
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments |
| |||||||||||||||
Assets |
| |||||||||||||||
Common stocks | $ | 187,006,506 | $ | — | $ | — | $ | 187,006,506 | ||||||||
Money market funds | 230,101 | — | — | 230,101 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 187,236,607 | $ | — | $ | — | $ | 187,236,607 | ||||||||
|
|
|
|
|
|
|
| |||||||||
See notes to financial statements.
42 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
February 28, 2018
Security | Shares | Value | ||||||
COMMON STOCKS — 99.87% |
| |||||||
AIRLINES — 0.63% |
| |||||||
Cebu Air Inc. | 579,720 | $ | 1,116,473 | |||||
|
| |||||||
1,116,473 | ||||||||
BANKS — 15.62% |
| |||||||
Bank of the Philippine Islands | 2,143,749 | 4,935,398 | ||||||
BDO Unibank Inc. | 5,363,174 | 16,044,211 | ||||||
East West Banking Corp. | 1,028,200 | 552,796 | ||||||
Metropolitan Bank & Trust Co. | 1,729,874 | 3,250,157 | ||||||
Security Bank Corp. | 616,750 | 2,915,588 | ||||||
|
| |||||||
27,698,150 | ||||||||
CHEMICALS — 0.87% |
| |||||||
D&L Industries Inc. | 6,825,700 | 1,546,530 | ||||||
|
| |||||||
1,546,530 | ||||||||
CONSTRUCTION & ENGINEERING — 0.47% |
| |||||||
Megawide Construction Corp. | 2,046,700 | 831,177 | ||||||
|
| |||||||
831,177 | ||||||||
CONSTRUCTION MATERIALS — 0.25% |
| |||||||
CEMEX Holdings Philippines Inc.a,b | 6,377,900 | 448,216 | ||||||
|
| |||||||
448,216 | ||||||||
DIVERSIFIED FINANCIAL SERVICES — 13.57% |
| |||||||
Ayala Corp. | 677,543 | 13,751,209 | ||||||
GT Capital Holdings Inc. | 236,546 | 6,131,665 | ||||||
Metro Pacific Investments Corp. | 38,693,750 | 4,182,907 | ||||||
|
| |||||||
24,065,781 | ||||||||
ELECTRIC UTILITIES — 2.65% |
| |||||||
First Philippine Holdings Corp. | 605,639 | 723,906 | ||||||
Manila Electric Co. | 614,320 | 3,970,432 | ||||||
|
| |||||||
4,694,338 | ||||||||
FOOD & STAPLES RETAILING — 0.48% |
| |||||||
Cosco Capital Inc. | 6,048,000 | 850,064 | ||||||
|
| |||||||
850,064 | ||||||||
FOOD PRODUCTS — 4.30% |
| |||||||
Century Pacific Food Inc. | 2,414,700 | 752,971 | ||||||
Universal Robina Corp. | 2,405,868 | 6,883,148 | ||||||
|
| |||||||
7,636,119 | ||||||||
HOTELS, RESTAURANTS & LEISURE — 6.13% |
| |||||||
Bloomberry Resorts Corp.b | 10,517,065 | 2,907,944 | ||||||
Jollibee Foods Corp. | 1,181,631 | 6,770,328 | ||||||
Melco Resorts And Entertainment (Philippines) Corp.b | 4,641,300 | 681,758 | ||||||
Premium Leisure Corp. | 21,583,000 | 522,170 | ||||||
|
| |||||||
10,882,200 |
Security | Shares | Value | ||||||
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS — 2.51% |
| |||||||
Aboitiz Power Corp. | 4,010,235 | $ | 2,964,555 | |||||
First Gen Corp. | 3,496,237 | 973,415 | ||||||
Lopez Holdings Corp. | 5,051,450 | 522,798 | ||||||
|
| |||||||
4,460,768 | ||||||||
INDUSTRIAL CONGLOMERATES — 20.72% |
| |||||||
Aboitiz Equity Ventures Inc. | 5,380,837 | 7,996,866 | ||||||
Alliance Global Group Inc.b | 11,181,039 | 3,190,289 | ||||||
DMCI Holdings Inc. | 10,870,260 | 2,905,415 | ||||||
JG Summit Holdings Inc. | 7,812,282 | 10,800,390 | ||||||
SM Investments Corp. | 657,316 | 11,863,998 | ||||||
|
| |||||||
36,756,958 | ||||||||
METALS & MINING — 0.21% |
| |||||||
Nickel Asia Corp. | 3,040,300 | 366,027 | ||||||
|
| |||||||
366,027 | ||||||||
OIL, GAS & CONSUMABLE FUELS — 0.64% |
| |||||||
Petron Corp. | 6,405,000 | 1,130,222 | ||||||
|
| |||||||
1,130,222 | ||||||||
REAL ESTATE MANAGEMENT & DEVELOPMENT — 22.66% |
| |||||||
Ayala Land Inc. | 20,089,400 | 15,853,962 | ||||||
DoubleDragon Properties Corp.b | 1,836,290 | 1,128,289 | ||||||
Filinvest Land Inc. | 26,257,590 | 892,395 | ||||||
Megaworld Corp. | 30,796,660 | 2,867,968 | ||||||
Robinsons Land Corp. | 5,675,406 | 2,114,111 | ||||||
SM Prime Holdings Inc. | 23,626,435 | 16,014,077 | ||||||
Vista Land & Lifescapes Inc. | 10,513,100 | 1,312,119 | ||||||
|
| |||||||
40,182,921 | ||||||||
TRANSPORTATION INFRASTRUCTURE — 1.65% |
| |||||||
International Container Terminal Services Inc. | 1,381,923 | 2,918,808 | ||||||
|
| |||||||
2,918,808 | ||||||||
WATER UTILITIES — 0.95% |
| |||||||
Manila Water Co. Inc. | 3,365,029 | 1,679,930 | ||||||
|
| |||||||
1,679,930 | ||||||||
WIRELESS TELECOMMUNICATION SERVICES — 5.56% |
| |||||||
Globe Telecom Inc. | 90,625 | 2,996,472 | ||||||
PLDT Inc. | 235,524 | 6,873,972 | ||||||
|
| |||||||
9,870,444 | ||||||||
|
| |||||||
TOTAL COMMON STOCKS |
| 177,135,126 |
SCHEDULESOF INVESTMENTS | 43 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI PHILIPPINES ETF
February 28, 2018
Security | Shares | Value | ||||||
SHORT-TERM INVESTMENTS — 0.04% |
| |||||||
MONEY MARKET FUNDS — 0.04% |
| |||||||
BlackRock Cash Funds: Treasury, |
| |||||||
1.32%c,d | 69,085 | $ | 69,085 | |||||
|
| |||||||
69,085 | ||||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||||
(Cost: $69,085) | 69,085 | |||||||
|
| |||||||
TOTAL INVESTMENTS |
| |||||||
(Cost: $198,393,982) | 177,204,211 | |||||||
Other Assets, Less Liabilities — 0.09% |
| 154,170 | ||||||
|
| |||||||
NET ASSETS — 100.00% |
| $ | 177,358,381 | |||||
|
|
a | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
b | Non-income producing security. |
c | Affiliate of the Fund. |
d | Annualized 7-day yield as of period end. |
Affiliates (Note 2)
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows:
Affiliated issuer | Shares held at 08/31/17 | Shares purchased | Shares sold | Shares held at 02/28/18 | Value at 02/28/18 | Income | Net realized gain (loss) a | Change in unrealized appreciation (depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Treasury, | 36,088 | 32,997 | b | — | 69,085 | $ | 69,085 | $ | 375 | $ | — | $ | — | |||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
a | Includes realized capital gain distributions from an affiliated fund, if any. |
b | Net of purchases and sales. |
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common stocks | $ | 177,135,126 | $ | — | $ | — | $ | 177,135,126 | ||||||||
Money market funds | 69,085 | — | — | 69,085 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 177,204,211 | $ | — | $ | — | $ | 177,204,211 | ||||||||
|
|
|
|
|
|
|
| |||||||||
See notes to financial statements.
44 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
February 28, 2018
Security | Shares | Value | ||||||
COMMON STOCKS — 99.96% |
| |||||||
BANKS — 35.89% |
| |||||||
Alior Bank SAa | 455,944 | $ | 11,090,080 | |||||
Bank Handlowy w Warszawie SA | 176,485 | 4,315,880 | ||||||
Bank Millennium SAa | 3,093,107 | 7,546,035 | ||||||
Bank Pekao SA | 738,315 | 28,537,192 | ||||||
Bank Zachodni WBK SA | 154,320 | 16,851,694 | ||||||
Getin Noble Bank SAa,b | 2,875,622 | 1,275,537 | ||||||
mBank SAa | 74,451 | 9,950,699 | ||||||
Powszechna Kasa Oszczednosci Bank Polski SAa | 4,513,555 | 56,729,792 | ||||||
|
| |||||||
136,296,909 | ||||||||
CAPITAL MARKETS — 0.55% |
| |||||||
Warsaw Stock Exchange | 163,846 | 2,103,808 | ||||||
|
| |||||||
2,103,808 | ||||||||
CHEMICALS — 1.73% |
| |||||||
Ciech SAa | 152,687 | 2,586,556 | ||||||
Grupa Azoty SA | 234,974 | 3,983,947 | ||||||
|
| |||||||
6,570,503 | ||||||||
CONSTRUCTION & ENGINEERING — 0.93% |
| |||||||
Budimex SA | 62,490 | 3,534,125 | ||||||
|
| |||||||
3,534,125 | ||||||||
CONSUMER FINANCE — 1.41% |
| |||||||
KRUK SA | 86,446 | 5,348,085 | ||||||
|
| |||||||
5,348,085 | ||||||||
DIVERSIFIED TELECOMMUNICATION SERVICES — 1.99% |
| |||||||
Netia SA | 1,174,821 | 1,844,470 | ||||||
Orange Polska SAa | 3,429,105 | 5,703,917 | ||||||
|
| |||||||
7,548,387 | ||||||||
ELECTRIC UTILITIES — 6.14% |
| |||||||
Enea SA | 1,179,992 | 3,484,794 | ||||||
Energa SA | 1,112,892 | 3,384,062 | ||||||
PGE Polska Grupa Energetyczna SAa | 4,177,657 | 12,361,988 | ||||||
Tauron Polska Energia SAa | 5,516,814 | 4,105,312 | ||||||
|
| |||||||
23,336,156 | ||||||||
FOOD & STAPLES RETAILING — 1.72% |
| |||||||
Dino Polska SAa,c | 155,109 | 3,863,297 | ||||||
Eurocash SAb | 438,666 | 2,678,016 | ||||||
|
| |||||||
6,541,313 | ||||||||
HEALTH CARE PROVIDERS & SERVICES — 0.29% |
| |||||||
Neuca SA | 14,592 | 1,107,148 | ||||||
|
| |||||||
1,107,148 |
Security | Shares | Value | ||||||
INSURANCE — 9.50% |
| |||||||
Powszechny Zaklad Ubezpieczen SA | 2,894,205 | $ | 36,089,408 | |||||
|
| |||||||
36,089,408 | ||||||||
MEDIA — 1.87% |
| |||||||
Cyfrowy Polsat SA | 1,041,318 | 7,098,618 | ||||||
|
| |||||||
7,098,618 | ||||||||
METALS & MINING — 6.93% |
| |||||||
Boryszew SAa | 542,895 | 1,563,690 | ||||||
Jastrzebska Spolka Weglowa SAa | 269,945 | 7,263,129 | ||||||
KGHM Polska Miedz SA | 545,019 | 16,700,079 | ||||||
Stalprodukt SAb | 5,359 | 788,192 | ||||||
|
| |||||||
26,315,090 | ||||||||
OIL, GAS & CONSUMABLE FUELS — 17.16% |
| |||||||
Grupa Lotos SA | 468,502 | 7,680,876 | ||||||
Lubelski Wegiel Bogdanka SA | 77,940 | 1,196,365 | ||||||
Polski Koncern Naftowy ORLEN SA | 1,458,109 | 41,070,017 | ||||||
Polskie Gornictwo Naftowe i Gazownictwo SA | 8,599,936 | 15,208,467 | ||||||
|
| |||||||
65,155,725 | ||||||||
REAL ESTATE MANAGEMENT & DEVELOPMENT — 0.73% |
| |||||||
Globe Trade Centre SA | 1,057,511 | 2,762,012 | ||||||
|
| |||||||
2,762,012 | ||||||||
ROAD & RAIL — 0.81% |
| |||||||
PKP Cargo SAa | 175,943 | 3,070,370 | ||||||
|
| |||||||
3,070,370 | ||||||||
SOFTWARE — 4.21% |
| |||||||
Asseco Poland SA | 393,660 | 5,429,159 | ||||||
CD Projekt SA | 338,227 | 10,561,112 | ||||||
|
| |||||||
15,990,271 | ||||||||
TEXTILES, APPAREL & LUXURY GOODS — 7.21% |
| |||||||
CCC SA | 144,823 | 10,650,148 | ||||||
LPP SA | 6,363 | 16,739,606 | ||||||
|
| |||||||
27,389,754 | ||||||||
WIRELESS TELECOMMUNICATION SERVICES — 0.89% |
| |||||||
PLAY Communications SAa,c | 342,623 | 3,379,487 | ||||||
|
| |||||||
3,379,487 | ||||||||
|
| |||||||
TOTAL COMMON STOCKS |
| 379,637,169 |
SCHEDULESOF INVESTMENTS | 45 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI POLAND ETF
February 28, 2018
Security | Shares | Value | ||||||
SHORT-TERM INVESTMENTS — 0.90% |
| |||||||
MONEY MARKET FUNDS — 0.90% |
| |||||||
BlackRock Cash Funds: Institutional, |
| |||||||
1.58%d,e,f | 3,121,588 | $ | 3,121,900 | |||||
BlackRock Cash Funds: Treasury, |
| |||||||
1.32%d,e | 278,741 | 278,741 | ||||||
|
| |||||||
3,400,641 | ||||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||||
(Cost: $3,400,581) |
| 3,400,641 | ||||||
|
|
Value | ||||||||
TOTAL INVESTMENTS |
| |||||||
(Cost: $383,723,500) | $ | 383,037,810 | ||||||
Other Assets, Less Liabilities — (0.86)% |
| (3,264,873 | ) | |||||
|
| |||||||
NET ASSETS — 100.00% |
| $ | 379,772,937 | |||||
|
|
a | Non-income producing security. |
b | All or a portion of this security is on loan. |
c | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
d | Affiliate of the Fund. |
e | Annualized 7-day yield as of period end. |
f | All or a portion of this security was purchased with cash collateral received from loaned securities. |
Affiliates (Note 2)
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows:
Affiliated issuer | Shares held at 08/31/17 | Shares purchased | Shares sold | Shares held at 02/28/18 | Value at 02/28/18 | Income | Net realized gain (loss) a | Change in unrealized appreciation (depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, | 6,190,556 | — | (3,068,968 | )b | 3,121,588 | $ | 3,121,900 | $ | 48,830 | c | $ | 401 | $ | (1,534 | ) | |||||||||||||||||
BlackRock Cash Funds: Treasury, | 97,375 | 181,366 | b | — | 278,741 | 278,741 | 2,043 | — | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 3,400,641 | $ | 50,873 | $ | 401 | $ | (1,534 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
a | Includes realized capital gain distributions from an affiliated fund, if any. |
b | Net of purchases and sales. |
c | Includes the Fund’s portion of securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. |
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common stocks | $ | 379,637,169 | $ | — | $ | — | $ | 379,637,169 | ||||||||
Money market funds | 3,400,641 | — | — | 3,400,641 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 383,037,810 | $ | — | $ | — | $ | 383,037,810 | ||||||||
|
|
|
|
|
|
|
| |||||||||
See notes to financial statements.
46 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
February 28, 2018
Security | Shares | Value | ||||||
COMMON STOCKS — 99.04% |
| |||||||
AIR FREIGHT & LOGISTICS — 1.15% |
| |||||||
Gulf Warehousing Co. | 52,197 | $ | 581,698 | |||||
|
| |||||||
581,698 | ||||||||
BANKS — 47.27% |
| |||||||
Commercial Bank PQSC (The)a | 275,733 | 2,133,396 | ||||||
Doha Bank QPSC | 233,474 | 2,090,984 | ||||||
Masraf Al Rayan QSC | 512,631 | 5,279,066 | ||||||
Qatar First Banka | 296,889 | 541,543 | ||||||
Qatar International Islamic Bank QSC | 62,589 | 1,026,122 | ||||||
Qatar Islamic Bank SAQ | 77,495 | 2,037,767 | ||||||
Qatar National Bank QPSC | 328,452 | 10,749,894 | ||||||
|
| |||||||
23,858,772 | ||||||||
CONSTRUCTION MATERIALS — 0.98% |
| |||||||
Qatar National Cement Co. QSC | 30,056 | 493,909 | ||||||
|
| |||||||
493,909 | ||||||||
DIVERSIFIED FINANCIAL SERVICES — 1.26% |
| |||||||
Qatar Industrial Manufacturing Co. QSC | 27,855 | 334,913 | ||||||
Salam International Investment Ltd. QSCa | 187,461 | 300,353 | ||||||
|
| |||||||
635,266 | ||||||||
DIVERSIFIED TELECOMMUNICATION SERVICES — 4.69% |
| |||||||
Ooredoo QPSC | 99,360 | 2,367,528 | ||||||
|
| |||||||
2,367,528 | ||||||||
ENERGY EQUIPMENT & SERVICES — 0.87% |
| |||||||
Gulf International Services QSCa | 91,510 | 440,858 | ||||||
|
| |||||||
440,858 | ||||||||
FOOD & STAPLES RETAILING — 0.82% |
| |||||||
Al Meera Consumer Goods Co. QSC | 10,141 | 415,783 | ||||||
|
| |||||||
415,783 | ||||||||
HEALTH CARE PROVIDERS & SERVICES — 1.03% |
| |||||||
Medicare Group | 25,352 | 520,830 | ||||||
|
| |||||||
520,830 | ||||||||
INDUSTRIAL CONGLOMERATES — 12.50% |
| |||||||
Industries Qatar QSC | 211,373 | 5,980,179 | ||||||
Mannai Corp. QSC | 20,195 | 327,992 | ||||||
|
| |||||||
6,308,171 | ||||||||
INSURANCE — 4.43% |
| |||||||
Qatar Insurance Co. SAQ | 210,939 | 2,238,685 | ||||||
|
| |||||||
2,238,685 |
Security | Shares | Value | ||||||
MARINE — 3.00% |
| |||||||
Qatar Navigation QSC | 88,320 | $ | 1,514,251 | |||||
|
| |||||||
1,514,251 | ||||||||
MULTI-UTILITIES — 3.91% |
| |||||||
Qatar Electricity & Water Co. QSC | 42,105 | 1,973,095 | ||||||
|
| |||||||
1,973,095 | ||||||||
OIL, GAS & CONSUMABLE FUELS — 3.88% |
| |||||||
Qatar Gas Transport Co. Ltd. | 419,225 | 1,956,506 | ||||||
|
| |||||||
1,956,506 | ||||||||
REAL ESTATE MANAGEMENT & DEVELOPMENT — 10.66% | ||||||||
Barwa Real Estate Co. | 152,758 | 1,409,932 | ||||||
Ezdan Holding Group QSC | 907,536 | 2,261,880 | ||||||
Mazaya Qatar Real Estate Development QSCa | 135,708 | 286,938 | ||||||
National Leasing | 59,856 | 165,247 | ||||||
United Development Co. QSC | 277,863 | 1,255,680 | ||||||
|
| |||||||
5,379,677 | ||||||||
WIRELESS TELECOMMUNICATION SERVICES — 2.59% |
| |||||||
Vodafone Qatar QSCa | 548,734 | 1,307,511 | ||||||
|
| |||||||
1,307,511 | ||||||||
|
| |||||||
TOTAL COMMON STOCKS | ||||||||
(Cost: $51,915,725) | 49,992,540 | |||||||
SHORT-TERM INVESTMENTS — 0.11% |
| |||||||
MONEY MARKET FUNDS — 0.11% |
| |||||||
BlackRock Cash Funds: Treasury, | ||||||||
1.32%b,c | 53,623 | 53,623 | ||||||
|
| |||||||
53,623 | ||||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||||
(Cost: $53,623) | 53,623 | |||||||
|
| |||||||
TOTAL INVESTMENTS | ||||||||
(Cost: $51,969,348) | 50,046,163 | |||||||
Other Assets, Less Liabilities — 0.85% |
| 429,514 | ||||||
|
| |||||||
NET ASSETS — 100.00% | $ | 50,475,677 | ||||||
|
|
a | Non-income producing security. |
b | Affiliate of the Fund. |
c | Annualized 7-day yield as of period end. |
SCHEDULESOF INVESTMENTS | 47 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI QATAR ETF
February 28, 2018
Affiliates (Note 2)
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows:
Affiliated issuer | Shares held at 08/31/17 | Shares purchased | Shares sold | Shares held at 02/28/18 | Value at 02/28/18 | Income | Net realized gain (loss) a | Change in unrealized appreciation (depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Treasury, | 71,070 | — | (17,447 | )b | 53,623 | $ | 53,623 | $ | 726 | $ | — | $ | — | |||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
a | Includes realized capital gain distributions from an affiliated fund, if any. |
b | Net of purchases and sales. |
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments |
| |||||||||||||||
Assets |
| |||||||||||||||
Common stocks | $ | — | $ | 49,992,540 | $ | — | $ | 49,992,540 | ||||||||
Money market funds | 53,623 | — | — | 53,623 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 53,623 | $ | 49,992,540 | $ | — | $ | 50,046,163 | ||||||||
|
|
|
|
|
|
|
| |||||||||
The Fund had transfers from Level 1 to Level 2 during the six months ended February 28, 2018 in the amount of $49,404,032 (the value of the securities as of the beginning of the period), resulting from the temporary use of an offshore spot rate to translate Qatari riyal into U.S. dollars.
See notes to financial statements.
48 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI SAUDI ARABIA ETF
February 28, 2018
Security | Shares | Value | ||||||
COMMON STOCKS — 99.99% |
| |||||||
BANKS — 36.30% |
| |||||||
Al Rajhi Bank | 393,859 | $ | 7,674,911 | |||||
Alinma Bank | 381,786 | 2,019,741 | ||||||
Arab National Bank | 181,876 | 1,238,598 | ||||||
Bank Al-Jazira | 132,410 | 447,334 | ||||||
Bank AlBilad | 152,770 | 867,257 | ||||||
Banque Saudi Fransi | 188,197 | 1,462,299 | ||||||
National Commercial Bank | 393,272 | 6,163,914 | ||||||
Riyad Bank | 622,033 | 2,181,088 | ||||||
Samba Financial Group | 489,650 | 3,223,598 | ||||||
Saudi British Bank (The) | 116,914 | 882,240 | ||||||
|
| |||||||
26,160,980 | ||||||||
BUILDING PRODUCTS — 0.14% |
| |||||||
Saudi Ceramic Co. | 14,599 | 97,514 | ||||||
|
| |||||||
97,514 | ||||||||
CHEMICALS — 24.92% |
| |||||||
Advanced Petrochemical Co. | 50,112 | 584,727 | ||||||
Alujain Corp.a | 20,099 | 107,829 | ||||||
National Industrialization Co.a | 170,320 | 819,287 | ||||||
Sahara Petrochemical Co. | 112,531 | 498,698 | ||||||
Saudi Arabian Fertilizer Co. | 84,316 | 1,488,339 | ||||||
Saudi Basic Industries Corp. | 373,284 | 10,431,209 | ||||||
Saudi Industrial Investment Group | 114,589 | 627,592 | ||||||
Saudi International Petrochemical Co.a | 94,259 | 466,985 | ||||||
Saudi Kayan Petrochemical Co.a | 315,878 | 1,075,584 | ||||||
Yanbu National Petrochemical Co. | 103,010 | 1,856,778 | ||||||
|
| |||||||
17,957,028 | ||||||||
COMMERCIAL SERVICES & SUPPLIES — 0.61% |
| |||||||
Saudi Airlines Catering Co. | 19,386 | 442,792 | ||||||
|
| |||||||
442,792 | ||||||||
CONSTRUCTION MATERIALS — 3.66% |
| |||||||
Arabian Cement Co./Saudi Arabia | 26,493 | 243,292 | ||||||
City Cement Co. | 52,207 | 151,458 | ||||||
Eastern Province Cement Co. | 23,556 | 161,299 | ||||||
Najran Cement Co.a | 48,066 | 119,963 | ||||||
Northern Region Cement Co.a | 50,123 | 140,200 | ||||||
Qassim Cement Co. (The) | 23,627 | 287,281 | ||||||
Saudi Cement Co. | 39,139 | 528,282 | ||||||
Southern Province Cement Co. | 33,102 | 430,733 | ||||||
Yamama Cement Co. | 53,743 | 233,727 | ||||||
Yanbu Cement Co. | 40,825 | 341,814 | ||||||
|
| |||||||
2,638,049 |
Security | Shares | Value | ||||||
DIVERSIFIED FINANCIAL SERVICES — 0.15% |
| |||||||
Aseer Trading Tourism & Manufacturing Co. | 36,109 | $ | 107,548 | |||||
|
| |||||||
107,548 | ||||||||
DIVERSIFIED TELECOMMUNICATION SERVICES — 5.43% |
| |||||||
Saudi Telecom Co. | 193,160 | 3,910,276 | ||||||
|
| |||||||
3,910,276 | ||||||||
ELECTRIC UTILITIES — 3.21% |
| |||||||
Saudi Electricity Co. | 429,895 | 2,314,370 | ||||||
|
| |||||||
2,314,370 | ||||||||
FOOD & STAPLES RETAILING — 0.65% |
| |||||||
Abdullah Al Othaim Markets Co. | 11,589 | 468,158 | ||||||
|
| |||||||
468,158 | ||||||||
FOOD PRODUCTS — 7.01% |
| |||||||
Almarai Co. JSC | 229,188 | 3,152,152 | ||||||
Halwani Brothers Co. | 6,870 | 100,220 | ||||||
National Agriculture Development Co. (The)a | 22,964 | 195,699 | ||||||
Saudia Dairy & Foodstuff Co. | 8,560 | 271,730 | ||||||
Savola Group (The)a | 135,920 | 1,334,809 | ||||||
|
| |||||||
5,054,610 | ||||||||
GAS UTILITIES — 0.23% |
| |||||||
National Gas & Industrialization Co. | 20,532 | 164,845 | ||||||
|
| |||||||
164,845 | ||||||||
HEALTH CARE PROVIDERS & SERVICES — 2.63% |
| |||||||
Al Hammadi Development and Investment Co. | 31,368 | 306,294 | ||||||
Dallah Healthcare Holding Co. | 13,979 | 421,200 | ||||||
Middle East Healthcare Co. | 14,956 | 238,120 | ||||||
Mouwasat Medical Services Co. | 12,746 | 600,306 | ||||||
National Medical Care Co.a | 12,346 | 178,427 | ||||||
Saudi Chemical Co. | 17,521 | 151,837 | ||||||
|
| |||||||
1,896,184 | ||||||||
HOTELS, RESTAURANTS & LEISURE — 1.06% |
| |||||||
Abdul Mohsen Al-Hokair Tourism and Development Co. | 16,188 | 89,308 | ||||||
Al Tayyar Travel Group Holding Co. | 54,118 | 410,831 | ||||||
Dur Hospitality Co. | 20,957 | 106,509 | ||||||
Herfy Food Services Co. | 12,729 | 158,166 | ||||||
|
| |||||||
764,814 | ||||||||
INSURANCE — 1.70% |
| |||||||
Al Rahjhi Co.a | 9,875 | 189,005 | ||||||
Bupa Arabia for Cooperative Insurance Co. | 18,960 | 403,436 |
SCHEDULESOF INVESTMENTS | 49 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SAUDI ARABIA ETF
February 28, 2018
Security | Shares | Value | ||||||
Co for Cooperative Insurance (The) | 31,811 | $ | 558,896 | |||||
Mediterranean & Gulf Insurance & Reinsurance Co. (The)a | 10,900 | 76,614 | ||||||
|
| |||||||
1,227,951 | ||||||||
MEDIA — 0.52% |
| |||||||
Saudi Research & Marketing Groupa | 18,981 | 375,338 | ||||||
|
| |||||||
375,338 | ||||||||
METALS & MINING — 4.19% |
| |||||||
Al Yamamah Steel Industries | 11,603 | 70,571 | ||||||
Saudi Arabian Mining Co.a | 208,351 | 2,835,014 | ||||||
Zamil Industrial Investment Co. | 17,134 | 117,279 | ||||||
|
| |||||||
3,022,864 | ||||||||
OIL, GAS & CONSUMABLE FUELS — 1.01% |
| |||||||
Rabigh Refining & Petrochemical Co.a | 113,565 | 724,335 | ||||||
|
| |||||||
724,335 | ||||||||
PHARMACEUTICALS — 0.34% |
| |||||||
Saudi Pharmaceutical Industries & Medical Appliances Corp. | 31,787 | 247,410 | ||||||
|
| |||||||
247,410 | ||||||||
REAL ESTATE MANAGEMENT & DEVELOPMENT — 2.54% |
| |||||||
Arriyadh Development Co. | 36,145 | 191,023 | ||||||
Dar Al Arkan Real Estate Development Co.a | 274,012 | 713,835 | ||||||
Emaar Economic Citya | 216,435 | 723,701 | ||||||
Red Sea Housing Services Co. | 13,798 | 67,991 | ||||||
Saudi Real Estate Co. | 23,931 | 137,449 | ||||||
|
| |||||||
1,833,999 | ||||||||
ROAD & RAIL — 0.43% |
| |||||||
Saudi Public Transport Co. | 34,767 | 145,731 | ||||||
United International Transportation Co. | 19,626 | 161,287 | ||||||
|
| |||||||
307,018 | ||||||||
SPECIALTY RETAIL — 1.84% |
| |||||||
Jarir Marketing Co. | 22,901 | 1,038,095 | ||||||
Saudi Co. For Hardware CJSC | 4,750 | 143,122 | ||||||
United Electronics Co. | 9,544 | 142,716 | ||||||
|
| |||||||
1,323,933 | ||||||||
WIRELESS TELECOMMUNICATION SERVICES — 1.42% |
| |||||||
Etihad Etisalat Co.a | 196,075 | 756,528 | ||||||
Mobile Telecommunications Co.a | 141,372 | 264,627 | ||||||
|
| |||||||
1,021,155 | ||||||||
|
| |||||||
TOTAL COMMON STOCKS | ||||||||
(Cost: $71,163,835) | 72,061,171 |
Security | Shares | Value | ||||||
SHORT-TERM INVESTMENTS — 0.03% |
| |||||||
MONEY MARKET FUNDS — 0.03% |
| |||||||
BlackRock Cash Funds: Treasury, | ||||||||
1.32%b,c | 25,461 | $ | 25,461 | |||||
|
| |||||||
25,461 | ||||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||||
(Cost: $25,461) | 25,461 | |||||||
|
| |||||||
TOTAL INVESTMENTS | ||||||||
(Cost: $71,189,296) | 72,086,632 | |||||||
Other Assets, Less Liabilities — (0.02)% |
| (15,041 | ) | |||||
|
| |||||||
NET ASSETS — 100.00% | $ | 72,071,591 | ||||||
|
|
a | Non-income producing security. |
b | Affiliate of the Fund. |
c | Annualized 7-day yield as of period end. |
50 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SAUDI ARABIA ETF
February 28, 2018
Affiliates (Note 2)
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows:
Affiliated issuer | Shares held at 08/31/17 | Shares purchased | Shares sold | Shares held at 02/28/18 | Value at 02/28/18 | Income | Net realized gain (loss) a | Change in unrealized appreciation (depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Treasury, | 4,706 | 20,755 b | — | 25,461 | $ | 25,461 | $ | 86 | $ | — | $ | — | ||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
a | Includes realized capital gain distributions from an affiliated fund, if any. |
b | Net of purchases and sales. |
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments |
| |||||||||||||||
Assets |
| |||||||||||||||
Common stocks | $ | 72,061,171 | $ | — | $ | — | $ | 72,061,171 | ||||||||
Money market funds | 25,461 | — | — | 25,461 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 72,086,632 | $ | — | $ | — | $ | 72,086,632 | ||||||||
|
|
|
|
|
|
|
| |||||||||
See notes to financial statements.
SCHEDULESOF INVESTMENTS | 51 |
Table of Contents
Schedule of Investments (Unaudited)
February 28, 2018
Security | Shares | Value | ||||||
COMMON STOCKS — 99.68% |
| |||||||
AIRLINES — 2.52% |
| |||||||
Air Arabia PJSC | 3,088,653 | $ | 1,101,604 | |||||
|
| |||||||
1,101,604 | ||||||||
BANKS — 21.80% |
| |||||||
Abu Dhabi Commercial Bank PJSC | 1,006,072 | 1,999,571 | ||||||
Ajman Bank PJSCa | 1,871,180 | 555,299 | ||||||
Dubai Islamic Bank PJSC | 1,117,353 | 1,843,521 | ||||||
First Abu Dhabi Bank PJSC | 1,183,698 | 3,722,270 | ||||||
Union National Bank PJSC | 1,342,320 | 1,410,680 | ||||||
|
| |||||||
9,531,341 | ||||||||
BUILDING PRODUCTS — 0.90% |
| |||||||
National Central Cooling Co. PJSC | 809,411 | 394,464 | ||||||
|
| |||||||
394,464 | ||||||||
CAPITAL MARKETS — 6.51% |
| |||||||
Amanat Holdings PJSC | 1,967,171 | 787,308 | ||||||
Dubai Financial Market PJSCa | 3,007,633 | 892,558 | ||||||
Dubai Investments PJSC | 1,939,847 | 1,167,198 | ||||||
|
| |||||||
2,847,064 | ||||||||
CONSTRUCTION & ENGINEERING — 4.65% |
| |||||||
Arabtec Holding PJSCa | 1,101,263 | 737,584 | ||||||
Drake & Scull International PJSCa | 1,131,199 | 566,685 | ||||||
Orascom Construction Ltd.a | 96,062 | 730,071 | ||||||
|
| |||||||
2,034,340 | ||||||||
DIVERSIFIED FINANCIAL SERVICES — 3.80% |
| |||||||
Al Waha Capital PJSC | 1,448,617 | 847,963 | ||||||
Gulf General Investment Co.a | 3,588,363 | 341,940 | ||||||
SHUAA Capital PSCa | 1,553,292 | 469,419 | ||||||
|
| |||||||
1,659,322 | ||||||||
DIVERSIFIED TELECOMMUNICATION SERVICES — 16.62% |
| |||||||
Emirates Telecommunications Group Co. PJSC | 1,551,868 | 7,267,218 | ||||||
|
| |||||||
7,267,218 | ||||||||
ENERGY EQUIPMENT & SERVICES — 1.27% |
| |||||||
Lamprell PLCa | 537,548 | 553,274 | ||||||
|
| |||||||
553,274 | ||||||||
FOOD PRODUCTS — 0.81% |
| |||||||
Agthia Group PJSC | 296,117 | 353,926 | ||||||
|
| |||||||
353,926 | ||||||||
HEALTH CARE PROVIDERS & SERVICES — 4.50% |
| |||||||
NMC Health PLC | 41,590 | 1,967,847 | ||||||
|
| |||||||
1,967,847 |
Security | Shares | Value | ||||||
HOTELS, RESTAURANTS & LEISURE — 1.78% |
| |||||||
DXB Entertainments PJSCa | 5,144,402 | $ | 777,343 | |||||
|
| |||||||
777,343 | ||||||||
OIL, GAS & CONSUMABLE FUELS — 2.26% |
| |||||||
Dana Gas PJSCa | 4,831,934 | 986,660 | ||||||
|
| |||||||
986,660 | ||||||||
REAL ESTATE MANAGEMENT & DEVELOPMENT — 24.16% |
| |||||||
Aldar Properties PJSC | 3,353,573 | 1,972,180 | ||||||
DAMAC Properties Dubai Co. PJSC | 2,092,917 | 1,709,457 | ||||||
Deyaar Development PJSCa | 601,088 | 86,409 | ||||||
Emaar Malls PJSC | 1,032,417 | 595,903 | ||||||
Emaar Properties PJSC | 3,044,166 | 5,113,738 | ||||||
Eshraq Properties Co. PJSCa | 2,761,493 | 548,848 | ||||||
RAK Properties PJSC | 2,400,182 | 535,850 | ||||||
|
| |||||||
10,562,385 | ||||||||
THRIFTS & MORTGAGE FINANCE — 1.04% |
| |||||||
Amlak Finance PJSCa | 1,825,328 | 452,238 | ||||||
|
| |||||||
452,238 | ||||||||
TRANSPORTATION INFRASTRUCTURE — 7.06% |
| |||||||
DP World Ltd. | 126,265 | 3,087,179 | ||||||
|
| |||||||
3,087,179 | ||||||||
|
| |||||||
TOTAL COMMON STOCKS | 43,576,205 | |||||||
SHORT-TERM INVESTMENTS — 0.05% |
| |||||||
MONEY MARKET FUNDS — 0.05% |
| |||||||
BlackRock Cash Funds: Treasury, |
| |||||||
1.32%b,c | 23,418 | 23,418 | ||||||
|
| |||||||
23,418 | ||||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS |
| 23,418 | ||||||
|
| |||||||
TOTAL INVESTMENTS |
| |||||||
(Cost: $42,030,210) |
| 43,599,623 | ||||||
Other Assets, Less Liabilities — 0.27% |
| 116,457 | ||||||
|
| |||||||
NET ASSETS — 100.00% |
| $ | 43,716,080 | |||||
|
|
a | Non-income producing security. |
b | Affiliate of the Fund. |
c | Annualized 7-day yield as of period end. |
52 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI UAE ETF
February 28, 2018
Affiliates (Note 2)
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows:
Affiliated issuer | Shares held at 08/31/17 | Shares purchased | Shares sold | Shares held at 02/28/18 | Value at 02/28/18 | Income | Net realized gain (loss) a | Change in unrealized appreciation (depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, | — | — | b | — | — | $ | — | $ | 14 | c | $ | — | $ | — | ||||||||||||||||||
BlackRock Cash Funds: Treasury, | 46,566 | — | (23,148 | )b | 23,418 | 23,418 | 277 | — | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 23,418 | $ | 291 | $ | — | $ | — | |||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
a | Includes realized capital gain distributions from an affiliated fund, if any. |
b | Net of purchases and sales. |
c | Includes the Fund’s portion of securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. |
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common stocks | $ | 43,576,205 | $ | — | $ | — | $ | 43,576,205 | ||||||||
Money market funds | 23,418 | — | — | 23,418 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 43,599,623 | $ | — | $ | — | $ | 43,599,623 | ||||||||
|
|
|
|
|
|
|
| |||||||||
See notes to financial statements.
SCHEDULESOF INVESTMENTS | 53 |
Table of Contents
Statements of Assets and Liabilities (Unaudited)
iSHARES® TRUST
February 28, 2018
iShares MSCI Argentina and Global Exposure ETF | iShares MSCI Brazil Small-Cap ETF | iShares MSCI China ETF | ||||||||||
ASSETS | ||||||||||||
Investments in securities, at cost: | ||||||||||||
Unaffiliated | $ | 59,625,360 | $ | 45,524,887 | $ | 2,615,828,745 | ||||||
Affiliated (Note 2) | 1,216,151 | 69,182 | 363,586,381 | |||||||||
|
|
|
|
|
| |||||||
Total cost of investments in securities | $ | 60,841,511 | $ | 45,594,069 | $ | 2,979,415,126 | ||||||
|
|
|
|
|
| |||||||
Investments in securities, at fair value (including securities on loana) (Note 1): | ||||||||||||
Unaffiliated | $ | 66,335,936 | $ | 81,400,760 | $ | 3,508,225,524 | ||||||
Affiliated (Note 2) | 1,216,151 | 69,182 | 363,596,821 | |||||||||
Foreign currency, at valueb | 13,999 | 34,055 | 2,808,109 | |||||||||
Foreign currency pledged to broker for futures contracts, at valueb | — | — | 308,614 | |||||||||
Receivables: | ||||||||||||
Investment securities sold | 2,792,351 | 1,131,353 | 6,745,561 | |||||||||
Due from custodian (Note 4) | 67,603 | — | — | |||||||||
Dividends and interest | 100 | 358,132 | 281,819 | |||||||||
Capital shares sold | — | — | 73,875,844 | |||||||||
|
|
|
|
|
| |||||||
Total Assets | 70,426,140 | 82,993,482 | 3,955,842,292 | |||||||||
|
|
|
|
|
| |||||||
LIABILITIES | ||||||||||||
Payables: | ||||||||||||
Investment securities purchased | 2,766,490 | 1,132,657 | 81,740,856 | |||||||||
Collateral for securities on loan (Note 1) | 1,027,500 | — | 360,861,091 | |||||||||
Capital shares redeemed | 45,863 | — | — | |||||||||
Futures variation margin | — | — | 89,676 | |||||||||
Investment advisory fees (Note 2) | 29,527 | 36,043 | 1,523,332 | |||||||||
|
|
|
|
|
| |||||||
Total Liabilities | 3,869,380 | 1,168,700 | 444,214,955 | |||||||||
|
|
|
|
|
| |||||||
NET ASSETS | $ | 66,556,760 | $ | 81,824,782 | $ | 3,511,627,337 | ||||||
|
|
|
|
|
| |||||||
Net assets consist of: | ||||||||||||
Paid-in capital | $ | 58,377,636 | $ | 96,680,423 | $ | 2,854,731,668 | ||||||
Undistributed (distributions in excess of) net investment income | 59,412 | (1,540,613 | ) | (6,830,081 | ) | |||||||
Undistributed net realized gain (accumulated net realized loss) | 1,409,158 | (49,194,007 | ) | (228,646,161 | ) | |||||||
Net unrealized appreciation | 6,710,554 | 35,878,979 | 892,371,911 | |||||||||
|
|
|
|
|
| |||||||
NET ASSETS | $ | 66,556,760 | $ | 81,824,782 | $ | 3,511,627,337 | ||||||
|
|
|
|
|
| |||||||
Shares outstandingc | 2,100,000 | 4,650,000 | 50,200,000 | |||||||||
|
|
|
|
|
| |||||||
Net asset value per share | $ | 31.69 | $ | 17.60 | $ | 69.95 | ||||||
|
|
|
|
|
|
a | Securities on loan with values of $973,772, $ — and $348,529,246, respectively. See Note 1. |
b | Cost of foreign currency including currency pledged to broker for futures contracts, if any: $13,998, $34,197 and $3,117,775, respectively. |
c | No par value, unlimited number of shares authorized. |
See notes to financial statements.
54 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Assets and Liabilities (Unaudited) (Continued)
iSHARES® TRUST
February 28, 2018
iShares MSCI China Small-Cap ETF | iShares MSCI Indonesia ETF | iShares MSCI Peru ETF | ||||||||||
ASSETS | ||||||||||||
Investments in securities, at cost: | ||||||||||||
Unaffiliated | $ | 22,818,556 | $ | 594,996,823 | $ | 212,903,992 | ||||||
Affiliated (Note 2) | 5,214,019 | 237,081 | 230,101 | |||||||||
|
|
|
|
|
| |||||||
Total cost of investments in securities | $ | 28,032,575 | $ | 595,233,904 | $ | 213,134,093 | ||||||
|
|
|
|
|
| |||||||
Investments in securities, at fair value (including securities on loana) (Note 1): |
| |||||||||||
Unaffiliated | $ | 23,337,545 | $ | 573,706,090 | $ | 187,006,506 | ||||||
Affiliated (Note 2) | 5,214,512 | 237,081 | 230,101 | |||||||||
Foreign currency, at valueb | 70,708 | 301,700 | 19,762 | |||||||||
Receivables: | ||||||||||||
Investment securities sold | 396,052 | 473,849 | 2,404,684 | |||||||||
Dividends and interest | 27,232 | 49,915 | 87 | |||||||||
|
|
|
|
|
| |||||||
Total Assets | 29,046,049 | 574,768,635 | 189,661,140 | |||||||||
|
|
|
|
|
| |||||||
LIABILITIES | ||||||||||||
Payables: | ||||||||||||
Investment securities purchased | 436,555 | 6 | 2,280,534 | |||||||||
Collateral for securities on loan (Note 1) | 5,172,001 | — | — | |||||||||
Foreign taxes (Note 1) | — | — | 199 | |||||||||
Investment advisory fees (Note 2) | 10,456 | 255,949 | 84,702 | |||||||||
|
|
|
|
|
| |||||||
Total Liabilities | 5,619,012 | 255,955 | 2,365,435 | |||||||||
|
|
|
|
|
| |||||||
NET ASSETS | $ | 23,427,037 | $ | 574,512,680 | $ | 187,295,705 | ||||||
|
|
|
|
|
| |||||||
Net assets consist of: | ||||||||||||
Paid-in capital | $ | 27,428,857 | $ | 654,973,422 | $ | 297,734,615 | ||||||
Distributions in excess of net investment income | (205,322 | ) | (1,026,872 | ) | (630,159 | ) | ||||||
Accumulated net realized loss | (4,315,969 | ) | (58,134,773 | ) | (83,911,093 | ) | ||||||
Net unrealized appreciation (depreciation) | 519,471 | (21,299,097 | ) | (25,897,658 | ) | |||||||
|
|
|
|
|
| |||||||
NET ASSETS | $ | 23,427,037 | $ | 574,512,680 | $ | 187,295,705 | ||||||
|
|
|
|
|
| |||||||
Shares outstandingc | 450,000 | 19,900,000 | 4,450,000 | |||||||||
|
|
|
|
|
| |||||||
Net asset value per share | $ | 52.06 | $ | 28.87 | $ | 42.09 | ||||||
|
|
|
|
|
|
a | Securities on loan with values of $4,754,333, $ — and $ —, respectively. See Note 1. |
b | Cost of foreign currency: $70,717, $309,525 and $19,777, respectively. |
c | No par value, unlimited number of shares authorized. |
See notes to financial statements.
FINANCIAL STATEMENTS | 55 |
Table of Contents
Statements of Assets and Liabilities (Unaudited) (Continued)
iSHARES�� TRUST
February 28, 2018
iShares MSCI Philippines ETF | iShares MSCI Poland ETF | iShares MSCI Qatar ETF | ||||||||||
ASSETS | ||||||||||||
Investments in securities, at cost: | ||||||||||||
Unaffiliated | $ | 198,324,897 | $ | 380,322,919 | $ | 51,915,725 | ||||||
Affiliated (Note 2) | 69,085 | 3,400,581 | 53,623 | |||||||||
|
|
|
|
|
| |||||||
Total cost of investments in securities | $ | 198,393,982 | $ | 383,723,500 | $ | 51,969,348 | ||||||
|
|
|
|
|
| |||||||
Investments in securities, at fair valuea (Note 1): | ||||||||||||
Unaffiliated | $ | 177,135,126 | $ | 379,637,169 | $ | 49,992,540 | ||||||
Affiliated (Note 2) | 69,085 | 3,400,641 | 53,623 | |||||||||
Foreign currency, at valueb | 1,261 | 165,922 | 329,500 | |||||||||
Cash | — | — | 121,447 | |||||||||
Receivables: | ||||||||||||
Investment securities sold | 106,544 | 503,010 | 8,630,295 | |||||||||
Due from custodian (Note 4) | — | 508,333 | — | |||||||||
Dividends and interest | 129,633 | 14,488 | 270,072 | |||||||||
|
|
|
|
|
| |||||||
Total Assets | 177,441,649 | 384,229,563 | 59,397,477 | |||||||||
|
|
|
|
|
| |||||||
LIABILITIES | ||||||||||||
Payables: | ||||||||||||
Investment securities purchased | — | 1,131,985 | 1,542,309 | |||||||||
Collateral for securities on loan (Note 1) | — | 3,114,685 | — | |||||||||
Capital shares redeemed | — | — | 7,352,942 | |||||||||
Professional fees (Note 8) | — | 33,437 | — | |||||||||
Investment advisory fees (Note 2) | 83,268 | 176,519 | 26,549 | |||||||||
|
|
|
|
|
| |||||||
Total Liabilities | 83,268 | 4,456,626 | 8,921,800 | |||||||||
|
|
|
|
|
| |||||||
NET ASSETS | $ | 177,358,381 | $ | 379,772,937 | $ | 50,475,677 | ||||||
|
|
|
|
|
| |||||||
Net assets consist of: | ||||||||||||
Paid-in capital | $ | 235,444,454 | $ | 429,441,335 | $ | 71,767,895 | ||||||
Undistributed (distributions in excess of) net investment income | (303,788 | ) | (2,753,340 | ) | 1,167,916 | |||||||
Accumulated net realized loss | (36,592,571 | ) | (46,225,537 | ) | (20,527,872 | ) | ||||||
Net unrealized depreciation | (21,189,714 | ) | (689,521 | ) | (1,932,262 | ) | ||||||
|
|
|
|
|
| |||||||
NET ASSETS | $ | 177,358,381 | $ | 379,772,937 | $ | 50,475,677 | ||||||
|
|
|
|
|
| |||||||
Shares outstandingc | 4,850,000 | 14,350,000 | 3,150,000 | |||||||||
|
|
|
|
|
| |||||||
Net asset value per share | $ | 36.57 | $ | 26.47 | $ | 16.02 | ||||||
|
|
|
|
|
|
a | Securities on loan with values of $ —, $2,735,290 and $ —, respectively. See Note 1. |
b | Cost of foreign currency: $1,280, $170,201 and $329,543, respectively. |
c | No par value, unlimited number of shares authorized. |
See notes to financial statements.
56 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Assets and Liabilities (Unaudited) (Continued)
iSHARES® TRUST
February 28, 2018
iShares MSCI Saudi Arabia ETF | iShares MSCI UAE ETF | |||||||
ASSETS | ||||||||
Investments in securities, at cost: | ||||||||
Unaffiliated | $ | 71,163,835 | $ | 42,006,792 | ||||
Affiliated (Note 2) | 25,461 | 23,418 | ||||||
|
|
|
| |||||
Total cost of investments in securities | $ | 71,189,296 | $ | 42,030,210 | ||||
|
|
|
| |||||
Investments in securities, at fair value (Note 1): | ||||||||
Unaffiliated | $ | 72,061,171 | $ | 43,576,205 | ||||
Affiliated (Note 2) | 25,461 | 23,418 | ||||||
Foreign currency, at valuea | 16,338 | 15,687 | ||||||
Receivables: |
| |||||||
Investment securities sold | 1,653,987 | 3,012,646 | ||||||
Dividends and interest | 1,575 | 91 | ||||||
Capital shares sold | 14,828,565 | — | ||||||
|
|
|
| |||||
Total Assets | 88,587,097 | 46,628,047 | ||||||
|
|
|
| |||||
LIABILITIES | ||||||||
Payables: | ||||||||
Investment securities purchased | 16,492,176 | 2,892,089 | ||||||
Investment advisory fees (Note 2) | 23,330 | 19,878 | ||||||
|
|
|
| |||||
Total Liabilities | 16,515,506 | 2,911,967 | ||||||
|
|
|
| |||||
NET ASSETS | $ | 72,071,591 | $ | 43,716,080 | ||||
|
|
|
| |||||
Net assets consist of: | ||||||||
Paid-in capital | $ | 72,063,004 | $ | 62,361,618 | ||||
Distributions in excess of net investment income | (30,362 | ) | (251,847 | ) | ||||
Accumulated net realized loss | (857,372 | ) | (19,963,064 | ) | ||||
Net unrealized appreciation | 896,321 | 1,569,373 | ||||||
|
|
|
| |||||
NET ASSETS | $ | 72,071,591 | $ | 43,716,080 | ||||
|
|
|
| |||||
Shares outstandingb | 2,700,000 | 2,600,000 | ||||||
|
|
|
| |||||
Net asset value per share | $ | 26.69 | $ | 16.81 | ||||
|
|
|
|
a | Cost of foreign currency: $16,338 and $15,721, respectively. |
b | No par value, unlimited number of shares authorized. |
See notes to financial statements.
FINANCIAL STATEMENTS | 57 |
Table of Contents
Statements of Operations (Unaudited)
iSHARES® TRUST
Six months ended February 28, 2018
iShares MSCI Argentina and Global Exposure ETF | iShares MSCI Brazil Small-Cap ETF | iShares ETF | ||||||||||
NET INVESTMENT INCOME | ||||||||||||
Dividends — unaffiliateda | $ | 368,240 | $ | 910,612 | $ | 6,630,600 | ||||||
Dividends — affiliated (Note 2) | 677 | 596 | 13,313 | |||||||||
Securities lending income — affiliated — net (Note 2) | 8 | — | 901,185 | |||||||||
|
|
|
|
|
| |||||||
Total investment income | 368,925 | 911,208 | 7,545,098 | |||||||||
|
|
|
|
|
| |||||||
EXPENSES | ||||||||||||
Investment advisory fees (Note 2) | 117,540 | 231,665 | 8,395,742 | |||||||||
Proxy fees | — | 7 | 253 | |||||||||
|
|
|
|
|
| |||||||
Total expenses | 117,540 | 231,672 | 8,395,995 | |||||||||
|
|
|
|
|
| |||||||
Net investment income (loss) | 251,385 | 679,536 | (850,897 | ) | ||||||||
|
|
|
|
|
| |||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||
Net realized gain (loss) from: | ||||||||||||
Investments — unaffiliated | (621,060 | ) | (662,169 | ) | (6,118,492 | ) | ||||||
Investments — affiliated (Note 2) | — | — | (30,838 | ) | ||||||||
In-kind redemptions — unaffiliated | 2,514,344 | — | 29,764,188 | |||||||||
Futures contracts | — | — | 589,504 | |||||||||
Foreign currency transactions | (1,616 | ) | (32,400 | ) | 21,478 | |||||||
|
|
|
|
|
| |||||||
Net realized gain (loss) | 1,891,668 | (694,569 | ) | 24,225,840 | ||||||||
|
|
|
|
|
| |||||||
Net change in unrealized appreciation/depreciation on: | ||||||||||||
Investments — unaffiliated | 6,830,073 | 8,434,688 | 326,027,991 | |||||||||
Investments — affiliated (Note 2) | — | — | (46,497 | ) | ||||||||
Futures contracts | — | — | (64,527 | ) | ||||||||
Translation of assets and liabilities in foreign currencies | (179 | ) | (54 | ) | 3,389 | |||||||
|
|
|
|
|
| |||||||
Net change in unrealized appreciation/depreciation | 6,829,894 | 8,434,634 | 325,920,356 | |||||||||
|
|
|
|
|
| |||||||
Net realized and unrealized gain | 8,721,562 | 7,740,065 | 350,146,196 | |||||||||
|
|
|
|
|
| |||||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 8,972,947 | $ | 8,419,601 | $ | 349,295,299 | ||||||
|
|
|
|
|
|
a | Net of foreign withholding tax of $16,778, $78,747 and $305,912, respectively. |
See notes to financial statements.
58 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Operations (Unaudited) (Continued)
iSHARES® TRUST
Six months ended February 28, 2018
iShares MSCI China Small-Cap ETF | iShares MSCI Indonesia | iShares MSCI Peru | ||||||||||
NET INVESTMENT INCOME | ||||||||||||
Dividends — unaffiliateda | $ | 133,060 | $ | 1,034,823 | $ | 3,480,352 | b | |||||
Dividends — affiliated (Note 2) | 201 | 1,236 | 1,358 | |||||||||
Securities lending income — affiliated — net (Note 2) | 142,146 | — | — | |||||||||
|
|
|
|
|
| |||||||
Total investment income | 275,407 | 1,036,059 | 3,481,710 | |||||||||
|
|
|
|
|
| |||||||
EXPENSES | ||||||||||||
Investment advisory fees (Note 2) | 68,169 | 1,493,415 | 580,183 | |||||||||
Proxy fees | 2 | 58 | 24 | |||||||||
|
|
|
|
|
| |||||||
Total expenses | 68,171 | 1,493,473 | 580,207 | |||||||||
|
|
|
|
|
| |||||||
Net investment income (loss) | 207,236 | (457,414 | ) | 2,901,503 | ||||||||
|
|
|
|
|
| |||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||
Net realized gain (loss) from: | ||||||||||||
Investments — unaffiliated | 553,707 | (4,560,412 | ) | (4,660,103 | ) | |||||||
Investments — affiliated (Note 2) | (337 | ) | — | — | ||||||||
In-kind redemptions — unaffiliated | — | 13,037,175 | 7,541,433 | |||||||||
Foreign currency transactions | 249 | (4,294 | ) | 2,733 | ||||||||
|
|
|
|
|
| |||||||
Net realized gain | 553,619 | 8,472,469 | 2,884,063 | |||||||||
|
|
|
|
|
| |||||||
Net change in unrealized appreciation/depreciation on: | ||||||||||||
Investments — unaffiliated | 1,249,787 | 26,567,112 | 16,502,485 | |||||||||
Investments — affiliated (Note 2) | (1,005 | ) | — | — | ||||||||
Translation of assets and liabilities in foreign currencies | 37 | (7,844 | ) | (463 | ) | |||||||
|
|
|
|
|
| |||||||
Net change in unrealized appreciation/depreciation | 1,248,819 | 26,559,268 | 16,502,022 | |||||||||
|
|
|
|
|
| |||||||
Net realized and unrealized gain | 1,802,438 | 35,031,737 | 19,386,085 | |||||||||
|
|
|
|
|
| |||||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 2,009,674 | $ | 34,574,323 | $ | 22,287,588 | ||||||
|
|
|
|
|
|
a | Net of foreign withholding tax of $425, $208,732 and $121,156, respectively. |
b | Includes $1,122,041 related to a special distribution from Credicorp Ltd. |
See notes to financial statements.
FINANCIAL STATEMENTS | 59 |
Table of Contents
Statements of Operations (Unaudited) (Continued)
iSHARES® TRUST
Six months ended February 28, 2018
MSCI Philippines | iShares MSCI Poland | iShares MSCI Qatar | ||||||||||
NET INVESTMENT INCOME | ||||||||||||
Dividends — unaffiliateda | $ | 369,898 | $ | 1,186,114 | $ | 1,322,828 | ||||||
Dividends — affiliated (Note 2) | 375 | 2,043 | 726 | |||||||||
Securities lending income — affiliated — net (Note 2) | — | 48,830 | — | |||||||||
Foreign withholding tax claims (Note 8) | — | 54,787 | — | |||||||||
|
|
|
|
|
| |||||||
Total investment income | 370,273 | 1,291,774 | 1,323,554 | |||||||||
|
|
|
|
|
| |||||||
EXPENSES | ||||||||||||
Investment advisory fees (Note 2) | 537,245 | 1,084,678 | 153,990 | |||||||||
Proxy fees | 21 | 32 | 5 | |||||||||
|
|
|
|
|
| |||||||
Total expenses | 537,266 | 1,084,710 | 153,995 | |||||||||
|
|
|
|
|
| |||||||
Net investment income (loss) | (166,993 | ) | 207,064 | 1,169,559 | ||||||||
|
|
|
|
|
| |||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||
Net realized gain (loss) from: | ||||||||||||
Investments — unaffiliated | (3,522,572 | ) | (3,794,549 | ) | (6,682,648 | ) | ||||||
Investments — affiliated (Note 2) | — | 401 | — | |||||||||
In-kind redemptions — unaffiliated | 2,226,266 | 10,468,922 | — | |||||||||
Foreign currency transactions | (11,085 | ) | 44,735 | 339,336 | ||||||||
|
|
|
|
|
| |||||||
Net realized gain (loss) | (1,307,391 | ) | 6,719,509 | (6,343,312 | ) | |||||||
|
|
|
|
|
| |||||||
Net change in unrealized appreciation/depreciation on: | ||||||||||||
Investments — unaffiliated | 3,778,045 | (14,014,516 | ) | 4,853,028 | ||||||||
Investments — affiliated (Note 2) | — | (1,534 | ) | — | ||||||||
Translation of assets and liabilities in foreign currencies | 1,170 | (8,659 | ) | (9,340 | ) | |||||||
|
|
|
|
|
| |||||||
Net change in unrealized appreciation/depreciation | 3,779,215 | (14,024,709 | ) | 4,843,688 | ||||||||
|
|
|
|
|
| |||||||
Net realized and unrealized gain (loss) | 2,471,824 | (7,305,200 | ) | (1,499,624 | ) | |||||||
|
|
|
|
|
| |||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | 2,304,831 | $ | (7,098,136 | ) | $ | (330,065 | ) | ||||
|
|
|
|
|
|
a | Net of foreign withholding tax of $158,527, $207,582 and $ —, respectively. |
See notes to financial statements.
60 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Operations (Unaudited) (Continued)
iSHARES® TRUST
Six months ended February 28, 2018
iShares MSCI Saudi Arabia ETF | iShares MSCI UAE | |||||||
NET INVESTMENT INCOME |
| |||||||
Dividends — unaffiliateda | $ | 46,317 | $ | 378,304 | ||||
Dividends — affiliated (Note 2) | 86 | 277 | ||||||
Securities lending income — affiliated — net (Note 2) | — | 14 | ||||||
|
|
|
| |||||
Total investment income | 46,403 | 378,595 | ||||||
|
|
|
| |||||
EXPENSES |
| |||||||
Investment advisory fees (Note 2) | 76,764 | 133,347 | ||||||
Proxy fees | 1 | 5 | ||||||
|
|
|
| |||||
Total expenses | 76,765 | 133,352 | ||||||
|
|
|
| |||||
Net investment income (loss) | (30,362 | ) | 245,243 | |||||
|
|
|
| |||||
NET REALIZED AND UNREALIZED GAIN (LOSS) |
| |||||||
Net realized gain (loss) from: |
| |||||||
Investments — unaffiliated | (582,714 | ) | (1,087,640 | ) | ||||
In-kind redemptions — unaffiliated | — | 336,790 | ||||||
Foreign currency transactions | (2,350 | ) | (1,260 | ) | ||||
|
|
|
| |||||
Net realized loss | (585,064 | ) | (752,110 | ) | ||||
|
|
|
| |||||
Net change in unrealized appreciation/depreciation on: |
| |||||||
Investments — unaffiliated | 263,963 | (1,535,917 | ) | |||||
Translation of assets and liabilities in foreign currencies | (1,015 | ) | (29 | ) | ||||
|
|
|
| |||||
Net change in unrealized appreciation/depreciation | 262,948 | (1,535,946 | ) | |||||
|
|
|
| |||||
Net realized and unrealized loss | (322,116 | ) | (2,288,056 | ) | ||||
|
|
|
| |||||
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | (352,478 | ) | $ | (2,042,813 | ) | ||
|
|
|
|
a | Net of foreign withholding tax of $1,521 and $ —, respectively. |
See notes to financial statements.
FINANCIAL STATEMENTS | 61 |
Table of Contents
Statements of Changes in Net Assets
iSHARES® TRUST
iShares MSCI Argentina and Global Exposure ETF | iShares MSCI Brazil Small-Cap ETF | |||||||||||||||
Six months February 28, 2018 (Unaudited) | Period from to August 31, 2017 | Six months February 28, 2018 (Unaudited) | Year ended August 31, 2017 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS |
| |||||||||||||||
OPERATIONS: |
| |||||||||||||||
Net investment income | $ | 251,385 | $ | 14,080 | $ | 679,536 | $ | 1,425,731 | ||||||||
Net realized gain (loss) | 1,891,668 | 124,641 | (694,569 | ) | (2,172,827 | ) | ||||||||||
Net change in unrealized appreciation/depreciation | 6,829,894 | (119,340 | ) | 8,434,634 | 18,264,062 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase in net assets resulting from operations | 8,972,947 | 19,381 | 8,419,601 | 17,516,966 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: |
| |||||||||||||||
From net investment income | (617,274 | ) | (6,820 | ) | (2,076,501 | ) | (1,601,858 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions to shareholders | (617,274 | ) | (6,820 | ) | (2,076,501 | ) | (1,601,858 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL SHARE TRANSACTIONS: |
| |||||||||||||||
Proceeds from shares sold | 54,610,349 | 20,526,410 | 28,354,077 | 16,706,722 | ||||||||||||
Cost of shares redeemed | (11,837,098 | ) | (5,111,135 | ) | (15,188,045 | ) | (20,393,245 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets from | 42,773,251 | 15,415,275 | 13,166,032 | (3,686,523 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
INCREASE IN NET ASSETS | 51,128,924 | 15,427,836 | 19,509,132 | 12,228,585 | ||||||||||||
NET ASSETS |
| |||||||||||||||
Beginning of period | 15,427,836 | — | 62,315,650 | 50,087,065 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 66,556,760 | $ | 15,427,836 | $ | 81,824,782 | $ | 62,315,650 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed (distributions in excess of) net investment income included in net assets at end of period | $ | 59,412 | $ | 425,301 | $ | (1,540,613 | ) | $ | (143,648 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
SHARES ISSUED AND REDEEMED | ||||||||||||||||
Shares sold | 1,900,000 | 800,000 | 1,700,000 | 1,200,000 | ||||||||||||
Shares redeemed | (400,000 | ) | (200,000 | ) | (900,000 | ) | (1,700,000 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in shares outstanding | 1,500,000 | 600,000 | 800,000 | (500,000 | ) | |||||||||||
|
|
|
|
|
|
|
|
a | Commencement of operations. |
See notes to financial statements.
62 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Changes in Net Assets (Continued)
iSHARES® TRUST
iShares MSCI China ETF | iShares MSCI China Small-Cap ETF | |||||||||||||||
Six months February 28, 2018 (Unaudited) | Year ended August 31, 2017 | Six months February 28, 2018 (Unaudited) | Year ended August 31, 2017 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income (loss) | $ | (850,897 | ) | $ | 39,529,675 | $ | 207,236 | $ | 547,798 | |||||||
Net realized gain (loss) | 24,225,840 | 95,349,842 | 553,619 | (8,693 | ) | |||||||||||
Net change in unrealized appreciation/depreciation | 325,920,356 | 561,209,656 | 1,248,819 | 2,355,521 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase in net assets resulting from operations | 349,295,299 | 696,089,173 | 2,009,674 | 2,894,626 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
From net investment income | (34,165,634 | ) | (29,342,450 | ) | (407,473 | ) | (775,895 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions to shareholders | (34,165,634 | ) | (29,342,450 | ) | (407,473 | ) | (775,895 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Proceeds from shares sold | 688,576,233 | 312,129,183 | — | — | ||||||||||||
Cost of shares redeemed | (86,325,847 | ) | (484,619,997 | ) | — | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets from capital share transactions | 602,250,386 | (172,490,814 | ) | — | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
INCREASE IN NET ASSETS | 917,380,051 | 494,255,909 | 1,602,201 | 2,118,731 | ||||||||||||
NET ASSETS | ||||||||||||||||
Beginning of period | 2,594,247,286 | 2,099,991,377 | 21,824,836 | 19,706,105 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 3,511,627,337 | $ | 2,594,247,286 | $ | 23,427,037 | $ | 21,824,836 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed (distributions in excess of) net investment income included in net assets at end of period | $ | (6,830,081 | ) | $ | 28,186,450 | $ | (205,322 | ) | $ | (5,085 | ) | |||||
|
|
|
|
|
|
|
| |||||||||
SHARES ISSUED AND REDEEMED | ||||||||||||||||
Shares sold | 9,800,000 | 6,400,000 | — | — | ||||||||||||
Shares redeemed | (1,400,000 | ) | (9,400,000 | ) | — | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in shares outstanding | 8,400,000 | (3,000,000 | ) | — | — | |||||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
FINANCIAL STATEMENTS | 63 |
Table of Contents
Statements of Changes in Net Assets (Continued)
iSHARES® TRUST
iShares MSCI Indonesia ETF | iShares MSCI Peru ETF | |||||||||||||||
Six months February 28, 2018 (Unaudited) | Year ended August 31, 2017 | Six months February 28, 2018 (Unaudited) | Year ended August 31, 2017 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income (loss) | $ | (457,414 | ) | $ | 6,447,082 | $ | 2,901,503 | $ | 2,879,571 | |||||||
Net realized gain | 8,472,469 | 26,227,900 | 2,884,063 | 12,558,330 | ||||||||||||
Net change in unrealized appreciation/depreciation | 26,559,268 | (15,948,389 | ) | 16,502,022 | 12,198,581 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase in net assets resulting from operations | 34,574,323 | 16,726,593 | 22,287,588 | 27,636,482 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
From net investment income | (522,568 | ) | (6,469,991 | ) | (3,321,676 | ) | (3,701,557 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions to shareholders | (522,568 | ) | (6,469,991 | ) | (3,321,676 | ) | (3,701,557 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Proceeds from shares sold | 116,806,646 | 158,333,457 | 51,121,040 | 35,886,517 | ||||||||||||
Cost of shares redeemed | (77,756,808 | ) | (369,376,936 | ) | (53,585,137 | ) | (107,053,238 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets from capital share transactions | 39,049,838 | (211,043,479 | ) | (2,464,097 | ) | (71,166,721 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
INCREASE (DECREASE) IN NET ASSETS | 73,101,593 | (200,786,877 | ) | 16,501,815 | (47,231,796 | ) | ||||||||||
NET ASSETS | ||||||||||||||||
Beginning of period | 501,411,087 | 702,197,964 | 170,793,890 | 218,025,686 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 574,512,680 | $ | 501,411,087 | $ | 187,295,705 | $ | 170,793,890 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Distributions in excess of net investment income included in net assets at end of period | $ | (1,026,872 | ) | $ | (46,890 | ) | $ | (630,159 | ) | $ | (209,986 | ) | ||||
|
|
|
|
|
|
|
| |||||||||
SHARES ISSUED AND REDEEMED | ||||||||||||||||
Shares sold | 4,050,000 | 6,150,000 | 1,250,000 | 1,050,000 | ||||||||||||
Shares redeemed | (2,800,000 | ) | (14,700,000 | ) | (1,350,000 | ) | (3,150,000 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in shares outstanding | 1,250,000 | (8,550,000 | ) | (100,000 | ) | (2,100,000 | ) | |||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
64 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Changes in Net Assets (Continued)
iSHARES® TRUST
iShares MSCI Philippines ETF | iShares MSCI Poland ETF | |||||||||||||||
Six months February 28, 2018 | Year ended August 31, 2017 | Six months February 28, 2018 | Year ended August 31, 2017 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income (loss) | $ | (166,993 | ) | $ | 763,935 | $ | 207,064 | $ | 5,059,900 | |||||||
Net realized gain (loss) | (1,307,391 | ) | (10,354,631 | ) | 6,719,509 | 558,728 | ||||||||||
Net change in unrealized appreciation/depreciation | 3,779,215 | (13,321,244 | ) | (14,024,709 | ) | 107,313,862 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | 2,304,831 | (22,911,940 | ) | (7,098,136 | ) | 112,932,490 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
From net investment income | (119,258 | ) | (1,008,827 | ) | (5,709,504 | ) | (4,649,179 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions to shareholders | (119,258 | ) | (1,008,827 | ) | (5,709,504 | ) | (4,649,179 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Proceeds from shares sold | 21,579,344 | 60,308,205 | 61,600,243 | 170,932,433 | ||||||||||||
Cost of shares redeemed | (18,651,353 | ) | (181,545,734 | ) | (32,556,346 | ) | (95,416,457 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets from capital share transactions | 2,927,991 | (121,237,529 | ) | 29,043,897 | 75,515,976 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
INCREASE (DECREASE) IN NET ASSETS | 5,113,564 | (145,158,296 | ) | 16,236,257 | 183,799,287 | |||||||||||
NET ASSETS | ||||||||||||||||
Beginning of period | 172,244,817 | 317,403,113 | 363,536,680 | 179,737,393 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 177,358,381 | $ | 172,244,817 | $ | 379,772,937 | $ | 363,536,680 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed (distributions in excess of) net investment income included in net assets at end of period | $ | (303,788 | ) | $ | (17,537 | ) | $ | (2,753,340 | ) | $ | 2,749,100 | |||||
|
|
|
|
|
|
|
| |||||||||
SHARES ISSUED AND REDEEMED | ||||||||||||||||
Shares sold | 550,000 | 1,750,000 | 2,250,000 | 8,250,000 | ||||||||||||
Shares redeemed | (500,000 | ) | (5,050,000 | ) | (1,200,000 | ) | (4,900,000 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in shares outstanding | 50,000 | (3,300,000 | ) | 1,050,000 | 3,350,000 | |||||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
FINANCIAL STATEMENTS | 65 |
Table of Contents
Statements of Changes in Net Assets (Continued)
iSHARES® TRUST
iShares MSCI Qatar ETF | iShares MSCI Saudi Arabia ETF | |||||||||||||||
Six months February 28, 2018 | Year ended August 31, 2017 | Six months ended February 28, 2018 | Year ended August 31, 2017 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income (loss) | $ | 1,169,559 | $ | 1,398,476 | $ | (30,362 | ) | $ | 307,335 | |||||||
Net realized loss | (6,343,312 | ) | (5,212,857 | ) | (585,064 | ) | (106,386 | ) | ||||||||
Net change in unrealized appreciation/depreciation | 4,843,688 | (4,434,875 | ) | 262,948 | 1,176,934 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | (330,065 | ) | (8,249,256 | ) | (352,478 | ) | 1,377,883 | |||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
From net investment income | (2,919 | ) | (1,458,378 | ) | (188,633 | ) | (169,819 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions to shareholders | (2,919 | ) | (1,458,378 | ) | (188,633 | ) | (169,819 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Proceeds from shares sold | 17,200,233 | 19,964,765 | 58,087,897 | 12,793,748 | ||||||||||||
Cost of shares redeemed | (15,781,672 | ) | (14,353,080 | ) | (3,781,570 | ) | — | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase in net assets from capital share transactions | 1,418,561 | 5,611,685 | 54,306,327 | 12,793,748 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
INCREASE (DECREASE) IN NET ASSETS | 1,085,577 | (4,095,949 | ) | 53,765,216 | 14,001,812 | |||||||||||
NET ASSETS | ||||||||||||||||
Beginning of period | 49,390,100 | 53,486,049 | 18,306,375 | 4,304,563 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 50,475,677 | $ | 49,390,100 | $ | 72,071,591 | $ | 18,306,375 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed (distributions in excess of) net investment income included in net assets at end of period | $ | 1,167,916 | $ | 1,276 | $ | (30,362 | ) | $ | 188,633 | |||||||
|
|
|
|
|
|
|
| |||||||||
SHARES ISSUED AND REDEEMED | ||||||||||||||||
Shares sold | 1,100,000 | 1,150,000 | 2,150,000 | 500,000 | ||||||||||||
Shares redeemed | (1,000,000 | ) | (750,000 | ) | (150,000 | ) | — | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase in shares outstanding | 100,000 | 400,000 | 2,000,000 | 500,000 | ||||||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
66 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Changes in Net Assets (Continued)
iSHARES® TRUST
iShares MSCI UAE ETF | ||||||||
Six months ended February 28, 2018 | Year ended August 31, 2017 | |||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||
OPERATIONS: | ||||||||
Net investment income | $ | 245,243 | $ | 1,279,728 | ||||
Net realized loss | (752,110 | ) | (2,334,985 | ) | ||||
Net change in unrealized appreciation/depreciation | (1,535,946 | ) | 4,117,334 | |||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | (2,042,813 | ) | 3,062,077 | |||||
|
|
|
| |||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||
From net investment income | (256,183 | ) | (1,550,737 | ) | ||||
|
|
|
| |||||
Total distributions to shareholders | (256,183 | ) | (1,550,737 | ) | ||||
|
|
|
| |||||
CAPITAL SHARE TRANSACTIONS: | ||||||||
Proceeds from shares sold | 4,255,574 | 11,974,524 | ||||||
Cost of shares redeemed | (7,903,705 | ) | (4,978,554 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in net assets from capital share transactions | (3,648,131 | ) | 6,995,970 | |||||
|
|
|
| |||||
INCREASE (DECREASE) IN NET ASSETS | (5,947,127 | ) | 8,507,310 | |||||
NET ASSETS | ||||||||
Beginning of period | 49,663,207 | 41,155,897 | ||||||
|
|
|
| |||||
End of period | $ | 43,716,080 | $ | 49,663,207 | ||||
|
|
|
| |||||
Distributions in excess of net investment income included in net assets at end of period | $ | (251,847 | ) | $ | (240,907 | ) | ||
|
|
|
| |||||
SHARES ISSUED AND REDEEMED | ||||||||
Shares sold | 250,000 | 700,000 | ||||||
Shares redeemed | (450,000 | ) | (300,000 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (200,000 | ) | 400,000 | |||||
|
|
|
|
See notes to financial statements.
FINANCIAL STATEMENTS | 67 |
Table of Contents
iSHARES® TRUST
(For a share outstanding throughout each period)
iShares MSCI Argentina and Global Exposure ETF |
Six months ended Feb. 28, 2018 (Unaudited) | Period from to | |||||||
Net asset value, beginning of period | $ | 25.71 | $ | 25.23 | ||||
|
|
|
| |||||
Income from investment operations: | ||||||||
Net investment incomeb | 0.19 | 0.03 | ||||||
Net realized and unrealized gainc | 6.12 | 0.46 | ||||||
|
|
|
| |||||
Total from investment operations | 6.31 | 0.49 | ||||||
|
|
|
| |||||
Less distributions from: | ||||||||
Net investment income | (0.33 | ) | (0.01 | ) | ||||
|
|
|
| |||||
Total distributions | (0.33 | ) | (0.01 | ) | ||||
|
|
|
| |||||
Net asset value, end of period | $ | 31.69 | $ | 25.71 | ||||
|
|
|
| |||||
Total return | 24.56 | %d | 2.00 | %d | ||||
|
|
|
| |||||
Ratios/Supplemental data: | ||||||||
Net assets, end of period (000s) | $ | 66,557 | $ | 15,428 | ||||
Ratio of expenses to average net assetse | 0.59 | % | 0.59 | % | ||||
Ratio of net investment income to average net assetse | 1.26 | % | 0.34 | % | ||||
Portfolio turnover ratef | 19 | %d | 17 | %d |
a | Commencement of operations. |
b | Based on average shares outstanding throughout each period. |
c | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
d | Not annualized. |
e | Annualized for periods of less than one year. |
f | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
68 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Financial Highlights (Continued)
iSHARES® TRUST
(For a share outstanding throughout each period)
iShares MSCI Brazil Small-Cap ETF | ||||||||||||||||||||||||
Six months ended Feb. 28, 2018 (Unaudited) | Year ended Aug. 31, 2017 | Year ended Aug. 31, 2016 | Year ended Aug. 31, 2015 | Year ended Aug. 31, 2014 | Year ended Aug. 31, 2013 | |||||||||||||||||||
Net asset value, beginning of period | $ | 16.19 | $ | 11.51 | $ | 8.12 | $ | 21.00 | $ | 19.78 | $ | 25.65 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.14 | 0.36 | 0.24 | 0.37 | 0.47 | 0.32 | ||||||||||||||||||
Net realized and unrealized gain (loss)b | 1.66 | 4.74 | 3.35 | (12.85 | ) | 1.13 | (5.59 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 1.80 | 5.10 | 3.59 | (12.48 | ) | 1.60 | (5.27 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.39 | ) | (0.42 | ) | (0.20 | ) | (0.40 | ) | (0.38 | ) | (0.43 | ) | ||||||||||||
Return of capital | — | — | — | (0.00 | )c | — | (0.17 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | (0.39 | ) | (0.42 | ) | (0.20 | ) | (0.40 | ) | (0.38 | ) | (0.60 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 17.60 | $ | 16.19 | $ | 11.51 | $ | 8.12 | $ | 21.00 | $ | 19.78 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total return | 11.44 | %d | 45.92 | % | 45.17 | % | (60.01 | )% | 8.18 | % | (21.00 | )% | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 81,825 | $ | 62,316 | $ | 50,087 | $ | 27,189 | $ | 40,951 | $ | 34,608 | ||||||||||||
Ratio of expenses to average net assetse | 0.59 | % | 0.62 | % | 0.63 | % | 0.62 | % | 0.62 | % | 0.61 | % | ||||||||||||
Ratio of net investment income to average net assetse | 1.74 | % | 2.76 | % | 2.77 | % | 2.87 | % | 2.36 | % | 1.25 | % | ||||||||||||
Portfolio turnover ratef | 29 | %d | 58 | % | 38 | % | 172 | % | 40 | % | 51 | % |
a | Based on average shares outstanding throughout each period. |
b | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
c | Rounds to less than $0.01. |
d | Not annualized. |
e | Annualized for periods of less than one year. |
f | Portfolio turnover rates include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units solely for cash in U.S. dollars. Excluding such transactions, the portfolio turnover rates for the six months ended February 28, 2018, the years ended August 31, 2017, August 31, 2016, August 31, 2015, August 31, 2014 and August 31, 2013 were 8%, 26%, 28%, 39%, 35%, and 39%, respectively. See Note 4. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 69 |
Table of Contents
Financial Highlights (Continued)
iSHARES® TRUST
(For a share outstanding throughout each period)
iShares MSCI China ETF | ||||||||||||||||||||||||
Six months ended Feb. 28, 2018 (Unaudited) | Year ended Aug. 31, 2017 | Year ended Aug. 31, 2016 | Year ended Aug. 31, 2015 | Year ended Aug. 31, 2014 | Year ended Aug. 31, 2013 | |||||||||||||||||||
Net asset value, beginning of period | $ | 62.06 | $ | 46.87 | $ | 44.49 | $ | 50.34 | $ | 43.90 | $ | 39.68 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)a | (0.02 | ) | 0.86 | 0.97 | 1.41 | 1.15 | 1.36 | |||||||||||||||||
Net realized and unrealized gain (loss)b | 8.76 | 14.94 | 2.34 | (6.21 | ) | 6.24 | 3.88 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 8.74 | 15.80 | 3.31 | (4.80 | ) | 7.39 | 5.24 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.85 | ) | (0.61 | ) | (0.93 | ) | (1.05 | ) | (0.95 | ) | (1.02 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | (0.85 | ) | (0.61 | ) | (0.93 | ) | (1.05 | ) | (0.95 | ) | (1.02 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 69.95 | $ | 62.06 | $ | 46.87 | $ | 44.49 | $ | 50.34 | $ | 43.90 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total return | 14.17 | %c | 34.13 | % | 7.63 | % | (9.86 | )% | 17.03 | % | 13.40 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 3,511,627 | $ | 2,594,247 | $ | 2,099,991 | $ | 1,815,303 | $ | 1,132,558 | $ | 856,075 | ||||||||||||
Ratio of expenses to average net assetsd | 0.59 | % | 0.62 | % | 0.64 | % | 0.62 | % | 0.62 | % | 0.61 | % | ||||||||||||
Ratio of net investment income (loss) to average net assetsd | (0.06 | )% | 1.70 | % | 2.24 | % | 2.65 | % | 2.48 | % | 3.02 | % | ||||||||||||
Portfolio turnover ratee | 3 | %c | 6 | % | 27 | % | 14 | % | 7 | % | 10 | % |
a | Based on average shares outstanding throughout each period. |
b | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | Portfolio turnover rates exclude portfolio securities received or delivered in Creation Units but include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units partially for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the six months ended February 28, 2018, the years ended August 31, 2017, August 31, 2016, August 31, 2015 and August 31, 2014 were 3%, 6%, 27%, 14% and 7%, respectively. See Note 4. |
See notes to financial statements.
70 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Financial Highlights (Continued)
iSHARES® TRUST
(For a share outstanding throughout each period)
iShares MSCI China Small-Cap ETF | ||||||||||||||||||||||||
Six months ended Feb. 28, 2018 (Unaudited) | Year ended Aug. 31, 2017 | Year ended Aug. 31, 2016 | Year ended Aug. 31, 2015 | Year ended Aug. 31, 2014 | Year ended Aug. 31, 2013 | |||||||||||||||||||
Net asset value, beginning of period | $ | 48.50 | $ | 43.79 | $ | 41.08 | $ | 48.30 | $ | 41.98 | $ | 32.15 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.46 | 1.22 | 1.25 | 1.24 | 1.09 | 1.07 | ||||||||||||||||||
Net realized and unrealized gain (loss)b | 4.01 | 5.21 | 2.99 | (7.18 | ) | 6.55 | 9.87 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 4.47 | 6.43 | 4.24 | (5.94 | ) | 7.64 | 10.94 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.91 | ) | (1.72 | ) | (1.53 | ) | (1.28 | ) | (1.32 | ) | (1.11 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | (0.91 | ) | (1.72 | ) | (1.53 | ) | (1.28 | ) | (1.32 | ) | (1.11 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 52.06 | $ | 48.50 | $ | 43.79 | $ | 41.08 | $ | 48.30 | $ | 41.98 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total return | 9.33 | %c | 15.29 | % | 10.50 | % | (12.94 | )% | 18.46 | % | 34.30 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 23,427 | $ | 21,825 | $ | 19,706 | $ | 24,646 | $ | 33,808 | $ | 31,487 | ||||||||||||
Ratio of expenses to average net assetsd | 0.59 | % | 0.62 | % | 0.64 | % | 0.62 | % | 0.62 | % | 0.61 | % | ||||||||||||
Ratio of net investment income to average net assetsd | 1.80 | % | 2.72 | % | 2.95 | % | 2.44 | % | 2.38 | % | 2.60 | % | ||||||||||||
Portfolio turnover ratee | 16 | %c | 26 | % | 31 | % | 35 | % | 33 | % | 27 | % |
a | Based on average shares outstanding throughout each period. |
b | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | Portfolio turnover rates exclude portfolio securities received or delivered in Creation Units but include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units partially for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for six months ended February 28, 2018, the years ended August 31, 2017, August 31, 2016, August 31, 2015, August 31, 2014 and August 31, 2013 were 16%, 26%, 31%, 32%, 33% and 27%, respectively. See Note 4. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 71 |
Table of Contents
Financial Highlights (Continued)
iSHARES® TRUST
(For a share outstanding throughout each period)
iShares MSCI Indonesia ETF | ||||||||||||||||||||||||
Six months ended Feb. 28, 2018 (Unaudited) | Year ended Aug. 31, 2017 | Year ended Aug. 31, 2016 | Year ended Aug. 31, 2015 | Year ended Aug. 31, 2014 | Year ended Aug. 31, 2013 | |||||||||||||||||||
Net asset value, beginning of period | $ | 26.89 | $ | 25.82 | $ | 20.18 | $ | 28.54 | $ | 24.78 | $ | 28.49 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)a | (0.02 | ) | 0.31 | 0.34 | 0.31 | 0.37 | 0.53 | |||||||||||||||||
Net realized and unrealized gain (loss)b | 2.03 | 1.11 | 5.59 | (8.29 | ) | 3.75 | (3.77 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 2.01 | 1.42 | 5.93 | (7.98 | ) | 4.12 | (3.24 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.03 | ) | (0.35 | ) | (0.27 | ) | (0.38 | ) | (0.36 | ) | (0.47 | ) | ||||||||||||
Return of capital | — | — | (0.02 | ) | — | — | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | (0.03 | ) | (0.35 | ) | (0.29 | ) | (0.38 | ) | (0.36 | ) | (0.47 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 28.87 | $ | 26.89 | $ | 25.82 | $ | 20.18 | $ | 28.54 | $ | 24.78 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total return | 7.48 | %c | 5.53 | % | 29.59 | % | (28.13 | )% | 16.79 | % | (11.67 | )% | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 574,513 | $ | 501,411 | $ | 702,198 | $ | 268,381 | $ | 576,411 | $ | 392,769 | ||||||||||||
Ratio of expenses to average net assetsd | 0.59 | % | 0.62 | % | 0.63 | % | 0.62 | % | 0.62 | % | 0.61 | % | ||||||||||||
Ratio of net investment income (loss) to average net assetsd | (0.18 | )% | 1.22 | % | 1.47 | % | 1.16 | % | 1.41 | % | 1.67 | % | ||||||||||||
Portfolio turnover ratee | 2 | %c | 6 | % | 5 | % | 4 | % | 8 | % | 15 | % |
a | Based on average shares outstanding throughout each period. |
b | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
72 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Financial Highlights (Continued)
iSHARES® TRUST
(For a share outstanding throughout each period)
iShares MSCI Peru ETF | ||||||||||||||||||||||||
Six months ended Feb. 28, 2018 (Unaudited) | Year ended Aug. 31, 2017 | Year ended Aug. 31, 2016 | Year ended Aug. 31, 2015 | Year ended Aug. 31, 2014 | Year ended Aug. 31, 2013 | |||||||||||||||||||
Net asset value, beginning of period | $ | 37.54 | $ | 32.79 | $ | 23.09 | $ | 36.60 | $ | 33.90 | $ | 41.33 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.60 | b | 0.46 | 0.33 | 0.36 | 0.45 | 0.94 | |||||||||||||||||
Net realized and unrealized gain (loss)c | 4.70 | 4.99 | 9.73 | (13.48 | ) | 2.73 | (7.07 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 5.30 | 5.45 | 10.06 | (13.12 | ) | 3.18 | (6.13 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.75 | ) | (0.70 | ) | (0.36 | ) | (0.39 | ) | (0.48 | ) | (1.30 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | (0.75 | ) | (0.70 | ) | (0.36 | ) | (0.39 | ) | (0.48 | ) | (1.30 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 42.09 | $ | 37.54 | $ | 32.79 | $ | 23.09 | $ | 36.60 | $ | 33.90 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total return | 14.29 | %d | 16.89 | % | 44.13 | % | (36.15 | )% | 9.50 | % | (15.36 | )% | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 187,296 | $ | 170,794 | $ | 218,026 | $ | 131,595 | $ | 252,539 | $ | 313,565 | ||||||||||||
Ratio of expenses to average net assetse | 0.59 | % | 0.62 | % | 0.63 | % | 0.61 | % | 0.51 | % | 0.51 | % | ||||||||||||
Ratio of expenses to average net assets prior to waived feese | n/a | n/a | n/a | 0.62 | % | 0.62 | % | 0.61 | % | |||||||||||||||
Ratio of net investment income to average net assetse | 2.96 | %b | 1.37 | % | 1.23 | % | 1.15 | % | 1.33 | % | 2.24 | % | ||||||||||||
Portfolio turnover ratef | 6 | %d | 13 | % | 22 | % | 21 | % | 13 | % | 11 | % |
a | Based on average shares outstanding throughout each period. |
b | Includes a special distribution from Credicorp Ltd. Excluding such special distribution, the net investment income would have been $0.37 per share and 1.82% of average net assets. |
c | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
d | Not annualized. |
e | Annualized for periods of less than one year. |
f | Portfolio turnover rates exclude portfolio securities received or delivered in Creation Units but include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units partially for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the six months ended February 28, 2018, the years ended August 31, 2017 and August 31, 2016 were 6%, 12% and 22%, respectively. See Note 4. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 73 |
Table of Contents
Financial Highlights (Continued)
iSHARES® TRUST
(For a share outstanding throughout each period)
iShares MSCI Philippines ETF | ||||||||||||||||||||||||
Six months ended Feb. 28, 2018 (Unaudited) | Year ended Aug. 31, 2017 | Year ended Aug. 31, 2016 | Year ended Aug. 31, 2015 | Year ended Aug. 31, 2014 | Year ended Aug. 31, 2013 | |||||||||||||||||||
Net asset value, beginning of period | $ | 35.88 | $ | 39.19 | $ | 35.50 | $ | 38.19 | $ | 31.93 | $ | 29.37 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)a | (0.03 | ) | 0.15 | 0.21 | 0.34 | 0.35 | 0.42 | |||||||||||||||||
Net realized and unrealized gain (loss)b | 0.75 | (3.26 | ) | 3.74 | (2.70 | ) | 6.22 | 2.47 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 0.72 | (3.11 | ) | 3.95 | (2.36 | ) | 6.57 | 2.89 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.03 | ) | (0.20 | ) | (0.26 | ) | (0.33 | ) | (0.31 | ) | (0.33 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | (0.03 | ) | (0.20 | ) | (0.26 | ) | (0.33 | ) | (0.31 | ) | (0.33 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 36.57 | $ | 35.88 | $ | 39.19 | $ | 35.50 | $ | 38.19 | $ | 31.93 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total return | 1.96 | %d | (7.87 | )% | 11.19 | % | (6.21 | )% | 20.53 | %c | 9.81 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 177,358 | $ | 172,245 | $ | 317,403 | $ | 266,273 | $ | 351,313 | $ | 277,824 | ||||||||||||
Ratio of expenses to average net assetse | 0.59 | % | 0.62 | % | 0.64 | % | 0.62 | % | 0.62 | % | 0.61 | % | ||||||||||||
Ratio of net investment income (loss) to average net assetse | (0.18 | )% | 0.42 | % | 0.58 | % | 0.85 | % | 1.02 | % | 1.14 | % | ||||||||||||
Portfolio turnover ratef | 5 | %d | 7 | % | 10 | % | 12 | % | 24 | % | 23 | % |
a | Based on average shares outstanding throughout each period. |
b | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
c | The total return disclosed is based on the net asset value (“NAV”) calculated daily for the creation and redemption of shares in the Fund, which may differ from the NAV calculated for financial reporting purposes. Based on the NAV calculated for financial reporting purposes, the total return for the Fund was 20.63%. |
d | Not annualized. |
e | Annualized for periods of less than one year. |
f | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
74 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Financial Highlights (Continued)
iSHARES® TRUST
(For a share outstanding throughout each period)
iShares MSCI Poland ETF | ||||||||||||||||||||||||
Six months ended Feb. 28, 2018 (Unaudited) | Year ended Aug. 31, 2017 | Year ended Aug. 31, 2016 | Year ended Aug. 31, 2015 | Year ended Aug. 31, 2014 | Year ended Aug. 31, 2013 | |||||||||||||||||||
Net asset value, beginning of period | $ | 27.33 | $ | 18.06 | $ | 21.63 | $ | 28.02 | $ | 27.12 | $ | 24.31 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.02 | 0.45 | b | 0.42 | 0.65 | 0.84 | 0.74 | |||||||||||||||||
Net realized and unrealized gain (loss)c | (0.45 | ) | 9.25 | (3.70 | ) | (6.25 | ) | 1.04 | 2.94 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | (0.43 | ) | 9.70 | (3.28 | ) | (5.60 | ) | 1.88 | 3.68 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.43 | ) | (0.43 | ) | (0.29 | ) | (0.79 | ) | (0.98 | ) | (0.87 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | (0.43 | ) | (0.43 | ) | (0.29 | ) | (0.79 | ) | (0.98 | ) | (0.87 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 26.47 | $ | 27.33 | $ | 18.06 | $ | 21.63 | $ | 28.02 | $ | 27.12 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total return | (1.58 | )%d | 54.79 | %b | (15.17 | )% | (20.31 | )% | 6.82 | % | 15.13 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 379,773 | $ | 363,537 | $ | 179,737 | $ | 193,567 | $ | 297,056 | $ | 277,933 | ||||||||||||
Ratio of expenses to average net assetse | 0.59 | % | 0.63 | % | 0.64 | % | 0.62 | % | 0.62 | % | 0.61 | % | ||||||||||||
Ratio of expenses to average net assets excluding professional fees for foreign withholding tax claims (Note 8) | n/a | 0.62 | % | n/a | n/a | n/a | n/a | |||||||||||||||||
Ratio of net investment income to average net assetse | 0.11 | % | 2.07 | %b | 2.24 | % | 2.60 | % | 2.83 | % | 2.73 | % | ||||||||||||
Portfolio turnover ratef | 4 | %d | 6 | % | 10 | % | 17 | % | 10 | % | 21 | % |
a | Based on average shares outstanding throughout each period. |
b | Reflects the positive effect of foreign withholding tax claims, net of the associated professional fees (See Note 8), which resulted in the following increases for the year ended August 31, 2017: |
• | Net investment income per share by $0.03 |
• | Total return by 0.11% |
• | Ratio of net investment income to average net assets by 0.14% |
c | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
d | Not annualized. |
e | Annualized for periods of less than one year. |
f | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 75 |
Table of Contents
Financial Highlights (Continued)
iSHARES® TRUST
(For a share outstanding throughout each period)
iShares MSCI Qatar ETF | ||||||||||||||||||||||||
Six months ended Feb. 28, 2018 (Unaudited) | Year ended Aug. 31, 2017 | Year ended Aug. 31, 2016 | Period from to | Year ended Jul. 31, 2015 | Period from to Jul. 31, 2014 | |||||||||||||||||||
Net asset value, beginning of period | $ | 16.19 | $ | 20.18 | $ | 21.43 | $ | 22.14 | $ | 24.73 | $ | 24.26 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)c | 0.35 | 0.57 | 0.67 | (0.01 | ) | 0.70 | (0.02 | ) | ||||||||||||||||
Net realized and unrealized gain (loss)d | (0.52 | ) | (3.90 | ) | (1.24 | ) | (0.70 | ) | (2.44 | ) | 0.49 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | (0.17 | ) | (3.33 | ) | (0.57 | ) | (0.71 | ) | (1.74 | ) | 0.47 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.00 | )e | (0.66 | ) | (0.66 | ) | — | (0.85 | ) | — | ||||||||||||||
Return of capital | — | — | (0.02 | ) | — | — | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | (0.00 | )e | (0.66 | ) | (0.68 | ) | — | (0.85 | ) | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 16.02 | $ | 16.19 | $ | 20.18 | $ | 21.43 | $ | 22.14 | $ | 24.73 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total return | (0.98 | )%f | (16.52 | )% | (2.32 | )% | (3.21 | )%f | (7.10 | )% | 1.94 | %f | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 50,476 | $ | 49,390 | $ | 53,486 | $ | 45,000 | $ | 47,590 | $ | 35,853 | ||||||||||||
Ratio of expenses to average net assetsg | 0.59 | % | 0.62 | % | 0.64 | % | 0.63 | % | 0.62 | % | 0.61 | % | ||||||||||||
Ratio of net investment income (loss) to average net assetsg | 4.49 | % | 3.05 | % | 3.44 | % | (0.63 | )% | 2.94 | % | (0.34 | )% | ||||||||||||
Portfolio turnover rateh | 38 | %f | 47 | % | 29 | % | 5 | %f | 85 | % | 11 | %f |
a | The Fund’s fiscal year-end was changed from July 31 to August 31. |
b | Commencement of operations. |
c | Based on average shares outstanding throughout each period. |
d | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
e | Rounds to less than $0.01. |
f | Not annualized. |
g | Annualized for periods of less than one year. |
h | Portfolio turnover rates include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units solely for cash in U.S. dollars. Excluding such transactions, the portfolio turnover rates for the six months ended February 28, 2018, the years ended August 31, 2017, August 31, 2016, the period ended August 31, 2015, the year ended July 31, 2015 and the period ended July 31, 2014 were 9%, 20%, 12%, 2%, 37% and 0%, respectively. See Note 4. |
See notes to financial statements.
76 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Financial Highlights (Continued)
iSHARES® TRUST
(For a share outstanding throughout each period)
iShares MSCI Saudi Arabia ETF | ||||||||||||
Six months ended Feb. 28, 2018 (Unaudited) | Year ended Aug. 31, 2017 | Period from to | ||||||||||
Net asset value, beginning of period | $ | 26.15 | $ | 21.52 | $ | 24.92 | ||||||
|
|
|
|
|
| |||||||
Income from investment operations: | ||||||||||||
Net investment income (loss)b | (0.04 | ) | 0.91 | 0.81 | ||||||||
Net realized and unrealized gain (loss)c | 0.92 | 4.24 | (3.69 | ) | ||||||||
|
|
|
|
|
| |||||||
Total from investment operations | 0.88 | 5.15 | (2.88 | ) | ||||||||
|
|
|
|
|
| |||||||
Less distributions from: | ||||||||||||
Net investment income | (0.34 | ) | (0.52 | ) | (0.52 | ) | ||||||
|
|
|
|
|
| |||||||
Total distributions | (0.34 | ) | (0.52 | ) | (0.52 | ) | ||||||
|
|
|
|
|
| |||||||
Net asset value, end of period | $ | 26.69 | $ | 26.15 | $ | 21.52 | ||||||
|
|
|
|
|
| |||||||
Total return | 3.47 | %d | 24.06 | % | (11.64 | )%d | ||||||
|
|
|
|
|
| |||||||
Ratios/Supplemental data: | ||||||||||||
Net assets, end of period (000s) | $ | 72,072 | $ | 18,306 | $ | 4,305 | ||||||
Ratio of expenses to average net assetse | 0.74 | % | 0.74 | % | 0.74 | % | ||||||
Ratio of net investment income (loss) to average net assetse | (0.29 | )% | 3.68 | % | 3.71 | % | ||||||
Portfolio turnover ratef | 22 | %d | 21 | % | 17 | %d |
a | Commencement of operations. |
b | Based on average shares outstanding throughout each period. |
c | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
d | Not annualized. |
e | Annualized for periods of less than one year. |
f | Portfolio turnover rates include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units solely for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the six months ended February 28, 2018, the year ended August 31, 2017 and the period ended August 31, 2016 were 7%, 21% and 17%, respectively. See Note 4. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 77 |
Table of Contents
Financial Highlights (Continued)
iSHARES® TRUST
(For a share outstanding throughout each period)
iShares MSCI UAE ETF | ||||||||||||||||||||||||
Six months ended Feb. 28, 2018 (Unaudited) | Year ended Aug. 31, 2017 | Year ended Aug. 31, 2016 | Period from to | Year ended Jul. 31, 2015 | Period from to Jul. 31, 2014 | |||||||||||||||||||
Net asset value, beginning of period | $ | 17.74 | $ | 17.15 | $ | 18.34 | $ | 20.46 | $ | 24.00 | $ | 25.04 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)c | 0.09 | 0.50 | 0.68 | d | (0.01 | ) | 1.01 | 0.01 | ||||||||||||||||
Net realized and unrealized gain (loss)e | (0.92 | ) | 0.72 | (1.19 | ) | (2.11 | ) | (3.56 | ) | (1.01 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | (0.83 | ) | 1.22 | (0.51 | ) | (2.12 | ) | (2.55 | ) | (1.00 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.10 | ) | (0.63 | ) | (0.68 | ) | — | (0.99 | ) | (0.04 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | (0.10 | ) | (0.63 | ) | (0.68 | ) | — | (0.99 | ) | (0.04 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 16.81 | $ | 17.74 | $ | 17.15 | $ | 18.34 | $ | 20.46 | $ | 24.00 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total return | (4.61 | )%f | 7.33 | % | (2.66 | )% | (10.36 | )%f | (10.33 | )% | (4.00 | )%f | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 43,716 | $ | 49,663 | $ | 41,156 | $ | 31,172 | $ | 33,756 | $ | 51,610 | ||||||||||||
Ratio of expenses to average net assetsg | 0.59 | % | 0.62 | % | 0.64 | % | 0.63 | % | 0.62 | % | 0.62 | % | ||||||||||||
Ratio of net investment income (loss) to average net assetsg | 1.09 | % | 2.94 | % | 4.09 | %d | (0.76 | )% | 4.81 | % | 0.19 | % | ||||||||||||
Portfolio turnover rateh | 18 | %f | 33 | % | 55 | % | 1 | %f | 72 | % | 22 | %f |
a | The Fund’s fiscal year-end was changed from July 31 to August 31. |
b | Commencement of operations. |
c | Based on average shares outstanding throughout each period. |
d | Includes a special distribution from Mediclinic International PLC. Excluding such special distribution, the net investment income would have been $0.52 per share and 3.11% of average net assets. |
e | The amount reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
f | Not annualized. |
g | Annualized for periods of less than one year. |
h | Portfolio turnover rates include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units solely for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the six months ended February 28, 2018, the year ended August 31, 2017, August 31, 2016, the period ended August 31, 2015, the year ended July 31, 2015 and the period ended July 31, 2014 were 10%, 23%, 29%, 1%, 38% and 1%, respectively. See Note 4. |
See notes to financial statements.
78 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited)
iSHARES® TRUST
iShares Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust was established as a Delaware statutory trust pursuant to an Agreement and Declaration of Trust dated December 16, 1999.
These financial statements relate only to the following funds (each, a “Fund,” and collectively, the “Funds”):
iShares ETF | Former Name | Diversification Classification | ||||
MSCI Argentina and Global Exposure | N/A | Non-diversified | ||||
MSCI Brazil Small-Cap | N/A | Diversified | ||||
MSCI China | N/A | Non-diversified | ||||
MSCI China Small-Cap | N/A | Diversified | ||||
MSCI Indonesia | N/A | Non-diversified | ||||
MSCI Peru | iShares MSCI All Peru Capped ETF | Non-diversified | ||||
MSCI Philippines | N/A | Non-diversified | ||||
MSCI Poland | iShares MSCI Poland Capped ETF | Non-diversified | ||||
MSCI Qatar | iShares MSCI Qatar Capped ETF | Non-diversified | ||||
MSCI Saudi Arabia | iShares MSCI Saudi Arabia Capped ETF | Non-diversified | ||||
MSCI UAE | iShares MSCI UAE Capped Capped ETF | Non-diversified |
The investment objective of each Fund is to seek investment results that correspond generally to the price and yield performance, before fees and expenses, of its underlying index. The investment adviser uses a “passive” or index approach to try to achieve each Fund’s investment objective.
Pursuant to the Trust’s organizational documents, the Funds’ officers and trustees are indemnified against certain liabilities that may arise out of the performance of their duties to the Funds. Additionally, in the normal course of business, the Funds enter into contracts with service providers that contain general indemnification clauses. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred.
1. | SIGNIFICANT ACCOUNTING POLICIES |
The following significant accounting policies are consistently followed by each Fund in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies.
SECURITY VALUATION
Each Fund’s investments are valued at fair value each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date should the reporting period end on a day that the Fund’s listing exchange is not open. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation
NOTESTO FINANCIAL STATEMENTS | 79 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
Committee”) provides oversight of the valuation of investments for the Funds. The investments of each Fund are valued pursuant to policies and procedures developed by the Global Valuation Committee and approved by the Board of Trustees of the Trust (the “Board”).
• | Equity investments traded on a recognized securities exchange are valued at that day’s last reported trade price or the official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price. |
• | Open-end U.S. mutual funds (including money market funds) are valued at that day’s published net asset value (“NAV”). |
• | Futures contract notional values are determined based on that day’s last reported settlement price on the exchange where the contract is traded. |
In the event that application of these methods of valuation results in a price for an investment which is deemed not to be representative of the fair value of such investment or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board. The fair valuation approaches that may be utilized by the Global Valuation Committee to determine fair value include market approach, income approach and the cost approach. The valuation techniques used under these approaches take into consideration inputs that include but are not limited to (i) attributes specific to the investment; (ii) the principal market for the investment; (iii) the customary participants in the principal market for the investment; (iv) data assumptions by market participants for the investment, if reasonably available; (v) quoted prices for similar investments in active markets; and (vi) other inputs, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates. Valuations based on such inputs are reported to the Board on a quarterly basis.
The Global Valuation Committee employs various methods for calibrating valuation approaches for investments where an active market does not exist, including regular due diligence of the Trust’s pricing vendors, a regular review of key inputs and assumptions, transactional back-testing or disposition analysis to compare unrealized gains and losses to realized gains and losses, reviews of missing or stale prices, reviews of large movements in market values, and reviews of market related activity.
Fair value pricing could result in a difference between the prices used to calculate a Fund’s NAV and the prices used by the Fund’s underlying index, which in turn could result in a difference between the Fund’s performance and the performance of the Fund’s underlying index.
Various inputs are used in determining the fair value of financial instruments. Inputs may be based on independent market data (“observable inputs”) or they may be internally developed (“unobservable inputs”). These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:
• | Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities; |
• | Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability (such as exchange rates, financing terms, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and |
• | Level 3 — Unobservable inputs for the asset or liability based on the best information available in the circumstances, to the extent observable inputs are not available, including the Global Valuation Committee’s assumptions used in determining the fair value of investments. |
80 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgement exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value hierarchy for each Fund’s investments is included in its schedule of investments.
Changes in valuation techniques may result in transfers in or out of an assigned level within the fair value hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of values determined for financial instruments are based on the pricing transparency of the financial instruments and are not necessarily an indication of the risks associated with investing in those securities.
SECURITY TRANSACTIONS AND INCOME RECOGNITION
Security transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recognized on the ex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities as of February 28, 2018 are reflected in tax reclaims receivable. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be re-designated as a return of capital or capital gain. Non-cash dividends, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Distributions received by the Funds may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. Interest income is accrued daily.
FOREIGN CURRENCY TRANSLATION
The accounting records of the Funds are maintained in U.S. dollars. Foreign currencies, as well as investment securities and other assets and liabilities denominated in foreign currencies, are translated into U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of securities, income receipts and expense payments are translated into U.S. dollars on the respective dates of such transactions.
Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of securities. Such fluctuations are reflected by the Funds as a component of realized and unrealized gains and losses from investments for financial reporting purposes. Each Fund reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes.
FOREIGN TAXES
The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Funds invest. These foreign taxes, if any, are paid by the Funds and are reflected in their statements of operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of February 28, 2018, if any, are disclosed in the Funds’ statements of assets and liabilities.
NOTESTO FINANCIAL STATEMENTS | 81 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
DISTRIBUTIONS TO SHAREHOLDERS
Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds.
LOANS OF PORTFOLIO SECURITIES
Each Fund may lend its investment securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by an approved bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Funds. Any additional required collateral is delivered to the Funds and any excess collateral is returned by the Funds on the next business day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.
Cash received as collateral for securities on loan may be reinvested in certain short-term instruments either directly on behalf of a fund or through one or more joint accounts or money market funds, including those managed by BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, or its affiliates. As of February 28, 2018, any securities on loan were collateralized by cash and/or U.S. government obligations. Cash collateral received was invested in money market funds managed by BFA and is disclosed in the schedules of investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan for each Fund are also disclosed in its schedule of investments. The total value of any securities on loan as of February 28, 2018 and the total value of the related cash collateral are disclosed in the statements of assets and liabilities. Income earned by the Funds from securities lending is disclosed in the statements of operations.
The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Funds benefit from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of securities loaned if the collateral received does not cover the value of the securities loaned in the event of borrower default. Each Fund could incur a loss if the value of an investment purchased with cash collateral falls below the value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received.
Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (“MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, a Fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. The value of the collateral is typically greater than that of the market value of the securities loaned, leaving the lender with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, the borrower can resell or re-pledge the loaned securities, and a Fund can reinvest cash collateral, or, upon an event of default, resell or re-pledge the collateral.
82 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
The following table is a summary of securities lending agreements which are subject to offset under an MSLA as of February 28, 2018:
iShares ETF and Counterparty | Market Value of Securities on Loan | Cash Collateral Received a | Net Amount b | |||||||||
MSCI Argentina and Global Exposure | ||||||||||||
Credit Suisse Securities (USA) LLC | $ | 892,331 | $ | 880,900 | $ | (11,431 | ) | |||||
Merrill Lynch, Pierce, Fenner & Smith | 81,441 | 81,441 | — | |||||||||
|
|
|
|
|
| |||||||
$ | 973,772 | $ | 962,341 | $ | (11,431 | ) | ||||||
|
|
|
|
|
| |||||||
MSCI China | ||||||||||||
Citigroup Global Markets Inc. | $ | 571,224 | $ | 571,224 | $ | — | ||||||
Credit Suisse Securities (USA) LLC | 609,122 | 609,122 | — | |||||||||
Deutsche Bank Securities Inc. | 712,989 | 712,989 | — | |||||||||
Goldman Sachs & Co. | 31,217,839 | 31,217,839 | — | |||||||||
HSBC Bank PLC | 360,469 | 360,469 | — | |||||||||
Jefferies LLC | 32,978 | 32,978 | — | |||||||||
JPMorgan Securities LLC | 207,081,041 | 207,081,041 | — | |||||||||
Macquarie Bank Limited | 33,725 | 33,725 | — | |||||||||
Merrill Lynch, Pierce, Fenner & Smith | 166,592 | 166,592 | — | |||||||||
Morgan Stanley & Co. LLC | 3,543,058 | 3,543,058 | — | |||||||||
State Street Bank & Trust Company | 102,891,076 | 102,891,076 | — | |||||||||
UBS AG | 1,309,133 | 1,309,133 | — | |||||||||
|
|
|
|
|
| |||||||
$ | 348,529,246 | $ | 348,529,246 | $ | — | |||||||
|
|
|
|
|
| |||||||
MSCI China Small-Cap | ||||||||||||
Barclays Capital Inc. | $ | 72,060 | $ | 72,060 | $ | — | ||||||
Citigroup Global Markets Inc. | 151,034 | 151,034 | — | |||||||||
Credit Suisse Securities (USA) LLC | 880,251 | 880,251 | — | |||||||||
Deutsche Bank Securities Inc. | 244,720 | 244,720 | — | |||||||||
Goldman Sachs & Co. | 275,414 | 275,414 | — | |||||||||
JPMorgan Securities LLC | 1,014,429 | 1,014,429 | — | |||||||||
Macquarie Bank Limited | 8,795 | 8,795 | — | |||||||||
Merrill Lynch, Pierce, Fenner & Smith | 747,069 | 747,069 | — | |||||||||
Morgan Stanley & Co. LLC | 642,300 | 642,300 | — | |||||||||
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending) | 42,795 | 42,795 | — | |||||||||
Nomura Securities International Inc. | 42,043 | 42,043 | — | |||||||||
Scotia Capital (USA) Inc. | 83,946 | 83,946 | — | |||||||||
SG Americas Securities LLC | 108,286 | 108,286 | — | |||||||||
State Street Bank & Trust Company | 103,288 | 103,288 | — | |||||||||
UBS AG | 307,552 | 307,552 | — | |||||||||
UBS Securities LLC | 30,351 | 30,351 | — | |||||||||
|
|
|
|
|
| |||||||
$ | 4,754,333 | $ | 4,754,333 | $ | — | |||||||
|
|
|
|
|
|
NOTESTO FINANCIAL STATEMENTS | 83 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
iShares ETF and Counterparty | Market Value of Securities on Loan | Cash Collateral Received a | Net Amount b | |||||||||
MSCI Poland | ||||||||||||
Barclays Capital Inc. | $ | 411,819 | $ | 411,819 | $ | — | ||||||
Deutsche Bank Securities Inc. | 477,389 | 477,389 | — | |||||||||
Morgan Stanley & Co. LLC | 1,846,082 | 1,846,082 | — | |||||||||
|
|
|
|
|
| |||||||
$ | 2,735,290 | $ | 2,735,290 | $ | — | |||||||
|
|
|
|
|
| |||||||
a | Collateral received in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Fund’s statement of assets and liabilities. |
b | Additional collateral is delivered to the Funds on the next business day in accordance with the MSLA. The net amount would be subject to the borrower default indemnity in the event of default by a counterparty. |
2. | INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES |
Pursuant to an Investment Advisory Agreement with the Trust, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent trustees).
For its investment advisory services to each of the iShares MSCI Brazil Small-Cap, iShares MSCI China, iShares MSCI China Small-Cap, iShares MSCI Indonesia, iShares MSCI Peru, iShares MSCI Philippines, iShares MSCI Poland, iShares MSCI Qatar and iShares MSCI UAE ETFs, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, based on each Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:
Investment Advisory Fee | Aggregate Average Daily Net Assets | ||||
0.74 | % | First $2 billion | |||
0.69 | Over $2 billion, up to and including $4 billion | ||||
0.64 | Over $4 billion, up to and including $8 billion | ||||
0.57 | Over $8 billion, up to and including $16 billion | ||||
0.51 | Over $16 billion, up to and including $24 billion | ||||
0.48 | Over $24 billion, up to and including $32 billion | ||||
0.45 | Over $32 billion |
For its investment advisory services to each of the following Funds, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, based on the average daily net assets of each Fund as follows:
iShares ETF | Investment Advisory Fee | |||
MSCI Argentina and Global Exposure | 0.59 | % | ||
MSCI Saudi Arabia | 0.74 |
84 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
The U.S. Securities and Exchange Commission has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan in a money market fund managed by BFA, however, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04% (the “collateral investment fees”). Securities lending income is equal to the total of income earned from the reinvestment of cash collateral (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. The Funds retain a portion of securities lending income and remit the remaining portion to BTC as compensation for its services as securities lending agent.
Pursuant to a securities lending agreement, each Fund retains 80% of securities lending income and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees. In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in a given calendar year exceeds the aggregate securities lending income generated across the iShares ETF Complex in the calendar year 2013, each Fund, pursuant to a securities lending agreement, will retain for the remainder of that calendar year 85% of securities lending income and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
For the six months ended February 28, 2018, the total of securities lending agent services and collateral investment fees paid were as follows:
iShares ETF | Fees Paid to BTC | |||
MSCI Argentina and Global Exposure | $ | 3 | ||
MSCI China | 246,846 | |||
MSCI China Small-Cap | 30,137 | |||
MSCI Poland | 10,168 | |||
MSCI UAE | 4 |
BlackRock Investments, LLC, an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.
Cross trading is the buying or selling of portfolio securities between funds to which BFA (or an affiliate) serves as investment adviser. At its regularly scheduled quarterly meetings, the Board reviews such transactions as of the most recent calendar quarter for compliance with the requirements and restrictions set forth by Rule 17a-7.
For the six months ended February 28, 2018, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:
iShares ETF | Purchases | Sales | ||||||
MSCI Argentina and Global Exposure | $ | 1,425,813 | $ | 205,917 | ||||
MSCI China | 9,345,993 | 17,412,129 | ||||||
MSCI China Small-Cap | 566,991 | 1,713,325 | ||||||
MSCI Poland | 1,423,013 | 1,639,893 |
NOTESTO FINANCIAL STATEMENTS | 85 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is included in “Dividends – affiliated” in the statements of operations.
The PNC Financial Services Group, Inc. is the largest stockholder of BlackRock and is considered to be an affiliate of the Funds for 1940 Act purposes.
Certain trustees and officers of the Trust are also officers of BTC and/or BFA.
3. | INVESTMENT PORTFOLIO TRANSACTIONS |
Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the six months ended February 28, 2018 were as follows:
iShares ETF | Purchases | Sales | ||||||
MSCI Argentina and Global Exposure | $ | 11,875,638 | $ | 7,884,201 | ||||
MSCI Brazil Small-Cap | 34,409,924 | 22,801,779 | ||||||
MSCI China | 571,611,563 | 83,964,482 | ||||||
MSCI China Small-Cap | 3,758,388 | 3,933,232 | ||||||
MSCI Indonesia | 9,521,378 | 10,734,605 | ||||||
MSCI Peru | 12,271,770 | 10,933,182 | ||||||
MSCI Philippines | 9,013,994 | 8,867,893 | ||||||
MSCI Poland | 13,970,274 | 13,650,163 | ||||||
MSCI Qatar | 22,225,146 | 19,807,017 | ||||||
MSCI Saudi Arabia | 59,906,072 | 5,820,409 | ||||||
MSCI UAE | 8,166,199 | 11,724,032 |
In-kind transactions (see Note 4) for the six months ended February 28, 2018 were as follows:
iShares ETF | In-kind Purchases | In-kind Sales | ||||||
MSCI Argentina and Global Exposure | $ | 49,408,903 | $ | 11,120,989 | ||||
MSCI China | 173,611,692 | 85,746,614 | ||||||
MSCI Indonesia | 116,306,843 | 77,369,427 | ||||||
MSCI Peru | 47,638,872 | 52,176,949 | ||||||
MSCI Philippines | 21,557,451 | 18,604,335 | ||||||
MSCI Poland | 55,988,374 | 32,491,458 | ||||||
MSCI UAE | 277,109 | 489,924 |
4. | CAPITAL SHARE TRANSACTIONS |
Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable. Transactions in capital shares for each Fund are disclosed in detail in the statements of changes in net assets.
The consideration for the purchase of Creation Units of a fund in the Trust generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Trust may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee
86 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
and a redemption transaction fee directly to State Street Bank and Trust Company, the Trust’s administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in “Proceeds from shares sold” in the statements of changes in net assets.
From time to time, settlement of securities related to in-kind contributions or in-kind redemptions may be delayed. In such cases, securities related to in-kind contributions are reflected as “Due from custodian” and securities related to in-kind redemptions are reflected as “Securities related to in-kind transactions” in the statements of assets and liabilities.
5. | FUTURES CONTRACTS |
The Fund’s use of futures contracts is generally limited to cash equitization. This involves the use of available cash to invest in index futures contracts in order to gain exposure to the equity markets represented in or by the Fund’s underlying index and is intended to allow the Fund to better track its underlying index. Futures contracts are standardized, exchange-traded agreements to buy or sell a financial instrument at a set price on a future date. Upon entering into a futures contract, a fund is required to pledge to the executing broker which holds segregated from its own assets, an amount of cash, U.S. government securities or other high-quality debt and equity securities equal to the minimum initial margin requirements of the exchange on which the contract is traded.
Pursuant to the contract, the fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract. Such receipts or payments are known as margin variation and are recorded by the fund as unrealized appreciation or depreciation. When the contract is closed, the fund records a realized gain or loss equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. Losses may arise if the notional value of a futures contract decreases due to an unfavorable change in the market rates or values of the underlying instrument during the term of the contract or if the counterparty does not perform under the contract. The use of futures contracts also involves the risk of an imperfect correlation in the movements in the price of futures contracts and the assets underlying such contracts.
The following table shows the value of futures contracts held by the iShares MSCI China ETF as of February 28, 2018 and the related locations in the statements of assets and liabilities, presented by risk exposure category:
Liabilities | ||||
Futures contracts: | ||||
Variation margin / Net assets consist of – net unrealized appreciationa | $ | 34,256 | ||
|
| |||
a | Represents cumulative depreciation of futures contracts as reported in the schedule of investments. Only current day’s variation margin is reported separately within the statement of assets and liabilities. |
NOTESTO FINANCIAL STATEMENTS | 87 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
The following table shows the realized and unrealized gains (losses) on futures contracts held by the iShares MSCI China ETF during the six months ended February 28, 2018 and the related locations in the statements of operations, presented by risk exposure category:
Net Realized Gain (Loss) | Net Change in Unrealized Appreciation/Depreciation | |||||||
Futures contracts | $ | 589,504 | $ | (64,527 | ) | |||
|
|
|
| |||||
The following table shows the average quarter-end balances of open futures contracts for the iShares MSCI China ETF for the six months ended February 28, 2018:
Average notional value of contracts purchased | $ | 2,817,678 |
6. | PRINCIPAL RISKS |
In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Each Fund’s prospectus provides details of the risks to which the Fund is subject.
BFA uses a “passive” or index approach to try to achieve each Fund’s investment objective following the securities included in its underlying index during upturns as well as downturns. BFA does not take steps to reduce market exposure or to lessen the effects of a declining market. Divergence from the underlying index and the composition of the portfolio is monitored by BFA.
MARKET RISK
Market risk arises mainly from uncertainty about future values of financial instruments influenced by price, currency and interest rate movements. It represents the potential loss a fund may suffer through holding market positions in the face of market movements. A fund is exposed to market risk by its investment in equity, fixed income and/or financial derivative instruments or by its investment in underlying funds. The fair value of securities held by a fund may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. The extent of a fund’s exposure to market risk is the market value of the investments held as shown in the fund’s schedule of investments.
A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its schedule of investments.
Investing in the securities of non-U.S. issuers involves certain considerations and risks not typically associated with securities of U.S. issuers. Such risks include, but are not limited to: differences in accounting, auditing and financial reporting standards; more substantial governmental involvement in the economy; higher inflation rates, greater social, economic and political uncertainties; possible nationalization or expropriation of assets; less availability of public information about issuers; imposition of withholding or other taxes; higher transaction and custody costs and delays in settlement procedures; and lower level of regulation of the
88 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
securities markets and issuers. Non-U.S. securities may be less liquid, more difficult to value, and have greater price volatility due to exchange rate fluctuations. These and other risks are heightened for investments in issuers from countries with less developed capital markets.
When a fund concentrates its investments in issuers located in a single country, it assumes the risk that economic, political and social conditions in that country may have a significant impact on its investment performance.
CREDIT RISK
Credit risk is the risk that an issuer or guarantor of debt instruments or the counterparty to a financial transaction, including derivatives contracts, repurchase agreements or loans of portfolio securities, is unable or unwilling to make timely interest and/or principal payments or to otherwise honor its obligations. BFA and its affiliates manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose a fund to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of a fund’s exposure to credit and counterparty risks with respect to those financial assets is approximated by their value recorded in its statement of assets and liabilities.
7. | INCOME TAX INFORMATION |
Each Fund is treated as an entity separate from the Trust’s other funds for federal income tax purposes. It is the policy of each Fund to qualify as a regulated investment company by complying with the provisions applicable to regulated investment companies, as defined under Subchapter M of the Internal Revenue Code of 1986, as amended, and to annually distribute substantially all of its ordinary income and any net capital gains (taking into account any capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income and excise taxes. Accordingly, no provision for federal income taxes is required.
For purposes of U.S. GAAP, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or NAV per share.
The tax character of current year distributions will be determined at the end of the current fiscal year.
NOTESTO FINANCIAL STATEMENTS | 89 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
As of August 31, 2017, the Funds’ fiscal year-end, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:
iShares ETF | Non- Expiring a | Expiring 2019 | Total | |||||||||
MSCI Argentina and Global Exposure | $ | 7,706 | $ | — | $ | 7,706 | ||||||
MSCI Brazil Small-Cap | 41,539,751 | — | 41,539,751 | |||||||||
MSCI China | 195,451,853 | — | 195,451,853 | |||||||||
MSCI China Small-Cap | 4,446,803 | — | 4,446,803 | |||||||||
MSCI Indonesia | 60,273,859 | 20,329 | 60,294,188 | |||||||||
MSCI Peru | 76,077,364 | 481,024 | 76,558,388 | |||||||||
MSCI Philippines | 34,129,389 | — | 34,129,389 | |||||||||
MSCI Poland | 38,643,165 | 5 | 38,643,170 | |||||||||
MSCI Qatar | 8,614,500 | — | 8,614,500 | |||||||||
MSCI Saudi Arabia | 186,869 | — | 186,869 | |||||||||
MSCI UAE | 11,910,059 | — | 11,910,059 |
a | Must be utilized prior to losses subject to expiration. |
The Funds may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” The Funds may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.
As of February 28, 2018, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives) for U.S. federal income tax purposes were as follows:
iShares ETF | Tax Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||
MSCI Argentina and Global Exposure | $ | 61,316,315 | $ | 7,273,229 | $ | (1,037,457 | ) | $ | 6,235,772 | |||||||
MSCI Brazil Small-Cap | 54,634,300 | 36,300,314 | (9,464,672 | ) | 26,835,642 | |||||||||||
MSCI China | 3,040,036,602 | 1,020,168,263 | (188,416,776 | ) | 831,751,487 | |||||||||||
MSCI China Small-Cap | 28,635,605 | 5,448,431 | (5,531,979 | ) | (83,548 | ) | ||||||||||
MSCI Indonesia | 601,593,848 | 58,027,836 | (85,678,513 | ) | (27,650,677 | ) | ||||||||||
MSCI Peru | 223,800,654 | 20,895,134 | (57,459,181 | ) | (36,564,047 | ) | ||||||||||
MSCI Philippines | 199,549,773 | 10,743,455 | (33,089,017 | ) | (22,345,562 | ) | ||||||||||
MSCI Poland | 400,985,784 | 33,137,065 | (51,085,039 | ) | (17,947,974 | ) | ||||||||||
MSCI Qatar | 57,541,052 | 751,955 | (8,246,844 | ) | (7,494,889 | ) | ||||||||||
MSCI Saudi Arabia | 71,274,735 | 1,853,404 | (1,041,507 | ) | 811,897 | |||||||||||
MSCI UAE | 49,828,195 | 4,486,821 | (10,715,393 | ) | (6,228,572 | ) |
Management has analyzed tax laws and regulations and their application to the Funds as of February 28, 2018, inclusive of the open tax return years, and does not believe there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.
90 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
8. | FOREIGN WITHHOLDING TAX CLAIMS |
The iShares MSCI Poland ETF has filed claims to recover taxes withheld by Poland on dividend income on the basis that Poland had purportedly violated certain provisions in the Treaty on the Functioning of the European Union. The Fund has received payments on certain of the claims resulting from a favorable court ruling that the imposition of a withholding tax by a European Union member state on dividends paid to a nonresident company, including the Fund, while exempting domestic funds from such taxes results in discriminatory tax withholding contrary to the free movement of capital. The Fund continues to evaluate developments in Poland for potential impacts to the receivables and payables recorded. Polish withholding tax claims received are disclosed in the statement of operations. Professional fees associated with the filing of tax claims in Poland that result in the recovery of foreign withholding taxes have been approved by the Board as appropriate expenses of the Fund.
The Internal Revenue Service has issued guidance to address U.S. income tax liabilities attributable to fund shareholders resulting from the recovery of foreign taxes withheld in prior years. These withheld foreign taxes were passed through to shareholders in the form of foreign tax credits in the year the taxes were withheld. Assuming there are sufficient foreign taxes paid which the Fund is able to pass through to its shareholders as a foreign tax credit in the current year, the Fund will be able to offset the prior years’ withholding taxes recovered against the foreign taxes paid in the current year. Accordingly, no federal income tax liability is recorded by the Fund.
9. | LEGAL PROCEEDINGS |
On June 16, 2016, investors (the “Plaintiffs”) in certain iShares funds (iShares Core S&P Small-Cap ETF, iShares Russell 1000 Growth ETF, iShares Core S&P 500 ETF, iShares Russell Mid-Cap Growth ETF, iShares Russell Mid-Cap ETF, iShares Russell Mid-Cap Value ETF, iShares Select Dividend ETF, iShares Morningstar Mid-Cap ETF, iShares Morningstar Large-Cap ETF, iShares U.S. Aerospace & Defense ETF and iShares U.S. Preferred Stock ETF) filed a putative class action lawsuit against iShares Trust, BlackRock, Inc. and certain of its advisory affiliates, and certain directors/trustees and officers of the Funds (collectively, “Defendants”) in California State Court. The lawsuit alleges the Defendants violated federal securities laws by failing to adequately disclose in the prospectuses issued by the funds noted above the risks of using stop-loss orders in the event of a ‘flash crash’, such as the one that occurred on May 6, 2010. On September 18, 2017, the court issued a Statement of Decision holding that the Plaintiffs lack standing to assert their claims. On October 11, 2017, the court entered final judgment dismissing all of the Plaintiffs’ claims with prejudice. Plaintiffs have appealed the court’s decision.
10. | SUBSEQUENT EVENTS |
Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or disclosure in the financial statements.
NOTESTO FINANCIAL STATEMENTS | 91 |
Table of Contents
Supplemental Information (Unaudited)
iSHARES® TRUST
Section 19(a) Notices
The amounts and sources of distributions reported are estimates and are provided pursuant to regulatory requirements and are not being provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon each Fund’s investment experience during the year and may be subject to changes based on the tax regulations. Shareholders will receive a Form 1099-DIV each calendar year that will inform them how to report these distributions for federal income tax purposes.
Total Cumulative Distributions for the Fiscal Year-to-Date | % Breakdown of the Total Cumulative Distributions for the Fiscal Year-to-Date | |||||||||||||||||||||||||||||||
iShares ETF | Net Investment Income | Net Realized Capital Gains | Return of Capital | Total Per Share | Net Investment Income | Net Realized Capital Gains | Return of Capital | Total Per Share | ||||||||||||||||||||||||
MSCI China | $ | 0.832201 | $ | — | $ | 0.013483 | $ | 0.845684 | 98 | % | — | % | 2 | % | 100 | % | ||||||||||||||||
MSCI China Small-Cap | 0.766778 | — | 0.138718 | 0.905496 | 85 | — | 15 | 100 | ||||||||||||||||||||||||
MSCI Indonesia | — | — | 0.029861 | 0.029861 | — | — | 100 | 100 | ||||||||||||||||||||||||
MSCI Peru | 0.713035 | — | 0.033409 | 0.746444 | 96 | — | 4 | 100 | ||||||||||||||||||||||||
MSCI Philippines | — | — | 0.025107 | 0.025107 | — | — | 100 | 100 | ||||||||||||||||||||||||
MSCI Qatar | — | — | 0.000834 | 0.000834 | — | — | 100 | 100 | ||||||||||||||||||||||||
MSCI UAE | 0.069078 | — | 0.031386 | 0.100464 | 69 | — | 31 | 100 |
92 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Electronic Delivery
Shareholders can sign up for email notifications announcing that the shareholder report or prospectus has been posted on the iShares website at www.iShares.com. Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail.
To enroll in electronic delivery:
• | Go to www.icsdelivery.com. |
• | If your brokerage firm is not listed, electronic delivery may not be available. Please contact your broker-dealer or financial advisor. |
Householding
Householding is an option available to certain fund investors. Householding is a method of delivery, based on the preference of the individual investor, in which a single copy of certain shareholder documents can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.
Availability of Quarterly Schedule of Investments
The iShares Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The iShares Funds’ Forms N-Q are available on the SEC’s website and may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The iShares Funds also disclose their complete schedule of portfolio holdings on a daily basis on the iShares website.
Availability of Proxy Voting Policies and Proxy Voting Records
A description of the policies and procedures that the iShares Funds use to determine how to vote proxies relating to portfolio securities and information about how the iShares Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request (1) by calling toll-free 1-800-474-2737; (2) on the iShares website at www.iShares.com; and (3) on the SEC website at www.sec.gov.
GENERAL INFORMATION | 93 |
Table of Contents
Notes:
94 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
For more information visit www.iShares.com or call 1-800-iShares (1-800-474-2737)
This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus.
Investing involves risk, including possible loss of principal.
The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).
The iShares Funds are not sponsored, endorsed, issued, sold or promoted by MSCI Inc., nor does this company make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the company listed above.
©2018 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.
iS-SAR-806-0218
Table of Contents
FEBRUARY 28, 2018
2018 SEMI-ANNUAL REPORT (UNAUDITED) |
iShares Trust
Ø | iShares MSCI Denmark ETF | EDEN | Cboe BZX |
Ø | iShares MSCI Finland ETF | EFNL | Cboe BZX |
Ø | iShares MSCI Germany Small-Cap ETF | EWGS | Cboe BZX |
Ø | iShares MSCI Ireland ETF | EIRL | NYSE Arca |
Ø | iShares MSCI New Zealand ETF | ENZL | NASDAQ |
Ø | iShares MSCI Norway ETF | ENOR | Cboe BZX |
Table of Contents
5 | ||||
11 | ||||
11 | ||||
12 | ||||
12 | ||||
15 | ||||
18 | ||||
22 | ||||
24 | ||||
26 | ||||
29 | ||||
36 | ||||
42 | ||||
53 | ||||
54 |
Table of Contents
iSHARES® MSCI DENMARK ETF
Performance as of February 28, 2018
The iShares MSCI Denmark ETF (the “Fund”) (formerly the iShares MSCI Denmark Capped ETF) seeks to track the investment results of a broad-based index composed of Danish equities, as represented by the MSCI Denmark IMI 25/50 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. For the six-month reporting period ended February 28, 2018, the total return for the Fund was 2.38%, net of fees, while the total return for the Index was 2.59%.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||||||||
1 Year | 30.18% | 30.14% | 30.58% | 30.18% | 30.14% | 30.58% | ||||||||||||||||||||||
5 Years | 16.20% | 16.04% | 16.56% | 111.88% | 110.36% | 115.11% | ||||||||||||||||||||||
Since Inception | 18.70% | 18.60% | 19.02% | 184.39% | 182.89% | 189.17% |
The inception date of the Fund was 1/25/12. The first day of secondary market trading was 1/26/12.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 11 for more information.
Shareholder Expenses | ||||||||||||||||||||||||||
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Annualized Expense Ratio | ||||||||||||||||||||
$ | 1,000.00 | $ | 1,023.80 | $ | 2.66 | $ | 1,000.00 | $ | 1,022.20 | $ | 2.66 | 0.53% |
a | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 11 for more information. |
ALLOCATION BY SECTOR
As of 2/28/18
Sector | Percentage of Total Investments* |
Health Care | 36.64 | % | ||
Industrials | 22.12 | |||
Financials | 15.57 | |||
Materials | 6.78 | |||
Consumer Staples | 6.65 | |||
Consumer Discretionary | 4.76 | |||
Utilities | 3.78 | |||
Telecommunication Services | 2.40 | |||
Information Technology | 1.04 | |||
Energy | 0.26 | |||
|
| |||
TOTAL | 100.00 | % | ||
|
|
TEN LARGEST FUND HOLDINGS
As of 2/28/18
Security | Percentage of Total Investments* |
Novo Nordisk A/S Class B | 22.21 | % | ||
Danske Bank A/S | 9.54 | |||
Vestas Wind Systems A/S | 5.10 | |||
DSV A/S | 4.52 | |||
Carlsberg A/S Class B | 4.42 | |||
Novozymes A/S Class B | 3.90 | |||
Genmab A/S | 3.79 | |||
Orsted A/S | 3.78 | |||
Pandora A/S | 3.59 | |||
AP Moller–Maersk A/S Class B | 3.43 | |||
|
| |||
TOTAL | 64.28 | % | ||
|
|
* | Excludes money market funds. |
FUND PERFORMANCE OVERVIEWS | 5 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI FINLAND ETF
Performance as of February 28, 2018
The iShares MSCI Finland ETF (the “Fund”) (formerly the iShares MSCI Finland Capped ETF) seeks to track the investment results of a broad-based index composed of Finnish equities, as represented by the MSCI Finland IMI 25/50 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. For the six-month reporting period ended February 28, 2018, the total return for the Fund was 7.17%, net of fees, while the total return for the Index was 7.32%.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||||||||
1 Year | 30.45% | 30.55% | 29.58% | 30.45% | 30.55% | 29.58% | ||||||||||||||||||||||
5 Years | 12.28% | 12.24% | 11.82% | 78.46% | 78.11% | 74.79% | ||||||||||||||||||||||
Since Inception | 12.00% | 11.94% | 11.50% | 99.58% | 98.91% | 94.30% |
The inception date of the Fund was 1/25/12. The first day of secondary market trading was 1/26/12.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 11 for more information.
Shareholder Expenses | ||||||||||||||||||||||||||
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Annualized Expense Ratio | ||||||||||||||||||||
$ | 1,000.00 | $ | 1,071.70 | $ | 2.72 | $ | 1,000.00 | $ | 1,022.20 | $ | 2.66 | 0.53% |
a | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 11 for more information. |
ALLOCATION BY SECTOR
As of 2/28/18
Sector | Percentage of Total Investments* |
Industrials | 24.96 | % | ||
Materials | 19.19 | |||
Information Technology | 18.17 | |||
Financials | 12.05 | |||
Consumer Discretionary | 6.38 | |||
Energy | 4.55 | |||
Utilities | 4.50 | |||
Telecommunication Services | 4.21 | |||
Consumer Staples | 2.43 | |||
Health Care | 2.33 | |||
Real Estate | 1.23 | |||
|
| |||
TOTAL | 100.00 | % | ||
|
|
TEN LARGEST FUND HOLDINGS
As of 2/28/18
Security | Percentage of Total Investments* |
Nokia OYJ | 16.56 | % | ||
Sampo OYJ Class A | 12.05 | |||
UPM-Kymmene OYJ | 8.43 | |||
Kone OYJ Class B | 8.07 | |||
Stora Enso OYJ Class R | 4.55 | |||
Neste OYJ | 4.55 | |||
Fortum OYJ | 4.50 | |||
Wartsila OYJ Abp | 4.45 | |||
Elisa OYJ | 3.36 | |||
Nokian Renkaat OYJ | 2.96 | |||
|
| |||
TOTAL | 69.48 | % | ||
|
|
* | Excludes money market funds. |
6 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI GERMANY SMALL-CAP ETF
Performance as of February 28, 2018
The iShares MSCI Germany Small-Cap ETF (the “Fund”) seeks to track the investment results of an index composed of small-capitalization German equities, as represented by the MSCI Germany 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. For the six-month reporting period ended February 28, 2018, the total return for the Fund was 14.93%, net of fees, while the total return for the Index was 15.10%.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||||||||
1 Year | 49.57% | 49.62% | 50.09% | 49.57% | 49.62% | 50.09% | ||||||||||||||||||||||
5 Years | 16.38% | 16.21% | 16.34% | 113.52% | 111.99% | 113.17% | ||||||||||||||||||||||
Since Inception | 18.46% | 18.35% | 18.36% | 180.83% | 179.22% | 179.52% |
The inception date of the Fund was 1/25/12. The first day of secondary market trading was 1/26/12.
Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 11 for more information.
Shareholder Expenses | ||||||||||||||||||||||||||
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Annualized Expense Ratio | ||||||||||||||||||||
$ | 1,000.00 | $ | 1,149.30 | $ | 3.14 | $ | 1,000.00 | $ | 1,021.90 | $ | 2.96 | 0.59% |
a | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 11 for more information. |
ALLOCATION BY SECTOR
As of 2/28/18
Sector | Percentage of Total Investments* |
Industrials | 26.33 | % | ||
Information Technology | 19.33 | |||
Real Estate | 13.99 | |||
Health Care | 13.55 | |||
Consumer Discretionary | 9.43 | |||
Financials | 7.61 | |||
Materials | 5.18 | |||
Telecommunication Services | 2.76 | |||
Consumer Staples | 1.30 | |||
Utilities | 0.44 | |||
Energy | 0.08 | |||
|
| |||
TOTAL | 100.00 | % | ||
|
|
TEN LARGEST FUND HOLDINGS
As of 2/28/18
Security | Percentage of Total Investments* |
LEG Immobilien AG | 4.09 | % | ||
Rheinmetall AG | 3.59 | |||
Sartorius AG (Preferred) | 2.99 | |||
Freenet AG | 2.76 | |||
Scout24 AG | 2.51 | |||
Duerr AG | 1.99 | |||
Siltronic AG | 1.93 | |||
GRENKE AG | 1.80 | |||
Aurubis AG | 1.76 | |||
MorphoSys AG | 1.73 | |||
|
| |||
TOTAL | 25.15 | % | ||
|
|
* | Excludes money market funds. |
FUND PERFORMANCE OVERVIEWS | 7 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI IRELAND ETF
Performance as of February 28, 2018
The iShares MSCI Ireland ETF (the “Fund”) (formerly the iShares MSCI Ireland Capped ETF) seeks to track the investment results of a broad-based index composed of Irish equities, as represented by the MSCI All Ireland Capped Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index For the six-month reporting period ended February 28, 2018, the total return for the Fund was 6.36%, net of fees, while the total return for the Index was 6.12%.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||||||||
1 Year | 19.76% | 19.33% | 19.72% | 19.76% | 19.33% | 19.72% | ||||||||||||||||||||||
5 Years | 13.64% | 13.23% | 13.92% | 89.54% | 86.14% | 91.84% | ||||||||||||||||||||||
Since Inception | 11.53% | 11.45% | 11.99% | 134.75% | 133.51% | 142.41% |
The inception date of the Fund was 5/5/10. The first day of secondary market trading was 5/7/10.
Index performance through November 26, 2013 reflects the performance of the MSCI Ireland Investable Market Index 25/50. Index performance beginning on November 27, 2013 reflects the performance of the MSCI All Ireland Capped Index.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 11 for more information.
Shareholder Expenses | ||||||||||||||||||||||||||
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Annualized Expense Ratio | ||||||||||||||||||||
$ | 1,000.00 | $ | 1,063.60 | $ | 2.40 | $ | 1,000.00 | $ | 1,022.50 | $ | 2.36 | 0.47% |
a | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 11 for more information. |
ALLOCATION BY SECTOR
As of 2/28/18
Sector | Percentage of Total Investments* |
Materials | 26.73 | % | ||
Consumer Staples | 22.63 | |||
Industrials | 13.24 | |||
Consumer Discretionary | 12.51 | |||
Financials | 10.85 | |||
Health Care | 8.17 | |||
Real Estate | 5.65 | |||
Information Technology | 0.22 | |||
|
| |||
TOTAL | 100.00 | % | ||
|
|
TEN LARGEST FUND HOLDINGS
As of 2/28/18
Security | Percentage of Total Investments* |
CRH PLC | 22.26 | % | ||
Kerry Group PLC Class A | 14.06 | |||
Paddy Power Betfair PLC | 8.21 | |||
AIB Group PLC | 4.61 | |||
ICON PLC | 4.61 | |||
Bank of Ireland Group PLC | 4.53 | |||
Smurfit Kappa Group PLC | 4.47 | |||
Kingspan Group PLC | 4.38 | |||
Glanbia PLC | 3.80 | |||
Ryanair Holdings PLC ADR | 3.65 | |||
|
| |||
TOTAL | 74.58 | % | ||
|
|
* | Excludes money market funds. |
8 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI NEW ZEALAND ETF
Performance as of February 28, 2018
The iShares MSCI New Zealand ETF (the “Fund”) (formerly the iShares MSCI New Zealand Capped ETF) seeks to track the investment results of a broad-based index composed of New Zealand equities, as represented by the MSCI New Zealand IMI 25/50 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. For the six-month reporting period ended February 28, 2018, the total return for the Fund was 7.45%, net of fees, while the total return for the Index was 7.64%.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||||||||
1 Year | 16.91% | 16.37% | 17.38% | 16.91% | 16.37% | 17.38% | ||||||||||||||||||||||
5 Years | 10.77% | 10.67% | 11.21% | 66.78% | 66.00% | 70.08% | ||||||||||||||||||||||
Since Inception | 14.31% | 14.16% | 14.77% | 172.56% | 169.90% | 180.99% |
The inception date of the Fund was 9/1/10. The first day of secondary market trading was 9/2/10.
Index performance through February 11, 2013 reflects the performance of the MSCI New Zealand Investable Market Index. Index performance beginning on February 12, 2013 reflects the performance of the MSCI New Zealand IMI 25/50 Index.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 11 for more information.
Shareholder Expenses | ||||||||||||||||||||||||||
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Annualized Expense Ratio | ||||||||||||||||||||
$ | 1,000.00 | $ | 1,074.50 | $ | 2.42 | $ | 1,000.00 | $ | 1,022.50 | $ | 2.36 | 0.47% |
a | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 11 for more information. |
ALLOCATION BY SECTOR
As of 2/28/18
Sector | Percentage of Total Investments* |
Health Care | 19.17 | % | ||
Utilities | 16.80 | |||
Industrials | 13.23 | |||
Consumer Staples | 11.93 | |||
Telecommunication Services | 10.88 | |||
Real Estate | 8.74 | |||
Consumer Discretionary | 8.42 | |||
Materials | 6.06 | |||
Energy | 4.77 | |||
|
| |||
TOTAL | 100.00 | % | ||
|
|
TEN LARGEST FUND HOLDINGS
As of 2/28/18
Security | Percentage of Total Investments* |
a2 Milk Co. Ltd. | 11.93 | % | ||
Fisher & Paykel Healthcare Corp. Ltd. | 10.75 | |||
Auckland International Airport Ltd. | 8.38 | |||
Spark New Zealand Ltd. | 8.35 | |||
Fletcher Building Ltd. | 6.06 | |||
Ryman Healthcare Ltd. | 4.47 | |||
Contact Energy Ltd. | 4.47 | |||
Meridian Energy Ltd. | 4.38 | |||
SKYCITY Entertainment Group Ltd. | 4.01 | |||
Z Energy Ltd. | 3.85 | |||
|
| |||
TOTAL | 66.65 | % | ||
|
|
* | Excludes money market funds. |
FUND PERFORMANCE OVERVIEWS | 9 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI NORWAY ETF
Performance as of February 28, 2018
The iShares MSCI Norway ETF (the “Fund”) (formerly the iShares MSCI Norway Capped ETF) seeks to track the investment results of a broad-based index composed of Norwegian equities, as represented by the MSCI Norway IMI 25/50 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. For the six-month reporting period ended February 28, 2018, the total return for the Fund was 8.90%, net of fees, while the total return for the Index was 9.16%.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||||||||
1 Year | 23.55% | 22.34% | 23.99% | 23.55% | 22.34% | 23.99% | ||||||||||||||||||||||
5 Years | 1.13% | 0.85% | 1.40% | 5.80% | 4.31% | 7.17% | ||||||||||||||||||||||
Since Inception | 3.75% | 3.53% | 4.03% | 25.22% | 23.59% | 27.25% |
The inception date of the Fund was 1/23/12. The first day of secondary market trading was 1/24/12.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 11 for more information.
Shareholder Expenses | ||||||||||||||||||||||||||
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Annualized Expense Ratio | ||||||||||||||||||||
$ | 1,000.00 | $ | 1,089.00 | $ | 2.75 | $ | 1,000.00 | $ | 1,022.20 | $ | 2.66 | 0.53% |
a | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 11 for more information. |
ALLOCATION BY SECTOR
As of 2/28/18
Sector | Percentage of Total Investments* |
Energy | 29.36 | % | ||
Financials | 23.84 | |||
Consumer Staples | 14.52 | |||
Telecommunication Services | 10.60 | |||
Materials | 10.41 | |||
Consumer Discretionary | 3.44 | |||
Information Technology | 3.11 | |||
Industrials | 2.51 | |||
Real Estate | 1.58 | |||
Utilities | 0.40 | |||
Health Care | 0.23 | |||
|
| |||
TOTAL | 100.00 | % | ||
|
|
TEN LARGEST FUND HOLDINGS
As of 2/28/18
Security | Percentage of Total Investments* |
Statoil ASA | 16.89 | % | ||
DNB ASA | 12.18 | |||
Telenor ASA | 10.60 | |||
Norsk Hydro ASA | 5.27 | |||
Orkla ASA | 4.56 | |||
Marine Harvest ASA | 4.45 | |||
Yara International ASA | 4.33 | |||
Subsea 7 SA | 2.98 | |||
Storebrand ASA | 2.96 | |||
Gjensidige Forsikring ASA | 2.69 | |||
|
| |||
TOTAL | 66.91 | % | ||
|
|
* | Excludes money market funds. |
10 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Past performance is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at www.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. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer 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. Certain funds may have a NAV which is determined prior to the opening of regular trading on its listed exchange and their market returns are calculated using the midpoint of the bid/ask spread as of the opening of regular trading on the exchange. 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.
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested on September 1, 2017 and held through February 28, 2018, is intended to help you understand your ongoing costs (in dollars and cents) of investing in a Fund and to compare these costs with the ongoing costs of investing in other funds.
Actual Expenses — The table provides information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. To estimate the expenses that you paid on your account over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number corresponding to your Fund under the heading entitled “Expenses Paid During Period.”
Hypothetical Example for Comparison Purposes — The table also provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions paid on purchases and sales of fund shares. Therefore, the hypothetical examples are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
ABOUT FUND PERFORMANCE / SHAREHOLDER EXPENSES | 11 |
Table of Contents
Schedule of Investments (Unaudited)
February 28, 2018
Security | Shares | Value | ||||||
COMMON STOCKS — 99.22% |
| |||||||
BANKS — 12.59% |
| |||||||
Danske Bank A/S | 136,788 | $ | 5,516,512 | |||||
Jyske Bank A/S Registered | 14,517 | 861,061 | ||||||
Spar Nord Bank A/S | 26,911 | 305,486 | ||||||
Sydbank A/S | 16,720 | 655,676 | ||||||
|
| |||||||
7,338,735 | ||||||||
BEVERAGES — 5.54% |
| |||||||
Carlsberg A/S Class B | 20,830 | 2,559,734 | ||||||
Royal Unibrew A/S | 10,902 | 670,750 | ||||||
|
| |||||||
3,230,484 | ||||||||
BIOTECHNOLOGY — 4.64% |
| |||||||
Bavarian Nordic A/Sa | 8,117 | 328,015 | ||||||
Genmab A/Sa | 10,728 | 2,191,360 | ||||||
Zealand Pharma A/Sa | 11,863 | 184,023 | ||||||
|
| |||||||
2,703,398 | ||||||||
BUILDING PRODUCTS — 1.05% |
| |||||||
Rockwool International A/S Class B | 2,077 | 615,465 | ||||||
|
| |||||||
615,465 | ||||||||
CHEMICALS — 6.73% |
| |||||||
Chr Hansen Holding A/S | 19,969 | 1,664,956 | ||||||
Novozymes A/S Class B | 43,742 | 2,257,032 | ||||||
|
| |||||||
3,921,988 | ||||||||
COMMERCIAL SERVICES & SUPPLIES — 1.96% |
| |||||||
ISS A/S | 31,331 | 1,140,886 | ||||||
|
| |||||||
1,140,886 | ||||||||
CONSTRUCTION & ENGINEERING — 1.62% |
| |||||||
FLSmidth & Co. A/S | 9,405 | 641,964 | ||||||
Per Aarsleff Holding A/S | 8,405 | 300,828 | ||||||
|
| |||||||
942,792 | ||||||||
DIVERSIFIED TELECOMMUNICATION SERVICES — 2.38% |
| |||||||
TDC A/S | 170,477 | 1,389,273 | ||||||
|
| |||||||
1,389,273 | ||||||||
ELECTRIC UTILITIES — 3.75% |
| |||||||
Orsted A/Sb | 35,001 | 2,183,836 | ||||||
|
| |||||||
2,183,836 | ||||||||
ELECTRICAL EQUIPMENT — 5.46% |
| |||||||
NKT A/Sa | 6,642 | 233,266 | ||||||
Vestas Wind Systems A/S | 40,633 | 2,952,562 | ||||||
|
| |||||||
3,185,828 | ||||||||
FOOD PRODUCTS — 0.62% |
| |||||||
Schouw & Co. A/S | 3,438 | 359,580 | ||||||
|
| |||||||
359,580 |
Security | Shares | Value | ||||||
HEALTH CARE EQUIPMENT & SUPPLIES — 7.84% |
| |||||||
Ambu A/S Series B | 36,556 | $ | 707,191 | |||||
Coloplast A/S Class B | 22,015 | 1,866,558 | ||||||
GN Store Nord A/S | 30,094 | 1,042,603 | ||||||
William Demant Holding A/Sa | 26,518 | 952,160 | ||||||
|
| |||||||
4,568,512 | ||||||||
HEALTH CARE TECHNOLOGY — 0.19% |
| |||||||
NNIT A/Sb | 3,767 | 111,934 | ||||||
|
| |||||||
111,934 | ||||||||
HOUSEHOLD DURABLES — 0.63% |
| |||||||
Bang & Olufsen A/Sa | 12,670 | 364,858 | ||||||
|
| |||||||
364,858 | ||||||||
INSURANCE — 2.86% |
| |||||||
Alm Brand A/S | 26,865 | 304,084 | ||||||
Topdanmark A/Sa | 13,647 | 673,766 | ||||||
Tryg A/S | 29,008 | 689,942 | ||||||
|
| |||||||
1,667,792 | ||||||||
MACHINERY — 0.58% |
| |||||||
Nilfisk Holding A/Sa | 6,642 | 337,279 | ||||||
|
| |||||||
337,279 | ||||||||
MARINE — 6.43% |
| |||||||
AP Moller – Maersk A/S Class A | 707 | 1,110,623 | ||||||
AP Moller – Maersk A/S Class B | 1,208 | 1,983,717 | ||||||
D/S Norden A/Sa,c | 11,262 | 216,946 | ||||||
Dfds A/S | 7,963 | 439,838 | ||||||
|
| |||||||
3,751,124 | ||||||||
OIL, GAS & CONSUMABLE FUELS — 0.26% |
| |||||||
TORM PLC | 20,233 | 150,800 | ||||||
|
| |||||||
150,800 | ||||||||
PHARMACEUTICALS — 23.69% |
| |||||||
ALK-Abello A/S | 2,206 | 260,176 | ||||||
H Lundbeck A/S | 13,355 | 701,571 | ||||||
Novo Nordisk A/S Class B | 247,732 | 12,847,587 | ||||||
|
| |||||||
13,809,334 | ||||||||
ROAD & RAIL — 4.48% |
| |||||||
DSV A/S | 33,191 | 2,611,872 | ||||||
|
| |||||||
2,611,872 | ||||||||
SOFTWARE — 1.03% |
| |||||||
SimCorp A/S | 9,558 | 600,271 | ||||||
|
| |||||||
600,271 | ||||||||
SPECIALTY RETAIL — 0.28% |
| |||||||
Matas A/S | 14,977 | 166,335 | ||||||
|
| |||||||
166,335 |
12 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI DENMARK ETF
February 28, 2018
Security | Shares | Value | ||||||
TEXTILES, APPAREL & LUXURY GOODS — 3.81% |
| |||||||
IC Group A/S | 6,460 | $ | 147,299 | |||||
Pandora A/S | 19,803 | 2,076,058 | ||||||
|
| |||||||
2,223,357 | ||||||||
TOBACCO — 0.44% |
| |||||||
Scandinavian Tobacco Group A/Sb | 13,131 | 258,757 | ||||||
|
| |||||||
258,757 | ||||||||
TRADING COMPANIES & DISTRIBUTORS — 0.36% |
| |||||||
Solar A/S Class B | 3,104 | 207,703 | ||||||
|
| |||||||
207,703 | ||||||||
|
| |||||||
TOTAL COMMON STOCKS |
| |||||||
(Cost: $51,835,734) |
| 57,842,193 | ||||||
SHORT-TERM INVESTMENTS — 0.31% |
| |||||||
MONEY MARKET FUNDS — 0.31% |
| |||||||
BlackRock Cash Funds: Institutional, | ||||||||
1.58%d,e,f | 171,962 | 171,980 |
Security | Shares | Value | ||||||
BlackRock Cash Funds: Treasury, | ||||||||
1.32%d,e | 9,848 | $ | 9,848 | |||||
|
| |||||||
181,828 | ||||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||||
(Cost: $181,825) | 181,828 | |||||||
|
| |||||||
TOTAL INVESTMENTS |
| |||||||
(Cost: $52,017,559) | 58,024,021 | |||||||
Other Assets, Less Liabilities — 0.47% |
| 276,094 | ||||||
|
| |||||||
NET ASSETS — 100.00% |
| $ | 58,300,115 | |||||
|
|
a | Non-income producing security. |
b | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
c | All or a portion of this security is on loan. |
d | Affiliate of the Fund. |
e | Annualized 7-day yield as of period end. |
f | All or a portion of this security was purchased with cash collateral received from loaned securities. |
Affiliates (Note 2)
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows:
Affiliated issuer | Shares held at 08/31/17 | Shares purchased | Shares sold | Shares held at 02/28/18 | Value at 02/28/18 | Income | Net realized gain (loss) a | Change in unrealized appreciation (depreciation) | ||||||||||||||||||||||||
BlackRock Cash | 1,251,881 | — | (1,079,919 | )b | 171,962 | $ | 171,980 | $ | 7,602 | c | $ | (131 | ) | $ | (154 | ) | ||||||||||||||||
BlackRock Cash | 8,716 | 1,132 | b | — | 9,848 | 9,848 | 190 | — | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 181,828 | $ | 7,792 | $ | (131 | ) | $ | (154 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
a | Includes realized capital gain distributions from an affiliated fund, if any. |
b | Net of purchases and sales. |
c | Includes the Fund’s portion of securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. |
SCHEDULES OF INVESTMENTS | 13 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI DENMARK ETF
February 28, 2018
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common stocks | $ | 57,842,193 | $ | — | $ | — | $ | 57,842,193 | ||||||||
Money market funds | 181,828 | — | — | 181,828 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 58,024,021 | $ | — | $ | — | $ | 58,024,021 | ||||||||
|
|
|
|
|
|
|
| |||||||||
See notes to financial statements.
14 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
February 28, 2018
Security | Shares | Value | ||||||
COMMON STOCKS — 99.15% |
| |||||||
AIRLINES — 0.62% |
| |||||||
Finnair OYJ | 17,695 | $ | 263,081 | |||||
|
| |||||||
263,081 | ||||||||
AUTO COMPONENTS — 2.94% |
| |||||||
Nokian Renkaat OYJ | 27,060 | 1,246,551 | ||||||
|
| |||||||
1,246,551 | ||||||||
BUILDING PRODUCTS — 0.70% |
| |||||||
Uponor OYJ | 16,608 | 296,547 | ||||||
|
| |||||||
296,547 | ||||||||
CHEMICALS — 1.43% |
| |||||||
Kemira OYJ | 27,723 | 380,051 | ||||||
Tikkurila OYJ | 11,761 | 228,935 | ||||||
|
| |||||||
608,986 | ||||||||
COMMERCIAL SERVICES & SUPPLIES — 0.54% |
| |||||||
Caverion OYJa,b | 29,348 | 231,052 | ||||||
|
| |||||||
231,052 | ||||||||
COMMUNICATIONS EQUIPMENT — 16.42% |
| |||||||
Nokia OYJ | 1,190,133 | 6,971,777 | ||||||
|
| |||||||
6,971,777 | ||||||||
CONSTRUCTION & ENGINEERING — 1.31% |
| |||||||
Lehto Group OYJ | 9,608 | 161,714 | ||||||
YIT OYJ | 46,008 | 395,882 | ||||||
|
| |||||||
557,596 | ||||||||
CONTAINERS & PACKAGING — 2.17% |
| |||||||
Huhtamaki OYJ | 21,743 | 922,591 | ||||||
|
| |||||||
922,591 | ||||||||
DIVERSIFIED TELECOMMUNICATION SERVICES — 4.18% |
| |||||||
DNA OYJ | 17,041 | 360,604 | ||||||
Elisa OYJ | 32,756 | 1,412,263 | ||||||
|
| |||||||
1,772,867 | ||||||||
ELECTRIC UTILITIES — 4.46% |
| |||||||
Fortum OYJ | 86,016 | 1,893,616 | ||||||
|
| |||||||
1,893,616 | ||||||||
FOOD & STAPLES RETAILING — 2.12% |
| |||||||
Kesko OYJ Class B | 15,470 | 901,324 | ||||||
|
| |||||||
901,324 | ||||||||
FOOD PRODUCTS — 0.29% |
| |||||||
Atria OYJ | 7,474 | 120,874 | ||||||
|
| |||||||
120,874 |
Security | Shares | Value | ||||||
HEALTH CARE PROVIDERS & SERVICES — 0.38% |
| |||||||
Oriola Corp. Class B | 51,183 | $ | 161,682 | |||||
|
| |||||||
161,682 | ||||||||
INSURANCE — 11.95% |
| |||||||
Sampo OYJ Class A | 89,206 | 5,074,439 | ||||||
|
| |||||||
5,074,439 | ||||||||
IT SERVICES — 1.20% |
| |||||||
Tieto OYJ | 14,347 | 510,251 | ||||||
|
| |||||||
510,251 | ||||||||
LEISURE PRODUCTS — 2.03% |
| |||||||
Amer Sports OYJ | 28,509 | 862,669 | ||||||
|
| |||||||
862,669 | ||||||||
MACHINERY — 20.37% |
| |||||||
Cargotec OYJ Class B | 9,825 | 557,452 | ||||||
Kone OYJ Class B | 65,402 | 3,397,301 | ||||||
Konecranes OYJ | 16,384 | 725,974 | ||||||
Metso OYJ | 26,986 | 867,929 | ||||||
Outotec OYJa | 38,782 | 387,864 | ||||||
Ponsse OYJ | 4,854 | 163,101 | ||||||
Valmet OYJ | 31,403 | 673,709 | ||||||
Wartsila OYJ Abp | 26,522 | 1,874,218 | ||||||
|
| |||||||
8,647,548 | ||||||||
MEDIA — 0.65% |
| |||||||
Sanoma OYJ | 22,727 | 274,280 | ||||||
|
| |||||||
274,280 | ||||||||
METALS & MINING — 1.49% |
| |||||||
Outokumpu OYJ | 77,991 | 633,511 | ||||||
|
| |||||||
633,511 | ||||||||
MULTILINE RETAIL — 0.71% |
| |||||||
Stockmann OYJ Abp Class Ba,b | 24,856 | 116,715 | ||||||
Tokmanni Group Corp. | 19,306 | 183,663 | ||||||
|
| |||||||
300,378 | ||||||||
OIL, GAS & CONSUMABLE FUELS — 4.51% |
| |||||||
Neste OYJ | 26,051 | 1,914,013 | ||||||
|
| |||||||
1,914,013 | ||||||||
PAPER & FOREST PRODUCTS — 13.93% |
| |||||||
Metsa Board OYJ | 50,661 | 449,822 | ||||||
Stora Enso OYJ Class R | 107,744 | 1,915,301 | ||||||
UPM-Kymmene OYJ | 103,068 | 3,548,707 | ||||||
|
| |||||||
5,913,830 | ||||||||
PHARMACEUTICALS — 1.93% |
| |||||||
Orion OYJ Class B | 25,059 | 819,094 | ||||||
|
| |||||||
819,094 |
SCHEDULES OF INVESTMENTS | 15 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI FINLAND ETF
February 28, 2018
Security | Shares | Value | ||||||
REAL ESTATE MANAGEMENT & DEVELOPMENT — 1.22% |
| |||||||
Citycon OYJ | 121,107 | $ | 283,452 | |||||
Technopolis OYJ | 48,932 | 236,034 | ||||||
|
| |||||||
519,486 | ||||||||
SOFTWARE — 0.40% |
| |||||||
F-Secure OYJ | 39,583 | 168,971 | ||||||
|
| |||||||
168,971 | ||||||||
TRADING COMPANIES & DISTRIBUTORS — 1.20% |
| |||||||
Cramo OYJ | 11,661 | 273,211 | ||||||
Ramirent OYJ | 24,765 | 237,258 | ||||||
|
| |||||||
510,469 | ||||||||
|
| |||||||
TOTAL COMMON STOCKS | 42,097,483 | |||||||
SHORT-TERM INVESTMENTS — 0.76% |
| |||||||
MONEY MARKET FUNDS — 0.76% |
| |||||||
BlackRock Cash Funds: Institutional, | ||||||||
1.58%c,d,e | 322,621 | 322,653 |
Security | Shares | Value | ||||||
BlackRock Cash Funds: Treasury, | ||||||||
1.32%c,d | 1,859 | $ | 1,859 | |||||
|
| |||||||
324,512 | ||||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||||
(Cost: $324,512) | 324,512 | |||||||
|
| |||||||
TOTAL INVESTMENTS | ||||||||
(Cost: $38,052,263) | 42,421,995 | |||||||
Other Assets, Less Liabilities — 0.09% |
| 37,322 | ||||||
|
| |||||||
NET ASSETS — 100.00% | $ | 42,459,317 | ||||||
|
|
a | Non-income producing security. |
b | All or a portion of this security is on loan. |
c | Affiliate of the Fund. |
d | Annualized 7-day yield as of period end. |
e | All or a portion of this security was purchased with cash collateral received from loaned securities. |
Affiliates (Note 2)
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows:
Affiliated issuer | Shares held at 08/31/17 | Shares purchased | Shares sold | Shares held at 02/28/18 | Value at 02/28/18 | Income | Net realized gain (loss) a | Change in unrealized appreciation (depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, | 1,708,490 | — | (1,385,869 | )b | 322,621 | $ | 322,653 | $ | 3,252 | c | $ | (100 | ) | $ | 19 | |||||||||||||||||
BlackRock Cash Funds: Treasury, | 6,454 | — | (4,595 | )b | 1,859 | 1,859 | 123 | — | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 324,512 | $ | 3,375 | $ | (100 | ) | $ | 19 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
a | Includes realized capital gain distributions from an affiliated fund, if any. |
b | Net of purchases and sales. |
c | Includes the Fund’s portion of securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. |
16 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI FINLAND ETF
February 28, 2018
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments |
| |||||||||||||||
Assets |
| |||||||||||||||
Common stocks | $ | 42,097,483 | $ | — | $ | — | $ | 42,097,483 | ||||||||
Money market funds | 324,512 | — | — | 324,512 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 42,421,995 | $ | — | $ | — | $ | 42,421,995 | ||||||||
|
|
|
|
|
|
|
| |||||||||
See notes to financial statements.
SCHEDULES OF INVESTMENTS | 17 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI GERMANY SMALL-CAP ETF
February 28, 2018
Security | Shares | Value | ||||||
COMMON STOCKS — 93.57% |
| |||||||
AEROSPACE & DEFENSE — 0.16% |
| |||||||
OHB SE | 2,463 | $ | 121,661 | |||||
|
| |||||||
121,661 | ||||||||
AUTO COMPONENTS — 2.69% |
| |||||||
ElringKlinger AGa | 13,292 | 276,084 | ||||||
Grammer AG | 4,703 | 295,118 | ||||||
Leoni AG | 14,500 | 993,893 | ||||||
SAF-Holland SA | 21,193 | 466,040 | ||||||
|
| |||||||
2,031,135 | ||||||||
AUTOMOBILES — 0.13% |
| |||||||
EDAG Engineering Group AG | 4,710 | 95,360 | ||||||
|
| |||||||
95,360 | ||||||||
BANKS — 0.25% |
| |||||||
comdirect bank AG | 13,119 | 186,567 | ||||||
|
| |||||||
186,567 | ||||||||
BUILDING PRODUCTS — 0.10% |
| |||||||
CENTROTEC Sustainable AG | 4,221 | 73,824 | ||||||
|
| |||||||
73,824 | ||||||||
CAPITAL MARKETS — 1.70% |
| |||||||
AURELIUS Equity Opportunities SE & Co KGaAa | 10,782 | 792,304 | ||||||
Deutsche Beteiligungs AG | 5,628 | 302,711 | ||||||
MLP SE | 28,273 | 187,588 | ||||||
|
| |||||||
1,282,603 | ||||||||
CHEMICALS — 1.79% |
| |||||||
H&R GmbH & Co. KGaAb | 6,011 | 99,706 | ||||||
Wacker Chemie AGa | 7,310 | 1,248,636 | ||||||
|
| |||||||
1,348,342 | ||||||||
COMMERCIAL SERVICES & SUPPLIES — 1.20% |
| |||||||
Bilfinger SE | 14,459 | 658,841 | ||||||
Cewe Stiftung & Co. KGaA | 2,410 | 246,906 | ||||||
|
| |||||||
905,747 | ||||||||
COMMUNICATIONS EQUIPMENT — 0.20% |
| |||||||
ADVA Optical Networking SEa,b | 19,850 | 151,797 | ||||||
|
| |||||||
151,797 | ||||||||
CONSTRUCTION & ENGINEERING — 0.16% |
| |||||||
Bauer AG | 4,428 | 117,463 | ||||||
|
| |||||||
117,463 | ||||||||
CONSUMER FINANCE — 0.25% |
| |||||||
Ferratum OYJa | 5,551 | 185,844 | ||||||
|
| |||||||
185,844 |
Security | Shares | Value | ||||||
DIVERSIFIED FINANCIAL SERVICES — 2.11% |
| |||||||
GRENKE AG | 12,422 | $ | 1,358,242 | |||||
Hypoport AGa,b | 1,440 | 232,534 | ||||||
|
| |||||||
1,590,776 | ||||||||
ELECTRICAL EQUIPMENT — 1.19% |
| |||||||
Nordex SEb | 29,445 | 340,308 | ||||||
Senvion SAa,b | 12,223 | 148,183 | ||||||
SGL Carbon SEa,b | 28,580 | 405,743 | ||||||
|
| |||||||
894,234 | ||||||||
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 1.81% |
| |||||||
Basler AGa | 656 | 160,018 | ||||||
Isra Vision AG | 1,535 | 374,058 | ||||||
Jenoptik AG | 24,068 | 831,908 | ||||||
|
| |||||||
1,365,984 | ||||||||
EQUITY REAL ESTATE INVESTMENT TRUSTS |
| |||||||
alstria office REIT AG | 66,982 | 995,041 | ||||||
Hamborner REIT AG | 35,383 | 397,456 | ||||||
|
| |||||||
1,392,497 | ||||||||
FOOD PRODUCTS — 1.30% |
| |||||||
KWS Saat SE | 923 | 378,811 | ||||||
Suedzucker AGa | 33,389 | 601,070 | ||||||
|
| |||||||
979,881 | ||||||||
HEALTH CARE EQUIPMENT & SUPPLIES — 1.96% |
| |||||||
Carl Zeiss Meditec AG Bearer | 18,805 | 1,165,125 | ||||||
Draegerwerk AG & Co. KGaA | 1,433 | 112,555 | ||||||
STRATEC Biomedical AGa | 2,236 | 201,263 | ||||||
|
| |||||||
1,478,943 | ||||||||
HEALTH CARE PROVIDERS & SERVICES — 0.65% |
| |||||||
RHOEN-KLINIKUM AG | 14,079 | 491,791 | ||||||
|
| |||||||
491,791 | ||||||||
HEALTH CARE TECHNOLOGY — 0.85% |
| |||||||
CompuGroup Medical SE | 11,189 | 638,118 | ||||||
|
| |||||||
638,118 | ||||||||
HOTELS, RESTAURANTS & LEISURE — 0.35% |
| |||||||
bet-at-home.com AG | 1,318 | 161,393 | ||||||
Vapiano SEa,b,c | 3,388 | 101,858 | ||||||
|
| |||||||
263,251 | ||||||||
HOUSEHOLD DURABLES — 0.16% |
| |||||||
Surteco SE | 3,643 | 117,745 | ||||||
|
| |||||||
117,745 |
18 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI GERMANY SMALL-CAP ETF
February 28, 2018
Security | Shares | Value | ||||||
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS — 0.44% |
| |||||||
Encavis AG | 38,925 | $ | 333,749 | |||||
|
| |||||||
333,749 | ||||||||
INDUSTRIAL CONGLOMERATES — 4.58% |
| |||||||
Indus Holding AG | 8,568 | 640,583 | ||||||
MBB SEa | 929 | 109,906 | ||||||
Rheinmetall AG | 20,351 | 2,705,501 | ||||||
|
| |||||||
3,455,990 | ||||||||
INSURANCE — 0.41% |
| |||||||
Wuestenrot & | 10,938 | 306,832 | ||||||
|
| |||||||
306,832 | ||||||||
INTERNET & DIRECT MARKETING RETAIL — 1.35% |
| |||||||
Takkt AGa | 15,327 | 403,782 | ||||||
zooplus AGa,b | 2,832 | 617,584 | ||||||
|
| |||||||
1,021,366 | ||||||||
INTERNET SOFTWARE & SERVICES — 4.13% |
| |||||||
Rocket Internet SEb,c | 27,005 | 813,536 | ||||||
Scout24 AGc | 42,731 | 1,889,758 | ||||||
XING SE | 1,312 | 411,247 | ||||||
|
| |||||||
3,114,541 | ||||||||
IT SERVICES — 2.82% |
| |||||||
Bechtle AG | 13,736 | 1,175,231 | ||||||
CANCOM SE | 7,777 | 756,921 | ||||||
GFT Technologies SEa | 7,423 | 123,852 | ||||||
KPS AG | 6,154 | 75,057 | ||||||
|
| |||||||
2,131,061 | ||||||||
LIFE SCIENCES TOOLS & SERVICES — 4.59% |
| |||||||
Evotec AGa,b | 58,575 | 1,029,823 | ||||||
Gerresheimer AG | 14,671 | 1,129,079 | ||||||
MorphoSys AGa,b | 13,031 | 1,305,632 | ||||||
|
| |||||||
3,464,534 | ||||||||
MACHINERY — 12.23% |
| |||||||
Aumann AGa,b,c | 3,563 | 266,821 | ||||||
Deutz AG | 56,468 | 529,620 | ||||||
DMG Mori AG | 9,206 | 515,370 | ||||||
Duerr AG | 12,146 | 1,495,461 | ||||||
Heidelberger Druckmaschinen AGa,b | 123,718 | 463,844 | ||||||
JOST Werke AGb,c | 6,961 | 359,126 | ||||||
Koenig & Bauer AGa | 6,176 | 544,228 | ||||||
Krones AGa | 7,380 | 1,000,913 |
Security | Shares | Value | ||||||
NORMA Group SE | 14,887 | $ | 1,099,403 | |||||
Pfeiffer Vacuum Technology AG | 2,997 | 535,135 | ||||||
Rational AG | 1,594 | 1,037,190 | ||||||
SLM Solutions Group AGa,b | 5,864 | 254,612 | ||||||
Vossloh AGb | 4,829 | 220,863 | ||||||
Wacker Neuson SE | 13,108 | 469,064 | ||||||
Washtec AG | 5,224 | 435,807 | ||||||
|
| |||||||
9,227,457 | ||||||||
MARINE — 1.11% |
| |||||||
Hapag-Lloyd AGa,b,c | 20,529 | 834,774 | ||||||
|
| |||||||
834,774 | ||||||||
MEDIA — 2.94% |
| |||||||
Borussia Dortmund GmbH & Co. KGaA | 27,804 | 203,128 | ||||||
CTS Eventim AG & Co. KGaA | 22,426 | 1,094,622 | ||||||
Stroeer SE & Co. KGaAa | 12,928 | 922,407 | ||||||
|
| |||||||
2,220,157 | ||||||||
METALS & MINING — 3.15% |
| |||||||
Aurubis AG | 15,753 | 1,329,166 | ||||||
Salzgitter AG | 18,251 | 1,050,887 | ||||||
|
| |||||||
2,380,053 | ||||||||
OIL, GAS & CONSUMABLE FUELS — 0.08% |
| |||||||
VERBIO Vereinigte BioEnergie AG | 10,365 | 60,807 | ||||||
|
| |||||||
60,807 | ||||||||
PHARMACEUTICALS — 1.61% |
| |||||||
STADA Arzneimittel AG | 11,651 | 1,214,968 | ||||||
|
| |||||||
1,214,968 | ||||||||
PROFESSIONAL SERVICES — 0.75% |
| |||||||
Amadeus Fire AG | 2,421 | 257,186 | ||||||
Bertrandt AG | 2,605 | 305,646 | ||||||
|
| |||||||
562,832 | ||||||||
REAL ESTATE MANAGEMENT & DEVELOPMENT — 12.13% |
| |||||||
ADLER Real Estate AGa,b | 13,387 | 213,563 | ||||||
ADO Properties SAa,c | 14,423 | 752,544 | ||||||
Deutsche Euroshop AG | 23,093 | 837,639 | ||||||
DIC Asset AG | 20,789 | 275,359 | ||||||
Grand City Properties SA | 50,045 | 1,121,257 | ||||||
LEG Immobilien AG | 29,522 | 3,077,838 | ||||||
PATRIZIA Immobilien AGb | 21,574 | 486,259 | ||||||
TAG Immobilien AG | 58,179 | 1,104,107 | ||||||
TLG Immobilien AG | 47,669 | 1,277,907 | ||||||
|
| |||||||
9,146,473 |
SCHEDULES OF INVESTMENTS | 19 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI GERMANY SMALL-CAP ETF
February 28, 2018
Security | Shares | Value | ||||||
ROAD & RAIL — 1.36% |
| |||||||
Sixt Leasing SEa | 5,812 | $ | 126,886 | |||||
Sixt SEa | 5,675 | 598,019 | ||||||
VTG AGa | 6,037 | 298,939 | ||||||
|
| |||||||
1,023,844 | ||||||||
SEMICONDUCTORS & SEMICONDUCTOR |
| |||||||
AIXTRON SEa,b | 50,070 | 1,002,430 | ||||||
Dialog Semiconductor PLCb | 35,687 | 1,157,783 | ||||||
Elmos Semiconductor AG | 4,724 | 156,428 | ||||||
Manz AGa,b | 1,976 | 83,507 | ||||||
Siltronic AGb | 9,812 | 1,450,426 | ||||||
SMA Solar Technology AGa | 5,670 | 341,898 | ||||||
|
| |||||||
4,192,472 | ||||||||
SOFTWARE — 3.66% |
| |||||||
Nemetschek SE | 8,994 | 925,829 | ||||||
RIB Software SEa | 16,415 | 611,828 | ||||||
Software AG | 23,202 | 1,224,752 | ||||||
|
| |||||||
2,762,409 | ||||||||
SPECIALTY RETAIL — 1.63% |
| |||||||
CECONOMY AG | 83,286 | 1,092,491 | ||||||
Hornbach Baumarkt AG | 3,737 | 139,014 | ||||||
|
| |||||||
1,231,505 | ||||||||
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS — 1.12% |
| |||||||
Diebold Nixdorf AG | 3,861 | 320,217 | ||||||
S&T AG | 20,728 | 523,820 | ||||||
|
| |||||||
844,037 | ||||||||
TEXTILES, APPAREL & LUXURY GOODS — 0.16% |
| |||||||
Gerry Weber International AGa | 11,871 | 118,144 | ||||||
|
| |||||||
118,144 | ||||||||
THRIFTS & MORTGAGE FINANCE — 2.88% |
| |||||||
Aareal Bank AGa | 26,568 | 1,296,795 | ||||||
Deutsche Pfandbriefbank AGc | 50,263 | 878,476 | ||||||
|
| |||||||
2,175,271 | ||||||||
TRADING COMPANIES & DISTRIBUTORS — 0.90% |
| |||||||
BayWa AG | 6,358 | 229,922 | ||||||
Kloeckner & Co. SE | 34,953 | 451,883 | ||||||
|
| |||||||
681,805 | ||||||||
TRANSPORTATION INFRASTRUCTURE — 0.37% |
| |||||||
Hamburger Hafen und Logistik AG | 11,433 | 281,395 | ||||||
|
| |||||||
281,395 |
Security | Shares | Value | ||||||
WIRELESS TELECOMMUNICATION SERVICES — 2.75% |
| |||||||
Freenet AG | 59,832 | $ | 2,076,844 | |||||
|
| |||||||
2,076,844 | ||||||||
|
| |||||||
TOTAL COMMON STOCKS | ||||||||
(Cost: $65,854,785) | 70,576,883 | |||||||
PREFERRED STOCKS — 6.28% |
| |||||||
BIOTECHNOLOGY — 0.41% |
| |||||||
Biotest AG, Preference Sharesa | 9,232 | 306,267 | ||||||
|
| |||||||
306,267 | ||||||||
CONSTRUCTION MATERIALS — 0.23% |
| |||||||
STO SE & Co. KGaA, Preference Shares | 1,190 | 172,134 | ||||||
|
| |||||||
172,134 | ||||||||
HEALTH CARE EQUIPMENT & SUPPLIES — 3.46% |
| |||||||
Draegerwerk AG & Co. KGaA, Preference Shares | 3,549 | 364,463 | ||||||
Sartorius AG, Preference Shares | 16,618 | 2,249,765 | ||||||
|
| |||||||
2,614,228 | ||||||||
MACHINERY — 1.45% |
| |||||||
Jungheinrich AG, Preference Shares | 22,426 | 1,096,810 | ||||||
|
| |||||||
1,096,810 | ||||||||
ROAD & RAIL — 0.73% |
| |||||||
Sixt SE, Preference Shares | 7,740 | 549,414 | ||||||
|
| |||||||
549,414 | ||||||||
|
| |||||||
TOTAL PREFERRED STOCKS | ||||||||
(Cost: $3,657,262) | 4,738,853 | |||||||
SHORT-TERM INVESTMENTS — 19.92% |
| |||||||
MONEY MARKET FUNDS — 19.92% |
| |||||||
BlackRock Cash Funds: Institutional, | ||||||||
1.58%d,e,f | 14,978,918 | 14,980,416 | ||||||
BlackRock Cash Funds: Treasury, | ||||||||
1.32%d,e | 42,068 | 42,068 | ||||||
|
| |||||||
15,022,484 | ||||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||||
(Cost: $15,022,839) | 15,022,484 | |||||||
|
|
20 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI GERMANY SMALL-CAP ETF
February 28, 2018
Value | ||||||||
TOTAL INVESTMENTS | ||||||||
(Cost: $84,534,886) | $ | 90,338,220 | ||||||
Other Assets, Less Liabilities — (19.77)% |
| (14,910,692 | ) | |||||
|
| |||||||
NET ASSETS — 100.00% | $ | 75,427,528 | ||||||
|
|
a | All or a portion of this security is on loan. |
b | Non-income producing security. |
c | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
d | Affiliate of the Fund. |
e | Annualized 7-day yield as of period end. |
f | All or a portion of this security was purchased with cash collateral received from loaned securities. |
Affiliates (Note 2)
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows:
Affiliated issuer | Shares held at 08/31/17 | Shares purchased | Shares sold | Shares held at 02/28/18 | Value at 02/28/18 | Income | Net realized gain (loss) a | Change in unrealized appreciation (depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, | 9,217,379 | 5,761,539 | b | — | 14,978,918 | $ | 14,980,416 | $ | 140,009 | c | $ | (1,811 | ) | $ | (961 | ) | ||||||||||||||||
BlackRock Cash Funds: Treasury, | 9,923 | 32,145 | b | — | 42,068 | 42,068 | 272 | — | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 15,022,484 | $ | 140,281 | $ | (1,811 | ) | $ | (961 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
a | Includes realized capital gain distributions from an affiliated fund, if any. |
b | Net of purchases and sales. |
c | Includes the Fund’s portion of securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. |
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments |
| |||||||||||||||
Assets |
| |||||||||||||||
Common stocks | $ | 70,576,883 | $ | — | $ | — | $ | 70,576,883 | ||||||||
Preferred stocks | 4,738,853 | — | — | 4,738,853 | ||||||||||||
Money market funds | 15,022,484 | — | — | 15,022,484 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 90,338,220 | $ | — | $ | — | $ | 90,338,220 | ||||||||
|
|
|
|
|
|
|
| |||||||||
See notes to financial statements.
SCHEDULES OF INVESTMENTS | 21 |
Table of Contents
Schedule of Investments (Unaudited)
February 28, 2018
Security | Shares | Value | ||||||
COMMON STOCKS — 99.74% |
| |||||||
AIRLINES — 3.64% |
| |||||||
Ryanair Holdings PLC ADRa | 21,530 | $ | 2,610,728 | |||||
|
| |||||||
2,610,728 | ||||||||
BANKS — 10.30% |
| |||||||
AIB Group PLC | 500,799 | 3,298,319 | ||||||
Bank of Ireland Group PLCa | 345,122 | 3,241,147 | ||||||
Permanent TSB Group Holdings PLCa | 348,835 | 843,255 | ||||||
|
| |||||||
7,382,721 | ||||||||
BEVERAGES — 1.96% |
| |||||||
C&C Group PLC | 397,777 | 1,402,080 | ||||||
|
| |||||||
1,402,080 | ||||||||
BUILDING PRODUCTS — 4.37% |
| |||||||
Kingspan Group PLC | 73,813 | 3,132,907 | ||||||
|
| |||||||
3,132,907 | ||||||||
CONSTRUCTION MATERIALS — 22.20% |
| |||||||
CRH PLC | 478,581 | 15,917,542 | ||||||
|
| |||||||
15,917,542 | ||||||||
CONTAINERS & PACKAGING — 4.46% |
| |||||||
Smurfit Kappa Group PLC | 91,387 | 3,198,908 | ||||||
|
| |||||||
3,198,908 | ||||||||
DIVERSIFIED FINANCIAL SERVICES — 0.21% |
| |||||||
IFG Group PLC | 58,681 | 150,298 | ||||||
|
| |||||||
150,298 | ||||||||
EQUITY REAL ESTATE INVESTMENT TRUSTS |
| |||||||
Green REIT PLC | 804,966 | 1,508,010 | ||||||
Hibernia REIT PLC | 843,323 | 1,460,554 | ||||||
Irish Residential Properties REIT PLC | 614,289 | 1,069,883 | ||||||
|
| |||||||
4,038,447 | ||||||||
FOOD & STAPLES RETAILING — 1.16% |
| |||||||
Total Produce PLC | 284,816 | 833,702 | ||||||
|
| |||||||
833,702 | ||||||||
FOOD PRODUCTS — 19.45% |
| |||||||
Glanbia PLC | 152,875 | 2,718,500 | ||||||
Kerry Group PLC Class A | 100,574 | 10,052,408 | ||||||
Origin Enterprises PLC | 168,814 | 1,173,596 | ||||||
|
| |||||||
13,944,504 | ||||||||
HEALTH CARE PROVIDERS & SERVICES — 3.55% |
| |||||||
UDG Healthcare PLC | 220,947 | 2,545,052 | ||||||
|
| |||||||
2,545,052 |
Security | Shares | Value | ||||||
HOTELS, RESTAURANTS & LEISURE — 10.39% |
| |||||||
Dalata Hotel Group PLCa | 216,670 | $ | 1,585,570 | |||||
Paddy Power Betfair PLC | 50,315 | 5,866,658 | ||||||
|
| |||||||
7,452,228 | ||||||||
HOUSEHOLD DURABLES — 1.64% |
| |||||||
Cairn Homes PLCa | 548,505 | 1,178,751 | ||||||
|
| |||||||
1,178,751 | ||||||||
INSURANCE — 0.32% |
| |||||||
FBD Holdings PLCa | 15,700 | 227,867 | ||||||
|
| |||||||
227,867 | ||||||||
INTERNET SOFTWARE & SERVICES — 0.22% |
| |||||||
Datalex PLC | 40,699 | 156,362 | ||||||
|
| |||||||
156,362 | ||||||||
LIFE SCIENCES TOOLS & SERVICES — 4.60% |
| |||||||
ICON PLCa | 29,081 | 3,295,168 | ||||||
|
| |||||||
3,295,168 | ||||||||
MARINE — 1.94% |
| |||||||
Irish Continental Group PLC | 202,748 | 1,387,250 | ||||||
|
| |||||||
1,387,250 | ||||||||
PROFESSIONAL SERVICES — 0.13% |
| |||||||
CPL Resources PLC | 11,568 | 90,297 | ||||||
|
| |||||||
90,297 | ||||||||
SPECIALTY RETAIL — 0.44% |
| |||||||
Applegreen PLC | 45,950 | 316,082 | ||||||
|
| |||||||
316,082 | ||||||||
TRADING COMPANIES & DISTRIBUTORS — 3.13% |
| |||||||
Grafton Group PLC | 213,170 | 2,246,931 | ||||||
|
| |||||||
2,246,931 | ||||||||
|
| |||||||
TOTAL COMMON STOCKS | ||||||||
(Cost: $65,384,862) | 71,507,825 | |||||||
SHORT-TERM INVESTMENTS — 0.02% |
| |||||||
MONEY MARKET FUNDS — 0.02% |
| |||||||
BlackRock Cash Funds: Treasury, | ||||||||
1.32%b,c | 13,338 | 13,338 | ||||||
|
| |||||||
13,338 | ||||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||||
(Cost: $13,338) | 13,338 | |||||||
|
|
22 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI IRELAND ETF
February 28, 2018
Value | ||||||||
TOTAL INVESTMENTS |
| |||||||
(Cost: $65,398,200) | $ | 71,521,163 | ||||||
Other Assets, Less Liabilities — 0.24% |
| 170,894 | ||||||
|
| |||||||
NET ASSETS — 100.00% | $ | 71,692,057 | ||||||
|
|
ADR — American Depositary Receipts
a | Non-income producing security. |
b | Affiliate of the Fund. |
c | Annualized 7-day yield as of period end. |
Affiliates (Note 2)
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows:
Affiliated issuer | Shares held at 08/31/17 | Shares purchased | Shares sold | Shares held at 02/28/18 | Value at 02/28/18 | Income | Net realized gain (loss) a | Change in unrealized appreciation (depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Treasury, | 6,869 | 6,469 | b | — | 13,338 | $ | 13,338 | $ | 206 | $ | — | $ | — | |||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
a | Includes realized capital gain distributions from an affiliated fund, if any. |
b | Net of purchases and sales. |
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments |
| |||||||||||||||
Assets |
| |||||||||||||||
Common stocks | $ | 71,507,825 | $ | — | $ | — | $ | 71,507,825 | ||||||||
Money market funds | 13,338 | — | — | 13,338 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 71,521,163 | $ | — | $ | — | $ | 71,521,163 | ||||||||
|
|
|
|
|
|
|
| |||||||||
See notes to financial statements.
SCHEDULES OF INVESTMENTS | 23 |
Table of Contents
Schedule of Investments (Unaudited)
February 28, 2018
Security | Shares | Value | ||||||
COMMON STOCKS — 99.90% |
| |||||||
AIR FREIGHT & LOGISTICS — 1.90% |
| |||||||
Freightways Ltd. | 512,768 | $ | 2,733,159 | |||||
|
| |||||||
2,733,159 | ||||||||
AIRLINES — 2.94% |
| |||||||
Air New Zealand Ltd. | 1,782,151 | 4,234,752 | ||||||
|
| |||||||
4,234,752 | ||||||||
CONSTRUCTION MATERIALS — 6.05% |
| |||||||
Fletcher Building Ltd. | 1,851,468 | 8,705,321 | ||||||
|
| |||||||
8,705,321 | ||||||||
DIVERSIFIED TELECOMMUNICATION SERVICES — 10.86% |
| |||||||
Chorus Ltd. | 1,345,312 | 3,633,977 | ||||||
Spark New Zealand Ltd. | 4,950,064 | 11,994,743 | ||||||
|
| |||||||
15,628,720 | ||||||||
ELECTRIC UTILITIES — 12.41% |
| |||||||
Contact Energy Ltd. | 1,682,828 | 6,417,432 | ||||||
Genesis Energy Ltd. | 1,649,125 | 2,810,950 | ||||||
Infratil Ltd. | 1,680,467 | 3,756,456 | ||||||
Mercury NZ Ltd. | 2,124,041 | 4,863,061 | ||||||
|
| |||||||
17,847,899 | ||||||||
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) — 8.74% |
| |||||||
Argosy Property Ltd. | 2,879,292 | 2,152,354 | ||||||
Goodman Property Trusta | 3,249,085 | 3,097,580 | ||||||
Kiwi Property Group Ltd. | 4,420,559 | 4,246,356 | ||||||
Precinct Properties New Zealand Ltd. | 3,346,749 | 3,069,831 | ||||||
|
| |||||||
12,566,121 | ||||||||
FOOD PRODUCTS — 11.92% |
| |||||||
a2 Milk Co. Ltd.b | 1,794,975 | 17,151,647 | ||||||
|
| |||||||
17,151,647 | ||||||||
HEALTH CARE EQUIPMENT & SUPPLIES — 10.74% |
| |||||||
Fisher & Paykel Healthcare Corp. Ltd. | 1,550,690 | 15,455,806 | ||||||
|
| |||||||
15,455,806 | ||||||||
HEALTH CARE PROVIDERS & SERVICES — 8.41% |
| |||||||
Metlifecare Ltd. | 573,065 | 2,462,683 | ||||||
Ryman Healthcare Ltd. | 833,476 | 6,429,126 | ||||||
Summerset Group Holdings Ltd. | 694,185 | 3,208,801 | ||||||
|
| |||||||
12,100,610 | ||||||||
HOTELS, RESTAURANTS & LEISURE — 4.01% |
| |||||||
SKYCITY Entertainment Group Ltd. | 2,044,901 | 5,760,026 | ||||||
|
| |||||||
5,760,026 |
Security | Shares | Value | ||||||
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS — 4.37% |
| |||||||
Meridian Energy Ltd. | 3,110,862 | $ | 6,291,097 | |||||
|
| |||||||
6,291,097 | ||||||||
INTERNET & DIRECT MARKETING RETAIL — 2.76% |
| |||||||
Trade Me Group Ltd. | 1,248,244 | 3,966,795 | ||||||
|
| |||||||
3,966,795 | ||||||||
MEDIA — 1.65% |
| |||||||
Sky Network Television Ltd. | 1,298,231 | 2,372,248 | ||||||
|
| |||||||
2,372,248 | ||||||||
OIL, GAS & CONSUMABLE FUELS — 4.77% |
| |||||||
New Zealand Refining Co. Ltd. (The) | 764,601 | 1,325,360 | ||||||
Z Energy Ltd.a | 1,094,827 | 5,535,172 | ||||||
|
| |||||||
6,860,532 | ||||||||
TRANSPORTATION INFRASTRUCTURE — 8.37% |
| |||||||
Auckland International Airport Ltd. | 2,585,188 | 12,043,132 | ||||||
|
| |||||||
12,043,132 | ||||||||
|
| |||||||
TOTAL COMMON STOCKS | ||||||||
(Cost: $137,387,342) | 143,717,865 | |||||||
SHORT-TERM INVESTMENTS — 0.27% |
| |||||||
MONEY MARKET FUNDS — 0.27% |
| |||||||
BlackRock Cash Funds: Institutional, |
| |||||||
1.58%c,d,e | 342,868 | 342,902 | ||||||
BlackRock Cash Funds: Treasury, |
| |||||||
1.34%c,d | 47,253 | 47,253 | ||||||
|
| |||||||
390,155 | ||||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS | ||||||||
(Cost: $390,121) | 390,155 | |||||||
|
| |||||||
TOTAL INVESTMENTS | ||||||||
(Cost: $137,777,463) | 144,108,020 | |||||||
Other Assets, Less Liabilities — (0.17)% |
| (238,806 | ) | |||||
|
| |||||||
NET ASSETS — 100.00% |
| $ | 143,869,214 | |||||
|
|
a | All or a portion of this security is on loan. |
b | Non-income producing security. |
c | Affiliate of the Fund. |
d | Annualized 7-day yield as of period end. |
e | All or a portion of this security was purchased with cash collateral received from loaned securities. |
24 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI NEW ZEALAND ETF
February 28, 2018
Affiliates (Note 2)
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows:
Affiliated issuer | Shares held at 08/31/17 | Shares purchased | Shares sold | Shares held at 02/28/18 | Value at 02/28/18 | Income | Net realized gain (loss) a | Change in unrealized appreciation (depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, | 4,229,991 | — | (3,887,123 | )b | 342,868 | $ | 342,902 | $ | 17,713 | c | $ | (604 | ) | $ | (395 | ) | ||||||||||||||||
BlackRock Cash Funds: Treasury, | 28,361 | 18,892 | b | — | 47,253 | 47,253 | 708 | — | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 390,155 | $ | 18,421 | $ | (604 | ) | $ | (395 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
a | Includes realized capital gain distributions from an affiliated fund, if any. |
b | Net of purchases and sales. |
c | Includes the Fund’s portion of securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. |
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common stocks | $ | 143,717,865 | $ | — | $ | — | $ | 143,717,865 | ||||||||
Money market funds | 390,155 | — | — | 390,155 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 144,108,020 | $ | — | $ | — | $ | 144,108,020 | ||||||||
|
|
|
|
|
|
|
| |||||||||
See notes to financial statements.
SCHEDULES OF INVESTMENTS | 25 |
Table of Contents
Schedule of Investments (Unaudited)
February 28, 2018
Security | Shares | Value | ||||||
COMMON STOCKS — 99.74% |
| |||||||
AIRLINES — 0.51% |
| |||||||
Norwegian Air Shuttle ASAa,b | 8,604 | $ | 195,543 | |||||
|
| |||||||
195,543 | ||||||||
AUTO COMPONENTS — 0.54% |
| |||||||
Kongsberg Automotive ASAa | 163,965 | 206,643 | ||||||
|
| |||||||
206,643 | ||||||||
BANKS — 15.78% |
| |||||||
DNB ASA | 231,908 | 4,607,521 | ||||||
Norwegian Finans Holding ASAa | 28,065 | 327,367 | ||||||
Sbanken ASAc | 18,716 | 188,653 | ||||||
SpareBank 1 Nord Norge | 34,221 | 297,646 | ||||||
Sparebank 1 Oestlandeta | 8,035 | 98,615 | ||||||
SpareBank 1 SMN | 39,774 | 466,470 | ||||||
|
| |||||||
5,986,272 | ||||||||
BIOTECHNOLOGY — 0.23% |
| |||||||
Nordic Nanovector ASAa,b | 9,805 | 87,022 | ||||||
|
| |||||||
87,022 | ||||||||
CHEMICALS — 5.12% |
| |||||||
Borregaard ASA | 32,030 | 302,549 | ||||||
Yara International ASA | 36,767 | 1,639,507 | ||||||
|
| |||||||
1,942,056 | ||||||||
CONSUMER FINANCE — 0.32% |
| |||||||
B2Holding ASA | 46,681 | 120,445 | ||||||
|
| |||||||
120,445 | ||||||||
DIVERSIFIED FINANCIAL SERVICES — 1.42% |
| |||||||
Aker ASA Class A | 7,706 | 440,156 | ||||||
Axactor ABa | 303,345 | 99,383 | ||||||
|
| |||||||
539,539 | ||||||||
DIVERSIFIED TELECOMMUNICATION SERVICES — 10.57% |
| |||||||
Telenor ASA | 177,372 | 4,010,891 | ||||||
|
| |||||||
4,010,891 | ||||||||
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 0.23% |
| |||||||
IDEX ASAa | 136,946 | 88,553 | ||||||
|
| |||||||
88,553 | ||||||||
ENERGY EQUIPMENT & SERVICES — 8.86% |
| |||||||
Akastor ASAa | 71,113 | 151,295 | ||||||
Aker Solutions ASAa | 48,315 | 275,662 | ||||||
Borr Drilling Ltd.a | 83,852 | 361,472 | ||||||
BW Offshore Ltd.a | 23,003 | 126,286 | ||||||
Ocean Yield ASA | 20,794 | 192,461 | ||||||
Odfjell Drilling Ltd.a | 14,877 | 69,697 |
Security | Shares | Value | ||||||
Petroleum Geo-Services ASAa | 100,463 | $ | 324,173 | |||||
Subsea 7 SA | 73,963 | 1,125,795 | ||||||
TGS NOPEC Geophysical Co. ASA | 29,812 | 732,911 | ||||||
|
| |||||||
3,359,752 | ||||||||
FOOD PRODUCTS — 14.49% |
| |||||||
Austevoll Seafood ASA | 28,858 | 259,781 | ||||||
Bakkafrost P/F | 11,471 | 581,760 | ||||||
Grieg Seafood ASA | 12,542 | 110,916 | ||||||
Leroy Seafood Group ASA | 89,192 | 535,236 | ||||||
Marine Harvest ASA | 86,336 | 1,681,927 | ||||||
Norway Royal Salmon ASA | 3,282 | 62,834 | ||||||
Orkla ASA | 157,109 | 1,725,448 | ||||||
Salmar ASA | 15,037 | 537,642 | ||||||
|
| |||||||
5,495,544 | ||||||||
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS — 0.40% |
| |||||||
Scatec Solar ASAc | 27,504 | 150,996 | ||||||
|
| |||||||
150,996 | ||||||||
INSURANCE — 6.26% |
| |||||||
Gjensidige Forsikring ASA | 55,581 | 1,019,008 | ||||||
Protector Forsikring ASAb | 20,537 | 236,171 | ||||||
Storebrand ASA | 127,291 | 1,120,056 | ||||||
|
| |||||||
2,375,235 | ||||||||
INTERNET SOFTWARE & SERVICES — 0.46% |
| |||||||
Gaming Innovation Group Inc.a | 89,170 | 65,122 | ||||||
Otello Corp. ASAa | 36,122 | 108,085 | ||||||
|
| |||||||
173,207 | ||||||||
IT SERVICES — 1.44% |
| |||||||
Atea ASA | 25,558 | 405,708 | ||||||
Evry ASa,c | 37,144 | 138,929 | ||||||
|
| |||||||
544,637 | ||||||||
MACHINERY — 0.28% |
| |||||||
Hexagon Composites ASAa,b | 35,272 | 107,331 | ||||||
|
| |||||||
107,331 | ||||||||
MARINE — 1.71% |
| |||||||
Golden Ocean Group Ltd.a,b | 33,919 | 313,942 | ||||||
Stolt-Nielsen Ltd. | 9,827 | 130,078 | ||||||
Wallenius Wilhelmsen Logisticsa | 26,455 | 203,265 | ||||||
|
| |||||||
647,285 | ||||||||
MEDIA — 1.66% |
| |||||||
Schibsted ASA Class B | 25,641 | 629,394 | ||||||
|
| |||||||
629,394 |
26 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI NORWAY ETF
February 28, 2018
Security | Shares | Value | ||||||
METALS & MINING — 5.26% |
| |||||||
Norsk Hydro ASA | 293,329 | $ | 1,994,924 | |||||
|
| |||||||
1,994,924 | ||||||||
MULTILINE RETAIL — 0.35% |
| |||||||
Europris ASAc | 39,610 | 132,584 | ||||||
|
| |||||||
132,584 | ||||||||
OIL, GAS & CONSUMABLE FUELS — 20.43% |
| |||||||
Aker BP ASA | 29,424 | 737,176 | ||||||
BW LPG Ltd.a,b,c | 26,533 | 117,239 | ||||||
DNO ASAa | 210,136 | 287,745 | ||||||
Frontline Ltd./Bermudab | 25,923 | 103,007 | ||||||
Hoegh LNG Holdings Ltd. | 15,958 | 115,328 | ||||||
Statoil ASA | 276,556 | 6,390,477 | ||||||
|
| |||||||
7,750,972 | ||||||||
REAL ESTATE MANAGEMENT & DEVELOPMENT — 1.57% |
| |||||||
Entra ASAc | 28,726 | 399,908 | ||||||
Norwegian Property ASA | 71,831 | 97,267 | ||||||
Selvaag Bolig ASA | 21,249 | 99,683 | ||||||
|
| |||||||
596,858 | ||||||||
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 0.97% |
| |||||||
Nordic Semiconductor ASAa,b | 40,696 | 237,352 | ||||||
REC Silicon ASAa,b | 714,948 | 131,258 | ||||||
|
| |||||||
368,610 | ||||||||
SPECIALTY RETAIL — 0.88% |
| |||||||
XXL ASAc | 29,133 | 332,807 | ||||||
|
| |||||||
332,807 | ||||||||
|
| |||||||
TOTAL COMMON STOCKS | ||||||||
(Cost: $36,205,712) | 37,837,100 |
Security | Shares | Value | ||||||
SHORT-TERM INVESTMENTS — 2.83% |
| |||||||
MONEY MARKET FUNDS — 2.83% |
| |||||||
BlackRock Cash Funds: Institutional, | ||||||||
1.58%d,e,f | 1,069,648 | $ | 1,069,755 | |||||
BlackRock Cash Funds: Treasury, | ||||||||
1.32%d,e | 4,993 | 4,993 | ||||||
|
| |||||||
1,074,748 | ||||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||||
(Cost: $1,074,678) | 1,074,748 | |||||||
|
| |||||||
TOTAL INVESTMENTS | ||||||||
(Cost: $37,280,390) | 38,911,848 | |||||||
Other Assets, Less Liabilities — (2.57)% |
| (975,346 | ) | |||||
|
| |||||||
NET ASSETS — 100.00% |
| $ | 37,936,502 | |||||
|
|
a | Non-income producing security. |
b | All or a portion of this security is on loan. |
c | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
d | Affiliate of the Fund. |
e | Annualized 7-day yield as of period end. |
f | All or a portion of this security was purchased with cash collateral received from loaned securities. |
Affiliates (Note 2)
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows:
Affiliated issuer | Shares held at 08/31/17 | Shares purchased | Shares sold | Shares held at 02/28/18 | Value at 02/28/18 | Income | Net realized gain (loss) a | Change in unrealized appreciation (depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, | 1,857,569 | — | (787,921 | )b | 1,069,648 | $ | 1,069,755 | $ | 24,773 | c | $ | (272 | ) | $ | (141 | ) | ||||||||||||||||
BlackRock Cash Funds: Treasury, | 6,181 | — | (1,188 | )b | 4,993 | 4,993 | 110 | — | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 1,074,748 | $ | 24,883 | $ | (272 | ) | $ | (141 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
a | Includes realized capital gain distributions from an affiliated fund, if any. |
b | Net of purchases and sales. |
c | Includes the Fund’s portion of securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. |
SCHEDULES OF INVESTMENTS | 27 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI NORWAY ETF
February 28, 2018
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common stocks | $ | 37,837,100 | $ | — | $ | — | $ | 37,837,100 | ||||||||
Money market funds | 1,074,748 | — | — | 1,074,748 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 38,911,848 | $ | — | $ | — | $ | 38,911,848 | ||||||||
|
|
|
|
|
|
|
| |||||||||
See notes to financial statements.
28 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Assets and Liabilities (Unaudited)
iSHARES® TRUST
February 28, 2018
iShares MSCI ETF | iShares MSCI ETF | iShares MSCI Germany | ||||||||||
ASSETS | ||||||||||||
Investments in securities, at cost: | ||||||||||||
Unaffiliated | $ | 51,835,734 | $ | 37,727,751 | $ | 69,512,047 | ||||||
Affiliated (Note 2) | 181,825 | 324,512 | 15,022,839 | |||||||||
|
|
|
|
|
| |||||||
Total cost of investments in securities | $ | 52,017,559 | $ | 38,052,263 | $ | 84,534,886 | ||||||
|
|
|
|
|
| |||||||
Investments in securities, at fair value (including securities on loana) (Note 1): | ||||||||||||
Unaffiliated | $ | 57,842,193 | $ | 42,097,483 | $ | 75,315,736 | ||||||
Affiliated (Note 2) | 181,828 | 324,512 | 15,022,484 | |||||||||
Foreign currency, at valueb | 41,428 | 30,611 | 88,203 | |||||||||
Receivables: | ||||||||||||
Investment securities sold | 394,307 | 564,891 | 443,009 | |||||||||
Dividends and interest | 760 | 134,832 | 39,451 | |||||||||
Tax reclaims | 422,337 | — | 48,794 | |||||||||
Foreign withholding tax claims (Note 7) | — | 366,404 | — | |||||||||
|
|
|
|
|
| |||||||
Total Assets | 58,882,853 | 43,518,733 | 90,957,677 | |||||||||
|
|
|
|
|
| |||||||
LIABILITIES | ||||||||||||
Payables: | ||||||||||||
Investment securities purchased | 386,544 | 565,897 | 512,338 | |||||||||
Collateral for securities on loan (Note 1) | 172,075 | 322,818 | 14,982,186 | |||||||||
IRS compliance fee for foreign withholding tax claims (Note 7) | — | 99,047 | — | |||||||||
Professional fees (Note 7) | — | 53,664 | — | |||||||||
Investment advisory fees (Note 2) | 24,119 | 17,990 | 35,625 | |||||||||
|
|
|
|
|
| |||||||
Total Liabilities | 582,738 | 1,059,416 | 15,530,149 | |||||||||
|
|
|
|
|
| |||||||
NET ASSETS | $ | 58,300,115 | $ | 42,459,317 | $ | 75,427,528 | ||||||
|
|
|
|
|
| |||||||
Net assets consist of: | ||||||||||||
Paid-in capital | $ | 51,393,375 | $ | 36,662,580 | $ | 63,847,978 | ||||||
Undistributed (distributions in excess of) net investment income | (414,937 | ) | 236,204 | (34,456 | ) | |||||||
Undistributed net realized gain | 1,278,250 | 1,160,872 | 5,808,253 | |||||||||
Net unrealized appreciation | 6,043,427 | 4,399,661 | 5,805,753 | |||||||||
|
|
|
|
|
| |||||||
NET ASSETS | $ | 58,300,115 | $ | 42,459,317 | $ | 75,427,528 | ||||||
|
|
|
|
|
| |||||||
Shares outstandingc | 850,000 | 1,000,000 | 1,150,000 | |||||||||
|
|
|
|
|
| |||||||
Net asset value per share | $ | 68.59 | $ | 42.46 | $ | 65.59 | ||||||
|
|
|
|
|
|
a | Securities on loan with values of $161,775, $304,772 and $14,299,345, respectively. See Note 1. |
b | Cost of foreign currency: $42,121, $31,291 and $89,403, respectively. |
c | No par value, unlimited number of shares authorized. |
See notes to financial statements.
FINANCIAL STATEMENTS | 29 |
Table of Contents
Statements of Assets and Liabilities (Unaudited) (Continued)
iSHARES® TRUST
February 28, 2018
iShares MSCI ETF | iShares MSCI New Zealand ETF | iShares MSCI ETF | ||||||||||
ASSETS | ||||||||||||
Investments in securities, at cost: | ||||||||||||
Unaffiliated | $ | 65,384,862 | $ | 137,387,342 | $ | 36,205,712 | ||||||
Affiliated (Note 2) | 13,338 | 390,121 | 1,074,678 | |||||||||
|
|
|
|
|
| |||||||
Total cost of investments in securities | $ | 65,398,200 | $ | 137,777,463 | $ | 37,280,390 | ||||||
|
|
|
|
|
| |||||||
Investments in securities, at fair valuea (Note 1): | ||||||||||||
Unaffiliated | $ | 71,507,825 | $ | 143,717,865 | $ | 37,837,100 | ||||||
Affiliated (Note 2) | 13,338 | 390,155 | 1,074,748 | |||||||||
Foreign currency, at valueb | 43,924 | 68,843 | 12,004 | |||||||||
Receivables: | ||||||||||||
Investment securities sold | 1,810,872 | 3,468,387 | 139,632 | |||||||||
Dividends | 923 | 159 | 78,324 | |||||||||
Tax reclaims | 30,074 | — | 2,264 | |||||||||
|
|
|
|
|
| |||||||
Total Assets | 73,406,956 | 147,645,409 | 39,144,072 | |||||||||
|
|
|
|
|
| |||||||
LIABILITIES | ||||||||||||
Payables: | ||||||||||||
Investment securities purchased | 1,688,680 | 3,381,885 | 122,653 | |||||||||
Collateral for securities on loan (Note 1) | — | 343,716 | 1,069,662 | |||||||||
Investment advisory fees (Note 2) | 26,219 | 50,594 | 15,255 | |||||||||
|
|
|
|
|
| |||||||
Total Liabilities | 1,714,899 | 3,776,195 | 1,207,570 | |||||||||
|
|
|
|
|
| |||||||
NET ASSETS | $ | 71,692,057 | $ | 143,869,214 | $ | 37,936,502 | ||||||
|
|
|
|
|
| |||||||
Net assets consist of: | ||||||||||||
Paid-in capital | $ | 71,896,694 | $ | 139,353,738 | $ | 40,403,220 | ||||||
Undistributed (distributions in excess of) net investment income | (396,636 | ) | 114,888 | 53,239 | ||||||||
Accumulated net realized loss | (5,932,912 | ) | (1,928,268 | ) | (4,151,327 | ) | ||||||
Net unrealized appreciation | 6,124,911 | 6,328,856 | 1,631,370 | |||||||||
|
|
|
|
|
| |||||||
NET ASSETS | $ | 71,692,057 | $ | 143,869,214 | $ | 37,936,502 | ||||||
|
|
|
|
|
| |||||||
Shares outstandingc | 1,550,000 | 2,950,000 | 1,400,000 | |||||||||
|
|
|
|
|
| |||||||
Net asset value per share | $ | 46.25 | $ | 48.77 | $ | 27.10 | ||||||
|
|
|
|
|
|
a | Securities on loan with values of $ —, $324,323 and $1,009,238, respectively. See Note 1. |
b | Cost of foreign currency: $44,302, $70,544 and $12,136, respectively. |
c | No par value, unlimited number of shares authorized. |
See notes to financial statements.
30 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Operations (Unaudited)
iSHARES® TRUST
Six months ended February 28, 2018
iShares MSCI ETF | iShares MSCI ETF | iShares MSCI Germany | ||||||||||
NET INVESTMENT INCOME | ||||||||||||
Dividends — unaffiliateda | $ | 123,621 | $ | 175,775 | $ | 44,360 | ||||||
Dividends — affiliated (Note 2) | 190 | 123 | 272 | |||||||||
Securities lending income — affiliated — net (Note 2) | 7,602 | 3,252 | 140,009 | |||||||||
|
|
|
|
|
| |||||||
Total investment income | 131,413 | 179,150 | 184,641 | |||||||||
|
|
|
|
|
| |||||||
EXPENSES | ||||||||||||
Investment advisory fees (Note 2) | 172,275 | 124,466 | 184,281 | |||||||||
Proxy fees | 7 | 4 | 3 | |||||||||
|
|
|
|
|
| |||||||
Total expenses | 172,282 | 124,470 | 184,284 | |||||||||
|
|
|
|
|
| |||||||
Net investment income (loss) | (40,869 | ) | 54,680 | 357 | ||||||||
|
|
|
|
|
| |||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||
Net realized gain (loss) from: | ||||||||||||
Investments — unaffiliated | 50,729 | (32,365 | ) | (428,935 | ) | |||||||
Investments — affiliated (Note 2) | (131 | ) | (100 | ) | (1,811 | ) | ||||||
In-kind redemptions — unaffiliated | 3,978,020 | 2,618,733 | 7,094,199 | |||||||||
Foreign currency transactions | 24,087 | 240 | 5,838 | |||||||||
|
|
|
|
|
| |||||||
Net realized gain | 4,052,705 | 2,586,508 | 6,669,291 | |||||||||
|
|
|
|
|
| |||||||
Net change in unrealized appreciation/depreciation on: | ||||||||||||
Investments — unaffiliated | (3,093,725 | ) | 366,221 | 305,227 | ||||||||
Investments — affiliated (Note 2) | (154 | ) | 19 | (961 | ) | |||||||
Translation of assets and liabilities in foreign currencies | (7,557 | ) | 7,756 | (917 | ) | |||||||
|
|
|
|
|
| |||||||
Net change in unrealized appreciation/depreciation | (3,101,436 | ) | 373,996 | 303,349 | ||||||||
|
|
|
|
|
| |||||||
Net realized and unrealized gain | 951,269 | 2,960,504 | 6,972,640 | |||||||||
|
|
|
|
|
| |||||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 910,400 | $ | 3,015,184 | $ | 6,972,997 | ||||||
|
|
|
|
|
|
a | Net of foreign withholding tax of $18,330, $ — and $7,689, respectively. |
See notes to financial statements.
FINANCIAL STATEMENTS | 31 |
Table of Contents
Statements of Operations (Unaudited) (Continued)
iSHARES® TRUST
Six months ended February 28, 2018
iShares MSCI ETF | iShares MSCI New Zealand ETF | iShares MSCI ETF | ||||||||||
NET INVESTMENT INCOME | ||||||||||||
Dividends — unaffiliateda | $ | 332,406 | $ | 3,092,086 | $ | 347,617 | ||||||
Dividends — affiliated (Note 2) | 206 | 708 | 110 | |||||||||
Securities lending income — affiliated — net (Note 2) | — | 17,713 | 24,773 | |||||||||
|
|
|
|
|
| |||||||
Total investment income | 332,612 | 3,110,507 | 372,500 | |||||||||
|
|
|
|
|
| |||||||
EXPENSES | ||||||||||||
Investment advisory fees (Note 2) | 169,025 | 367,007 | 96,078 | |||||||||
Proxy fees | 8 | 17 | 3 | |||||||||
|
|
|
|
|
| |||||||
Total expenses | 169,033 | 367,024 | 96,081 | |||||||||
|
|
|
|
|
| |||||||
Net investment income | 163,579 | 2,743,483 | 276,419 | |||||||||
|
|
|
|
|
| |||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||
Net realized gain (loss) from: | ||||||||||||
Investments — unaffiliated | 198,338 | 402,030 | (1,369,828 | ) | ||||||||
Investments — affiliated (Note 2) | — | (604 | ) | (272 | ) | |||||||
In-kind redemptions — unaffiliated | 420,557 | 8,075,489 | 1,634,963 | |||||||||
Foreign currency transactions | 7,324 | (25,611 | ) | (1,938 | ) | |||||||
|
|
|
|
|
| |||||||
Net realized gain | 626,219 | 8,451,304 | 262,925 | |||||||||
|
|
|
|
|
| |||||||
Net change in unrealized appreciation/depreciation on: | ||||||||||||
Investments — unaffiliated | 3,519,127 | (941,150 | ) | 2,154,410 | ||||||||
Investments — affiliated (Note 2) | — | (395 | ) | (141 | ) | |||||||
Translation of assets and liabilities in foreign currencies | (2,738 | ) | 3,834 | (2,046 | ) | |||||||
|
|
|
|
|
| |||||||
Net change in unrealized appreciation/depreciation | 3,516,389 | (937,711 | ) | 2,152,223 | ||||||||
|
|
|
|
|
| |||||||
Net realized and unrealized gain | 4,142,608 | 7,513,593 | 2,415,148 | |||||||||
|
|
|
|
|
| |||||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 4,306,187 | $ | 10,257,076 | $ | 2,691,567 | ||||||
|
|
|
|
|
|
a | Net of foreign withholding tax of $10,745, $516,620 and $87,508, respectively. |
See notes to financial statements.
32 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Changes in Net Assets
iSHARES® TRUST
iShares MSCI Denmark ETF | iShares MSCI Finland ETF | |||||||||||||||
Six months February 28, 2018 (Unaudited) | Year ended August 31, 2017 | Six months February 28, 2018 (Unaudited) | Year ended August 31, 2017 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income (loss) | $ | (40,869 | ) | $ | 942,554 | $ | 54,680 | $ | 1,056,741 | |||||||
Net realized gain | 4,052,705 | 1,331,870 | 2,586,508 | 1,434,432 | ||||||||||||
Net change in unrealized appreciation/depreciation | (3,101,436 | ) | 11,547,467 | 373,996 | 4,990,134 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase in net assets resulting from operations | 910,400 | 13,821,891 | 3,015,184 | 7,481,307 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
From net investment income | (511,128 | ) | (836,072 | ) | (204,351 | ) | (1,105,599 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions to shareholders | (511,128 | ) | (836,072 | ) | (204,351 | ) | (1,105,599 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Proceeds from shares sold | 6,779,139 | 18,534,807 | 5,952,407 | 16,349,774 | ||||||||||||
Cost of shares redeemed | (16,445,736 | ) | (11,881,614 | ) | (12,057,205 | ) | (15,140,002 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets from capital share transactions | (9,666,597 | ) | 6,653,193 | (6,104,798 | ) | 1,209,772 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
INCREASE (DECREASE) IN NET ASSETS | (9,267,325 | ) | 19,639,012 | (3,293,965 | ) | 7,585,480 | ||||||||||
NET ASSETS | ||||||||||||||||
Beginning of period | 67,567,440 | 47,928,428 | 45,753,282 | 38,167,802 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 58,300,115 | $ | 67,567,440 | $ | 42,459,317 | $ | 45,753,282 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed (distributions in excess of) net investment income included in net assets at end of period | $ | (414,937 | ) | $ | 137,060 | $ | 236,204 | $ | 385,875 | |||||||
|
|
|
|
|
|
|
| |||||||||
SHARES ISSUED AND REDEEMED | ||||||||||||||||
Shares sold | 100,000 | 350,000 | 150,000 | 450,000 | ||||||||||||
Shares redeemed | (250,000 | ) | (200,000 | ) | (300,000 | ) | (450,000 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in shares outstanding | (150,000 | ) | 150,000 | (150,000 | ) | — | ||||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
FINANCIAL STATEMENTS | 33 |
Table of Contents
Statements of Changes in Net Assets (Continued)
iSHARES® TRUST
iShares MSCI Germany Small-Cap ETF | iShares MSCI Ireland ETF | |||||||||||||||
Six months February 28, 2018 (Unaudited) | Year ended August 31, 2017 | Six months February 28, 2018 (Unaudited) | Year ended August 31, 2017 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income | $ | 357 | $ | 408,823 | $ | 163,579 | $ | 923,504 | ||||||||
Net realized gain | 6,669,291 | 1,805,486 | 626,219 | 2,238,772 | ||||||||||||
Net change in unrealized appreciation/depreciation | 303,349 | 5,157,118 | 3,516,389 | 2,940,920 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase in net assets resulting from operations | 6,972,997 | 7,371,427 | 4,306,187 | 6,103,196 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
From net investment income | (117,105 | ) | (381,496 | ) | (512,697 | ) | (871,114 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions to shareholders | (117,105 | ) | (381,496 | ) | (512,697 | ) | (871,114 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Proceeds from shares sold | 50,859,271 | 16,661,561 | 2,349,709 | — | ||||||||||||
Cost of shares redeemed | (22,312,399 | ) | (7,405,237 | ) | (2,333,938 | ) | (61,944,840 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets from capital share transactions | 28,546,872 | 9,256,324 | 15,771 | (61,944,840 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
INCREASE (DECREASE) IN NET ASSETS | 35,402,764 | 16,246,255 | 3,809,261 | (56,712,758 | ) | |||||||||||
NET ASSETS | ||||||||||||||||
Beginning of period | 40,024,764 | 23,778,509 | 67,882,796 | 124,595,554 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 75,427,528 | $ | 40,024,764 | $ | 71,692,057 | $ | 67,882,796 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed (distributions in excess of) net investment income included in net assets at end of period | $ | (34,456 | ) | $ | 82,292 | $ | (396,636 | ) | $ | (47,518 | ) | |||||
|
|
|
|
|
|
|
| |||||||||
SHARES ISSUED AND REDEEMED | ||||||||||||||||
Shares sold | 800,000 | 300,000 | 50,000 | — | ||||||||||||
Shares redeemed | (350,000 | ) | (150,000 | ) | (50,000 | ) | (1,650,000 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in shares outstanding | 450,000 | 150,000 | — | (1,650,000 | ) | |||||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
34 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Changes in Net Assets (Continued)
iSHARES® TRUST
iShares MSCI New Zealand ETF | iShares MSCI Norway ETF | |||||||||||||||
Six months February 28, 2018 (Unaudited) | Year ended August 31, 2017 | Six months February 28, 2018 (Unaudited) | Year ended August 31, 2017 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income | $ | 2,743,483 | $ | 6,709,353 | $ | 276,419 | $ | 873,806 | ||||||||
Net realized gain (loss) | 8,451,304 | 11,271,733 | 262,925 | (155,417 | ) | |||||||||||
Net change in unrealized appreciation/depreciation | (937,711 | ) | (15,310,965 | ) | 2,152,223 | 6,349,667 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase in net assets resulting from operations | 10,257,076 | 2,670,121 | 2,691,567 | 7,068,056 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
From net investment income | (2,753,619 | ) | (6,894,546 | ) | (259,638 | ) | (906,184 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions to shareholders | (2,753,619 | ) | (6,894,546 | ) | (259,638 | ) | (906,184 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Proceeds from shares sold | 16,540,819 | 73,025,811 | 10,380,943 | 8,971,994 | ||||||||||||
Cost of shares redeemed | (55,965,355 | ) | (64,193,780 | ) | (7,465,489 | ) | (9,006,484 | ) | ||||||||
|
|
|
|
|
|
|
| �� | ||||||||
Net increase (decrease) in net assets from capital share transactions | (39,424,536 | ) | 8,832,031 | 2,915,454 | (34,490 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
INCREASE (DECREASE) IN NET ASSETS | (31,921,079 | ) | 4,607,606 | 5,347,383 | 6,127,382 | |||||||||||
NET ASSETS | ||||||||||||||||
Beginning of period | 175,790,293 | 171,182,687 | 32,589,119 | 26,461,737 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 143,869,214 | $ | 175,790,293 | $ | 37,936,502 | $ | 32,589,119 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed net investment income included in net assets at end of period | $ | 114,888 | $ | 125,024 | $ | 53,239 | $ | 36,458 | ||||||||
|
|
|
|
|
|
|
| |||||||||
SHARES ISSUED AND REDEEMED | ||||||||||||||||
Shares sold | 350,000 | 1,650,000 | 400,000 | 400,000 | ||||||||||||
Shares redeemed | (1,200,000 | ) | (1,500,000 | ) | (300,000 | ) | (400,000 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in shares outstanding | (850,000 | ) | 150,000 | 100,000 | — | |||||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
FINANCIAL STATEMENTS | 35 |
Table of Contents
iSHARES® TRUST
(For a share outstanding throughout each period)
iShares MSCI Denmark ETF | ||||||||||||||||||||||||
Six months ended Feb. 28, 2018 (Unaudited) | Year ended Aug. 31, 2017 | Year ended Aug. 31, 2016 | Year ended Aug. 31, 2015 | Year ended Aug. 31, 2014 | Year ended Aug. 31, 2013 | |||||||||||||||||||
Net asset value, beginning of period | $ | 67.57 | $ | 56.39 | $ | 53.99 | $ | 50.53 | $ | 37.64 | $ | 29.32 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)a | (0.04 | ) | 0.94 | 0.76 | 0.84 | 0.65 | 0.33 | |||||||||||||||||
Net realized and unrealized gainb | 1.63 | 11.07 | 2.27 | 3.43 | 12.66 | 8.40 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 1.59 | 12.01 | 3.03 | 4.27 | 13.31 | 8.73 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.57 | ) | (0.83 | ) | (0.63 | ) | (0.81 | ) | (0.42 | ) | (0.41 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | (0.57 | ) | (0.83 | ) | (0.63 | ) | (0.81 | ) | (0.42 | ) | (0.41 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 68.59 | $ | 67.57 | $ | 56.39 | $ | 53.99 | $ | 50.53 | $ | 37.64 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total return | 2.38 | %c | 21.43 | % | 5.63 | % | 8.43 | % | 35.33 | % | 29.94 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 58,300 | $ | 67,567 | $ | 47,928 | $ | 48,594 | $ | 60,635 | $ | 9,410 | ||||||||||||
Ratio of expenses to average net assetsd | 0.53 | % | 0.53 | % | 0.53 | % | 0.53 | % | 0.53 | % | 0.53 | % | ||||||||||||
Ratio of net investment income (loss) to average net assetsd | (0.13 | )% | 1.66 | % | 1.38 | % | 1.62 | % | 1.32 | % | 0.96 | % | ||||||||||||
Portfolio turnover ratee | 7 | %c | 14 | % | 40 | % | 9 | % | 9 | % | 12 | % |
a | Based on average shares outstanding throughout each period. |
b | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
36 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Financial Highlights (Continued)
iSHARES® TRUST
(For a share outstanding throughout each period)
iShares MSCI Finland ETF | ||||||||||||||||||||||||
Six months ended Feb. 28, 2018 (Unaudited) | Year ended Aug. 31, 2017 | Year ended Aug. 31, 2016 | Year ended Aug. 31, 2015 | Year ended Aug. 31, 2014 | Year ended Aug. 31, 2013 | |||||||||||||||||||
Net asset value, beginning of period | $ | 39.79 | $ | 33.19 | $ | 31.32 | $ | 34.52 | $ | 27.57 | $ | 22.10 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.05 | 1.02 | 1.51 | b | 0.56 | 1.72 | 0.90 | |||||||||||||||||
Net realized and unrealized gain (loss)c | 2.78 | 6.74 | 1.13 | (3.25 | ) | 6.37 | 5.47 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 2.83 | 7.76 | 2.64 | (2.69 | ) | 8.09 | 6.37 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.16 | ) | (1.16 | ) | (0.77 | ) | (0.51 | ) | (1.14 | ) | (0.90 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | (0.16 | ) | (1.16 | ) | (0.77 | ) | (0.51 | ) | (1.14 | ) | (0.90 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 42.46 | $ | 39.79 | $ | 33.19 | $ | 31.32 | $ | 34.52 | $ | 27.57 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total return | 7.17 | %d | 23.32 | % | 8.60 | %b | (7.90 | )% | 29.25 | % | 29.10 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 42,459 | $ | 45,753 | $ | 38,168 | $ | 23,488 | $ | 36,246 | $ | 9,651 | ||||||||||||
Ratio of expenses to average net assetse | 0.53 | % | 0.55 | % | 0.72 | % | 0.53 | % | 0.53 | % | 0.53 | % | ||||||||||||
Ratio of expenses to average net assets excluding professional fees for foreign withholding tax claims (Note 7)e | n/a | 0.53 | % | 0.53 | % | n/a | n/a | n/a | ||||||||||||||||
Ratio of net investment income to average net assetse | 0.23 | % | 2.84 | % | 4.72 | %b | 1.68 | % | 4.95 | % | 3.38 | % | ||||||||||||
Portfolio turnover ratef | 4 | %d | 12 | % | 21 | % | 12 | % | 14 | % | 12 | % |
a | Based on average shares outstanding throughout each period. |
b | Reflects the one-time, positive effect of foreign withholding tax claims, net of the associated IRS compliance fees and professional fees (See Note 7), which resulted in the following increases: |
• | Net investment income per share by $0.42 |
• | Total return by 1.05% |
• | Ratio of net investment income to average net assets by 1.32% |
c | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
d | Not annualized. |
e | Annualized for periods of less than one year. |
f | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 37 |
Table of Contents
Financial Highlights (Continued)
iSHARES® TRUST
(For a share outstanding throughout each period)
iShares MSCI Germany Small-Cap ETF | ||||||||||||||||||||||||
Six months ended Feb. 28, 2018 (Unaudited) | Year ended Aug. 31, 2017 | Year ended Aug. 31, 2016 | Year ended Aug. 31, 2015 | Year ended Aug. 31, 2014 | Year ended Aug. 31, 2013 | |||||||||||||||||||
Net asset value, beginning of period | $ | 57.18 | $ | 43.23 | $ | 40.03 | $ | 38.93 | $ | 34.54 | $ | 26.69 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.00 | b | 0.78 | 0.71 | 0.53 | 0.70 | 0.67 | |||||||||||||||||
Net realized and unrealized gainc | 8.53 | 13.87 | 3.16 | 1.26 | 4.26 | 7.81 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 8.53 | 14.65 | 3.87 | 1.79 | 4.96 | 8.48 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.12 | ) | (0.70 | ) | (0.67 | ) | (0.69 | ) | (0.57 | ) | (0.63 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | (0.12 | ) | (0.70 | ) | (0.67 | ) | (0.69 | ) | (0.57 | ) | (0.63 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 65.59 | $ | 57.18 | $ | 43.23 | $ | 40.03 | $ | 38.93 | $ | 34.54 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total return | 14.93 | %d | 34.12 | % | 9.72 | % | 4.61 | % | 14.21 | % | 31.93 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 75,428 | $ | 40,025 | $ | 23,779 | $ | 26,023 | $ | 36,983 | $ | 10,363 | ||||||||||||
Ratio of expenses to average net assetse | 0.59 | % | 0.59 | % | 0.59 | % | 0.59 | % | 0.59 | % | 0.59 | % | ||||||||||||
Ratio of net investment income to average net assetse | 0.00 | %f | 1.65 | % | 1.73 | % | 1.36 | % | 1.72 | % | 2.09 | % | ||||||||||||
Portfolio turnover rateg | 6 | %d | 14 | % | 12 | % | 18 | % | 15 | % | 19 | % |
a | Based on average shares outstanding throughout each period. |
b | Rounds to less than $0.01. |
c | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
d | Not annualized. |
e | Annualized for periods of less than one year. |
f | Rounds to less than 0.01%. |
g | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
38 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Financial Highlights (Continued)
iSHARES® TRUST
(For a share outstanding throughout each period)
iShares MSCI Ireland ETF | ||||||||||||||||||||||||
Six months ended Feb. 28, 2018 (Unaudited) | Year ended Aug. 31, 2017 | Year ended Aug. 31, 2016 | Year ended Aug. 31, 2015 | Year ended Aug. 31, 2014 | Year ended Aug. 31, 2013 | |||||||||||||||||||
Net asset value, beginning of period | $ | 43.80 | $ | 38.94 | $ | 40.34 | $ | 35.27 | $ | 31.16 | $ | 20.90 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.11 | 0.47 | 0.49 | 0.52 | b | 0.47 | 0.56 | |||||||||||||||||
Net realized and unrealized gain (loss)c | 2.68 | 4.94 | (1.33 | ) | 5.43 | 4.32 | 10.06 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 2.79 | 5.41 | (0.84 | ) | 5.95 | 4.79 | 10.62 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.34 | ) | (0.55 | ) | (0.56 | ) | (0.62 | ) | (0.68 | ) | (0.36 | ) | ||||||||||||
Net realized gain | — | — | — | (0.26 | ) | — | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | (0.34 | ) | (0.55 | ) | (0.56 | ) | (0.88 | ) | (0.68 | ) | (0.36 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 46.25 | $ | 43.80 | $ | 38.94 | $ | 40.34 | $ | 35.27 | $ | 31.16 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total return | 6.36 | %d | 13.99 | % | (2.12 | )% | 17.10 | % | 15.45 | % | 51.07 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 71,692 | $ | 67,883 | $ | 124,596 | $ | 177,496 | $ | 126,979 | $ | 84,121 | ||||||||||||
Ratio of expenses to average net assetse | 0.47 | % | 0.49 | % | 0.48 | % | 0.48 | % | 0.48 | % | 0.50 | % | ||||||||||||
Ratio of net investment income to average net assetse | 0.46 | % | 1.19 | % | 1.27 | % | 1.41 | %b | 1.30 | % | 2.03 | % | ||||||||||||
Portfolio turnover ratef | 11 | %d | 14 | % | 31 | % | 26 | % | 31 | % | 29 | % |
a | Based on average shares outstanding throughout each period. |
b | Includes a special distribution from Paddy Power PLC. Excluding such special distribution, the net investment income would have been $0.34 per share and 0.94% of average net assets. |
c | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
d | Not annualized. |
e | Annualized for periods of less than one year. |
f | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 39 |
Table of Contents
Financial Highlights (Continued)
iSHARES® TRUST
(For a share outstanding throughout each period)
iShares MSCI New Zealand ETF | ||||||||||||||||||||||||
Six months ended Feb. 28, 2018 (Unaudited) | Year ended Aug. 31, 2017 | Year ended Aug. 31, 2016 | Year ended Aug. 31, 2015 | Year ended Aug. 31, 2014 | Year ended Aug. 31, 2013 | |||||||||||||||||||
Net asset value, beginning of period | $ | 46.26 | $ | 46.90 | $ | 32.17 | $ | 40.88 | $ | 34.14 | $ | 31.12 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.82 | 1.96 | 1.21 | 1.87 | 1.68 | 1.45 | ||||||||||||||||||
Net realized and unrealized gain (loss)b | 2.59 | (0.39 | ) | 14.76 | (8.57 | ) | 6.78 | 3.23 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 3.41 | 1.57 | 15.97 | (6.70 | ) | 8.46 | 4.68 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.90 | ) | (2.21 | ) | (1.24 | ) | (2.01 | ) | (1.72 | ) | (1.66 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | (0.90 | ) | (2.21 | ) | (1.24 | ) | (2.01 | ) | (1.72 | ) | (1.66 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 48.77 | $ | 46.26 | $ | 46.90 | $ | 32.17 | $ | 40.88 | $ | 34.14 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total return | 7.45 | %c | 3.95 | % | 50.49 | % | (17.01 | )% | 25.02 | % | 15.15 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 143,869 | $ | 175,790 | $ | 171,183 | $ | 64,344 | $ | 159,446 | $ | 145,081 | ||||||||||||
Ratio of expenses to average net assetsd | 0.47 | % | 0.49 | % | 0.48 | % | 0.48 | % | 0.48 | % | 0.51 | % | ||||||||||||
Ratio of net investment income to average net assetsd | 3.53 | % | 4.45 | % | 3.05 | % | 4.83 | % | 4.17 | % | 4.07 | % | ||||||||||||
Portfolio turnover ratee | 7 | %c | 9 | % | 11 | % | 14 | % | 20 | % | 26 | % |
a | Based on average shares outstanding throughout each period. |
b | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
40 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Financial Highlights (Continued)
iSHARES® TRUST
(For a share outstanding throughout each period)
iShares MSCI Norway ETF | ||||||||||||||||||||||||
Six months ended Feb. 28, 2018 (Unaudited) | Year ended Aug. 31, 2017 | Year ended Aug. 31, 2016 | Year ended Aug. 31, 2015 | Year ended Aug. 31, 2014 | Year ended Aug. 31, 2013 | |||||||||||||||||||
Net asset value, beginning of period | $ | 25.07 | $ | 20.36 | $ | 20.40 | $ | 31.83 | $ | 28.33 | $ | 27.37 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.20 | 0.69 | 0.64 | 0.64 | 1.09 | 0.92 | ||||||||||||||||||
Net realized and unrealized gain (loss)b | 2.02 | 4.70 | (0.06 | ) | (11.49 | ) | 3.43 | 0.85 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 2.22 | 5.39 | 0.58 | (10.85 | ) | 4.52 | 1.77 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.19 | ) | (0.68 | ) | (0.62 | ) | (0.58 | ) | (1.02 | ) | (0.81 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | (0.19 | ) | (0.68 | ) | (0.62 | ) | (0.58 | ) | (1.02 | ) | (0.81 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 27.10 | $ | 25.07 | $ | 20.36 | $ | 20.40 | $ | 31.83 | $ | 28.33 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total return | 8.90 | %c | 27.10 | % | 2.89 | % | (34.32 | )% | 15.91 | % | 6.61 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 37,937 | $ | 32,589 | $ | 26,462 | $ | 30,595 | $ | 22,280 | $ | 11,331 | ||||||||||||
Ratio of expenses to average net assetsd | 0.53 | % | 0.53 | % | 0.53 | % | 0.53 | % | 0.53 | % | 0.53 | % | ||||||||||||
Ratio of net investment income to average net assetsd | 1.52 | % | 3.11 | % | 3.23 | % | 2.60 | % | 3.48 | % | 3.16 | % | ||||||||||||
Portfolio turnover ratee | 6 | %c | 10 | % | 19 | % | 14 | % | 12 | % | 10 | % |
a | Based on average shares outstanding throughout each period. |
b | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 41 |
Table of Contents
Notes to Financial Statements (Unaudited)
iSHARES® TRUST
iShares Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust was established as a Delaware statutory trust pursuant to an Agreement and Declaration of Trust dated December 16, 1999.
These financial statements relate only to the following funds (each, a “Fund,” and collectively, the “Funds”):
iShares ETF | Former Name | Diversification Classification | ||||
MSCI Denmark | iShares MSCI Denmark Capped ETF | Non-diversified | ||||
MSCI Finland | iShares MSCI Finland Capped ETF | Non-diversified | ||||
MSCI Germany Small-Cap | N/A | Diversified | ||||
MSCI Ireland | iShares MSCI Ireland Capped ETF | Non-diversified | ||||
MSCI New Zealand | iShares MSCI New Zealand Capped ETF | Non-diversified | ||||
MSCI Norway | iShares MSCI Norway Capped ETF | Non-diversified |
The investment objective of each Fund is to seek investment results that correspond generally to the price and yield performance, before fees and expenses, of its underlying index. The investment adviser uses a “passive” or index approach to try to achieve each Fund’s investment objective.
Pursuant to the Trust’s organizational documents, the Funds’ officers and trustees are indemnified against certain liabilities that may arise out of the performance of their duties to the Funds. Additionally, in the normal course of business, the Funds enter into contracts with service providers that contain general indemnification clauses. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred.
1. | SIGNIFICANT ACCOUNTING POLICIES |
The following significant accounting policies are consistently followed by each Fund in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies.
SECURITY VALUATION
Each Fund’s investments are valued at fair value each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date should the reporting period end on a day that the Fund’s listing exchange is not open. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) provides oversight of the valuation of investments for the Funds. The investments of each Fund are valued pursuant to policies and procedures developed by the Global Valuation Committee and approved by the Board of Trustees of the Trust (the “Board”).
• | Equity investments traded on a recognized securities exchange are valued at that day’s last reported trade price or the official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price. |
42 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
• | Open-end U.S. mutual funds (including money market funds) are valued at that day’s published net asset value (“NAV”). |
In the event that application of these methods of valuation results in a price for an investment which is deemed not to be representative of the fair value of such investment or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board. The fair valuation approaches that may be utilized by the Global Valuation Committee to determine fair value include market approach, income approach and the cost approach. The valuation techniques used under these approaches take into consideration inputs that include but are not limited to (i) attributes specific to the investment; (ii) the principal market for the investment; (iii) the customary participants in the principal market for the investment; (iv) data assumptions by market participants for the investment, if reasonably available; (v) quoted prices for similar investments in active markets; and (vi) other inputs, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates. Valuations based on such inputs are reported to the Board on a quarterly basis.
The Global Valuation Committee employs various methods for calibrating valuation approaches for investments where an active market does not exist, including regular due diligence of the Trust’s pricing vendors, a regular review of key inputs and assumptions, transactional back-testing or disposition analysis to compare unrealized gains and losses to realized gains and losses, reviews of missing or stale prices, reviews of large movements in market values, and reviews of market related activity.
Fair value pricing could result in a difference between the prices used to calculate a Fund’s NAV and the prices used by the Fund’s underlying index, which in turn could result in a difference between the Fund’s performance and the performance of the Fund’s underlying index.
Various inputs are used in determining the fair value of financial instruments. Inputs may be based on independent market data (“observable inputs”) or they may be internally developed (“unobservable inputs”). These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:
• | Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities; |
• | Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability (such as exchange rates, financing terms, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and |
• | Level 3 — Unobservable inputs for the asset or liability based on the best information available in the circumstances, to the extent observable inputs are not available, including the Global Valuation Committee’s assumptions used in determining the fair value of investments. |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgement exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value hierarchy for each Fund’s investments is included in its schedule of investments.
Changes in valuation techniques may result in transfers in or out of an assigned level within the fair value hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of values determined for financial instruments are based on the pricing
NOTESTO FINANCIAL STATEMENTS | 43 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
transparency of the financial instruments and are not necessarily an indication of the risks associated with investing in those securities.
SECURITY TRANSACTIONS AND INCOME RECOGNITION
Security transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recognized on the ex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities as of February 28, 2018 are reflected in tax reclaims receivable. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be re-designated as a return of capital or capital gain. Non-cash dividends, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Distributions received by the Funds may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. Interest income is accrued daily.
FOREIGN CURRENCY TRANSLATION
The accounting records of the Funds are maintained in U.S. dollars. Foreign currencies, as well as investment securities and other assets and liabilities denominated in foreign currencies, are translated into U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of securities, income receipts and expense payments are translated into U.S. dollars on the respective dates of such transactions.
Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of securities. Such fluctuations are reflected by the Funds as a component of realized and unrealized gains and losses from investments for financial reporting purposes. Each Fund reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes.
FOREIGN TAXES
The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Funds invest. These foreign taxes, if any, are paid by the Funds and are reflected in their statements of operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of February 28, 2018, if any, are disclosed in the Funds’ statements of assets and liabilities.
DISTRIBUTIONS TO SHAREHOLDERS
Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds.
44 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
LOANS OF PORTFOLIO SECURITIES
Each Fund may lend its investment securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by an approved bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Funds. Any additional required collateral is delivered to the Funds and any excess collateral is returned by the Funds on the next business day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.
Cash received as collateral for securities on loan may be reinvested in certain short-term instruments either directly on behalf of a fund or through one or more joint accounts or money market funds, including those managed by BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, or its affiliates. As of February 28, 2018, any securities on loan were collateralized by cash and/or U.S. government obligations. Cash collateral received was invested in money market funds managed by BFA and is disclosed in the schedules of investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan for each Fund are also disclosed in its schedule of investments. The total value of any securities on loan as of February 28, 2018 and the total value of the related cash collateral are disclosed in the statements of assets and liabilities. Income earned by the Funds from securities lending is disclosed in the statements of operations.
The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Funds benefit from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of securities loaned if the collateral received does not cover the value of the securities loaned in the event of borrower default. Each Fund could incur a loss if the value of an investment purchased with cash collateral falls below the value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received.
Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (“MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, a Fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. The value of the collateral is typically greater than that of the market value of the securities loaned, leaving the lender with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, the borrower can resell or re-pledge the loaned securities, and a Fund can reinvest cash collateral, or, upon an event of default, resell or re-pledge the collateral.
NOTESTO FINANCIAL STATEMENTS | 45 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
The following table is a summary of securities lending agreements which are subject to offset under an MSLA as of February 28, 2018:
iShares ETF and Counterparty | Market Value of Securities on Loan | Cash Collateral Received a | Net Amount | |||||||||
MSCI Denmark | ||||||||||||
Morgan Stanley & Co. LLC | $ | 161,775 | $ | 161,775 | $ | — | ||||||
|
|
|
|
|
| |||||||
MSCI Finland | ||||||||||||
Morgan Stanley & Co. LLC | $ | 304,772 | $ | 304,772 | $ | — | ||||||
|
|
|
|
|
| |||||||
MSCI Germany Small-Cap | ||||||||||||
Barclays Capital Inc. | $ | 1,233,671 | $ | 1,233,671 | $ | — | ||||||
Citigroup Global Markets Inc. | 2,172,142 | 2,172,142 | — | |||||||||
Credit Suisse Securities (USA) LLC | 1,291,741 | 1,291,741 | — | |||||||||
Deutsche Bank Securities Inc. | 344,874 | 344,874 | — | |||||||||
Goldman Sachs & Co. | 3,357,819 | 3,357,819 | — | |||||||||
HSBC Bank PLC | 24,424 | 24,424 | — | |||||||||
JPMorgan Securities LLC | 298,991 | 298,991 | — | |||||||||
Merrill Lynch, Pierce, Fenner & Smith | 670,725 | 670,725 | — | |||||||||
Morgan Stanley & Co. LLC | 4,094,886 | 4,094,886 | — | |||||||||
State Street Bank & Trust Company | 234,018 | 234,018 | — | |||||||||
UBS AG | 576,054 | 576,054 | — | |||||||||
|
|
|
|
|
| |||||||
$ | 14,299,345 | $ | 14,299,345 | $ | — | |||||||
|
|
|
|
|
| |||||||
MSCI New Zealand | ||||||||||||
Barclays Capital Inc. | $ | 157,306 | $ | 157,306 | $ | — | ||||||
State Street Bank & Trust Company | 167,017 | 167,017 | — | |||||||||
|
|
|
|
|
| |||||||
$ | 324,323 | $ | 324,323 | $ | — | |||||||
|
|
|
|
|
| |||||||
MSCI Norway | ||||||||||||
Barclays Capital Inc. | $ | 74,730 | $ | 74,730 | $ | — | ||||||
Citigroup Global Markets Inc. | 147,881 | 147,881 | — | |||||||||
Deutsche Bank Securities Inc. | 7,828 | 7,828 | — | |||||||||
Goldman Sachs & Co. | 189,891 | 189,891 | — | |||||||||
JPMorgan Securities LLC | 33,358 | 33,358 | — | |||||||||
Morgan Stanley & Co. LLC | 555,550 | 555,550 | — | |||||||||
|
|
|
|
|
| |||||||
$ | 1,009,238 | $ | 1,009,238 | $ | — | |||||||
|
|
|
|
|
| |||||||
a | Collateral received in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Fund’s statement of assets and liabilities. |
2. | INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES |
Pursuant to an Investment Advisory Agreement with the Trust, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except (i) interest and taxes; (ii) brokerage commissions and other expenses connected
46 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent trustees).
For its investment advisory services to each of the following Funds, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, based on the average daily net assets of each Fund as follows:
iShares ETF | Investment Advisory Fee | |||
MSCI Denmark | 0.53 | % | ||
MSCI Finland | 0.53 | |||
MSCI Germany Small-Cap | 0.59 | |||
MSCI Norway | 0.53 |
For its investment advisory services to each of the iShares MSCI Ireland and iShares MSCI New Zealand ETFs, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, based on each Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:
Investment Advisory Fee | Aggregate Average Daily Net Assets | ||||
0.59 | % | First $7 billion | |||
0.54 | Over $7 billion, up to and including $11 billion | ||||
0.49 | Over $11 billion, up to and including $24 billion | ||||
0.44 | Over $24 billion, up to and including $48 billion | ||||
0.40 | Over $48 billion, up to and including $72 billion | ||||
0.36 | Over $72 billion, up to and including $96 billion | ||||
0.32 | Over $96 billion |
The U.S. Securities and Exchange Commission has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan in a money market fund managed by BFA, however, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04% (the “collateral investment fees”). Securities lending income is equal to the total of income earned from the reinvestment of cash collateral (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. The Funds retain a portion of securities lending income and remit the remaining portion to BTC as compensation for its services as securities lending agent.
Pursuant to a securities lending agreement, each Fund retains 80% of securities lending income and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees. In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in a given calendar year exceeds the aggregate securities lending income generated across the iShares ETF Complex in the calendar year 2013, each Fund, pursuant to a securities lending agreement, will retain for the remainder of that calendar year 85% of securities lending income and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
NOTESTO FINANCIAL STATEMENTS | 47 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
For the six months ended February 28, 2018, the total of securities lending agent services and collateral investment fees paid were as follows:
iShares ETF | Fees Paid to BTC | |||
MSCI Denmark | $ | 1,647 | ||
MSCI Finland | 757 | |||
MSCI Germany Small-Cap | 32,984 | |||
MSCI New Zealand | 4,026 | |||
MSCI Norway | 5,278 |
BlackRock Investments, LLC, an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.
Cross trading is the buying or selling of portfolio securities between funds to which BFA (or an affiliate) serves as investment adviser. At its regularly scheduled quarterly meetings, the Board reviews such transactions as of the most recent calendar quarter for compliance with the requirements and restrictions set forth by Rule 17a-7.
For the year six months ended February 28, 2108, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:
iShares ETF | Purchases | Sales | ||||||
MSCI Denmark | $ | 609,705 | $ | 2,312,019 | ||||
MSCI Finland | 492,635 | — | ||||||
MSCI Germany Small-Cap | — | 130,893 | ||||||
MSCI Ireland | 937,539 | — | ||||||
MSCI Norway | 201,246 | 422,874 |
Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is included in “Dividends – affiliated” in the statements of operations.
It is possible that, from time to time, BlackRock and/or funds managed by BFA or an affiliate (collectively, “Affiliates”) may purchase and hold shares of a Fund. Affiliates reserve the right, subject to compliance with applicable law, to sell into the market or redeem in Creation Units through an authorized participant at any time some or all of the shares of a Fund acquired for their own accounts. A large sale or redemption of shares of a Fund by Affiliates could significantly reduce the asset size of the Fund, which might have an adverse effect on the Fund. As of February 28, 2018, the number of affiliated accounts that individually represent more than 10% ownership of a Fund’s total shares outstanding and the aggregate percentage of net assets represented by such holdings were as follows:
iShares ETF | Number of Affiliated | Aggregate Ownership | ||||||
MSCI Norway | 1 | 14 | % |
The PNC Financial Services Group, Inc. is the largest stockholder of BlackRock and is considered to be an affiliate of the Funds for 1940 Act purposes.
48 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
Certain trustees and officers of the Trust are also officers of BTC and/or BFA.
3. | INVESTMENT PORTFOLIO TRANSACTIONS |
Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the six months ended February 28, 2018 were as follows:
iShares ETF | Purchases | Sales | ||||||
MSCI Denmark | $ | 4,509,243 | $ | 4,517,960 | ||||
MSCI Finland | 2,038,634 | 2,336,576 | ||||||
MSCI Germany Small-Cap | 17,007,880 | 3,597,981 | ||||||
MSCI Ireland | 7,775,979 | 8,171,774 | ||||||
MSCI New Zealand | 14,102,348 | 11,231,871 | ||||||
MSCI Norway | 2,331,536 | 1,987,642 |
In-kind transactions (see Note 4) for the six months ended February 28, 2018 were as follows:
iShares ETF | In-kind Purchases | In-kind Sales | ||||||
MSCI Denmark | $ | 6,391,997 | $ | 16,035,488 | ||||
MSCI Finland | 5,922,342 | 11,995,213 | ||||||
MSCI Germany Small-Cap | 38,082,921 | 22,438,223 | ||||||
MSCI Ireland | 2,346,057 | 2,330,053 | ||||||
MSCI New Zealand | 13,756,393 | 55,759,907 | ||||||
MSCI Norway | 10,005,869 | 7,445,723 |
4. | CAPITAL SHARE TRANSACTIONS |
Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable. Transactions in capital shares for each Fund are disclosed in detail in the statements of changes in net assets.
The consideration for the purchase of Creation Units of a fund in the Trust generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Trust may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to State Street Bank and Trust Company, the Trust’s administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in “Proceeds from shares sold” in the statements of changes in net assets.
5. | PRINCIPAL RISKS |
In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors,
NOTESTO FINANCIAL STATEMENTS | 49 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Each Fund’s prospectus provides details of the risks to which the Fund is subject.
BFA uses a “passive” or index approach to try to achieve each Fund’s investment objective following the securities included in its underlying index during upturns as well as downturns. BFA does not take steps to reduce market exposure or to lessen the effects of a declining market. Divergence from the underlying index and the composition of the portfolio is monitored by BFA.
MARKET RISK
Market risk arises mainly from uncertainty about future values of financial instruments influenced by price, currency and interest rate movements. It represents the potential loss a fund may suffer through holding market positions in the face of market movements. A fund is exposed to market risk by its investment in equity, fixed income and/or financial derivative instruments or by its investment in underlying funds. The fair value of securities held by a fund may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. The extent of a fund’s exposure to market risk is the market value of the investments held as shown in the fund’s schedule of investments.
A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its schedule of investments.
Investing in the securities of non-U.S. issuers involves certain considerations and risks not typically associated with securities of U.S. issuers. Such risks include, but are not limited to: differences in accounting, auditing and financial reporting standards; more substantial governmental involvement in the economy; higher inflation rates, greater social, economic and political uncertainties; possible nationalization or expropriation of assets; less availability of public information about issuers; imposition of withholding or other taxes; higher transaction and custody costs and delays in settlement procedures; and lower level of regulation of the securities markets and issuers. Non-U.S. securities may be less liquid, more difficult to value, and have greater price volatility due to exchange rate fluctuations. These and other risks are heightened for investments in issuers from countries with less developed capital markets.
The economies and markets of European countries are often closely connected and interdependent, and events in one country in Europe can have an adverse impact on other European countries. The European financial markets have experienced volatility and adverse trends in recent years due to concerns about economic downturns or rising government debt levels in several European countries. These events have adversely affected the exchange rate of the euro and may continue to significantly affect European countries. The occurrence of terrorist incidents throughout Europe also could impact financial markets. In addition, the United Kingdom has voted to withdraw from the European Union. The referendum may introduce significant new uncertainties and instability in the financial markets as the United Kingdom negotiates its exit from the European Union.
When a fund concentrates its investments in issuers located in a single country, it assumes the risk that economic, political and social conditions in that country may have a significant impact on its investment performance.
CREDIT RISK
Credit risk is the risk that an issuer or guarantor of debt instruments or the counterparty to a financial transaction, including derivatives contracts, repurchase agreements or loans of portfolio securities, is unable or unwilling to make timely interest and/or principal payments or to otherwise honor its obligations. BFA and its affiliates manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring
50 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
the financial stability of those counterparties. Financial assets, which potentially expose a fund to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of a fund’s exposure to credit and counterparty risks with respect to those financial assets is approximated by their value recorded in its statement of assets and liabilities.
6. | INCOME TAX INFORMATION |
Each Fund is treated as an entity separate from the Trust’s other funds for federal income tax purposes. It is the policy of each Fund to qualify as a regulated investment company by complying with the provisions applicable to regulated investment companies, as defined under Subchapter M of the Internal Revenue Code of 1986, as amended, and to annually distribute substantially all of its ordinary income and any net capital gains (taking into account any capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income and excise taxes. Accordingly, no provision for federal income taxes is required.
For purposes of U.S. GAAP, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or NAV per share.
The tax character of current year distributions will be determined at the end of the current fiscal year.
As of August 31, 2017, the Funds’ fiscal year-end, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:
iShares ETF | Non- Expiring | |||
MSCI Denmark | $ | 2,001,523 | ||
MSCI Finland | 685,174 | |||
MSCI Germany Small-Cap | 503,164 | |||
MSCI Ireland | 6,135,894 | |||
MSCI New Zealand | 9,106,295 | |||
MSCI Norway | 3,028,907 |
The Funds may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” The Funds may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.
As of February 28, 2018, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives) for U.S. federal income tax purposes were as follows:
iShares ETF | Tax Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||
MSCI Denmark | $52,790,491 | $ | 7,910,277 | $ | (2,676,747 | ) | $ | 5,233,530 | ||||||||
MSCI Finland | 38,792,725 | 6,092,177 | (2,462,907 | ) | 3,629,270 | |||||||||||
MSCI Germany Small-Cap | 84,934,509 | 7,495,625 | (2,091,914 | ) | 5,403,711 | |||||||||||
MSCI Ireland | 66,106,684 | 9,615,494 | (4,201,015 | ) | 5,414,479 | |||||||||||
MSCI New Zealand | 139,228,799 | 18,905,633 | (14,026,412 | ) | 4,879,221 | |||||||||||
MSCI Norway | 38,666,743 | 3,247,607 | (3,002,502 | ) | 245,105 |
NOTESTO FINANCIAL STATEMENTS | 51 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
Management has analyzed tax laws and regulations and their application to the Funds as of February 28, 2018, inclusive of the open tax return years, and does not believe there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.
7. | FOREIGN WITHHOLDING TAX CLAIMS |
The iShares MSCI Finland ETF has filed claims to recover taxes withheld by Finland on dividend income on the basis that Finland had purportedly violated certain provisions in the Treaty on the Functioning of the European Union. The Fund has recorded a receivable for all recoverable taxes withheld by Finland based upon favorable determinations issued by the Finnish Tax Authority. The Fund continues to evaluate developments in Finland for potential impacts to the receivables and payables recorded. Finnish tax claims receivable are disclosed in the statement of assets and liabilities. Professional fees associated with the filing of tax claims in Finland that result in the recovery of foreign withholding taxes have been approved by the Board as appropriate expenses of the Fund.
The Fund, under the approval of the Board, plans to seek a closing agreement with the Internal Revenue Service (“IRS”) to address any prior years’ U.S. income tax liabilities attributable to Fund shareholders resulting from the recovery of foreign taxes. The closing agreement would result in the Fund paying a compliance fee to the IRS, on behalf of its shareholders, representing the estimated tax savings generated from foreign tax credits claimed by Fund shareholders on their tax returns in prior years. The Fund has accrued an estimated liability for the IRS compliance fee related to foreign withholding tax claims, which is disclosed in the statement of assets and liabilities. The actual IRS compliance fee may differ from the estimate and that difference may be material.
8. | LEGAL PROCEEDINGS |
On June 16, 2016, investors (the “Plaintiffs”) in certain iShares funds (iShares Core S&P Small-Cap ETF, iShares Russell 1000 Growth ETF, iShares Core S&P 500 ETF, iShares Russell Mid-Cap Growth ETF, iShares Russell Mid-Cap ETF, iShares Russell Mid-Cap Value ETF, iShares Select Dividend ETF, iShares Morningstar Mid-Cap ETF, iShares Morningstar Large-Cap ETF, iShares U.S. Aerospace & Defense ETF and iShares U.S. Preferred Stock ETF) filed a putative class action lawsuit against iShares Trust, BlackRock, Inc. and certain of its advisory affiliates, and certain directors/trustees and officers of the Funds (collectively, “Defendants”) in California State Court. The lawsuit alleges the Defendants violated federal securities laws by failing to adequately disclose in the prospectuses issued by the funds noted above the risks of using stop-loss orders in the event of a `flash crash’, such as the one that occurred on May 6, 2010. On September 18, 2017, the court issued a Statement of Decision holding that the Plaintiffs lack standing to assert their claims. On October 11, 2017, the court entered final judgment dismissing all of the Plaintiffs’ claims with prejudice. Plaintiffs have appealed the court’s decision.
9. | SUBSEQUENT EVENTS |
Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or disclosure in the financial statements.
52 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Supplemental Information (Unaudited)
iSHARES® TRUST
Section 19(a) Notices
The amounts and sources of distributions reported are estimates and are provided pursuant to regulatory requirements and are not being provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon each Fund’s investment experience during the year and may be subject to changes based on the tax regulations. Shareholders will receive a Form 1099-DIV each calendar year that will inform them how to report these distributions for federal income tax purposes.
Total Cumulative Distributions for the Fiscal Year-to-Date | % Breakdown of the Total Cumulative Distributions for the Fiscal Year-to-Date | |||||||||||||||||||||||||||||||
iShares ETF | Net Investment Income | Net Realized Capital Gains | Return of Capital | Total Per Share | Net Investment Income | Net Realized Capital Gains | Return of Capital | Total Per Share | ||||||||||||||||||||||||
MSCI Finland | $ | 0.133615 | $ | — | $ | 0.023578 | $ | 0.157193 | 85 | % | — | % | 15 | % | 100 | % | ||||||||||||||||
MSCI Germany Small-Cap | 0.072750 | — | 0.050518 | 0.123268 | 59 | — | 41 | 100 | ||||||||||||||||||||||||
MSCI Ireland | 0.293527 | — | 0.048271 | 0.341798 | 86 | — | 14 | 100 |
SUPPLEMENTAL INFORMATION | 53 |
Table of Contents
Electronic Delivery
Shareholders can sign up for email notifications announcing that the shareholder report or prospectus has been posted on the iShares website at www.iShares.com. Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail.
To enroll in electronic delivery:
• | Go to www.icsdelivery.com |
• | If your brokerage firm is not listed, electronic delivery may not be available. Please contact your broker-dealer or financial advisor. |
Householding
Householding is an option available to certain fund investors. Householding is a method of delivery, based on the preference of the individual investor, in which a single copy of certain shareholder documents can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.
Availability of Quarterly Schedule of Investments
The iShares Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The iShares Funds’ Forms N-Q are available on the SEC’s website and may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The iShares Funds also disclose their complete schedule of portfolio holdings on a daily basis on the iShares website.
Availability of Proxy Voting Policies and Proxy Voting Records
A description of the policies and procedures that the iShares Funds use to determine how to vote proxies relating to portfolio securities and information about how the iShares Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request (1) by calling toll-free 1-800-474-2737; (2) on the iShares website at www.iShares.com; and (3) on the SEC website at www.sec.gov.
54 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
For more information visit www.iShares.com or call 1-800-iShares (1-800-474-2737)
This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus.
Investing involves risk, including possible loss of principal.
The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).
The iShares Funds are not sponsored, endorsed, issued, sold or promoted by MSCI Inc., nor does this company make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the company listed above.
©2018 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.
iS-SAR-808-0218
Table of Contents
FEBRUARY 28, 2018
2018 SEMI-ANNUAL REPORT (UNAUDITED) |
iShares Trust
Ø | iShares MSCI India ETF | INDA | Cboe BZX |
Ø | iShares MSCI India Small-Cap ETF | SMIN | Cboe BZX |
Table of Contents
5 | ||||
7 | ||||
7 | ||||
8 | ||||
8 | ||||
11 | ||||
17 | ||||
20 | ||||
22 | ||||
31 | ||||
32 |
Table of Contents
iSHARES® MSCI INDIA ETF
Performance as of February 28, 2018
The iShares MSCI India ETF (the “Fund”) seeks to track the investment results of an index composed of Indian equities, as represented by the MSCI India 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. For the six-month reporting period ended February 28, 2018, the total return for the Fund was 2.75%, net of fees, while the total return for the Index was 3.94%.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||||||||
1 Year | 19.02% | 17.10% | 21.17% | 19.02% | 17.10% | 21.17% | ||||||||||||||||||||||
5 Years | 7.81% | 7.54% | 8.69% | 45.66% | 43.84% | 51.68% | ||||||||||||||||||||||
Since Inception | 6.12% | 5.84% | 6.96% | 43.43% | 41.20% | 50.54% |
The inception date of the Fund was 2/2/12. The first day of secondary market trading was 2/3/12.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 7 for more information.
Shareholder Expenses | ||||||||||||||||||||||||||
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Annualized Expense Ratio | ||||||||||||||||||||
$ | 1,000.00 | $ | 1,027.50 | $ | 3.47 | $ | 1,000.00 | $ | 1,021.40 | $ | 3.46 | 0.69% |
a | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 7 for more information. |
ALLOCATION BY SECTOR
As of 2/28/18
Sector | Percentage of Total Investments* |
Financials | 23.30 | % | ||
Information Technology | 15.42 | |||
Energy | 13.58 | |||
Consumer Discretionary | 12.06 | |||
Materials | 9.81 | |||
Consumer Staples | 9.41 | |||
Industrials | 5.96 | |||
Health Care | 5.58 | |||
Telecommunication Services | 2.91 | |||
Utilities | 1.97 | |||
|
| |||
TOTAL | 100.00 | % | ||
|
|
TEN LARGEST FUND HOLDINGS
As of 2/28/18
Security | Percentage of Total Investments* |
Housing Development Finance Corp. Ltd. | 9.09 | % | ||
Reliance Industries Ltd. | 9.01 | |||
Infosys Ltd. | 6.79 | |||
Tata Consultancy Services Ltd. | 4.62 | |||
Axis Bank Ltd. | 3.14 | |||
Maruti Suzuki India Ltd. | 3.10 | |||
ITC Ltd. | 3.00 | |||
Hindustan Unilever Ltd. | 2.83 | |||
ICICI Bank Ltd. | 2.46 | |||
Larsen & Toubro Ltd. | 2.08 | |||
|
| |||
TOTAL | 46.12 | % | ||
|
|
* | Excludes money market funds. |
FUND PERFORMANCE OVERVIEWS | 5 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI INDIA SMALL-CAP ETF
Performance as of February 28, 2018
The iShares MSCI India Small-Cap ETF (the “Fund”) seeks to track the investment results of an index composed of small-capitalization Indian equities, as represented by the MSCI India 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. For the six-month reporting period ended February 28, 2018, the total return for the Fund was 7.55%, net of fees, while the total return for the Index was 9.22%.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||||||||
1 Year | 29.22% | 27.12% | 32.28% | 29.22% | 27.12% | 32.28% | ||||||||||||||||||||||
5 Years | 18.46% | 18.32% | 19.48% | 133.27% | 131.93% | 143.45% | ||||||||||||||||||||||
Since Inception | 12.98% | 12.77% | 13.91% | 109.49% | 107.07% | 120.24% |
The inception date of the Fund was 2/8/12. The first day of secondary market trading was 2/9/12.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 7 for more information.
Shareholder Expenses | ||||||||||||||||||||||||||
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Annualized Expense Ratio | ||||||||||||||||||||
$ | 1,000.00 | $ | 1,075.50 | $ | 4.07 | $ | 1,000.00 | $ | 1,020.90 | $ | 3.96 | 0.79% |
a | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 7 for more information. |
ALLOCATION BY SECTOR
As of 2/28/18
Sector | Percentage of Total Investments* |
Consumer Discretionary | 19.93 | % | ||
Financials | 17.18 | |||
Industrials | 17.13 | |||
Materials | 13.56 | |||
Health Care | 11.72 | |||
Information Technology | 7.38 | |||
Utilities | 4.39 | |||
Consumer Staples | 3.99 | |||
Real Estate | 2.69 | |||
Telecommunication Services | 1.20 | |||
Energy | 0.83 | |||
|
| |||
TOTAL | 100.00 | % | ||
|
|
TEN LARGEST FUND HOLDINGS
As of 2/28/18
Security | Percentage of Total Investments* |
Federal Bank Ltd. | 1.83 | % | ||
Edelweiss Financial Services Ltd. | 1.59 | |||
Page Industries Ltd. | 1.58 | |||
Apollo Hospitals Enterprise Ltd. | 1.45 | |||
Biocon Ltd. | 1.20 | |||
Crompton Greaves Consumer Electricals Ltd. | 1.15 | |||
IIFL Holdings Ltd. | 1.13 | |||
Balkrishna Industries Ltd. | 1.11 | |||
Jindal Steel & Power Ltd. | 1.09 | |||
Divi’s Laboratories Ltd. | 1.09 | |||
|
| |||
TOTAL | 13.22 | % | ||
|
|
* | Excludes money market funds. |
6 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Past performance is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at www.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. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer 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. Certain funds may have a NAV which is determined prior to the opening of regular trading on its listed exchange and their market returns are calculated using the midpoint of the bid/ask spread as of the opening of regular trading on the exchange. 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.
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested on September 1, 2017 and held through February 28, 2018, is intended to help you understand your ongoing costs (in dollars and cents) of investing in a Fund and to compare these costs with the ongoing costs of investing in other funds.
Actual Expenses — The table provides information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. To estimate the expenses that you paid on your account over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number corresponding to your Fund under the heading entitled “Expenses Paid During Period.”
Hypothetical Example for Comparison Purposes — The table also provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions paid on purchases and sales of fund shares. Therefore, the hypothetical examples are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
ABOUT FUND PERFORMANCE / SHAREHOLDER EXPENSES | 7 |
Table of Contents
Consolidated Schedule of Investments (Unaudited)
February 28, 2018
Security | Shares | Value | ||||||
COMMON STOCKS — 99.75% |
| |||||||
AUTO COMPONENTS — 1.69% |
| |||||||
Bharat Forge Ltd. | 2,432,438 | $ | 29,491,508 | |||||
Bosch Ltd. | 85,042 | 24,394,426 | ||||||
Motherson Sumi Systems Ltd. | 7,332,211 | 37,141,503 | ||||||
|
| |||||||
91,027,437 | ||||||||
AUTOMOBILES — 8.52% |
| |||||||
Bajaj Auto Ltd. | 974,258 | 45,172,880 | ||||||
Hero MotoCorp Ltd. | 579,643 | 32,001,873 | ||||||
Mahindra & Mahindra Ltd. | 8,659,974 | 96,820,493 | ||||||
Maruti Suzuki India Ltd. | 1,227,487 | 166,769,784 | ||||||
Tata Motors Ltd.a | 18,436,939 | 104,684,824 | ||||||
Tata Motors Ltd. Class Aa | 4,427,730 | 14,062,165 | ||||||
|
| |||||||
459,512,019 | ||||||||
BANKS — 9.16% |
| |||||||
Axis Bank Ltd. | 20,834,986 | 169,104,113 | ||||||
ICICI Bank Ltd. | 27,581,367 | 132,622,572 | ||||||
IDFC Bank Ltd. | 15,800,182 | 12,490,502 | ||||||
State Bank of India | 20,043,385 | 82,454,895 | ||||||
Yes Bank Ltd. | 19,739,415 | 97,657,401 | ||||||
|
| |||||||
494,329,483 | ||||||||
BEVERAGES — 0.63% |
| |||||||
United Spirits Ltd.a | 674,894 | 34,103,533 | ||||||
|
| |||||||
34,103,533 | ||||||||
CHEMICALS — 1.92% |
| |||||||
Asian Paints Ltd. | 3,340,845 | 57,320,713 | ||||||
UPL Ltd. | 4,131,365 | 46,214,974 | ||||||
|
| |||||||
103,535,687 | ||||||||
CONSTRUCTION & ENGINEERING — 2.07% |
| |||||||
Larsen & Toubro Ltd. | 5,530,365 | 111,899,774 | ||||||
|
| |||||||
111,899,774 | ||||||||
CONSTRUCTION MATERIALS — 3.65% |
| |||||||
ACC Ltd. | 523,244 | 13,036,072 | ||||||
Ambuja Cements Ltd. | 6,915,918 | 26,789,445 | ||||||
Grasim Industries Ltd. | 3,815,775 | 67,516,455 | ||||||
Shree Cement Ltd. | 97,069 | 24,769,218 | ||||||
UltraTech Cement Ltd. | 1,019,985 | 65,063,602 | ||||||
|
| |||||||
197,174,792 | ||||||||
CONSUMER FINANCE — 2.00% |
| |||||||
Bajaj Finance Ltd. | 2,007,985 | 50,556,976 | ||||||
Mahindra & Mahindra Financial Services Ltd. | 3,377,828 | 22,432,869 |
Security | Shares | Value | ||||||
Shriram Transport Finance Co. Ltd. | 1,712,292 | $ | 35,058,667 | |||||
|
| |||||||
108,048,512 | ||||||||
DIVERSIFIED FINANCIAL SERVICES — 0.55% |
| |||||||
Power Finance Corp. Ltd. | 7,356,233 | 11,867,761 | ||||||
Rural Electrification Corp. Ltd. | 8,024,982 | 17,775,465 | ||||||
|
| |||||||
29,643,226 | ||||||||
DIVERSIFIED TELECOMMUNICATION SERVICES — 0.38% |
| |||||||
Bharti Infratel Ltd. | 3,865,264 | 20,570,440 | ||||||
|
| |||||||
20,570,440 | ||||||||
ELECTRIC UTILITIES — 0.31% |
| |||||||
Tata Power Co. Ltd. (The) | 12,874,836 | 16,699,713 | ||||||
|
| |||||||
16,699,713 | ||||||||
ELECTRICAL EQUIPMENT — 0.68% |
| |||||||
Bharat Heavy Electricals Ltd. | 10,229,864 | 14,116,926 | ||||||
Havells India Ltd. | 2,903,154 | 22,622,731 | ||||||
|
| |||||||
36,739,657 | ||||||||
FOOD PRODUCTS — 1.07% |
| |||||||
Britannia Industries Ltd. | 334,529 | 25,645,704 | ||||||
Nestle India Ltd. | 268,649 | 32,007,361 | ||||||
|
| |||||||
57,653,065 | ||||||||
GAS UTILITIES — 0.77% |
| |||||||
GAIL India Ltd. | 5,890,740 | 41,368,667 | ||||||
|
| |||||||
41,368,667 | ||||||||
HOUSEHOLD PRODUCTS — 2.83% |
| |||||||
Hindustan Unilever Ltd. | 7,538,784 | 152,491,243 | ||||||
|
| |||||||
152,491,243 | ||||||||
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS — 0.89% |
| |||||||
NTPC Ltd. | 19,145,735 | 47,977,301 | ||||||
|
| |||||||
47,977,301 | ||||||||
INDUSTRIAL CONGLOMERATES — 0.27% |
| |||||||
Siemens Ltd. | 826,901 | 14,824,148 | ||||||
|
| |||||||
14,824,148 | ||||||||
INSURANCE — 0.64% |
| |||||||
Bajaj Finserv Ltd. | 443,398 | 34,382,849 | ||||||
|
| |||||||
34,382,849 | ||||||||
IT SERVICES — 15.38% |
| |||||||
HCL Technologies Ltd. | 6,464,648 | 93,308,648 | ||||||
Infosys Ltd. | 20,284,279 | 365,106,903 | ||||||
Tata Consultancy Services Ltd. | 5,333,906 | 248,497,364 | ||||||
Tech Mahindra Ltd. | 5,441,950 | 51,177,323 | ||||||
Vakrangee Ltd. | 4,972,527 | 12,418,675 |
8 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Consolidated Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI INDIA ETF
February 28, 2018
Security | Shares | Value | ||||||
Wipro Ltd. | 13,127,676 | $ | 59,002,376 | |||||
|
| |||||||
829,511,289 | ||||||||
MACHINERY — 1.76% |
| |||||||
Ashok Leyland Ltd. | 13,593,306 | 29,525,150 | ||||||
Eicher Motors Ltd. | 154,862 | 65,223,475 | ||||||
|
| |||||||
94,748,625 | ||||||||
MEDIA — 0.99% |
| |||||||
Zee Entertainment Enterprises Ltd. | 6,132,902 | 53,222,344 | ||||||
|
| |||||||
53,222,344 | ||||||||
METALS & MINING — 4.21% |
| |||||||
Hindalco Industries Ltd. | 13,551,961 | 51,049,005 | ||||||
JSW Steel Ltd. | 9,822,256 | 47,071,141 | ||||||
Tata Steel Ltd. | 4,054,734 | 41,800,708 | ||||||
Vedanta Ltd. | 17,262,440 | 87,377,087 | ||||||
|
| |||||||
227,297,941 | ||||||||
OIL, GAS & CONSUMABLE FUELS — 13.55% |
| |||||||
Bharat Petroleum Corp. Ltd. | 8,814,651 | 58,120,511 | ||||||
Coal India Ltd. | 7,927,386 | 37,619,224 | ||||||
Hindustan Petroleum Corp. Ltd. | 7,076,546 | 41,293,996 | ||||||
Indian Oil Corp. Ltd. | 6,765,164 | 39,388,709 | ||||||
Oil & Natural Gas Corp. Ltd. | 14,899,205 | 43,064,955 | ||||||
Petronet LNG Ltd. | 6,965,916 | 26,443,134 | ||||||
Reliance Industries Ltd. | 33,088,986 | 484,833,610 | ||||||
|
| |||||||
730,764,139 | ||||||||
PERSONAL PRODUCTS — 1.87% |
| |||||||
Dabur India Ltd. | 6,135,301 | 30,612,347 | ||||||
Godrej Consumer Products Ltd. | 2,768,549 | 45,491,387 | ||||||
Marico Ltd. | 5,244,985 | 24,809,442 | ||||||
|
| |||||||
100,913,176 | ||||||||
PHARMACEUTICALS — 5.56% |
| |||||||
Aurobindo Pharma Ltd. | 3,060,905 | 28,844,171 | ||||||
Cadila Healthcare Ltd. | 2,377,101 | 14,781,566 | ||||||
Cipla Ltd./India | 4,017,865 | 36,366,393 | ||||||
Dr. Reddy’s Laboratories Ltd. | 1,328,370 | 45,618,831 | ||||||
Glenmark Pharmaceuticals Ltd. | 1,605,207 | 13,417,740 | ||||||
Lupin Ltd. | 2,571,126 | 32,360,953 | ||||||
Piramal Enterprises Ltd. | 900,861 | 35,712,241 | ||||||
Piramal Enterprises Ltd. Newa | 39,882 | 1,581,016 | ||||||
Sun Pharmaceutical Industries Ltd. | 11,141,973 | 91,560,992 | ||||||
|
| |||||||
300,243,903 |
Security | Shares | Value | ||||||
ROAD & RAIL — 0.18% |
| |||||||
Container Corp. of India Ltd. | 481,020 | $ | 9,629,445 | |||||
|
| |||||||
9,629,445 | ||||||||
TEXTILES, APPAREL & LUXURY GOODS — 0.84% |
| |||||||
Titan Co. Ltd. | 3,607,475 | 45,194,324 | ||||||
|
| |||||||
45,194,324 | ||||||||
THRIFTS & MORTGAGE FINANCE — 10.89% |
| |||||||
Housing Development Finance Corp. Ltd. | 17,610,755 | 488,939,464 | ||||||
Indiabulls Housing Finance Ltd. | 3,708,764 | 71,395,682 | ||||||
LIC Housing Finance Ltd. | 3,456,849 | 26,945,341 | ||||||
|
| |||||||
587,280,487 | ||||||||
TOBACCO — 2.99% |
| |||||||
ITC Ltd. | 39,620,945 | 161,199,324 | ||||||
|
| |||||||
161,199,324 | ||||||||
TRANSPORTATION INFRASTRUCTURE — 0.98% |
| |||||||
Adani Ports & Special Economic Zone Ltd. | 8,415,210 | 52,748,255 | ||||||
|
| |||||||
52,748,255 | ||||||||
WIRELESS TELECOMMUNICATION SERVICES — 2.52% |
| |||||||
Bharti Airtel Ltd. | 16,243,238 | 106,852,499 | ||||||
Idea Cellular Ltd.a | 22,768,883 | 29,323,396 | ||||||
|
| |||||||
136,175,895 | ||||||||
|
| |||||||
TOTAL COMMON STOCKS |
| |||||||
(Cost: $4,123,222,136) |
| 5,380,910,693 | ||||||
|
| |||||||
TOTAL INVESTMENTS | ||||||||
(Cost: $4,123,222,136) |
| 5,380,910,693 | ||||||
Other Assets, Less Liabilities — 0.25% |
| 13,411,077 | ||||||
|
| |||||||
NET ASSETS — 100.00% |
| $ | 5,394,321,770 | |||||
|
|
a | Non-income producing security. |
CONSOLIDATED SCHEDULESOF INVESTMENTS | 9 |
Table of Contents
Consolidated Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI INDIA ETF
February 28, 2018
Affiliates (Note 2)
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows:
Affiliated issuer | Shares held at 08/31/17 | Shares purchased | Shares sold | Shares held at 02/28/18 | Value at 02/28/18 | Income | Net realized gain (loss) a | Change in unrealized appreciation (depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Treasury, | 20,118,019 | — | (20,118,019 | )b | — | $ | — | $ | 331,521 | $ | — | $ | — | |||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
a | Includes realized capital gain distributions from an affiliated fund, if any. |
b | Net of purchases and sales. |
Futures Contracts (Note 5)
Futures contracts outstanding as of February 28, 2018 were as follows:
Description | Number of contracts | Expiration date | Notional amount (000) | Value / unrealized appreciation (depreciation) | ||||||||||||
Long Contracts | ||||||||||||||||
SGX NIFTY 50 | 707 | Mar 2018 | $ | 14,874 | $ | 139,491 | ||||||||||
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Consolidated Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Investments |
| |||||||||||||||||||
Assets |
| |||||||||||||||||||
Common stocks | $ | 5,379,329,677 | $ | 1,581,016 | $ | — | $ | 5,380,910,693 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 5,379,329,677 | $ | 1,581,016 | $ | — | $ | 5,380,910,693 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Derivative financial instrumentsa |
| |||||||||||||||||||
Assets |
| |||||||||||||||||||
Futures contracts | $ | 139,491 | $ | — | $ | — | $ | 139,491 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 139,491 | $ | — | $ | — | $ | 139,491 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
a | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to consolidated financial statements.
10 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Consolidated Schedule of Investments (Unaudited)
iSHARES® MSCI INDIA SMALL-CAP ETF
February 28, 2018
Security | Shares | Value | ||||||
COMMON STOCKS — 100.02% |
| |||||||
AIR FREIGHT & LOGISTICS — 0.40% |
| |||||||
Allcargo Logistics Ltd. | 138,219 | $ | 381,371 | |||||
Blue Dart Express Ltd. | 14,050 | 923,956 | ||||||
|
| |||||||
1,305,327 | ||||||||
AIRLINES — 0.50% |
| |||||||
Jet Airways India Ltd.a | 65,051 | 745,009 | ||||||
SpiceJet Ltd.a | 419,109 | 888,125 | ||||||
|
| |||||||
1,633,134 | ||||||||
AUTO COMPONENTS — 5.77% |
| |||||||
Apollo Tyres Ltd. | 755,721 | 3,184,883 | ||||||
Asahi India Glass Ltd. | 172,306 | 934,447 | ||||||
Balkrishna Industries Ltd. | 217,432 | 3,626,968 | ||||||
Ceat Ltd. | 53,350 | 1,312,289 | ||||||
Endurance Technologies Ltd.b | 76,082 | 1,610,427 | ||||||
Exide Industries Ltd. | 600,502 | 1,911,762 | ||||||
JK Tyre & Industries Ltd. | 172,249 | 397,927 | ||||||
Mahindra CIE Automotive Ltd.a | 237,455 | 871,508 | ||||||
Minda Industries Ltd. | 55,600 | 963,177 | ||||||
Sundram Fasteners Ltd. | 145,911 | 1,264,112 | ||||||
Suprajit Engineering Ltd. | 85,275 | 363,569 | ||||||
Tube Investments of India Ltd. | 203,561 | 816,478 | ||||||
WABCO India Ltd. | 13,359 | 1,659,370 | ||||||
|
| |||||||
18,916,917 | ||||||||
BANKS — 4.93% |
| |||||||
Canara Bank | 351,557 | 1,614,881 | ||||||
DCB Bank Ltd. | 453,080 | 1,140,589 | ||||||
Federal Bank Ltd. | 4,156,809 | 6,013,842 | ||||||
Jammu & Kashmir Bank Ltd. (The)a | 588,452 | 601,583 | ||||||
Karnataka Bank Ltd. (The) | 410,090 | 850,758 | ||||||
Karur Vysya Bank Ltd. (The) | 837,775 | 1,386,298 | ||||||
Oriental Bank of Commercea | 231,333 | 355,986 | ||||||
RBL Bank Ltd.b | 291,169 | 2,190,933 | ||||||
Syndicate Banka | 622,522 | 583,857 | ||||||
Union Bank of Indiaa | 502,552 | 814,235 | ||||||
Vijaya Bank | 652,062 | 599,551 | ||||||
|
| |||||||
16,152,513 | ||||||||
BEVERAGES — 0.23% |
| |||||||
Radico Khaitan Ltd. | 144,364 | 768,508 | ||||||
|
| |||||||
768,508 | ||||||||
BIOTECHNOLOGY — 1.20% |
| |||||||
Biocon Ltd. | 406,012 | 3,926,671 | ||||||
|
| |||||||
3,926,671 |
Security | Shares | Value | ||||||
BUILDING PRODUCTS — 1.78% |
| |||||||
Astral Polytechnik Ltd. | 84,354 | $ | 1,173,838 | |||||
Blue Star Ltd. | 67,519 | 770,994 | ||||||
Cera Sanitaryware Ltd. | 13,879 | 715,721 | ||||||
Kajaria Ceramics Ltd. | 187,020 | 1,649,832 | ||||||
Sintex Plastics Technology Ltd. Class La | 1,071,822 | 1,077,642 | ||||||
Somany Ceramics Ltd. | 43,785 | 455,652 | ||||||
|
| |||||||
5,843,679 | ||||||||
CAPITAL MARKETS — 5.21% |
| |||||||
5Paisa Capital Ltd.a | 1 | 3 | ||||||
Care Ratings Ltd. | 61,112 | 1,282,535 | ||||||
Central Depository Services India Ltd.a | 71,690 | 351,483 | ||||||
CRISIL Ltd. | 52,748 | 1,560,386 | ||||||
Edelweiss Financial Services Ltd. | 1,265,909 | 5,222,297 | ||||||
IIFL Holdings Ltd. | 318,969 | 3,702,016 | ||||||
Indiabulls Ventures Ltd. | 315,682 | 1,253,351 | ||||||
JM Financial Ltd. | 560,427 | 1,269,313 | ||||||
Motilal Oswal Financial Services Ltd. | 98,953 | 1,725,588 | ||||||
PTC India Financial Services Ltd. | 525,270 | 243,098 | ||||||
Tata Investment Corp. Ltd. | 39,033 | 479,717 | ||||||
�� |
|
| ||||||
17,089,787 | ||||||||
CHEMICALS — 6.94% |
| |||||||
Aarti Industries | 57,807 | 1,040,896 | ||||||
Akzo Nobel India Ltd. | 27,650 | 764,058 | ||||||
Atul Ltd. | 21,153 | 872,632 | ||||||
BASF India Ltd. | 30,782 | 962,495 | ||||||
Bayer CropScience Ltd./India | 25,014 | 1,458,575 | ||||||
Chambal Fertilizers and Chemicals Ltd. | 259,027 | 670,964 | ||||||
Coromandel International Ltd. | 205,619 | 1,763,565 | ||||||
DCM Shriram Ltd. | 61,742 | 536,186 | ||||||
Deepak Fertilisers & Petrochemicals Corp. Ltd. | 55,256 | 288,510 | ||||||
Dhanuka Agritech Ltd. | 34,677 | 329,677 | ||||||
EID Parry India Ltd. | 162,018 | 787,256 | ||||||
Finolex Industries Ltd. | 87,402 | 876,217 | ||||||
Godrej Industries Ltd. | 199,019 | 1,685,573 | ||||||
Gujarat Alkalies & Chemicals Ltd. | 46,853 | 530,372 | ||||||
Gujarat Fluorochemicals Ltd. | 77,232 | 917,175 | ||||||
Gujarat Narmada Valley Fertilizers & Chemicals Ltd. | 103,610 | 689,607 | ||||||
Gulf Oil Lubricants India Ltd. | 29,421 | 450,350 |
CONSOLIDATED SCHEDULESOF INVESTMENTS | 11 |
Table of Contents
Consolidated Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI INDIA SMALL-CAP ETF
February 28, 2018
Security | Shares | Value | ||||||
Himadri Speciality Chemical Ltd. | 216,694 | $ | 533,201 | |||||
Monsanto India Ltd. | 12,293 | 473,813 | ||||||
PI Industries Ltd. | 162,085 | 2,171,044 | ||||||
Rain Industries Ltd. | 225,310 | 1,317,353 | ||||||
Rallis India Ltd. | 136,767 | 485,797 | ||||||
SH Kelkar & Co. Ltd.b | 51,824 | 226,559 | ||||||
Sharda Cropchem Ltd. | 63,823 | 392,022 | ||||||
Supreme Industries Ltd. | 111,564 | 2,036,267 | ||||||
Vinati Organics Ltd. | 36,525 | 477,824 | ||||||
|
| |||||||
22,737,988 | ||||||||
COMMUNICATIONS EQUIPMENT — 0.63% |
| |||||||
Sterlite Technologies Ltd. | 275,657 | 1,520,538 | ||||||
Tejas Networks Ltd.a,b | 100,764 | 539,501 | ||||||
|
| |||||||
2,060,039 | ||||||||
CONSTRUCTION & ENGINEERING — 5.57% |
| |||||||
Ashoka Buildcon Ltd. | 132,147 | 444,234 | ||||||
Dilip Buildcon Ltd.b | 94,751 | 1,375,532 | ||||||
Engineers India Ltd. | 445,783 | 1,184,489 | ||||||
Gayatri Highways Ltd.a | 272,682 | 37,713 | ||||||
Gayatri Projects Ltd.a | 260,916 | 847,876 | ||||||
GE Power India Ltd. | 46,802 | 603,684 | ||||||
GMR Infrastructure Ltd.a | 6,160,742 | 1,792,061 | ||||||
Hindustan Construction Co. Ltd.a | 1,505,401 | 783,362 | ||||||
IRB Infrastructure Developers Ltd. | 468,344 | 1,643,432 | ||||||
Kalpataru Power Transmission Ltd. | 108,545 | 835,253 | ||||||
KEC International Ltd. | 179,972 | 1,147,163 | ||||||
NCC Ltd./India | 1,195,523 | 2,416,875 | ||||||
PNC Infratech Ltd. | 180,948 | 457,882 | ||||||
Sadbhav Engineering Ltd. | 249,721 | 1,536,745 | ||||||
Techno Electric & Engineering Co. Ltd.a | 78,910 | 459,679 | ||||||
Voltas Ltd. | 286,968 | 2,684,395 | ||||||
|
| |||||||
18,250,375 | ||||||||
CONSTRUCTION MATERIALS — 3.25% |
| |||||||
Birla Corp. Ltd. | 54,481 | 752,910 | ||||||
Century Textiles & Industries Ltd. | 78,739 | 1,474,855 | ||||||
Dalmia Bharat Ltd. | 61,346 | 2,478,935 | ||||||
HeidelbergCement India Ltd. | 159,141 | 389,264 | ||||||
India Cements Ltd. (The) | 496,890 | 1,214,648 | ||||||
JK Cement Ltd. | 49,893 | 774,899 | ||||||
JK Lakshmi Cement Ltd. | 90,401 | 589,548 | ||||||
Orient Cement Ltd. | 144,410 | 354,451 | ||||||
Prism Cement Ltd.a | 355,705 | 689,884 | ||||||
Ramco Cements Ltd. (The) | 167,751 | 1,937,938 | ||||||
|
| |||||||
10,657,332 |
Security | Shares | Value | ||||||
CONSUMER FINANCE — 1.98% |
| |||||||
Manappuram Finance Ltd. | 1,212,353 | $ | 2,008,918 | |||||
Muthoot Finance Ltd. | 281,982 | 1,695,885 | ||||||
Repco Home Finance Ltd. | 90,952 | 788,250 | ||||||
Sundaram Finance Ltd. | 74,480 | 2,008,904 | ||||||
|
| |||||||
6,501,957 | ||||||||
CONTAINERS & PACKAGING — 0.68% |
| |||||||
Essel Propack Ltd. | 111,172 | 455,721 | ||||||
HSIL Ltd. | 85,326 | 575,902 | ||||||
Time Technoplast Ltd. | 300,155 | 798,693 | ||||||
Uflex Ltd. | 67,244 | 382,740 | ||||||
|
| |||||||
2,213,056 | ||||||||
DIVERSIFIED FINANCIAL SERVICES — 2.26% |
| |||||||
IDFC Ltd. | 2,212,037 | 1,797,914 | ||||||
IFCI Ltd.a | 1,934,406 | 672,553 | ||||||
Reliance Capital Ltd. | 287,503 | 2,084,130 | ||||||
SREI Infrastructure Finance Ltd. | 388,309 | 506,649 | ||||||
Sundaram Finance Holdings Ltd.a | 80,773 | 192,961 | ||||||
TI Financial Holdings Ltd. | 208,587 | 2,146,505 | ||||||
|
| |||||||
7,400,712 | ||||||||
DIVERSIFIED TELECOMMUNICATION SERVICES — 0.78% |
| |||||||
Himachal Futuristic Communications Ltd.a | 1,269,315 | 583,549 | ||||||
Tata Communications Ltd. | 201,131 | 1,983,176 | ||||||
|
| |||||||
2,566,725 | ||||||||
ELECTRIC UTILITIES — 2.15% |
| |||||||
CESC Ltd. | 189,245 | 2,973,046 | ||||||
Reliance Infrastructure Ltd. | 387,623 | 2,710,840 | ||||||
Torrent Power Ltd. | 332,931 | 1,352,498 | ||||||
|
| |||||||
7,036,384 | ||||||||
ELECTRICAL EQUIPMENT — 2.82% |
| |||||||
Amara Raja Batteries Ltd. | 114,438 | 1,444,391 | ||||||
CG Power and Industrial Solutions Ltd.a | 1,169,720 | 1,499,267 | ||||||
Finolex Cables Ltd. | 203,165 | 2,235,879 | ||||||
GE T&D India Ltd. | 182,367 | 1,141,294 | ||||||
Schneider Electric Infrastructure Ltd.a | 131,771 | 222,597 | ||||||
Suzlon Energy Ltd.a | 8,003,913 | 1,572,617 | ||||||
V-Guard Industries Ltd. | 302,289 | 1,124,311 | ||||||
|
| |||||||
9,240,356 | ||||||||
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 0.52% |
| |||||||
Redington India Ltd. | 765,755 | 1,693,221 | ||||||
|
| |||||||
1,693,221 |
12 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Consolidated Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI INDIA SMALL-CAP ETF
February 28, 2018
Security | Shares | Value | ||||||
FOOD PRODUCTS — 2.36% |
| |||||||
Avanti Feeds Ltd. | 30,761 | $ | 1,132,249 | |||||
Balrampur Chini Mills Ltd. | 342,526 | 629,622 | ||||||
Kaveri Seed Co. Ltd. | 87,782 | 674,134 | ||||||
KRBL Ltd. | 129,216 | 1,093,193 | ||||||
McLeod Russel India Ltd. | 128,187 | 324,864 | ||||||
Tata Global Beverages Ltd. | 831,346 | 3,515,718 | ||||||
Zydus Wellness Ltd. | 18,229 | 350,120 | ||||||
|
| |||||||
7,719,900 | ||||||||
GAS UTILITIES — 1.04% |
| |||||||
Gujarat Gas Ltd. | 94,270 | 1,258,935 | ||||||
Gujarat State Petronet Ltd. | 364,336 | 1,157,945 | ||||||
Mahanagar Gas Ltd. | 61,516 | 985,210 | ||||||
|
| |||||||
3,402,090 | ||||||||
HEALTH CARE PROVIDERS & SERVICES — 2.60% |
| |||||||
Apollo Hospitals Enterprise Ltd. | 258,264 | 4,769,338 | ||||||
Dr Lal PathLabs Ltd.b | 49,456 | 692,044 | ||||||
Fortis Healthcare Ltd.a | 979,294 | 2,402,152 | ||||||
Narayana Hrudayalaya Ltd.a | 145,800 | 671,972 | ||||||
|
| |||||||
8,535,506 | ||||||||
HOTELS, RESTAURANTS & LEISURE — 3.09% |
| |||||||
Cox & Kings Ltd. | 235,716 | 863,859 | ||||||
Delta Corp. Ltd. | 184,213 | 980,782 | ||||||
EIH Ltd. | 406,656 | 1,084,895 | ||||||
Indian Hotels Co. Ltd. (The) | 1,357,481 | 2,857,855 | ||||||
Jubilant Foodworks Ltd. | 94,399 | 2,947,331 | ||||||
Mahindra Holidays & Resorts India Ltd. | 94,982 | 423,616 | ||||||
Thomas Cook India Ltd. | 257,338 | 959,296 | ||||||
|
| |||||||
10,117,634 | ||||||||
HOUSEHOLD DURABLES — 2.88% |
| |||||||
Bajaj Electricals Ltd. | 71,611 | 579,901 | ||||||
Crompton Greaves Consumer Electricals Ltd. | 1,057,578 | 3,774,383 | ||||||
Johnson Controls-Hitachi Air Conditioning India Ltd. | 19,246 | 671,300 | ||||||
LA Opala RG Ltd. | 24,090 | 240,064 | ||||||
Symphony Ltd. | 49,802 | 1,365,945 | ||||||
TTK Prestige Ltd. | 8,129 | 863,177 | ||||||
Whirlpool of India Ltd. | 89,017 | 1,957,394 | ||||||
|
| |||||||
9,452,164 | ||||||||
HOUSEHOLD PRODUCTS — 0.38% |
| |||||||
Eveready Industries India Ltd.a | 96,254 | 580,438 | ||||||
Jyothy Laboratories Ltd. | 127,195 | 670,082 | ||||||
|
| |||||||
1,250,520 |
Security | Shares | Value | ||||||
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS — 1.00% |
| |||||||
Adani Power Ltd.a | 2,714,076 | $ | 1,318,580 | |||||
PTC India Ltd. | 522,806 | 824,580 | ||||||
Reliance Power Ltd.a | 1,649,559 | 1,131,842 | ||||||
|
| |||||||
3,275,002 | ||||||||
INDUSTRIAL CONGLOMERATES — 0.27% |
| |||||||
Jaiprakash Associates Ltd.a | 3,229,274 | 877,382 | ||||||
|
| |||||||
877,382 | ||||||||
INSURANCE — 0.90% |
| |||||||
Max Financial Services Ltd.a | 386,039 | 2,935,902 | ||||||
|
| |||||||
2,935,902 | ||||||||
INTERNET & DIRECT MARKETING RETAIL — 0.28% |
| |||||||
Infibeam Incorporation Ltd. | 377,883 | 918,805 | ||||||
|
| |||||||
918,805 | ||||||||
INTERNET SOFTWARE & SERVICES — 1.26% |
| |||||||
Info Edge India Ltd. | 174,184 | 3,427,999 | ||||||
Just Dial Ltd.a | 102,528 | 711,206 | ||||||
|
| |||||||
4,139,205 | ||||||||
IT SERVICES — 3.87% |
| |||||||
eClerx Services Ltd. | 59,004 | 1,239,427 | ||||||
Hexaware Technologies Ltd. | 260,879 | 1,385,962 | ||||||
Larsen & Toubro Infotech Ltd.b | 95,076 | 2,101,716 | ||||||
Mindtree Ltd. | 281,593 | 3,523,249 | ||||||
Mphasis Ltd. | 223,116 | 2,944,342 | ||||||
Persistent Systems Ltd. | 114,613 | 1,504,657 | ||||||
|
| |||||||
12,699,353 | ||||||||
LIFE SCIENCES TOOLS & SERVICES — 1.60% |
| |||||||
Dishman Carbogen Amcis Ltd.a | 114,736 | 592,206 | ||||||
Divi’s Laboratories Ltd. | 226,310 | 3,563,849 | ||||||
Syngene International Ltd.b | 118,713 | 1,075,494 | ||||||
|
| |||||||
5,231,549 | ||||||||
MACHINERY — 3.77% |
| |||||||
AIA Engineering Ltd. | 110,508 | 2,442,003 | ||||||
BEML Ltd. | 29,709 | 563,249 | ||||||
Carborundum Universal Ltd. | 131,297 | 703,885 | ||||||
Cochin Shipyard Ltd.a,b | 76,891 | 628,501 | ||||||
Escorts Ltd. | 156,821 | 2,149,281 | ||||||
Force Motors Ltd. | 11,090 | 505,437 | ||||||
Greaves Cotton Ltd. | 172,117 | 327,741 | ||||||
ISGEC Heavy Engineering Ltd. | 5,219 | 598,317 | ||||||
Jain Irrigation Systems Ltd. | 867,125 | 1,556,656 | ||||||
Lakshmi Machine Works Ltd. | 7,790 | 810,565 | ||||||
Thermax Ltd. | 84,798 | 1,502,827 |
CONSOLIDATED SCHEDULESOF INVESTMENTS | 13 |
Table of Contents
Consolidated Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI INDIA SMALL-CAP ETF
February 28, 2018
Security | Shares | Value | ||||||
Timken India Ltd. | 47,996 | $ | 579,374 | |||||
|
| |||||||
12,367,836 | ||||||||
MARINE — 0.11% |
| |||||||
Shipping Corp. of India Ltd.a | 329,859 | 362,790 | ||||||
|
| |||||||
362,790 | ||||||||
MEDIA — 1.37% |
| |||||||
Chennai Super Kings Cricket Ltd. | 206,787 | 7,142 | ||||||
Dish TV India Ltd.a | 949,264 | 1,072,446 | ||||||
Inox Leisure Ltd.a | 128,055 | 552,054 | ||||||
Jagran Prakashan Ltd. | 236,481 | 602,762 | ||||||
Navneet Education Ltd. | 165,121 | 344,962 | ||||||
PVR Ltd. | 31,885 | 646,277 | ||||||
TV18 Broadcast Ltd.a | 1,300,363 | 1,250,536 | ||||||
|
| |||||||
4,476,179 | ||||||||
METALS & MINING — 2.32% |
| |||||||
APL Apollo Tubes Ltd. | 14,423 | 454,500 | ||||||
Jindal Saw Ltd. | 325,371 | 690,985 | ||||||
Jindal Stainless Ltd.a | 257,575 | 399,729 | ||||||
Jindal Steel & Power Ltd.a | 915,111 | 3,573,563 | ||||||
MOIL Ltd. | 186,333 | 633,111 | ||||||
National Aluminium Co. Ltd. | 1,134,575 | 1,193,854 | ||||||
Welspun Corp. Ltd. | 246,927 | 665,964 | ||||||
|
| |||||||
7,611,706 | ||||||||
MULTILINE RETAIL — 0.15% |
| |||||||
Shoppers Stop Ltd. | 59,084 | 488,888 | ||||||
|
| |||||||
488,888 | ||||||||
OIL, GAS & CONSUMABLE FUELS — 0.83% |
| |||||||
Aegis Logistics Ltd. | 226,813 | 879,451 | ||||||
Chennai Petroleum Corp. Ltd. | 105,509 | 590,658 | ||||||
Great Eastern Shipping Co. Ltd. (The) | 137,675 | 772,631 | ||||||
Gujarat Mineral Development Corp. Ltd. | 224,469 | 484,798 | ||||||
|
| |||||||
2,727,538 | ||||||||
PAPER & FOREST PRODUCTS — 0.38% |
| |||||||
Century Plyboards India Ltd. | 155,546 | 786,490 | ||||||
Greenply Industries Ltd. | 86,156 | 454,477 | ||||||
|
| |||||||
1,240,967 | ||||||||
PERSONAL PRODUCTS — 0.86% |
| |||||||
Bajaj Corp. Ltd. | 136,208 | 1,003,272 | ||||||
Gillette India Ltd. | 17,864 | 1,823,960 | ||||||
|
| |||||||
2,827,232 |
Security | Shares | Value | ||||||
PHARMACEUTICALS — 6.33% |
| |||||||
Ajanta Pharma Ltd. | 62,384 | $ | 1,338,484 | |||||
Alembic Pharmaceuticals Ltd. | 134,160 | 1,138,315 | ||||||
Caplin Point Laboratories Ltd. | 48,656 | 439,759 | ||||||
Eris Lifesciences Ltd.a,b | 96,361 | 1,114,465 | ||||||
FDC Ltd./India | 126,805 | 551,823 | ||||||
Granules India Ltd. | 172,807 | 314,068 | ||||||
Ipca Laboratories Ltd. | 131,144 | 1,354,494 | ||||||
Jubilant Life Sciences Ltd. | 204,263 | 2,751,360 | ||||||
Laurus Labs Ltd.b | 109,737 | 915,594 | ||||||
Marksans Pharma Ltd. | 629,516 | 368,648 | ||||||
Natco Pharma Ltd. | 256,401 | 3,143,504 | ||||||
Pfizer Ltd./India | 31,790 | 1,108,786 | ||||||
Sanofi India Ltd. | 15,546 | 1,216,130 | ||||||
Shilpa Medicare Ltd. | 71,403 | 479,135 | ||||||
Strides Shasun Ltd. | 125,139 | 1,378,241 | ||||||
Sun Pharma Advanced Research Co. Ltd.a | 181,307 | 1,183,782 | ||||||
Suven Life Sciences Ltd. | 131,355 | 378,764 | ||||||
Unichem Laboratories Ltd. | 105,654 | 537,545 | ||||||
Wockhardt Ltd.a | 81,372 | 1,024,359 | ||||||
|
| |||||||
20,737,256 | ||||||||
PROFESSIONAL SERVICES — 0.36% |
| |||||||
Quess Corp. Ltd.a,b | 75,015 | 1,191,040 | ||||||
|
| |||||||
1,191,040 | ||||||||
REAL ESTATE MANAGEMENT & DEVELOPMENT — 2.69% |
| |||||||
Godrej Properties Ltd.a | 149,128 | 1,785,976 | ||||||
Indiabulls Real Estate Ltd.a | 478,575 | 1,581,996 | ||||||
NESCO Ltd. | 40,799 | 374,978 | ||||||
Oberoi Realty Ltd. | 299,921 | 2,390,068 | ||||||
Prestige Estates Projects Ltd. | 331,575 | 1,706,577 | ||||||
Sobha Ltd. | 116,556 | 992,528 | ||||||
|
| |||||||
8,832,123 | ||||||||
ROAD & RAIL — 0.12% |
| |||||||
VRL Logistics Ltd. | 65,046 | 407,123 | ||||||
|
| |||||||
407,123 | ||||||||
SOFTWARE — 1.10% |
| |||||||
KPIT Technologies Ltd. | 406,882 | 1,349,689 | ||||||
NIIT Technologies Ltd. | 87,207 | 1,117,090 | ||||||
Tata Elxsi Ltd. | 43,416 | 701,927 | ||||||
Zensar Technologies Ltd. | 31,937 | 437,903 | ||||||
|
| |||||||
3,606,609 | ||||||||
SPECIALTY RETAIL — 0.73% |
| |||||||
Future Lifestyle Fashions Ltd. | 112,228 | 689,169 |
14 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Consolidated Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI INDIA SMALL-CAP ETF
February 28, 2018
Security | Shares | Value | ||||||
PC Jeweller Ltd. | 335,381 | $ | 1,715,098 | |||||
|
| |||||||
2,404,267 | ||||||||
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS — 0.00% |
| |||||||
Ricoh India Ltd.a,c | 9,870 | — | ||||||
|
| |||||||
— | ||||||||
TEXTILES, APPAREL & LUXURY GOODS — 5.66% |
| |||||||
Aditya Birla Fashion and Retail Ltd.a | 547,657 | 1,280,322 | ||||||
Arvind Ltd. | 372,626 | 2,402,046 | ||||||
Bata India Ltd. | 90,535 | 1,014,426 | ||||||
Bombay Dyeing & Manufacturing Co. Ltd. | 172,021 | 682,975 | ||||||
Himatsingka Seide Ltd. | 70,771 | 381,903 | ||||||
KPR Mill Ltd. | 51,546 | 573,764 | ||||||
Page Industries Ltd. | 15,435 | 5,185,819 | ||||||
Rajesh Exports Ltd. | 210,634 | 2,708,007 | ||||||
Raymond Ltd. | 77,488 | 1,135,267 | ||||||
SRF Ltd. | 40,894 | 1,191,895 | ||||||
Vardhman Textiles Ltd. | 40,907 | 846,412 | ||||||
VIP Industries Ltd. | 82,340 | 427,775 | ||||||
Welspun India Ltd. | 747,289 | 739,876 | ||||||
|
| |||||||
18,570,487 | ||||||||
THRIFTS & MORTGAGE FINANCE — 1.91% |
| |||||||
Can Fin Homes Ltd. | 94,758 | 787,562 | ||||||
Dewan Housing Finance Corp. Ltd. | 406,271 | 3,406,262 | ||||||
GRUH Finance Ltd. | 250,791 | 2,063,419 | ||||||
|
| |||||||
6,257,243 | ||||||||
TOBACCO — 0.15% |
| |||||||
Godfrey Phillips India Ltd. | 37,011 | 496,056 | ||||||
|
| |||||||
496,056 | ||||||||
TRADING COMPANIES & DISTRIBUTORS — 0.72% |
| |||||||
Adani Enterprises Ltd. | 758,174 | 2,368,921 | ||||||
|
| |||||||
2,368,921 | ||||||||
TRANSPORTATION INFRASTRUCTURE — 0.71% |
| |||||||
Gateway Distriparks Ltd. | 225,851 | 723,701 | ||||||
Gujarat Pipavav Port Ltd. | 608,638 | 1,326,655 | ||||||
Navkar Corp. Ltd.a,b | 107,093 | 279,296 | ||||||
|
| |||||||
2,329,652 | ||||||||
WATER UTILITIES — 0.20% |
| |||||||
VA Tech Wabag Ltd. | 79,326 | 670,444 | ||||||
|
| |||||||
670,444 |
Security | Shares | Value | ||||||
WIRELESS TELECOMMUNICATION SERVICES — 0.42% |
| |||||||
Reliance Communications Ltd.a | 3,166,754 | $ | 1,378,091 | |||||
|
| |||||||
1,378,091 | ||||||||
|
| |||||||
TOTAL COMMON STOCKS |
| |||||||
(Cost: $272,675,516) |
| 327,902,141 | ||||||
SHORT-TERM INVESTMENTS — 0.14% |
| |||||||
MONEY MARKET FUNDS — 0.14% |
| |||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | ||||||||
1.32%d,e | 445,539 | 445,539 | ||||||
|
| |||||||
445,539 | ||||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||||
(Cost: $445,539) |
| 445,539 | ||||||
|
| |||||||
TOTAL INVESTMENTS |
| |||||||
(Cost: $273,121,055) |
| 328,347,680 | ||||||
Other Assets, Less Liabilities — (0.16)% |
| (515,061 | ) | |||||
|
| |||||||
NET ASSETS — 100.00% |
| $ | 327,832,619 | |||||
|
|
a | Non-income producing security. |
b | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
c | Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. |
d | Affiliate of the Fund. |
e | Annualized 7-day yield as of period end. |
CONSOLIDATED SCHEDULESOF INVESTMENTS | 15 |
Table of Contents
Consolidated Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI INDIA SMALL-CAP ETF
February 28, 2018
Affiliates (Note 2)
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows:
Affiliated issuer | Shares held at 08/31/17 | Shares purchased | Shares sold | Shares held at 02/28/18 | Value at 02/28/18 | Income | Net realized gain (loss) a | Change in unrealized appreciation (depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Treasury, | — | 445,539 | b | — | 445,539 | $ | 445,539 | $ | 14,652 | $ | — | $ | — | |||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
a | Includes realized capital gain distributions from an affiliated fund, if any. |
b | Net of purchases and sales. |
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Consolidated Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common stocks | $ | 327,664,325 | $ | 237,816 | $ | 0 | a | $ | 327,902,141 | |||||||
Money market funds | 445,539 | — | — | 445,539 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 328,109,864 | $ | 237,816 | $ | 0 | a | $ | 328,347,680 | |||||||
|
|
|
|
|
|
|
| |||||||||
a | Rounds to less than $1. |
See notes to consolidated financial statements.
16 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Consolidated Statements of Assets and Liabilities (Unaudited)
iSHARES® TRUST
February 28, 2018
iShares ETF | iShares MSCI India Small-Cap ETF | |||||||
ASSETS |
| |||||||
Investments in securities, at cost: |
| |||||||
Unaffiliated | $ | 4,123,222,136 | $ | 272,675,516 | ||||
Affiliated (Note 2) | — | 445,539 | ||||||
|
|
|
| |||||
Total cost of investments in securities | $ | 4,123,222,136 | $ | 273,121,055 | ||||
|
|
|
| |||||
Investments in securities, at fair value (Note 1): |
| |||||||
Unaffiliated | $ | 5,380,910,693 | $ | 327,902,141 | ||||
Affiliated (Note 2) | — | 445,539 | ||||||
Foreign currency, at valuea | 1,096,045 | 197,817 | ||||||
Cash pledged to broker for futures contracts | 668,000 | — | ||||||
Cash | 70,422,554 | 2,458,548 | ||||||
Receivables: |
| |||||||
Investment securities sold | 67,103,449 | 14,163,909 | ||||||
Dividends and interest | 4,048,194 | 26,909 | ||||||
|
|
|
| |||||
Total Assets | 5,524,248,935 | 345,194,863 | ||||||
|
|
|
| |||||
LIABILITIES |
| |||||||
Payables: |
| |||||||
Investment securities purchased | 68,413,231 | 2,384,955 | ||||||
Capital shares redeemed | — | 12,191,734 | ||||||
Futures variation margin | 60,802 | — | ||||||
Deferred foreign capital gains taxes (Note 1) | 58,747,655 | 2,590,304 | ||||||
Investment advisory fees (Note 2) | 2,705,477 | 195,251 | ||||||
|
|
|
| |||||
Total Liabilities | 129,927,165 | 17,362,244 | ||||||
|
|
|
| |||||
NET ASSETS | $ | 5,394,321,770 | $ | 327,832,619 | ||||
|
|
|
| |||||
Net assets consist of: |
| |||||||
Paid-in capital | $ | 4,669,829,979 | $ | 286,227,013 | ||||
Undistributed (distributions in excess of) net investment income | 1,649,839 | (2,113,703 | ) | |||||
Accumulated net realized loss | (476,173,489 | ) | (8,914,859 | ) | ||||
Net unrealized appreciation | 1,199,015,441 | 52,634,168 | ||||||
|
|
|
| |||||
NET ASSETS | $ | 5,394,321,770 | $ | 327,832,619 | ||||
|
|
|
| |||||
Shares outstandingb | 154,650,000 | 6,650,000 | ||||||
|
|
|
| |||||
Net asset value per share | $ | 34.88 | $ | 49.30 | ||||
|
|
|
|
a | Cost of foreign currency: $1,102,531 and $198,130, respectively. |
b | No par value, unlimited number of shares authorized. |
See notes to consolidated financial statements.
CONSOLIDATED FINANCIAL STATEMENTS | 17 |
Table of Contents
Consolidated Statements of Operations (Unaudited)
iSHARES® TRUST
Six months ended February 28, 2018
iShares ETF | iShares MSCI India Small-Cap ETF | |||||||
NET INVESTMENT INCOME |
| |||||||
Dividends — unaffiliated | $ | 23,029,395 | $ | 783,958 | ||||
Dividends — affiliated (Note 2) | 331,521 | 14,652 | ||||||
|
|
|
| |||||
Total investment income | 23,360,916 | 798,610 | ||||||
|
|
|
| |||||
EXPENSES |
| |||||||
Investment advisory fees (Note 2) | 17,089,827 | 1,024,017 | ||||||
Mauritius income taxes (Note 1) | 1,409,052 | 66,529 | ||||||
Proxy fees | 547 | 18 | ||||||
|
|
|
| |||||
Total expenses | 18,499,426 | 1,090,564 | ||||||
|
|
|
| |||||
Net investment income (loss) | 4,861,490 | (291,954 | )�� | |||||
|
|
|
| |||||
NET REALIZED AND UNREALIZED GAIN (LOSS) |
| |||||||
Net realized gain (loss) from: |
| |||||||
Investments — unaffiliateda | (15,802,393 | ) | 1,196,922 | |||||
Futures contracts | 225,639 | — | ||||||
Foreign currency transactions | (76,048 | ) | (71,697 | ) | ||||
|
|
|
| |||||
Net realized gain (loss) | (15,652,802 | ) | 1,125,225 | |||||
|
|
|
| |||||
Net change in unrealized appreciation/depreciation on: |
| |||||||
Investments — unaffiliatedb | 143,908,752 | 11,681,784 | ||||||
Futures contracts | 139,491 | — | ||||||
Translation of assets and liabilities in foreign currencies | (67,996 | ) | (1,761 | ) | ||||
|
|
|
| |||||
Net change in unrealized appreciation/depreciation | 143,980,247 | 11,680,023 | ||||||
|
|
|
| |||||
Net realized and unrealized gain | 128,327,445 | 12,805,248 | ||||||
|
|
|
| |||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 133,188,935 | $ | 12,513,294 | ||||
|
|
|
|
a | Net of foreign capital gains taxes of $ — and $284,960, respectively. |
b | Net of deferred foreign capital gains taxes of $58,747,655 and $2,590,304, respectively. |
See notes to consolidated financial statements.
18 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Consolidated Statements of Changes in Net Assets
iSHARES® TRUST
iShares MSCI India ETF | iShares MSCI India Small-Cap ETF | |||||||||||||||
Six months February 28, 2018 (Unaudited) | Year ended August 31, 2017 | Six months February 28, 2018 (Unaudited) | Year ended August 31, 2017 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS |
| |||||||||||||||
OPERATIONS: |
| |||||||||||||||
Net investment income (loss) | $ | 4,861,490 | $ | 38,639,440 | $ | (291,954 | ) | $ | 263,789 | |||||||
Net realized gain (loss) | (15,652,802 | ) | (60,383,113 | ) | 1,125,225 | (988,405 | ) | |||||||||
Net change in unrealized appreciation/depreciation | 143,980,247 | 743,912,980 | 11,680,023 | 29,505,209 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase in net assets resulting from operations | 133,188,935 | 722,169,307 | 12,513,294 | 28,780,593 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: |
| |||||||||||||||
From net investment income | (40,547,406 | ) | (29,566,139 | ) | (2,774,235 | ) | (864,605 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions to shareholders | (40,547,406 | ) | (29,566,139 | ) | (2,774,235 | ) | (864,605 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL SHARE TRANSACTIONS: |
| |||||||||||||||
Proceeds from shares sold | 153,336,245 | 622,514,334 | 129,415,091 | 133,691,005 | ||||||||||||
Cost of shares redeemed | (115,474,517 | ) | (163,551,270 | ) | (17,235,846 | ) | (20,517,976 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase in net assets from capital share transactions | 37,861,728 | 458,963,064 | 112,179,245 | 113,173,029 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
INCREASE IN NET ASSETS | 130,503,257 | 1,151,566,232 | 121,918,304 | 141,089,017 | ||||||||||||
NET ASSETS |
| |||||||||||||||
Beginning of period | 5,263,818,513 | 4,112,252,281 | 205,914,315 | 64,825,298 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 5,394,321,770 | $ | 5,263,818,513 | $ | 327,832,619 | $ | 205,914,315 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed (distributions in excess of) net investment income included in net assets at end of period | $ | 1,649,839 | $ | 37,335,755 | $ | (2,113,703 | ) | $ | 952,486 | |||||||
|
|
|
|
|
|
|
| |||||||||
SHARES ISSUED AND REDEEMED |
| |||||||||||||||
Shares sold | 4,150,000 | 20,450,000 | 2,550,000 | 3,150,000 | ||||||||||||
Shares redeemed | (3,400,000 | ) | (5,450,000 | ) | (350,000 | ) | (500,000 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase in shares outstanding | 750,000 | 15,000,000 | 2,200,000 | 2,650,000 | ||||||||||||
|
|
|
|
|
|
|
|
See notes to consolidated financial statements.
CONSOLIDATED FINANCIAL STATEMENTS | 19 |
Table of Contents
Consolidated Financial Highlights
iSHARES® TRUST
(For a share outstanding throughout each period)
iShares MSCI India ETF | ||||||||||||||||||||||||
Six months Feb. 28, 2018 | Year ended Aug. 31, 2017 | Year ended Aug. 31, 2016 | Year ended Aug. 31, 2015 | Year ended Aug. 31, 2014 | Year ended Aug. 31, 2013 | |||||||||||||||||||
Net asset value, beginning of period | $ | 34.20 | $ | 29.61 | $ | 28.12 | $ | 30.83 | $ | 20.48 | $ | 22.44 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income from investment operations: |
| |||||||||||||||||||||||
Net investment incomea | 0.03 | 0.26 | 0.22 | 0.45 | 0.40 | 0.41 | ||||||||||||||||||
Net realized and unrealized gain (loss)b | 0.92 | 4.53 | 1.64 | (2.92 | ) | 10.12 | (2.29 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 0.95 | 4.79 | 1.86 | (2.47 | ) | 10.52 | (1.88 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Less distributions from: |
| |||||||||||||||||||||||
Net investment income | (0.27 | ) | (0.20 | ) | (0.37 | ) | (0.24 | ) | (0.17 | ) | (0.08 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | (0.27 | ) | (0.20 | ) | (0.37 | ) | (0.24 | ) | (0.17 | ) | (0.08 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 34.88 | $ | 34.20 | $ | 29.61 | $ | 28.12 | $ | 30.83 | $ | 20.48 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total return | 2.75 | %c | 16.27 | % | 6.73 | % | (8.05 | )% | 51.61 | % | (8.47 | )% | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios/Supplemental data: |
| |||||||||||||||||||||||
Net assets, end of period (000s) | $ | 5,394,322 | $ | 5,263,819 | $ | 4,112,252 | $ | 3,583,362 | $ | 1,456,894 | $ | 206,812 | ||||||||||||
Ratio of expenses to average net assetsd | 0.69 | % | 0.68 | % | 0.71 | % | 0.68 | % | 0.68 | % | 0.67 | % | ||||||||||||
Ratio of net investment income to average net assetsd | 0.18 | % | 0.87 | % | 0.79 | % | 1.47 | % | 1.47 | % | 1.69 | % | ||||||||||||
Portfolio turnover ratee | 6 | %c | 13 | % | 25 | % | 30 | % | 22 | % | 176 | % |
a | Based on average shares outstanding throughout each period. |
b | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | Portfolio turnover rates include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units solely for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the six months ended February 28, 2018, the years ended August 31, 2017, August 31, 2016, August 31, 2015, August 31, 2014 and August 31, 2013 were 4%, 5%, 15%, 22%, 14% and 22%, respectively. See Note 4. |
See notes to consolidated financial statements.
20 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Consolidated Financial Highlights (Continued)
iSHARES® TRUST
(For a share outstanding throughout each period)
iShares MSCI India Small-Cap ETF | ||||||||||||||||||||||||
Six months ended Feb. 28, 2018 (Unaudited) | Year ended Aug. 31, 2017 | Year ended Aug. 31, 2016 | Year ended Aug. 31, 2015 | Year ended Aug. 31, 2014 | Year ended Aug. 31, 2013 | |||||||||||||||||||
Net asset value, beginning of period | $ | 46.27 | $ | 36.01 | $ | 32.24 | $ | 31.44 | $ | 15.49 | $ | 21.19 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income from investment operations: |
| |||||||||||||||||||||||
Net investment income (loss)a | (0.05 | ) | 0.09 | 0.07 | 0.21 | 0.26 | 0.21 | |||||||||||||||||
Net realized and unrealized gain (loss)b | 3.55 | 10.55 | 4.36 | 0.69 | 15.84 | (5.59 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 3.50 | 10.64 | 4.43 | 0.90 | 16.10 | (5.38 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Less distributions from: |
| |||||||||||||||||||||||
Net investment income | (0.47 | ) | (0.38 | ) | (0.66 | ) | (0.10 | ) | (0.15 | ) | (0.32 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | (0.47 | ) | (0.38 | ) | (0.66 | ) | (0.10 | ) | (0.15 | ) | (0.32 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 49.30 | $ | 46.27 | $ | 36.01 | $ | 32.24 | $ | 31.44 | $ | 15.49 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total return | 7.55 | %c | 29.97 | % | 13.99 | % | 2.87 | % | 104.53 | %d | (25.98 | )% | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios/Supplemental data: |
| |||||||||||||||||||||||
Net assets, end of period (000s) | $ | 327,833 | $ | 205,914 | $ | 64,825 | $ | 62,874 | $ | 11,003 | $ | 2,324 | ||||||||||||
Ratio of expenses to average net assetse | 0.79 | % | 0.75 | % | 0.80 | % | 0.74 | % | 0.74 | % | 0.74 | % | ||||||||||||
Ratio of net investment income (loss) to average net assetse | (0.21 | )% | 0.21 | % | 0.23 | % | 0.62 | % | 1.06 | % | 0.92 | % | ||||||||||||
Portfolio turnover ratef | 21 | %c | 38 | % | 53 | % | 73 | % | 54 | % | 26 | % |
a | Based on average shares outstanding throughout each period. |
b | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
c | Not annualized. |
d | The total return disclosed is based on the net asset value (“NAV”) calculated daily for the creation and redemption of shares in the Fund, which may differ from the NAV calculated for financial reporting purposes. Based on the NAV calculated for financial reporting purposes, the total return for the Fund was 104.39%. |
e | Annualized for periods of less than one year. |
f | Portfolio turnover rates include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units solely for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the six months ended February 28, 2018, the years ended August 31, 2017, August 31, 2016, August 31, 2015, August 31, 2014 and August 31, 2013 were 14%, 22%, 25%, 61%, 28% and 26%, respectively. See Note 4. |
See notes to consolidated financial statements.
CONSOLIDATED FINANCIAL HIGHLIGHTS | 21 |
Table of Contents
Notes to Consolidated Financial Statements (Unaudited)
iSHARES® TRUST
iShares Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust was established as a Delaware statutory trust pursuant to an Agreement and Declaration of Trust dated December 16, 1999.
These consolidated financial statements relate only to the following funds (each, a “Fund,” and collectively, the “Funds”):
iShares ETF | Diversification Classification | |
MSCI India | Non-diversified | |
MSCI India Small-Cap | Diversified |
The investment objective of each Fund is to seek investment results that correspond generally to the price and yield performance, before fees and expenses, of its underlying index. The investment adviser uses a “passive” or index approach to try to achieve each Fund’s investment objective.
Each Fund carries out its investment strategies by investing substantially all of its assets in a wholly-owned subsidiary in the Republic of Mauritius (each, a “Subsidiary”), which in turn, invests in securities that comprise the underlying index. The investment adviser of each Fund also serves as the investment adviser to each Subsidiary. Through this investment structure, each Fund expects to obtain certain benefits under a current tax treaty between Mauritius and India. The accompanying consolidated financial statements for each Fund include the accounts of its Subsidiary. Intercompany accounts and transactions, if any, have been eliminated.
Pursuant to the Trust’s organizational documents, the Funds’ officers and trustees are indemnified against certain liabilities that may arise out of the performance of their duties to the Funds. Additionally, in the normal course of business, the Funds enter into contracts with service providers that contain general indemnification clauses. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred.
1. | SIGNIFICANT ACCOUNTING POLICIES |
The following significant accounting policies are consistently followed by each Fund in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies.
SECURITY VALUATION
Each Fund’s investments are valued at fair value each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date should the reporting period end on a day that the Fund’s listing exchange is not open. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation
22 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Consolidated Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
Committee”) provides oversight of the valuation of investments for the Funds. The investments of each Fund are valued pursuant to policies and procedures developed by the Global Valuation Committee and approved by the Board of Trustees of the Trust (the “Board”).
• | Equity investments traded on a recognized securities exchange are valued at that day’s last reported trade price or the official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price. |
• | Open-end U.S. mutual funds (including money market funds) are valued at that day’s published net asset value (“NAV”). |
• | Futures contract notional values are determined based on that day’s last reported settlement price on the exchange where the contract is traded. |
In the event that application of these methods of valuation results in a price for an investment which is deemed not to be representative of the fair value of such investment or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board. The fair valuation approaches that may be utilized by the Global Valuation Committee to determine fair value include market approach, income approach and the cost approach. The valuation techniques used under these approaches take into consideration inputs that include but are not limited to (i) attributes specific to the investment; (ii) the principal market for the investment; (iii) the customary participants in the principal market for the investment; (iv) data assumptions by market participants for the investment, if reasonably available; (v) quoted prices for similar investments in active markets; and (vi) other inputs, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates. Valuations based on such inputs are reported to the Board on a quarterly basis.
The Global Valuation Committee employs various methods for calibrating valuation approaches for investments where an active market does not exist, including regular due diligence of the Trust’s pricing vendors, a regular review of key inputs and assumptions, transactional back-testing or disposition analysis to compare unrealized gains and losses to realized gains and losses, reviews of missing or stale prices, reviews of large movements in market values, and reviews of market related activity.
Fair value pricing could result in a difference between the prices used to calculate a Fund’s NAV and the prices used by the Fund’s underlying index, which in turn could result in a difference between the Fund’s performance and the performance of the Fund’s underlying index.
Various inputs are used in determining the fair value of financial instruments. Inputs may be based on independent market data (“observable inputs”) or they may be internally developed (“unobservable inputs”). These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:
• | Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities; |
• | Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability (such as exchange rates, financing terms, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and |
• | Level 3 — Unobservable inputs for the asset or liability based on the best information available in the circumstances, to the extent observable inputs are not available, including the Global Valuation Committee’s assumptions used in determining the fair value of investments. |
NOTESTO CONSOLIDATED FINANCIAL STATEMENTS | 23 |
Table of Contents
Notes to Consolidated Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgement exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value hierarchy for each Fund’s investments is included in its consolidated schedule of investments.
Changes in valuation techniques may result in transfers in or out of an assigned level within the fair value hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of values determined for financial instruments are based on the pricing transparency of the financial instruments and are not necessarily an indication of the risks associated with investing in those securities.
SECURITY TRANSACTIONS AND INCOME RECOGNITION
Security transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recognized on the ex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities as of February 28, 2018 are reflected in tax reclaims receivable. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be re-designated as a return of capital or capital gain. Non-cash dividends, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Distributions received by the Funds may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. Interest income is accrued daily.
FOREIGN CURRENCY TRANSLATION
The accounting records of the Funds are maintained in U.S. dollars. Foreign currencies, as well as investment securities and other assets and liabilities denominated in foreign currencies, are translated into U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of securities, income receipts and expense payments are translated into U.S. dollars on the respective dates of such transactions.
Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of securities. Such fluctuations are reflected by the Funds as a component of realized and unrealized gains and losses from investments for financial reporting purposes. Each Fund reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes.
FOREIGN TAXES
The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Funds invest. These foreign taxes, if any, are paid by the Funds and are reflected in their consolidated statements of operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of February 28, 2018, if any, are disclosed in the Funds’ consolidated statements of assets and liabilities.
24 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Consolidated Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
Each Fund conducts its investment activities in India through its Subsidiary and expects to obtain benefits under the Double Tax Avoidance Agreement (“DTAA”) between India and Mauritius. In order to be eligible to claim benefits under the DTAA, each Subsidiary must, on an annual basis, satisfy certain tests and conditions, including the establishment and maintenance of valid tax residence in Mauritius and related requirements. Each Fund has obtained a current tax residence certificate issued by the Mauritian Revenue Authorities.
Based upon current interpretation and practice of the current tax laws in India and Mauritius and the DTAA, each Subsidiary is subject to tax in Mauritius on its net income at the rate of 15%. However, a system of tax credits effectively reduces the Mauritius income tax rate to a maximum of 3%. Taxes on income, if any, are paid by the Subsidiary and are disclosed in the consolidated statements of operations. Any dividends paid by a Subsidiary to its Fund are not subject to tax in Mauritius. Each Subsidiary is currently exempt from tax in Mauritius on any gains from the sale of securities.
The DTAA provides that capital gains will be taxable in India with respect to the sale of shares acquired on or after April 1, 2017. Capital gains arising from shares acquired before April 1, 2017, regardless of when they are sold, will continue to be exempt from taxation under the amended DTAA, assuming requirements for eligibility under the DTAA are satisfied.
DISTRIBUTIONS TO SHAREHOLDERS
Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds.
2. | INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES |
Pursuant to an Investment Advisory Agreement with the Trust, BlackRock Fund Advisors (“BFA”) manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock, Inc. (“BlackRock”). Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent trustees).
Each Subsidiary has entered into a separate contract with BFA under which BFA provides investment advisory services to the Subsidiary but does not receive separate compensation from the Subsidiary for providing it with such services. Each Subsidiary has also entered into separate arrangements that provide for the provision of other services to the Subsidiary (including administrative, custody, transfer agency and other services), and BFA pays the costs and expenses related to the provision of those services.
For its investment advisory services to the iShares MSCI India ETF, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Fund, based on the average daily net assets of the Fund as follows:
Investment Advisory Fee | Average Daily Net Assets | ||||
0.6500 | % | First $4 billion | |||
0.6175 | Over $4 billion, up to and including $6 billion | ||||
0.5867 | Over $6 billion, up to and including $8 billion | ||||
0.5573 | Over $8 billion |
NOTESTO CONSOLIDATED FINANCIAL STATEMENTS | 25 |
Table of Contents
Notes to Consolidated Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
For its investment advisory services to the iShares MSCI India Small-Cap ETF, BFA is entitled to an annual investment advisory fee of 0.74%, accrued daily and paid monthly by the Fund, based on the average daily net assets of the Fund.
BlackRock Investments, LLC, an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.
Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is included in “Dividends – affiliated” in the consolidated statements of operations.
The PNC Financial Services Group, Inc. is the largest stockholder of BlackRock and is considered to be an affiliate of the Funds for 1940 Act purposes.
Certain trustees and officers of the Trust are also officers of BlackRock Institutional Trust Company, N.A. and/or BFA.
3. | INVESTMENT PORTFOLIO TRANSACTIONS |
Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the six months ended February 28, 2018 were as follows:
iShares ETF | Purchases | Sales | ||||||
MSCI India | $ | 319,980,556 | $ | 350,294,414 | ||||
MSCI India Small-Cap | 165,415,758 | 57,380,037 |
There were no in-kind transactions (see Note 4) for the six months ended February 28, 2018.
4. | CAPITAL SHARE TRANSACTIONS |
Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable. Transactions in capital shares for each Fund are disclosed in detail in the consolidated statements of changes in net assets.
The consideration for the purchase of Creation Units of a fund in the Trust generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Trust may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to State Street Bank and Trust Company, the Trust’s administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in “Proceeds from shares sold” in the consolidated statements of changes in net assets.
5. | FUTURES CONTRACTS |
The Fund’s use of futures contracts is generally limited to cash equitization. This involves the use of available cash to invest in index futures contracts in order to gain exposure to the equity markets represented in or by the Fund’s underlying index and is intended to allow the Fund to better track its underlying index. Futures contracts are standardized, exchange-traded agreements to buy or sell a financial instrument at a set price on a future date. Upon entering into a futures contract, a fund is required to
26 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Consolidated Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
pledge to the executing broker which holds segregated from its own assets, an amount of cash, U.S. government securities or other high-quality debt and equity securities equal to the minimum initial margin requirements of the exchange on which the contract is traded.
Pursuant to the contract, the fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract. Such receipts or payments are known as margin variation and are recorded by the fund as unrealized appreciation or depreciation. When the contract is closed, the fund records a realized gain or loss equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. Losses may arise if the notional value of a futures contract decreases due to an unfavorable change in the market rates or values of the underlying instrument during the term of the contract or if the counterparty does not perform under the contract. The use of futures contracts also involves the risk of an imperfect correlation in the movements in the price of futures contracts and the assets underlying such contracts.
The following table shows the value of futures contracts held by the iShares MSCI India ETF as of February 28, 2018 and the related locations in the consolidated statements of assets and liabilities, presented by risk exposure category:
Assets | ||||
Futures contracts: | ||||
Variation margin / Net assets consist of – net | $ | 139,491 | ||
|
| |||
a | Represents cumulative appreciation of futures contracts as reported in the consolidated schedule of investments. Only current day’s variation margin is reported separately within the consolidated statements of assets and liabilities. |
The following table shows the realized and unrealized gains (losses) on futures contracts held by the iShares MSCI India ETF during the six months ended February 28, 2018 and the related locations in the consolidated statements of operations, presented by risk exposure category:
Net Realized Gain (Loss) | Net Change in Unrealized Appreciation/Depreciation | |||||||
Futures contracts | $ | 225,639 | $ | 139,491 | ||||
|
|
|
| |||||
The following table shows the average quarter-end balances of open futures contracts for the iShares MSCI India ETF for the six months ended February 28, 2018:
Average notional value of contracts purchased | $ | 5,225,183 |
6. | PRINCIPAL RISKS |
In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Each Fund’s prospectus provides details of the risks to which the Fund is subject.
NOTESTO CONSOLIDATED FINANCIAL STATEMENTS | 27 |
Table of Contents
Notes to Consolidated Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
BFA uses a “passive” or index approach to try to achieve each Fund’s investment objective following the securities included in its underlying index during upturns as well as downturns. BFA does not take steps to reduce market exposure or to lessen the effects of a declining market. Divergence from the underlying index and the composition of the portfolio is monitored by BFA.
MARKET RISK
Market risk arises mainly from uncertainty about future values of financial instruments influenced by price, currency and interest rate movements. It represents the potential loss a fund may suffer through holding market positions in the face of market movements. A fund is exposed to market risk by its investment in equity, fixed income and/or financial derivative instruments or by its investment in underlying funds. The fair value of securities held by a fund may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. The extent of a fund’s exposure to market risk is the market value of the investments held as shown in the fund’s schedule of investments.
A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its consolidated schedule of investments.
Investing in the securities of non-U.S. issuers involves certain considerations and risks not typically associated with securities of U.S. issuers. Such risks include, but are not limited to: differences in accounting, auditing and financial reporting standards; more substantial governmental involvement in the economy; higher inflation rates, greater social, economic and political uncertainties; possible nationalization or expropriation of assets; less availability of public information about issuers; imposition of withholding or other taxes; higher transaction and custody costs and delays in settlement procedures; and lower level of regulation of the securities markets and issuers. Non-U.S. securities may be less liquid, more difficult to value, and have greater price volatility due to exchange rate fluctuations. These and other risks are heightened for investments in issuers from countries with less developed capital markets.
When a fund concentrates its investments in issuers located in a single country, it assumes the risk that economic, political and social conditions in that country may have a significant impact on its investment performance.
CREDIT RISK
Credit risk is the risk that an issuer or guarantor of debt instruments or the counterparty to a financial transaction, including derivatives contracts, repurchase agreements or loans of portfolio securities, is unable or unwilling to make timely interest and/or principal payments or to otherwise honor its obligations. BFA and its affiliates manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose a fund to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of a fund’s exposure to credit and counterparty risks with respect to those financial assets is approximated by their value recorded in its statement of assets and liabilities.
7. | INCOME TAX INFORMATION |
Each Fund is treated as an entity separate from the Trust’s other funds for federal income tax purposes. It is the policy of each Fund to qualify as a regulated investment company by complying with the provisions applicable to regulated investment companies, as defined under Subchapter M of the Internal Revenue Code of 1986, as amended, and to annually distribute
28 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Consolidated Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
substantially all of its ordinary income and any net capital gains (taking into account any capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income and excise taxes. Accordingly, no provision for federal income taxes is required.
For purposes of U.S. GAAP, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or NAV per share.
The tax character of current year distributions will be determined at the end of the current fiscal year.
As of August 31, 2017, the Funds’ fiscal year end, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:
iShares ETF | Non- Expiring | |
MSCI India | $259,187,469 | |
MSCI India Small-Cap | 4,917,427 |
The Funds may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” The Funds may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.
As of February 28, 2018, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives) for U.S. federal income tax purposes were as follows:
iShares ETF | Tax Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||
MSCI India | $ | 4,325,636,775 | $ | 1,442,438,820 | $ | (387,025,411 | ) | $ | 1,055,413,409 | |||||||
MSCI India Small-Cap | 278,480,002 | 61,048,989 | (11,181,311 | ) | 49,867,678 |
Management has analyzed tax laws and regulations and their application to the Funds as of February 28, 2018, inclusive of the open tax return years, and does not believe there are any uncertain tax positions that require recognition of a tax liability in the Funds’ consolidated financial statements.
8. | LEGAL PROCEEDINGS |
On June 16, 2016, investors (the “Plaintiffs”) in certain iShares funds (iShares Core S&P Small-Cap ETF, iShares Russell 1000 Growth ETF, iShares Core S&P 500 ETF, iShares Russell Mid-Cap Growth ETF, iShares Russell Mid-Cap ETF, iShares Russell Mid-Cap Value ETF, iShares Select Dividend ETF, iShares Morningstar Mid-Cap ETF, iShares Morningstar Large-Cap ETF, iShares U.S. Aerospace & Defense ETF and iShares U.S. Preferred Stock ETF) filed a putative class action lawsuit against iShares Trust, BlackRock, Inc. and certain of its advisory affiliates, and certain directors/trustees and officers of the Funds (collectively, “Defendants”) in California State Court. The lawsuit alleges the Defendants violated federal securities laws by failing to adequately disclose in the prospectuses issued by the funds noted above the risks of using stop-loss orders in the event of a ‘flash crash’, such as the one that occurred on May 6, 2010. On September 18, 2017, the court issued a Statement of Decision
NOTESTO CONSOLIDATED FINANCIAL STATEMENTS | 29 |
Table of Contents
Notes to Consolidated Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
holding that the Plaintiffs lack standing to assert their claims. On October 11, 2017, the court entered final judgment dismissing all of the Plaintiffs’ claims with prejudice. Plaintiffs have appealed the court’s decision.
9. | SUBSEQUENT EVENTS |
Management has evaluated the impact of all subsequent events on the Funds through the date the consolidated financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or disclosure in the consolidated financial statements.
30 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
iSHARES® TRUST
Section 19(a) Notices
The amounts and sources of distributions reported are estimates and are provided pursuant to regulatory requirements and are not being provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon each Fund’s investment experience during the year and may be subject to changes based on the tax regulations. Shareholders will receive a Form 1099-DIV each calendar year that will inform them how to report these distributions for federal income tax purposes.
Total Cumulative Distributions for the Fiscal Year-to-Date | % Breakdown of the Total Cumulative Distributions for the Fiscal Year-to-Date | |||||||||||||||||||||||||||||||
iShares ETF | Net Investment Income | Net Realized Capital Gains | Return of Capital | Total Per Share | Net Investment Income | Net Realized Capital Gains | Return of Capital | Total Per Share | ||||||||||||||||||||||||
MSCI India | $ | — | $ | — | $ | 0.267728 | $ | 0.267728 | — | % | — | % | 100 | % | 100 | % | ||||||||||||||||
MSCI India Small-Cap | — | — | 0.466258 | 0.466258 | — | — | 100 | 100 |
SUPPLEMENTAL INFORMATION | 31 |
Table of Contents
Electronic Delivery
Shareholders can sign up for email notifications announcing that the shareholder report or prospectus has been posted on the iShares website at www.iShares.com. Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail.
To enroll in electronic delivery:
• | Go to www.icsdelivery.com. |
• | If your brokerage firm is not listed, electronic delivery may not be available. Please contact your broker-dealer or financial advisor. |
Householding
Householding is an option available to certain fund investors. Householding is a method of delivery, based on the preference of the individual investor, in which a single copy of certain shareholder documents can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.
Availability of Quarterly Schedule of Investments
The iShares Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The iShares Funds’ Forms N-Q are available on the SEC’s website and may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The iShares Funds also discloses their complete schedule of portfolio holdings on a daily basis on the iShares website.
Availability of Proxy Voting Policies and Proxy Voting Records
A description of the policies and procedures that the iShares Funds use to determine how to vote proxies relating to portfolio securities and information about how the iShares Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request (1) by calling toll-free 1-800-474-2737; (2) on the iShares website at www.iShares.com; and (3) on the SEC website at www.sec.gov.
32 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes:
NOTES | 33 |
Table of Contents
Notes:
34 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
For more information visit www.iShares.com or call 1-800-iShares (1-800-474-2737)
This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus.
Investing involves risk, including possible loss of principal.
The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).
The iShares Funds are not sponsored, endorsed, issued, sold or promoted by MSCI Inc., nor does this company make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the company listed above.
©2018 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.
iS-SAR-809-0218
Table of Contents
FEBRUARY 28, 2018
2018 SEMI-ANNUAL REPORT (UNAUDITED) |
iShares Trust
Ø | iShares Currency Hedged MSCI United Kingdom ETF | HEWU | NYSE Arca |
Ø | iShares MSCI United Kingdom ETF | EWU | NYSE Arca |
Ø | iShares MSCI United Kingdom Small-Cap ETF | EWUS | Cboe BZX |
Table of Contents
5 | ||||
8 | ||||
8 | ||||
9 | ||||
9 | ||||
11 | ||||
15 | ||||
21 | ||||
25 | ||||
28 | ||||
41 | ||||
42 |
Table of Contents
iSHARES® CURRENCY HEDGED MSCI UNITED KINGDOM ETF
Performance as of February 28, 2018
The iShares Currency Hedged MSCI United Kingdom ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization United Kingdom equities while mitigating exposure to fluctuations between the value of the British pound and the U.S. dollar, as represented by the MSCI United Kingdom 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 United Kingdom ETF. For the six-month reporting period ended February 28, 2018, the total return for the Fund was -1.35%, net of fees, while the total return for the Index was -0.84%.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||||||||
1 Year | 2.95% | 3.08% | 4.25% | 2.95% | 3.08% | 4.25% | ||||||||||||||||||||||
Since Inception | 7.24% | 7.24% | 7.62% | 20.53% | 20.52% | 21.67% |
The inception date of the Fund was 6/29/15. The first day of secondary market trading was 7/1/15.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 8 for more information.
Shareholder Expenses | ||||||||||||||||||||||||||
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a,b | Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a,b | Annualized Expense Ratio a | ||||||||||||||||||||
$ | 1,000.00 | $ | 986.50 | $ | 0.00 | $ | 1,000.00 | $ | 1,024.80 | $ | 0.00 | 0.00% |
a | Annualized expense ratio and expenses paid during the period do not include fees and expenses of the underlying fund in which the Fund invests. |
b | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 8 for more information. |
ALLOCATION BY SECTOR1
As of 2/28/18
Sector | Percentage of Total Investments 2 |
Financials | 23.09 | % | ||
Consumer Staples | 16.72 | |||
Energy | 15.64 | |||
Materials | 9.77 | |||
Health Care | 9.13 | |||
Consumer Discretionary | 8.62 | |||
Industrials | 7.81 | |||
Telecommunication Services | 4.02 | |||
Utilities | 2.92 | |||
Real Estate | 1.20 | |||
Information Technology | 1.08 | |||
|
| |||
TOTAL | 100.00 | % | ||
|
|
TEN LARGEST FUND HOLDINGS1
As of 2/28/18
Security | Percentage of Total Investments 2 |
HSBC Holdings PLC | 7.74 | % | ||
Royal Dutch Shell PLC Class A ADR | 5.65 | |||
British American Tobacco PLC | 5.32 | |||
BP PLC | 5.08 | |||
Royal Dutch Shell PLC Class B | 4.70 | |||
GlaxoSmithKline PLC | 3.47 | |||
Diageo PLC | 3.31 | |||
AstraZeneca PLC | 3.26 | |||
Vodafone Group PLC | 2.93 | |||
Lloyds Banking Group PLC | 2.67 | |||
|
| |||
TOTAL | 44.13 | % | ||
|
|
1 | Table shown is for the iShares MSCI United Kingdom ETF, the underlying fund in which the Fund invests. |
2 | Excludes money market funds. |
FUND PERFORMANCE OVERVIEWS | 5 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI UNITED KINGDOM ETF
Performance as of February 28, 2018
The iShares MSCI United Kingdom ETF (the “Fund”) seeks to track the investment results of an index composed of U.K. equities, as represented by the MSCI United Kingdom 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. For the six-month reporting period ended February 28, 2018, the total return for the Fund was 5.06%, net of fees, while the total return for the Index was 5.35%.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||||||||
1 Year | 13.61% | 13.19% | 14.17% | 13.61% | 13.19% | 14.17% | ||||||||||||||||||||||
5 Years | 3.67% | 3.55% | 4.19% | 19.76% | 19.07% | 22.79% | ||||||||||||||||||||||
10 Years | 1.55% | 1.58% | 2.09% | 16.64% | 16.99% | 22.96% |
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 8 for more information.
Shareholder Expenses | ||||||||||||||||||||||||||
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Annualized Expense Ratio | ||||||||||||||||||||
$ | 1,000.00 | $ | 1,050.60 | $ | 2.39 | $ | 1,000.00 | $ | 1,022.50 | $ | 2.36 | 0.47% |
a | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 8 for more information. |
ALLOCATION BY SECTOR
As of 2/28/18
Sector | Percentage of Total Investments* |
Financials | 23.09 | % | ||
Consumer Staples | 16.72 | |||
Energy | 15.64 | |||
Materials | 9.77 | |||
Health Care | 9.13 | |||
Consumer Discretionary | 8.62 | |||
Industrials | 7.81 | |||
Telecommunication Services | 4.02 | |||
Utilities | 2.92 | |||
Real Estate | 1.20 | |||
Information Technology | 1.08 | |||
|
| |||
TOTAL | 100.00 | % | ||
|
|
TEN LARGEST FUND HOLDINGS
As of 2/28/18
Security | Percentage of Total Investments* |
HSBC Holdings PLC | 7.74 | % | ||
Royal Dutch Shell PLC Class A ADR | 5.65 | |||
British American Tobacco PLC | 5.32 | |||
BP PLC | 5.08 | |||
Royal Dutch Shell PLC Class B | 4.70 | |||
GlaxoSmithKline PLC | 3.47 | |||
Diageo PLC | 3.31 | |||
AstraZeneca PLC | 3.26 | |||
Vodafone Group PLC | 2.93 | |||
Lloyds Banking Group PLC | 2.67 | |||
|
| |||
TOTAL | 44.13 | % | ||
|
|
* | Excludes money market funds. |
6 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI UNITED KINGDOM SMALL-CAP ETF
Performance as of February 28, 2018
The iShares MSCI United Kingdom Small-Cap ETF (the “Fund”) seeks to track the investment results of an index composed of small-capitalization U.K. equities, as represented by the MSCI United Kingdom 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. For the six-month reporting period ended February 28, 2018, the total return for the Fund was 8.79%, net of fees, while the total return for the Index was 9.14%.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||||||||
1 Year | 22.47% | 22.60% | 23.25% | 22.47% | 22.60% | 23.25% | ||||||||||||||||||||||
5 Years | 9.11% | 8.97% | 9.77% | 54.65% | 53.65% | 59.39% | ||||||||||||||||||||||
Since Inception | 11.92% | 11.86% | 12.59% | 98.67% | 98.06% | 106.12% |
The inception date of the Fund was 1/25/12. The first day of secondary market trading was 1/26/12.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 8 for more information.
Shareholder Expenses | ||||||||||||||||||||||||||
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Annualized Expense Ratio | ||||||||||||||||||||
$ | 1,000.00 | $ | 1,087.90 | $ | 3.05 | $ | 1,000.00 | $ | 1,021.90 | $ | 2.96 | 0.59% |
a | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 8 for more information. |
ALLOCATION BY SECTOR
As of 2/28/18
Sector | Percentage of Total Investments* |
Consumer Discretionary | 23.62 | % | ||
Industrials | 18.04 | |||
Financials | 15.62 | |||
Information Technology | 10.15 | |||
Real Estate | 8.70 | |||
Materials | 8.57 | |||
Health Care | 6.15 | |||
Consumer Staples | 4.30 | |||
Energy | 2.64 | |||
Utilities | 1.24 | |||
Telecommunication Services | 0.97 | |||
|
| |||
TOTAL | 100.00 | % | ||
|
|
TEN LARGEST FUND HOLDINGS
As of 2/28/18
Security | Percentage of Total Investments* |
Informa PLC | 1.65 | % | ||
Rentokil Initial PLC | 1.53 | |||
DS Smith PLC | 1.47 | |||
Just Eat PLC | 1.37 | |||
Halma PLC | 1.32 | |||
Melrose Industries PLC | 1.27 | |||
Spirax-Sarco Engineering PLC | 1.21 | |||
ASOS PLC | 1.16 | |||
Hiscox Ltd. | 1.15 | |||
Rightmove PLC | 1.13 | |||
|
| |||
TOTAL | 13.26 | % | ||
|
|
* | Excludes money market funds. |
FUND PERFORMANCE OVERVIEWS | 7 |
Table of Contents
Past performance is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at www.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. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer 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. Certain funds may have a NAV which is determined prior to the opening of regular trading on its listed exchange and their market returns are calculated using the midpoint of the bid/ask spread as of the opening of regular trading on the exchange. 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.
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested on September 1, 2017 and held through February 28, 2018, is intended to help you understand your ongoing costs (in dollars and cents) of investing in a Fund and to compare these costs with the ongoing costs of investing in other funds.
Actual Expenses — The table provides information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. To estimate the expenses that you paid on your account over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number corresponding to your Fund under the heading entitled “Expenses Paid During Period.”
Hypothetical Example for Comparison Purposes — The table also provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions paid on purchases and sales of fund shares. Therefore, the hypothetical examples are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
8 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® CURRENCY HEDGED MSCI UNITED KINGDOM ETF
February 28, 2018
Security | Shares | Value | ||||||
INVESTMENT COMPANIES — 98.66% |
| |||||||
EXCHANGE-TRADED FUNDS — 98.66% |
| |||||||
iShares MSCI United Kingdom ETFa,b | 394,245 | $ | 13,668,474 | |||||
|
| |||||||
13,668,474 | ||||||||
|
| |||||||
TOTAL INVESTMENT COMPANIES |
| |||||||
(Cost: $13,222,450) |
| 13,668,474 | ||||||
SHORT-TERM INVESTMENTS — 26.04% |
| |||||||
MONEY MARKET FUNDS — 26.04% |
| |||||||
BlackRock Cash Funds: Institutional, | ||||||||
1.58%b,c,d | 3,599,640 | 3,600,000 | ||||||
BlackRock Cash Funds: Treasury, | ||||||||
1.32%b,c | 6,988 | 6,988 | ||||||
|
| |||||||
3,606,988 | ||||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS |
| 3,606,988 | ||||||
|
|
Value | ||||||
TOTAL INVESTMENTS | ||||||
(Cost: $16,829,438) | $ | 17,275,462 | ||||
Other Assets, Less Liabilities — (24.70)% | (3,421,396 | ) | ||||
|
| |||||
NET ASSETS — 100.00% | $ | 13,854,066 | ||||
|
|
a | All or a portion of this security is on loan. |
b | Affiliate of the Fund. |
c | Annualized 7-day yield as of period end. |
d | All or a portion of this security was purchased with cash collateral received from loaned securities. |
Affiliates (Note 2)
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows:
Affiliated issuer | Shares held at 08/31/17 | Shares purchased | Shares sold | Shares held at 02/28/18 | Value at 02/28/18 | Income | Net realized gain (loss) a | Change in unrealized appreciation (depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, | — | 3,599,640 | b | — | 3,599,640 | $ | 3,600,000 | $ | 3,477 | c | $ | (368 | ) | $ | — | |||||||||||||||||
BlackRock Cash Funds: Treasury, | 11,765 | — | (4,777 | )b | 6,988 | 6,988 | 49 | — | — | |||||||||||||||||||||||
iShares MSCI United Kingdom ETF | 564,475 | 131,796 | (302,026 | ) | 394,245 | 13,668,474 | 337,644 | 1,046,778 | (265,354 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 17,275,462 | $ | 341,170 | $ | 1,046,410 | $ | (265,354 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
a | Includes realized capital gain distributions from an affiliated fund, if any. |
b | Net of purchases and sales. |
c | Includes the Fund’s portion of securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. |
SCHEDULESOF INVESTMENTS | 9 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® CURRENCY HEDGED MSCI UNITED KINGDOM ETF
February 28, 2018
Forward Currency Contracts (Note 6)
Forward currency contracts outstanding as of February 28, 2018 were as follows:
Currency purchased | Currency sold | Counterparty | Settlement date | Unrealized appreciation (depreciation) | ||||||||||||||||||||
USD | 13,442,425 | GBP | 9,514,043 | BNP | 03/02/2018 | $ | 344,448 | |||||||||||||||||
USD | 47,931 | GBP | 33,899 | BOA | 03/02/2018 | 1,262 | ||||||||||||||||||
USD | 3,691,191 | GBP | 2,644,116 | MS | 03/02/2018 | 51,039 | ||||||||||||||||||
USD | 12,485,473 | GBP | 8,941,942 | HSBC | 04/05/2018 | 155,103 | ||||||||||||||||||
USD | 1,840,672 | GBP | 1,322,058 | MS | 04/05/2018 | 17,637 | ||||||||||||||||||
|
| |||||||||||||||||||||||
569,489 | ||||||||||||||||||||||||
|
| |||||||||||||||||||||||
GBP | 8,941,942 | USD | 12,465,201 | HSBC | 03/02/2018 | $ | (154,835 | ) | ||||||||||||||||
GBP | 3,250,116 | USD | 4,521,684 | MS | 03/02/2018 | (47,252 | ) | |||||||||||||||||
GBP | 284,000 | USD | 391,971 | MS | 04/05/2018 | (353 | ) | |||||||||||||||||
|
| |||||||||||||||||||||||
(202,440 | ) | |||||||||||||||||||||||
|
| |||||||||||||||||||||||
Net unrealized appreciation | $ | 367,049 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||
Counterparties:
BNP — BNP Paribas SA
BOA — Bank of America N.A.
HSBC — HSBC Bank PLC
MS — Morgan Stanley and Co. International PLC
Currency abbreviations:
GBP — British Pound
USD — United States Dollar
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Investment companies | $ | 13,668,474 | $ | — | $ | — | $ | 13,668,474 | ||||||||
Money market funds | 3,606,988 | — | — | 3,606,988 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 17,275,462 | $ | — | $ | — | $ | 17,275,462 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative financial instrumentsa | ||||||||||||||||
Assets | ||||||||||||||||
Forward currency contracts | $ | — | $ | 569,489 | $ | — | $ | 569,489 | ||||||||
Liabilities | ||||||||||||||||
Forward currency contracts | — | (202,440 | ) | — | (202,440 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | — | $ | 367,049 | $ | — | $ | 367,049 | ||||||||
|
|
|
|
|
|
|
| |||||||||
a | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
10 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI UNITED KINGDOM ETF
February 28, 2018
Security | Shares | Value | ||||||
COMMON STOCKS — 99.15% |
| |||||||
AEROSPACE & DEFENSE — 2.06% |
| |||||||
BAE Systems PLC | 3,191,909 | $ | 25,481,863 | |||||
Cobham PLCa | 2,380,818 | 3,721,627 | ||||||
Meggitt PLC | 776,072 | 4,839,704 | ||||||
Rolls-Royce Holdings PLC | 1,655,748 | 19,154,413 | ||||||
|
| |||||||
53,197,607 | ||||||||
AIR FREIGHT & LOGISTICS — 0.27% |
| |||||||
Royal Mail PLC | 904,236 | 6,977,053 | ||||||
|
| |||||||
6,977,053 | ||||||||
AIRLINES — 0.14% |
| |||||||
easyJet PLC | 159,884 | 3,698,775 | ||||||
|
| |||||||
3,698,775 | ||||||||
AUTO COMPONENTS — 0.40% |
| |||||||
GKN PLC | 1,723,345 | 10,395,615 | ||||||
|
| |||||||
10,395,615 | ||||||||
BANKS — 14.22% |
| |||||||
Barclays PLC | 17,059,530 | 50,184,214 | ||||||
HSBC Holdings PLC | 20,012,365 | 197,733,531 | ||||||
Lloyds Banking Group PLC | 72,031,038 | 68,282,639 | ||||||
Royal Bank of Scotland Group PLCa | 3,591,864 | 13,248,614 | ||||||
Standard Chartered PLCa | 3,298,951 | 36,854,607 | ||||||
|
| |||||||
366,303,605 | ||||||||
BEVERAGES — 3.52% |
| |||||||
Coca-Cola HBC AGa | 182,933 | 6,011,497 | ||||||
Diageo PLC | 2,497,288 | 84,645,899 | ||||||
|
| |||||||
90,657,396 | ||||||||
BIOTECHNOLOGY — 1.51% |
| |||||||
Shire PLC | 909,443 | 38,958,156 | ||||||
|
| |||||||
38,958,156 | ||||||||
CAPITAL MARKETS — 2.19% |
| |||||||
3i Group PLC | 974,155 | 12,611,689 | ||||||
Hargreaves Lansdown PLC | 258,713 | 6,150,854 | ||||||
Investec PLC | 673,395 | 5,891,770 | ||||||
London Stock Exchange Group PLC | 312,658 | 17,352,466 | ||||||
Schroders PLC | 123,761 | 5,881,379 | ||||||
St. James’s Place PLC | 530,362 | 8,436,621 | ||||||
|
| |||||||
56,324,779 | ||||||||
CHEMICALS — 0.65% |
| |||||||
Croda International PLC | 131,647 | 8,383,842 |
Security | Shares | Value | ||||||
Johnson Matthey PLC | 194,086 | $ | 8,383,666 | |||||
|
| |||||||
16,767,508 | ||||||||
COMMERCIAL SERVICES & SUPPLIES — 0.31% |
| |||||||
Babcock International Group PLC | 253,948 | 2,280,664 | ||||||
G4S PLC | 1,544,784 | 5,585,136 | ||||||
|
| |||||||
7,865,800 | ||||||||
DIVERSIFIED FINANCIAL SERVICES — 0.53% |
| |||||||
Standard Life Aberdeen PLC | 2,682,706 | 13,606,333 | ||||||
|
| |||||||
13,606,333 | ||||||||
DIVERSIFIED TELECOMMUNICATION SERVICES — 1.08% |
| |||||||
BT Group PLC | 8,421,815 | 27,826,402 | ||||||
|
| |||||||
27,826,402 | ||||||||
ELECTRIC UTILITIES — 0.67% |
| |||||||
SSE PLC | 1,017,223 | 17,169,373 | ||||||
|
| |||||||
17,169,373 | ||||||||
ENERGY EQUIPMENT & SERVICES — 0.22% |
| |||||||
John Wood Group PLC | 671,419 | 5,670,956 | ||||||
|
| |||||||
5,670,956 | ||||||||
EQUITY REAL ESTATE INVESTMENT TRUSTS |
| |||||||
British Land Co. PLC (The) | 954,840 | 8,262,138 | ||||||
Hammerson PLC | 794,187 | 4,891,392 | ||||||
Land Securities Group PLC | 742,438 | 9,482,921 | ||||||
Segro PLC | 1,005,368 | 7,918,072 | ||||||
|
| |||||||
30,554,523 | ||||||||
FOOD & STAPLES RETAILING — 1.42% |
| |||||||
J Sainsbury PLC | 1,653,380 | 5,900,307 | ||||||
Tesco PLC | 8,183,758 | 23,769,802 | ||||||
Wm Morrison Supermarkets PLC | 2,226,206 | 6,923,076 | ||||||
|
| |||||||
36,593,185 | ||||||||
FOOD PRODUCTS — 0.50% |
| |||||||
Associated British Foods PLC | 356,139 | 12,910,485 | ||||||
|
| |||||||
12,910,485 | ||||||||
HEALTH CARE EQUIPMENT & SUPPLIES — 0.74% |
| |||||||
ConvaTec Group PLCb,c | 1,358,351 | 3,864,864 | ||||||
Smith & Nephew PLC | 875,593 | 15,303,647 | ||||||
|
| |||||||
19,168,511 | ||||||||
HEALTH CARE PROVIDERS & SERVICES — 0.12% |
| |||||||
Mediclinic International PLCb | 370,416 | 3,020,417 | ||||||
|
| |||||||
3,020,417 | ||||||||
HOTELS, RESTAURANTS & LEISURE — 3.11% |
| |||||||
Carnival PLC | 185,130 | 12,241,362 |
SCHEDULESOF INVESTMENTS | 11 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI UNITED KINGDOM ETF
February 28, 2018
Security | Shares | Value | ||||||
Compass Group PLC | 1,584,497 | $ | 33,752,278 | |||||
InterContinental Hotels Group PLC | 180,605 | 11,693,308 | ||||||
Merlin Entertainments PLCc | 716,279 | 3,355,547 | ||||||
TUI AG | 440,944 | 9,383,688 | ||||||
Whitbread PLC | 183,418 | 9,813,220 | ||||||
|
| |||||||
80,239,403 | ||||||||
HOUSEHOLD DURABLES — 1.31% |
| |||||||
Barratt Developments PLC | 1,015,032 | 7,538,252 | ||||||
Berkeley Group Holdings PLC | 129,245 | 6,863,216 | ||||||
Persimmon PLC | 308,869 | 11,069,216 | ||||||
Taylor Wimpey PLC | 3,276,512 | 8,397,053 | ||||||
|
| |||||||
33,867,737 | ||||||||
HOUSEHOLD PRODUCTS — 2.07% |
| |||||||
Reckitt Benckiser Group PLC | 668,989 | 53,241,263 | ||||||
|
| |||||||
53,241,263 | ||||||||
INDUSTRIAL CONGLOMERATES — 0.66% |
| |||||||
DCC PLC | 89,259 | 8,160,093 | ||||||
Smiths Group PLC | 396,835 | 8,734,801 | ||||||
|
| |||||||
16,894,894 | ||||||||
INSURANCE — 5.96% |
| |||||||
Admiral Group PLC | 202,194 | 5,134,472 | ||||||
Aviva PLC | 4,014,823 | 27,968,917 | ||||||
Direct Line Insurance Group PLC | 1,374,666 | 7,250,556 | ||||||
Legal & General Group PLC | 5,958,693 | 21,559,958 | ||||||
Old Mutual PLC | 4,944,210 | 17,392,015 | ||||||
Prudential PLC | 2,588,182 | 65,277,984 | ||||||
RSA Insurance Group PLC | 1,023,847 | 8,907,213 | ||||||
|
| |||||||
153,491,115 | ||||||||
INTERNET SOFTWARE & SERVICES — 0.19% |
| |||||||
Auto Trader Group PLCc | 966,452 | 4,860,437 | ||||||
|
| |||||||
4,860,437 | ||||||||
MACHINERY — 0.42% |
| |||||||
IMI PLC | 270,582 | 4,574,521 | ||||||
Weir Group PLC (The) | 225,353 | 6,321,837 | ||||||
|
| |||||||
10,896,358 | ||||||||
MEDIA — 2.31% |
| |||||||
ITV PLC | 3,606,774 | 7,951,354 | ||||||
Pearson PLC | 807,705 | 8,150,857 | ||||||
Sky PLC | 1,032,570 | 19,178,365 | ||||||
WPP PLC | 1,263,955 | 24,277,087 | ||||||
|
| |||||||
59,557,663 |
Security | Shares | Value | ||||||
METALS & MINING — 8.66% |
| |||||||
Anglo American PLC | 1,336,096 | $ | 32,779,794 | |||||
Antofagasta PLC | 394,319 | 4,726,821 | ||||||
BHP Billiton PLC | 2,114,007 | 43,231,573 | ||||||
Fresnillo PLC | 220,399 | 3,703,340 | ||||||
Glencore PLC | 12,251,012 | 65,216,136 | ||||||
Randgold Resources Ltd. | 94,218 | 7,591,777 | ||||||
Rio Tinto PLC | 1,218,381 | 65,907,615 | ||||||
|
| |||||||
223,157,056 | ||||||||
MULTI-UTILITIES — 1.77% |
| |||||||
Centrica PLC | 5,595,852 | 11,025,656 | ||||||
National Grid PLC | 3,395,586 | 34,631,077 | ||||||
|
| |||||||
45,656,733 | ||||||||
MULTILINE RETAIL — 0.63% |
| |||||||
Marks & Spencer Group PLC | 1,613,781 | 6,572,812 | ||||||
Next PLC | 145,914 | 9,762,877 | ||||||
|
| |||||||
16,335,689 | ||||||||
OIL, GAS & CONSUMABLE FUELS — 15.29% |
| |||||||
BP PLC | 19,802,033 | 129,641,097 | ||||||
Royal Dutch Shell PLC Class A ADR | 4,549,256 | 144,231,188 | ||||||
Royal Dutch Shell PLC Class B | 3,749,608 | 119,912,150 | ||||||
|
| |||||||
393,784,435 | ||||||||
PAPER & FOREST PRODUCTS — 0.37% |
| |||||||
Mondi PLC | 367,566 | 9,632,700 | ||||||
|
| |||||||
9,632,700 | ||||||||
PERSONAL PRODUCTS — 2.46% |
| |||||||
Unilever PLC | 1,233,085 | 63,432,431 | ||||||
|
| |||||||
63,432,431 | ||||||||
PHARMACEUTICALS — 6.68% |
| |||||||
AstraZeneca PLC | 1,267,069 | 83,363,478 | ||||||
GlaxoSmithKline PLC | 4,923,034 | 88,670,072 | ||||||
|
| |||||||
172,033,550 | ||||||||
PROFESSIONAL SERVICES — 2.11% |
| |||||||
Capita PLC | 666,246 | 1,617,035 | ||||||
Experian PLC | 924,826 | 19,827,676 | ||||||
Intertek Group PLC | 161,642 | 10,942,162 | ||||||
RELX PLC | 1,066,939 | 21,948,335 | ||||||
|
| |||||||
54,335,208 | ||||||||
SOFTWARE — 0.88% |
| |||||||
Micro Focus International PLCb | 436,594 | 12,410,211 | ||||||
Sage Group PLC (The) | 1,083,373 | 10,338,623 | ||||||
|
| |||||||
22,748,834 |
12 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI UNITED KINGDOM ETF
February 28, 2018
Security | Shares | Value | ||||||
SPECIALTY RETAIL — 0.42% |
| |||||||
Kingfisher PLC | 2,184,556 | $ | 10,772,762 | |||||
|
| |||||||
10,772,762 | ||||||||
TEXTILES, APPAREL & LUXURY GOODS — 0.35% |
| |||||||
Burberry Group PLC | 426,667 | 9,015,193 | ||||||
|
| |||||||
9,015,193 | ||||||||
TOBACCO — 6.61% |
| |||||||
British American Tobacco PLC | 2,295,639 | 135,868,726 | ||||||
Imperial Brands PLC | 954,933 | 34,459,628 | ||||||
|
| |||||||
170,328,354 | ||||||||
TRADING COMPANIES & DISTRIBUTORS — 1.78% |
| |||||||
Ashtead Group PLC | 499,179 | 14,539,969 | ||||||
Bunzl PLC | 336,426 | 9,062,301 | ||||||
Ferguson PLC | 250,294 | 17,746,896 | ||||||
Travis Perkins PLC | 249,344 | 4,414,731 | ||||||
|
| |||||||
45,763,897 | ||||||||
WATER UTILITIES — 0.46% |
| |||||||
Severn Trent PLC | 237,224 | 5,581,122 | ||||||
United Utilities Group PLC | 677,939 | 6,222,966 | ||||||
|
| |||||||
11,804,088 | ||||||||
WIRELESS TELECOMMUNICATION SERVICES — 2.91% |
| |||||||
Vodafone Group PLC | 26,697,404 | 74,949,516 | ||||||
|
| |||||||
74,949,516 | ||||||||
|
| |||||||
TOTAL COMMON STOCKS |
| |||||||
(Cost: $2,909,221,780) | 2,554,465,795 |
Security | Shares | Value | ||||||
SHORT-TERM INVESTMENTS — 0.12% |
| |||||||
MONEY MARKET FUNDS — 0.12% |
| |||||||
BlackRock Cash Funds: Institutional, |
| |||||||
1.58%d,e,f | 2,444,142 | $ | 2,444,386 | |||||
BlackRock Cash Funds: Treasury, |
| |||||||
1.32%d,e | 685,018 | 685,018 | ||||||
|
| |||||||
3,129,404 | ||||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||||
(Cost: $3,129,404) |
| 3,129,404 | ||||||
|
| |||||||
TOTAL INVESTMENTS |
| |||||||
(Cost: $2,912,351,184) |
| 2,557,595,199 | ||||||
Other Assets, Less Liabilities — 0.73% |
| 18,679,785 | ||||||
|
| |||||||
NET ASSETS — 100.00% | $ | 2,576,274,984 | ||||||
|
|
ADR — American Depositary Receipts
a | Non-income producing security. |
b | All or a portion of this security is on loan. |
c | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
d | Affiliate of the Fund. |
e | Annualized 7-day yield as of period end. |
f | All or a portion of this security was purchased with cash collateral received from loaned securities. |
Affiliates (Note 2)
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows:
Affiliated issuer | Shares held at 08/31/17 | Shares purchased | Shares sold | Shares held at 02/28/18 | Value at 02/28/18 | Income | Net realized gain (loss) a | Change in unrealized appreciation (depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, | 11,875,860 | — | (9,431,718 | )b | 2,444,142 | $ | 2,444,386 | $ | 45,492 | c | $ | (6,305 | ) | $ | — | |||||||||||||||||
BlackRock Cash Funds: Treasury, | 488,263 | 196,755 | b | — | 685,018 | 685,018 | 12,201 | — | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 3,129,404 | $ | 57,693 | $ | (6,305 | ) | $ | — | ||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
a | Includes realized capital gain distributions from an affiliated fund, if any. |
b | Net of purchases and sales. |
c | Includes the Fund’s portion of securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. |
SCHEDULESOF INVESTMENTS | 13 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI UNITED KINGDOM ETF
February 28, 2018
Futures Contracts (Note 5)
Futures contracts outstanding as of February 28, 2018 were as follows:
Description | Number of contracts | Expiration date | Notional amount (000) | Value/ unrealized appreciation (depreciation) | ||||||||||||
Long Contracts | ||||||||||||||||
FTSE 100 Index | 218 | Mar 2018 | $ | 21,705 | $ | (139,011 | ) | |||||||||
|
| |||||||||||||||
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common stocks | $ | 2,554,465,795 | $ | — | $ | — | $ | 2,554,465,795 | ||||||||
Money market funds | 3,129,404 | — | — | 3,129,404 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 2,557,595,199 | $ | — | $ | — | $ | 2,557,595,199 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative financial instrumentsa | ||||||||||||||||
Liabilities | ||||||||||||||||
Futures contracts | $ | (139,011 | ) | $ | — | $ | — | $ | (139,011 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | (139,011 | ) | $ | — | $ | — | $ | (139,011 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
a | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
14 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI UNITED KINGDOM SMALL-CAP ETF
February 28, 2018
Security | Shares | Value | ||||||
COMMON STOCKS — 99.87% |
| |||||||
AEROSPACE & DEFENSE — 1.19% |
| |||||||
Chemring Group PLC | 18,569 | $ | 49,277 | |||||
QinetiQ Group PLC | 38,089 | 107,639 | ||||||
Senior PLC | 27,958 | 112,022 | ||||||
Ultra Electronics Holdings PLC | 5,183 | 113,548 | ||||||
|
| |||||||
382,486 | ||||||||
AIRLINES — 0.22% |
| |||||||
Dart Group PLC | 6,428 | 71,475 | ||||||
|
| |||||||
71,475 | ||||||||
BANKS — 2.46% |
| |||||||
Aldermore Group PLCa | 17,237 | 73,862 | ||||||
BGEO Group PLC | 2,646 | 123,592 | ||||||
CYBG PLC | 59,068 | 245,137 | ||||||
Metro Bank PLCa | 5,024 | 273,570 | ||||||
Virgin Money Holdings UK PLC | 19,266 | 74,222 | ||||||
|
| |||||||
790,383 | ||||||||
BEVERAGES — 1.31% |
| |||||||
Britvic PLC | 17,703 | 165,378 | ||||||
Fevertree Drinks PLC | 6,158 | 210,678 | ||||||
Stock Spirits Group PLC | 11,932 | 45,212 | ||||||
|
| |||||||
421,268 | ||||||||
BIOTECHNOLOGY — 1.06% |
| |||||||
Abcam PLC | 12,296 | 215,164 | ||||||
Genus PLC | 4,106 | 123,446 | ||||||
|
| |||||||
338,610 | ||||||||
BUILDING PRODUCTS — 0.22% |
| |||||||
Polypipe Group PLC | 13,233 | 71,182 | ||||||
|
| |||||||
71,182 | ||||||||
CAPITAL MARKETS — 7.36% |
| |||||||
Allied Minds PLCa | 14,436 | 27,051 | ||||||
Ashmore Group PLC | 26,111 | 148,513 | ||||||
Brewin Dolphin Holdings PLC | 19,056 | 90,479 | ||||||
Burford Capital Ltd. | 12,522 | 180,471 | ||||||
Close Brothers Group PLC | 10,140 | 219,351 | ||||||
CMC Markets PLCb | 7,808 | 16,503 | ||||||
IG Group Holdings PLC | 24,535 | 273,318 | ||||||
Intermediate Capital Group PLC | 19,414 | 283,011 | ||||||
Jupiter Fund Management PLC | 29,061 | 205,094 | ||||||
Man Group PLC | 110,182 | 260,741 | ||||||
NEX Group PLC | 21,662 | 200,721 | ||||||
P2P Global Investments PLC/Fund | 5,407 | 59,079 | ||||||
Rathbone Brothers PLC | 3,418 | 122,635 |
Security | Shares | Value | ||||||
TP ICAP PLC | 37,055 | $ | 274,479 | |||||
|
| |||||||
2,361,446 | ||||||||
CHEMICALS — 2.26% |
| |||||||
Elementis PLC | 31,148 | 125,233 | ||||||
Essentra PLC | 17,657 | 108,895 | ||||||
Scapa Group PLC | 9,197 | 60,852 | ||||||
Sirius Minerals PLCa,c | 282,834 | 107,168 | ||||||
Synthomer PLC | 18,266 | 119,145 | ||||||
Victrex PLC | 5,731 | 204,676 | ||||||
|
| |||||||
725,969 | ||||||||
COMMERCIAL SERVICES & SUPPLIES — 4.45% |
| |||||||
Aggreko PLC | 17,189 | 177,013 | ||||||
Biffa PLCb | 16,649 | 53,220 | ||||||
De La Rue PLC | 6,807 | 57,681 | ||||||
HomeServe PLC | 19,785 | 196,278 | ||||||
IWG PLC | 45,592 | 147,311 | ||||||
Mitie Group PLC | 24,202 | 52,454 | ||||||
Renewi PLC | 50,600 | 63,096 | ||||||
Rentokil Initial PLC | 122,950 | 490,602 | ||||||
Restore PLC | 7,132 | 49,822 | ||||||
RPS Group PLC | 14,962 | 46,694 | ||||||
Serco Group PLCa | 73,956 | 92,729 | ||||||
|
| |||||||
1,426,900 | ||||||||
COMMUNICATIONS EQUIPMENT — 0.05% |
| |||||||
Telit Communications PLC | 6,978 | 16,979 | ||||||
|
| |||||||
16,979 | ||||||||
CONSTRUCTION & ENGINEERING — 1.64% |
| |||||||
Balfour Beatty PLC | 46,290 | 169,147 | ||||||
Costain Group PLC | 6,983 | 42,575 | ||||||
Galliford Try PLC | 5,578 | 70,554 | ||||||
John Laing Group PLCb | 24,669 | 92,114 | ||||||
Keller Group PLC | 4,808 | 59,887 | ||||||
Kier Group PLC | 6,476 | 92,531 | ||||||
|
| |||||||
526,808 | ||||||||
CONSTRUCTION MATERIALS — 1.07% |
| |||||||
Forterra PLCb | 13,347 | 52,504 | ||||||
Ibstock PLCb | 27,080 | 97,459 | ||||||
Marshalls PLC | 13,287 | 76,306 | ||||||
Rhi Magnesita NVa | 1,732 | 103,087 | ||||||
Rhi Magnesita NV Newa | 214 | 13,047 | ||||||
|
| |||||||
342,403 | ||||||||
CONSUMER FINANCE — 0.71% |
| |||||||
Arrow Global Group PLC | 11,109 | 53,726 | ||||||
International Personal Finance PLC | 14,757 | 38,491 |
SCHEDULESOF INVESTMENTS | 15 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI UNITED KINGDOM SMALL-CAP ETF
February 28, 2018
Security | Shares | Value | ||||||
Provident Financial PLCc | 9,958 | $ | 134,462 | |||||
|
| |||||||
226,679 | ||||||||
CONTAINERS & PACKAGING — 2.42% |
| |||||||
DS Smith PLC | 71,415 | 471,923 | ||||||
RPC Group PLC | 27,604 | 305,795 | ||||||
|
| |||||||
777,718 | ||||||||
DISTRIBUTORS — 0.95% |
| |||||||
Inchcape PLC | 27,752 | 259,446 | ||||||
John Menzies PLC | 4,999 | 44,564 | ||||||
|
| |||||||
304,010 | ||||||||
DIVERSIFIED CONSUMER SERVICES — 0.26% |
| |||||||
AA PLC | 41,082 | 45,001 | ||||||
Dignity PLC | 3,368 | 37,960 | ||||||
|
| |||||||
82,961 | ||||||||
DIVERSIFIED FINANCIAL SERVICES — 0.27% |
| |||||||
Plus500 Ltd. | 5,319 | 87,726 | ||||||
|
| |||||||
87,726 | ||||||||
DIVERSIFIED TELECOMMUNICATION SERVICES — 0.96% |
| |||||||
Inmarsat PLC | 30,606 | 198,159 | ||||||
Kcom Group PLC | 32,696 | 46,041 | ||||||
TalkTalk Telecom Group PLC | 46,001 | 65,031 | ||||||
|
| |||||||
309,231 | ||||||||
ELECTRICAL EQUIPMENT — 1.33% |
| |||||||
Dialight PLCa | 1,664 | 13,252 | ||||||
Luceco PLCb | 5,448 | 5,900 | ||||||
Melrose Industries PLC | 129,589 | 407,640 | ||||||
|
| |||||||
426,792 | ||||||||
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 4.04% |
| |||||||
Electrocomponents PLC | 29,518 | 255,660 | ||||||
Halma PLC | 25,374 | 421,287 | ||||||
Laird PLC | 32,614 | 52,082 | ||||||
Oxford Instruments PLC | 3,610 | 37,455 | ||||||
Renishaw PLC | 2,443 | 162,717 | ||||||
Smart Metering Systems PLC | 6,689 | 65,713 | ||||||
Spectris PLC | 7,973 | 299,358 | ||||||
|
| |||||||
1,294,272 | ||||||||
ENERGY EQUIPMENT & SERVICES — 0.58% |
| |||||||
Hunting PLCa | 9,296 | 77,940 | ||||||
Petrofac Ltd. | 17,296 | 107,693 | ||||||
|
| |||||||
185,633 |
Security | Shares | Value | ||||||
EQUITY REAL ESTATE INVESTMENT TRUSTS |
| |||||||
Assura PLC | 159,448 | $ | 126,984 | |||||
Big Yellow Group PLC | 10,110 | 115,759 | ||||||
Civitas Social Housing PLC | 22,038 | 31,883 | ||||||
Derwent London PLC | 7,081 | 280,306 | ||||||
Empiric Student Property PLC | 40,160 | 46,149 | ||||||
Great Portland Estates PLC | 21,818 | 188,789 | ||||||
Hansteen Holdings PLC | 27,684 | 50,465 | ||||||
Intu Properties PLC | 58,714 | 163,578 | ||||||
LondonMetric Property PLC | 46,617 | 114,139 | ||||||
NewRiver REIT PLC | 20,331 | 82,779 | ||||||
Primary Health Properties PLC | 38,170 | 61,112 | ||||||
RDI REIT PLC | 94,610 | 44,974 | ||||||
Safestore Holdings PLC | 13,951 | 95,343 | ||||||
Schroder REIT Ltd. | 35,292 | 30,538 | ||||||
Shaftesbury PLC | 15,374 | 203,887 | ||||||
Standard Life Investment Property Income Trust Ltd. | 24,596 | 31,483 | ||||||
Tritax Big Box REIT PLC | 91,211 | 176,574 | ||||||
UNITE Group PLC (The) | 17,561 | 184,256 | ||||||
Workspace Group PLC | 8,184 | 106,956 | ||||||
|
| |||||||
2,135,954 | ||||||||
FOOD & STAPLES RETAILING — 1.31% |
| |||||||
Booker Group PLC | 113,341 | 354,655 | ||||||
Conviviality PLC | 10,960 | 43,265 | ||||||
Majestic Wine PLCc | 3,620 | 20,750 | ||||||
|
| |||||||
418,670 | ||||||||
FOOD PRODUCTS — 1.45% |
| |||||||
Dairy Crest Group PLC | 9,397 | 71,665 | ||||||
Greencore Group PLCc | 47,322 | 115,767 | ||||||
Hotel Chocolat Group Ltd. | 2,700 | 12,221 | ||||||
Premier Foods PLCa | 45,194 | 24,379 | ||||||
Tate & Lyle PLC | 31,163 | 240,625 | ||||||
|
| |||||||
464,657 | ||||||||
HEALTH CARE EQUIPMENT & SUPPLIES — 0.18% |
| |||||||
Advanced Medical Solutions Group PLC | 12,744 | 57,068 | ||||||
|
| |||||||
57,068 | ||||||||
HEALTH CARE PROVIDERS & SERVICES — 1.79% |
| |||||||
CVS Group PLC | 4,456 | 65,449 | ||||||
NMC Health PLC | 5,462 | 258,437 | ||||||
Spire Healthcare Group PLCb | 18,704 | 59,222 |
16 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI UNITED KINGDOM SMALL-CAP ETF
February 28, 2018
Security | Shares | Value | ||||||
UDG Healthcare PLC | 16,583 | $ | 191,017 | |||||
|
| |||||||
574,125 | ||||||||
HEALTH CARE TECHNOLOGY — 0.11% |
| |||||||
EMIS Group PLC | 3,596 | 36,170 | ||||||
|
| |||||||
36,170 | ||||||||
HOTELS, RESTAURANTS & LEISURE — 7.00% |
| |||||||
888 Holdings PLC | 23,973 | 94,337 | ||||||
Domino’s Pizza Group PLC | 32,570 | 146,343 | ||||||
EI Group PLCa | 32,173 | 55,235 | ||||||
Greene King PLC | 20,803 | 149,623 | ||||||
Greggs PLC | 6,793 | 111,849 | ||||||
GVC Holdings PLC | 19,092 | 234,912 | ||||||
J D Wetherspoon PLC | 4,938 | 86,272 | ||||||
Jackpotjoy PLCa | 3,444 | 38,247 | ||||||
Ladbrokes Coral Group PLC | 102,417 | 232,205 | ||||||
Marston’s PLC | 42,144 | 60,275 | ||||||
Mitchells & Butlers PLC | 14,050 | 47,352 | ||||||
Playtech PLC | 20,142 | 217,081 | ||||||
Rank Group PLC | 11,696 | 35,454 | ||||||
Restaurant Group PLC (The) | 13,404 | 44,879 | ||||||
SSP Group PLC | 31,777 | 264,674 | ||||||
Thomas Cook Group PLC | 97,921 | 165,547 | ||||||
William Hill PLC | 57,346 | 259,562 | ||||||
|
| |||||||
2,243,847 | ||||||||
HOUSEHOLD DURABLES — 3.13% |
| |||||||
Bellway PLC | 8,217 | 352,787 | ||||||
Bovis Homes Group PLC | 9,033 | 130,747 | ||||||
Countryside Properties PLCb | 22,691 | 98,109 | ||||||
Crest Nicholson Holdings PLC | 17,171 | 112,665 | ||||||
DFS Furniture PLC | 14,281 | 36,245 | ||||||
McCarthy & Stone PLCb | 32,254 | 60,884 | ||||||
Redrow PLC | 14,737 | 119,599 | ||||||
Telford Homes PLC | 4,610 | 25,090 | ||||||
Victoria PLCa | 6,075 | 66,126 | ||||||
|
| |||||||
1,002,252 | ||||||||
HOUSEHOLD PRODUCTS — 0.23% |
| |||||||
PZ Cussons PLC | 18,545 | 72,160 | ||||||
|
| |||||||
72,160 | ||||||||
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS — 0.29% |
| |||||||
Drax Group PLC | 27,086 | 92,779 | ||||||
|
| |||||||
92,779 | ||||||||
INSURANCE — 4.19% |
| |||||||
Beazley PLC | 35,147 | 251,822 |
Security | Shares | Value | ||||||
esure Group PLC | 19,492 | $ | 61,073 | |||||
Hastings Group Holdings PLCb | 19,695 | 84,830 | ||||||
Hiscox Ltd. | 19,163 | 367,276 | ||||||
Just Group PLC | 47,318 | 95,057 | ||||||
Lancashire Holdings Ltd. | 12,654 | 97,638 | ||||||
Phoenix Group Holdings | 24,974 | 270,294 | ||||||
Saga PLC | 74,634 | 117,231 | ||||||
|
| |||||||
1,345,221 | ||||||||
INTERNET & DIRECT MARKETING RETAIL — 2.84% |
| |||||||
AO World PLCa,c | 16,690 | 31,919 | ||||||
ASOS PLCa | 3,629 | 372,616 | ||||||
boohoo.com PLCa | 46,264 | 118,342 | ||||||
Hostelworld Group PLCb | 6,477 | 35,742 | ||||||
N Brown Group PLC | 10,549 | 27,689 | ||||||
Ocado Group PLCa | 35,810 | 272,954 | ||||||
On the Beach Group PLCb | 6,496 | 51,555 | ||||||
|
| |||||||
910,817 | ||||||||
INTERNET SOFTWARE & SERVICES — 3.35% |
| |||||||
Gocompare.Com Group PLC | 19,857 | 31,190 | ||||||
iomart Group PLC | 5,131 | 25,451 | ||||||
Just Eat PLCa | 36,382 | 439,631 | ||||||
Moneysupermarket.com Group PLC | 35,671 | 128,034 | ||||||
Rightmove PLC | 6,108 | 359,949 | ||||||
ZPG PLCb | 19,024 | 88,597 | ||||||
|
| |||||||
1,072,852 | ||||||||
IT SERVICES — 1.00% |
| |||||||
Equiniti Group PLCb | 24,283 | 96,193 | ||||||
Kainos Group PLC | 4,432 | 21,251 | ||||||
Keywords Studios PLC | 3,682 | 79,244 | ||||||
NCC Group PLC | 18,428 | 50,477 | ||||||
SafeCharge International Group Ltd.c | 3,538 | 14,966 | ||||||
Softcat PLC | 7,222 | 58,014 | ||||||
|
| |||||||
320,145 | ||||||||
LEISURE PRODUCTS — 0.14% |
| |||||||
Photo-Me International PLC | 17,564 | 44,190 | ||||||
|
| |||||||
44,190 | ||||||||
LIFE SCIENCES TOOLS & SERVICES — 0.29% |
| |||||||
Clinigen Healthcare Ltd.a | 7,401 | 94,225 | ||||||
|
| |||||||
94,225 | ||||||||
MACHINERY — 3.35% |
| |||||||
Bodycote PLC | 12,849 | 163,408 | ||||||
Fenner PLC | 12,289 | 80,903 | ||||||
Morgan Advanced Materials PLC | 19,003 | 88,500 | ||||||
Rotork PLC | 58,157 | 236,388 |
SCHEDULESOF INVESTMENTS | 17 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI UNITED KINGDOM SMALL-CAP ETF
February 28, 2018
Security | Shares | Value | ||||||
Spirax-Sarco Engineering PLC | 4,922 | $ | 387,240 | |||||
Vesuvius PLC | 14,581 | 118,634 | ||||||
|
| |||||||
1,075,073 | ||||||||
MEDIA — 4.79% |
| |||||||
Ascential PLC | 26,883 | 150,830 | ||||||
Cineworld Group PLC | 64,131 | 209,420 | ||||||
Daily Mail & General Trust PLC Class A NVS | 19,124 | 176,545 | ||||||
Entertainment One Ltd. | 22,946 | 96,050 | ||||||
Informa PLC | 55,140 | 528,328 | ||||||
ITE Group PLC | 17,894 | 40,879 | ||||||
UBM PLC | 26,368 | 334,973 | ||||||
|
| |||||||
1,537,025 | ||||||||
METALS & MINING — 2.80% |
| |||||||
Acacia Mining PLC | 11,038 | 21,140 | ||||||
Centamin PLC | 73,011 | 149,891 | ||||||
Central Asia Metals PLC | 9,990 | 44,460 | ||||||
Evraz PLC | 23,873 | 140,488 | ||||||
Ferrexpo PLC | 19,610 | 84,491 | ||||||
Hill & Smith Holdings PLC | 5,228 | 87,521 | ||||||
Hochschild Mining PLC | 16,856 | 47,495 | ||||||
KAZ Minerals PLCa | 16,405 | 193,804 | ||||||
Lonmin PLCa,c | 17,003 | 14,970 | ||||||
Pan African Resources PLC | 125,104 | 12,066 | ||||||
Petra Diamonds Ltd.a | 36,010 | 30,539 | ||||||
SolGold PLCa,c | 50,976 | 15,979 | ||||||
Vedanta Resources PLC | 5,469 | 55,386 | ||||||
|
| |||||||
898,230 | ||||||||
MULTI-UTILITIES — 0.22% |
| |||||||
Telecom Plus PLC | 4,183 | 72,044 | ||||||
|
| |||||||
72,044 | ||||||||
MULTILINE RETAIL — 1.11% |
| |||||||
B&M European Value Retail SA | 56,902 | 323,724 | ||||||
Debenhams PLCc | 79,135 | 30,813 | ||||||
|
| |||||||
354,537 | ||||||||
OIL, GAS & CONSUMABLE FUELS — 2.06% |
| |||||||
Amerisur Resources PLCa | 66,713 | 14,983 | ||||||
Cairn Energy PLCa | 39,184 | 101,069 | ||||||
EnQuest PLC ADRa | 74,604 | 30,786 | ||||||
Faroe Petroleum PLCa | 21,131 | 30,629 | ||||||
Hurricane Energy PLCa,c | 97,608 | 42,472 | ||||||
Nostrum Oil & Gas PLCa | 5,664 | 22,554 | ||||||
Ophir Energy PLCa | 46,788 | 33,910 | ||||||
Premier Oil PLCa,c | 34,642 | 34,725 |
Security | Shares | Value | ||||||
SOCO International PLC | 13,535 | $ | 17,530 | |||||
Sound Energy PLCa,c | 47,441 | 29,480 | ||||||
Stobart Group Ltd. | 21,027 | 69,098 | ||||||
Tullow Oil PLCa | 92,562 | 231,862 | ||||||
|
| |||||||
659,098 | ||||||||
PHARMACEUTICALS — 2.72% |
| |||||||
BTG PLCa | 25,823 | 233,584 | ||||||
Dechra Pharmaceuticals PLC | 6,578 | 228,219 | ||||||
Hikma Pharmaceuticals PLC | 9,690 | 115,035 | ||||||
Indivior PLCa | 48,227 | 253,240 | ||||||
Vectura Group PLCa | 40,798 | 40,727 | ||||||
|
| |||||||
870,805 | ||||||||
PROFESSIONAL SERVICES — 1.32% |
| |||||||
Hays PLC | 91,652 | 244,610 | ||||||
Pagegroup PLC | 21,928 | 162,246 | ||||||
Staffline Group PLCc | 1,274 | 17,115 | ||||||
|
| |||||||
423,971 | ||||||||
REAL ESTATE MANAGEMENT & DEVELOPMENT — 2.03% |
| |||||||
Capital & Counties Properties PLC | 51,002 | 186,927 | ||||||
Countrywide PLCa | 11,152 | 13,061 | ||||||
Grainger PLC | 28,023 | 105,409 | ||||||
Helical PLC | 6,839 | 32,510 | ||||||
Purplebricks Group PLCa,c | 14,438 | 87,253 | ||||||
Savills PLC | 9,523 | 125,636 | ||||||
St. Modwen Properties PLC | 12,594 | 66,530 | ||||||
Watkin Jones PLC | 11,834 | 33,589 | ||||||
|
| |||||||
650,915 | ||||||||
ROAD & RAIL — 1.38% |
| |||||||
FirstGroup PLCa | 80,326 | 90,700 | ||||||
Go-Ahead Group PLC | 2,878 | 60,711 | ||||||
National Express Group PLC | 30,910 | 148,722 | ||||||
Northgate PLC | 8,868 | 39,955 | ||||||
Redde PLC | 20,182 | 46,217 | ||||||
Stagecoach Group PLC | 28,606 | 56,127 | ||||||
|
| |||||||
442,432 | ||||||||
SEMICONDUCTORS & SEMICONDUCTOR |
| |||||||
IQE PLCa,c | 47,675 | 84,148 | ||||||
|
| |||||||
84,148 | ||||||||
SOFTWARE — 1.44% |
| |||||||
Alfa Financial Software Holdings PLCa,b | 6,091 | 38,605 | ||||||
AVEVA Group PLC | 4,270 | 169,796 | ||||||
Blue Prism Group PLCa,c | 3,312 | 72,832 | ||||||
GB Group PLC | 9,132 | 53,476 |
18 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI UNITED KINGDOM SMALL-CAP ETF
February 28, 2018
Security | Shares | Value | ||||||
Sophos Group PLCb | 18,654 | $ | 128,101 | |||||
|
| |||||||
462,810 | ||||||||
SPECIALTY RETAIL — 3.14% |
| |||||||
Card Factory PLC | 20,727 | 56,403 | ||||||
Dixons Carphone PLC | 65,696 | 177,961 | ||||||
Dunelm Group PLC | 6,725 | 53,743 | ||||||
Halfords Group PLC | 13,316 | 64,987 | ||||||
JD Sports Fashion PLC | 29,217 | 154,304 | ||||||
Lookers PLC | 21,222 | 25,849 | ||||||
Pendragon PLC | 94,378 | 34,720 | ||||||
Pets at Home Group PLC | 28,332 | 66,949 | ||||||
Sports Direct International PLCa | 16,256 | 82,292 | ||||||
Superdry PLC | 3,523 | 83,103 | ||||||
WH Smith PLC | 7,362 | 205,715 | ||||||
|
| |||||||
1,006,026 | ||||||||
TEXTILES, APPAREL & LUXURY GOODS — 0.25% |
| |||||||
Ted Baker PLC | 1,920 | 80,740 | ||||||
|
| |||||||
80,740 | ||||||||
THRIFTS & MORTGAGE FINANCE — 0.60% |
| |||||||
OneSavings Bank PLC | 12,987 | 73,115 | ||||||
Paragon Banking Group PLC | 17,746 | 119,274 | ||||||
|
| |||||||
192,389 | ||||||||
TRADING COMPANIES & DISTRIBUTORS — 1.88% |
| |||||||
Diploma PLC | 7,604 | 114,830 | ||||||
Grafton Group PLC | 15,052 | 158,656 | ||||||
Howden Joinery Group PLC | 41,488 | 253,867 | ||||||
SIG PLC | 37,396 | 74,713 | ||||||
|
| |||||||
602,066 | ||||||||
TRANSPORTATION INFRASTRUCTURE — 1.02% |
| |||||||
BBA Aviation PLC | 69,044 | 328,016 | ||||||
|
| |||||||
328,016 | ||||||||
WATER UTILITIES — 0.73% |
| |||||||
Pennon Group PLC | 27,869 | 233,697 | ||||||
|
| |||||||
233,697 | ||||||||
TOTAL COMMON STOCKS | ||||||||
(Cost: $28,622,827) |
| 32,030,085 | ||||||
SHORT-TERM INVESTMENTS — 2.58% |
| |||||||
MONEY MARKET FUNDS — 2.58% |
| |||||||
BlackRock Cash Funds: Institutional, | ||||||||
1.58%d,e,f | 824,278 | 824,361 |
Security | Shares | Value | ||||||
BlackRock Cash Funds: Treasury, | ||||||||
1.32%d,e | 4,068 | $ | 4,068 | |||||
|
| |||||||
828,429 | ||||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS | ||||||||
(Cost: $828,394) |
| 828,429 | ||||||
|
| |||||||
TOTAL INVESTMENTS | ||||||||
(Cost: $29,451,221) |
| 32,858,514 | ||||||
Other Assets, Less Liabilities — (2.45)% |
| (785,220 | ) | |||||
|
| |||||||
NET ASSETS — 100.00% | $ | 32,073,294 | ||||||
|
|
ADR — American Depositary Receipts
NVS — Non-Voting Shares
a | Non-income producing security. |
b | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
c | All or a portion of this security is on loan. |
d | Affiliate of the Fund. |
e | Annualized 7-day yield as of period end. |
f | All or a portion of this security was purchased with cash collateral received from loaned securities. |
SCHEDULESOF INVESTMENTS | 19 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI UNITED KINGDOM SMALL-CAP ETF
February 28, 2018
Affiliates (Note 2)
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows:
Affiliated issuer | Shares held at 08/31/17 | Shares purchased | Shares sold | Shares held at 02/28/18 | Value at 02/28/18 | Income | Net realized gain (loss) a | Change in unrealized appreciation (depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, | 776,946 | 47,332 | b | — | 824,278 | $ | 824,361 | $ | 21,035 | c | $ | (229 | ) | $ | (74 | ) | ||||||||||||||||
BlackRock Cash Funds: Treasury, | 7,050 | — | (2,982 | )b | 4,068 | 4,068 | 152 | — | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 828,429 | $ | 21,187 | $ | (229 | ) | $ | (74 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
a | Includes realized capital gain distributions from an affiliated fund, if any. |
b | Net of purchases and sales. |
c | Includes the Fund’s portion of securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. |
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common stocks | $ | 32,030,085 | $ | — | $ | — | $ | 32,030,085 | ||||||||
Money market funds | 828,429 | — | — | 828,429 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 32,858,514 | $ | — | $ | — | $ | 32,858,514 | ||||||||
|
|
|
|
|
|
|
| |||||||||
See notes to financial statements.
20 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Assets and Liabilities (Unaudited)
iSHARES® TRUST
February 28, 2018
iShares Currency United Kingdom | iShares MSCI United Kingdom | iShares MSCI United Kingdom | ||||||||||
ASSETS | ||||||||||||
Investments in securities, at cost: | ||||||||||||
Unaffiliated | $ | — | $ | 2,909,221,780 | $ | 28,622,827 | ||||||
Affiliated (Note 2) | 16,829,438 | 3,129,404 | 828,394 | |||||||||
|
|
|
|
|
| |||||||
Total cost of investments in securities | $ | 16,829,438 | $ | 2,912,351,184 | $ | 29,451,221 | ||||||
|
|
|
|
|
| |||||||
Investments in securities, at fair value (including securities on loana) (Note 1): | ||||||||||||
Unaffiliated | $ | — | $ | 2,554,465,795 | $ | 32,030,085 | ||||||
Affiliated (Note 2) | 17,275,462 | 3,129,404 | 828,429 | |||||||||
Foreign currency, at valueb | — | 6,154,164 | 46,720 | |||||||||
Foreign currency pledged to broker for futures contracts, at valueb | — | 1,066,831 | — | |||||||||
Receivables: | ||||||||||||
Investment securities sold | — | 4,685,849 | 28,718 | |||||||||
Dividends and interest | 1,185 | 16,728,948 | 25,315 | |||||||||
Unrealized appreciation on forward currency contracts (Note 6) | 569,489 | — | — | |||||||||
Tax reclaims | — | 121,289 | 6,234 | |||||||||
|
|
|
|
|
| |||||||
Total Assets | 17,846,136 | 2,586,352,280 | 32,965,501 | |||||||||
|
|
|
|
|
| |||||||
LIABILITIES | ||||||||||||
Payables: | ||||||||||||
Investment securities purchased | 189,630 | 6,552,218 | 52,895 | |||||||||
Collateral for securities on loan (Note 1) | 3,600,000 | 2,450,736 | 824,583 | |||||||||
Futures variation margin | — | 139,011 | — | |||||||||
Unrealized depreciation on forward currency contracts (Note 6) | 202,440 | — | — | |||||||||
Investment advisory fees (Note 2) | — | 935,331 | 14,729 | |||||||||
|
|
|
|
|
| |||||||
Total Liabilities | 3,992,070 | 10,077,296 | 892,207 | |||||||||
|
|
|
|
|
| |||||||
NET ASSETS | $ | 13,854,066 | $ | 2,576,274,984 | $ | 32,073,294 | ||||||
|
|
|
|
|
| |||||||
Net assets consist of: | ||||||||||||
Paid-in capital | $ | 19,261,058 | $ | 3,156,438,284 | $ | 29,808,719 | ||||||
Undistributed (distributions in excess of) net investment income | 3,636 | 11,871,493 | (137,004 | ) | ||||||||
Accumulated net realized loss | (6,223,700 | ) | (237,021,849 | ) | (1,004,206 | ) | ||||||
Net unrealized appreciation (depreciation) | 813,072 | (355,012,944 | ) | 3,405,785 | ||||||||
|
|
|
|
|
| |||||||
NET ASSETS | $ | 13,854,066 | $ | 2,576,274,984 | $ | 32,073,294 | ||||||
|
|
|
|
|
| |||||||
Shares outstandingc | 600,000 | 74,000,000 | 750,000 | |||||||||
|
|
|
|
|
| |||||||
Net asset value per share | $ | 23.09 | $ | 34.81 | $ | 42.76 | ||||||
|
|
|
|
|
|
a | Securities on loan with values of $3,467,000, $2,282,811 and $758,556, respectively. See Note 1. |
b | Cost of foreign currency including currency pledged to broker for futures contracts: $ —, $7,237,986 and $47,334, respectively. |
c | No par value, unlimited number of shares authorized. |
See notes to financial statements.
FINANCIAL STATEMENTS | 21 |
Table of Contents
Statements of Operations (Unaudited)
iSHARES® TRUST
Six months ended February 28, 2018
iShares Currency Hedged MSCI | iShares MSCI United Kingdom ETF | iShares MSCI United Kingdom | ||||||||||
NET INVESTMENT INCOME | ||||||||||||
Dividends — unaffiliateda | $ | — | $ | 40,313,205 | $ | 353,629 | ||||||
Dividends — affiliated (Note 2) | 337,693 | 12,201 | 152 | |||||||||
Securities lending income — affiliated — net (Note 2) | 3,477 | 45,492 | 21,035 | |||||||||
|
|
|
|
|
| |||||||
Total investment income | 341,170 | 40,370,898 | 374,816 | |||||||||
|
|
|
|
|
| |||||||
EXPENSES | ||||||||||||
Investment advisory fees (Note 2) | 50,569 | 6,138,263 | 98,006 | |||||||||
Proxy fees | 10 | 300 | 4 | |||||||||
|
|
|
|
|
| |||||||
Total expenses | 50,579 | 6,138,563 | 98,010 | |||||||||
Less investment advisory fees waived (Note 2) | (50,579 | ) | — | — | ||||||||
|
|
|
|
|
| |||||||
Net expenses | — | 6,138,563 | 98,010 | |||||||||
|
|
|
|
|
| |||||||
Net investment income | 341,170 | 34,232,335 | 276,806 | |||||||||
|
|
|
|
|
| |||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||
Net realized gain (loss) from: | ||||||||||||
Investments — unaffiliated | — | (20,962,868 | ) | (337,891 | ) | |||||||
Investments — affiliated (Note 2) | 57,322 | (6,305 | ) | (229 | ) | |||||||
In-kind redemptions — unaffiliated | — | 61,734,544 | 1,044,876 | |||||||||
In-kind redemptions — affiliated (Note 2) | 989,088 | — | — | |||||||||
Futures contracts | — | (730,028 | ) | — | ||||||||
Foreign currency transactions | — | 1,770,610 | 13,811 | |||||||||
Forward currency contracts | (1,213,255 | ) | — | — | ||||||||
|
|
|
|
|
| |||||||
Net realized gain (loss) | (166,845 | ) | 41,805,953 | 720,567 | ||||||||
|
|
|
|
|
| |||||||
Net change in unrealized appreciation/depreciation on: | ||||||||||||
Investments — unaffiliated | — | 50,466,178 | 1,789,568 | |||||||||
Investments — affiliated (Note 2) | (265,354 | ) | — | (74 | ) | |||||||
Forward currency contracts | 122,593 | — | — | |||||||||
Futures contracts | — | (317,242 | ) | — | ||||||||
Translation of assets and liabilities in foreign currencies | (1 | ) | 84,571 | 7 | ||||||||
|
|
|
|
|
| |||||||
Net change in unrealized appreciation/depreciation | (142,762 | ) | 50,233,507 | 1,789,501 | ||||||||
|
|
|
|
|
| |||||||
Net realized and unrealized gain (loss) | (309,607 | ) | 92,039,460 | 2,510,068 | ||||||||
|
|
|
|
|
| |||||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 31,563 | $ | 126,271,795 | $ | 2,786,874 | ||||||
|
|
|
|
|
|
a | Net of foreign withholding tax of $ —, $737,414 and $6,496, respectively. |
See notes to financial statements.
22 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Changes in Net Assets
iSHARES® TRUST
iShares Currency Hedged MSCI United Kingdom ETF | iShares MSCI United Kingdom ETF | |||||||||||||||
Six months February 28, 2018 (Unaudited) | Year ended August 31, 2017 | Six months February 28, 2018 (Unaudited) | Year ended August 31, 2017a | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income | $ | 341,170 | $ | 1,417,778 | $ | 34,232,335 | $ | 96,085,353 | ||||||||
Net realized gain (loss) | (166,845 | ) | 6,864,061 | 41,805,953 | 1,083,618 | |||||||||||
Net change in unrealized appreciation/depreciation | (142,762 | ) | 659,666 | 50,233,507 | 180,539,121 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase in net assets resulting from operations | 31,563 | 8,941,505 | 126,271,795 | 277,708,092 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
From net investment income | (337,534 | ) | (1,418,189 | ) | (46,875,181 | ) | (84,560,284 | ) | ||||||||
From net realized gain | — | (8,272,441 | ) | — | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions to shareholders | (337,534 | ) | (9,690,630 | ) | (46,875,181 | ) | (84,560,284 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Proceeds from shares sold | 3,585,240 | 47,661,215 | 201,092,783 | 1,013,351,767 | ||||||||||||
Cost of shares redeemed | (8,498,148 | ) | (142,236,695 | ) | (468,960,276 | ) | (370,634,422 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets from | (4,912,908 | ) | (94,575,480 | ) | (267,867,493 | ) | 642,717,345 | |||||||||
|
|
|
|
|
|
|
| |||||||||
INCREASE (DECREASE) IN NET ASSETS | (5,218,879 | ) | (95,324,605 | ) | (188,470,879 | ) | 835,865,153 | |||||||||
NET ASSETS | ||||||||||||||||
Beginning of period | 19,072,945 | 114,397,550 | 2,764,745,863 | 1,928,880,710 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 13,854,066 | $ | 19,072,945 | $ | 2,576,274,984 | $ | 2,764,745,863 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed net investment income included in net assets at end of period | $ | 3,636 | $ | — | $ | 11,871,493 | $ | 24,514,339 | ||||||||
|
|
|
|
|
|
|
| |||||||||
SHARES ISSUED AND REDEEMED | ||||||||||||||||
Shares sold | 150,000 | 2,000,000 | 5,500,000 | 33,800,000 | ||||||||||||
Shares redeemed | (350,000 | ) | (5,800,000 | ) | (13,400,000 | ) | (13,400,000 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in shares outstanding | (200,000 | ) | (3,800,000 | ) | (7,900,000 | ) | 20,400,000 | |||||||||
|
|
|
|
|
|
|
|
a | Share transactions reflect a one-for-two reverse stock split effective after the close of trading on November 4, 2016. |
See notes to financial statements.
FINANCIAL STATEMENTS | 23 |
Table of Contents
Statements of Changes in Net Assets (Continued)
iSHARES® TRUST
iShares MSCI United Kingdom Small-Cap ETF | ||||||||
Six months February 28, 2018 (Unaudited) | Year ended August 31, 2017 | |||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||
OPERATIONS: | ||||||||
Net investment income | $ | 276,806 | $ | 722,116 | ||||
Net realized gain (loss) | 720,567 | (386,729 | ) | |||||
Net change in unrealized appreciation/depreciation | 1,789,501 | 3,809,000 | ||||||
|
|
|
| |||||
Net increase in net assets resulting from operations | 2,786,874 | 4,144,387 | ||||||
|
|
|
| |||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||
From net investment income | (497,799 | ) | (787,287 | ) | ||||
|
|
|
| |||||
Total distributions to shareholders | (497,799 | ) | (787,287 | ) | ||||
|
|
|
| |||||
CAPITAL SHARE TRANSACTIONS: | ||||||||
Proceeds from shares sold | 2,047,941 | 9,014,541 | ||||||
Cost of shares redeemed | (4,198,702 | ) | (5,571,542 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in net assets fromcapital share transactions | (2,150,761 | ) | 3,442,999 | |||||
|
|
|
| |||||
INCREASE IN NET ASSETS | 138,314 | 6,800,099 | ||||||
NET ASSETS | ||||||||
Beginning of period | 31,934,980 | 25,134,881 | ||||||
|
|
|
| |||||
End of period | $ | 32,073,294 | $ | 31,934,980 | ||||
|
|
|
| |||||
Undistributed (distributions in excess of) net investment income included in net assets at end of period | $ | (137,004 | ) | $ | 83,989 | |||
|
|
|
| |||||
SHARES ISSUED AND REDEEMED | ||||||||
Shares sold | 50,000 | 250,000 | ||||||
Shares redeemed | (100,000 | ) | (150,000 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (50,000 | ) | 100,000 | |||||
|
|
|
|
See notes to financial statements.
24 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
iSHARES® TRUST
(For a share outstanding throughout each period)
iShares Currency Hedged MSCI United Kingdom ETF |
Six months ended Feb. 28, 2018 (Unaudited) | Year ended Aug. 31, 2017 | Year ended Aug. 31, 2016 | Period from to Aug. 31, 2015 | |||||||||||||
Net asset value, beginning of period | $ | 23.84 | $ | 24.87 | $ | 23.21 | $ | 24.35 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Income from investment operations: | ||||||||||||||||
Net investment income (loss)b | 0.50 | 0.48 | 0.43 | (0.00 | )c | |||||||||||
Net realized and unrealized gain (loss)d | (0.80 | ) | 2.39 | 2.48 | (1.14 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total from investment operations | (0.30 | ) | 2.87 | 2.91 | (1.14 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Less distributions from: | ||||||||||||||||
Net investment income | (0.45 | ) | (0.84 | ) | (1.01 | ) | — | |||||||||
Net realized gain | — | (3.06 | ) | (0.24 | ) | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions | (0.45 | ) | (3.90 | ) | (1.25 | ) | — | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net asset value, end of period | $ | 23.09 | $ | 23.84 | $ | 24.87 | $ | 23.21 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total return | (1.35 | )%e | 13.48 | % | 12.90 | % | (4.64 | )%e | ||||||||
|
|
|
|
|
|
|
| |||||||||
Ratios/Supplemental data: | ||||||||||||||||
Net assets, end of period (000s) | $ | 13,854 | $ | 19,073 | $ | 114,398 | $ | 2,321 | ||||||||
Ratio of expenses to average net assetsf,g | 0.00 | % | 0.00 | % | 0.00 | % | 0.01 | % | ||||||||
Ratio of expenses to average net assets prior to waived feesf,g | 0.62 | % | 0.62 | % | 0.62 | % | 0.62 | % | ||||||||
Ratio of net investment income (loss) to average net assetsf | 4.18 | % | 1.99 | % | 1.80 | % | (0.01 | )% | ||||||||
Portfolio turnover rateh,i | 6 | %e | 20 | % | 4 | % | 0 | %e |
a | Commencement of operations. |
b | Based on average shares outstanding throughout each period. |
c | Rounds to less than $0.01. |
d | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
e | Not annualized. |
f | Annualized for periods of less than one year. |
g | The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying fund in which the Fund is invested. This ratio does not include these indirect fees and expenses. |
h | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
i | Portfolio turnover rates exclude the portfolio activity of the underlying fund in which the Fund is invested. See page xx for the portfolio turnover rates of the underlying fund. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 25 |
Table of Contents
Financial Highlights (Continued)
iSHARES® TRUST
(For a share outstanding throughout each period)
iShares MSCI United Kingdom ETF | ||||||||||||||||||||||||
Six months ended Feb. 28, 2018 (Unaudited) | Year ended Aug. 31, 2017a | Year ended Aug. 31, 2016a | Year ended Aug. 31, 2015a | Year ended Aug. 31, 2014a | Year ended Aug. 31, 2013a | |||||||||||||||||||
Net asset value, beginning of period | $ | 33.76 | $ | 31.36 | $ | 34.30 | $ | 41.05 | $ | 37.09 | $ | 33.83 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomeb | 0.46 | 1.13 | 1.22 | 1.30 | 2.76 | c | 1.32 | |||||||||||||||||
Net realized and unrealized gain (loss)d | 1.25 | 2.43 | (2.73 | ) | (6.66 | ) | 3.71 | 2.97 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 1.71 | 3.56 | (1.51 | ) | (5.36 | ) | 6.47 | 4.29 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.66 | ) | (1.16 | ) | (1.43 | ) | (1.39 | ) | (2.51 | ) | (1.03 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | (0.66 | ) | (1.16 | ) | (1.43 | ) | (1.39 | ) | (2.51 | ) | (1.03 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 34.81 | $ | 33.76 | $ | 31.36 | $ | 34.30 | $ | 41.05 | $ | 37.09 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total return | 5.06 | %e | 11.60 | % | (4.44 | )% | (13.26 | )% | 17.56 | % | 12.91 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 2,576,275 | $ | 2,764,746 | $ | 1,928,881 | $ | 3,210,826 | $ | 4,236,360 | $ | 2,670,796 | ||||||||||||
Ratio of expenses to average net assetsf | 0.47 | % | 0.49 | % | 0.48 | % | 0.48 | % | 0.48 | % | 0.51 | % | ||||||||||||
Ratio of net investment income to average net assetsf | 2.63 | % | 4.07 | % | 3.80 | % | 3.46 | % | 6.71 | %c | 3.61 | % | ||||||||||||
Portfolio turnover rateg | 2 | %e | 4 | % | 5 | % | 4 | % | 10 | % | 4 | % |
a | Per share amounts reflect a one-for-two reverse stock split effective after the close of trading on November 4, 2016. |
b | Based on average shares outstanding throughout each period. |
c | Includes a one-time special distribution from Vodafone Group PLC which represented $0.66 per share and 3.23% of average net assets. |
d | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
e | Not annualized. |
f | Annualized for periods of less than one year. |
g | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
26 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Financial Highlights (Continued)
iSHARES® TRUST
(For a share outstanding throughout each period)
iShares MSCI United Kingdom Small-Cap ETF | ||||||||||||||||||||||||
Six months ended Feb. 28, 2018 (Unaudited) | Year ended Aug. 31, 2017 | Year ended Aug. 31, 2016 | Year ended Aug. 31, 2015 | Year ended Aug. 31, 2014 | Year ended Aug. 31, 2013 | |||||||||||||||||||
Net asset value, beginning of period | $ | 39.92 | $ | 35.91 | $ | 40.91 | $ | 40.82 | $ | 35.27 | $ | 27.95 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.35 | 0.92 | 1.02 | 1.07 | 0.95 | 0.91 | ||||||||||||||||||
Net realized and unrealized gain (loss)b | 3.15 | 4.12 | (4.89 | ) | 0.40 | 5.26 | 7.41 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 3.50 | 5.04 | (3.87 | ) | 1.47 | 6.21 | 8.32 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.66 | ) | (1.03 | ) | (1.13 | ) | (1.38 | ) | (0.66 | ) | (1.00 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | (0.66 | ) | (1.03 | ) | (1.13 | ) | (1.38 | ) | (0.66 | ) | (1.00 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 42.76 | $ | 39.92 | $ | 35.91 | $ | 40.91 | $ | 40.82 | $ | 35.27 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total return | 8.79 | %c | 14.40 | % | (9.66 | )% | 3.84 | % | 17.66 | % | 30.27 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 32,073 | $ | 31,935 | $ | 25,135 | $ | 16,365 | $ | 32,656 | $ | 8,818 | ||||||||||||
Ratio of expenses to average net assetsd | 0.59 | % | 0.59 | % | 0.59 | % | 0.59 | % | 0.59 | % | 0.59 | % | ||||||||||||
Ratio of net investment income to average net assetsd | 1.67 | % | 2.50 | % | 2.72 | % | 2.71 | % | 2.29 | % | 2.82 | % | ||||||||||||
Portfolio turnover ratee | 10 | %c | 19 | % | 21 | % | 17 | % | 13 | % | 19 | % |
a | Based on average shares outstanding throughout each period. |
b | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 27 |
Table of Contents
Notes to Financial Statements (Unaudited)
iSHARES® TRUST
iShares Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust was established as a Delaware statutory trust pursuant to an Agreement and Declaration of Trust dated December 16, 1999.
These financial statements relate only to the following funds (each, a “Fund,” and collectively, the “Funds”):
iShares ETF | Diversification Classification | |
Currency Hedged MSCI United Kingdom | Non-diversified | |
MSCI United Kingdom | Non-diversified | |
MSCI United Kingdom Small-Cap | Diversified |
The investment objective of each Fund is to seek investment results that correspond generally to the price and yield performance, before fees and expenses, of its underlying index. The investment adviser uses a “passive” or index approach to try to achieve each Fund’s investment objective. Currently the iShares Currency Hedged MSCI United Kingdom ETF seeks to achieve its investment objective by investing a substantial portion of its assets in the iShares MSCI United Kingdom ETF. The financial statements and schedule of investments for the iShares MSCI United Kingdom ETF are included in this report and should be read in conjunction with the financial statements of the iShares Currency Hedged MSCI United Kingdom ETF.
Pursuant to the Trust’s organizational documents, the Funds’ officers and trustees are indemnified against certain liabilities that may arise out of the performance of their duties to the Funds. Additionally, in the normal course of business, the Funds enter into contracts with service providers that contain general indemnification clauses. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred.
1. | SIGNIFICANT ACCOUNTING POLICIES |
The following significant accounting policies are consistently followed by each Fund in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies.
SECURITY VALUATION
Each Fund’s investments are valued at fair value each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date should the reporting period end on a day that the Fund’s listing exchange is not open. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) provides oversight of the valuation of investments for the Funds. The investments of each Fund are valued pursuant to policies and procedures developed by the Global Valuation Committee and approved by the Board of Trustees of the Trust (the “Board”).
• | Equity investments traded on a recognized securities exchange are valued at that day’s last reported trade price or the official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price. |
28 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
• | Exchange-traded funds and closed-end funds traded on a recognized securities exchange are valued at that day’s last reported trade price or the official closing price, as applicable, on the exchange where the fund is primarily traded. Funds traded on a recognized exchange for which there were no sales on that day are valued at the last traded price. |
• | Open-end U.S. mutual funds (including money market funds) are valued at that day’s published net asset value (“NAV”). |
• | Futures contract notional values are determined based on that day’s last reported settlement price on the exchange where the contract is traded. |
• | Forward currency contracts are valued based on that day’s prevailing forward exchange rate for the underlying currencies. Interpolated forward exchange rates are used for contracts with interim settlement dates for which quotations are not available. |
In the event that application of these methods of valuation results in a price for an investment which is deemed not to be representative of the fair value of such investment or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board. The fair valuation approaches that may be utilized by the Global Valuation Committee to determine fair value include market approach, income approach and the cost approach. The valuation techniques used under these approaches take into consideration inputs that include but are not limited to (i) attributes specific to the investment; (ii) the principal market for the investment; (iii) the customary participants in the principal market for the investment; (iv) data assumptions by market participants for the investment, if reasonably available; (v) quoted prices for similar investments in active markets; and (vi) other inputs, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates. Valuations based on such inputs are reported to the Board on a quarterly basis.
The Global Valuation Committee employs various methods for calibrating valuation approaches for investments where an active market does not exist, including regular due diligence of the Trust’s pricing vendors, a regular review of key inputs and assumptions, transactional back-testing or disposition analysis to compare unrealized gains and losses to realized gains and losses, reviews of missing or stale prices, reviews of large movements in market values, and reviews of market related activity.
Fair value pricing could result in a difference between the prices used to calculate a Fund’s NAV and the prices used by the Fund’s underlying index, which in turn could result in a difference between the Fund’s performance and the performance of the Fund’s underlying index.
Various inputs are used in determining the fair value of financial instruments. Inputs may be based on independent market data (“observable inputs”) or they may be internally developed (“unobservable inputs”). These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:
• | Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities; |
• | Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability (such as exchange rates, financing terms, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and |
• | Level 3 — Unobservable inputs for the asset or liability based on the best information available in the circumstances, to the extent observable inputs are not available, including the Global Valuation Committee’s assumptions used in determining the fair value of investments. |
NOTESTO FINANCIAL STATEMENTS | 29 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgement exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value hierarchy for each Fund’s investments is included in its schedule of investments.
Changes in valuation techniques may result in transfers in or out of an assigned level within the fair value hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of values determined for financial instruments are based on the pricing transparency of the financial instruments and are not necessarily an indication of the risks associated with investing in those securities.
SECURITY TRANSACTIONS AND INCOME RECOGNITION
Security transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recognized on the ex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities as of February 28, 2018 are reflected in tax reclaims receivable. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be re-designated as a return of capital or capital gain. Non-cash dividends, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Distributions received by the Funds may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. Interest income is accrued daily.
FOREIGN CURRENCY TRANSLATION
The accounting records of the Funds are maintained in U.S. dollars. Foreign currencies, as well as investment securities and other assets and liabilities denominated in foreign currencies, are translated into U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of securities, income receipts and expense payments are translated into U.S. dollars on the respective dates of such transactions.
Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of securities. Such fluctuations are reflected by the Funds as a component of realized and unrealized gains and losses from investments for financial reporting purposes. Each Fund reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes. However, the iShares Currency Hedged MSCI United Kingdom ETF has elected to treat realized gains (losses) from certain foreign currency contracts as capital gain (loss) for U.S. federal income tax purposes.
FOREIGN TAXES
The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Funds invest. These foreign taxes, if any, are paid by the Funds and are reflected in their statements of operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign
30 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of February 28, 2018, if any, are disclosed in the Funds’ statements of assets and liabilities.
DISTRIBUTIONS TO SHAREHOLDERS
Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds.
LOANS OF PORTFOLIO SECURITIES
Each Fund may lend its investment securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by an approved bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Funds. Any additional required collateral is delivered to the Funds and any excess collateral is returned by the Funds on the next business day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.
Cash received as collateral for securities on loan may be reinvested in certain short-term instruments either directly on behalf of a fund or through one or more joint accounts or money market funds, including those managed by BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, or its affiliates. As of February 28, 2018, any securities on loan were collateralized by cash and/or U.S. government obligations. Cash collateral received was invested in money market funds managed by BFA and is disclosed in the schedules of investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan for each Fund are also disclosed in its schedule of investments. The total value of any securities on loan as of February 28, 2018 and the total value of the related cash collateral are disclosed in the statements of assets and liabilities. Income earned by the Funds from securities lending is disclosed in the statements of operations.
The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Funds benefit from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of securities loaned if the collateral received does not cover the value of the securities loaned in the event of borrower default. Each Fund could incur a loss if the value of an investment purchased with cash collateral falls below the value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received.
Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (“MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, a Fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. The value of the collateral is typically greater than that of the market value of the securities loaned, leaving the lender with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, the
NOTESTO FINANCIAL STATEMENTS | 31 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
borrower can resell or re-pledge the loaned securities, and a Fund can reinvest cash collateral, or, upon an event of default, resell or re-pledge the collateral.
The following table is a summary of securities lending agreements which are subject to offset under an MSLA as of February 28, 2018:
iShares ETF and Counterparty | Market Value of Securities on Loan | Cash Collateral Received a | Net Amount b | |||||||||
Currency Hedged MSCI United Kingdom | ||||||||||||
JPMorgan Securities LLC | $ | 3,467,000 | $ | 3,467,000 | $ | — | ||||||
|
|
|
|
|
| |||||||
MSCI United Kingdom | ||||||||||||
Goldman Sachs & Co. | $ | 1,430,836 | $ | 1,430,836 | $ | — | ||||||
Merrill Lynch, Pierce, Fenner & Smith | 157,644 | 157,644 | — | |||||||||
Morgan Stanley & Co. LLC | 193,962 | 193,599 | (363 | ) | ||||||||
State Street Bank & Trust Company | 500,369 | 500,369 | — | |||||||||
|
|
|
|
|
| |||||||
$ | 2,282,811 | $ | 2,282,448 | $ | (363 | ) | ||||||
|
|
|
|
|
| |||||||
MSCI United Kingdom Small-Cap | ||||||||||||
Citigroup Global Markets Inc. | $ | 148,251 | $ | 148,251 | $ | — | ||||||
Deutsche Bank Securities Inc. | 48,098 | 48,098 | — | |||||||||
Jefferies LLC | 770 | 770 | — | |||||||||
Merrill Lynch, Pierce, Fenner & Smith | 200,413 | 200,413 | — | |||||||||
Morgan Stanley & Co. LLC | 143,561 | 143,561 | — | |||||||||
UBS AG | 217,463 | 217,463 | — | |||||||||
|
|
|
|
|
| |||||||
$ | 758,556 | $ | 758,556 | $ | — | |||||||
|
|
|
|
|
| |||||||
a | Collateral received in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Fund’s statement of assets and liabilities. |
b | Additional collateral is delivered to the Funds on the next business day in accordance with the MSLA. The net amount would be subject to the borrower default indemnity in the event of default by a counterparty. |
2. | INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES |
Pursuant to an Investment Advisory Agreement with the Trust, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent trustees).
For its investment advisory services to the iShares Currency Hedged MSCI United Kingdom ETF, BFA is entitled to an annual investment advisory fee of 0.62%, accrued daily and paid monthly by the Fund, based on the average daily net assets of the Fund. In addition, the Fund may incur its pro rata share of fees and expenses attributable to its investments in other investment companies (“acquired fund fees and expenses”). The total of the investment advisory fee and acquired fund fees and expenses are a fund’s total annual operating expenses. BFA has contractually agreed to waive a portion of its investment advisory fee for the Fund through December 31, 2020 so that the Fund’s total annual operating expenses after fee waiver is equal to the acquired fund fees and expenses attributable to the Fund’s investment in the iShares MSCI United Kingdom ETF (“EWU”), after taking into account any fee waivers by EWU, plus 0.03%. BFA has also contractually agreed to an additional reduction in its investment advisory fee of 0.03% through December 31, 2020.
32 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
For its investment advisory services to the iShares MSCI United Kingdom ETF, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Fund, based on the Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:
Investment Advisory Fee | Aggregate Average Daily Net Assets | ||||
0.59 | % | First $7 billion | |||
0.54 | Over $7 billion, up to and including $11 billion | ||||
0.49 | Over $11 billion, up to and including $24 billion | ||||
0.44 | Over $24 billion, up to and including $48 billion | ||||
0.40 | Over $48 billion, up to and including $72 billion | ||||
0.36 | Over $72 billion, up to and including $96 billion | ||||
0.32 | Over $96 billion |
For its investment advisor services to the iShares MSCI United Kingdom Small-Cap ETF, BFA is entitled to an annual advisory fee of 0.59%, accrued daily and paid monthly by the Fund, based on the Fund’s average daily net assets.
The U.S. Securities and Exchange Commission has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan in a money market fund managed by BFA, however, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04% (the “collateral investment fees”). Securities lending income is equal to the total of income earned from the reinvestment of cash collateral (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. The Funds retain a portion of securities lending income and remit the remaining portion to BTC as compensation for its services as securities lending agent.
Pursuant to a securities lending agreement, each Fund retains 80% of securities lending income and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees. In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in a given calendar year exceeds the aggregate securities lending income generated across the iShares ETF Complex in the calendar year 2013, each Fund, pursuant to a securities lending agreement, will retain for the remainder of that calendar year 85% of securities lending income and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
For the six months ended February 28, 2018, the total of securities lending agent services and collateral investment fees paid were as follows:
iShares ETF | Fees Paid to BTC | |||
Currency Hedged MSCI United Kingdom | $ | 1,018 | ||
MSCI United Kingdom | 10,667 | |||
MSCI United Kingdom Small-Cap | 4,443 |
BlackRock Investments, LLC, an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.
NOTESTO FINANCIAL STATEMENTS | 33 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
Cross trading is the buying or selling of portfolio securities between funds to which BFA (or an affiliate) serves as investment adviser. At its regularly scheduled quarterly meetings, the Board reviews such transactions as of the most recent calendar quarter for compliance with the requirements and restrictions set forth by Rule 17a-7.
For the six months ended February 28, 2018, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:
iShares ETF | Purchases | Sales | ||||||
MSCI United Kingdom | $ | 16,363,578 | $ | 6,856,886 | ||||
MSCI United Kingdom Small-Cap | 889,221 | 737,280 |
Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is included in “Dividends – affiliated” in the statements of operations.
The PNC Financial Services Group, Inc. is the largest stockholder of BlackRock and is considered to be an affiliate of the Funds for 1940 Act purposes.
Certain trustees and officers of the Trust are also officers of BTC and/or BFA.
3. | INVESTMENT PORTFOLIO TRANSACTIONS |
Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the six months ended February 28, 2018 were as follows:
iShares ETF | Purchases | Sales | ||||||
Currency Hedged MSCI United Kingdom | $ | 1,045,441 | $ | 2,275,197 | ||||
MSCI United Kingdom | 90,075,442 | 51,340,038 | ||||||
MSCI United Kingdom Small-Cap | 3,342,614 | 3,353,525 |
In-kind transactions (see Note 4) for the six months ended February 28, 2018 were as follows:
iShares ETF | In-kind Purchases | In-kind Sales | ||||||
Currency Hedged MSCI United Kingdom | $ | 3,579,201 | $ | 8,564,228 | ||||
MSCI United Kingdom | 154,268,066 | 465,189,743 | ||||||
MSCI United Kingdom Small-Cap | 2,031,300 | 4,144,050 |
4. | CAPITAL SHARE TRANSACTIONS |
Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable. Transactions in capital shares for each Fund are disclosed in detail in the statements of changes in net assets.
The consideration for the purchase of Creation Units of a fund in the Trust generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Trust may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to State Street Bank and Trust Company, the Trust’s administrator, to offset transfer and
34 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in “Proceeds from shares sold” in the statements of changes in net assets.
5. | FUTURES CONTRACTS |
The Fund’s use of futures contracts is generally limited to cash equitization. This involves the use of available cash to invest in index futures contracts in order to gain exposure to the equity markets represented in or by the Fund’s underlying index and is intended to allow the Fund to better track its underlying index. Futures contracts are standardized, exchange-traded agreements to buy or sell a financial instrument at a set price on a future date. Upon entering into a futures contract, a fund is required to pledge to the executing broker which holds segregated from its own assets, an amount of cash, U.S. government securities or other high-quality debt and equity securities equal to the minimum initial margin requirements of the exchange on which the contract is traded.
Pursuant to the contract, the fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract. Such receipts or payments are known as margin variation and are recorded by the fund as unrealized appreciation or depreciation. When the contract is closed, the fund records a realized gain or loss equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. Losses may arise if the notional value of a futures contract decreases due to an unfavorable change in the market rates or values of the underlying instrument during the term of the contract or if the counterparty does not perform under the contract. The use of futures contracts also involves the risk of an imperfect correlation in the movements in the price of futures contracts and the assets underlying such contracts.
The following table shows the value of futures contracts held by the iShares MSCI United Kingdom ETF as of February 28, 2018 and the related locations in the statements of assets and liabilities, presented by risk exposure category:
Liabilities | ||||
Futures contracts: | ||||
Variation margin/Net assets consist of – net unrealized appreciation (depreciation)a | $ | 139,011 | ||
|
| |||
a | Represents cumulative depreciation of futures contracts as reported in the schedule of investments. |
The following table shows the realized and unrealized gains (losses) on futures contracts held by the iShares MSCI United Kingdom ETF during the six months ended February 28, 2018 and the related locations in the statements of operations, presented by risk exposure category:
Net Realized Gain (Loss) | Net Change in Unrealized Appreciation/Depreciation | |||||||
Futures contracts | $ | (730,028 | ) | $ | (317,242 | ) | ||
|
|
|
| |||||
The following table shows the average quarter-end balances of open futures contracts for the iShares MSCI United Kingdom ETF for the six months ended February 28, 2018:
Average notional value of contracts purchased | $21,712,140 |
NOTESTO FINANCIAL STATEMENTS | 35 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
6. | FORWARD CURRENCY CONTRACTS |
The currency-hedged fund uses forward currency contracts to hedge the currency exposure of non-U.S. dollar-denominated securities held by the Fund or its underlying fund. A forward currency contract is an obligation to purchase or sell a currency against another currency at a specified future date at an agreed upon price and quantity. Forward currency contracts are traded over-the-counter (“OTC”) and not on an organized exchange.
The contract is marked-to-market daily and the change in market value is recorded as unrealized appreciation or depreciation. When the contract is closed, a realized gain or loss equal to the difference between the value at the time it was opened and the value at the time it was closed is recorded. Non-deliverable forward currency contracts (“NDFs”) are settled with the counterparty in cash without the delivery of foreign currency. Losses may arise if there are unfavorable movements in the value of a foreign currency relative to the U.S. dollar or if the counterparties do not meet the terms of the agreement. A fund’s use of forward currency contracts also involves the risks of imperfect correlation between the value of its currency positions and its other investments or the fund failing to close out its position due to an illiquid market.
The following table shows the value of forward currency contracts held by the iShares Currency Hedged MSCI United Kingdom ETF as of February 28, 2018 and the related locations in the statements of assets and liabilities, presented by risk exposure category:
Assets | ||||
Forward currency contracts: | ||||
Unrealized appreciation on forward currency contracts/Net assets consist of – net unrealized appreciation (depreciation) | $ | 569,489 | ||
|
| |||
Liabilities | ||||
Forward currency contracts: | ||||
Unrealized depreciation on forward currency contracts/Net assets consist of – net unrealized appreciation (depreciation) | $ | 202,440 | ||
|
| |||
The following table shows the realized and unrealized gains (losses) on forward currency contracts held by the iShares Currency Hedged MSCI United Kingdom ETF during the six months ended February 28, 2018 and the related locations in the statements of operations, presented by risk exposure category:
Net Realized Gain (Loss) | Net Change in Unrealized | |||||||
Forward currency contracts | $ | (1,213,255 | ) | $ | 122,593 | |||
|
|
|
| |||||
The following table shows the average quarter-end balances of outstanding forward currency contracts for the iShares Currency Hedged MSCI United Kingdom ETF for the six months ended February 28, 2018:
Average amounts purchased in U.S. dollars | $ | 19,142,045 | ||
Average amounts sold in U.S. dollars | $ | 34,940,801 |
36 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
The Funds’ risk of loss from counterparty credit risk on OTC derivatives is generally limited to the aggregate unrealized gain netted against any collateral held by the Funds. In order to better define their contractual rights and to secure rights that will help the Funds to mitigate their counterparty risk, the Funds may enter into an International Swaps and Derivatives Association, Inc. master agreement (“ISDA Master Agreement”) or similar agreement with their derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between the Funds and a counterparty that governs OTC derivatives and foreign exchange contracts and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default including the bankruptcy or insolvency of the counterparty. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy or insolvency.
The collateral requirements under an ISDA Master Agreement are typically calculated by netting the mark-to-market amount for each transaction under such agreement, and comparing that amount to the value of any collateral currently pledged by the parties. Except for NDFs, the forward currency contracts held by the Funds generally do not require collateral. Cash collateral pledged to the counterparty, if any, is presented as “Cash pledged to broker for forward currency contracts” on the statement of assets and liabilities. Cash received as collateral from the counterparty may be reinvested in money market funds, including those managed by the Funds’ investment adviser, or its affiliates. Such collateral, if any, is presented in the statement of assets and liabilities as “Investments in securities – affiliated” and “Payable due to broker for collateral on forwards.” To the extent amounts due to the Funds from the counterparty are not fully collateralized, contractually or otherwise, the Funds bear the risk of loss from counterparty non-performance. The Funds attempt to mitigate counterparty risk by only entering into agreements with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties.
For financial reporting purposes, the Funds do not offset financial assets and financial liabilities that are subject to netting arrangements in the statements of assets and liabilities.
The following table presents the exposure of the open forward currency contracts held by the iShares Currency Hedged MSCI United Kingdom ETF that are subject to potential offset on the statement of assets and liabilities as of February 28, 2018:
Derivative Assets Subject to Offsetting | Derivatives Available for Offset | Net Amount of Derivative Assets | ||||||||||
Forward currency contracts | $ | 569,489 | $ | (202,440 | ) | $ | 367,049 | |||||
|
|
|
|
|
| |||||||
Derivative Liabilities Subject to Offsetting | Derivatives Available for Offset | Net Amount of Derivative Liabilities | ||||||||||
Forward currency contracts | $ | 202,440 | $ | (202,440 | ) | $ | — | |||||
|
|
|
|
|
| |||||||
7. | PRINCIPAL RISKS |
In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors,
NOTESTO FINANCIAL STATEMENTS | 37 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Each Fund’s prospectus provides details of the risks to which the Fund is subject.
BFA uses a “passive” or index approach to try to achieve each Fund’s investment objective following the securities included in its underlying index during upturns as well as downturns. BFA does not take steps to reduce market exposure or to lessen the effects of a declining market. Divergence from the underlying index and the composition of the portfolio is monitored by BFA.
MARKET RISK
Market risk arises mainly from uncertainty about future values of financial instruments influenced by price, currency and interest rate movements. It represents the potential loss a fund may suffer through holding market positions in the face of market movements. A fund is exposed to market risk by its investment in equity, fixed income and/or financial derivative instruments or by its investment in underlying funds. The fair value of securities held by a fund may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. The extent of a fund’s exposure to market risk is the market value of the investments held as shown in the fund’s schedule of investments.
A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its schedule of investments.
Investing in the securities of non-U.S. issuers involves certain considerations and risks not typically associated with securities of U.S. issuers. Such risks include, but are not limited to: differences in accounting, auditing and financial reporting standards; more substantial governmental involvement in the economy; higher inflation rates, greater social, economic and political uncertainties; possible nationalization or expropriation of assets; less availability of public information about issuers; imposition of withholding or other taxes; higher transaction and custody costs and delays in settlement procedures; and lower level of regulation of the securities markets and issuers. Non-U.S. securities may be less liquid, more difficult to value, and have greater price volatility due to exchange rate fluctuations. These and other risks are heightened for investments in issuers from countries with less developed capital markets.
The economies and markets of European countries are often closely connected and interdependent, and events in one country in Europe can have an adverse impact on other European countries. The European financial markets have experienced volatility and adverse trends in recent years due to concerns about economic downturns or rising government debt levels in several European countries. These events have adversely affected the exchange rate of the euro and may continue to significantly affect European countries. The occurrence of terrorist incidents throughout Europe also could impact financial markets. In addition, the United Kingdom has voted to withdraw from the European Union. The referendum may introduce significant new uncertainties and instability in the financial markets as the United Kingdom negotiates its exit from the European Union.
When a fund concentrates its investments in issuers located in a single country, it assumes the risk that economic, political and social conditions in that country may have a significant impact on its investment performance.
CREDIT RISK
Credit risk is the risk that an issuer or guarantor of debt instruments or the counterparty to a financial transaction, including derivatives contracts, repurchase agreements or loans of portfolio securities, is unable or unwilling to make timely interest and/or principal payments or to otherwise honor its obligations. BFA and its affiliates manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring
38 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
the financial stability of those counterparties. Financial assets, which potentially expose a fund to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of a fund’s exposure to credit and counterparty risks with respect to those financial assets is approximated by their value recorded in its statement of assets and liabilities.
8. | INCOME TAX INFORMATION |
Each Fund is treated as an entity separate from the Trust’s other funds for federal income tax purposes. It is the policy of each Fund to qualify as a regulated investment company by complying with the provisions applicable to regulated investment companies, as defined under Subchapter M of the Internal Revenue Code of 1986, as amended, and to annually distribute substantially all of its ordinary income and any net capital gains (taking into account any capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income and excise taxes. Accordingly, no provision for federal income taxes is required.
For purposes of U.S. GAAP, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or NAV per share.
The tax character of current year distributions will be determined at the end of the current fiscal year.
As of August 31, 2017, the Funds’ fiscal year-end, the following Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:
iShares ETF | Non- Expiring a | Expiring 2018 | Expiring 2019 | Total | ||||||||||||
MSCI United Kingdom | $ | 136,016,930 | $ | 23,559,917 | $ | 22,514,433 | $ | 182,091,280 | ||||||||
MSCI United Kingdom Small-Cap | 1,235,076 | — | — | 1,235,076 |
a | Must be utilized prior to losses subject to expiration. |
The Funds may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” The Funds may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.
As of February 28, 2018, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives) for U.S. federal income tax purposes were as follows:
iShares ETF | Tax Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||
Currency Hedged MSCI United Kingdom | $ | 16,851,365 | $ | 1,015,513 | $ | (224,367 | ) | $ | 791,146 | |||||||
MSCI United Kingdom | 3,013,937,261 | 87,448,679 | (543,929,752 | ) | (456,481,073 | ) | ||||||||||
MSCI United Kingdom Small-Cap | 30,060,509 | 5,639,462 | (2,841,457 | ) | 2,798,005 |
Management has analyzed tax laws and regulations and their application to the Funds as of February 28, 2018, inclusive of the open tax return years, and does not believe there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.
NOTESTO FINANCIAL STATEMENTS | 39 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
9. | LEGAL PROCEEDINGS |
On June 16, 2016, investors (the “Plaintiffs”) in certain iShares funds (iShares Core S&P Small-Cap ETF, iShares Russell 1000 Growth ETF, iShares Core S&P 500 ETF, iShares Russell Mid-Cap Growth ETF, iShares Russell Mid-Cap ETF, iShares Russell Mid-Cap Value ETF, iShares Select Dividend ETF, iShares Morningstar Mid-Cap ETF, iShares Morningstar Large-Cap ETF, iShares U.S. Aerospace & Defense ETF and iShares U.S. Preferred Stock ETF) filed a putative class action lawsuit against iShares Trust, BlackRock, Inc. and certain of its advisory affiliates, and certain directors/trustees and officers of the Funds (collectively, “Defendants”) in California State Court. The lawsuit alleges the Defendants violated federal securities laws by failing to adequately disclose in the prospectuses issued by the funds noted above the risks of using stop-loss orders in the event of a ‘flash crash’, such as the one that occurred on May 6, 2010. On September 18, 2017, the court issued a Statement of Decision holding that the Plaintiffs lack standing to assert their claims. On October 11, 2017, the court entered final judgment dismissing all of the Plaintiffs’ claims with prejudice. Plaintiffs have appealed the court’s decision.
10. | SUBSEQUENT EVENTS |
Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or disclosure in the financial statements.
40 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Supplemental Information (Unaudited)
iSHARES® TRUST
Section 19(a) Notices
The amounts and sources of distributions reported are estimates and are provided pursuant to regulatory requirements and are not being provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon each Fund’s investment experience during the year and may be subject to changes based on the tax regulations. Shareholders will receive a Form 1099-DIV each calendar year that will inform them how to report these distributions for federal income tax purposes.
Total Cumulative Distributions for the Fiscal Year-to-Date | % Breakdown of the Total Cumulative Distributions for the Fiscal Year-to-Date | |||||||||||||||||||||||||||||||
iShares ETF | Net Investment Income | Net Realized Capital Gains | Return of Capital | Total Per Share | Net Investment Income | Net Realized Capital Gains | Return of Capital | Total Per Share | ||||||||||||||||||||||||
Currency Hedged MSCI United Kingdom | $ | 0.444989 | $ | — | $ | 0.005056 | $ | 0.450045 | 99 | % | — | % | 1 | % | 100 | % | ||||||||||||||||
MSCI United Kingdom | 0.653720 | — | 0.007425 | 0.661145 | 99 | — | 1 | 100 | ||||||||||||||||||||||||
MSCI United Kingdom Small-Cap | 0.597095 | — | 0.066637 | 0.663732 | 90 | — | 10 | 100 |
SUPPLEMENTAL INFORMATION | 41 |
Table of Contents
Electronic Delivery
Shareholders can sign up for email notifications announcing that the shareholder report or prospectus has been posted on the iShares website at www.iShares.com. Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail.
To enroll in electronic delivery:
• | Go to www.icsdelivery.com. |
• | If your brokerage firm is not listed, electronic delivery may not be available. Please contact your broker-dealer or financial advisor. |
Householding
Householding is an option available to certain fund investors. Householding is a method of delivery, based on the preference of the individual investor, in which a single copy of certain shareholder documents can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.
Availability of Quarterly Schedule of Investments
The iShares Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The iShares Funds’ Forms N-Q are available on the SEC’s website and may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The iShares Funds also disclose their complete schedule of portfolio holdings on a daily basis on the iShares website.
Availability of Proxy Voting Policies and Proxy Voting Records
A description of the policies and procedures that the iShares Funds use to determine how to vote proxies relating to portfolio securities and information about how the iShares Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request (1) by calling toll-free 1-800-474-2737; (2) on the iShares website at www.iShares.com; and (3) on the SEC website at www.sec.gov.
42 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
For more information visit www.iShares.com or call 1-800-iShares (1-800-474-2737)
This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus.
Investing involves risk, including possible loss of principal.
The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).
The iShares Funds are not sponsored, endorsed, issued, sold or promoted by MSCI Inc., nor does this company make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the company listed above.
©2018 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.
iS-SAR-813-0218
Table of Contents
FEBRUARY 28, 2018
2018 SEMI-ANNUAL REPORT (UNAUDITED) |
iShares Trust
Ø | iShares Adaptive Currency Hedged MSCI Japan ETF | DEWJ | Cboe BZX |
Ø | iShares Currency Hedged MSCI Australia ETF | HAUD | NYSE Arca |
Ø | iShares Currency Hedged MSCI Canada ETF | HEWC | NYSE Arca |
Ø | iShares Currency Hedged MSCI Japan ETF | HEWJ | NYSE Arca |
Ø | iShares Currency Hedged MSCI Mexico ETF | HEWW | NYSE Arca |
Ø | iShares Currency Hedged MSCI South Korea ETF | HEWY | NYSE Arca |
Ø | iShares Edge MSCI Min Vol Global Currency Hedged ETF | HACV | Cboe BZX |
Table of Contents
5 | ||||
12 | ||||
12 | ||||
13 | ||||
13 | ||||
15 | ||||
17 | ||||
19 | ||||
22 | ||||
24 | ||||
26 | ||||
29 | ||||
39 | ||||
46 | ||||
62 | ||||
63 | ||||
64 | ||||
65 | ||||
65 | ||||
73 | ||||
76 | ||||
80 | ||||
87 | ||||
91 | ||||
96 | ||||
103 | ||||
109 |
Table of Contents
iSHARES® ADAPTIVE CURRENCY HEDGED MSCI JAPAN ETF
Performance as of February 28, 2018
The iShares Adaptive Currency Hedged MSCI Japan ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization Japanese equities while dynamically hedging currency risk for a U.S. dollar based investor, as represented by the MSCI Japan Adaptive Hedge 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 Japan ETF. For the six-month reporting period ended February 28, 2018, the total return for the Fund was 11.30%, net of fees, while the total return for the Index was 12.83%.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||||||||
1 Year | 18.42% | 18.41% | 19.77% | 18.42% | 18.41% | 19.77% | ||||||||||||||||||||||
Since Inception | 9.59% | 9.61% | 10.68% | 21.77% | 21.81% | 24.43% |
The inception date of the Fund was 1/5/16. The first day of secondary market trading was 1/7/16.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 12 for more information.
Shareholder Expenses | ||||||||||||||||||||||||||
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a,b | Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a,b | Annualized Expense Ratio a | ||||||||||||||||||||
$ | 1,000.00 | $ | 1,113.00 | $ | 0.00 | $ | 1,000.00 | $ | 1,024.80 | $ | 0.00 | 0.00% |
a | Annualized expense ratio and expenses paid during the period do not include fees and expenses of the underlying fund in which the Fund invests. |
b | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 12 for more information. |
ALLOCATION BY SECTOR1
As of 2/28/18
Sector | Percentage of Total Investments 2 |
Industrials | 21.36 | % | ||
Consumer Discretionary | 20.47 | |||
Information Technology | 13.03 | |||
Financials | 12.45 | |||
Consumer Staples | 7.54 | |||
Health Care | 7.40 | |||
Materials | 6.36 | |||
Telecommunication Services | 4.87 | |||
Real Estate | 3.88 | |||
Utilities | 1.62 | |||
Energy | 1.02 | |||
|
| |||
TOTAL | 100.00 | % | ||
|
|
TEN LARGEST FUND HOLDINGS1
As of 2/28/18
Security | Percentage of Total Investments 2 |
Toyota Motor Corp. | 4.79 | % | ||
Mitsubishi UFJ Financial Group Inc. | 2.29 | |||
SoftBank Group Corp. | 1.84 | |||
Sony Corp. | 1.73 | |||
Honda Motor Co. Ltd. | 1.66 | |||
Sumitomo Mitsui Financial Group Inc. | 1.57 | |||
Keyence Corp. | 1.56 | |||
Nintendo Co. Ltd. | 1.36 | |||
FANUC Corp. | 1.29 | |||
Mizuho Financial Group Inc. | 1.21 | |||
|
| |||
TOTAL | 19.30 | % | ||
|
|
1 | Table shown is for the iShares MSCI Japan ETF, the underlying fund in which the Fund invests. |
2 | Excludes money market funds. |
FUND PERFORMANCE OVERVIEWS | 5 |
Table of Contents
Fund Performance Overview
iSHARES® CURRENCY HEDGED MSCI AUSTRALIA ETF
Performance as of February 28, 2018
The iShares Currency Hedged MSCI Australia ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization Australian equities while mitigating exposure to fluctuations between the value of the Australian dollar and the U.S. dollar, as represented by the MSCI Australia 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 Australia ETF. For the six-month reporting period ended February 28, 2018, the total return for the Fund was 5.25%, net of fees, while the total return for the Index was 6.60%.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||||||||
1 Year | 6.65% | 6.71% | 7.99% | 6.65% | 6.71% | 7.99% | ||||||||||||||||||||||
Since Inception | 6.20% | 6.25% | 6.85% | 17.43% | 17.59% | 19.34% |
The inception date of the Fund was 6/29/15. The first day of secondary market trading was 7/1/15.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 12 for more information.
Shareholder Expenses | ||||||||||||||||||||||||||
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a,b | Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a,b | Annualized Expense Ratio a | ||||||||||||||||||||
$ | 1,000.00 | $ | 1,052.50 | $ | 0.15 | $ | 1,000.00 | $ | 1,024.60 | $ | 0.15 | 0.03% |
a | Annualized expense ratio and expenses paid during the period do not include fees and expenses of the underlying fund in which the Fund invests. |
b | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 12 for more information. |
ALLOCATION BY SECTOR1
As of 2/28/18
Sector | Percentage of Total Investments 2 |
Financials | 40.99 | % | ||
Materials | 17.85 | |||
Health Care | 8.05 | |||
Real Estate | 8.03 | |||
Consumer Staples | 7.59 | |||
Energy | 5.45 | |||
Industrials | 5.19 | |||
Consumer Discretionary | 2.66 | |||
Utilities | 2.03 | |||
Telecommunication Services | 1.23 | |||
Information Technology | 0.93 | |||
|
| |||
TOTAL | 100.00 | % | ||
|
|
TEN LARGEST FUND HOLDINGS1
As of 2/28/18
Security | Percentage of Total Investments 2 |
Commonwealth Bank of Australia | 10.12 | % | ||
Westpac Banking Corp. | 7.90 | |||
BHP Billiton Ltd. | 7.40 | |||
Australia & New Zealand Banking Group Ltd. | 6.45 | |||
National Australia Bank Ltd. | 6.13 | |||
CSL Ltd. | 5.58 | |||
Wesfarmers Ltd. | 3.54 | |||
Woolworths Group Ltd. | 2.72 | |||
Macquarie Group Ltd. | 2.53 | |||
Rio Tinto Ltd. | 2.53 | |||
|
| |||
TOTAL | 54.90 | % | ||
|
|
1 | Table shown is for the iShares MSCI Australia ETF, the underlying fund in which the Fund invests. |
2 | Excludes money market funds. |
6 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® CURRENCY HEDGED MSCI CANADA ETF
Performance as of February 28, 2018
The iShares Currency Hedged MSCI Canada ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization Canadian equities while mitigating exposure to fluctuations between the value of the Canadian dollar and the U.S. dollar, as represented by the MSCI Canada 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 Canada ETF. For the six-month reporting period ended February 28, 2018, the total return for the Fund was 3.95%, net of fees, while the total return for the Index was 3.65%.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||||||||
1 Year | 3.04% | 2.96% | 3.39% | 3.04% | 2.96% | 3.39% | ||||||||||||||||||||||
Since Inception | 5.16% | 5.13% | 5.37% | 14.39% | 14.29% | 14.99% |
The inception date of the Fund was 6/29/15. The first day of secondary market trading was 7/1/15.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 12 for more information.
Shareholder Expenses | ||||||||||||||||||||||||||
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a,b | Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a,b | Annualized Expense Ratio a | ||||||||||||||||||||
$ | 1,000.00 | $ | 1,039.50 | $ | 0.15 | $ | 1,000.00 | $ | 1,024.60 | $ | 0.15 | 0.03% |
a | Annualized expense ratio and expenses paid during the period do not include fees and expenses of the underlying fund in which the Fund invests. |
b | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 12 for more information. |
ALLOCATION BY SECTOR1
As of 2/28/18
Sector | Percentage of Total Investments 2 |
Financials | 42.90 | % | ||
Energy | 19.82 | |||
Materials | 10.58 | |||
Industrials | 7.96 | |||
Consumer Discretionary | 5.25 | |||
Information Technology | 4.13 | |||
Consumer Staples | 4.09 | |||
Telecommunication Services | 2.24 | |||
Utilities | 1.95 | |||
Real Estate | 0.68 | |||
Health Care | 0.40 | |||
|
| |||
TOTAL | 100.00 | % | ||
|
|
TEN LARGEST FUND HOLDINGS1
As of 2/28/18
Security | Percentage of Total Investments 2 |
Royal Bank of Canada | 8.56 | % | ||
Toronto-Dominion Bank (The) | 7.94 | |||
Bank of Nova Scotia (The) | 5.53 | |||
Canadian National Railway Co. | 4.30 | |||
Suncor Energy Inc. | 4.06 | |||
Enbridge Inc. | 3.92 | |||
Bank of Montreal | 3.67 | |||
Canadian Imperial Bank of Commerce | 2.97 | |||
TransCanada Corp. | 2.81 | |||
Manulife Financial Corp. | 2.80 | |||
|
| |||
TOTAL | 46.56 | % | ||
|
|
1 | Table shown is for the iShares MSCI Canada ETF, the underlying fund in which the Fund invests. |
2 | Excludes money market funds. |
FUND PERFORMANCE OVERVIEWS | 7 |
Table of Contents
Fund Performance Overview
iSHARES® CURRENCY HEDGED MSCI JAPAN ETF
Performance as of February 28, 2018
The iShares Currency Hedged MSCI Japan ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization Japanese equities while mitigating exposure to fluctuations between the value of the Japanese yen and the U.S. dollar, as represented by the MSCI Japan 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 Japan ETF. For the six-month reporting period ended February 28, 2018, the total return for the Fund was 9.82%, net of fees, while the total return for the Index was 11.23%.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||||||||
1 Year | 16.33% | 16.41% | 17.83% | 16.33% | 16.41% | 17.83% | ||||||||||||||||||||||
Since Inception | 10.34% | 10.35% | 10.45% | 49.39% | 49.43% | 50.04% |
The inception date of the Fund was 1/31/14. The first day of secondary market trading was 2/4/14.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 12 for more information.
Shareholder Expenses | ||||||||||||||||||||||||||
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a,b | Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a,b | Annualized Expense Ratio a | ||||||||||||||||||||
$ | 1,000.00 | $ | 1,098.20 | $ | 0.05 | $ | 1,000.00 | $ | 1,024.70 | $ | 0.05 | 0.01% |
a | Annualized expense ratio and expenses paid during the period do not include fees and expenses of the underlying fund in which the Fund invests. |
b | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 12 for more information. |
ALLOCATION BY SECTOR1
As of 2/28/18
Sector | Percentage of Total Investments 2 |
Industrials | 21.36 | % | ||
Consumer Discretionary | 20.47 | |||
Information Technology | 13.03 | |||
Financials | 12.45 | |||
Consumer Staples | 7.54 | |||
Health Care | 7.40 | |||
Materials | 6.36 | |||
Telecommunication Services | 4.87 | |||
Real Estate | 3.88 | |||
Utilities | 1.62 | |||
Energy | 1.02 | |||
|
| |||
TOTAL | 100.00 | % | ||
|
|
TEN LARGEST FUND HOLDINGS1
As of 2/28/18
Security | Percentage of Total Investments 2 |
Toyota Motor Corp. | 4.79 | % | ||
Mitsubishi UFJ Financial Group Inc. | 2.29 | |||
SoftBank Group Corp. | 1.84 | |||
Sony Corp. | 1.73 | |||
Honda Motor Co. Ltd. | 1.66 | |||
Sumitomo Mitsui Financial Group Inc. | 1.57 | |||
Keyence Corp. | 1.56 | |||
Nintendo Co. Ltd. | 1.36 | |||
FANUC Corp. | 1.29 | |||
Mizuho Financial Group Inc. | 1.21 | |||
|
| |||
TOTAL | 19.30 | % | ||
|
|
1 | Table shown is for the iShares MSCI Japan ETF, the underlying fund in which the Fund invests. |
2 | Excludes money market funds. |
8 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® CURRENCY HEDGED MSCI MEXICO ETF
Performance as of February 28, 2018
The iShares Currency Hedged MSCI Mexico ETF (the “Fund”) seeks to track the investment results of an index composed of large-, mid- and small-capitalization Mexican equities while mitigating exposure to fluctuations between the value of the Mexican peso and the U.S. dollar, as represented by the MSCI Mexico IMI 25/50 100% 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 Mexico ETF. For the six-month reporting period ended February 28, 2018, the total return for the Fund was -8.43%, net of fees, while the total return for the Index was -8.37%.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||||||||
1 Year | (1.87)% | (4.42)% | (1.67)% | (1.87)% | (4.42)% | (1.67)% | ||||||||||||||||||||||
Since Inception | (0.04)% | (0.16)% | 0.29% | (0.12)% | (0.43)% | 0.79% |
The inception date of the Fund was 6/29/15. The first day of secondary market trading was 7/1/15.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 12 for more information.
Shareholder Expenses | ||||||||||||||||||||||||||
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a,b | Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a,b | Annualized Expense Ratio a | ||||||||||||||||||||
$ | 1,000.00 | $ | 915.70 | $ | 0.14 | $ | 1,000.00 | $ | 1,024.60 | $ | 0.15 | 0.03% |
a | Annualized expense ratio and expenses paid during the period do not include fees and expenses of the underlying fund in which the Fund invests. |
b | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 12 for more information. |
ALLOCATION BY SECTOR1
As of 2/28/18
Sector | Percentage of Total Investments 2 |
Consumer Staples | 25.84 | % | ||
Telecommunication Services | 17.12 | |||
Financials | 15.95 | |||
Materials | 14.53 | |||
Industrials | 10.96 | |||
Consumer Discretionary | 7.51 | |||
Real Estate | 6.05 | |||
Utilities | 1.43 | |||
Health Care | 0.61 | |||
|
| |||
TOTAL | 100.00 | % | ||
|
|
TEN LARGEST FUND HOLDINGS1
As of 2/28/18
Security | Percentage of Total Investments 2 |
America Movil SAB de CV Series L | 16.09 | % | ||
Fomento Economico Mexicano SAB de CV | 8.98 | |||
Grupo Financiero Banorte SAB de CV Series O | 7.33 | |||
Wal-Mart de Mexico SAB de CV | 5.82 | |||
Grupo Mexico SAB de CV Series B | 5.78 | |||
Grupo Televisa SAB | 4.31 | |||
Cemex SAB de CV CPO | 4.26 | |||
Fibra Uno Administracion SA de CV | 2.49 | |||
Grupo Bimbo SAB de CV Series A | 2.30 | |||
Grupo Financiero Inbursa SAB de CV Series O | 2.22 | |||
|
| |||
TOTAL | 59.58 | % | ||
|
|
1 | Table shown is for the iShares MSCI Mexico ETF, the underlying fund in which the Fund invests. |
2 | Excludes money market funds. |
FUND PERFORMANCE OVERVIEWS | 9 |
Table of Contents
Fund Performance Overview
iSHARES® CURRENCY HEDGED MSCI SOUTH KOREA ETF
Performance as of February 28, 2018
The iShares Currency Hedged MSCI South Korea ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization South Korean equities while mitigating exposure to fluctuations between the value of the South Korean won and the U.S. dollar, as represented by the MSCI Korea 25/50 100% 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 South Korea Capped ETF. For the six-month reporting period ended February 28, 2018, the total return for the Fund was 4.63%, net of fees, while the total return for the Index was 6.44%.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||||||||
1 Year | 21.42% | 20.20% | 23.21% | 21.42% | 20.20% | 23.21% | ||||||||||||||||||||||
Since Inception | 12.36% | 12.01% | 13.16% | 36.51% | 35.39% | 39.10% |
The inception date of the Fund was 6/29/15. The first day of secondary market trading was 7/1/15.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 12 for more information.
Shareholder Expenses | ||||||||||||||||||||||||||
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a,b | Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a,b | Annualized Expense Ratio a | ||||||||||||||||||||
$ | 1,000.00 | $ | 1,046.30 | $ | 0.00 | $ | 1,000.00 | $ | 1,024.80 | $ | 0.00 | 0.00% |
a | Annualized expense ratio and expenses paid during the period do not include fees and expenses of the underlying fund in which the Fund invests. |
b | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 12 for more information. |
ALLOCATION BY SECTOR1
As of 2/28/18
Sector | Percentage of Total Investments 2 |
Information Technology | 36.15 | % | ||
Financials | 14.35 | |||
Consumer Discretionary | 12.05 | |||
Industrials | 10.13 | |||
Materials | 8.95 | |||
Consumer Staples | 6.88 | |||
Health Care | 6.73 | |||
Energy | 2.76 | |||
Utilities | 1.25 | |||
Telecommunication Services | 0.75 | |||
|
| |||
TOTAL | 100.00 | % | ||
|
|
TEN LARGEST FUND HOLDINGS1
As of 2/28/18
Security | Percentage of Total Investments 2 |
Samsung Electronics Co. Ltd. | 22.25 | % | ||
SK Hynix Inc. | 5.17 | |||
Celltrion Inc. | 3.35 | |||
POSCO | 3.12 | |||
KB Financial Group Inc. | 2.97 | |||
Hyundai Motor Co. | 2.91 | |||
NAVER Corp. | 2.63 | |||
Shinhan Financial Group Co. Ltd. | 2.38 | |||
LG Chem Ltd. | 2.07 | |||
Hyundai Mobis Co. Ltd. | 1.84 | |||
|
| |||
TOTAL | 48.69 | % | ||
|
|
1 | Table shown is for the iShares MSCI South Korea ETF, the underlying fund in which the Fund invests |
2 | Excludes money market funds. |
10 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® EDGE MSCI MIN VOL GLOBAL CURRENCY HEDGED ETF
Performance as of February 28, 2018
The iShares Edge MSCI Min Vol Global Currency Hedged ETF (the “Fund”) seeks to track the investment results of an index composed of developed and emerging market equities that, in the aggregate, have lower volatility characteristics relative to the broader developed and emerging equity markets while mitigating exposure to fluctuations between the value of the component currencies and the U.S. dollar, as represented by the MSCI ACWI Minimum Volatility (USD) 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 Edge MSCI Min Vol Global ETF. For the six-month reporting period ended February 28, 2018, the total return for the Fund was 3.17%, net of fees, while the total return for the Index was 3.41%.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||||||||
1 Year | 9.85% | 9.51% | 9.61% | 9.85% | 9.51% | 9.61% | ||||||||||||||||||||||
Since Inception | 9.03% | 8.91% | 8.97% | 22.38% | 22.08% | 22.25% |
The inception date of the Fund was 10/29/15. The first day of secondary market trading was 11/2/15.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 12 for more information.
Shareholder Expenses | ||||||||||||||||||||||||||
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a,b | Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a,b | Annualized Expense Ratio a | ||||||||||||||||||||
$ | 1,000.00 | $ | 1,031.70 | $ | 0.15 | $ | 1,000.00 | $ | 1,024.60 | $ | 0.15 | 0.03% |
a | Annualized expense ratio and expenses paid during the period do not include fees and expenses of the underlying fund in which the Fund invests. |
b | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 12 for more information. |
ALLOCATION BY SECTOR1
As of 2/28/18
Sector | Percentage of Total Investments 2 |
Health Care | 15.37 | % | ||
Information Technology | 13.95 | |||
Financials | 13.72 | |||
Consumer Staples | 13.40 | |||
Industrials | 11.93 | |||
Consumer Discretionary | 8.03 | |||
Utilities | 7.36 | |||
Telecommunication Services | 7.30 | |||
Real Estate | 4.51 | |||
Materials | 3.00 | |||
Energy | 1.43 | |||
|
| |||
TOTAL | 100.00 | % | ||
|
|
TEN LARGEST COUNTRIES1
As of 2/28/18
Country | Percentage of Total Investments 2 |
United States | 56.49 | % | ||
Japan | 13.34 | |||
Switzerland | 4.88 | |||
Taiwan | 4.28 | |||
China | 4.22 | |||
Hong Kong | 3.49 | |||
Canada | 2.94 | |||
Singapore | 1.32 | |||
Denmark | 1.00 | |||
Malaysia | 0.96 | |||
|
| |||
TOTAL | 92.92 | % | ||
|
|
1 | Table shown is for the iShares Edge MSCI Min Vol Global ETF, the underlying fund in which the Fund invests. |
2 | Excludes money market funds. |
FUND PERFORMANCE OVERVIEWS | 11 |
Table of Contents
Past performance is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at www.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. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer 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. Certain funds may have a NAV which is determined prior to the opening of regular trading on its listed exchange and their market returns are calculated using the midpoint of the bid/ask spread as of the opening of regular trading on the exchange. 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.
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested on September 1, 2017 and held through February 28, 2018, is intended to help you understand your ongoing costs (in dollars and cents) of investing in a Fund and to compare these costs with the ongoing costs of investing in other funds.
Actual Expenses — The table provides information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. To estimate the expenses that you paid on your account over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number corresponding to your Fund under the heading entitled “Expenses Paid During Period.”
Hypothetical Example for Comparison Purposes — The table also provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions paid on purchases and sales of fund shares. Therefore, the hypothetical examples are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
12 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® ADAPTIVE CURRENCY HEDGED MSCI JAPAN ETF
February 28, 2018
Security | Shares | Value | ||||||
INVESTMENT COMPANIES — 100.09% |
| |||||||
EXCHANGE-TRADED FUNDS — 100.09% |
| |||||||
iShares MSCI Japan ETFa,b | 72,153 | $ | 4,406,384 | |||||
|
| |||||||
4,406,384 | ||||||||
|
| |||||||
TOTAL INVESTMENT COMPANIES |
| |||||||
(Cost: $3,552,101) |
| 4,406,384 | ||||||
SHORT-TERM INVESTMENTS — 43.70% |
| |||||||
MONEY MARKET FUNDS — 43.70% |
| |||||||
BlackRock Cash Funds: Institutional, |
| |||||||
1.58%a,c,d | 1,921,308 | 1,921,500 | ||||||
BlackRock Cash Funds: Treasury, |
| |||||||
1.32%a,c | 2,285 | 2,285 | ||||||
|
| |||||||
1,923,785 | ||||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||||
(Cost: $1,923,785) |
| 1,923,785 | ||||||
|
|
Value | ||||||||
TOTAL INVESTMENTS |
| |||||||
(Cost: $5,475,886) | $ | 6,330,169 | ||||||
Other Assets, Less Liabilities — (43.79)% |
| (1,927,946 | ) | |||||
|
| |||||||
NET ASSETS — 100.00% |
| $ | 4,402,223 | |||||
|
|
a | Affiliate of the Fund. |
b | All or a portion of this security is on loan. |
c | Annualized 7-day yield as of period end. |
d | All or a portion of this security was purchased with cash collateral received from loaned securities. |
Affiliates (Note 2)
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows:
Affiliated issuer | Shares held at 08/31/17 | Shares purchased | Shares sold | Shares held at 02/28/18 | Value at 02/28/18 | Income | Net realized gain (loss) a | Change in unrealized appreciation (depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | — | 1,921,308 | b | — | 1,921,308 | $ | 1,921,500 | $ | 527 | c | $ | (66 | ) | $ | — | |||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 2,838 | — | (553 | )b | 2,285 | 2,285 | 13 | — | — | |||||||||||||||||||||||
iShares MSCI Japan ETF | 97,270 | 2,354 | (27,471 | ) | 72,153 | 4,406,384 | 29,464 | 220,335 | 284,601 | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 6,330,169 | $ | 30,004 | $ | 220,269 | $ | 284,601 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
a | Includes realized capital gain distributions from an affiliated fund, if any. |
b | Net of purchases and sales. |
c | Includes the Fund’s portion of securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. |
SCHEDULESOF INVESTMENTS | 13 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® ADAPTIVE CURRENCY HEDGED MSCI JAPAN ETF
February 28, 2018
Forward Currency Contracts (Note 5)
Forward currency contracts outstanding as of February 28, 2018 were as follows:
Currency purchased | Currency sold | Counterparty | Settlement date | Unrealized appreciation (depreciation) | ||||||||||||||||||||
JPY | 750,896,000 | USD | 6,980,156 | MS | 03/02/2018 | $ | 57,625 | |||||||||||||||||
|
| |||||||||||||||||||||||
57,625 | ||||||||||||||||||||||||
|
| |||||||||||||||||||||||
USD | 6,976,422 | JPY | 750,896,000 | MS | 03/02/2018 | (61,358 | ) | |||||||||||||||||
USD | 2,234,021 | JPY | 238,467,000 | MS | 04/04/2018 | (6,435 | ) | |||||||||||||||||
|
| |||||||||||||||||||||||
(67,793 | ) | |||||||||||||||||||||||
|
| |||||||||||||||||||||||
Net unrealized depreciation | $ | (10,168 | ) | |||||||||||||||||||||
|
| |||||||||||||||||||||||
Counterparty:
MS — Morgan Stanley and Co. International PLC
Currency abbreviations:
JPY — Japanese Yen
USD — United States Dollar
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Investment companies | $ | 4,406,384 | $ | — | $ | — | $ | 4,406,384 | ||||||||
Money market funds | 1,923,785 | — | — | 1,923,785 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 6,330,169 | $ | — | $ | — | $ | 6,330,169 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative financial instrumentsa | ||||||||||||||||
Assets | ||||||||||||||||
Forward currency contracts | $ | — | $ | 57,625 | $ | — | $ | 57,625 | ||||||||
Liabilities | ||||||||||||||||
Forward currency contracts | — | (67,793 | ) | — | (67,793 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | — | $ | (10,168 | ) | $ | — | $ | (10,168 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
a | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
14 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® CURRENCY HEDGED MSCI AUSTRALIA ETF
February 28, 2018
Security | Shares | Value | ||||||
INVESTMENT COMPANIES — 99.14% |
| |||||||
EXCHANGE-TRADED FUNDS — 99.14% |
| |||||||
iShares MSCI Australia ETFa | 51,626 | $ | 1,178,105 | |||||
|
| |||||||
1,178,105 | ||||||||
|
| |||||||
TOTAL INVESTMENT COMPANIES |
| |||||||
(Cost: $1,054,833) |
| 1,178,105 | ||||||
SHORT-TERM INVESTMENTS — 0.02% |
| |||||||
MONEY MARKET FUNDS — 0.02% |
| |||||||
BlackRock Cash Funds: Treasury, |
| |||||||
1.32%a,b | 240 | 240 | ||||||
|
| |||||||
240 | ||||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||||
(Cost: $240) |
| 240 | ||||||
|
| |||||||
TOTAL INVESTMENTS |
| |||||||
(Cost: $1,055,073) | 1,178,345 | |||||||
Other Assets, Less Liabilities — 0.84% |
| 9,995 | ||||||
|
| |||||||
NET ASSETS — 100.00% |
| $ | 1,188,340 | |||||
|
|
a | Affiliate of the Fund. |
b | Annualized 7-day yield as of period end. |
Affiliates (Note 2)
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows:
Affiliated issuer | Shares held at 08/31/17 | Shares purchased | Shares sold | Shares held at 02/28/18 | Value at 02/28/18 | Income | Net realized gain (loss) a | Change in unrealized appreciation (depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 631 | — | (391 | )b | 240 | $ | 240 | $ | 4 | $ | — | $ | — | |||||||||||||||||||
iShares MSCI Australia ETF | 50,995 | 5,262 | (4,631 | ) | 51,626 | 1,178,105 | 29,829 | 3,863 | 8,133 | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 1,178,345 | $ | 29,833 | $ | 3,863 | $ | 8,133 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
a | Includes realized capital gain distributions from an affiliated fund, if any. |
b | Net of purchases and sales. |
SCHEDULESOF INVESTMENTS | 15 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® CURRENCY HEDGED MSCI AUSTRALIA ETF
February 28, 2018
Forward Currency Contracts (Note 5)
Forward currency contracts outstanding as of February 28, 2018 were as follows:
Currency purchased | Currency sold | Counterparty | Settlement date | Unrealized appreciation (depreciation) | ||||||||||||||||||||
USD | 2,460,689 | AUD | 3,100,000 | MS | 03/02/2018 | $ | 52,919 | |||||||||||||||||
USD | 1,209,473 | AUD | 1,546,000 | MS | 04/05/2018 | 8,640 | ||||||||||||||||||
|
| |||||||||||||||||||||||
61,559 | ||||||||||||||||||||||||
|
| |||||||||||||||||||||||
AUD | 3,100,000 | USD | 2,422,860 | MS | 03/02/2018 | (15,089 | ) | |||||||||||||||||
AUD | 18,000 | USD | 14,016 | MS | 04/05/2018 | (35 | ) | |||||||||||||||||
|
| |||||||||||||||||||||||
(15,124 | ) | |||||||||||||||||||||||
|
| |||||||||||||||||||||||
Net unrealized appreciation | $ | 46,435 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||
Counterparty:
MS — Morgan Stanley and Co. International PLC
Currency abbreviations:
AUD — Australian Dollar
USD — United States Dollar
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Investment companies | $ | 1,178,105 | $ | — | $ | — | $ | 1,178,105 | ||||||||
Money market funds | 240 | — | — | 240 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 1,178,345 | $ | — | $ | — | $ | 1,178,345 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative financial instrumentsa | ||||||||||||||||
Assets | ||||||||||||||||
Forward currency contracts | $ | — | $ | 61,559 | $ | — | $ | 61,559 | ||||||||
Liabilities | ||||||||||||||||
Forward currency contracts | — | (15,124 | ) | — | (15,124 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | — | $ | 46,435 | $ | — | $ | 46,435 | ||||||||
|
|
|
|
|
|
|
| |||||||||
a | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
16 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® CURRENCY HEDGED MSCI CANADA ETF
February 28, 2018
Security | Shares | Value | ||||||
INVESTMENT COMPANIES — 99.16% |
| |||||||
EXCHANGE-TRADED FUNDS — 99.16% |
| |||||||
iShares MSCI Canada ETFa | 226,482 | $ | 6,293,935 | |||||
|
| |||||||
6,293,935 | ||||||||
|
| |||||||
TOTAL INVESTMENT COMPANIES |
| |||||||
(Cost: $6,266,080) |
| 6,293,935 | ||||||
SHORT-TERM INVESTMENTS — 0.05% |
| |||||||
MONEY MARKET FUNDS — 0.05% |
| |||||||
BlackRock Cash Funds: Treasury, | ||||||||
1.32%a,b | 3,138 | 3,138 | ||||||
|
| |||||||
3,138 | ||||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||||
(Cost: $3,138) | 3,138 | |||||||
|
| |||||||
TOTAL INVESTMENTS |
| |||||||
(Cost: $6,269,218) | 6,297,073 | |||||||
Other Assets, Less Liabilities — 0.79% |
| 50,403 | ||||||
|
| |||||||
NET ASSETS — 100.00% |
| $ | 6,347,476 | |||||
|
|
a | Affiliate of the Fund. |
b | Annualized 7-day yield as of period end. |
Affiliates (Note 2)
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows:
Affiliated issuer | Shares held at 08/31/17 | Shares purchased | Shares sold | Shares held at 02/28/18 | Value at 02/28/18 | Income | Net realized gain (loss) a | Change in unrealized appreciation (depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | — | — | — | b | — | $ | — | $ | 164 | c | $ | (2 | ) | $ | — | |||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 1,161 | 1,977 | b | — | 3,138 | 3,138 | 16 | — | — | |||||||||||||||||||||||
iShares MSCI Canada ETF | 89,118 | 147,789 | (10,425 | ) | 226,482 | 6,293,935 | 67,213 | 5,081 | (135,524 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 6,297,073 | $ | 67,393 | $ | 5,079 | $ | (135,524 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
a | Includes realized capital gain distributions from an affiliated fund, if any. |
b | Net of purchases and sales. |
c | Includes the Fund’s portion of securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. |
SCHEDULESOF INVESTMENTS | 17 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® CURRENCY HEDGED MSCI CANADA ETF
February 28, 2018
Forward Currency Contracts (Note 5)
Forward currency contracts outstanding as of February 28, 2018 were as follows:
Currency purchased | Currency sold | Counterparty | Settlement date | Unrealized appreciation (depreciation) | ||||||||||||||||||||
USD | 6,694,457 | CAD | 8,271,000 | MS | 03/02/2018 | $ | 248,773 | |||||||||||||||||
USD | 6,460,427 | CAD | 8,227,000 | MS | 04/03/2018 | 44,895 | ||||||||||||||||||
|
| |||||||||||||||||||||||
293,668 | ||||||||||||||||||||||||
|
| |||||||||||||||||||||||
CAD | 8,271,000 | USD | 6,499,517 | MS | 03/02/2018 | (53,833 | ) | |||||||||||||||||
CAD | 45,000 | USD | 35,123 | MS | 04/03/2018 | (31 | ) | |||||||||||||||||
|
| |||||||||||||||||||||||
(53,864 | ) | |||||||||||||||||||||||
|
| |||||||||||||||||||||||
Net unrealized appreciation | $ | 239,804 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||
Counterparty:
MS — Morgan Stanley and Co. International PLC
Currency abbreviations:
CAD — Canadian Dollar
USD — United States Dollar
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Investment companies | $ | 6,293,935 | $ | — | $ | — | $ | 6,293,935 | ||||||||
Money market funds | 3,138 | — | — | 3,138 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 6,297,073 | $ | — | $ | — | $ | 6,297,073 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative financial instrumentsa | ||||||||||||||||
Assets | ||||||||||||||||
Forward currency contracts | $ | — | $ | 293,668 | $ | — | $ | 293,668 | ||||||||
Liabilities | ||||||||||||||||
Forward currency contracts | — | (53,864 | ) | — | (53,864 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | — | $ | 239,804 | $ | — | $ | 239,804 | ||||||||
|
|
|
|
|
|
|
| |||||||||
a | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
18 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® CURRENCY HEDGED MSCI JAPAN ETF
February 28, 2018
Security | Shares | Value | ||||||
INVESTMENT COMPANIES — 100.41% |
| |||||||
EXCHANGE-TRADED FUNDS — 100.41% |
| |||||||
iShares MSCI Japan ETFa | 17,856,572 | $ | 1,090,500,852 | |||||
|
| |||||||
1,090,500,852 | ||||||||
|
| |||||||
TOTAL INVESTMENT COMPANIES |
| |||||||
(Cost: $963,095,004) | 1,090,500,852 | |||||||
TOTAL INVESTMENTS |
| |||||||
(Cost: $963,095,004) | 1,090,500,852 | |||||||
Other Assets, Less Liabilities — (0.41)% |
| (4,437,208 | ) | |||||
|
| |||||||
NET ASSETS — 100.00% |
| $ | 1,086,063,644 | |||||
|
|
a | Affiliate of the Fund. |
Affiliates (Note 2)
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows:
Affiliated issuer | Shares held at 08/31/17 | Shares purchased | Shares sold | Shares held at 02/28/18 | Value at 02/28/18 | Income | Net realized gain (loss) a | Change in unrealized appreciation (depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | — | — | b | — | — | $ | — | $ | 5,181 | $ | — | $ | — | |||||||||||||||||||
iShares MSCI Japan ETF | 21,948,803 | 6,025,727 | (10,117,958 | ) | 17,856,572 | 1,090,500,852 | 7,505,576 | 69,559,000 | 62,909,255 | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 1,090,500,852 | $ | 7,510,757 | $ | 69,559,000 | $ | 62,909,255 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
a | Includes realized capital gain distributions from an affiliated fund, if any. |
b | Net of purchases and sales. |
SCHEDULESOF INVESTMENTS | 19 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® CURRENCY HEDGED MSCI JAPAN ETF
February 28, 2018
Forward Currency Contracts (Note 5)
Forward currency contracts outstanding as of February 28, 2018 were as follows:
Currency purchased | Currency sold | Counterparty | Settlement date | Unrealized appreciation (depreciation) | ||||||||||||||||||||
JPY | 111,329,364,804 | USD | 1,039,261,100 | BNP | 03/02/2018 | $ | 4,174,532 | |||||||||||||||||
JPY | 343,940,000 | USD | 3,166,496 | BOA | 03/02/2018 | 57,086 | ||||||||||||||||||
JPY | 13,069,351,196 | USD | 122,481,151 | CITI | �� | 03/02/2018 | 11,479 | |||||||||||||||||
JPY | 13,247,927,196 | USD | 123,551,382 | CITI | 03/02/2018 | 614,954 | ||||||||||||||||||
JPY | 1,413,658,000 | USD | 12,954,436 | MS | 03/02/2018 | 295,088 | ||||||||||||||||||
JPY | 25,818,000 | USD | 236,413 | SSB | 03/02/2018 | 5,567 | ||||||||||||||||||
JPY | 2,227,422,000 | USD | 20,469,060 | UBS | 03/02/2018 | 407,476 | ||||||||||||||||||
USD | 4,964,467 | JPY | 527,549,000 | NAB | 03/02/2018 | 20,008 | ||||||||||||||||||
USD | 8,230,758 | JPY | 878,082,000 | UBS | 03/02/2018 | 926 | ||||||||||||||||||
JPY | 5,154,680,000 | USD | 48,425,669 | JPM | 04/04/2018 | 3,808 | ||||||||||||||||||
JPY | 1,014,964,000 | USD | 9,532,273 | NSI | 04/04/2018 | 3,562 | ||||||||||||||||||
|
| |||||||||||||||||||||||
5,594,486 | ||||||||||||||||||||||||
|
| |||||||||||||||||||||||
JPY | 35,941,000 | USD | 337,535 | BOA | 03/02/2018 | (677 | ) | |||||||||||||||||
USD | 150,492 | JPY | 16,367,000 | BNP | 03/02/2018 | (2,908 | ) | |||||||||||||||||
USD | 3,217,438 | JPY | 346,566,000 | BOA | 03/02/2018 | (30,756 | ) | |||||||||||||||||
USD | 242,847,251 | JPY | 26,138,702,392 | CITI | 03/02/2018 | (2,138,009 | ) | |||||||||||||||||
USD | 990,840,063 | JPY | 107,466,017,804 | RBS | 03/02/2018 | (16,386,310 | ) | |||||||||||||||||
USD | 30,104,030 | JPY | 3,239,247,000 | SSB | 03/02/2018 | (255,846 | ) | |||||||||||||||||
USD | 28,181,087 | JPY | 3,080,891,000 | UBS | 03/02/2018 | (694,596 | ) | |||||||||||||||||
USD | 1,039,753,742 | JPY | 111,112,763,804 | BNP | 04/04/2018 | (4,177,797 | ) | |||||||||||||||||
USD | 122,172,014 | JPY | 13,069,351,196 | CITI | 04/04/2018 | (617,731 | ) | |||||||||||||||||
|
| |||||||||||||||||||||||
(24,304,630 | ) | |||||||||||||||||||||||
|
| |||||||||||||||||||||||
Net unrealized depreciation | $ | (18,710,144 | ) | |||||||||||||||||||||
|
| |||||||||||||||||||||||
Counterparties:
BNP — BNP Paribas SA
BOA — Bank of America N.A.
CITI — Citibank N.A. London
JPM — JPMorgan Chase Bank N.A.
MS — Morgan Stanley and Co. International PLC
NAB — National Australia Bank Limited
NSI — Nomura Securities International Inc.
RBS — Royal Bank of Scotland
SSB — State Street Bank London
UBS — UBS AG London
Currency abbreviations:
JPY — Japanese Yen
USD — United States Dollar
20 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® CURRENCY HEDGED MSCI JAPAN ETF
February 28, 2018
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Investment companies | $ | 1,090,500,852 | $ | — | $ | — | $ | 1,090,500,852 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 1,090,500,852 | $ | — | $ | — | $ | 1,090,500,852 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative financial instrumentsa | ||||||||||||||||
Assets | ||||||||||||||||
Forward currency contracts | $ | — | $ | 5,594,486 | $ | — | $ | 5,594,486 | ||||||||
Liabilities | ||||||||||||||||
Forward currency contracts | — | (24,304,630 | ) | — | (24,304,630 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | — | $ | (18,710,144 | ) | $ | — | $ | (18,710,144 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
a | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
SCHEDULESOF INVESTMENTS | 21 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® CURRENCY HEDGED MSCI MEXICO ETF
February 28, 2018
Security | Shares | Value | ||||||
INVESTMENT COMPANIES — 99.30% |
| |||||||
EXCHANGE-TRADED FUNDS — 99.30% |
| |||||||
iShares MSCI Mexico ETFa | 38,807 | $ | 1,936,857 | |||||
|
| |||||||
1,936,857 | ||||||||
|
| |||||||
TOTAL INVESTMENT COMPANIES | ||||||||
(Cost: $1,867,698) | 1,936,857 | |||||||
SHORT-TERM INVESTMENTS — 0.03% |
| |||||||
MONEY MARKET FUNDS — 0.03% | ||||||||
BlackRock Cash Funds: Treasury, |
| |||||||
1.32%a,b | 664 | 664 | ||||||
|
| |||||||
664 | ||||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||||
(Cost: $664) |
| 664 | ||||||
|
| |||||||
TOTAL INVESTMENTS |
| |||||||
(Cost: $1,868,362) |
| 1,937,521 | ||||||
Other Assets, Less Liabilities — 0.67% |
| 13,098 | ||||||
|
| |||||||
NET ASSETS — 100.00% |
| $ | 1,950,619 | |||||
|
|
a | Affiliate of the Fund. |
b | Annualized 7-day yield as of period end. |
Affiliates (Note 2)
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows:
Affiliated issuer | Shares held at 08/31/17 | Shares purchased | Shares sold | Shares held at 02/28/18 | Value at 02/28/18 | Income | Net realized gain (loss) a | Change in unrealized appreciation (depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | — | — | — | b | — | $ | — | $ | 3,965 | c | $ | (80 | ) | $ | — | |||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 1,306 | — | (642 | )b | 664 | 664 | 4 | — | — | |||||||||||||||||||||||
iShares MSCI Mexico ETF | 57,159 | 5,040 | (23,392 | ) | 38,807 | 1,936,857 | 19,827 | 124,268 | (407,765 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 1,937,521 | $ | 23,796 | $ | 124,188 | $ | (407,765 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
a | Includes realized capital gain distributions from an affiliated fund, if any. |
b | Net of purchases and sales. |
c | Includes the Fund’s portion of securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. |
22 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® CURRENCY HEDGED MSCI MEXICO ETF
February 28, 2018
Forward Currency Contracts (Note 5)
Forward currency contracts outstanding as of February 28, 2018 were as follows:
Currency purchased | Currency sold | Counterparty | Settlement date | Unrealized appreciation (depreciation) | ||||||||||||||||||||
MXN | 39,861,000 | USD | 2,112,737 | MS | 03/02/2018 | $ | 1,833 | |||||||||||||||||
USD | 2,122,967 | MXN | 39,861,000 | MS | 03/02/2018 | 8,398 | ||||||||||||||||||
MXN | 782,000 | USD | 41,228 | MS | 04/04/2018 | 34 | ||||||||||||||||||
USD | 2,039,601 | MXN | 38,409,000 | MS | 04/04/2018 | 12,977 | ||||||||||||||||||
|
| |||||||||||||||||||||||
23,242 | ||||||||||||||||||||||||
|
| |||||||||||||||||||||||
MXN | 39,861,000 | USD | 2,128,335 | MS | 03/02/2018 | (13,767 | ) | |||||||||||||||||
USD | 2,112,737 | MXN | 39,861,000 | MS | 03/02/2018 | (1,832 | ) | |||||||||||||||||
MXN | 546,000 | USD | 28,903 | MS | 04/04/2018 | (94 | ) | |||||||||||||||||
|
| |||||||||||||||||||||||
(15,693 | ) | |||||||||||||||||||||||
|
| |||||||||||||||||||||||
Net unrealized appreciation | $ | 7,549 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||
Counterparty:
MS — Morgan Stanley and Co. International PLC
Currency abbreviations:
MXN — Mexican Peso
USD — United States Dollar
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Investment companies | $ | 1,936,857 | $ | — | $ | — | $ | 1,936,857 | ||||||||
Money market funds | 664 | — | — | 664 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 1,937,521 | $ | — | $ | — | $ | 1,937,521 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative financial instrumentsa | ||||||||||||||||
Assets | ||||||||||||||||
Forward currency contracts | $ | — | $ | 23,242 | $ | — | $ | 23,242 | ||||||||
Liabilities | ||||||||||||||||
Forward currency contracts | — | (15,693 | ) | — | (15,693 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | — | $ | 7,549 | $ | — | $ | 7,549 | ||||||||
|
|
|
|
|
|
|
| |||||||||
a | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
SCHEDULESOF INVESTMENTS | 23 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® CURRENCY HEDGED MSCI SOUTH KOREA ETF
February 28, 2018
Security | Shares | Value | ||||||
INVESTMENT COMPANIES — 99.20% |
| |||||||
EXCHANGE-TRADED FUNDS — 99.20% |
| |||||||
iShares MSCI South Korea ETFa | 20,546 | $ | 1,481,161 | |||||
|
| |||||||
1,481,161 | ||||||||
|
| |||||||
TOTAL INVESTMENT COMPANIES | ||||||||
(Cost: $1,187,012) | 1,481,161 | |||||||
SHORT-TERM INVESTMENTS — 0.05% |
| |||||||
MONEY MARKET FUNDS — 0.05% | ||||||||
BlackRock Cash Funds: Treasury, |
| |||||||
1.32%a,b | 766 | 766 | ||||||
|
| |||||||
766 | ||||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||||
(Cost: $766) |
| 766 | ||||||
|
| |||||||
TOTAL INVESTMENTS |
| |||||||
(Cost: $1,187,778) |
| 1,481,927 | ||||||
Other Assets, Less Liabilities — 0.75% |
| 11,148 | ||||||
|
| |||||||
NET ASSETS — 100.00% |
| $ | 1,493,075 | |||||
|
|
a | Affiliate of the Fund. |
b | Annualized 7-day yield as of period end. |
Affiliates (Note 2)
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows:
Affiliated issuer | Shares held at 08/31/17 | Shares purchased | Shares sold | Shares held at 02/28/18 | Value at 02/28/18 | Income | Net realized gain (loss) a | Change in unrealized appreciation (depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 812 | — | (46 | )b | 766 | $ | 766 | $ | 6 | $ | — | $ | — | |||||||||||||||||||
iShares MSCI South Korea ETF | 21,414 | 1,148 | (2,016 | ) | 20,546 | 1,481,161 | 44,714 | 19,175 | 64,050 | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 1,481,927 | $ | 44,720 | $ | 19,175 | $ | 64,050 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
a | Includes realized capital gain distributions from an affiliated fund, if any. |
b | Net of purchases and sales. |
24 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® CURRENCY HEDGED MSCI SOUTH KOREA ETF
February 28, 2018
Forward Currency Contracts (Note 5)
Forward currency contracts outstanding as of February 28, 2018 were as follows:
Currency purchased | Currency sold | Counterparty | Settlement date | Unrealized appreciation (depreciation) | ||||||||||||||||||||
USD | 1,535,705 | KRW | 1,641,423,000 | JPM | 03/05/2018 | $ | 19,938 | |||||||||||||||||
USD | 1,660,560 | KRW | 1,795,591,000 | MS | 03/05/2018 | 2,428 | ||||||||||||||||||
USD | 1,577,861 | KRW | 1,699,113,000 | MS | 04/04/2018 | 10,800 | ||||||||||||||||||
|
| |||||||||||||||||||||||
33,166 | ||||||||||||||||||||||||
|
| |||||||||||||||||||||||
KRW | 1,641,423,000 | USD | 1,517,167 | JPM | 03/05/2018 | (1,401 | ) | |||||||||||||||||
KRW | 1,795,591,000 | USD | 1,667,366 | MS | 03/05/2018 | (9,235 | ) | |||||||||||||||||
KRW | 81,461,000 | USD | 75,266 | MS | 04/04/2018 | (136 | ) | |||||||||||||||||
|
| |||||||||||||||||||||||
(10,772 | ) | |||||||||||||||||||||||
|
| |||||||||||||||||||||||
Net unrealized appreciation | $ | 22,394 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||
Counterparties:
JPM — JPMorgan Chase Bank N.A.
MS — Morgan Stanley and Co. International PLC
Currency abbreviations:
KRW — South Korean Won
USD — United States Dollar
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Investment companies | $ | 1,481,161 | $ | — | $ | — | $ | 1,481,161 | ||||||||
Money market funds | 766 | — | — | 766 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 1,481,927 | $ | — | $ | — | $ | 1,481,927 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative financial instrumentsa | ||||||||||||||||
Assets | ||||||||||||||||
Forward currency contracts | $ | — | $ | 33,166 | $ | — | $ | 33,166 | ||||||||
Liabilities | ||||||||||||||||
Forward currency contracts | — | (10,772 | ) | — | (10,772 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | — | $ | 22,394 | $ | — | $ | 22,394 | ||||||||
|
|
|
|
|
|
|
| |||||||||
a | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
SCHEDULESOF INVESTMENTS | 25 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® EDGE MSCI MIN VOL GLOBAL CURRENCY HEDGED ETF
February 28, 2018
Security | Shares | Value | ||||||
INVESTMENT COMPANIES — 99.90% |
| |||||||
EXCHANGE-TRADED FUNDS — 99.90% |
| |||||||
iShares Edge MSCI Min Vol Global ETFa | 34,597 | $ | 2,886,774 | |||||
|
| |||||||
2,886,774 | ||||||||
|
| |||||||
TOTAL INVESTMENT COMPANIES |
| |||||||
(Cost: $2,543,872) |
| 2,886,774 | ||||||
SHORT-TERM INVESTMENTS — 0.04% |
| |||||||
MONEY MARKET FUNDS — 0.04% |
| |||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | ||||||||
1.32%a,b | 1,273 | 1,273 | ||||||
|
| |||||||
1,273 | ||||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||||
(Cost: $1,273) |
| 1,273 | ||||||
|
| |||||||
TOTAL INVESTMENTS |
| |||||||
(Cost: $2,545,145) |
| 2,888,047 | ||||||
Other Assets, Less Liabilities — 0.06% |
| 1,677 | ||||||
|
| |||||||
NET ASSETS — 100.00% |
| $ | 2,889,724 | |||||
|
|
a | Affiliate of the Fund. |
b | Annualized 7-day yield as of period end. |
Affiliates (Note 2)
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows:
Affiliated issuer | Shares held at 08/31/17 | Shares purchased | Shares sold | Shares held at 02/28/18 | Value at 02/28/18 | Income | Net realized gain (loss) a | Change in unrealized appreciation (depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 1,405 | — | (132 | )b | 1,273 | $ | 1,273 | $ | 8 | $ | — | $ | — | |||||||||||||||||||
iShares Edge MSCI Min Vol Global ETF | 34,828 | 651 | (882 | ) | 34,597 | 2,886,774 | 30,312 | 3,707 | 74,191 | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 2,888,047 | $ | 30,320 | $ | 3,707 | $ | 74,191 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
a | Includes realized capital gain distributions from an affiliated fund, if any. |
b | Net of purchases and sales. |
26 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® EDGE MSCI MIN VOL GLOBAL CURRENCY HEDGED ETF
February 28, 2018
Forward Currency Contracts (Note 5)
Forward currency contracts outstanding as of February 28, 2018 were as follows:
Currency purchased | Currency sold | Counterparty | Settlement date | Unrealized appreciation (depreciation) | ||||||||||||||||||||
CLP | 70,000 | USD | 116 | MS | 03/05/2018 | $ | 2 | |||||||||||||||||
HKD | 1,661,000 | USD | 212,243 | MS | 03/05/2018 | 21 | ||||||||||||||||||
JPY | 42,694,000 | USD | 398,131 | MS | 03/05/2018 | 2,081 | ||||||||||||||||||
USD | 97,337 | CAD | 120,000 | MS | 03/05/2018 | 3,816 | ||||||||||||||||||
USD | 152,235 | CHF | 142,000 | MS | 03/05/2018 | 1,842 | ||||||||||||||||||
USD | 27,361 | DKK | 163,704 | MS | 03/05/2018 | 534 | ||||||||||||||||||
USD | 47,248 | EUR | 38,000 | MS | 03/05/2018 | 879 | ||||||||||||||||||
USD | 29,680 | GBP | 21,000 | MS | 03/05/2018 | 767 | ||||||||||||||||||
USD | 213,733 | HKD | 1,670,000 | MS | 03/05/2018 | 318 | ||||||||||||||||||
USD | 9,957 | ILS | 34,000 | MS | 03/05/2018 | 181 | ||||||||||||||||||
USD | 46,333 | INR | 2,990,817 | MS | 03/05/2018 | 481 | ||||||||||||||||||
USD | 49,966 | KRW | 53,406,000 | JPM | 03/05/2018 | 649 | ||||||||||||||||||
USD | 51,125 | KRW | 55,300,000 | MS | 03/05/2018 | 58 | ||||||||||||||||||
USD | 39,693 | SGD | 52,000 | MS | 03/05/2018 | 439 | ||||||||||||||||||
USD | 179,467 | TWD | 5,240,000 | MS | 03/05/2018 | 336 | ||||||||||||||||||
USD | 9,508 | ILS | 33,000 | MS | 04/05/2018 | 4 | ||||||||||||||||||
CHF | 4,000 | USD | 4,246 | MS | 04/06/2018 | 3 | ||||||||||||||||||
EUR | 1,000 | USD | 1,223 | MS | 04/06/2018 | — | ||||||||||||||||||
HKD | 12,000 | USD | 1,535 | MS | 04/06/2018 | — | ||||||||||||||||||
JPY | 1,054,000 | USD | 9,903 | MS | 04/06/2018 | 1 | ||||||||||||||||||
USD | 91,109 | CAD | 116,000 | MS | 04/06/2018 | 646 | ||||||||||||||||||
USD | 148,476 | CHF | 139,000 | MS | 04/06/2018 | 823 | ||||||||||||||||||
USD | 14,227 | CLP | 8,384,000 | MS | 04/06/2018 | 142 | ||||||||||||||||||
USD | 27,043 | DKK | 163,704 | MS | 04/06/2018 | 146 | ||||||||||||||||||
USD | 45,509 | EUR | 37,000 | MS | 04/06/2018 | 246 | ||||||||||||||||||
USD | 27,855 | GBP | 20,000 | MS | 04/06/2018 | 275 | ||||||||||||||||||
USD | 22,417 | INR | 1,465,408 | MS | 04/06/2018 | 72 | ||||||||||||||||||
USD | 50,162 | KRW | 54,020,000 | MS | 04/06/2018 | 339 | ||||||||||||||||||
USD | 39,380 | SGD | 52,000 | MS | 04/06/2018 | 108 | ||||||||||||||||||
USD | 178,235 | TWD | 5,190,000 | MS | 04/09/2018 | 714 | ||||||||||||||||||
|
| |||||||||||||||||||||||
15,923 | ||||||||||||||||||||||||
|
| |||||||||||||||||||||||
CAD | 120,000 | USD | 94,317 | MS | 03/05/2018 | (796 | ) | |||||||||||||||||
CHF | 142,000 | USD | 151,284 | MS | 03/05/2018 | (891 | ) | |||||||||||||||||
CLP | 8,384,000 | USD | 14,234 | MS | 03/05/2018 | (142 | ) | |||||||||||||||||
DKK | 163,704 | USD | 26,974 | MS | 03/05/2018 | (147 | ) | |||||||||||||||||
EUR | 38,000 | USD | 46,642 | MS | 03/05/2018 | (274 | ) | |||||||||||||||||
GBP | 21,000 | USD | 29,236 | MS | 03/05/2018 | (323 | ) | |||||||||||||||||
HKD | 9,000 | USD | 1,151 | MS | 03/05/2018 | (1 | ) | |||||||||||||||||
ILS | 34,000 | USD | 9,789 | MS | 03/05/2018 | (13 | ) | |||||||||||||||||
INR | 2,990,817 | USD | 45,968 | MS | 03/05/2018 | (116 | ) | |||||||||||||||||
KRW | 53,406,000 | USD | 49,363 | JPM | 03/05/2018 | (46 | ) | |||||||||||||||||
KRW | 55,300,000 | USD | 51,355 | MS | 03/05/2018 | (288 | ) | |||||||||||||||||
SGD | 52,000 | USD | 39,364 | MS | 03/05/2018 | (109 | ) | |||||||||||||||||
TWD | 5,240,000 | USD | 179,231 | MS | 03/05/2018 | (100 | ) | |||||||||||||||||
USD | 13,411 | CLP | 8,077,000 | BNP | 03/05/2018 | (165 | ) | |||||||||||||||||
USD | 626 | CLP | 377,000 | MS | 03/05/2018 | (8 | ) | |||||||||||||||||
USD | 393,264 | JPY | 42,694,000 | MS | 03/05/2018 | (6,949 | ) | |||||||||||||||||
CAD | 6,000 | USD | 4,685 | MS | 04/06/2018 | (6 | ) | |||||||||||||||||
CHF | 1,000 | USD | 1,062 | MS | 04/06/2018 | — | ||||||||||||||||||
CLP | 217,000 | USD | 365 | MS | 04/06/2018 | — | ||||||||||||||||||
DKK | 1,000 | USD | 164 | MS | 04/06/2018 | — | ||||||||||||||||||
HKD | 13,000 | USD | 1,663 | MS | 04/06/2018 | — |
SCHEDULESOF INVESTMENTS | 27 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® EDGE MSCI MIN VOL GLOBAL CURRENCY HEDGED ETF
February 28, 2018
Currency purchased | Currency sold | Counterparty | Settlement date | Unrealized appreciation (depreciation) | ||||||||||||||||||||
INR | 185,000 | USD | 2,826 | MS | 04/06/2018 | $ | (6 | ) | ||||||||||||||||
KRW | 1,199,000 | USD | 1,108 | MS | 04/06/2018 | (2 | ) | |||||||||||||||||
SGD | 3,000 | USD | 2,269 | MS | 04/06/2018 | (3 | ) | |||||||||||||||||
USD | 1,643 | DKK | 10,000 | MS | 04/06/2018 | — | ||||||||||||||||||
USD | 212,444 | HKD | 1,661,000 | MS | 04/06/2018 | (8 | ) | |||||||||||||||||
USD | 395,618 | JPY | 42,319,000 | MS | 04/06/2018 | (2,031 | ) | |||||||||||||||||
TWD | 38,000 | USD | 1,304 | MS | 04/09/2018 | (4 | ) | |||||||||||||||||
|
| |||||||||||||||||||||||
(12,428 | ) | |||||||||||||||||||||||
|
| |||||||||||||||||||||||
Net unrealized appreciation | $ | 3,495 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||
Counterparties:
BNP — BNP Paribas SA
JPM — JPMorgan Chase Bank N.A.
MS — Morgan Stanley and Co. International PLC
Currency abbreviations:
CAD — Canadian Dollar
CHF — Swiss Franc
CLP — Chilean Peso
DKK — Danish Krone
EUR — Euro
GBP — British Pound
HKD — Hong Kong Dollar
ILS — Israeli Shekel
INR — Indian Rupee
JPY — Japanese Yen
KRW — South Korean Won
SGD — Singapore Dollar
TWD — Taiwan New Dollar
USD — United States Dollar
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Investment companies | $ | 2,886,774 | $ | — | $ | — | $ | 2,886,774 | ||||||||
Money market funds | 1,273 | — | — | 1,273 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 2,888,047 | $ | — | $ | — | $ | 2,888,047 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative financial instrumentsa | ||||||||||||||||
Assets | ||||||||||||||||
Forward currency contracts | $ | — | $ | 15,923 | $ | — | $ | 15,923 | ||||||||
Liabilities | ||||||||||||||||
Forward currency contracts | — | (12,428 | ) | — | (12,428 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | — | $ | 3,495 | $ | — | $ | 3,495 | ||||||||
|
|
|
|
|
|
|
| |||||||||
a | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
28 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Assets and Liabilities (Unaudited)
iSHARES® TRUST
February 28, 2018
iShares Adaptive Japan ETF | iShares Currency | iShares Currency | ||||||||||
ASSETS | ||||||||||||
Investments in securities, at cost: | ||||||||||||
Affiliated (Note 2) | $ | 5,475,886 | $ | 1,055,073 | $ | 6,269,218 | ||||||
|
|
|
|
|
| |||||||
Total cost of investments in securities | $ | 5,475,886 | $ | 1,055,073 | $ | 6,269,218 | ||||||
|
|
|
|
|
| |||||||
Investments in securities, at fair value (including securities on loana) (Note 1): | ||||||||||||
Affiliated (Note 2) | $ | 6,330,169 | $ | 1,178,345 | $ | 6,297,073 | ||||||
Receivables: | ||||||||||||
Investment securities sold | 3,510 | — | — | |||||||||
Dividends and interest | 212 | — | 46 | |||||||||
Unrealized appreciation on forward currency contracts (Note 1) | 57,625 | 61,559 | 293,668 | |||||||||
|
|
|
|
|
| |||||||
Total Assets | 6,391,516 | 1,239,904 | 6,590,787 | |||||||||
|
|
|
|
|
| |||||||
LIABILITIES | ||||||||||||
Payables: | ||||||||||||
Investment securities purchased | — | 36,412 | 189,318 | |||||||||
Collateral for securities on loan (Note 1) | 1,921,500 | — | — | |||||||||
Unrealized depreciation on forward currency contracts (Note 1) | 67,793 | 15,124 | 53,864 | |||||||||
Investment advisory fees (Note 2) | — | 28 | 129 | |||||||||
|
|
|
|
|
| |||||||
Total Liabilities | 1,989,293 | 51,564 | 243,311 | |||||||||
|
|
|
|
|
| |||||||
NET ASSETS | $ | 4,402,223 | $ | 1,188,340 | $ | 6,347,476 | ||||||
|
|
|
|
|
| |||||||
Net assets consist of: | ||||||||||||
Paid-in capital | $ | 3,540,495 | $ | 1,717,994 | $ | 6,437,149 | ||||||
Undistributed (distributions in excess of) net investment income | (425 | ) | 3,731 | 7,040 | ||||||||
Undistributed net realized gain (accumulated net realized loss) | 18,038 | (703,092 | ) | (364,372 | ) | |||||||
Net unrealized appreciation | 844,115 | 169,707 | 267,659 | |||||||||
|
|
|
|
|
| |||||||
NET ASSETS | $ | 4,402,223 | $ | 1,188,340 | $ | 6,347,476 | ||||||
|
|
|
|
|
| |||||||
Shares outstandingb | 150,000 | 50,000 | 250,000 | |||||||||
|
|
|
|
|
| |||||||
Net asset value per share | $ | 29.35 | $ | 23.77 | $ | 25.39 | ||||||
|
|
|
|
|
|
a | Securities on loan with values of $1,862,635, $ — and $ —, respectively. See Note 1. |
b | No par value, unlimited number of shares authorized. |
See notes to financial statements.
FINANCIAL STATEMENTS | 29 |
Table of Contents
Statements of Assets and Liabilities (Unaudited) (Continued)
iSHARES® TRUST
February 28, 2018
iShares Currency | iShares Currency Hedged MSCI | iShares Currency South Korea | ||||||||||
ASSETS | ||||||||||||
Investments in securities, at cost: | ||||||||||||
Affiliated (Note 2) | $ | 963,095,004 | $ | 1,868,362 | $ | 1,187,778 | ||||||
|
|
|
|
|
| |||||||
Total cost of investments in securities | $ | 963,095,004 | $ | 1,868,362 | $ | 1,187,778 | ||||||
|
|
|
|
|
| |||||||
Investments in securities, at fair value (Note 1): | ||||||||||||
Affiliated (Note 2) | $ | 1,090,500,852 | $ | 1,937,521 | $ | 1,481,927 | ||||||
Cash pledged to broker for forward currency contracts | 1,160,000 | — | — | |||||||||
Receivables: | ||||||||||||
Investment securities sold | 13,918,357 | 4,940 | — | |||||||||
Dividends and interest | 772 | 655 | 2 | |||||||||
Unrealized appreciation on forward currency contracts (Note 1) | 5,594,486 | 23,242 | 33,166 | |||||||||
|
|
|
|
|
| |||||||
Total Assets | 1,111,174,467 | 1,966,358 | 1,515,095 | |||||||||
|
|
|
|
|
| |||||||
LIABILITIES | ||||||||||||
Payables: | ||||||||||||
Investment securities purchased | — | — | 11,248 | |||||||||
Due to custodian | 797,873 | — | — | |||||||||
Unrealized depreciation on forward currency contracts (Note 1) | 24,304,630 | 15,693 | 10,772 | |||||||||
Investment advisory fees (Note 2) | 8,320 | 46 | — | |||||||||
|
|
|
|
|
| |||||||
Total Liabilities | 25,110,823 | 15,739 | 22,020 | |||||||||
|
|
|
|
|
| |||||||
NET ASSETS | $ | 1,086,063,644 | $ | 1,950,619 | $ | 1,493,075 | ||||||
|
|
|
|
|
| |||||||
Net assets consist of: | ||||||||||||
Paid-in capital | $ | 1,011,860,021 | $ | 2,160,540 | $ | 1,235,215 | ||||||
Undistributed net investment income | 690,086 | 3,373 | 3,459 | |||||||||
Accumulated net realized loss | (35,182,167 | ) | (290,002 | ) | (62,142 | ) | ||||||
Net unrealized appreciation | 108,695,704 | 76,708 | 316,543 | |||||||||
|
|
|
|
|
| |||||||
NET ASSETS | $ | 1,086,063,644 | $ | 1,950,619 | $ | 1,493,075 | ||||||
|
|
|
|
|
| |||||||
Shares outstandinga | 33,650,000 | 100,000 | 50,000 | |||||||||
|
|
|
|
|
| |||||||
Net asset value per share | $ | 32.28 | $ | 19.51 | $ | 29.86 | ||||||
|
|
|
|
|
|
a | No par value, unlimited number of shares authorized. |
See notes to financial statements.
30 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Assets and Liabilities (Unaudited) (Continued)
iSHARES® TRUST
February 28, 2018
iShares Edge MSCI Min Vol Global Currency | ||||
ASSETS | ||||
Investments in securities, at cost: | ||||
Affiliated (Note 2) | $ | 2,545,145 | ||
|
| |||
Total cost of investments in securities | $ | 2,545,145 | ||
|
| |||
Investments in securities, at fair value (Note 1): | ||||
Affiliated (Note 2) | $ | 2,888,047 | ||
Receivables: | ||||
Dividends and interest | 1 | |||
Unrealized appreciation on forward currency contracts (Note 1) | 15,923 | |||
|
| |||
Total Assets | 2,903,971 | |||
|
| |||
LIABILITIES | ||||
Payables: | ||||
Investment securities purchased | 1,752 | |||
Unrealized depreciation on forward currency contracts (Note 1) | 12,428 | |||
Investment advisory fees (Note 2) | 67 | |||
|
| |||
Total Liabilities | 14,247 | |||
|
| |||
NET ASSETS | $ | 2,889,724 | ||
|
| |||
Net assets consist of: | ||||
Paid-in capital | $ | 2,602,346 | ||
Undistributed net investment income | 523 | |||
Accumulated net realized loss | (59,542 | ) | ||
Net unrealized appreciation | 346,397 | |||
|
| |||
NET ASSETS | $ | 2,889,724 | ||
|
| |||
Shares outstandinga | 100,000 | |||
|
| |||
Net asset value per share | $ | 28.90 | ||
|
|
a | No par value, unlimited number of shares authorized. |
See notes to financial statements.
FINANCIAL STATEMENTS | 31 |
Table of Contents
Statements of Operations (Unaudited)
iSHARES® TRUST
Six months ended February 28, 2018
iShares Adaptive Japan ETF | iShares Currency Hedged MSCI | iShares Currency Hedged MSCI | ||||||||||
NET INVESTMENT INCOME | ||||||||||||
Dividends — affiliated (Note 2) | $ | 29,476 | $ | 29,833 | $ | 67,229 | ||||||
Securities lending income — affiliated — net (Note 2) | 527 | — | 164 | |||||||||
|
|
|
|
|
| |||||||
Total investment income | 30,003 | 29,833 | 67,393 | |||||||||
|
|
|
|
|
| |||||||
EXPENSES | ||||||||||||
Investment advisory fees (Note 2) | 14,154 | 3,663 | 13,897 | |||||||||
Proxy fees | 1 | — | — | |||||||||
|
|
|
|
|
| |||||||
Total expenses | 14,155 | 3,663 | 13,897 | |||||||||
Less investment advisory fees waived (Note 2) | (14,155 | ) | (3,486 | ) | (13,225 | ) | ||||||
|
|
|
|
|
| |||||||
Net expenses | — | 177 | 672 | |||||||||
|
|
|
|
|
| |||||||
Net investment income | 30,003 | 29,656 | 66,721 | |||||||||
|
|
|
|
|
| |||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||
Net realized gain (loss) from: | ||||||||||||
Investments — affiliated (Note 2) | 14,939 | 3,863 | 5,079 | |||||||||
In-kind redemptions — affiliated (Note 2) | 205,330 | — | — | |||||||||
Forward currency contracts | (33,031 | ) | (11,409 | ) | (96,209 | ) | ||||||
|
|
|
|
|
| |||||||
Net realized gain (loss) | 187,238 | (7,546 | ) | (91,130 | ) | |||||||
|
|
|
|
|
| |||||||
Net change in unrealized appreciation/depreciation on: | ||||||||||||
Investments — affiliated (Note 2) | 284,601 | 8,133 | (135,524 | ) | ||||||||
Forward currency contracts | 998 | 31,179 | 248,806 | |||||||||
|
|
|
|
|
| |||||||
Net change in unrealized appreciation/depreciation | 285,599 | 39,312 | 113,282 | |||||||||
|
|
|
|
|
| |||||||
Net realized and unrealized gain | 472,837 | 31,766 | 22,152 | |||||||||
|
|
|
|
|
| |||||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 502,840 | $ | 61,422 | $ | 88,873 | ||||||
|
|
|
|
|
|
See notes to financial statements.
32 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Operations (Unaudited) (Continued)
iSHARES® TRUST
Six months ended February 28, 2018
iShares Currency Hedged MSCI Japan ETF | iShares Currency Hedged MSCI | iShares Currency Hedged MSCI South Korea | ||||||||||
NET INVESTMENT INCOME | ||||||||||||
Dividends — affiliated (Note 2) | $ | 7,510,757 | $ | 19,831 | $ | 44,720 | ||||||
Securities lending income — affiliated — net (Note 2) | — | 3,965 | — | |||||||||
|
|
|
|
|
| |||||||
Total investment income | 7,510,757 | 23,796 | 44,720 | |||||||||
|
|
|
|
|
| |||||||
EXPENSES | ||||||||||||
Investment advisory fees (Note 2) | 3,063,422 | 6,784 | 5,890 | |||||||||
Proxy fees | 125 | — | — | |||||||||
|
|
|
|
|
| |||||||
Total expenses | 3,063,547 | 6,784 | 5,890 | |||||||||
Less investment advisory fees waived (Note 2) | (3,023,632 | ) | (6,456 | ) | (5,890 | ) | ||||||
|
|
|
|
|
| |||||||
Net expenses | 39,915 | 328 | — | |||||||||
|
|
|
|
|
| |||||||
Net investment income | 7,470,842 | 23,468 | 44,720 | |||||||||
|
|
|
|
|
| |||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||
Net realized gain (loss) from: | ||||||||||||
Investments — affiliated (Note 2) | (626,610 | ) | (23,202 | ) | 19,175 | |||||||
In-kind redemptions — affiliated (Note 2) | 70,185,610 | 147,390 | — | |||||||||
Forward currency contracts | (17,101,455 | ) | 49,037 | (80,643 | ) | |||||||
|
|
|
|
|
| |||||||
Net realized gain (loss) | 52,457,545 | 173,225 | (61,468 | ) | ||||||||
|
|
|
|
|
| |||||||
Net change in unrealized appreciation/depreciation on: | ||||||||||||
Investments — affiliated (Note 2) | 62,909,255 | (407,765 | ) | 64,050 | ||||||||
Forward currency contracts | (5,386,222 | ) | 5,172 | 21,768 | ||||||||
|
|
|
|
|
| |||||||
Net change in unrealized appreciation/depreciation | 57,523,033 | (402,593 | ) | 85,818 | ||||||||
|
|
|
|
|
| |||||||
Net realized and unrealized gain (loss) | 109,980,578 | (229,368 | ) | 24,350 | ||||||||
|
|
|
|
|
| |||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | 117,451,420 | $ | (205,900 | ) | $ | 69,070 | |||||
|
|
|
|
|
|
See notes to financial statements.
FINANCIAL STATEMENTS | 33 |
Table of Contents
Statements of Operations (Unaudited) (Continued)
iSHARES® TRUST
Six months ended February 28, 2018
iShares Edge MSCI Global Currency | ||||
NET INVESTMENT INCOME | ||||
Dividends — affiliated (Note 2) | $ | 30,320 | ||
|
| |||
Total investment income | 30,320 | |||
|
| |||
EXPENSES | ||||
Investment advisory fees (Note 2) | 5,490 | |||
|
| |||
Total expenses | 5,490 | |||
Less investment advisory fees waived (Note 2) | (5,057 | ) | ||
|
| |||
Net expenses | 433 | |||
|
| |||
Net investment income | 29,887 | |||
|
| |||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||
Net realized gain (loss) from: | ||||
Investments — affiliated (Note 2) | 3,707 | |||
Forward currency contracts | (28,185 | ) | ||
|
| |||
Net realized loss | (24,478 | ) | ||
|
| |||
Net change in unrealized appreciation/depreciation on: | ||||
Investments — affiliated (Note 2) | 74,191 | |||
Forward currency contracts | 10,692 | |||
|
| |||
Net change in unrealized appreciation/depreciation | 84,883 | |||
|
| |||
Net realized and unrealized gain | 60,405 | |||
|
| |||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 90,292 | ||
|
|
See notes to financial statements.
34 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Changes in Net Assets
iSHARES® TRUST
iShares Adaptive Currency Hedged MSCI Japan ETF | iShares Currency Hedged MSCI Australia ETF | |||||||||||||||
Six months ended February 28, 2018 (Unaudited) | Year ended August 31, 2017 | Six months February 28, 2018 (Unaudited) | Year ended August 31, 2017 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income | $ | 30,003 | $ | 77,529 | $ | 29,656 | $ | 166,303 | ||||||||
Net realized gain (loss) | 187,238 | 76,378 | (7,546 | ) | 939,527 | |||||||||||
Net change in unrealized appreciation/depreciation | 285,599 | 459,555 | 39,312 | (587,757 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase in net assets resulting from operations | 502,840 | 613,462 | 61,422 | 518,073 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
From net investment income | (30,433 | ) | (77,558 | ) | (25,925 | ) | (166,741 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions to shareholders | (30,433 | ) | (77,558 | ) | (25,925 | ) | (166,741 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Proceeds from shares sold | — | 1,253,408 | — | — | ||||||||||||
Cost of shares redeemed | (1,379,179 | ) | — | — | (9,108,516 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets from capital share transactions | (1,379,179 | ) | 1,253,408 | — | (9,108,516 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
INCREASE (DECREASE) IN NET ASSETS | (906,772 | ) | 1,789,312 | 35,497 | (8,757,184 | ) | ||||||||||
NET ASSETS | ||||||||||||||||
Beginning of period | 5,308,995 | 3,519,683 | 1,152,843 | 9,910,027 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 4,402,223 | $ | 5,308,995 | $ | 1,188,340 | $ | 1,152,843 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed (distributions in excess of) net investment income included in net assets at end of period | $ | (425 | ) | $ | 5 | $ | 3,731 | $ | — | |||||||
|
|
|
|
|
|
|
| |||||||||
SHARES ISSUED AND REDEEMED | ||||||||||||||||
Shares sold | — | 50,000 | — | — | ||||||||||||
Shares redeemed | (50,000 | ) | — | — | (400,000 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in shares outstanding | (50,000 | ) | 50,000 | — | (400,000 | ) | ||||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
FINANCIAL STATEMENTS | 35 |
Table of Contents
Statements of Changes in Net Assets (Continued)
iSHARES® TRUST
iShares Currency Hedged MSCI Canada ETF | iShares Currency Hedged MSCI Japan ETF | |||||||||||||||
Six months ended February 28, 2018 (Unaudited) | Year ended August 31, 2017 | Six months February 28, 2018 (Unaudited) | Year ended August 31, 2017 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income | $ | 66,721 | $ | 45,397 | $ | 7,470,842 | $ | 16,533,221 | ||||||||
Net realized gain (loss) | (91,130 | ) | 1,357,284 | 52,457,545 | 37,763,975 | |||||||||||
Net change in unrealized appreciation/depreciation | 113,282 | (850,002 | ) | 57,523,033 | 79,812,136 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase in net assets resulting from operations | 88,873 | 552,679 | 117,451,420 | 134,109,332 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
From net investment income | (59,681 | ) | (45,516 | ) | (6,780,756 | ) | (16,546,504 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions to shareholders | (59,681 | ) | (45,516 | ) | (6,780,756 | ) | (16,546,504 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Proceeds from shares sold | 3,847,849 | — | 294,359,573 | 1,247,124,607 | ||||||||||||
Cost of shares redeemed | — | (8,629,468 | ) | (517,692,922 | ) | (641,976,488 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets from capital share transactions | 3,847,849 | (8,629,468 | ) | (223,333,349 | ) | 605,148,119 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
INCREASE (DECREASE) IN NET ASSETS | 3,877,041 | (8,122,305 | ) | (112,662,685 | ) | 722,710,947 | ||||||||||
NET ASSETS | ||||||||||||||||
Beginning of period | 2,470,435 | 10,592,740 | 1,198,726,329 | 476,015,382 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 6,347,476 | $ | 2,470,435 | $ | 1,086,063,644 | $ | 1,198,726,329 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed net investment income included in net assets at end of period | $ | 7,040 | $ | — | $ | 690,086 | $ | — | ||||||||
|
|
|
|
|
|
|
| |||||||||
SHARES ISSUED AND REDEEMED | ||||||||||||||||
Shares sold | 150,000 | — | 9,000,000 | 44,500,000 | ||||||||||||
Shares redeemed | — | (350,000 | ) | (15,900,000 | ) | (23,200,000 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in shares outstanding | 150,000 | (350,000 | ) | (6,900,000 | ) | 21,300,000 | ||||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
36 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Changes in Net Assets (Continued)
iSHARES® TRUST
iShares Currency Hedged MSCI Mexico ETF | iShares Currency Hedged MSCI South Korea ETF | |||||||||||||||
Six months ended February 28, 2018 (Unaudited) | Year ended August 31, 2017 | Six months February 28, 2018 (Unaudited) | Year ended August 31, 2017 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income | $ | 23,468 | $ | 46,216 | $ | 44,720 | $ | 100,558 | ||||||||
Net realized gain (loss) | 173,225 | (524,548 | ) | (61,468 | ) | 1,132,904 | ||||||||||
Net change in unrealized appreciation/depreciation | (402,593 | ) | 627,661 | 85,818 | (498,156 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | (205,900 | ) | 149,329 | 69,070 | 735,306 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
From net investment income | (20,207 | ) | (46,128 | ) | (41,261 | ) | (100,689 | ) | ||||||||
From net realized gain | — | (110,888 | ) | — | (296,450 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions to shareholders | (20,207 | ) | (157,016 | ) | (41,261 | ) | (397,139 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Proceeds from shares sold | — | 4,095,059 | — | 2,529,942 | ||||||||||||
Cost of shares redeemed | (1,051,218 | ) | (2,036,612 | ) | — | (13,756,301 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets from capital share transactions | (1,051,218 | ) | 2,058,447 | — | (11,226,359 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
INCREASE (DECREASE) IN NET ASSETS | (1,277,325 | ) | 2,050,760 | 27,809 | (10,888,192 | ) | ||||||||||
NET ASSETS | ||||||||||||||||
Beginning of period | 3,227,944 | 1,177,184 | 1,465,266 | 12,353,458 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 1,950,619 | $ | 3,227,944 | $ | 1,493,075 | $ | 1,465,266 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed net investment income included in net assets at end of period | $ | 3,373 | $ | 112 | $ | 3,459 | $ | — | ||||||||
|
|
|
|
|
|
|
| |||||||||
SHARES ISSUED AND REDEEMED | ||||||||||||||||
Shares sold | — | 200,000 | — | 100,000 | ||||||||||||
Shares redeemed | (50,000 | ) | (100,000 | ) | — | (550,000 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in shares outstanding | (50,000 | ) | 100,000 | — | (450,000 | ) | ||||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
FINANCIAL STATEMENTS | 37 |
Table of Contents
Statements of Changes in Net Assets (Continued)
iSHARES® TRUST
iShares Edge MSCI Min Vol Global Currency Hedged ETF | ||||||||
Six months ended February 28, 2018 (Unaudited) | Year ended August 31, 2017 | |||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||
OPERATIONS: | ||||||||
Net investment income | $ | 29,887 | $ | 67,244 | ||||
Net realized gain (loss) | (24,478 | ) | 7,167 | |||||
Net change in unrealized appreciation/depreciation | 84,883 | 186,160 | ||||||
|
|
|
| |||||
Net increase in net assets resulting from operations | 90,292 | 260,571 | ||||||
|
|
|
| |||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||
From net investment income | (29,364 | ) | (67,377 | ) | ||||
|
|
|
| |||||
Total distributions to shareholders | (29,364 | ) | (67,377 | ) | ||||
|
|
|
| |||||
CAPITAL SHARE TRANSACTIONS: | ||||||||
Proceeds from shares sold | — | 1,320,799 | ||||||
|
|
|
| |||||
Net increase in net assets from capital share transactions | — | 1,320,799 | ||||||
|
|
|
| |||||
INCREASE IN NET ASSETS | 60,928 | 1,513,993 | ||||||
NET ASSETS | ||||||||
Beginning of period | 2,828,796 | 1,314,803 | ||||||
|
|
|
| |||||
End of period | $ | 2,889,724 | $ | 2,828,796 | ||||
|
|
|
| |||||
Undistributed net investment income included in net assets at end of period | $ | 523 | $ | — | ||||
|
|
|
| |||||
SHARES ISSUED | ||||||||
Shares sold | — | 50,000 | ||||||
|
|
|
| |||||
Net increase in shares outstanding | — | 50,000 | ||||||
|
|
|
|
See notes to financial statements.
38 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
iSHARES® TRUST
(For a share outstanding throughout each period)
iShares Adaptive Currency Hedged MSCI Japan ETF | ||||||||||||
Six months ended Feb. 28, 2018 (Unaudited) | Year ended Aug. 31, 2017 | Period from to Aug. 31, 2016 | ||||||||||
Net asset value, beginning of period | $ | 26.54 | $ | 23.46 | $ | 24.92 | ||||||
|
|
|
|
|
| |||||||
Income from investment operations: | ||||||||||||
Net investment incomeb | 0.19 | 0.44 | 0.23 | |||||||||
Net realized and unrealized gain (loss)c | 2.82 | 3.10 | (1.51 | ) | ||||||||
|
|
|
|
|
| |||||||
Total from investment operations | 3.01 | 3.54 | (1.28 | ) | ||||||||
|
|
|
|
|
| |||||||
Less distributions from: | ||||||||||||
Net investment income | (0.20 | ) | (0.46 | ) | (0.18 | ) | ||||||
|
|
|
|
|
| |||||||
Total distributions | (0.20 | ) | (0.46 | ) | (0.18 | ) | ||||||
|
|
|
|
|
| |||||||
Net asset value, end of period | $ | 29.35 | $ | 26.54 | $ | 23.46 | ||||||
|
|
|
|
|
| |||||||
Total return | 11.30 | %d | 15.24 | % | (5.06 | )%d | ||||||
|
|
|
|
|
| |||||||
Ratios/Supplemental data: | ||||||||||||
Net assets, end of period (000s) | $ | 4,402 | $ | 5,309 | $ | 3,520 | ||||||
Ratio of expenses to average net assetse,f | 0.00 | % | 0.00 | % | 0.00 | % | ||||||
Ratio of expenses to average net assets prior to waived feese,f | 0.62 | % | 0.62 | % | 0.62 | % | ||||||
Ratio of net investment income to average net assetse | 1.31 | % | 1.72 | % | 1.57 | % | ||||||
Portfolio turnover rateg,h | 3 | %d | 8 | % | 2 | %d |
a | Commencement of operations. |
b | Based on average shares outstanding throughout each period. |
c | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
d | Not annualized. |
e | Annualized for periods of less than one year. |
f | The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying fund in which the Fund is invested. This ratio does not include these indirect fees and expenses. |
g | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
h | Portfolio turnover rates exclude the portfolio activity of the underlying fund in which the Fund is invested. See page 106 for the portfolio turnover rates of the underlying fund. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 39 |
Table of Contents
Financial Highlights (Continued)
iSHARES® TRUST
(For a share outstanding throughout each period)
iShares Currency Hedged MSCI Australia ETF | ||||||||||||||||
Six months ended Feb. 28, 2018 (Unaudited) | Year ended Aug. 31, 2017 | Year ended Aug. 31, 2016 | Period from to | |||||||||||||
Net asset value, beginning of period | $ | 23.06 | $ | 22.02 | $ | 23.52 | $ | 24.48 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Income from investment operations: | ||||||||||||||||
Net investment income (loss)b | 0.59 | 0.75 | 0.72 | (0.00 | )c | |||||||||||
Net realized and unrealized gain (loss)d | 0.64 | 1.40 | 0.49 | (0.96 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total from investment operations | 1.23 | 2.15 | 1.21 | (0.96 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Less distributions from: | ||||||||||||||||
Net investment income | (0.52 | ) | (1.11 | ) | (0.90 | ) | — | |||||||||
Net realized gain | — | — | (1.81 | ) | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions | (0.52 | ) | (1.11 | ) | (2.71 | ) | — | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net asset value, end of period | $ | 23.77 | $ | 23.06 | $ | 22.02 | $ | 23.52 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total return | 5.25 | %e | 9.86 | % | 5.70 | % | (3.92 | )%e | ||||||||
|
|
|
|
|
|
|
| |||||||||
Ratios/Supplemental data: | ||||||||||||||||
Net assets, end of period (000s) | $ | 1,188 | $ | 1,153 | $ | 9,910 | $ | 2,352 | ||||||||
Ratio of expenses to average net assetsf,g | 0.03 | % | 0.03 | % | 0.03 | % | 0.04 | % | ||||||||
Ratio of expenses to average net assets prior to waived feesf,g | 0.62 | % | 0.62 | % | 0.62 | % | 0.62 | % | ||||||||
Ratio of net investment income (loss) to average net assetsf | 5.02 | % | 3.31 | % | 3.33 | % | (0.04 | )% | ||||||||
Portfolio turnover rateh,i | 9 | %e | 13 | % | 15 | % | 0 | %e,j |
a | Commencement of operations. |
b | Based on average shares outstanding throughout each period. |
c | Rounds to less than $0.01. |
d | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
e | Not annualized. |
f | Annualized for periods of less than one year. |
g | The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying fund in which the Fund is invested. This ratio does not include these indirect fees and expenses. |
h | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
i | Portfolio turnover rates exclude the portfolio activity of the underlying fund in which the Fund is invested. See page 104 for the portfolio turnover rates of the underlying fund. |
j | Rounds to less than 1%. |
See notes to financial statements.
40 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Financial Highlights (Continued)
iSHARES® TRUST
(For a share outstanding throughout each period)
iShares Currency Hedged MSCI Canada ETF | ||||||||||||||||
Six months ended Feb. 28, 2018 (Unaudited) | Year ended Aug. 31, 2017 | Year ended Aug. 31, 2016 | Period from to | |||||||||||||
Net asset value, beginning of period | $ | 24.70 | $ | 23.54 | $ | 23.47 | $ | 24.36 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Income from investment operations: | ||||||||||||||||
Net investment income (loss)b | 0.38 | 0.24 | 0.41 | (0.00 | )c | |||||||||||
Net realized and unrealized gain (loss)d | 0.61 | 1.38 | 1.07 | (0.89 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total from investment operations | 0.99 | 1.62 | 1.48 | (0.89 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Less distributions from: | ||||||||||||||||
Net investment income | (0.30 | ) | (0.46 | ) | (0.46 | ) | — | |||||||||
Net realized gain | — | — | (0.95 | ) | — | |||||||||||
Return of capital | — | — | (0.00 | )c | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions | (0.30 | ) | (0.46 | ) | (1.41 | ) | — | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net asset value, end of period | $ | 25.39 | $ | 24.70 | $ | 23.54 | $ | 23.47 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total return | 3.95 | %e | 6.86 | % | 6.92 | % | (3.69 | )%e | ||||||||
|
|
|
|
|
|
|
| |||||||||
Ratios/Supplemental data: | ||||||||||||||||
Net assets, end of period (000s) | $ | 6,347 | $ | 2,470 | $ | 10,593 | $ | 2,347 | ||||||||
Ratio of expenses to average net assetsf,g | 0.03 | % | 0.03 | % | 0.03 | % | 0.05 | % | ||||||||
Ratio of expenses to average net assets prior to waived feesf,g | 0.62 | % | 0.62 | % | 0.62 | % | 0.62 | % | ||||||||
Ratio of net investment income (loss) to average net assetsf | 2.98 | % | 0.98 | % | 1.84 | % | (0.05 | )% | ||||||||
Portfolio turnover rateh,i | 7 | %e | 8 | % | 13 | % | 0 | %e |
a | Commencement of operations. |
b | Based on average shares outstanding throughout each period. |
c | Rounds to less than $0.01. |
d | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
e | Not annualized. |
f | Annualized for periods of less than one year. |
g | The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying fund in which the Fund is invested. This ratio does not include these indirect fees and expenses. |
h | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
i | Portfolio turnover rates exclude the portfolio activity of the underlying fund in which the Fund is invested. See page 105 for the portfolio turnover rates of the underlying fund. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 41 |
Table of Contents
Financial Highlights (Continued)
iSHARES® TRUST
(For a share outstanding throughout each period)
iShares Currency Hedged MSCI Japan ETF | ||||||||||||||||||||
Six months ended Feb. 28, 2018 (Unaudited) | Year ended Aug. 31, 2017 | Year ended Aug. 31, 2016 | Year ended Aug. 31, 2015 | Period from to | ||||||||||||||||
Net asset value, beginning of period | $ | 29.56 | $ | 24.73 | $ | 29.46 | $ | 25.02 | $ | 23.53 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Income from investment operations: | ||||||||||||||||||||
Net investment incomeb | 0.21 | 0.52 | 0.41 | 0.43 | 0.13 | |||||||||||||||
Net realized and unrealized gain (loss)c | 2.71 | 4.78 | (4.11 | ) | 4.58 | 1.53 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total from investment operations | 2.92 | 5.30 | (3.70 | ) | 5.01 | 1.66 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | (0.20 | ) | (0.47 | ) | (0.44 | ) | (0.32 | ) | (0.17 | ) | ||||||||||
Net realized gain | — | — | (0.59 | ) | (0.25 | ) | (0.00 | )d | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total distributions | (0.20 | ) | (0.47 | ) | (1.03 | ) | (0.57 | ) | (0.17 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net asset value, end of period | $ | 32.28 | $ | 29.56 | $ | 24.73 | $ | 29.46 | $ | 25.02 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total return | 9.82 | %e | 21.50 | % | (12.91 | )% | 20.08 | % | 7.05 | %e | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||
Net assets, end of period (000s) | $ | 1,086,064 | $ | 1,198,726 | $ | 476,015 | $ | 735,081 | $ | 32,531 | ||||||||||
Ratio of expenses to average net assetsf,g | 0.01 | % | 0.00 | %h | 0.00 | %h | 0.01 | % | 0.01 | % | ||||||||||
Ratio of expenses to average net assets prior to waived feesf,g | 0.53 | % | 0.53 | % | 0.53 | % | 0.53 | % | 0.53 | % | ||||||||||
Ratio of net investment income to average net assetsf | 1.29 | % | 1.84 | % | 1.57 | % | 1.39 | % | 0.94 | % | ||||||||||
Portfolio turnover ratei,j | 5 | %e | 11 | % | 11 | % | 12 | % | 1 | %e |
a | Commencement of operations. |
b | Based on average shares outstanding throughout each period. |
c | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
d | Rounds to less than $0.01. |
e | Not annualized. |
f | Annualized for periods of less than one year. |
g | The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying fund in which the Fund is invested. This ratio does not include these indirect fees and expenses. |
h | Rounds to less than 0.01%. |
i | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
j | Portfolio turnover rates exclude the portfolio activity of the underlying fund in which the Fund is invested. See page 106 for the portfolio turnover rates of the underlying fund. |
See notes to financial statements.
42 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Financial Highlights (Continued)
iSHARES® TRUST
(For a share outstanding throughout each period)
iShares Currency Hedged MSCI Mexico ETF | ||||||||||||||||
Six months ended Feb. 28, 2018 (Unaudited) | Year ended Aug. 31, 2017 | Year ended Aug. 31, 2016 | Period from to | |||||||||||||
Net asset value, beginning of period | $ | 21.52 | $ | 23.54 | $ | 24.03 | $ | 24.43 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Income from investment operations: | ||||||||||||||||
Net investment income (loss)b | 0.22 | 0.43 | 0.49 | (0.00 | )c | |||||||||||
Net realized and unrealized gain (loss)d | (2.03 | ) | 0.09 | 1.15 | (0.40 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total from investment operations | (1.81 | ) | 0.52 | 1.64 | (0.40 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Less distributions from: | ||||||||||||||||
Net investment income | (0.20 | ) | (0.33 | ) | (0.71 | ) | — | |||||||||
Net realized gain | — | (2.21 | ) | (1.42 | ) | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions | (0.20 | ) | (2.54 | ) | (2.13 | ) | — | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net asset value, end of period | $ | 19.51 | $ | 21.52 | $ | 23.54 | $ | 24.03 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total return | (8.43 | )%e | 3.24 | % | 7.41 | % | (1.64 | )%e | ||||||||
|
|
|
|
|
|
|
| |||||||||
Ratios/Supplemental data: | ||||||||||||||||
Net assets, end of period (000s) | $ | 1,951 | $ | 3,228 | $ | 1,177 | $ | 2,403 | ||||||||
Ratio of expenses to average net assetsf,g | 0.03 | % | 0.03 | % | 0.03 | % | 0.04 | % | ||||||||
Ratio of expenses to average net assets prior to waived feesf,g | 0.62 | % | 0.62 | % | 0.62 | % | 0.62 | % | ||||||||
Ratio of net investment income (loss) to average net assetsf | 2.14 | % | 2.03 | % | 2.11 | % | (0.04 | )% | ||||||||
Portfolio turnover rateh,i | 10 | %e | 12 | % | 22 | % | 0 | %e,j |
a | Commencement of operations. |
b | Based on average shares outstanding throughout each period. |
c | Rounds to less than $0.01. |
d | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
e | Not annualized. |
f | Annualized for periods of less than one year. |
g | The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying fund in which the Fund is invested. This ratio does not include these indirect fees and expenses. |
h | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
i | Portfolio turnover rates exclude the portfolio activity of the underlying fund in which the Fund is invested. See page 107 for the portfolio turnover rates of the underlying fund. |
j | Rounds to less than 1%. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 43 |
Table of Contents
Financial Highlights (Continued)
iSHARES® TRUST
(For a share outstanding throughout each period)
iShares Currency Hedged MSCI South Korea ETF | ||||||||||||||||
Six months ended Feb. 28, 2018 (Unaudited) | Year ended Aug. 31, 2017 | Year ended Aug. 31, 2016 | Period from to | |||||||||||||
Net asset value, beginning of period | $ | 29.31 | $ | 24.71 | $ | 22.70 | $ | 24.64 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Income from investment operations: | ||||||||||||||||
Net investment income (loss)b | 0.89 | 0.51 | 2.12 | (0.00 | )c | |||||||||||
Net realized and unrealized gain (loss)d | 0.49 | 5.29 | 0.92 | (1.94 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total from investment operations | 1.38 | 5.80 | 3.04 | (1.94 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Less distributions from: | ||||||||||||||||
Net investment income | (0.83 | ) | (0.35 | ) | (0.55 | ) | — | |||||||||
Net realized gain | — | (0.85 | ) | (0.48 | ) | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions | (0.83 | ) | (1.20 | ) | (1.03 | ) | — | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net asset value, end of period | $ | 29.86 | $ | 29.31 | $ | 24.71 | $ | 22.70 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total return | 4.63 | %e | 24.59 | % | 13.67 | % | (7.87 | )%e | ||||||||
|
|
|
|
|
|
|
| |||||||||
Ratios/Supplemental data: | ||||||||||||||||
Net assets, end of period (000s) | $ | 1,493 | $ | 1,465 | $ | 12,353 | $ | 2,270 | ||||||||
Ratio of expenses to average net assetsf,g | 0.00 | % | 0.00 | % | 0.00 | % | 0.02 | % | ||||||||
Ratio of expenses to average net assets prior to waived feesf,g | 0.77 | % | 0.77 | % | 0.77 | % | 0.77 | % | ||||||||
Ratio of net investment income (loss) to average net assetsf | 5.85 | % | 2.01 | % | 9.13 | % | (0.02 | )% | ||||||||
Portfolio turnover rateh,i | 5 | %e | 25 | % | 21 | % | 2 | %e |
a | Commencement of operations. |
b | Based on average shares outstanding throughout each period. |
c | Rounds to less than $0.01. |
d | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
e | Not annualized. |
f | Annualized for periods of less than one year. |
g | The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying fund in which the Fund is invested. This ratio does not include these indirect fees and expenses. |
h | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
i | Portfolio turnover rates exclude the portfolio activity of the underlying fund in which the Fund is invested. See page 108 for the portfolio turnover rates of the underlying fund. |
See notes to financial statements.
44 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Financial Highlights (Continued)
iSHARES® TRUST
(For a share outstanding throughout each period)
iShares Edge MSCI Min Vol Global Currency Hedged ETF |
Six months ended Feb. 28, 2018 (Unaudited) | Year ended Aug. 31, 2017 | Period from to | ||||||||||
Net asset value, beginning of period | $ | 28.29 | $ | 26.30 | $ | 25.01 | ||||||
|
|
|
|
|
| |||||||
Income from investment operations: | ||||||||||||
Net investment incomeb | 0.30 | 0.70 | 0.57 | |||||||||
Net realized and unrealized gainc | 0.60 | 1.96 | 1.29 | |||||||||
|
|
|
|
|
| |||||||
Total from investment operations | 0.90 | 2.66 | 1.86 | |||||||||
|
|
|
|
|
| |||||||
Less distributions from: | ||||||||||||
Net investment income | (0.29 | ) | (0.67 | ) | (0.57 | ) | ||||||
|
|
|
|
|
| |||||||
Total distributions | (0.29 | ) | (0.67 | ) | (0.57 | ) | ||||||
|
|
|
|
|
| |||||||
Net asset value, end of period | $ | 28.90 | $ | 28.29 | $ | 26.30 | ||||||
|
|
|
|
|
| |||||||
Total return | 3.17 | %d | 10.32 | % | 7.51 | %d | ||||||
|
|
|
|
|
| |||||||
Ratios/Supplemental data: | ||||||||||||
Net assets, end of period (000s) | $ | 2,890 | $ | 2,829 | $ | 1,315 | ||||||
Ratio of expenses to average net assetse,f | 0.03 | % | 0.03 | % | 0.03 | % | ||||||
Ratio of expenses to average net assets prior to waived feese,f | 0.38 | % | 0.38 | % | 0.38 | % | ||||||
Ratio of net investment income to average net assetse | 2.07 | % | 2.60 | % | 2.70 | % | ||||||
Portfolio turnover rateg,h | 2 | %d | 5 | % | 4 | %d |
a | Commencement of operations. |
b | Based on average shares outstanding throughout each period. |
c | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
d | Not annualized. |
e | Annualized for periods of less than one year. |
f | The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying fund in which the Fund is invested. This ratio does not include these indirect fees and expenses. |
g | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
h | Portfolio turnover rates exclude the portfolio activity of the underlying fund in which the Fund is invested. See page 103 for the portfolio turnover rates of the underlying fund. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 45 |
Table of Contents
Notes to Financial Statements (Unaudited)
iSHARES® TRUST
iShares Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust was established as a Delaware statutory trust pursuant to an Agreement and Declaration of Trust dated December 16, 1999.
These financial statements relate only to the following funds (each, a “Fund,” and collectively, the “Funds”):
iShares ETF | Diversification Classification | |
Adaptive Currency Hedged MSCI Japan | Non-diversified | |
Currency Hedged MSCI Australia | Non-diversified | |
Currency Hedged MSCI Canada | Non-diversified | |
Currency Hedged MSCI Japan | Diversified | |
Currency Hedged MSCI Mexico | Non-diversified | |
Currency Hedged MSCI South Korea | Non-diversified | |
Edge MSCI Min Vol Global Currency Hedged | Non-diversified |
The investment objective of each Fund is to seek investment results that correspond generally to the price and yield performance, before fees and expenses, of its underlying index. The investment adviser uses a “passive” or index approach to try to achieve each Fund’s investment objective. Currently each Fund seeks to achieve its investment objective by investing a substantial portion of its assets in an exchange-traded fund of iShares, Inc. (an “underlying fund”), an affiliate of the Funds. The financial statements and schedules of investments for the underlying funds can be found elsewhere in this report and should be read in conjunction with the Funds’ financial statements.
Pursuant to the Trust’s organizational documents, the Funds’ officers and trustees are indemnified against certain liabilities that may arise out of the performance of their duties to the Funds. Additionally, in the normal course of business, the Funds enter into contracts with service providers that contain general indemnification clauses. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred.
1. | SIGNIFICANT ACCOUNTING POLICIES |
The following significant accounting policies are consistently followed by each Fund in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies.
SECURITY VALUATION
Each Fund’s investments are valued at fair value each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date should the reporting period end on a day that the Fund’s listing exchange is not open. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) provides oversight of the valuation of investments for the Funds. The investments of each Fund are valued pursuant to policies and procedures developed by the Global Valuation Committee and approved by the Board of Trustees of the Trust (the “Board”).
46 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
• | Exchange-traded funds and closed-end funds traded on a recognized securities exchange are valued at that day’s last reported trade price or the official closing price, as applicable, on the exchange where the fund is primarily traded. Funds traded on a recognized exchange for which there were no sales on that day are valued at the last traded price. |
• | Open-end U.S. mutual funds (including money market funds) are valued at that day’s published net asset value (“NAV”). |
• | Forward currency contracts are valued based on that day’s prevailing forward exchange rate for the underlying currencies. Interpolated forward exchange rates are used for contracts with interim settlement dates for which quotations are not available. |
In the event that application of these methods of valuation results in a price for an investment which is deemed not to be representative of the fair value of such investment or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board. The fair valuation approaches that may be utilized by the Global Valuation Committee to determine fair value include market approach, income approach and the cost approach. The valuation techniques used under these approaches take into consideration inputs that include but are not limited to (i) attributes specific to the investment; (ii) the principal market for the investment; (iii) the customary participants in the principal market for the investment; (iv) data assumptions by market participants for the investment, if reasonably available; (v) quoted prices for similar investments in active markets; and (vi) other inputs, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates. Valuations based on such inputs are reported to the Board on a quarterly basis.
The Global Valuation Committee employs various methods for calibrating valuation approaches for investments where an active market does not exist, including regular due diligence of the Trust’s pricing vendors, a regular review of key inputs and assumptions, transactional back-testing or disposition analysis to compare unrealized gains and losses to realized gains and losses, reviews of missing or stale prices, reviews of large movements in market values, and reviews of market related activity.
Fair value pricing could result in a difference between the prices used to calculate a Fund’s NAV and the prices used by the Fund’s underlying index, which in turn could result in a difference between the Fund’s performance and the performance of the Fund’s underlying index.
Various inputs are used in determining the fair value of financial instruments. Inputs may be based on independent market data (“observable inputs”) or they may be internally developed (“unobservable inputs”). These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:
• | Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities; |
• | Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability (such as exchange rates, financing terms, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and |
• | Level 3 — Unobservable inputs for the asset or liability based on the best information available in the circumstances, to the extent observable inputs are not available, including the Global Valuation Committee’s assumptions used in determining the fair value of investments. |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgement
NOTESTO FINANCIAL STATEMENTS | 47 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value hierarchy for each Fund’s investments is included in its schedule of investments.
Changes in valuation techniques may result in transfers in or out of an assigned level within the fair value hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of values determined for financial instruments are based on the pricing transparency of the financial instruments and are not necessarily an indication of the risks associated with investing in those securities.
SECURITY TRANSACTIONS AND INCOME RECOGNITION
Security transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recognized on the ex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities as of February 28, 2018 are reflected in tax reclaims receivable. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be re-designated as a return of capital or capital gain. Non-cash dividends, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Distributions received by the Funds may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. Interest income is accrued daily.
FOREIGN CURRENCY TRANSLATION
The accounting records of the Funds are maintained in U.S. dollars. Foreign currencies, as well as investment securities and other assets and liabilities denominated in foreign currencies, are translated into U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of securities, income receipts and expense payments are translated into U.S. dollars on the respective dates of such transactions.
Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of securities. Such fluctuations are reflected by the Funds as a component of realized and unrealized gains and losses from investments for financial reporting purposes. Each Fund reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes. However, the Funds have elected to treat realized gains (losses) from certain foreign currency contracts as capital gain (loss) for U.S. federal income tax purposes.
FOREIGN TAXES
The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Funds invest. These foreign taxes, if any, are paid by the Funds and are reflected in their statements of operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of February 28, 2018, if any, are disclosed in the Funds’ statements of assets and liabilities.
48 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
DISTRIBUTIONS TO SHAREHOLDERS
Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds.
LOANS OF PORTFOLIO SECURITIES
Each Fund may lend its investment securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by an approved bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Funds. Any additional required collateral is delivered to the Funds and any excess collateral is returned by the Funds on the next business day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.
Cash received as collateral for securities on loan may be reinvested in certain short-term instruments either directly on behalf of a fund or through one or more joint accounts or money market funds, including those managed by BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, or its affiliates. As of February 28, 2018, any securities on loan were collateralized by cash and/or U.S. government obligations. Cash collateral received was invested in money market funds managed by BFA and is disclosed in the schedules of investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan for each Fund are also disclosed in its schedule of investments. The total value of any securities on loan as of February 28, 2018 and the total value of the related cash collateral are disclosed in the statements of assets and liabilities. Income earned by the Funds from securities lending is disclosed in the statements of operations.
The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Funds benefit from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of securities loaned if the collateral received does not cover the value of the securities loaned in the event of borrower default. Each Fund could incur a loss if the value of an investment purchased with cash collateral falls below the value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received.
Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (“MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, a Fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. The value of the collateral is typically greater than that of the market value of the securities loaned, leaving the lender with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, the borrower can resell or re-pledge the loaned securities, and a Fund can reinvest cash collateral, or, upon an event of default, resell or re-pledge the collateral.
NOTESTO FINANCIAL STATEMENTS | 49 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
2. | INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES |
Pursuant to an Investment Advisory Agreement with the Trust, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent trustees).
For its investment advisory services to the iShares Adaptive Currency Hedged MSCI Japan ETF, BFA is entitled to an annual investment advisory fee of 0.62%, accrued daily and paid monthly by the Fund, based on the average daily net assets of the Fund. In addition, the Fund may incur its pro rata share of fees and expenses attributable to its investments in other investment companies (“acquired fund fees and expenses”). The total of the investment advisory fee and acquired fund fees and expenses are a fund’s total annual operating expenses. BFA has contractually agreed to waive a portion of its investment advisory fee for the Fund through December 31, 2020 so that the Fund’s total annual operating expenses after fee waiver is equal to the acquired fund fees and expenses attributable to the Fund’s investment in the iShares MSCI Japan ETF (“EWJ”), after taking into account any fee waivers by EWJ.
For its investment advisory services to the iShares Currency Hedged MSCI Australia ETF, BFA is entitled to an annual investment advisory fee of 0.62%, accrued daily and paid monthly Fund, based on the average daily net assets of the Fund. In addition, the Fund may incur acquired fund fees and expenses. BFA has contractually agreed to waive a portion of its investment advisory fee for the Fund through December 31, 2020 so that the Fund’s total annual operating expenses after fee waiver is equal to the acquired fund fees and expenses attributable to the Fund’s investment in the iShares MSCI Australia ETF (“EWA”), after taking into account any fee waivers by EWA, plus 0.03%.
For its investment advisory services to the iShares Currency Hedged MSCI Canada ETF, BFA is entitled to an annual investment advisory fee of 0.62%, accrued daily and paid monthly by the Fund, based on the average daily net assets of the Fund. In addition, the Fund may incur acquired fund fees and expenses. BFA has contractually agreed to waive a portion of its investment advisory fee for the Fund through December 31, 2020 so that the Fund’s total annual operating expenses after fee waiver is equal to the acquired fund fees and expenses attributable to the Fund’s investment in the iShares MSCI Canada ETF (“EWC”), after taking into account any fee waivers by EWC, plus 0.03%.
For its investment advisory services to the iShares Currency Hedged MSCI Japan ETF, BFA is entitled to an annual investment advisory fee of 0.53%, accrued daily and paid monthly by the Fund, based on the average daily net assets of the Fund. In addition, the Fund may incur acquired fund fees and expenses. BFA has contractually agreed to waive a portion of its investment advisory fee for the Fund through December 31, 2020 in an amount equal to the acquired fund fees and expenses, if any, attributable to the Fund’s investments in other iShares funds, provided that the waiver be no greater than the Fund’s investment advisory fee of 0.53%. BFA has also contractually agreed to waive an additional portion of its investment advisory fee for the Fund through December 31, 2020 such that the Fund’s total annual operating expenses after fee waiver will be equal to the greater of the acquired fund fees and expenses or 0.48%.
For its investment advisory services to the iShares Currency Hedged MSCI Mexico ETF, BFA is entitled to an annual investment advisory fee of 0.62%, accrued daily and paid monthly by the Fund, based on the average daily net assets of the Fund. In addition, the Fund may incur acquired fund fees and expenses. BFA has contractually agreed to waive a portion of its investment advisory fee for the Fund through December 31, 2020 so that the Fund’s total annual operating expenses after fee waiver is equal to the acquired fund fees and expenses attributable to the Fund’s investment in the iShares MSCI Mexico ETF (“EWW”), after taking into account any fee waivers by EWW, plus 0.03%.
50 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
For its investment advisory services to the iShares Currency Hedged MSCI South Korea ETF, BFA is entitled to an annual investment advisory fee of 0.77%, accrued daily and paid monthly by the Fund, based on the average daily net assets of the Fund. In addition, the Fund may incur acquired fund fees and expenses. BFA has contractually agreed to waive a portion of its investment advisory fee for the Fund through December 31, 2020 so that the Fund’s total annual operating expenses after fee waiver is equal to the acquired fund fees and expenses attributable to the Fund’s investment in the iShares MSCI South Korea ETF (“EWY”), after taking into account any fee waivers by EWY, plus 0.03%. BFA has also contractually agreed to an additional reduction in the investment advisory fee of 0.03% through December 31, 2020.
For its investment advisory services to the iShares Edge MSCI Min Vol Global Currency Hedged ETF, BFA is entitled to an annual investment advisory fee of 0.38%, accrued daily and paid monthly by the Fund, based on the average daily net assets of the Fund. In addition, the Fund may incur acquired fund fees and expenses. BFA has contractually agreed to waive a portion of its investment advisory fee for the Fund through December 31, 2020 so that the Fund’s total annual operating expenses after fee waiver is equal to the acquired fund fees and expenses, if any, attributable to Fund’s investment in the iShares Edge MSCI Min Vol Global ETF (“ACWV”), after taking into account any fee waivers by ACWV, plus 0.03%.
The U.S. Securities and Exchange Commission has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan in a money market fund managed by BFA, however, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04% (the “collateral investment fees”). Securities lending income is equal to the total of income earned from the reinvestment of cash collateral (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. The Funds retain a portion of securities lending income and remit the remaining portion to BTC as compensation for its services as securities lending agent.
Pursuant to a securities lending agreement, each Fund retains 80% of securities lending income and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees. In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in a given calendar year exceeds the aggregate securities lending income generated across the iShares ETF Complex in the calendar year 2013, each Fund, pursuant to a securities lending agreement, will retain for the remainder of that calendar year 85% of securities lending income and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
For the six months ended February 28, 2018, the total of securities lending agent services and collateral investment fees paid were as follows:
iShares ETF | Fees Paid to BTC | |||
Adaptive Currency Hedged MSCI Japan | $ | 192 | ||
Currency Hedged MSCI Canada | 58 | |||
Currency Hedged MSCI Mexico | 936 |
BlackRock Investments, LLC, an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.
Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is included in “Dividends – affiliated” in the statements of operations.
NOTESTO FINANCIAL STATEMENTS | 51 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
It is possible that, from time to time, BlackRock and/or funds managed by BFA or an affiliate (collectively, “Affiliates”) may purchase and hold shares of a Fund. Affiliates reserve the right, subject to compliance with applicable law, to sell into the market or redeem in Creation Units through an authorized participant at any time some or all of the shares of the Fund acquired for their own accounts. A large sale or redemption of shares of a Fund by Affiliates could significantly reduce the asset size of the Fund, which might have an adverse effect on the Fund. As of February 28, 2018, the number of affiliated accounts that individually that individually represent more than 10% ownership of a Fund’s total shares outstanding and the aggregate percentage of net assets represented by such holdings were as follows:
iShares ETF | Number of Affiliated | Aggregate Affiliated Ownership Percentage | ||||||
Adaptive Currency Hedged MSCI Japan | 1 | 64 | % | |||||
Currency Hedged MSCI Mexico | 1 | 30 | % |
The PNC Financial Services Group, Inc. is the largest stockholder of BlackRock and is considered to be an affiliate of the Funds for 1940 Act purposes.
Certain trustees and officers of the Trust are also officers of BTC and/or BFA.
3. | INVESTMENT PORTFOLIO TRANSACTIONS |
Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the six months ended February 28, 2018 were as follows:
iShares ETF | Purchases | Sales | ||||||
Adaptive Currency Hedged MSCI Japan | $ | 136,608 | $ | 181,692 | ||||
Currency Hedged MSCI Australia | 119,592 | 108,520 | ||||||
Currency Hedged MSCI Canada | 392,538 | 308,967 | ||||||
Currency Hedged MSCI Japan | 62,437,693 | 82,215,308 | ||||||
Currency Hedged MSCI Mexico | 253,303 | 223,853 | ||||||
Currency Hedged MSCI South Korea | 83,123 | 151,402 | ||||||
Edge MSCI Min Vol Global Currency Hedged | 54,135 | 75,383 |
In-kind transactions (see Note 4) for the six months ended February 28, 2018 were as follows:
iShares ETF | In-kind Purchases | In-kind Sales | ||||||
Adaptive Currency Hedged MSCI Japan | $ | — | $ | 1,375,110 | ||||
Currency Hedged MSCI Canada | 3,857,087 | — | ||||||
Currency Hedged MSCI Japan | 294,700,476 | 517,709,278 | ||||||
Currency Hedged MSCI Mexico | — | 1,036,864 |
52 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
4. | CAPITAL SHARE TRANSACTIONS |
Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable. Transactions in capital shares for each Fund are disclosed in detail in the statements of changes in net assets.
The consideration for the purchase of Creation Units of a fund in the Trust generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Trust may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to State Street Bank and Trust Company, the Trust’s administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in “Proceeds from shares sold” in the statements of changes in net assets.
5. | FORWARD CURRENCY CONTRACTS |
Each Fund uses forward currency contracts to hedge the currency exposure of non-U.S. dollar-denominated securities held by the Fund or its underlying fund. A forward currency contract is an obligation to purchase or sell a currency against another currency at a specified future date at an agreed upon price and quantity. Forward currency contracts are traded over-the-counter (“OTC”) and not on an organized exchange.
The contract is marked-to-market daily and the change in market value is recorded as unrealized appreciation or depreciation. When the contract is closed, a realized gain or loss equal to the difference between the value at the time it was opened and the value at the time it was closed is recorded. Non-deliverable forward currency contracts (“NDFs”) are settled with the counterparty in cash without the delivery of foreign currency. Losses may arise if there are unfavorable movements in the value of a foreign currency relative to the U.S. dollar or if the counterparties do not meet the terms of the agreement. A fund’s use of forward currency contracts also involves the risks of imperfect correlation between the value of its currency positions and its other investments or the fund failing to close out its position due to an illiquid market.
NOTESTO FINANCIAL STATEMENTS | 53 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
The following table shows the value of forward currency contracts held as of February 28, 2018 and the related locations in the statements of assets and liabilities, presented by risk exposure category:
Assets | ||||||||||||
iShares Adaptive Currency Hedged MSCI Japan ETF | iShares Hedged MSCI Australia ETF | iShares Currency Hedged MSCI Canada ETF | ||||||||||
Forward currency contracts: | ||||||||||||
Unrealized appreciation on forward currency contracts/Net assets consist of – net unrealized appreciation | $ | 57,625 | $ | 61,559 | $ | 293,668 | ||||||
|
|
|
|
|
| |||||||
iShares Currency Hedged MSCI Japan ETF | iShares Hedged MSCI Mexico ETF | iShares Currency Hedged MSCI South Korea ETF | ||||||||||
Forward currency contracts: | ||||||||||||
Unrealized appreciation on forward currency contracts/Net assets consist of – net unrealized appreciation | $ | 5,594,486 | $ | 23,242 | $ | 33,166 | ||||||
|
|
|
|
|
| |||||||
iShares Edge MSCI | ||||||||||||
Forward currency contracts: | ||||||||||||
Unrealized appreciation on forward currency contracts/Net assets consist of – net unrealized appreciation | $ | 15,923 | ||||||||||
|
| |||||||||||
54 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
Liabilities | ||||||||||||
iShares Japan ETF | iShares Australia ETF | iShares Currency Hedged MSCI Canada ETF | ||||||||||
Forward currency contracts: | ||||||||||||
Unrealized depreciation on forward currency contracts/Net assets consist of – net unrealized appreciation | $ | 67,793 | $ | 15,124 | $ | 53,864 | ||||||
|
|
|
|
|
| |||||||
iShares Currency Hedged MSCI Japan ETF | iShares Hedged MSCI Mexico ETF | iShares Currency Hedged MSCI South Korea ETF | ||||||||||
Forward currency contracts: | ||||||||||||
Unrealized depreciation on forward currency contracts/Net assets consist of – net unrealized appreciation | $ | 24,304,630 | $ | 15,693 | $ | 10,772 | ||||||
|
|
|
|
|
| |||||||
iShares Edge MSCI | ||||||||||||
Forward currency contracts: | ||||||||||||
Unrealized depreciation on forward currency contracts/Net assets consist of – net unrealized appreciation | $ | 12,428 | ||||||||||
|
| |||||||||||
The following table shows the realized and unrealized gains (losses) on forward currency contracts held during the six months ended February 28, 2018 and the related locations in the statements of operations, presented by risk exposure category:
Net Realized Gain (Loss) | ||||||||||||
iShares Adaptive Currency Hedged MSCI Japan ETF | iShares Currency Hedged MSCI Australia ETF | iShares Currency Hedged MSCI Canada ETF | ||||||||||
Forward currency contracts | $ | (33,031 | ) | $ | (11,409 | ) | $ | (96,209 | ) | |||
|
|
|
|
|
| |||||||
NOTESTO FINANCIAL STATEMENTS | 55 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
iShares Hedged MSCI Japan ETF | iShares Hedged MSCI Mexico ETF | iShares Hedged MSCI South Korea | ||||||||||
Forward currency contracts | $ | (17,101,455 | ) | $ | 49,037 | $ | (80,643 | ) | ||||
|
|
|
|
|
| |||||||
iShares Edge MSCI | ||||||||||||
Forward currency contracts | $ | (28,185 | ) | |||||||||
|
| |||||||||||
Net Change in Unrealized Appreciation/Depreciation | ||||||||||||
iShares Adaptive Currency Hedged MSCI Japan ETF | iShares Hedged MSCI Australia ETF | iShares Currency Hedged MSCI Canada ETF | ||||||||||
Forward currency contracts | $ | 998 | $ | 31,179 | $ | 248,806 | ||||||
|
|
|
|
|
| |||||||
iShares Currency Hedged MSCI Japan ETF | iShares Hedged MSCI Mexico ETF | iShares Currency Hedged MSCI South Korea ETF | ||||||||||
Forward currency contracts | $ | (5,386,222 | ) | $ | 5,172 | $ | 21,768 | |||||
|
|
|
|
|
| |||||||
iShares Edge MSCI Min Vol Global Currency Hedged ETF | ||||||||||||
Forward currency contracts | $ | 10,692 | ||||||||||
|
| |||||||||||
56 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
The following table shows the average quarter-end balances of outstanding forward currency contracts for the six months ended February 28, 2018:
iShares Currency Hedged MSCI Japan ETF | iShares Hedged MSCI Australia ETF | iShares Hedged MSCI Canada ETF | ||||||||||
Average amounts purchased in U.S. dollars | $ | 4,588,989 | $ | 2,792,017 | $ | 4,796,331 | ||||||
Average amounts sold in U.S. dollars | $ | 7,305,315 | $ | 4,001,733 | $ | 9,583,396 | ||||||
iShares Currency Hedged MSCI Japan ETF | iShares Currency Hedged MSCI Mexico ETF | iShares Currency Hedged MSCI South Korea ETF | ||||||||||
Average amounts purchased in U.S. dollars | $ | 1,375,158,881 | $ | 3,965,227 | $ | 2,707,193 | ||||||
Average amounts sold in U.S. dollars | $ | 2,524,370,597 | $ | 6,337,180 | $ | 4,202,247 | ||||||
iShares Edge MSCI | ||||||||||||
Average amounts purchased in U.S. dollars | $ | 1,646,646 | ||||||||||
Average amounts sold in U.S. dollars | $ | 2,856,649 |
The Funds’ risk of loss from counterparty credit risk on OTC derivatives is generally limited to the aggregate unrealized gain netted against any collateral held by the Funds. In order to better define their contractual rights and to secure rights that will help the Funds to mitigate their counterparty risk, the Funds may enter into an International Swaps and Derivatives Association, Inc. master agreement (“ISDA Master Agreement”) or similar agreement with their derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between the Funds and a counterparty that governs OTC derivatives and foreign exchange contracts and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default including the bankruptcy or insolvency of the counterparty. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy or insolvency.
The collateral requirements under an ISDA Master Agreement are typically calculated by netting the mark-to-market amount for each transaction under such agreement, and comparing that amount to the value of any collateral currently pledged by the parties. Except for NDFs, the forward currency contracts held by the Funds generally do not require collateral. Cash collateral pledged to the counterparty, if any, is presented as “Cash pledged to broker for forward currency contracts” on the statement of assets and liabilities. Cash received as collateral from the counterparty may be reinvested in money market funds, including those managed by the Funds’ investment adviser, or its affiliates. Such collateral, if any, is presented in the statement of assets and liabilities as “Investments in securities – affiliated” and “Payable due to broker for collateral on forwards.” To the extent amounts due to the Funds from the counterparty are not fully collateralized, contractually or otherwise, the Funds bear the risk of loss from counterparty non-performance. The Funds attempt to mitigate counterparty risk by only entering into agreements with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties.
NOTESTO FINANCIAL STATEMENTS | 57 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
For financial reporting purposes, the Funds do not offset financial assets and financial liabilities that are subject to netting arrangements in the statements of assets and liabilities.
The following table presents the exposure of the open forward currency contracts that are subject to potential offset in the statements of assets and liabilities as of February 28, 2018:
Derivative Assets Subject to Offsetting | Derivatives Available for Offset | Cash Collateral Received | Net Amount of Derivative Assets | |||||||||||||
iShares Adaptive Currency Hedged MSCI Japan ETF | ||||||||||||||||
Forward currency contracts | $ | 57,625 | $ | (57,625 | ) | $ | — | $ | — | |||||||
|
|
|
|
|
|
|
| |||||||||
iShares Currency Hedged MSCI Australia ETF | ||||||||||||||||
Forward currency contracts | $ | 61,559 | $ | (15,124 | ) | $ | — | $ | 46,435 | |||||||
|
|
|
|
|
|
|
| |||||||||
iShares Currency Hedged MSCI Canada ETF | ||||||||||||||||
Forward currency contracts | $ | 293,668 | $ | (53,864 | ) | $ | — | $ | 239,804 | |||||||
|
|
|
|
|
|
|
| |||||||||
iShares Currency Hedged MSCI Japan ETF | ||||||||||||||||
Forward currency contracts | $ | 5,594,486 | $ | (5,246,367 | ) | $ | — | $ | 348,119 | |||||||
|
|
|
|
|
|
|
| |||||||||
iShares Currency Hedged MSCI Mexico ETF | ||||||||||||||||
Forward currency contracts | $ | 23,242 | $ | (15,693 | ) | $ | — | $ | 7,549 | |||||||
|
|
|
|
|
|
|
| |||||||||
iShares Currency Hedged MSCI South Korea ETF | ||||||||||||||||
Forward currency contracts | $ | 33,166 | $ | (10,772 | ) | $ | — | $ | 22,394 | |||||||
|
|
|
|
|
|
|
| |||||||||
iShares Edge MSCI Min Vol Global Currency Hedged ETF | ||||||||||||||||
Forward currency contracts | $ | 15,923 | $ | (12,263 | ) | $ | — | $ | 3,660 | |||||||
|
|
|
|
|
|
|
| |||||||||
Derivative Liabilities Subject to Offsetting | Derivatives Available for Offset | Cash Collateral Pledged a | Net Amount of Derivative Liabilities | |||||||||||||
iShares Adaptive Currency Hedged MSCI Japan ETF | ||||||||||||||||
Forward currency contracts | $ | 67,793 | $ | (57,625 | ) | $ | — | $ | 10,168 | |||||||
|
|
|
|
|
|
|
| |||||||||
iShares Currency Hedged MSCI Australia ETF | ||||||||||||||||
Forward currency contracts | $ | 15,124 | $ | (15,124 | ) | $ | — | $ | — | |||||||
|
|
|
|
|
|
|
| |||||||||
iShares Currency Hedged MSCI Canada ETF | ||||||||||||||||
Forward currency contracts | $ | 53,864 | $ | (53,864 | ) | $ | — | $ | — | |||||||
|
|
|
|
|
|
|
| |||||||||
iShares Currency Hedged MSCI Japan ETF | ||||||||||||||||
Forward currency contracts | $ | 24,304,630 | $ | (5,246,367 | ) | $ | (1,160,000 | ) | $ | 17,898,263 | ||||||
|
|
|
|
|
|
|
| |||||||||
iShares Currency Hedged MSCI Mexico ETF | ||||||||||||||||
Forward currency contracts | $ | 15,693 | $ | (15,693 | ) | $ | — | $ | — | |||||||
|
|
|
|
|
|
|
| |||||||||
iShares Currency Hedged MSCI South Korea ETF | ||||||||||||||||
Forward currency contracts | $ | 10,772 | $ | (10,772 | ) | $ | — | $ | — | |||||||
|
|
|
|
|
|
|
| |||||||||
iShares Edge MSCI Min Vol Global Currency Hedged ETF | ||||||||||||||||
Forward currency contracts | $ | 12,428 | $ | (12,263 | ) | $ | — | $ | 165 | |||||||
|
|
|
|
|
|
|
| |||||||||
a | Excess of collateral pledged is not shown for financial reporting purposes. |
58 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
6. | PRINCIPAL RISKS |
In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Each Fund’s prospectus provides details of the risks to which the Fund is subject.
BFA uses a “passive” or index approach to try to achieve each Fund’s investment objective following the securities included in its underlying index during upturns as well as downturns. BFA does not take steps to reduce market exposure or to lessen the effects of a declining market. Divergence from the underlying index and the composition of the portfolio is monitored by BFA.
MARKET RISK
Market risk arises mainly from uncertainty about future values of financial instruments influenced by price, currency and interest rate movements. It represents the potential loss a fund may suffer through holding market positions in the face of market movements. A fund is exposed to market risk by its investment in equity, fixed income and/or financial derivative instruments or by its investment in underlying funds. The fair value of securities held by a fund may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. The extent of a fund’s exposure to market risk is the market value of the investments held as shown in the fund’s schedule of investments.
A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its schedule of investments.
CREDIT RISK
Credit risk is the risk that an issuer or guarantor of debt instruments or the counterparty to a financial transaction, including derivatives contracts, repurchase agreements or loans of portfolio securities, is unable or unwilling to make timely interest and/or principal payments or to otherwise honor its obligations. BFA and its affiliates manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose a fund to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of a fund’s exposure to credit and counterparty risks with respect to those financial assets is approximated by their value recorded in its statement of assets and liabilities.
7. | INCOME TAX INFORMATION |
Each Fund is treated as an entity separate from the Trust’s other funds for federal income tax purposes. It is the policy of each Fund to qualify as a regulated investment company by complying with the provisions applicable to regulated investment companies, as defined under Subchapter M of the Internal Revenue Code of 1986, as amended, and to annually distribute substantially all of its ordinary income and any net capital gains (taking into account any capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income and excise taxes. Accordingly, no provision for federal income taxes is required.
NOTESTO FINANCIAL STATEMENTS | 59 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
For purposes of U.S. GAAP, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or NAV per share.
The tax character of current year distributions will be determined at the end of the current fiscal year.
As of August 31, 2017, the Funds’ fiscal year end, the following funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:
iShares ETF | Non- Expiring | |||
Adaptive Currency Hedged MSCI Japan | $ | 169,254 | ||
Currency Hedged MSCI Australia | 676,903 | |||
Currency Hedged MSCI Canada | 275,892 | |||
Currency Hedged MSCI Japan | 97,548,097 | |||
Currency Hedged MSCI Mexico | 385,579 | |||
Edge MSCI Min Vol Global Currency Hedged | 39,305 |
As of February 28, 2018, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives) for U.S. federal income tax purposes were as follows:
iShares ETF | Tax Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||
Adaptive Currency Hedged MSCI Japan | $ | 5,486,998 | $ | 911,908 | $ | (78,905 | ) | $ | 833,003 | |||||||
Currency Hedged MSCI Australia | 1,058,459 | 184,831 | (18,510 | ) | 166,321 | |||||||||||
Currency Hedged MSCI Canada | 6,275,570 | 321,523 | (60,216 | ) | 261,307 | |||||||||||
Currency Hedged MSCI Japan | 966,510,541 | 133,000,334 | (27,720,167 | ) | 105,280,167 | |||||||||||
Currency Hedged MSCI Mexico | 1,943,633 | 92,401 | (90,964 | ) | 1,437 | |||||||||||
Currency Hedged MSCI South Korea | 1,187,826 | 327,315 | (10,820 | ) | 316,495 | |||||||||||
Edge MSCI Min Vol Global Currency Hedged | 2,547,371 | 358,825 | (14,654 | ) | 344,171 |
Management has analyzed tax laws and regulations and their application to the Funds as of February 28, 2018, inclusive of the open tax return years, and does not believe there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.
8. | LEGAL PROCEEDINGS |
On June 16, 2016, investors (the “Plaintiffs”) in certain iShares funds (iShares Core S&P Small-Cap ETF, iShares Russell 1000 Growth ETF, iShares Core S&P 500 ETF, iShares Russell Mid-Cap Growth ETF, iShares Russell Mid-Cap ETF, iShares Russell Mid-Cap Value ETF, iShares Select Dividend ETF, iShares Morningstar Mid-Cap ETF, iShares Morningstar Large-Cap ETF, iShares U.S. Aerospace & Defense ETF and iShares U.S. Preferred Stock ETF) filed a putative class action lawsuit against iShares Trust, BlackRock, Inc. and certain of its advisory affiliates, and certain directors/trustees and officers of the Funds (collectively, “Defendants”) in California State Court. The lawsuit alleges the Defendants violated federal securities laws by failing to adequately disclose in the prospectuses issued by the funds noted above the risks of using stop-loss orders in the event of a ‘flash crash’, such as the one that occurred on May 6, 2010. On September 18, 2017, the court issued a Statement of Decision
60 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
holding that the Plaintiffs lack standing to assert their claims. On October 11, 2017, the court entered final judgment dismissing all of the Plaintiffs’ claims with prejudice. Plaintiffs have appealed the court’s decision.
9. | SUBSEQUENT EVENTS |
Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or disclosure in the financial statements.
NOTESTO FINANCIAL STATEMENTS | 61 |
Table of Contents
Supplemental Information (Unaudited)
iSHARES® TRUST
Section 19(a) Notices
The amounts and sources of distributions reported are estimates and are provided pursuant to regulatory requirements and are not being provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon each Fund’s investment experience during the year and may be subject to changes based on the tax regulations. Shareholders will receive a Form 1099-DIV each calendar year that will inform them how to report these distributions for federal income tax purposes.
Total Cumulative Distributions for the Fiscal Year-to-Date | % Breakdown of the Total Cumulative Distributions for the Fiscal Year-to-Date | |||||||||||||||||||||||||||||||
iShares ETF | Net Investment Income | Net Realized Capital Gains | Return of Capital | Total Per Share | Net Investment Income | Net Realized Capital Gains | Return of Capital | Total Per Share | ||||||||||||||||||||||||
Adaptive Currency Hedged MSCI Japan | $ | 0.160162 | $ | — | $ | 0.042725 | $ | 0.202887 | 79 | % | — | % | 21 | % | 100 | % | ||||||||||||||||
Currency Hedged MSCI Australia | 0.469446 | — | 0.049062 | 0.518508 | 91 | — | 9 | 100 | ||||||||||||||||||||||||
Currency Hedged MSCI Canada | 0.189966 | — | 0.108438 | 0.298404 | 64 | — | 36 | 100 | ||||||||||||||||||||||||
Currency Hedged MSCI Japan | 0.151412 | — | 0.048022 | 0.199434 | 76 | — | 24 | 100 | ||||||||||||||||||||||||
Currency Hedged MSCI South Korea | 0.326593 | — | 0.498627 | 0.825220 | 40 | — | 60 | 100 | ||||||||||||||||||||||||
Edge MSCI Min Vol Global Currency Hedged | 0.253112 | — | 0.040528 | 0.293640 | 86 | — | 14 | 100 |
62 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Electronic Delivery
Shareholders can sign up for email notifications announcing that the shareholder report or prospectus has been posted on the iShares website at www.iShares.com. Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail.
To enroll in electronic delivery:
• | Go to www.icsdelivery.com. |
• | If your brokerage firm is not listed, electronic delivery may not be available. Please contact your broker-dealer or financial advisor. |
Householding
Householding is an option available to certain fund investors. Householding is a method of delivery, based on the preference of the individual investor, in which a single copy of certain shareholder documents can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.
Availability of Quarterly Schedule of Investments
The iShares Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The iShares Funds’ Forms N-Q are available on the SEC’s website and may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The iShares Funds also disclose their complete schedule of portfolio holdings on a daily basis on the iShares website.
Availability of Proxy Voting Policies and Proxy Voting Records
A description of the policies and procedures that the iShares Funds use to determine how to vote proxies relating to portfolio securities and information about how the iShares Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request (1) by calling toll-free 1-800-474-2737; (2) on the iShares website at www.iShares.com; and (3) on the SEC website at www.sec.gov.
GENERAL INFORMATION | 63 |
Table of Contents
Additional Financial Information
February 28, 2018
iShares, Inc.
iShares Edge MSCI Min Vol Global ETF | ACWV | Cboe BZX
iShares MSCI Australia ETF I | EWA | NYSE Arca
iShares MSCI Canada ETF I | EWC | NYSE Arca
iShares MSCI Japan ETF I | EWJ | NYSE Arca
iShares MSCI Mexico ETF I | EWW | NYSE Arca
iShares MSCI South Korea ETF I | EWY | NYSE Arca
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® EDGE MSCI MIN VOL GLOBAL ETF
February 28, 2018
Security | Shares | Value | ||||||
COMMON STOCKS — 99.62% |
| |||||||
BELGIUM — 0.31% |
| |||||||
Colruyt SA | 36,192 | $ | 1,956,797 | |||||
Proximus SADP | 139,360 | 4,485,521 | ||||||
UCB SA | 53,664 | 4,455,926 | ||||||
|
| |||||||
10,898,244 | ||||||||
CANADA — 2.92% |
| |||||||
Agnico Eagle Mines Ltd. | 207,584 | 7,920,382 | ||||||
Barrick Gold Corp. | 596,960 | 6,885,760 | ||||||
BCE Inc. | 225,056 | 9,835,826 | ||||||
Fairfax Financial Holdings Ltd. | 12,896 | 6,311,980 | ||||||
First Capital Realty Inc. | 121,056 | 1,886,673 | ||||||
Franco-Nevada Corp. | 274,560 | 19,267,519 | ||||||
Goldcorp Inc. | 529,152 | 6,632,209 | ||||||
Intact Financial Corp. | 210,496 | 16,304,466 | ||||||
RioCan REIT | 98,592 | 1,807,411 | ||||||
Rogers Communications Inc. Class B | 86,944 | 3,923,285 | ||||||
Shaw Communications Inc. Class B | 174,720 | 3,387,088 | ||||||
TELUS Corp. | 303,264 | 10,962,804 | ||||||
Thomson Reuters Corp. | 169,312 | 6,680,778 | ||||||
101,806,181 | ||||||||
CHILE — 0.51% |
| |||||||
Banco de Chile | 37,665,472 | 6,392,749 | ||||||
SACI Falabella | 1,106,976 | 11,203,229 | ||||||
|
| |||||||
17,595,978 | ||||||||
CHINA — 4.21% |
| |||||||
Agricultural Bank of China Ltd. Class H | 7,488,000 | 4,162,499 | ||||||
Alibaba Group Holding Ltd. ADRa,b | 13,728 | 2,555,330 | ||||||
Alibaba Pictures Group Ltd.a,b | 20,800,000 | 2,844,108 | ||||||
ANTA Sports Products Ltd. | 416,000 | 2,062,643 | ||||||
China Conch Venture Holdings Ltd. | 1,872,000 | 5,633,726 | ||||||
China Construction Bank Corp. Class H | 8,736,000 | 9,098,488 | ||||||
China Huarong Asset Management Co. Ltd. Class Hc | 6,240,000 | 2,830,818 | ||||||
China Huishan Dairy Holdings Co. Ltd.a,b,d | 3,106,800 | 4 | ||||||
China Mobile Ltd. | 2,288,000 | 21,461,056 |
Security | Shares | Value | ||||||
China Resources Beer Holdings Co. Ltd. | 832,000 | $ | 3,210,918 | |||||
China Resources Pharmaceutical Group Ltd.a,c | 2,912,000 | 3,929,654 | ||||||
China Telecom Corp. Ltd. Class H | 8,320,000 | 3,668,102 | ||||||
China Unicom Hong Kong Ltd.b | 1,664,000 | 2,156,206 | ||||||
COSCO SHIPPING Ports Ltd.a | 1,664,000 | 1,618,218 | ||||||
CSPC Pharmaceutical Group Ltd. | 5,824,000 | 13,456,087 | ||||||
Fullshare Holdings Ltd.a | 1,117,500 | 628,347 | ||||||
Guangdong Investment Ltd. | 5,364,000 | 8,211,918 | ||||||
Jiangsu Expressway Co. Ltd. Class H | 1,860,000 | 2,895,071 | ||||||
Kingboard Chemical Holdings Ltd. | 416,000 | 2,113,146 | ||||||
Lenovo Group Ltd.a | 4,160,000 | 2,174,281 | ||||||
Shandong Weigao Group Medical Polymer Co. Ltd. Class H | 3,328,000 | 2,275,287 | ||||||
Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd. Class B | 1,747,431 | 2,540,765 | ||||||
Shenzhou International Group Holdings Ltd.a | 832,000 | 8,239,940 | ||||||
Sihuan Pharmaceutical Holdings Group Ltd. | 4,992,000 | 1,824,482 | ||||||
Sinopec Shanghai Petrochemical Co. Ltd. Class H | 5,824,000 | 3,497,987 | ||||||
Tencent Holdings Ltd. | 332,800 | 18,380,913 | ||||||
Yum China Holdings Inc. | 247,104 | 10,704,545 | ||||||
Zijin Mining Group Co. Ltd. Class H | 9,152,000 | 4,210,343 | ||||||
|
| |||||||
146,384,882 | ||||||||
CZECH REPUBLIC — 0.07% |
| |||||||
Komercni Banka AS | 51,168 | 2,275,531 | ||||||
|
| |||||||
2,275,531 | ||||||||
DENMARK — 0.99% |
| |||||||
Chr Hansen Holding A/S | 42,016 | 3,503,169 | ||||||
Coloplast A/S Class B | 58,240 | 4,937,922 | ||||||
H Lundbeck A/S | 107,744 | 5,660,054 | ||||||
Orsted A/Sc | 232,544 | 14,509,240 | ||||||
William Demant Holding A/Sa,b | 163,488 | 5,870,228 | ||||||
|
| |||||||
34,480,613 | ||||||||
GERMANY — 0.22% |
| |||||||
MAN SE | 49,920 | 5,698,832 |
SCHEDULESOF INVESTMENTS | 65 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® EDGE MSCI MIN VOL GLOBAL ETF
February 28, 2018
Security | Shares | Value | ||||||
Uniper SE | 65,312 | $ | 1,985,869 | |||||
|
| |||||||
7,684,701 | ||||||||
HONG KONG — 3.47% |
| |||||||
CK Infrastructure Holdings Ltd.a | 1,040,000 | 8,731,678 | ||||||
CLP Holdings Ltd. | 2,288,000 | 23,127,650 | ||||||
Hang Seng Bank Ltd. | 1,164,800 | 28,951,427 | ||||||
HK Electric Investments & HK Electric Investments Ltd.a,c | 4,160,000 | 3,902,010 | ||||||
HKT Trust & HKT Ltd. | 5,824,000 | 7,442,526 | ||||||
Hong Kong & China Gas Co. Ltd. | 4,992,852 | 9,876,854 | ||||||
Jardine Strategic Holdings Ltd. | 41,600 | 1,656,928 | ||||||
Link REIT | 1,040,000 | 8,891,161 | ||||||
MTR Corp. Ltd.a | 2,288,000 | 12,133,976 | ||||||
PCCW Ltd.a | 6,656,000 | 3,793,562 | ||||||
Power Assets Holdings Ltd. | 832,000 | 7,075,716 | ||||||
Yue Yuen Industrial Holdings Ltd. | 1,248,000 | 5,342,670 | ||||||
|
| |||||||
120,926,158 | ||||||||
INDIA — 0.37% |
| |||||||
Wipro Ltd. ADRa | 2,335,131 | 12,866,572 | ||||||
|
| |||||||
12,866,572 | ||||||||
INDONESIA — 0.85% |
| |||||||
Bank Central Asia Tbk PT | 8,361,600 | 14,094,634 | ||||||
Hanjaya Mandala Sampoerna Tbk PT | 11,356,800 | 3,981,509 | ||||||
Kalbe Farma Tbk PT | 13,977,600 | 1,626,662 | ||||||
Telekomunikasi Indonesia Persero Tbk PT | 18,844,800 | 5,482,722 | ||||||
Unilever Indonesia Tbk PT | 1,164,800 | 4,566,514 | ||||||
|
| |||||||
29,752,041 | ||||||||
IRELAND — 0.39% |
| |||||||
Kerry Group PLC Class A | 94,432 | 9,438,512 | ||||||
Ryanair Holdings PLC ADRb | 34,112 | 4,136,421 | ||||||
|
| |||||||
13,574,933 | ||||||||
ISRAEL — 0.43% |
| |||||||
Azrieli Group Ltd. | 56,992 | 2,816,344 | ||||||
Bank Hapoalim BM | 344,032 | 2,465,470 | ||||||
Bank Leumi Le-Israel BM | 393,120 | 2,385,048 | ||||||
Check Point Software Technologies Ltd.a,b | 33,280 | 3,457,459 | ||||||
Mizrahi Tefahot Bank Ltd. | 214,240 | 3,972,123 | ||||||
|
| |||||||
15,096,444 | ||||||||
ITALY — 0.45% |
| |||||||
Luxottica Group SpA | 69,056 | 4,157,306 | ||||||
Recordati SpA | 47,424 | 1,703,409 |
Security | Shares | Value | ||||||
Snam SpA | 2,179,008 | $ | 9,782,729 | |||||
|
| |||||||
15,643,444 | ||||||||
JAPAN — 13.29% |
| |||||||
ABC-Mart Inc. | 46,500 | 2,963,310 | ||||||
Ajinomoto Co. Inc. | 208,000 | 3,814,779 | ||||||
ANA Holdings Inc. | 166,400 | 6,710,269 | ||||||
Asahi Group Holdings Ltd. | 41,600 | 2,140,721 | ||||||
Astellas Pharma Inc. | 790,400 | 11,707,298 | ||||||
Benesse Holdings Inc. | 124,800 | 4,508,730 | ||||||
Canon Inc. | 582,400 | 22,356,126 | ||||||
Chugai Pharmaceutical Co. Ltd. | 83,200 | 4,327,445 | ||||||
Daiichi Sankyo Co. Ltd. | 226,600 | 8,086,714 | ||||||
Daito Trust Construction Co. Ltd. | 41,600 | 6,920,013 | ||||||
Daiwa House REIT Investment Corp. | 1,248 | 3,006,989 | ||||||
Eisai Co. Ltd. | 83,200 | 4,441,284 | ||||||
FamilyMart UNY Holdings Co. Ltd. | 83,200 | 6,307,933 | ||||||
FUJIFILM Holdings Corp. | 93,000 | 3,901,982 | ||||||
Hankyu Hanshin Holdings Inc. | 41,600 | 1,559,440 | ||||||
Japan Airlines Co. Ltd. | 166,400 | 6,376,548 | ||||||
Japan Prime Realty Investment Corp. | 1,248 | 4,304,053 | ||||||
Japan Real Estate Investment Corp. | 1,248 | 6,479,471 | ||||||
Japan Retail Fund Investment Corp. | 2,496 | 4,802,294 | ||||||
Kajima Corp. | 447,000 | 4,281,280 | ||||||
KDDI Corp. | 83,200 | 2,054,952 | ||||||
Keikyu Corp.a | 374,400 | 6,729,761 | ||||||
Keyence Corp. | 20,000 | 12,233,728 | ||||||
Kintetsu Group Holdings Co. Ltd. | 46,500 | 1,795,417 | ||||||
Kirin Holdings Co. Ltd. | 332,800 | 8,665,806 | ||||||
Konami Holdings Corp. | 124,800 | 6,608,125 | ||||||
Kyowa Hakko Kirin Co. Ltd. | 89,400 | 1,901,860 | ||||||
Kyushu Railway Co. | 214,800 | 6,642,988 | ||||||
Lawson Inc. | 83,200 | 5,450,241 | ||||||
LINE Corp.a,b | 41,600 | 1,693,941 | ||||||
McDonald’s Holdings Co. Japan Ltd.a | 97,600 | 4,367,555 | ||||||
MEIJI Holdings Co. Ltd. | 83,200 | 6,105,206 | ||||||
Mitsubishi Tanabe Pharma Corp. | 332,800 | 7,157,828 | ||||||
Nagoya Railroad Co. Ltd. | 291,200 | 7,458,410 | ||||||
NH Foods Ltd. | 416,000 | 9,376,130 | ||||||
Nippon Building Fund Inc. | 832 | 4,522,375 |
66 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® EDGE MSCI MIN VOL GLOBAL ETF
February 28, 2018
Security | Shares | Value | ||||||
Nippon Prologis REIT Inc. | 2,912 | $ | 6,604,227 | |||||
Nippon Telegraph & Telephone Corp. | 416,000 | 19,422,820 | ||||||
Nissin Foods Holdings Co. Ltd. | 83,200 | 5,707,549 | ||||||
Nitori Holdings Co. Ltd. | 47,800 | 8,070,072 | ||||||
Nomura Real Estate Master Fund Inc. | 5,408 | 7,419,813 | ||||||
Nomura Research Institute Ltd. | 166,430 | 7,517,854 | ||||||
NTT Data Corp. | 956,800 | 9,971,057 | ||||||
NTT DOCOMO Inc. | 748,800 | 19,262,977 | ||||||
Obayashi Corp. | 166,400 | 1,893,160 | ||||||
Oracle Corp. Japan | 46,500 | 3,625,697 | ||||||
Oriental Land Co. Ltd./Japan | 139,500 | 13,622,511 | ||||||
Otsuka Corp. | 83,200 | 7,773,806 | ||||||
Otsuka Holdings Co. Ltd. | 249,600 | 12,594,034 | ||||||
Park24 Co. Ltd. | 166,400 | 4,013,997 | ||||||
Recruit Holdings Co. Ltd. | 457,600 | 11,115,685 | ||||||
Sankyo Co. Ltd. | 83,200 | 2,994,124 | ||||||
Santen Pharmaceutical Co. Ltd. | 208,000 | 3,352,795 | ||||||
Secom Co. Ltd. | 208,000 | 14,970,620 | ||||||
Shimadzu Corp. | 124,800 | 3,222,192 | ||||||
Shimamura Co. Ltd. | 41,600 | 4,966,815 | ||||||
Shionogi & Co. Ltd. | 41,600 | 2,179,707 | ||||||
Suntory Beverage & Food Ltd. | 208,000 | 9,707,511 | ||||||
Taisho Pharmaceutical Holdings Co. Ltd. | 46,500 | 4,261,937 | ||||||
Takeda Pharmaceutical Co. Ltd. | 249,600 | 14,296,942 | ||||||
Terumo Corp. | 124,800 | 6,748,475 | ||||||
Tobu Railway Co. Ltd. | 291,200 | 9,033,054 | ||||||
Toho Co. Ltd./Tokyo | 83,200 | 2,709,526 | ||||||
Toyo Suisan Kaisha Ltd. | 124,800 | 4,900,539 | ||||||
Tsuruha Holdings Inc. | 41,600 | 6,050,626 | ||||||
United Urban Investment Corp. | 4,576 | 7,238,919 | ||||||
USS Co. Ltd. | 92,500 | 1,917,530 | ||||||
Yahoo Japan Corp. | 915,200 | 4,254,151 | ||||||
Yamada Denki Co. Ltd.a | 956,800 | 6,070,508 | ||||||
Yamazaki Baking Co. Ltd.a | 166,400 | 3,263,907 | ||||||
|
| |||||||
462,516,139 | ||||||||
MALAYSIA — 0.96% |
| |||||||
Hong Leong Bank Bhda | 998,400 | 5,102,877 | ||||||
IHH Healthcare Bhda | 2,995,200 | 4,519,181 | ||||||
Malayan Banking Bhd | 2,246,400 | 5,998,811 | ||||||
Maxis Bhda | 2,828,800 | 4,268,115 | ||||||
Petronas Dagangan Bhd | 332,800 | 2,192,045 | ||||||
Public Bank Bhd | 1,486,160 | 8,726,495 |
Security | Shares | Value | ||||||
Telekom Malaysia Bhda | 1,664,000 | $ | 2,506,408 | |||||
|
| |||||||
33,313,932 | ||||||||
PERU — 0.15% |
| |||||||
Cia. de Minas Buenaventura SAA ADR | 138,528 | 2,154,110 | ||||||
Credicorp Ltd. | 13,728 | 2,971,426 | ||||||
|
| |||||||
5,125,536 | ||||||||
PHILIPPINES — 0.46% |
| |||||||
Aboitiz Equity Ventures Inc. | 1,747,200 | 2,596,645 | ||||||
Bank of the Philippine Islands | 1,214,729 | 2,796,583 | ||||||
BDO Unibank Inc. | 3,556,809 | 10,640,377 | ||||||
|
| |||||||
16,033,605 | ||||||||
QATAR — 0.18% |
| |||||||
Qatar National Bank QPSC | 191,360 | 6,263,015 | ||||||
|
| |||||||
6,263,015 | ||||||||
SINGAPORE — 1.32% |
| |||||||
CapitaLand Commercial Trust | 3,952,000 | 5,168,356 | ||||||
CapitaLand Mall Trust | 2,537,600 | 3,874,931 | ||||||
Oversea-Chinese Banking Corp. Ltd. | 416,000 | 4,107,011 | ||||||
SATS Ltd. | 1,248,000 | 4,905,772 | ||||||
Singapore Airlines Ltd. | 956,800 | 8,021,251 | ||||||
Singapore Press Holdings Ltd.a | 1,439,500 | 2,829,270 | ||||||
Singapore Telecommunications Ltd. | 5,948,800 | 15,199,716 | ||||||
StarHub Ltd. | 956,800 | 1,808,217 | ||||||
|
| |||||||
45,914,524 | ||||||||
SOUTH KOREA — 0.49% |
| |||||||
DB Insurance Co. Ltd. | 28,288 | 1,815,510 | ||||||
Hanmi Science Co. Ltd. | 17,472 | 1,355,294 | ||||||
KT&G Corp. | 25,792 | 2,376,989 | ||||||
NAVER Corp. | 2,496 | 1,850,853 | ||||||
S-1 Corp. | 32,032 | 2,839,664 | ||||||
Samsung Fire & Marine Insurance Co. Ltd. | 14,144 | 3,774,694 | ||||||
SK Telecom Co. Ltd. | 13,728 | 3,042,497 | ||||||
|
| |||||||
17,055,501 | ||||||||
SPAIN — 0.09% |
| |||||||
Amadeus IT Group SA | 44,512 | 3,287,747 | ||||||
|
| |||||||
3,287,747 | ||||||||
SWITZERLAND — 4.86% |
| |||||||
Chocoladefabriken Lindt & Spruengli AG Registered | 146 | 10,536,162 | ||||||
EMS-Chemie Holding AG Registered | 11,232 | 7,202,362 |
SCHEDULESOF INVESTMENTS | 67 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® EDGE MSCI MIN VOL GLOBAL ETF
February 28, 2018
Security | Shares | Value | ||||||
Givaudan SA Registered | 832 | $ | 1,898,972 | |||||
Kuehne + Nagel International AG Registered | 83,616 | 13,687,525 | ||||||
Nestle SA Registered | 430,560 | 34,297,187 | ||||||
Novartis AG Registered | 211,744 | 17,736,263 | ||||||
Partners Group Holding AG | 12,896 | 9,374,691 | ||||||
Roche Holding AG | 78,624 | 18,244,795 | ||||||
Schindler Holding AG Registered | 31,200 | 7,071,626 | ||||||
Sika AG Bearer | 447 | 3,679,869 | ||||||
Sonova Holding AG Registered | 76,128 | 11,954,283 | ||||||
Straumann Holding AG Registered | 12,064 | 8,176,278 | ||||||
Swiss Prime Site AG Registered | 63,954 | 5,982,259 | ||||||
Swisscom AG Registered | 35,360 | 19,156,997 | ||||||
|
| |||||||
168,999,269 | ||||||||
TAIWAN — 4.27% |
| |||||||
Asustek Computer Inc. | 930,000 | 8,823,620 | ||||||
Chang Hwa Commercial Bank Ltd. | 7,488,361 | 4,309,036 | ||||||
Chicony Electronics Co. Ltd. | 832,956 | 2,051,328 | ||||||
Chunghwa Telecom Co. Ltd. | 5,824,000 | 21,843,366 | ||||||
Compal Electronics Inc. | 3,328,000 | 2,291,202 | ||||||
CTBC Financial Holding Co. Ltd. | 2,912,000 | 2,129,479 | ||||||
E.Sun Financial Holding Co. Ltd. | 7,904,557 | 5,238,930 | ||||||
Far EasTone Telecommunications Co. Ltd. | 2,496,000 | 6,326,454 | ||||||
First Financial Holding Co. Ltd. | 14,144,894 | 9,689,777 | ||||||
Formosa Petrochemical Corp. | 1,664,000 | 6,668,425 | ||||||
Hon Hai Precision Industry Co. Ltd. | 2,912,400 | 8,788,424 | ||||||
Hua Nan Financial Holdings Co. Ltd. | 11,232,261 | 6,617,283 | ||||||
Innolux Corp. | 5,408,000 | 2,408,042 | ||||||
Mega Financial Holding Co. Ltd. | 14,560,000 | 12,442,740 | ||||||
Quanta Computer Inc. | 832,000 | 1,698,454 | ||||||
Siliconware Precision Industries Co. Ltd. | 3,328,000 | 5,802,100 | ||||||
Standard Foods Corp. | 832,000 | 1,954,931 | ||||||
Synnex Technology International Corp. | 2,496,250 | 3,308,896 | ||||||
Taiwan Cooperative Financial Holding Co. Ltd. | 12,480,454 | 7,267,138 | ||||||
Taiwan Mobile Co. Ltd. | 2,496,000 | 9,190,457 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 2,080,000 | 17,525,989 |
Security | Shares | Value | ||||||
WPG Holdings Ltd. | 1,664,000 | $ | 2,137,316 | |||||
|
| |||||||
148,513,387 | ||||||||
THAILAND — 0.90% |
| |||||||
Airports of Thailand PCL NVDR | 2,080,000 | 4,688,117 | ||||||
Bangkok Dusit Medical Services PCL NVDR | 6,822,400 | 4,803,283 | ||||||
Bangkok Expressway & Metro PCL NVDR | 9,692,800 | 2,254,140 | ||||||
BTS Group Holdings PCL NVDRa | 9,068,800 | 2,354,594 | ||||||
Bumrungrad Hospital PCL NVDR | 624,000 | 4,095,062 | ||||||
CP ALL PCL NVDR | 1,071,500 | 2,867,346 | ||||||
Home Product Center PCL NVDR | 7,737,600 | 3,549,584 | ||||||
Krung Thai Bank PCL NVDR | 5,241,600 | 3,389,757 | ||||||
Siam Cement PCL (The) Foreign | 208,000 | 3,246,894 | ||||||
|
| |||||||
31,248,777 | ||||||||
UNITED ARAB EMIRATES — 0.25% |
| |||||||
Emirates Telecommunications Group Co. PJSC | 1,366,144 | 6,397,495 | ||||||
First Abu Dhabi Bank PJSC | 789,152 | 2,481,576 | ||||||
|
| |||||||
8,879,071 | ||||||||
UNITED KINGDOM — 0.93% |
| |||||||
AstraZeneca PLC | 26,208 | 1,724,287 | ||||||
Compass Group PLC | 437,216 | 9,313,389 | ||||||
GlaxoSmithKline PLC | 494,208 | 8,901,311 | ||||||
Kingfisher PLC | 426,400 | 2,102,718 | ||||||
Randgold Resources Ltd. | 65,728 | 5,296,146 | ||||||
TUI AG | 231,296 | 4,922,188 | ||||||
|
| |||||||
32,260,039 | ||||||||
UNITED STATES — 56.28% |
| |||||||
3M Co. | 24,544 | 5,780,357 | ||||||
Abbott Laboratories | 193,024 | 11,645,138 | ||||||
Accenture PLC Class A | 29,952 | 4,822,572 | ||||||
Adobe Systems Inc.b | 23,712 | 4,958,891 | ||||||
Aetna Inc. | 69,056 | 12,227,055 | ||||||
AGNC Investment Corp. | 599,872 | 10,761,704 | ||||||
Alleghany Corp.b | 18,384 | 11,143,462 | ||||||
Allstate Corp. (The) | 171,392 | 15,812,626 | ||||||
Alphabet Inc. Class Cb | 1,664 | 1,838,271 | ||||||
Altria Group Inc. | 423,488 | 26,658,570 | ||||||
Ameren Corp. | 46,592 | 2,529,946 | ||||||
American Tower Corp. | 16,640 | 2,318,451 | ||||||
American Water Works Co. Inc. | 84,448 | 6,701,793 | ||||||
Amphenol Corp. Class A | 80,704 | 7,375,539 | ||||||
Annaly Capital Management Inc. | 1,637,376 | 16,422,881 |
68 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® EDGE MSCI MIN VOL GLOBAL ETF
February 28, 2018
Security | Shares | Value | ||||||
ANSYS Inc.b | 76,544 | $ | 12,242,447 | |||||
Aon PLC | 65,312 | 9,164,580 | ||||||
Apple Inc. | 20,384 | 3,630,798 | ||||||
Aramark | 106,080 | 4,424,597 | ||||||
Arch Capital Group Ltd.b | 201,344 | 17,766,595 | ||||||
AT&T Inc. | 589,888 | 21,412,934 | ||||||
Athene Holding Ltd. Class Ab | 165,984 | 7,836,105 | ||||||
Automatic Data Processing Inc. | 135,200 | 15,591,264 | ||||||
AutoZone Inc.b | 13,728 | 9,125,276 | ||||||
AvalonBay Communities Inc. | 108,160 | 16,875,123 | ||||||
Axis Capital Holdings Ltd. | 118,144 | 5,829,225 | ||||||
Baxter International Inc. | 201,760 | 13,677,310 | ||||||
Becton Dickinson and Co. | 151,120 | 33,551,662 | ||||||
Berkshire Hathaway Inc. Class Bb | 136,032 | 28,185,830 | ||||||
Boston Scientific Corp.b | 148,928 | 4,059,777 | ||||||
Bristol-Myers Squibb Co. | 76,544 | 5,067,213 | ||||||
Broadridge Financial Solutions Inc. | 120,224 | 12,068,085 | ||||||
Campbell Soup Co. | 116,896 | 5,032,373 | ||||||
Cboe Global Markets Inc. | 42,016 | 4,706,212 | ||||||
CH Robinson Worldwide Inc. | 143,936 | 13,437,865 | ||||||
Charter Communications Inc. Class Ab | 32,864 | 11,237,188 | ||||||
Chevron Corp. | 17,056 | 1,908,908 | ||||||
Chubb Ltd. | 116,480 | 16,530,842 | ||||||
Church & Dwight Co. Inc. | 330,304 | 16,247,654 | ||||||
Cigna Corp. | 11,648 | 2,281,727 | ||||||
Cincinnati Financial Corp. | 96,096 | 7,167,801 | ||||||
Cintas Corp. | 39,520 | 6,744,483 | ||||||
Cisco Systems Inc. | 182,624 | 8,177,903 | ||||||
Clorox Co. (The) | 176,384 | 22,767,647 | ||||||
CMS Energy Corp. | 32,032 | 1,359,758 | ||||||
Coca-Cola Co. (The) | 592,384 | 25,602,836 | ||||||
Colgate-Palmolive Co. | 131,456 | 9,066,520 | ||||||
Comcast Corp. Class A | 344,032 | 12,457,399 | ||||||
Consolidated Edison Inc. | 464,256 | 34,768,132 | ||||||
Constellation Brands Inc. Class A | 32,448 | 6,991,895 | ||||||
Cooper Companies Inc. (The) | 8,736 | 2,013,823 | ||||||
Costco Wholesale Corp. | 38,688 | 7,385,539 | ||||||
Crown Castle International Corp. | 112,736 | 12,407,724 | ||||||
CVS Health Corp. | 47,008 | 3,183,852 | ||||||
Danaher Corp. | 69,888 | 6,833,649 | ||||||
Darden Restaurants Inc. | 38,272 | 3,528,296 | ||||||
Dell Technologies Inc. Class Vb | 152,672 | 11,342,003 | ||||||
Dollar General Corp. | 19,968 | 1,888,773 | ||||||
Dominion Energy Inc. | 259,584 | 19,227,387 |
Security | Shares | Value | ||||||
Dr Pepper Snapple Group Inc. | 106,912 | $ | 12,428,520 | |||||
Duke Energy Corp. | 298,272 | 22,471,812 | ||||||
eBay Inc.b | 91,104 | 3,904,717 | ||||||
Ecolab Inc. | 24,128 | 3,147,498 | ||||||
Edison International | 30,368 | 1,839,997 | ||||||
Eli Lilly & Co. | 266,656 | 20,537,845 | ||||||
Equity Residential | 122,304 | 6,877,154 | ||||||
Essex Property Trust Inc. | 12,896 | 2,886,512 | ||||||
Everest Re Group Ltd. | 42,848 | 10,293,804 | ||||||
Eversource Energy | 70,304 | 4,007,328 | ||||||
Expeditors International of Washington Inc. | 225,056 | 14,619,638 | ||||||
Exxon Mobil Corp. | 312,416 | 23,662,388 | ||||||
F5 Networks Inc.b | 14,144 | 2,100,667 | ||||||
Facebook Inc. Class Ab | 93,184 | 16,616,571 | ||||||
Federal Realty Investment Trust | 13,312 | 1,516,769 | ||||||
Fidelity National Information Services Inc. | 130,208 | 12,653,613 | ||||||
Fiserv Inc.b | 124,800 | 17,895,072 | ||||||
FNF Group | 115,648 | 4,617,825 | ||||||
Gartner Inc.b | 93,184 | 10,567,997 | ||||||
General Dynamics Corp. | 6,656 | 1,480,627 | ||||||
General Mills Inc. | 260,832 | 13,185,058 | ||||||
Genuine Parts Co. | 35,360 | 3,247,462 | ||||||
Gilead Sciences Inc. | 24,128 | 1,899,597 | ||||||
Harris Corp. | 88,608 | 13,836,139 | ||||||
Henry Schein Inc.b | 128,960 | 8,535,862 | ||||||
Hershey Co. (The) | 57,824 | 5,681,786 | ||||||
Home Depot Inc. (The) | 48,672 | 8,871,445 | ||||||
Hormel Foods Corp. | 130,208 | 4,226,552 | ||||||
Humana Inc. | 21,632 | 5,880,010 | ||||||
Intel Corp. | 78,208 | 3,854,872 | ||||||
International Business Machines Corp. | 72,800 | 11,344,424 | ||||||
Intuit Inc. | 16,224 | 2,707,137 | ||||||
Intuitive Surgical Inc.b | 72,384 | 30,868,157 | ||||||
Jack Henry & Associates Inc. | 120,224 | 14,102,275 | ||||||
JM Smucker Co. (The) | 64,064 | 8,091,283 | ||||||
Johnson & Johnson | 372,320 | 48,356,922 | ||||||
Kellogg Co. | 220,896 | 14,623,315 | ||||||
Kimberly-Clark Corp. | 94,016 | 10,428,255 | ||||||
Kraft Heinz Co. (The) | 78,624 | 5,271,739 | ||||||
L3 Technologies Inc. | 13,728 | 2,849,246 | ||||||
Laboratory Corp. of America Holdingsb | 77,792 | 13,434,678 |
SCHEDULESOF INVESTMENTS | 69 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® EDGE MSCI MIN VOL GLOBAL ETF
February 28, 2018
Security | Shares | Value | ||||||
Liberty Broadband Corp. Class Cb | 36,192 | $ | 3,180,553 | |||||
Lockheed Martin Corp. | 100,256 | 35,334,225 | ||||||
Lowe’s Companies Inc. | 21,632 | 1,938,011 | ||||||
Markel Corp.b | 21,632 | 24,054,784 | ||||||
Marsh & McLennan Companies Inc. | 280,800 | 23,312,016 | ||||||
Mastercard Inc. Class A | 49,742 | 8,742,654 | ||||||
McCormick & Co. Inc./MD NVS | 179,712 | 19,189,647 | ||||||
McDonald’s Corp. | 236,288 | 37,272,069 | ||||||
Medtronic PLC | 158,496 | 12,662,245 | ||||||
Merck & Co. Inc. | 373,568 | 20,254,857 | ||||||
Microsoft Corp. | 29,952 | 2,808,599 | ||||||
Monsanto Co. | 86,944 | 10,726,281 | ||||||
Motorola Solutions Inc. | 148,096 | 15,720,390 | ||||||
Newmont Mining Corp. | 302,848 | 11,568,794 | ||||||
NextEra Energy Inc. | 105,248 | 16,013,483 | ||||||
Northrop Grumman Corp. | 131,456 | 46,014,858 | ||||||
O’Reilly Automotive Inc.b | 19,552 | 4,774,403 | ||||||
Occidental Petroleum Corp. | 83,616 | 5,485,210 | ||||||
Oracle Corp. | 65,728 | 3,330,438 | ||||||
Paychex Inc. | 288,704 | 18,803,292 | ||||||
PepsiCo Inc. | 274,976 | 30,173,117 | ||||||
Pfizer Inc. | 605,696 | 21,992,822 | ||||||
PG&E Corp. | 101,088 | 4,153,706 | ||||||
Philip Morris International Inc. | 39,520 | 4,092,296 | ||||||
Procter & Gamble Co. (The) | 427,232 | 33,546,257 | ||||||
Progressive Corp. (The) | 141,856 | 8,168,068 | ||||||
Public Storage | 64,480 | 12,537,491 | ||||||
Raytheon Co. | 153,088 | 33,298,171 | ||||||
Realty Income Corp.a | 101,920 | 5,012,426 | ||||||
RenaissanceRe Holdings Ltd. | 59,904 | 7,684,485 | ||||||
Republic Services Inc. | 363,584 | 24,425,573 | ||||||
Rollins Inc. | 39,104 | 1,965,758 | ||||||
Ross Stores Inc. | 58,240 | 4,547,962 | ||||||
Sherwin-Williams Co. (The) | 7,488 | 3,007,031 | ||||||
Southern Co. (The) | 576,992 | 24,845,276 | ||||||
Starbucks Corp. | 191,360 | 10,926,656 | ||||||
Stryker Corp. | 127,296 | 20,642,319 | ||||||
Synopsys Inc.b | 209,248 | 17,717,028 | ||||||
Sysco Corp. | 126,880 | 7,568,392 | ||||||
Texas Instruments Inc. | 20,384 | 2,208,606 | ||||||
Time Warner Inc. | 88,192 | 8,198,328 | ||||||
TJX Companies Inc. (The) | 295,360 | 24,420,365 | ||||||
Travelers Companies Inc. (The) | 107,328 | 14,918,592 | ||||||
Tyson Foods Inc. Class A | 33,280 | 2,475,366 |
Security | Shares | Value | ||||||
UDR Inc. | 254,176 | $ | 8,545,397 | |||||
Ulta Beauty Inc.b | 8,320 | 1,691,872 | ||||||
United Parcel Service Inc. Class B | 124,800 | 13,030,368 | ||||||
UnitedHealth Group Inc. | 86,528 | 19,569,172 | ||||||
Varian Medical Systems Inc.b | 51,168 | 6,106,389 | ||||||
VeriSign Inc.b | 30,784 | 3,571,560 | ||||||
Verizon Communications Inc. | 585,728 | 27,962,655 | ||||||
Visa Inc. Class A | 274,976 | 33,805,549 | ||||||
VMware Inc. Class Aa,b | 70,304 | 9,262,552 | ||||||
Walmart Inc. | 265,824 | 23,926,818 | ||||||
Walt Disney Co. (The) | 35,776 | 3,690,652 | ||||||
Waste Management Inc. | 418,496 | 36,124,575 | ||||||
Waters Corp.b | 11,648 | 2,383,647 | ||||||
WEC Energy Group Inc. | 317,408 | 19,019,087 | ||||||
Welltower Inc. | 49,504 | 2,598,960 | ||||||
Westar Energy Inc. | 40,352 | 1,966,353 | ||||||
Worldpay Inc. Class Ab | 63,232 | 5,139,497 | ||||||
WR Berkley Corp. | 150,592 | 10,297,481 | ||||||
Xcel Energy Inc. | 438,048 | 18,958,717 | ||||||
|
| |||||||
1,958,591,035 | ||||||||
|
| |||||||
TOTAL COMMON STOCKS | 3,466,987,299 | |||||||
SHORT-TERM INVESTMENTS — 1.97% |
| |||||||
MONEY MARKET FUNDS — 1.97% |
| |||||||
BlackRock Cash Funds: Institutional, |
| |||||||
1.58%e,f,g | 63,759,914 | 63,766,290 | ||||||
BlackRock Cash Funds: Treasury, |
| |||||||
1.32%e,f | 4,724,502 | 4,724,502 | ||||||
|
| |||||||
68,490,792 | ||||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS |
| 68,490,792 | ||||||
|
|
70 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® EDGE MSCI MIN VOL GLOBAL ETF
February 28, 2018
Value | ||||||||
TOTAL INVESTMENTS | $ | 3,535,478,091 | ||||||
Other Assets, Less Liabilities — (1.59)% |
| (55,347,028 | ) | |||||
|
| |||||||
NET ASSETS — 100.00% | $ | 3,480,131,063 | ||||||
|
|
ADR — American Depositary Receipts
NVDR — Non-Voting Depositary Receipts
NVS — Non-Voting Shares
a | All or a portion of this security is on loan. |
b | Non-income producing security. |
c | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
d | Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. |
e | Affiliate of the Fund. |
f | Annualized 7-day yield as of period end. |
g | All or a portion of this security was purchased with cash collateral received from loaned securities. |
Affiliates (Note 2)
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows:
Affiliated issuer | Shares held at 08/31/17 | Shares purchased | Shares sold | Shares held at 02/28/18 | Value at 02/28/18 | Income | Net realized gain (loss) a | Change in unrealized appreciation (depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, | 56,910,361 | 6,849,553 | b | — | 63,759,914 | $ | 63,766,290 | $ | 231,448 | c | $ | (5,766 | ) | $ | (9,204 | ) | ||||||||||||||||
BlackRock Cash Funds: Treasury, | 2,465,143 | 2,259,359 | b | — | 4,724,502 | 4,724,502 | 33,643 | — | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 68,490,792 | $ | 265,091 | $ | (5,766 | ) | $ | (9,204 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
a | Includes realized capital gain distributions from an affiliated fund, if any. |
b | Net of purchases and sales. |
c | Includes the Fund’s portion of securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. |
Futures Contracts (Note 5)
Futures contracts outstanding as of February 28, 2018 were as follows:
Description | Number of contracts | Expiration date | Notional amount (000) | Value / unrealized appreciation (depreciation) | ||||||||||||
Long Contracts | ||||||||||||||||
MSCI EAFE E-Mini | 38 | Mar 2018 | $ | 3,869 | $ | (45,538 | ) | |||||||||
MSCI Emerging Markets E-Mini | 25 | Mar 2018 | 1,479 | 14,892 | ||||||||||||
S&P 500 E-Mini | 43 | Mar 2018 | 5,836 | 54,267 | ||||||||||||
|
| |||||||||||||||
Total |
| $ | 23,621 | |||||||||||||
|
| |||||||||||||||
SCHEDULESOF INVESTMENTS | 71 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® EDGE MSCI MIN VOL GLOBAL ETF
February 28, 2018
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments |
| |||||||||||||||
Assets |
| |||||||||||||||
Common stocks | $ | 3,460,724,280 | $ | 6,263,015 | $ | 4 | $ | 3,466,987,299 | ||||||||
Money market funds | 68,490,792 | — | — | 68,490,792 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 3,529,215,072 | $ | 6,263,015 | $ | 4 | $ | 3,535,478,091 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative financial instrumentsa |
| |||||||||||||||
Assets |
| |||||||||||||||
Futures contracts | $ | 69,159 | $ | — | $ | — | $ | 69,159 | ||||||||
Liabilities |
| |||||||||||||||
Futures contracts | (45,538 | ) | — | — | (45,538 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 23,621 | $ | — | $ | — | $ | 23,621 | ||||||||
|
|
|
|
|
|
|
| |||||||||
a | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
72 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
February 28, 2018
Security | Shares | Value | ||||||
COMMON STOCKS — 98.95% |
| |||||||
BANKS — 31.04% |
| |||||||
Australia & New Zealand Banking Group Ltd. | 4,730,551 | $ | 107,086,506 | |||||
Bank of Queensland Ltd. | 632,614 | 6,226,142 | ||||||
Bendigo & Adelaide Bank Ltd. | 769,123 | 6,796,507 | ||||||
Commonwealth Bank of Australia | 2,822,256 | 168,000,199 | ||||||
National Australia Bank Ltd. | 4,324,801 | 101,709,670 | ||||||
Westpac Banking Corp. | 5,466,441 | 131,071,734 | ||||||
|
| |||||||
520,890,758 | ||||||||
BEVERAGES — 1.31% |
| |||||||
Coca-Cola Amatil Ltd. | 887,231 | 6,014,961 | ||||||
Treasury Wine Estates Ltd. | 1,170,268 | 15,958,801 | ||||||
|
| |||||||
21,973,762 | ||||||||
BIOTECHNOLOGY — 5.52% |
| |||||||
CSL Ltd. | 728,697 | 92,654,001 | ||||||
|
| |||||||
92,654,001 | ||||||||
CAPITAL MARKETS — 3.35% |
| |||||||
ASX Ltd. | 311,603 | 14,178,066 | ||||||
Macquarie Group Ltd. | 520,723 | 42,058,419 | ||||||
|
| |||||||
56,236,485 | ||||||||
CHEMICALS — 1.01% |
| |||||||
Incitec Pivot Ltd. | 2,724,547 | 8,067,794 | ||||||
Orica Ltd. | 607,554 | 8,829,591 | ||||||
|
| |||||||
16,897,385 | ||||||||
COMMERCIAL SERVICES & SUPPLIES — 1.14% |
| |||||||
Brambles Ltd. | 2,559,760 | 19,149,056 | ||||||
|
| |||||||
19,149,056 | ||||||||
CONSTRUCTION & ENGINEERING — 0.34% |
| |||||||
CIMIC Group Ltd. | 155,983 | 5,688,529 | ||||||
|
| |||||||
5,688,529 | ||||||||
CONSTRUCTION MATERIALS — 1.44% |
| |||||||
Boral Ltd. | 1,884,733 | 11,470,378 | ||||||
James Hardie Industries PLC | 710,349 | 12,648,379 | ||||||
|
| |||||||
24,118,757 | ||||||||
CONTAINERS & PACKAGING — 1.20% |
| |||||||
Amcor Ltd./Australia | 1,865,124 | 20,202,234 | ||||||
|
| |||||||
20,202,234 | ||||||||
DIVERSIFIED FINANCIAL SERVICES — 1.70% |
| |||||||
AMP Ltd. | 4,700,039 | 19,374,657 | ||||||
Challenger Ltd./Australia | 931,231 | 9,143,339 | ||||||
|
| |||||||
28,517,996 |
Security | Shares | Value | ||||||
DIVERSIFIED TELECOMMUNICATION SERVICES — 1.21% |
| |||||||
Telstra Corp. Ltd. | 6,703,732 | $ | 17,500,011 | |||||
TPG Telecom Ltd.a | 599,461 | 2,854,165 | ||||||
|
| |||||||
20,354,176 | ||||||||
ELECTRIC UTILITIES — 0.23% |
| |||||||
AusNet Services | 2,896,950 | 3,837,663 | ||||||
|
| |||||||
3,837,663 | ||||||||
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) — 7.21% |
| |||||||
BGP Holdings PLCb,c | 18,888,372 | 230 | ||||||
Dexus | 1,637,008 | 11,863,440 | ||||||
Goodman Group | 2,900,034 | 18,553,384 | ||||||
GPT Group (The) | 2,901,331 | 10,761,706 | ||||||
Mirvac Group | 5,968,594 | 9,860,178 | ||||||
Scentre Group | 8,582,208 | 25,680,717 | ||||||
Stockland | 3,889,395 | 12,244,479 | ||||||
Vicinity Centres | 5,299,128 | 10,240,778 | ||||||
Westfield Corp. | 3,180,938 | 21,713,818 | ||||||
|
| |||||||
120,918,730 | ||||||||
FOOD & STAPLES RETAILING — 6.20% |
| |||||||
Wesfarmers Ltd. | 1,825,989 | 58,808,546 | ||||||
Woolworths Group Ltd. | 2,100,925 | 45,201,603 | ||||||
|
| |||||||
104,010,149 | ||||||||
GAS UTILITIES — 0.71% |
| |||||||
APA Group | 1,803,811 | 11,244,960 | ||||||
APA Group Newc | 106,106 | 661,465 | ||||||
|
| |||||||
11,906,425 | ||||||||
HEALTH CARE EQUIPMENT & SUPPLIES — 0.79% |
| |||||||
Cochlear Ltd. | 92,575 | 13,266,377 | ||||||
|
| |||||||
13,266,377 | ||||||||
HEALTH CARE PROVIDERS & SERVICES — 1.65% |
| |||||||
Healthscope Ltd. | 2,795,819 | 4,117,634 | ||||||
Ramsay Health Care Ltd. | 227,742 | 11,340,204 | ||||||
Sonic Healthcare Ltd. | 640,485 | 12,227,902 | ||||||
|
| |||||||
27,685,740 | ||||||||
HOTELS, RESTAURANTS & LEISURE — 2.46% |
| |||||||
Aristocrat Leisure Ltd. | 873,883 | 16,785,995 | ||||||
Crown Resorts Ltd. | 608,210 | 6,398,294 | ||||||
Domino’s Pizza Enterprises Ltd.a | 100,424 | 3,082,481 | ||||||
Flight Centre Travel Group Ltd.a | 88,832 | 4,000,359 | ||||||
Tabcorp Holdings Ltd. | 3,080,393 | 11,089,833 | ||||||
|
| |||||||
41,356,962 | ||||||||
INSURANCE — 4.46% |
| |||||||
Insurance Australia Group Ltd. | 3,814,570 | 24,374,534 |
SCHEDULESOF INVESTMENTS | 73 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI AUSTRALIA ETF
February 28, 2018
Security | Shares | Value | ||||||
Medibank Pvt Ltd. | 4,426,613 | $ | 10,934,721 | |||||
QBE Insurance Group Ltd. | 2,209,584 | 17,545,332 | ||||||
Suncorp Group Ltd. | 2,082,838 | 22,008,582 | ||||||
|
| |||||||
74,863,169 | ||||||||
INTERNET SOFTWARE & SERVICES — 0.30% |
| |||||||
REA Group Ltd. | 84,816 | 5,088,491 | ||||||
|
| |||||||
5,088,491 | ||||||||
IT SERVICES — 0.62% |
| |||||||
Computershare Ltd. | 746,298 | 10,374,902 | ||||||
|
| |||||||
10,374,902 | ||||||||
METALS & MINING — 14.02% |
| |||||||
Alumina Ltd. | 3,939,511 | 6,845,798 | ||||||
BHP Billiton Ltd. | 5,172,257 | 122,929,699 | ||||||
BlueScope Steel Ltd. | 902,470 | 11,484,070 | ||||||
Fortescue Metals Group Ltd. | 2,502,488 | 9,828,323 | ||||||
Newcrest Mining Ltd. | 1,235,389 | 20,456,887 | ||||||
Rio Tinto Ltd. | 664,265 | 42,010,736 | ||||||
South32 Ltd. | 8,376,909 | 21,671,988 | ||||||
|
| |||||||
235,227,501 | ||||||||
MULTI-UTILITIES — 1.07% |
| |||||||
AGL Energy Ltd. | 1,056,172 | 17,991,265 | ||||||
|
| |||||||
17,991,265 | ||||||||
MULTILINE RETAIL — 0.17% |
| |||||||
Harvey Norman Holdings Ltd. | 891,010 | 2,784,222 | ||||||
|
| |||||||
2,784,222 | ||||||||
OIL, GAS & CONSUMABLE FUELS — 5.40% |
| |||||||
Caltex Australia Ltd. | 419,991 | 11,510,369 | ||||||
Oil Search Ltd. | 2,207,133 | 12,985,310 | ||||||
Origin Energy Ltd.c | 2,827,073 | 19,937,123 | ||||||
Santos Ltd.c | 3,015,309 | 11,842,387 | ||||||
Woodside Petroleum Ltd. | 1,507,250 | 34,272,632 | ||||||
|
| |||||||
90,547,821 | ||||||||
PROFESSIONAL SERVICES — 0.50% |
| |||||||
Seek Ltd. | 535,327 | 8,430,675 | ||||||
|
| |||||||
8,430,675 | ||||||||
REAL ESTATE MANAGEMENT & DEVELOPMENT — 0.74% |
| |||||||
LendLease Group | 891,128 | 12,395,247 | ||||||
|
| |||||||
12,395,247 |
Security | Shares | Value | ||||||
ROAD & RAIL — 0.69% |
| |||||||
Aurizon Holdings Ltd. | 3,243,785 | $ | 11,551,680 | |||||
|
| |||||||
11,551,680 | ||||||||
TRANSPORTATION INFRASTRUCTURE — 2.47% |
| |||||||
Sydney Airport | 1,771,747 | 9,098,379 | ||||||
Transurban Group | 3,577,953 | 32,286,433 | ||||||
|
| |||||||
41,384,812 | ||||||||
|
| |||||||
TOTAL COMMON STOCKS |
| |||||||
(Cost: $1,809,572,197) |
| 1,660,304,970 | ||||||
SHORT-TERM INVESTMENTS — 0.46% |
| |||||||
MONEY MARKET FUNDS — 0.46% |
| |||||||
BlackRock Cash Funds: Institutional, |
| |||||||
1.58%d,e,f | 7,499,021 | 7,499,771 | ||||||
BlackRock Cash Funds: Treasury, |
| |||||||
1.32%d,e | 171,691 | 171,691 | ||||||
|
| |||||||
7,671,462 | ||||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||||
(Cost: $7,671,773) |
| 7,671,462 | ||||||
|
| |||||||
TOTAL INVESTMENTS |
| |||||||
(Cost: $1,817,243,970) |
| 1,667,976,432 | ||||||
Other Assets, Less Liabilities — 0.59% |
| 9,852,532 | ||||||
|
| |||||||
NET ASSETS — 100.00% |
| $ | 1,677,828,964 | |||||
|
|
a | All or a portion of this security is on loan. |
b | Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. |
c | Non-income producing security. |
d | Affiliate of the Fund. |
e | Annualized 7-day yield as of period end. |
f | All or a portion of this security was purchased with cash collateral received from loaned securities. |
74 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI AUSTRALIA ETF
February 28, 2018
Affiliates (Note 2)
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows:
Affiliated issuer | Shares held at 08/31/17 | Shares purchased | Shares sold | Shares held at 02/28/18 | Value at 02/28/18 | Income | Net realized gain (loss) a | Change in unrealized appreciation (depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, | 6,985,447 | 513,574 | b | — | 7,499,021 | $ | 7,499,771 | $ | 41,771 | c | $ | (1,096 | ) | $ | (629 | ) | ||||||||||||||||
BlackRock Cash Funds: Treasury, | 183,299 | — | (11,608 | )b | 171,691 | 171,691 | 9,672 | — | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 7,671,462 | $ | 51,443 | $ | (1,096 | ) | $ | (629 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
a | Includes realized capital gain distributions from an affiliated fund, if any. |
b | Net of purchases and sales. |
c | Includes the Fund’s portion of securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. |
Futures Contracts (Note 5)
Futures contracts outstanding as of February 28, 2018 were as follows:
Description | Number of contracts | Expiration date | Notional amount (000) | Value / unrealized appreciation (depreciation) | ||||||||||||
Long Contracts | ||||||||||||||||
ASX SPI 200 Index | 147 | Mar 2018 | $ | 17,185 | $ | 273,900 | ||||||||||
|
| |||||||||||||||
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common stocks | $ | 1,660,304,740 | $ | — | $ | 230 | $ | 1,660,304,970 | ||||||||
Money market funds | 7,671,462 | — | — | 7,671,462 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 1,667,976,202 | $ | — | $ | 230 | $ | 1,667,976,432 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative financial instrumentsa | ||||||||||||||||
Assets | ||||||||||||||||
Futures contracts | $ | 273,900 | $ | — | $ | — | $ | 273,900 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 273,900 | $ | — | $ | — | $ | 273,900 | ||||||||
|
|
|
|
|
|
|
| |||||||||
a | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
SCHEDULESOF INVESTMENTS | 75 |
Table of Contents
Schedule of Investments (Unaudited)
February 28, 2018
Security | Shares | Value | ||||||
COMMON STOCKS — 99.62% |
| |||||||
AEROSPACE & DEFENSE — 0.82% |
| |||||||
Bombardier Inc. Class Ba | 4,117,707 | $ | 13,047,091 | |||||
CAE Inc. | 574,893 | 10,615,342 | ||||||
|
| |||||||
23,662,433 | ||||||||
AUTO COMPONENTS — 1.60% |
| |||||||
Linamar Corp. | 104,175 | 5,712,206 | ||||||
Magna International Inc. | 732,006 | 40,332,168 | ||||||
|
| |||||||
46,044,374 | ||||||||
BANKS — 29.78% |
| |||||||
Bank of Montreal | 1,383,074 | 105,175,581 | ||||||
Bank of Nova Scotia (The) | 2,556,559 | 158,618,988 | ||||||
Canadian Imperial Bank of Commerce | 929,596 | 85,026,457 | ||||||
National Bank of Canada | 725,507 | 35,251,934 | ||||||
Royal Bank of Canada | 3,108,296 | 245,223,899 | ||||||
Toronto-Dominion Bank (The) | 3,939,604 | 227,518,396 | ||||||
|
| |||||||
856,815,255 | ||||||||
CAPITAL MARKETS — 3.90% |
| |||||||
Brookfield Asset Management Inc. Class A | 1,790,330 | 69,511,779 | ||||||
CI Financial Corp. | 586,472 | 13,062,716 | ||||||
IGM Financial Inc. | 183,622 | 5,616,066 | ||||||
Thomson Reuters Corp. | 607,060 | 23,953,606 | ||||||
|
| |||||||
112,144,167 | ||||||||
CHEMICALS — 2.69% |
| |||||||
Methanex Corp. | 178,831 | 9,885,355 | ||||||
Nutrien Ltd.a | 1,372,961 | 67,557,803 | ||||||
|
| |||||||
77,443,158 | ||||||||
CONSTRUCTION & ENGINEERING — 0.57% |
| |||||||
SNC-Lavalin Group Inc. | 375,332 | 16,306,811 | ||||||
|
| |||||||
16,306,811 | ||||||||
CONTAINERS & PACKAGING — 0.52% |
| |||||||
CCL Industries Inc. Class B | 298,450 | 14,876,499 | ||||||
|
| |||||||
14,876,499 | ||||||||
DIVERSIFIED FINANCIAL SERVICES — 0.55% |
| |||||||
Element Fleet Management Corp. | 831,239 | 3,159,273 | ||||||
Onex Corp. | 174,164 | 12,798,441 | ||||||
|
| |||||||
15,957,714 | ||||||||
DIVERSIFIED TELECOMMUNICATION SERVICES — 1.02% |
| |||||||
BCE Inc. | 326,010 | 14,247,911 | ||||||
TELUS Corp. | 418,187 | 15,117,198 | ||||||
|
| |||||||
29,365,109 |
Security | Shares | Value | ||||||
ELECTRIC UTILITIES — 1.51% |
| |||||||
Emera Inc. | 120,188 | $ | 3,884,173 | |||||
Fortis Inc./Canada | 891,913 | 29,186,336 | ||||||
Hydro One Ltd.b | 642,836 | 10,309,658 | ||||||
|
| |||||||
43,380,167 | ||||||||
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) — 0.49% |
| |||||||
H&R REIT | 297,483 | 4,638,631 | ||||||
RioCan REIT | 344,248 | 6,310,833 | ||||||
SmartCentres Real Estate Investment Trust | 139,277 | 3,195,648 | ||||||
|
| |||||||
14,145,112 | ||||||||
FOOD & STAPLES RETAILING — 3.57% |
| |||||||
Alimentation Couche-Tard Inc. Class B | 918,976 | 44,745,708 | ||||||
Empire Co. Ltd. Class A | 367,610 | 6,816,571 | ||||||
George Weston Ltd. | 109,967 | 9,003,503 | ||||||
Jean Coutu Group PJC Inc. (The) Class A | 174,637 | 3,310,518 | ||||||
Loblaw Companies Ltd. | 456,011 | 23,459,824 | ||||||
Metro Inc. | 485,892 | 15,350,145 | ||||||
|
| |||||||
102,686,269 | ||||||||
FOOD PRODUCTS — 0.51% |
| |||||||
Saputo Inc.c | 456,437 | 14,608,406 | ||||||
|
| |||||||
14,608,406 | ||||||||
HOTELS, RESTAURANTS & LEISURE — 0.98% |
| |||||||
Restaurant Brands International Inc. | 479,003 | 28,115,515 | ||||||
|
| |||||||
28,115,515 | ||||||||
INSURANCE — 8.51% |
| |||||||
Fairfax Financial Holdings Ltd. | 59,605 | 29,173,818 | ||||||
Great-West Lifeco Inc. | 634,849 | 16,776,046 | ||||||
Industrial Alliance Insurance & Financial Services Inc. | 227,921 | 9,674,658 | ||||||
Intact Financial Corp. | 297,593 | 23,050,771 | ||||||
Manulife Financial Corp. | 4,217,365 | 80,374,647 | ||||||
Power Corp. of Canada | 755,648 | 17,933,629 | ||||||
Power Financial Corp. | 531,868 | 13,905,317 | ||||||
Sun Life Financial Inc. | 1,304,728 | 53,824,421 | ||||||
|
| |||||||
244,713,307 | ||||||||
INTERNET SOFTWARE & SERVICES — 0.90% |
| |||||||
Shopify Inc. Class Aa,c | 186,384 | 25,818,988 | ||||||
|
| |||||||
25,818,988 |
76 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI CANADA ETF
February 28, 2018
Security | Shares | Value | ||||||
IT SERVICES — 1.10% |
| |||||||
CGI Group Inc. Class Aa | 540,031 | $ | 31,609,104 | |||||
|
| |||||||
31,609,104 | ||||||||
MEDIA — 0.61% |
| |||||||
Shaw Communications Inc. Class B | 912,526 | 17,690,050 | ||||||
|
| |||||||
17,690,050 | ||||||||
METALS & MINING — 6.97% |
| |||||||
Agnico Eagle Mines Ltd. | 494,942 | 18,884,547 | ||||||
Barrick Gold Corp. | 2,488,270 | 28,701,472 | ||||||
First Quantum Minerals Ltd. | 1,473,790 | 24,050,376 | ||||||
Franco-Nevada Corp. | 396,710 | 27,839,516 | ||||||
Goldcorp Inc. | 1,843,084 | 23,100,581 | ||||||
Kinross Gold Corp.a | 2,660,760 | 9,572,797 | ||||||
Lundin Mining Corp. | 1,388,623 | 9,049,051 | ||||||
Teck Resources Ltd. Class B | 1,214,569 | 34,787,281 | ||||||
Turquoise Hill Resources Ltd.a | 2,171,389 | 6,608,980 | ||||||
Wheaton Precious Metals Corp.c | 945,478 | 18,070,594 | ||||||
|
| |||||||
200,665,195 | ||||||||
MULTI-UTILITIES — 0.44% |
| |||||||
Atco Ltd./Canada Class I | 162,188 | 5,346,565 | ||||||
Canadian Utilities Ltd. Class A | 272,013 | 7,194,381 | ||||||
|
| |||||||
12,540,946 | ||||||||
MULTILINE RETAIL — 1.56% |
| |||||||
Canadian Tire Corp. Ltd. Class A | 136,078 | 18,520,032 | ||||||
Dollarama Inc. | 226,243 | 26,370,150 | ||||||
|
| |||||||
44,890,182 | ||||||||
OIL, GAS & CONSUMABLE FUELS — 19.75% |
| |||||||
AltaGas Ltd. | 366,440 | 7,555,582 | ||||||
ARC Resources Ltd. | 746,020 | 7,207,810 | ||||||
Cameco Corp. | 845,214 | 7,466,986 | ||||||
Canadian Natural Resources Ltd. | 2,337,833 | 72,524,183 | ||||||
Cenovus Energy Inc. | 2,231,482 | 16,265,690 | ||||||
Crescent Point Energy Corp. | 1,160,321 | 8,358,187 | ||||||
Enbridge Inc. | 3,527,474 | 112,347,301 | ||||||
Encana Corp. | 2,079,354 | 21,842,670 | ||||||
Husky Energy Inc.a | 752,839 | 9,952,856 | ||||||
Imperial Oil Ltd. | 624,783 | 16,944,012 | ||||||
Inter Pipeline Ltd. | 797,590 | 13,887,098 | ||||||
Keyera Corp. | 427,032 | 10,897,839 | ||||||
Pembina Pipeline Corp. | 1,074,247 | 34,591,198 | ||||||
PrairieSky Royalty Ltd. | 454,901 | 10,107,333 | ||||||
Seven Generations Energy Ltd. Class Aa,c | 529,414 | 6,197,534 |
Security | Shares | Value | ||||||
Suncor Energy Inc. | 3,528,145 | $ | 116,306,118 | |||||
Tourmaline Oil Corp.a | 489,188 | 7,127,748 | ||||||
TransCanada Corp. | 1,857,220 | 80,443,056 | ||||||
Vermilion Energy Inc. | 245,917 | 8,112,469 | ||||||
|
| |||||||
568,135,670 | ||||||||
PAPER & FOREST PRODUCTS — 0.35% |
| |||||||
West Fraser Timber Co. Ltd. | 146,214 | 10,199,093 | ||||||
|
| |||||||
10,199,093 | ||||||||
PHARMACEUTICALS — 0.40% |
| |||||||
Valeant Pharmaceuticals International Inc.a | 705,114 | 11,561,591 | ||||||
|
| |||||||
11,561,591 | ||||||||
REAL ESTATE MANAGEMENT & DEVELOPMENT — 0.18% |
| |||||||
First Capital Realty Inc. | 333,078 | 5,191,062 | ||||||
|
| |||||||
5,191,062 | ||||||||
ROAD & RAIL — 6.21% |
| |||||||
Canadian National Railway Co. | 1,591,076 | 123,277,813 | ||||||
Canadian Pacific Railway Ltd. | 309,064 | 55,355,826 | ||||||
|
| |||||||
178,633,639 | ||||||||
SOFTWARE — 2.12% |
| |||||||
BlackBerry Ltd.a,c | 1,080,730 | 13,132,217 | ||||||
Constellation Software Inc./Canada | 43,078 | 27,923,796 | ||||||
Open Text Corp. | 564,231 | 19,837,364 | ||||||
|
| |||||||
60,893,377 | ||||||||
TEXTILES, APPAREL & LUXURY GOODS — 0.47% |
| |||||||
Gildan Activewear Inc. | 468,907 | 13,620,571 | ||||||
|
| |||||||
13,620,571 | ||||||||
TRADING COMPANIES & DISTRIBUTORS — 0.33% |
| |||||||
Finning International Inc. | 358,888 | 9,573,334 | ||||||
|
| |||||||
9,573,334 | ||||||||
WIRELESS TELECOMMUNICATION SERVICES — 1.21% |
| |||||||
Rogers Communications Inc. Class B | 771,410 | 34,809,323 | ||||||
|
| |||||||
34,809,323 | ||||||||
|
| |||||||
TOTAL COMMON STOCKS |
| |||||||
(Cost: $3,329,516,798) |
| 2,866,096,421 | ||||||
SHORT-TERM INVESTMENTS — 0.06% |
| |||||||
MONEY MARKET FUNDS — 0.06% |
| |||||||
BlackRock Cash Funds: Institutional, |
| |||||||
1.58%d,e,f | 997,231 | 997,331 |
SCHEDULESOF INVESTMENTS | 77 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI CANADA ETF
February 28, 2018
Security | Shares | Value | ||||||
BlackRock Cash Funds: Treasury, | ||||||||
1.32%d,e | 629,153 | $ | 629,153 | |||||
|
| |||||||
1,626,484 | ||||||||
TOTAL SHORT-TERM INVESTMENTS |
| 1,626,484 | ||||||
|
| |||||||
TOTAL INVESTMENTS |
| |||||||
(Cost: $3,331,143,182) | 2,867,722,905 | |||||||
Other Assets, Less Liabilities — 0.32% |
| 9,317,623 | ||||||
|
| |||||||
NET ASSETS — 100.00% | $ | 2,877,040,528 | ||||||
|
|
a | Non-income producing security. |
b | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
c | All or a portion of this security is on loan. |
d | Affiliate of the Fund. |
e | Annualized 7-day yield as of period end. |
f | All or a portion of this security was purchased with cash collateral received from loaned securities. |
Affiliates (Note 2)
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows:
Affiliated issuer | Shares held at 08/31/17 | Shares purchased | Shares sold | Shares held at 02/28/18 | Value at 02/28/18 | Income | Net realized gain (loss) a | Change in unrealized appreciation (depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, | 43,796,579 | — | (42,799,348 | )b | 997,231 | $ | 997,331 | $ | 35,956 | c | $ | (3,339 | ) | $ | (2,587 | ) | ||||||||||||||||
BlackRock Cash Funds: Treasury, | 412,255 | 216,898 | b | — | 629,153 | 629,153 | 12,549 | — | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 1,626,484 | $ | 48,505 | $ | (3,339 | ) | $ | (2,587 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
a | Includes realized capital gain distributions from an affiliated fund, if any. |
b | Net of purchases and sales. |
c | Includes the Fund’s portion of securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. |
Futures Contracts (Note 5)
Futures contracts outstanding as of February 28, 2018 were as follows:
Description | Number of contracts | Expiration date | Notional amount (000) | Value / unrealized appreciation (depreciation) | ||||||||||||
Long Contracts | ||||||||||||||||
S&P/TSX 60 Index | 72 | Mar 2018 | $ | 10,257 | $ | (313,006 | ) | |||||||||
|
| |||||||||||||||
78 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI CANADA ETF
February 28, 2018
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments |
| |||||||||||||||
Assets |
| |||||||||||||||
Common stocks | $ | 2,866,096,421 | $ | — | $ | — | $ | 2,866,096,421 | ||||||||
Money market funds | 1,626,484 | — | — | 1,626,484 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 2,867,722,905 | $ | — | $ | — | $ | 2,867,722,905 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative financial instrumentsa |
| |||||||||||||||
Liabilities |
| |||||||||||||||
Futures contracts | $ | (313,006 | ) | $ | — | $ | — | $ | (313,006 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | (313,006 | ) | $ | — | $ | — | $ | (313,006 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
a | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
SCHEDULESOF INVESTMENTS | 79 |
Table of Contents
Schedule of Investments (Unaudited)
February 28, 2018
Security | Shares | Value | ||||||
COMMON STOCKS — 99.62% |
| |||||||
AIR FREIGHT & LOGISTICS — 0.24% |
| |||||||
Yamato Holdings Co. Ltd. | 2,221,200 | $ | 55,745,968 | |||||
|
| |||||||
55,745,968 | ||||||||
AIRLINES — 0.26% |
| |||||||
ANA Holdings Inc. | 740,400 | 29,857,469 | ||||||
Japan Airlines Co. Ltd. | 740,400 | 28,372,575 | ||||||
|
| |||||||
58,230,044 | ||||||||
AUTO COMPONENTS — 3.15% |
| |||||||
Aisin Seiki Co. Ltd. | 1,023,500 | 60,140,996 | ||||||
Bridgestone Corp. | 3,948,800 | 176,966,043 | ||||||
Denso Corp. | 2,961,600 | 174,440,336 | ||||||
Koito Manufacturing Co. Ltd. | 740,400 | 51,693,735 | ||||||
NGK Spark Plug Co. Ltd. | 987,200 | 25,275,577 | ||||||
NOK Corp. | 493,600 | 10,630,175 | ||||||
Stanley Electric Co. Ltd. | 740,400 | 29,246,858 | ||||||
Sumitomo Electric Industries Ltd. | 4,689,200 | 74,619,386 | ||||||
Sumitomo Rubber Industries Ltd. | 1,234,000 | 23,799,934 | ||||||
Toyoda Gosei Co. Ltd. | 493,600 | 12,064,184 | ||||||
Toyota Industries Corp. | 987,200 | 62,541,324 | ||||||
Yokohama Rubber Co. Ltd. (The) | 740,400 | 18,394,643 | ||||||
|
| |||||||
719,813,191 | ||||||||
AUTOMOBILES — 9.01% |
| |||||||
Honda Motor Co. Ltd. | 10,365,600 | 377,398,960 | ||||||
Isuzu Motors Ltd. | 3,455,600 | 54,632,840 | ||||||
Mazda Motor Corp. | 3,455,200 | 48,457,962 | ||||||
Mitsubishi Motors Corp. | 4,195,600 | 33,382,357 | ||||||
Nissan Motor Co. Ltd. | 14,067,600 | 148,315,918 | ||||||
Subaru Corp. | 3,724,100 | 131,925,383 | ||||||
Suzuki Motor Corp. | 2,080,500 | 119,832,744 | ||||||
Toyota Motor Corp. | 16,042,000 | 1,087,707,886 | ||||||
Yamaha Motor Co. Ltd. | 1,727,600 | 55,128,419 | ||||||
|
| |||||||
2,056,782,469 | ||||||||
BANKS — 7.18% |
| |||||||
Aozora Bank Ltd. | 740,400 | 30,495,834 | ||||||
Bank of Kyoto Ltd. (The) | 363,700 | 20,348,522 | ||||||
Chiba Bank Ltd. (The) | 3,815,000 | 31,748,465 | ||||||
Concordia Financial Group Ltd. | 7,650,800 | 44,884,502 | ||||||
Fukuoka Financial Group Inc. | 4,936,000 | 25,488,365 | ||||||
Hachijuni Bank Ltd. (The) | 2,468,000 | 15,010,843 |
Security | Shares | Value | ||||||
Japan Post Bank Co. Ltd. | 2,468,000 | $ | 33,907,389 | |||||
Kyushu Financial Group Inc. | 2,221,300 | 12,490,324 | ||||||
Mebuki Financial Group Inc. | 6,170,080 | 25,037,671 | ||||||
Mitsubishi UFJ Financial Group Inc. | 72,806,080 | 520,126,281 | ||||||
Mizuho Financial Group Inc. | 147,092,880 | 274,872,970 | ||||||
Resona Holdings Inc. | 13,574,000 | 77,852,847 | ||||||
Seven Bank Ltd. | 3,702,000 | 12,836,699 | ||||||
Shinsei Bank Ltd. | 987,200 | 15,690,841 | ||||||
Shizuoka Bank Ltd. (The) | 3,062,000 | 31,192,484 | ||||||
Sumitomo Mitsui Financial Group Inc. | 8,144,400 | 357,665,137 | ||||||
Sumitomo Mitsui Trust Holdings Inc. | 1,998,232 | 81,105,316 | ||||||
Suruga Bank Ltd. | 987,200 | 16,319,955 | ||||||
Yamaguchi Financial Group Inc. | 922,000 | 11,215,557 | ||||||
|
| |||||||
1,638,290,002 | ||||||||
BEVERAGES — 1.47% |
| |||||||
Asahi Group Holdings Ltd. | 2,468,000 | 127,002,371 | ||||||
Coca-Cola Bottlers Japan Holdings Inc. | 740,400 | 28,240,739 | ||||||
Kirin Holdings Co. Ltd. | 5,429,600 | 141,381,787 | ||||||
Suntory Beverage & Food Ltd. | 810,900 | 37,845,293 | ||||||
|
| |||||||
334,470,190 | ||||||||
BUILDING PRODUCTS — 1.38% |
| |||||||
Asahi Glass Co. Ltd. | 1,239,700 | 51,758,245 | ||||||
Daikin Industries Ltd. | 1,492,100 | 176,890,164 | ||||||
LIXIL Group Corp. | 1,727,600 | 42,435,121 | ||||||
TOTO Ltd. | 846,500 | 44,901,270 | ||||||
|
| |||||||
315,984,800 | ||||||||
CAPITAL MARKETS — 1.26% |
| |||||||
Daiwa Securities Group Inc. | 9,872,000 | 66,316,007 | ||||||
Japan Exchange Group Inc. | 3,208,400 | 55,806,105 | ||||||
Nomura Holdings Inc. | 22,212,000 | 137,304,111 | ||||||
SBI Holdings Inc./Japan | 1,234,010 | 28,668,861 | ||||||
|
| |||||||
288,095,084 | ||||||||
CHEMICALS — 4.57% |
| |||||||
Air Water Inc. | 987,200 | 19,770,830 | ||||||
Asahi Kasei Corp. | 7,650,800 | 99,197,618 | ||||||
Daicel Corp. | 1,727,600 | 19,930,421 | ||||||
Hitachi Chemical Co. Ltd. | 740,400 | 16,646,077 | ||||||
JSR Corp. | 1,234,000 | 29,952,298 | ||||||
Kaneka Corp. | 1,370,000 | 14,007,497 |
80 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN ETF
February 28, 2018
Security | Shares | Value | ||||||
Kansai Paint Co. Ltd. | 1,234,000 | $ | 31,224,404 | |||||
Kuraray Co. Ltd. | 2,221,200 | 39,009,688 | ||||||
Mitsubishi Chemical Holdings Corp. | 8,884,800 | 91,091,994 | ||||||
Mitsubishi Gas Chemical Co. Inc. | 1,015,700 | 25,510,295 | ||||||
Mitsui Chemicals Inc. | 1,052,200 | 32,392,831 | ||||||
Nippon Paint Holdings Co. Ltd. | 987,200 | 36,174,050 | ||||||
Nissan Chemical Industries Ltd. | 740,400 | 29,559,102 | ||||||
Nitto Denko Corp. | 996,800 | 83,168,646 | ||||||
Shin-Etsu Chemical Co. Ltd. | 2,337,600 | 249,193,571 | ||||||
Sumitomo Chemical Co. Ltd. | 9,872,000 | 61,893,707 | ||||||
Taiyo Nippon Sanso Corp. | 740,400 | 10,900,786 | ||||||
Teijin Ltd. | 1,234,000 | 24,482,246 | ||||||
Toray Industries Inc. | 8,884,800 | 90,425,873 | ||||||
Tosoh Corp. | 1,764,200 | 37,200,225 | ||||||
|
| |||||||
1,041,732,159 | ||||||||
COMMERCIAL SERVICES & SUPPLIES — 0.84% |
| |||||||
Dai Nippon Printing Co. Ltd. | 1,583,100 | 33,396,355 | ||||||
Park24 Co. Ltd. | 740,400 | 17,860,359 | ||||||
Secom Co. Ltd. | 1,241,800 | 89,377,480 | ||||||
Sohgo Security Services Co. Ltd. | 493,600 | 23,406,738 | ||||||
Toppan Printing Co. Ltd. | 3,113,000 | 26,810,806 | ||||||
|
| |||||||
190,851,738 | ||||||||
CONSTRUCTION & ENGINEERING — 0.96% |
| |||||||
JGC Corp. | 1,234,000 | 28,460,466 | ||||||
Kajima Corp. | 5,242,000 | 50,206,869 | ||||||
Obayashi Corp. | 3,948,800 | 44,926,135 | ||||||
Shimizu Corp. | 3,455,200 | 32,316,101 | ||||||
Taisei Corp. | 1,257,900 | 64,247,739 | ||||||
|
| |||||||
220,157,310 | ||||||||
CONSTRUCTION MATERIALS — 0.12% |
| |||||||
Taiheiyo Cement Corp. | 740,400 | 27,755,026 | ||||||
|
| |||||||
27,755,026 | ||||||||
CONSUMER FINANCE — 0.20% |
| |||||||
Acom Co. Ltd.a,b | 2,468,000 | 11,240,785 | ||||||
AEON Financial Service Co. Ltd. | 740,470 | 17,362,410 | ||||||
Credit Saison Co. Ltd. | 987,200 | 17,106,348 | ||||||
|
| |||||||
45,709,543 | ||||||||
CONTAINERS & PACKAGING — 0.06% |
| |||||||
Toyo Seikan Group Holdings Ltd. | 987,200 | 14,756,422 | ||||||
|
| |||||||
14,756,422 | ||||||||
DIVERSIFIED CONSUMER SERVICES — 0.08% |
| |||||||
Benesse Holdings Inc. | 493,600 | 17,832,604 | ||||||
|
| |||||||
17,832,604 |
Security | Shares | Value | ||||||
DIVERSIFIED FINANCIAL SERVICES — 0.72% |
| |||||||
Mitsubishi UFJ Lease & Finance Co. Ltd. | 2,714,800 | $ | 17,376,959 | |||||
ORIX Corp. | 8,144,400 | 145,783,272 | ||||||
|
| |||||||
163,160,231 | ||||||||
DIVERSIFIED TELECOMMUNICATION SERVICES — 0.86% |
| |||||||
Nippon Telegraph & Telephone Corp. | 4,219,200 | 196,992,216 | ||||||
|
| |||||||
196,992,216 | ||||||||
ELECTRIC UTILITIES — 0.98% |
| |||||||
Chubu Electric Power Co. Inc. | 3,948,800 | 54,048,286 | ||||||
Chugoku Electric Power Co. Inc. (The) | 1,727,600 | 20,254,230 | ||||||
Kansai Electric Power Co. Inc. (The) | 4,195,600 | 51,312,103 | ||||||
Kyushu Electric Power Co. Inc. | 2,468,000 | 27,778,155 | ||||||
Tohoku Electric Power Co. Inc. | 2,714,800 | 35,720,718 | ||||||
Tokyo Electric Power Co. Holdings Inc.a | 8,638,000 | 33,352,289 | ||||||
|
| |||||||
222,465,781 | ||||||||
ELECTRICAL EQUIPMENT — 2.09% |
| |||||||
Fuji Electric Co. Ltd. | 2,935,000 | 22,499,695 | ||||||
Mabuchi Motor Co. Ltd. | 270,000 | 13,992,784 | ||||||
Mitsubishi Electric Corp. | 11,846,400 | 201,723,526 | ||||||
Nidec Corp. | 1,480,800 | 239,525,870 | ||||||
|
| |||||||
477,741,875 | ||||||||
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 5.65% |
| |||||||
Alps Electric Co. Ltd. | 1,234,700 | 34,192,760 | ||||||
Hamamatsu Photonics KK | 987,200 | 39,643,428 | ||||||
Hirose Electric Co. Ltd. | 246,860 | 36,900,023 | ||||||
Hitachi High-Technologies Corp. | 493,600 | 24,285,647 | ||||||
Hitachi Ltd. | 29,616,000 | 227,036,109 | ||||||
Keyence Corp. | 579,652 | 354,565,260 | ||||||
Kyocera Corp. | 1,974,400 | 117,551,785 | ||||||
Murata Manufacturing Co. Ltd. | 1,132,500 | 159,041,399 | ||||||
Nippon Electric Glass Co. Ltd. | 493,700 | 15,060,152 | ||||||
Omron Corp. | 1,234,000 | 73,550,818 | ||||||
Shimadzu Corp. | 1,481,500 | 38,250,621 | ||||||
TDK Corp. | 759,200 | 69,512,994 | ||||||
Yaskawa Electric Corp. | 1,480,800 | 69,526,339 | ||||||
Yokogawa Electric Corp. | 1,480,800 | 30,225,223 | ||||||
|
| |||||||
1,289,342,558 |
SCHEDULESOF INVESTMENTS | 81 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN ETF
February 28, 2018
Security | Shares | Value | ||||||
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) — 1.05% |
| |||||||
Daiwa House REIT Investment Corp. | 9,872 | $ | 23,786,057 | |||||
Japan Prime Realty Investment Corp. | 4,936 | 17,023,082 | ||||||
Japan Real Estate Investment Corp. | 7,404 | 38,440,710 | ||||||
Japan Retail Fund Investment Corp. | 14,808 | 28,490,534 | ||||||
Nippon Building Fund Inc. | 7,811 | 42,457,055 | ||||||
Nippon Prologis REIT Inc. | 12,340 | 27,986,318 | ||||||
Nomura Real Estate Master Fund Inc. | 22,212 | 30,475,018 | ||||||
United Urban Investment Corp. | 19,744 | 31,233,655 | ||||||
|
| |||||||
239,892,429 | ||||||||
FOOD & STAPLES RETAILING — 1.64% |
| |||||||
Aeon Co. Ltd. | 3,702,400 | 62,681,089 | ||||||
FamilyMart UNY Holdings Co. Ltd. | 493,600 | 37,423,026 | ||||||
Lawson Inc. | 290,800 | 19,049,641 | ||||||
Seven & i Holdings Co. Ltd. | 4,689,280 | 196,044,029 | ||||||
Sundrug Co. Ltd. | 493,600 | 22,874,767 | ||||||
Tsuruha Holdings Inc. | 246,800 | 35,896,500 | ||||||
|
| |||||||
373,969,052 | ||||||||
FOOD PRODUCTS — 1.34% |
| |||||||
Ajinomoto Co. Inc. | 3,208,400 | 58,842,967 | ||||||
Calbee Inc. | 495,400 | 16,620,889 | ||||||
Kikkoman Corp. | 987,200 | 39,412,136 | ||||||
MEIJI Holdings Co. Ltd. | 740,456 | 54,334,572 | ||||||
NH Foods Ltd. | 854,000 | 19,248,114 | ||||||
Nisshin Seifun Group Inc. | 1,234,075 | 24,541,560 | ||||||
Nissin Foods Holdings Co. Ltd. | 329,100 | 22,576,374 | ||||||
Toyo Suisan Kaisha Ltd. | 493,600 | 19,382,260 | ||||||
Yakult Honsha Co. Ltd. | 514,900 | 37,011,227 | ||||||
Yamazaki Baking Co. Ltd. | 740,400 | 14,522,817 | ||||||
|
| |||||||
306,492,916 | ||||||||
GAS UTILITIES — 0.53% |
| |||||||
Osaka Gas Co. Ltd. | 2,242,300 | 44,507,674 | ||||||
Toho Gas Co. Ltd. | 493,600 | 14,525,130 | ||||||
Tokyo Gas Co. Ltd. | 2,468,000 | 62,101,870 | ||||||
|
| |||||||
121,134,674 | ||||||||
HEALTH CARE EQUIPMENT & SUPPLIES — 1.74% |
| |||||||
CYBERDYNE Inc.a,b | 493,600 | 7,415,218 |
Security | Shares | Value | ||||||
Hoya Corp. | 2,468,000 | $ | 131,165,625 | |||||
Olympus Corp. | 1,733,900 | 69,953,981 | ||||||
Sysmex Corp. | 987,200 | 82,432,426 | ||||||
Terumo Corp. | 1,974,400 | 106,764,331 | ||||||
|
| |||||||
397,731,581 | ||||||||
HEALTH CARE PROVIDERS & SERVICES — 0.30% |
| |||||||
Alfresa Holdings Corp. | 1,234,000 | 27,859,107 | ||||||
Medipal Holdings Corp. | 987,200 | 20,261,169 | ||||||
Suzuken Co. Ltd./Aichi Japan | 493,640 | 20,262,810 | ||||||
|
| |||||||
68,383,086 | ||||||||
HEALTH CARE TECHNOLOGY — 0.21% |
| |||||||
M3 Inc. | 1,234,000 | 48,340,003 | ||||||
|
| |||||||
48,340,003 | ||||||||
HOTELS, RESTAURANTS & LEISURE — 0.65% |
| |||||||
McDonald’s Holdings Co. Japan Ltd. | 493,600 | 22,088,374 | ||||||
Oriental Land Co. Ltd./Japan | 1,282,100 | 125,200,150 | ||||||
|
| |||||||
147,288,524 | ||||||||
HOUSEHOLD DURABLES — 3.72% |
| |||||||
Casio Computer Co. Ltd. | 1,234,400 | 18,358,960 | ||||||
Iida Group Holdings Co. Ltd. | 987,280 | 18,717,656 | ||||||
Nikon Corp. | 1,974,400 | 40,374,310 | ||||||
Panasonic Corp. | 13,574,015 | 213,395,906 | ||||||
Rinnai Corp. | 246,800 | 22,227,150 | ||||||
Sekisui Chemical Co. Ltd. | 2,468,000 | 46,836,605 | ||||||
Sekisui House Ltd. | 3,455,200 | 60,843,642 | ||||||
Sharp Corp./Japana,b | 987,200 | 34,693,782 | ||||||
Sony Corp. | 7,699,600 | 392,682,847 | ||||||
|
| |||||||
848,130,858 | ||||||||
HOUSEHOLD PRODUCTS — 0.43% |
| |||||||
Lion Corp. | 1,480,800 | 27,963,188 | ||||||
Unicharm Corp. | 2,468,000 | 69,456,952 | ||||||
|
| |||||||
97,420,140 | ||||||||
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS — 0.11% |
| |||||||
Electric Power Development Co. Ltd. | 987,200 | 25,183,060 | ||||||
|
| |||||||
25,183,060 | ||||||||
INDUSTRIAL CONGLOMERATES — 0.70% |
| |||||||
Keihan Holdings Co. Ltd. | 493,600 | 15,519,685 | ||||||
Seibu Holdings Inc. | 1,480,800 | 25,340,338 | ||||||
Toshiba Corp.a | 39,817,000 | 118,288,637 | ||||||
|
| |||||||
159,148,660 |
82 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN ETF
February 28, 2018
Security | Shares | Value | ||||||
INSURANCE — 3.05% |
| |||||||
Dai-ichi Life Holdings Inc. | 6,664,700 | $ | 133,162,836 | |||||
Japan Post Holdings Co. Ltd. | 9,625,200 | 116,453,148 | ||||||
MS&AD Insurance Group Holdings Inc. | 2,961,640 | 92,480,994 | ||||||
Sompo Holdings Inc. | 2,221,250 | 86,243,745 | ||||||
Sony Financial Holdings Inc. | 987,200 | 18,503,350 | ||||||
T&D Holdings Inc. | 3,208,400 | 53,505,907 | ||||||
Tokio Marine Holdings Inc. | 4,195,600 | 195,261,231 | ||||||
|
| |||||||
695,611,211 | ||||||||
INTERNET & DIRECT MARKETING RETAIL — 0.37% |
| |||||||
Rakuten Inc. | 5,676,400 | 51,989,557 | ||||||
Start Today Co. Ltd. | 1,234,700 | 32,214,093 | ||||||
|
| |||||||
84,203,650 | ||||||||
INTERNET SOFTWARE & SERVICES — 0.36% |
| |||||||
DeNA Co. Ltd. | 740,400 | 13,565,269 | ||||||
Kakaku.com Inc. | 987,200 | 16,847,300 | ||||||
Mixi Inc. | 251,900 | 10,233,696 | ||||||
Yahoo Japan Corp. | 8,884,800 | 41,299,478 | ||||||
|
| |||||||
81,945,743 | ||||||||
IT SERVICES — 0.94% |
| |||||||
Fujitsu Ltd. | 12,340,000 | 74,464,421 | ||||||
Nomura Research Institute Ltd. | 773,304 | 34,931,121 | ||||||
NTT Data Corp. | 3,702,000 | 38,579,485 | ||||||
Obic Co. Ltd. | 493,600 | 41,354,988 | ||||||
Otsuka Corp. | 270,800 | 25,302,245 | ||||||
|
| |||||||
214,632,260 | ||||||||
LEISURE PRODUCTS — 0.78% |
| |||||||
Bandai Namco Holdings Inc. | 1,234,098 | 40,074,500 | ||||||
Sankyo Co. Ltd. | 246,800 | 8,881,608 | ||||||
Sega Sammy Holdings Inc. | 987,200 | 14,423,362 | ||||||
Shimano Inc. | 493,600 | 71,607,966 | ||||||
Yamaha Corp. | 987,200 | 43,760,424 | ||||||
|
| |||||||
178,747,860 | ||||||||
MACHINERY — 6.04% |
| |||||||
Amada Holdings Co. Ltd. | 1,974,400 | 26,570,811 | ||||||
Daifuku Co. Ltd. | 593,600 | 39,274,786 | ||||||
FANUC Corp. | 1,149,700 | 294,253,381 | ||||||
Hino Motors Ltd. | 1,480,800 | 19,636,681 | ||||||
Hitachi Construction Machinery Co. Ltd. | 740,400 | 31,883,586 | ||||||
Hoshizaki Corp. | 301,300 | 27,333,152 | ||||||
IHI Corp. | 987,200 | 33,861,131 | ||||||
JTEKT Corp. | 1,480,800 | 23,092,181 |
Security | Shares | Value | ||||||
Kawasaki Heavy Industries Ltd. | 987,200 | $ | 36,266,567 | |||||
Komatsu Ltd. | 5,676,400 | 208,319,970 | ||||||
Kubota Corp. | 6,416,800 | 117,084,575 | ||||||
Kurita Water Industries Ltd. | 493,600 | 15,242,135 | ||||||
Makita Corp. | 1,480,800 | 70,358,990 | ||||||
MINEBEA MITSUMI Inc. | 2,468,000 | 56,897,802 | ||||||
Mitsubishi Heavy Industries Ltd. | 1,974,400 | 81,081,681 | ||||||
Nabtesco Corp. | 740,400 | 32,230,523 | ||||||
NGK Insulators Ltd. | 1,480,800 | 27,810,536 | ||||||
NSK Ltd. | 2,353,000 | 35,480,783 | ||||||
SMC Corp./Japan | 329,300 | 138,966,112 | ||||||
Sumitomo Heavy Industries Ltd. | 740,400 | 29,316,246 | ||||||
THK Co. Ltd. | 741,000 | 32,499,695 | ||||||
|
| |||||||
1,377,461,324 | ||||||||
MARINE — 0.20% |
| |||||||
Mitsui OSK Lines Ltd. | 740,400 | 23,383,609 | ||||||
Nippon Yusen KKa | 987,200 | 21,574,907 | ||||||
|
| |||||||
44,958,516 | ||||||||
MEDIA — 0.46% |
| |||||||
Dentsu Inc. | 1,290,900 | 59,823,818 | ||||||
Hakuhodo DY Holdings Inc. | 1,481,500 | 21,548,081 | ||||||
Toho Co. Ltd./Tokyo | 740,400 | 24,112,179 | ||||||
|
| |||||||
105,484,078 | ||||||||
METALS & MINING — 1.45% |
| |||||||
Hitachi Metals Ltd. | 1,234,000 | 15,912,881 | ||||||
JFE Holdings Inc. | 3,208,450 | 74,795,177 | ||||||
Kobe Steel Ltd.a | 1,980,000 | 22,081,439 | ||||||
Maruichi Steel Tube Ltd. | 293,700 | 9,275,751 | ||||||
Mitsubishi Materials Corp. | 740,400 | 23,383,609 | ||||||
Nippon Steel & Sumitomo Metal Corp. | 4,689,670 | 112,357,822 | ||||||
Sumitomo Metal Mining Co. Ltd. | 1,525,100 | 71,920,746 | ||||||
|
| |||||||
329,727,425 | ||||||||
MULTILINE RETAIL — 0.76% |
| |||||||
Don Quijote Holdings Co. Ltd. | 740,400 | 41,701,926 | ||||||
Isetan Mitsukoshi Holdings Ltd. | 1,974,460 | 23,351,938 | ||||||
J Front Retailing Co. Ltd. | 1,480,800 | 27,075,027 | ||||||
Marui Group Co. Ltd. | 1,234,000 | 23,834,628 | ||||||
Ryohin Keikaku Co. Ltd. | 123,100 | 42,281,196 | ||||||
Takashimaya Co. Ltd. | 1,522,000 | 15,533,087 | ||||||
|
| |||||||
173,777,802 | ||||||||
OIL, GAS & CONSUMABLE FUELS — 1.02% |
| |||||||
Idemitsu Kosan Co. Ltd. | 740,400 | 28,622,370 | ||||||
Inpex Corp. | 5,923,200 | 72,801,432 |
SCHEDULESOF INVESTMENTS | 83 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN ETF
February 28, 2018
Security | Shares | Value | ||||||
JXTG Holdings Inc. | 18,756,895 | $ | 115,313,464 | |||||
Showa Shell Sekiyu KK | 1,234,000 | 16,109,479 | ||||||
|
| |||||||
232,846,745 | ||||||||
PAPER & FOREST PRODUCTS — 0.14% |
| |||||||
Oji Holdings Corp. | 4,936,000 | 32,473,380 | ||||||
|
| |||||||
32,473,380 | ||||||||
PERSONAL PRODUCTS — 1.79% |
| |||||||
Kao Corp. | 3,001,900 | 220,897,979 | ||||||
Kose Corp. | 145,400 | 27,443,475 | ||||||
Pola Orbis Holdings Inc. | 513,000 | 21,706,527 | ||||||
Shiseido Co. Ltd. | 2,285,800 | 138,405,452 | ||||||
|
| |||||||
408,453,433 | ||||||||
PHARMACEUTICALS — 5.12% |
| |||||||
Astellas Pharma Inc. | 12,586,850 | 186,434,717 | ||||||
Chugai Pharmaceutical Co. Ltd. | 1,480,800 | 77,020,196 | ||||||
Daiichi Sankyo Co. Ltd. | 3,455,669 | 123,323,064 | ||||||
Eisai Co. Ltd. | 1,727,600 | 92,220,698 | ||||||
Hisamitsu Pharmaceutical Co. Inc. | 307,400 | 22,297,699 | ||||||
Kyowa Hakko Kirin Co. Ltd. | 1,480,800 | 31,501,954 | ||||||
Mitsubishi Tanabe Pharma Corp. | 1,234,000 | 26,540,743 | ||||||
Ono Pharmaceutical Co. Ltd. | 2,476,900 | 72,655,424 | ||||||
Otsuka Holdings Co. Ltd. | 2,468,000 | 124,527,548 | ||||||
Santen Pharmaceutical Co. Ltd. | 2,221,200 | 35,803,983 | ||||||
Shionogi & Co. Ltd. | 1,769,400 | 92,710,889 | ||||||
Sumitomo Dainippon Pharma Co. Ltd. | 987,200 | 15,200,502 | ||||||
Taisho Pharmaceutical Holdings Co. Ltd. | 142,700 | 13,079,106 | ||||||
Takeda Pharmaceutical Co. Ltd. | 4,442,400 | 254,458,074 | ||||||
|
| |||||||
1,167,774,597 | ||||||||
PROFESSIONAL SERVICES — 0.82% |
| |||||||
Persol Holdings Co. Ltd. | 987,200 | 25,451,358 | ||||||
Recruit Holdings Co. Ltd. | 6,663,600 | 161,867,309 | ||||||
|
| |||||||
187,318,667 | ||||||||
REAL ESTATE MANAGEMENT & DEVELOPMENT — 2.82% |
| |||||||
Aeon Mall Co. Ltd. | 740,400 | 15,521,998 | ||||||
Daito Trust Construction Co. Ltd. | 384,200 | 63,910,314 | ||||||
Daiwa House Industry Co. Ltd. | 3,455,200 | 128,778,693 | ||||||
Hulic Co. Ltd. | 1,727,600 | 19,331,375 | ||||||
Mitsubishi Estate Co. Ltd. | 7,650,800 | 134,474,255 | ||||||
Mitsui Fudosan Co. Ltd. | 5,429,600 | 131,179,502 |
Security | Shares | Value | ||||||
Nomura Real Estate Holdings Inc. | 740,400 | $ | 17,957,502 | |||||
Sumitomo Realty & Development Co. Ltd. | 2,468,000 | 90,226,962 | ||||||
Tokyo Tatemono Co. Ltd. | 1,234,000 | 19,231,920 | ||||||
Tokyu Fudosan Holdings Corp. | 2,961,600 | 21,981,980 | ||||||
|
| |||||||
642,594,501 | ||||||||
ROAD & RAIL — 3.58% |
| |||||||
Central Japan Railway Co. | 855,700 | 159,985,146 | ||||||
East Japan Railway Co. | 1,999,200 | 188,481,814 | ||||||
Hankyu Hanshin Holdings Inc. | 1,480,800 | 55,510,051 | ||||||
Keikyu Corp. | 1,480,800 | 26,617,070 | ||||||
Keio Corp. | 740,400 | 32,577,461 | ||||||
Keisei Electric Railway Co. Ltd. | 762,700 | 25,017,103 | ||||||
Kintetsu Group Holdings Co. Ltd. | 1,090,600 | 42,109,292 | ||||||
Kyushu Railway Co. | 987,200 | 30,530,528 | ||||||
Nagoya Railroad Co. Ltd. | 1,107,200 | 28,358,349 | ||||||
Nippon Express Co. Ltd. | 493,600 | 33,306,031 | ||||||
Odakyu Electric Railway Co. Ltd. | 1,727,600 | 35,327,522 | ||||||
Tobu Railway Co. Ltd. | 1,234,000 | 38,278,806 | ||||||
Tokyu Corp. | 3,233,200 | 51,904,518 | ||||||
West Japan Railway Co. | 987,200 | 68,841,715 | ||||||
|
| |||||||
816,845,406 | ||||||||
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 1.64% |
| |||||||
Disco Corp. | 144,500 | 34,139,403 | ||||||
Renesas Electronics Corp.a | 4,195,600 | 48,638,369 | ||||||
Rohm Co. Ltd. | 539,700 | 57,507,980 | ||||||
Sumco Corp. | 1,480,800 | 40,008,869 | ||||||
Tokyo Electron Ltd. | 987,252 | 194,850,543 | ||||||
|
| |||||||
375,145,164 | ||||||||
SOFTWARE — 1.99% |
| |||||||
Konami Holdings Corp. | 546,500 | 28,937,022 | ||||||
LINE Corp.a | 247,700 | 10,086,280 | ||||||
Nexon Co. Ltd.a | 1,234,700 | 44,896,078 | ||||||
Nintendo Co. Ltd. | 672,300 | 309,230,908 | ||||||
Oracle Corp. Japan | 246,800 | 19,243,484 | ||||||
Trend Micro Inc./Japan | 740,400 | 42,187,639 | ||||||
|
| |||||||
454,581,411 | ||||||||
SPECIALTY RETAIL — 1.34% |
| |||||||
ABC-Mart Inc. | 246,800 | 15,727,848 | ||||||
Fast Retailing Co. Ltd. | 309,400 | 123,435,247 | ||||||
Hikari Tsushin Inc. | 93,100 | 13,506,284 | ||||||
Nitori Holdings Co. Ltd. | 493,600 | 83,334,464 |
84 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN ETF
February 28, 2018
Security | Shares | Value | ||||||
Shimamura Co. Ltd. | 108,100 | $ | 12,906,555 | |||||
USS Co. Ltd. | 1,480,800 | 30,697,058 | ||||||
Yamada Denki Co. Ltd. | 3,948,800 | 25,053,536 | ||||||
|
| |||||||
304,660,992 | ||||||||
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS — 2.39% |
| |||||||
Brother Industries Ltd. | 1,480,800 | 37,274,999 | ||||||
Canon Inc. | 6,472,950 | 248,471,985 | ||||||
FUJIFILM Holdings Corp. | 2,468,000 | 103,549,375 | ||||||
Konica Minolta Inc. | 2,962,300 | 27,511,731 | ||||||
NEC Corp. | 1,642,900 | 50,193,093 | ||||||
Ricoh Co. Ltd. | 4,195,600 | 45,453,480 | ||||||
Seiko Epson Corp. | 1,727,600 | 33,255,147 | ||||||
|
| |||||||
545,709,810 | ||||||||
TEXTILES, APPAREL & LUXURY GOODS — 0.07% |
| |||||||
Asics Corp. | 987,200 | 15,811,113 | ||||||
|
| |||||||
15,811,113 | ||||||||
TOBACCO — 0.84% |
| |||||||
Japan Tobacco Inc. | 6,721,300 | 191,992,150 | ||||||
|
| |||||||
191,992,150 | ||||||||
TRADING COMPANIES & DISTRIBUTORS — 4.06% |
| |||||||
ITOCHU Corp. | 9,131,600 | 176,804,139 | ||||||
Marubeni Corp. | 10,118,800 | 77,731,881 | ||||||
MISUMI Group Inc. | 1,727,600 | 50,190,338 | ||||||
Mitsubishi Corp. | 9,131,600 | 258,103,234 | ||||||
Mitsui & Co. Ltd. | 10,365,600 | 189,573,763 | ||||||
Sumitomo Corp. | 7,157,200 | 126,704,004 | ||||||
Toyota Tsusho Corp. | 1,234,000 | 46,200,553 | ||||||
|
| |||||||
925,307,912 | ||||||||
TRANSPORTATION INFRASTRUCTURE — 0.11% |
| |||||||
Japan Airport Terminal Co. Ltd. | 246,800 | 9,367,321 | ||||||
Kamigumi Co. Ltd. | 740,400 | 16,299,139 | ||||||
|
| |||||||
25,666,460 | ||||||||
WIRELESS TELECOMMUNICATION SERVICES — 3.98% |
| |||||||
KDDI Corp. | 11,106,000 | 274,306,387 | ||||||
NTT DOCOMO Inc. | 8,391,200 | 215,864,711 | ||||||
SoftBank Group Corp. | 5,024,800 | 418,870,681 | ||||||
|
| |||||||
909,041,779 | ||||||||
|
| |||||||
TOTAL COMMON STOCKS | ||||||||
(Cost: $20,713,590,423) | 22,731,797,583 |
Security | Shares | Value | ||||||
SHORT-TERM INVESTMENTS — 0.17% |
| |||||||
MONEY MARKET FUNDS — 0.17% |
| |||||||
BlackRock Cash Funds: Institutional, |
| |||||||
1.58%c,d,e | 34,703,366 | $ | 34,706,836 | |||||
BlackRock Cash Funds: Treasury, |
| |||||||
1.32%c,d | 3,566,449 | 3,566,449 | ||||||
|
| |||||||
38,273,285 | ||||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS | ||||||||
(Cost: $38,271,158) | 38,273,285 | |||||||
|
| |||||||
TOTAL INVESTMENTS |
| |||||||
(Cost: $20,751,861,581) | 22,770,070,868 | |||||||
Other Assets, Less Liabilities — 0.21% |
| 48,850,792 | ||||||
|
| |||||||
NET ASSETS — 100.00% | $ | 22,818,921,660 | ||||||
|
|
a | Non-income producing security. |
b | All or a portion of this security is on loan. |
c | Affiliate of the Fund. |
d | Annualized 7-day yield as of period end. |
e | All or a portion of this security was purchased with cash collateral received from loaned securities. |
SCHEDULESOF INVESTMENTS | 85 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN ETF
February 28, 2018
Affiliates (Note 2)
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows:
Affiliated issuer | Shares held at 08/31/17 | Shares purchased | Shares sold | Shares held at 02/28/18 | Value at 02/28/18 | Income | Net realized gain (loss) a | Change in unrealized appreciation (depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, |
| |||||||||||||||||||||||||||||||
SL Agency Shares | 40,539,970 | — | (5,836,604 | )b | 34,703,366 | $ | 34,706,836 | $ | 2,253,488 | c | $ | (5,338 | ) | $ | (4,685 | ) | ||||||||||||||||
BlackRock Cash Funds: Treasury, |
| |||||||||||||||||||||||||||||||
SL Agency Shares | 5,281,032 | — | (1,714,583 | )b | 3,566,449 | 3,566,449 | 70,791 | — | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 38,273,285 | $ | 2,324,279 | $ | (5,338 | ) | $ | (4,685 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
a | Includes realized capital gain distributions from an affiliated fund, if any. |
b | Net of purchases and sales. |
c | Includes the Fund’s portion of securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. |
Futures Contracts (Note 5)
Futures contracts outstanding as of February 28, 2018 were as follows:
Description | Number of contracts | Expiration date | Notional amount (000) | Value / unrealized appreciation (depreciation) | ||||||||||||
Long Contracts | ||||||||||||||||
TOPIX Index | 500 | Mar 2018 | $ | 82,845 | $ | (857,895 | ) | |||||||||
|
| |||||||||||||||
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments |
| |||||||||||||||
Assets |
| |||||||||||||||
Common stocks | $ | 22,731,797,583 | $ | — | $ | — | $ | 22,731,797,583 | ||||||||
Money market funds | 38,273,285 | — | — | 38,273,285 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 22,770,070,868 | $ | — | $ | — | $ | 22,770,070,868 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative financial instrumentsa |
| |||||||||||||||
Liabilities |
| |||||||||||||||
Futures contracts | $ | (857,895 | ) | $ | — | $ | — | $ | (857,895 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | (857,895 | ) | $ | — | $ | — | $ | (857,895 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
a | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
86 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
February 28, 2018
Security | Shares | Value | ||||||
COMMON STOCKS — 99.77% |
| |||||||
AIRLINES — 0.70% |
| |||||||
Controladora Vuela Cia. de Aviacion SAB de CV Class Aa,b | 4,002,900 | $ | 3,560,113 | |||||
Grupo Aeromexico SAB de CVa | 1,888,743 | 2,923,162 | ||||||
|
| |||||||
6,483,275 | ||||||||
AUTO COMPONENTS — 0.24% |
| |||||||
Rassini SAB de CV | 534,299 | 2,201,537 | ||||||
|
| |||||||
2,201,537 | ||||||||
BANKS — 13.35% |
| |||||||
Banco del Bajio SAa,c | 3,924,830 | 8,539,475 | ||||||
Banco Santander Mexico SA Institucion de Banca Multiple Grupo Financiero Santand Class B | 10,271,350 | 14,486,703 | ||||||
Banregio Grupo Financiero SAB de CV | 1,424,800 | 8,771,427 | ||||||
Grupo Financiero Banorte SAB de CV Series O | 11,282,794 | 67,671,647 | ||||||
Grupo Financiero Inbursa SAB de CV Series Ob | 12,858,392 | 20,527,629 | ||||||
Grupo Financiero Interacciones SA de CV Series O | 751,000 | 3,500,845 | ||||||
|
| |||||||
123,497,726 | ||||||||
BEVERAGES — 11.78% |
| |||||||
Arca Continental SAB de CV | 2,418,229 | 16,770,079 | ||||||
Coca-Cola Femsa SAB de CV Series L | 1,395,147 | 9,391,195 | ||||||
Fomento Economico Mexicano SAB de CV | 8,958,410 | 82,865,411 | ||||||
|
| |||||||
109,026,685 | ||||||||
BUILDING PRODUCTS — 0.35% |
| |||||||
Elementia SAB de CVa,c | 2,625,090 | 3,253,013 | ||||||
|
| |||||||
3,253,013 | ||||||||
CAPITAL MARKETS — 0.55% |
| |||||||
Bolsa Mexicana de Valores SAB de CV | 2,739,787 | 5,073,841 | ||||||
|
| |||||||
5,073,841 | ||||||||
CHEMICALS — 1.82% |
| |||||||
Mexichem SAB de CV | 6,013,218 | 16,840,963 | ||||||
|
| |||||||
16,840,963 | ||||||||
CONSTRUCTION MATERIALS — 4.25% |
| |||||||
Cemex SAB de CV CPOa | 59,603,029 | 39,330,986 | ||||||
|
| |||||||
39,330,986 |
Security | Shares | Value | ||||||
CONSUMER FINANCE — 1.24% |
| |||||||
Credito Real SAB de CV SOFOM ER | 1,747,374 | $ | 2,420,039 | |||||
Gentera SAB de CVb | 5,920,206 | 4,832,309 | ||||||
Unifin Financiera SAB de CV SOFOM ENR | 1,191,648 | 4,232,381 | ||||||
|
| |||||||
11,484,729 | ||||||||
DIVERSIFIED TELECOMMUNICATION SERVICES — 1.03% |
| |||||||
Axtel SAB de CV CPOa,b | 8,917,677 | 2,074,978 | ||||||
Telesites SAB de CVa,b | 9,510,046 | 7,490,289 | ||||||
|
| |||||||
9,565,267 | ||||||||
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) — 5.23% |
| |||||||
Concentradora Fibra Danhos SA de CV | 1,925,600 | 3,107,782 | ||||||
Concentradora Fibra Hotelera Mexicana SA de CVc | 7,368,890 | 4,100,988 | ||||||
Fibra Uno Administracion SA de CV | 16,291,100 | 22,951,049 | ||||||
Macquarie Mexico Real Estate Management SA de CV | 5,278,500 | 5,584,293 | ||||||
PLA Administradora Industrial S. de RL de CV | 5,198,700 | 7,786,891 | ||||||
Prologis Property Mexico SA de CV | 2,613,100 | 4,898,783 | ||||||
|
| |||||||
48,429,786 | ||||||||
FOOD & STAPLES RETAILING — 6.74% |
| |||||||
Grupo Comercial Chedraui SA de CV | 2,316,600 | 4,824,255 | ||||||
La Comer SAB de CVa,b | 3,790,555 | 3,767,048 | ||||||
Wal-Mart de Mexico SAB de CV | 23,048,533 | 53,751,813 | ||||||
|
| |||||||
62,343,116 | ||||||||
FOOD PRODUCTS — 5.56% |
| |||||||
Gruma SAB de CV Series B | 1,227,305 | 14,193,987 | ||||||
Grupo Bimbo SAB de CV | 9,083,504 | 21,236,729 | ||||||
Grupo Herdez SAB de CV | 1,729,344 | 4,233,762 | ||||||
Grupo Lala SAB de CVb | 3,881,000 | 5,679,462 | ||||||
Industrias Bachoco SAB de CV Series Bb | 1,249,900 | 6,072,287 | ||||||
|
| |||||||
51,416,227 | ||||||||
GAS UTILITIES — 1.43% |
| |||||||
Infraestructura Energetica Nova SAB de CV | 2,786,800 | 13,190,292 | ||||||
|
| |||||||
13,190,292 |
SCHEDULESOF INVESTMENTS | 87 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI MEXICO ETF
February 28, 2018
Security | Shares | Value | ||||||
HOTELS, RESTAURANTS & LEISURE — 1.65% |
| |||||||
Alsea SAB de CVb | 3,237,766 | $ | 11,027,659 | |||||
Hoteles City Express SAB de CVa,b | 2,910,000 | 4,230,736 | ||||||
|
| |||||||
15,258,395 | ||||||||
HOUSEHOLD DURABLES — 0.30% |
| |||||||
Consorcio ARA SAB de CV | 7,141,819 | 2,774,661 | ||||||
|
| |||||||
2,774,661 | ||||||||
HOUSEHOLD PRODUCTS — 1.70% |
| |||||||
Kimberly-Clark de Mexico SAB de CV Series A | 8,621,454 | 15,696,557 | ||||||
|
| |||||||
15,696,557 | ||||||||
INDUSTRIAL CONGLOMERATES — 3.05% |
| |||||||
Alfa SAB de CV Class A | 15,747,851 | 18,688,418 | ||||||
Grupo Carso SAB de CV Series A1b | 2,725,533 | 9,561,829 | ||||||
|
| |||||||
28,250,247 | ||||||||
INSURANCE — 0.54% |
| |||||||
Qualitas Controladora SAB de CV | 1,887,100 | 4,959,051 | ||||||
|
| |||||||
4,959,051 | ||||||||
MACHINERY — 0.24% |
| |||||||
Grupo Rotoplas SAB de CVb | 1,449,600 | 2,208,168 | ||||||
|
| |||||||
2,208,168 | ||||||||
MEDIA — 4.49% |
| |||||||
Grupo Televisa SAB CPOb | 11,632,047 | 39,772,267 | ||||||
TV Azteca SAB de CV CPOb | 12,011,139 | 1,750,709 | ||||||
|
| |||||||
41,522,976 | ||||||||
METALS & MINING — 8.42% |
| |||||||
Grupo Mexico SAB de CV Series B | 15,651,086 | 53,381,427 | ||||||
Industrias CH SAB de CV Series Ba,b | 1,007,283 | 4,396,019 | ||||||
Industrias Penoles SAB de CV | 783,173 | 17,099,713 | ||||||
Minera Frisco SAB de CV Series A1a | 5,043,003 | 3,071,188 | ||||||
|
| |||||||
77,948,347 | ||||||||
MORTGAGE REAL ESTATE INVESTMENT — 0.24% |
| |||||||
Concentradora Hipotecaria SAPI de CVb | 2,431,200 | 2,249,894 | ||||||
|
| |||||||
2,249,894 |
Security | Shares | Value | ||||||
MULTILINE RETAIL — 0.82% |
| |||||||
El Puerto de Liverpool SAB de CV Series C1b | 1,113,565 | $ | 7,596,111 | |||||
|
| |||||||
7,596,111 | ||||||||
PHARMACEUTICALS — 0.61% |
| |||||||
Genomma Lab Internacional SAB de CV Series Ba,b | 5,244,493 | 5,667,844 | ||||||
|
| |||||||
5,667,844 | ||||||||
REAL ESTATE MANAGEMENT & DEVELOPMENT — 0.80% |
| |||||||
Corp Inmobiliaria Vesta SAB de CVb | 3,581,549 | 4,916,633 | ||||||
Grupo GICSA SA de CVa,b | 4,273,666 | 2,464,488 | ||||||
|
| |||||||
7,381,121 | ||||||||
TRANSPORTATION INFRASTRUCTURE — 6.59% |
| |||||||
Grupo Aeroportuario del Centro Norte SAB de CV | 1,583,292 | 7,729,741 | ||||||
Grupo Aeroportuario del Pacifico SAB de CV Series B | 1,996,249 | 19,269,458 | ||||||
Grupo Aeroportuario del Sureste SAB de CV Series B | 1,150,525 | 20,369,421 | ||||||
Promotora y Operadora de Infraestructura SAB de CV | 1,332,360 | 13,585,595 | ||||||
|
| |||||||
60,954,215 | ||||||||
WIRELESS TELECOMMUNICATION SERVICES — 16.05% |
| |||||||
America Movil SAB de CV Series L | 161,554,218 | 148,478,833 | ||||||
|
| |||||||
148,478,833 | ||||||||
|
| |||||||
TOTAL COMMON STOCKS |
| |||||||
(Cost: $1,296,542,107) |
| 923,083,863 | ||||||
SHORT-TERM INVESTMENTS — 1.72% |
| |||||||
MONEY MARKET FUNDS — 1.72% |
| |||||||
BlackRock Cash Funds: Institutional, |
| |||||||
1.58%d,e,f | 15,540,436 | 15,541,990 | ||||||
BlackRock Cash Funds: Treasury, |
| |||||||
1.32%d,e | 405,078 | 405,078 | ||||||
|
| |||||||
15,947,068 | ||||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||||
(Cost: $15,945,705) |
| 15,947,068 | ||||||
|
|
88 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI MEXICO ETF
February 28, 2018
Value | ||||||||
TOTAL INVESTMENTS | ||||||||
(Cost: $1,312,487,812) |
| $ | 939,030,931 | |||||
Other Assets, Less Liabilities — (1.49)% |
| (13,765,188 | ) | |||||
|
| |||||||
NET ASSETS — 100.00% | $ | 925,265,743 | ||||||
|
|
CPO — Certificates of Participation (Ordinary)
a | Non-income producing security. |
b | All or a portion of this security is on loan. |
c | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
d | Affiliate of the Fund. |
e | Annualized 7-day yield as of period end. |
f | All or a portion of this security was purchased with cash collateral received from loaned securities. |
Affiliates (Note 2)
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows:
Affiliated issuer | Shares held at 08/31/17 | Shares purchased | Shares sold | Shares held at 02/28/18 | Value at 02/28/18 | Income | Net realized gain (loss) a | Change in unrealized appreciation (depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, | 27,657,667 | — | (12,117,231 | )b | 15,540,436 | $ | 15,541,990 | $ | 175,303 | c | $ | 465 | $ | (5,109 | ) | |||||||||||||||||
BlackRock Cash Funds: Treasury, | 431,254 | — | (26,176 | )b | 405,078 | 405,078 | 4,302 | — | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 15,947,068 | $ | 179,605 | $ | 465 | $ | (5,109 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
a | Includes realized capital gain distributions from an affiliated fund, if any. |
b | Net of purchases and sales. |
c | Includes the Fund’s portion of securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. |
Futures Contracts (Note 5)
Futures contracts outstanding as of February 28, 2018 were as follows:
Description | Number of contracts | Expiration date | Notional amount (000) | Value / unrealized appreciation (depreciation) | ||||||||||||
Long Contracts | ||||||||||||||||
MEX BOLSA Index | 81 | Mar 2018 | $ | 2,036 | $ | (40,618 | ) | |||||||||
|
| |||||||||||||||
SCHEDULESOF INVESTMENTS | 89 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI MEXICO ETF
February 28, 2018
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments |
| |||||||||||||||
Assets |
| |||||||||||||||
Common stocks | $ | 923,083,863 | $ | — | $ | — | $ | 923,083,863 | ||||||||
Money market funds | 15,947,068 | — | — | 15,947,068 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 939,030,931 | $ | — | $ | — | $ | 939,030,931 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative financial instrumentsa |
| |||||||||||||||
Liabilities |
| |||||||||||||||
Futures contracts | $ | (40,618 | ) | $ | — | $ | — | $ | (40,618 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | (40,618 | ) | $ | — | $ | — | $ | (40,618 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
a | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
90 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
February 28, 2018
Security | Shares | Value | ||||||
COMMON STOCKS — 96.71% |
| |||||||
AEROSPACE & DEFENSE — 0.63% |
| |||||||
Hanwha Techwin Co. Ltd.a,b | 281,406 | $ | 7,575,016 | |||||
Korea Aerospace Industries Ltd. Class Aa,b | 411,249 | 19,102,248 | ||||||
|
| |||||||
26,677,264 | ||||||||
AIR FREIGHT & LOGISTICS — 0.37% |
| |||||||
Hyundai Glovis Co. Ltd. | 118,918 | 15,648,550 | ||||||
|
| |||||||
15,648,550 | ||||||||
AIRLINES — 0.24% |
| |||||||
Korean Air Lines Co. Ltd. | 333,942 | 10,068,526 | ||||||
|
| |||||||
10,068,526 | ||||||||
AUTO COMPONENTS — 2.88% |
| |||||||
Hankook Tire Co. Ltd. | 437,028 | 23,810,742 | ||||||
Hanon Systems | 1,217,850 | 14,057,738 | ||||||
Hyundai Mobis Co. Ltd. | 362,890 | 76,404,950 | ||||||
Hyundai Wia Corp.b | 135,641 | 7,277,442 | ||||||
|
| |||||||
121,550,872 | ||||||||
AUTOMOBILES — 3.95% |
| |||||||
Hyundai Motor Co. | 809,244 | 120,687,881 | ||||||
Kia Motors Corp. | 1,443,020 | 45,773,143 | ||||||
|
| |||||||
166,461,024 | ||||||||
BANKS — 8.98% |
| |||||||
BNK Financial Group Inc. | 1,629,986 | 16,858,291 | ||||||
DGB Financial Group Inc. | 1,127,376 | 12,909,283 | ||||||
Hana Financial Group Inc. | 1,578,083 | 71,625,062 | ||||||
Industrial Bank of Korea | 1,480,628 | 23,517,224 | ||||||
KB Financial Group Inc. | 2,081,435 | 123,013,981 | ||||||
Shinhan Financial Group Co. Ltd. | 2,250,428 | 98,504,282 | ||||||
Woori Bank | 2,092,626 | 32,078,300 | ||||||
|
| |||||||
378,506,423 | ||||||||
BIOTECHNOLOGY — 4.33% |
| |||||||
Celltrion Inc.a,b | 426,484 | 139,023,781 | ||||||
Medy-Tox Inc.b | 26,827 | 14,963,069 | ||||||
SillaJen Inc.a,b | 300,902 | 28,453,564 | ||||||
|
| |||||||
182,440,414 | ||||||||
BUILDING PRODUCTS — 0.31% |
| |||||||
KCC Corp. | 38,412 | 12,858,390 | ||||||
|
| |||||||
12,858,390 | ||||||||
CAPITAL MARKETS — 1.52% |
| |||||||
Korea Investment Holdings Co. Ltd.a | 239,578 | 17,367,137 | ||||||
Mirae Asset Daewoo Co. Ltd. | 2,213,907 | 18,972,257 |
Security | Shares | Value | ||||||
NH Investment & Securities Co. Ltd.a | 944,168 | $ | 12,468,005 | |||||
Samsung Securities Co. Ltd. | 422,464 | 15,448,864 | ||||||
|
| |||||||
64,256,263 | ||||||||
CHEMICALS — 4.38% |
| |||||||
Hanwha Chemical Corp. | 646,727 | 19,827,626 | ||||||
Hyosung Corp. | 132,422 | 15,285,576 | ||||||
Kumho Petrochemical Co. Ltd. | 129,643 | 10,846,482 | ||||||
LG Chem Ltd. | 243,247 | 86,031,583 | ||||||
Lotte Chemical Corp. | 86,135 | 36,509,341 | ||||||
OCI Co. Ltd.b | 105,579 | 16,038,180 | ||||||
|
| |||||||
184,538,788 | ||||||||
COMMERCIAL SERVICES & SUPPLIES — 0.42% |
| |||||||
KEPCO Plant Service & Engineering Co. Ltd.a | 193,070 | 7,193,992 | ||||||
S-1 Corp. | 120,815 | 10,710,352 | ||||||
|
| |||||||
17,904,344 | ||||||||
CONSTRUCTION & ENGINEERING — 1.40% |
| |||||||
Daelim Industrial Co. Ltd. | 183,164 | 12,550,345 | ||||||
Daewoo Engineering & Construction Co. Ltd.a | 1,232,795 | 5,942,552 | ||||||
GS Engineering & Construction Corp.b | 362,006 | 9,761,359 | ||||||
Hyundai Development Co. Engineering & Construction | 391,672 | 13,671,809 | ||||||
Hyundai Engineering & Construction Co. Ltd.a | 480,862 | 17,095,934 | ||||||
|
| |||||||
59,021,999 | ||||||||
CONSUMER FINANCE — 0.19% |
| |||||||
Samsung Card Co. Ltd. | 236,063 | 7,913,092 | ||||||
|
| |||||||
7,913,092 | ||||||||
DIVERSIFIED TELECOMMUNICATION SERVICES — 0.13% |
| |||||||
KT Corp. | 205,716 | 5,300,098 | ||||||
|
| |||||||
5,300,098 | ||||||||
ELECTRIC UTILITIES — 1.02% |
| |||||||
Korea Electric Power Corp.a | 1,403,729 | 42,906,482 | ||||||
|
| |||||||
42,906,482 | ||||||||
ELECTRICAL EQUIPMENT — 0.16% |
| |||||||
Doosan Heavy Industries & Construction Co. Ltd.a,b | 482,144 | 6,656,250 | ||||||
|
| |||||||
6,656,250 | ||||||||
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 2.90% |
| |||||||
LG Display Co. Ltd.b | 1,295,760 | 35,717,459 | ||||||
LG Innotek Co. Ltd.b | 97,241 | 11,853,183 |
SCHEDULESOF INVESTMENTS | 91 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SOUTH KOREA ETF
February 28, 2018
Security | Shares | Value | ||||||
Samsung Electro-Mechanics Co. Ltd. | 319,941 | $ | 27,358,516 | |||||
Samsung SDI Co. Ltd. | 299,307 | 47,263,364 | ||||||
|
| |||||||
122,192,522 | ||||||||
FOOD & STAPLES RETAILING — 1.34% |
| |||||||
BGF retail Co. Ltd.b | 51,967 | 8,350,040 | ||||||
Dongsuh Cos. Inc. | 292,320 | 7,517,880 | ||||||
E-MART Inc. | 117,707 | 33,043,612 | ||||||
GS Retail Co. Ltd.b | 226,775 | 7,538,923 | ||||||
|
| |||||||
56,450,455 | ||||||||
FOOD PRODUCTS — 0.85% |
| |||||||
CJ CheilJedang Corp.b | 48,972 | 15,285,378 | ||||||
Orion Corp./Republic of Korea | 139,638 | 13,926,405 | ||||||
Ottogi Corp. | 10,393 | 6,785,346 | ||||||
|
| |||||||
35,997,129 | ||||||||
GAS UTILITIES — 0.21% |
| |||||||
Korea Gas Corp.a | 210,202 | 8,909,661 | ||||||
|
| |||||||
8,909,661 | ||||||||
HEALTH CARE PROVIDERS & SERVICES — 0.54% |
| |||||||
Celltrion Healthcare Co. Ltd.a,b | 204,685 | 22,606,266 | ||||||
|
| |||||||
22,606,266 | ||||||||
HOTELS, RESTAURANTS & LEISURE — 0.44% |
| |||||||
Kangwon Land Inc.a | 694,025 | 18,489,816 | ||||||
|
| |||||||
18,489,816 | ||||||||
HOUSEHOLD DURABLES — 2.08% |
| |||||||
Coway Co. Ltd. | 303,983 | 24,309,657 | ||||||
Hanssem Co. Ltd.b | 74,080 | 10,227,131 | ||||||
LG Electronics Inc. | 576,243 | 53,159,734 | ||||||
|
| |||||||
87,696,522 | ||||||||
INDUSTRIAL CONGLOMERATES — 4.14% |
| |||||||
CJ Corp. | 92,029 | 14,149,809 | ||||||
Hanwha Corp. | 305,664 | 12,461,969 | ||||||
LG Corp. | 523,386 | 41,662,086 | ||||||
Lotte Corp.a | 201,125 | 11,645,154 | ||||||
Samsung C&T Corp. | 412,783 | 48,982,007 | ||||||
SK Holdings Co. Ltd. | 173,284 | 45,525,255 | ||||||
|
| |||||||
174,426,280 | ||||||||
INSURANCE — 3.43% |
| |||||||
DB Insurance Co. Ltd. | 300,493 | 19,285,496 | ||||||
Hanwha Life Insurance Co. Ltd. | 1,779,786 | 11,028,132 | ||||||
Hyundai Marine & Fire Insurance Co. Ltd. | 398,319 | 15,191,222 | ||||||
ING Life Insurance Korea Ltd.c | 229,343 | 11,182,298 |
Security | Shares | Value | ||||||
Samsung Fire & Marine Insurance Co. Ltd. | 168,512 | $ | 44,971,805 | |||||
Samsung Life Insurance Co. Ltd. | 384,121 | 43,097,887 | ||||||
|
| |||||||
144,756,840 | ||||||||
INTERNET SOFTWARE & SERVICES — 3.32% |
| |||||||
Kakao Corp. | 259,667 | 30,692,932 | ||||||
NAVER Corp. | 147,212 | 109,161,729 | ||||||
|
| |||||||
139,854,661 | ||||||||
IT SERVICES — 1.00% |
| |||||||
Samsung SDS Co. Ltd.b | 191,464 | 42,080,000 | ||||||
|
| |||||||
42,080,000 | ||||||||
LIFE SCIENCES TOOLS & SERVICES — 0.91% |
| |||||||
Samsung Biologics Co. Ltd.a,c | 91,844 | 38,165,851 | ||||||
|
| |||||||
38,165,851 | ||||||||
MACHINERY — 1.58% |
| |||||||
Doosan Bobcat Inc. | 270,834 | 8,503,422 | ||||||
Hyundai Heavy Industries Co. Ltd.a,b | 180,845 | 21,877,085 | ||||||
Hyundai Robotics Co. Ltd.a | 57,763 | 23,603,405 | ||||||
Samsung Heavy Industries Co. Ltd.a,b | 1,581,288 | 12,485,006 | ||||||
|
| |||||||
66,468,918 | ||||||||
MARINE — 0.21% |
| |||||||
Pan Ocean Co. Ltd.a,b | 1,627,509 | 8,912,299 | ||||||
|
| |||||||
8,912,299 | ||||||||
MEDIA — 0.46% |
| |||||||
Cheil Worldwide Inc. | 516,882 | 8,878,018 | ||||||
CJ E&M Corp. | 133,834 | 10,702,765 | ||||||
|
| |||||||
19,580,783 | ||||||||
METALS & MINING — 4.18% |
| |||||||
Hyundai Steel Co. | 466,752 | 23,102,694 | ||||||
Korea Zinc Co. Ltd.a | 49,591 | 23,446,848 | ||||||
POSCO | 388,047 | 129,540,115 | ||||||
|
| |||||||
176,089,657 | ||||||||
MULTILINE RETAIL — 0.90% |
| |||||||
Hyundai Department Store Co. Ltd. | 106,723 | 9,007,741 | ||||||
Lotte Shopping Co. Ltd. | 72,520 | 13,828,959 | ||||||
Shinsegae Inc. | 47,552 | 15,061,719 | ||||||
|
| |||||||
37,898,419 | ||||||||
OIL, GAS & CONSUMABLE FUELS — 2.72% |
| |||||||
GS Holdings Corp. | 312,431 | 19,070,726 | ||||||
S-Oil Corp. | 257,953 | 29,418,409 |
92 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SOUTH KOREA ETF
February 28, 2018
Security | Shares | Value | ||||||
SK Innovation Co. Ltd. | 347,712 | $ | 65,984,686 | |||||
|
| |||||||
114,473,821 | ||||||||
PERSONAL PRODUCTS — 2.78% |
| |||||||
Amorepacific Corp.b | 175,368 | 45,586,935 | ||||||
AMOREPACIFIC Groupb | 169,287 | 19,697,259 | ||||||
LG Household & Health Care Ltd. | 50,902 | 51,705,790 | ||||||
|
| |||||||
116,989,984 | ||||||||
PHARMACEUTICALS — 0.85% |
| |||||||
Hanmi Pharm Co. Ltd. | 38,631 | 16,516,902 | ||||||
Hanmi Science Co. Ltd.b | 102,168 | 7,925,119 | ||||||
Yuhan Corp. | 58,918 | 11,316,783 | ||||||
|
| |||||||
35,758,804 | ||||||||
ROAD & RAIL — 0.18% |
| |||||||
CJ Logistics Corp.a,b | 63,246 | 7,738,568 | ||||||
|
| |||||||
7,738,568 | ||||||||
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 5.09% |
| |||||||
SK Hynix Inc. | 3,021,796 | 214,307,815 | ||||||
|
| |||||||
214,307,815 | ||||||||
SOFTWARE — 1.14% |
| |||||||
NCSoft Corp. | 97,826 | 33,876,397 | ||||||
Netmarble Games Corp.c | 104,201 | 14,193,044 | ||||||
|
| |||||||
48,069,441 | ||||||||
SPECIALTY RETAIL — 0.36% |
| |||||||
Hotel Shilla Co. Ltd. | 199,198 | 15,047,000 | ||||||
|
| |||||||
15,047,000 | ||||||||
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS — 21.90% |
| |||||||
Samsung Electronics Co. Ltd. | 424,789 | 923,010,912 | ||||||
|
| |||||||
923,010,912 | ||||||||
TOBACCO — 1.37% |
| |||||||
KT&G Corp. | 628,085 | 57,884,276 | ||||||
|
| |||||||
57,884,276 | ||||||||
TRADING COMPANIES & DISTRIBUTORS — 0.31% |
| |||||||
Posco Daewoo Corp.b | 340,846 | 6,358,010 | ||||||
SK Networks Co. Ltd.b | 1,225,320 | 6,766,473 | ||||||
|
| |||||||
13,124,483 | ||||||||
WIRELESS TELECOMMUNICATION SERVICES — 0.61% |
| |||||||
SK Telecom Co. Ltd. | 116,595 | 25,840,613 | ||||||
|
| |||||||
25,840,613 | ||||||||
|
| |||||||
TOTAL COMMON STOCKS | 4,075,530,575 |
Security | Shares | Value | ||||||
PREFERRED STOCKS — 1.71% |
| |||||||
AUTOMOBILES — 0.78% |
| |||||||
Hyundai Motor Co., Preference Shares | 155,450 | $ | 12,890,766 | |||||
Hyundai Motor Co. Series 2, Preference Sharesb | 223,460 | 20,160,718 | ||||||
|
| |||||||
33,051,484 | ||||||||
CHEMICALS — 0.26% |
| |||||||
LG Chem Ltd., | 54,273 | 10,750,354 | ||||||
|
| |||||||
10,750,354 | ||||||||
PERSONAL PRODUCTS — 0.43% |
| |||||||
Amorepacific Corp., Preference Shares | 66,041 | 9,269,768 | ||||||
LG Household & Health Care Ltd. Preference Shares | 15,889 | 9,009,000 | ||||||
|
| |||||||
18,278,768 | ||||||||
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS —0.24% |
| |||||||
Samsung Electronics Co. Ltd. Preference Shares | 5,410 | 9,966,710 | ||||||
|
| |||||||
9,966,710 | ||||||||
|
| |||||||
TOTAL PREFERRED STOCKS |
| |||||||
(Cost: $46,215,303) | 72,047,316 | |||||||
RIGHTS — 0.01% |
| |||||||
MACHINERY — 0.01% |
| |||||||
Hyundai Heavy Industries Co. Ltd. (Expires 03/09/18)a | 32,117 | 741,458 | ||||||
|
| |||||||
741,458 | ||||||||
|
| |||||||
TOTAL RIGHTS |
| |||||||
(Cost: $0) | 741,458 | |||||||
SHORT-TERM INVESTMENTS — 6.28% |
| |||||||
MONEY MARKET FUNDS — 6.28% |
| |||||||
BlackRock Cash Funds: Institutional, |
| |||||||
1.58%d,e,f | 254,204,049 | 254,229,469 | ||||||
BlackRock Cash Funds: Treasury, |
| |||||||
1.32%d,e | 10,335,766 | 10,335,766 | ||||||
|
| |||||||
264,565,235 | ||||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||||
(Cost: $264,565,198) |
| 264,565,235 | ||||||
|
|
SCHEDULESOF INVESTMENTS | 93 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SOUTH KOREA ETF
February 28, 2018
Value | ||||||||
TOTAL INVESTMENTS |
| |||||||
(Cost: $2,050,899,201) |
| $ | 4,412,884,584 | |||||
Other Assets, Less Liabilities — (4.71)% |
| (198,613,516 | ) | |||||
|
| |||||||
NET ASSETS — 100.00% | $ | 4,214,271,068 | ||||||
|
|
a | Non-income producing security. |
b | All or a portion of this security is on loan. |
c | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
d | Affiliate of the Fund. |
e | Annualized 7-day yield as of period end. |
f | All or a portion of this security was purchased with cash collateral received from loaned securities. |
Affiliates (Note 2)
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows:
Affiliated issuer | Shares held at 08/31/17 | Shares purchased | Shares sold | Shares held at 02/28/18 | Value at 02/28/18 | Income | Net realized gain (loss) a | Change in unrealized appreciation (depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, |
| |||||||||||||||||||||||||||||||
SL Agency Shares | 140,876,705 | 113,327,344 | b | — | 254,204,049 | $ | 254,229,469 | $ | 2,265,344 | c | $ | (18,334 | ) | $ | (19,804 | ) | ||||||||||||||||
BlackRock Cash Funds: Treasury, |
| |||||||||||||||||||||||||||||||
SL Agency Shares | 4,974,415 | 5,361,351 | b | — | 10,335,766 | 10,335,766 | 46,903 | — | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 264,565,235 | $ | 2,312,247 | $ | (18,334 | ) | $ | (19,804 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
a | Includes realized capital gain distributions from an affiliated fund, if any. |
b | Net of purchases and sales. |
c | Includes the Fund’s portion of securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. |
Futures Contracts (Note 5)
Futures contracts outstanding as of February 28, 2018 were as follows:
Description | Number of contracts | Expiration date | Notional (000) | Value / unrealized appreciation (depreciation) | ||||||||||||
Long Contracts | ||||||||||||||||
KOSPI 200 Index | 861 | Mar 2018 | $ | 62,206 | $ | (1,872,855 | ) | |||||||||
|
| |||||||||||||||
94 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SOUTH KOREA ETF
February 28, 2018
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments |
| |||||||||||||||
Assets |
| |||||||||||||||
Common stocks | $ | 4,075,530,575 | $ | — | $ | — | $ | 4,075,530,575 | ||||||||
Preferred stocks | 72,047,316 | — | — | 72,047,316 | ||||||||||||
Rights | — | 741,458 | — | 741,458 | ||||||||||||
Money market funds | 264,565,235 | — | — | 264,565,235 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 4,412,143,126 | $ | 741,458 | $ | — | $ | 4,412,884,584 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative financial instrumentsa |
| |||||||||||||||
Liabilities |
| |||||||||||||||
Futures contracts | $ | (1,872,855 | ) | $ | — | $ | — | $ | (1,872,855 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | (1,872,855 | ) | $ | — | $ | — | $ | (1,872,855 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
a | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
SCHEDULESOF INVESTMENTS | 95 |
Table of Contents
Statements of Assets and Liabilities (Unaudited)
iSHARES®, INC.
February 28, 2018
iShares Edge MSCI Min Vol Global ETF | iShares MSCI Australia ETF | iShares MSCI Canada ETF | ||||||||||
ASSETS |
| |||||||||||
Investments in securities, at cost: |
| |||||||||||
Unaffiliated | $ | 3,033,823,334 | $ | 1,809,572,197 | $ | 3,329,516,798 | ||||||
Affiliated (Note 2) | 68,486,190 | 7,671,773 | 1,626,384 | |||||||||
|
|
|
|
|
| |||||||
Total cost of investments in securities | $ | 3,102,309,524 | $ | 1,817,243,970 | $ | 3,331,143,182 | ||||||
|
|
|
|
|
| |||||||
Investments in securities, at fair value (including securities on loana) (Note 1): | ||||||||||||
Unaffiliated | $ | 3,466,987,299 | $ | 1,660,304,970 | $ | 2,866,096,421 | ||||||
Affiliated (Note 2) | 68,490,792 | 7,671,462 | 1,626,484 | |||||||||
Foreign currency, at valueb | 3,174,072 | 6,104,808 | 7,760,482 | |||||||||
Foreign currency pledged to broker for futures contracts, at valueb | — | 346,350 | 623,627 | |||||||||
Cash pledged to broker for futures contracts | 491,000 | — | — | |||||||||
Receivables: | ||||||||||||
Investment securities sold | 6,346,893 | 2,222,195 | 8,696,638 | |||||||||
Dividends and interest | 6,082,558 | 11,970,648 | 4,254,169 | |||||||||
Futures variation margin | — | 273,900 | — | |||||||||
Tax reclaims | 988,833 | — | — | |||||||||
|
|
|
|
|
| |||||||
Total Assets | 3,552,561,447 | 1,688,894,333 | 2,889,057,821 | |||||||||
|
|
|
|
|
| |||||||
LIABILITIES | ||||||||||||
Payables: | ||||||||||||
Investment securities purchased | — | 2,954,925 | 9,469,465 | |||||||||
Collateral for securities on loan (Note 1) | 63,751,367 | 7,501,367 | 1,003,131 | |||||||||
Capital shares redeemed | 7,997,798 | — | 177,869 | |||||||||
Futures variation margin | 131,515 | — | 313,006 | |||||||||
Investment advisory fees (Note 2) | 549,704 | 609,077 | 1,053,822 | |||||||||
|
|
|
|
|
| |||||||
Total Liabilities | 72,430,384 | 11,065,369 | 12,017,293 | |||||||||
|
|
|
|
|
| |||||||
NET ASSETS | $ | 3,480,131,063 | $ | 1,677,828,964 | $ | 2,877,040,528 | ||||||
|
|
|
|
|
| |||||||
Net assets consist of: | ||||||||||||
Paid-in capital | $ | 2,978,890,230 | $ | 2,041,352,461 | $ | 3,786,466,980 | ||||||
Undistributed (distributions in excess of) net investment income | 5,749,102 | (1,317,550 | ) | (2,101,962 | ) | |||||||
Undistributed net realized gain (accumulated net realized loss) | 62,191,530 | (213,079,501 | ) | (443,332,020 | ) | |||||||
Net unrealized appreciation (depreciation) | 433,300,201 | (149,126,446 | ) | (463,992,470 | ) | |||||||
|
|
|
|
|
| |||||||
NET ASSETS | $ | 3,480,131,063 | $ | 1,677,828,964 | $ | 2,877,040,528 | ||||||
|
|
|
|
|
| |||||||
Shares outstandingc | 41,600,000 | 72,600,000 | 103,600,000 | |||||||||
|
|
|
|
|
| |||||||
Net asset value per share | $ | 83.66 | $ | 23.11 | $ | 27.77 | ||||||
|
|
|
|
|
|
a | Securities on loan with values of $61,023,031, $7,130,294 and $951,710, respectively. See Note 1. |
b | Cost of foreign currency including currency pledged to broker for futures contracts: $3,176,647, $6,500,976 and $8,586,321, respectively. |
c | $0.001 par value, number of shares authorized: 500 million, 627.8 million and 340.2 million, respectively. |
See notes to financial statements.
96 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Assets and Liabilities (Unaudited) (Continued)
iSHARES®, INC.
February 28, 2018
iShares MSCI | iShares MSCI Mexico ETF | iShares MSCI South Korea ETF | ||||||||||
ASSETS |
| |||||||||||
Investments in securities, at cost: |
| |||||||||||
Unaffiliated | $ | 20,713,590,423 | $ | 1,296,542,107 | $ | 1,786,334,003 | ||||||
Affiliated (Note 2) | 38,271,158 | 15,945,705 | 264,565,198 | |||||||||
|
|
|
|
|
| |||||||
Total cost of investments in securities | $ | 20,751,861,581 | $ | 1,312,487,812 | $ | 2,050,899,201 | ||||||
|
|
|
|
|
| |||||||
Investments in securities, at fair value (including securities on loana) (Note 1): | ||||||||||||
Unaffiliated | $ | 22,731,797,583 | $ | 923,083,863 | $ | 4,148,319,349 | ||||||
Affiliated (Note 2) | 38,273,285 | 15,947,068 | 264,565,235 | |||||||||
Foreign currency, at valueb | 71,797,419 | 1,250,761 | 194 | |||||||||
Foreign currency pledged to broker for futures contracts, at valueb | 3,501,483 | 92,384 | — | |||||||||
Cash pledged to broker for futures contracts | — | — | 7,307,807 | |||||||||
Receivables: | ||||||||||||
Investment securities sold | — | 12,933,537 | 112,524,142 | |||||||||
Due from custodian (Note 4) | 41,055 | — | — | |||||||||
Dividends and interest | 30,692,652 | 430,698 | 50,323,357 | |||||||||
Capital shares sold | 672,973 | — | — | |||||||||
|
|
|
|
|
| |||||||
Total Assets | 22,876,776,450 | 953,738,311 | 4,583,040,084 | |||||||||
|
|
|
|
|
| |||||||
LIABILITIES | ||||||||||||
Payables: | ||||||||||||
Investment securities purchased | 14,349,319 | 12,429,450 | 109,619,145 | |||||||||
Collateral for securities on loan (Note 1) | 34,708,457 | 15,542,248 | 254,243,057 | |||||||||
Capital shares redeemed | — | 115,803 | — | |||||||||
Futures variation margin | 857,895 | 13,503 | 2,268,255 | |||||||||
Due to custodian | — | — | 742,277 | |||||||||
Foreign taxes (Note 1) | — | — | 2,607 | |||||||||
Investment advisory fees (Note 2) | 7,939,119 | 371,564 | 1,893,675 | |||||||||
|
|
|
|
|
| |||||||
Total Liabilities | 57,854,790 | 28,472,568 | 368,769,016 | |||||||||
|
|
|
|
|
| |||||||
NET ASSETS | $ | 22,818,921,660 | $ | 925,265,743 | $ | 4,214,271,068 | ||||||
|
|
|
|
|
| |||||||
Net assets consist of: | ||||||||||||
Paid-in capital | $ | 21,882,215,113 | $ | 1,612,166,320 | $ | 3,042,643,903 | ||||||
Undistributed (distributions in excess of) net investment income | (44,341,940 | ) | 1,913,321 | (153,686,762 | ) | |||||||
Accumulated net realized loss | (1,038,665,327 | ) | (315,117,964 | ) | (1,034,393,569 | ) | ||||||
Net unrealized appreciation (depreciation) | 2,019,713,814 | (373,695,934 | ) | 2,359,707,496 | ||||||||
|
|
|
|
|
| |||||||
NET ASSETS | $ | 22,818,921,660 | $ | 925,265,743 | $ | 4,214,271,068 | ||||||
|
|
|
|
|
| |||||||
Shares outstandingc | 370,200,000 | 18,500,000 | 57,750,000 | |||||||||
|
|
|
|
|
| |||||||
Net asset value per share | $ | 61.64 | $ | 50.01 | $ | 72.97 | ||||||
|
|
|
|
|
|
a | Securities on loan with values of $33,180,121, $14,212,483 and $239,457,457, respectively. See Note 1. |
b | Cost of foreign currency including currency pledged to broker for futures contracts: $74,312,965, $1,353,579 and $196 , respectively. |
c | $0.001 par value, number of shares authorized: 2.5246 billion, 255 million and 200 million, respectively. |
See notes to financial statements.
FINANCIAL STATEMENTS | 97 |
Table of Contents
Statements of Operations (Unaudited)
iSHARES®, INC.
Six months ended February 28, 2018
iShares Edge MSCI Min Vol Global ETF | iShares MSCI Australia ETF | iShares MSCI Canada ETF | ||||||||||
NET INVESTMENT INCOME |
| |||||||||||
Dividends — unaffiliateda | $ | 33,599,807 | $ | 38,573,981 | $ | 36,508,547 | ||||||
Dividends — affiliated (Note 2) | 33,643 | 9,672 | 12,549 | |||||||||
Interest — unaffiliated | — | 370 | 945 | |||||||||
Securities lending income — affiliated — net (Note 2) | 231,448 | 41,771 | 35,956 | |||||||||
|
|
|
|
|
| |||||||
Total investment income | 33,864,898 | 38,625,794 | 36,557,997 | |||||||||
|
|
|
|
|
| |||||||
EXPENSES |
| |||||||||||
Investment advisory fees (Note 2) | 5,546,026 | 4,148,819 | 7,297,412 | |||||||||
Proxy fees | 342 | 210 | 339 | |||||||||
Commitment fees (Note 8) | 910 | — | — | |||||||||
|
|
|
|
|
| |||||||
Total expenses | 5,547,278 | 4,149,029 | 7,297,751 | |||||||||
Less investment advisory fees waived (Note 2) | (1,936,533 | ) | — | — | ||||||||
|
|
|
|
|
| |||||||
Net expenses | 3,610,745 | 4,149,029 | 7,297,751 | |||||||||
|
|
|
|
|
| |||||||
Net investment income | 30,254,153 | 34,476,765 | 29,260,246 | |||||||||
|
|
|
|
|
| |||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) |
| |||||||||||
Net realized gain (loss) from: |
| |||||||||||
Investments — unaffiliated | (16,282,124 | ) | (2,039,508 | ) | (31,665,750 | ) | ||||||
Investments — affiliated (Note 2) | (5,766 | ) | (1,096 | ) | (3,339 | ) | ||||||
In-kind redemptions — unaffiliated | 184,233,762 | 32,076,154 | 125,800,320 | |||||||||
Futures contracts | 1,076,686 | 378,163 | 758,649 | |||||||||
Foreign currency transactions | 126,696 | (259,205 | ) | (176,426 | ) | |||||||
|
|
|
|
|
| |||||||
Net realized gain | 169,149,254 | 30,154,508 | 94,713,454 | |||||||||
|
|
|
|
|
| |||||||
Net change in unrealized appreciation/depreciation on: |
| |||||||||||
Investments — unaffiliated | (47,643,397 | ) | 18,361,760 | (78,597,785 | ) | |||||||
Investments — affiliated (Note 2) | (9,204 | ) | (629 | ) | (2,587 | ) | ||||||
Futures contracts | 23,621 | 354,553 | (360,278 | ) | ||||||||
Translation of assets and liabilities in foreign currencies | 46,925 | (352,708 | ) | (258,664 | ) | |||||||
|
|
|
|
|
| |||||||
Net change in unrealized appreciation/depreciation | (47,582,055 | ) | 18,362,976 | (79,219,314 | ) | |||||||
|
|
|
|
|
| |||||||
Net realized and unrealized gain | 121,567,199 | 48,517,484 | 15,494,140 | |||||||||
|
|
|
|
|
| |||||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 151,821,352 | $ | 82,994,249 | $ | 44,754,386 | ||||||
|
|
|
|
|
|
a | Net of foreign withholding tax of $1,244,512, $521,670 and $6,440,767, respectively. |
See notes to financial statements.
98 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Operations (Unaudited) (Continued)
iSHARES®, INC.
Six months ended February 28, 2018
iShares MSCI | iShares MSCI Mexico ETF | iShares MSCI South Korea ETF | ||||||||||
NET INVESTMENT INCOME | ||||||||||||
Dividends — unaffiliateda | $ | 150,237,121 | $ | 8,074,388 | $ | 55,467,282 | ||||||
Dividends — affiliated (Note 2) | 70,791 | 4,302 | 46,903 | |||||||||
Interest — unaffiliated | — | 90 | 73 | |||||||||
Securities lending income — affiliated — net (Note 2) | 2,253,488 | 175,303 | 2,265,344 | |||||||||
|
|
|
|
|
| |||||||
152,561,400 | 8,254,083 | 57,779,602 | ||||||||||
Less: Other foreign taxes (Note 1) | — | — | (2,607 | ) | ||||||||
|
|
|
|
|
| |||||||
Total investment income | 152,561,400 | 8,254,083 | 57,776,995 | |||||||||
|
|
|
|
|
| |||||||
EXPENSES |
| |||||||||||
Investment advisory fees (Note 2) | 43,960,060 | 2,660,390 | 11,942,434 | |||||||||
Proxy fees | 1,749 | 144 | 352 | |||||||||
|
|
|
|
|
| |||||||
Total expenses | 43,961,809 | 2,660,534 | 11,942,786 | |||||||||
|
|
|
|
|
| |||||||
Net investment income | 108,599,591 | 5,593,549 | 45,834,209 | |||||||||
|
|
|
|
|
| |||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) |
| |||||||||||
Net realized gain (loss) from: | ||||||||||||
Investments — unaffiliated | (58,768,119 | ) | (12,909,335 | ) | 33,646,648 | |||||||
Investments — affiliated (Note 2) | (5,338 | ) | 465 | (18,334 | ) | |||||||
In-kind redemptions — unaffiliated | 199,483,255 | (16,565,116 | ) | — | ||||||||
Futures contracts | 11,611,324 | 46,219 | (395,400 | ) | ||||||||
Foreign currency transactions | 1,572,548 | (68,101 | ) | 207,471 | ||||||||
|
|
|
|
|
| |||||||
Net realized gain (loss) | 153,893,670 | (29,495,868 | ) | 33,440,385 | ||||||||
|
|
|
|
|
| |||||||
Net change in unrealized appreciation/depreciation on: | ||||||||||||
Investments — unaffiliated | 1,982,200,192 | (124,247,935 | ) | 290,238,432 | ||||||||
Investments — affiliated (Note 2) | (4,685 | ) | (5,109 | ) | (19,804 | ) | ||||||
Futures contracts | (1,500,127 | ) | (40,618 | ) | (1,872,855 | ) | ||||||
Translation of assets and liabilities in foreign currencies | 2,226,317 | (34,812 | ) | (408,421 | ) | |||||||
|
|
|
|
|
| |||||||
Net change in unrealized appreciation/depreciation | 1,982,921,697 | (124,328,474 | ) | 287,937,352 | ||||||||
|
|
|
|
|
| |||||||
Net realized and unrealized gain (loss) | 2,136,815,367 | (153,824,342 | ) | 321,377,737 | ||||||||
|
|
|
|
|
| |||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | 2,245,414,958 | $ | (148,230,793 | ) | $ | 367,211,946 | |||||
|
|
|
|
|
|
a | Net of foreign withholding tax of $16,702,777, $446,324 and $10,186,884, respectively. |
See notes to financial statements.
FINANCIAL STATEMENTS | 99 |
Table of Contents
Statements of Changes in Net Assets
iSHARES®, INC.
iShares Edge MSCI Min Vol Global ETF | iShares MSCI Australia ETF | |||||||||||||||
Six months February 28, 2018 (Unaudited) | Year ended August 31, 2017 | Six months February 28, 2018 (Unaudited) | Year ended August 31, 2017 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS |
| |||||||||||||||
OPERATIONS: |
| |||||||||||||||
Net investment income | $ | 30,254,153 | $ | 77,633,946 | $ | 34,476,765 | $ | 70,264,196 | ||||||||
Net realized gain | 169,149,254 | 74,390,587 | 30,154,508 | 78,995,511 | ||||||||||||
Net change in unrealized appreciation/depreciation | (47,582,055 | ) | 141,521,669 | 18,362,976 | 127,209,450 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase in net assets resulting from operations | 151,821,352 | 293,546,202 | 82,994,249 | 276,469,157 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: |
| |||||||||||||||
From net investment income | (37,306,327 | ) | (82,291,396 | ) | (42,703,016 | ) | (83,656,742 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions to shareholders | (37,306,327 | ) | (82,291,396 | ) | (42,703,016 | ) | (83,656,742 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL SHARE TRANSACTIONS: |
| |||||||||||||||
Proceeds from shares sold | 384,705,829 | 684,634,417 | 123,049,709 | 624,267,864 | ||||||||||||
Cost of shares redeemed | (694,463,723 | ) | (488,203,636 | ) | (251,424,304 | ) | (719,870,284 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets from | (309,757,894 | ) | 196,430,781 | (128,374,595 | ) | (95,602,420 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
INCREASE (DECREASE) IN NET ASSETS | (195,242,869 | ) | 407,685,587 | (88,083,362 | ) | 97,209,995 | ||||||||||
NET ASSETS |
| |||||||||||||||
Beginning of period | 3,675,373,932 | 3,267,688,345 | 1,765,912,326 | 1,668,702,331 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 3,480,131,063 | $ | 3,675,373,932 | $ | 1,677,828,964 | $ | 1,765,912,326 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed (distributions in excess of) net investment income included in net assets at end of period | $ | 5,749,102 | $ | 12,801,276 | $ | (1,317,550 | ) | $ | 6,908,701 | |||||||
|
|
|
|
|
|
|
| |||||||||
SHARES ISSUED AND REDEEMED |
| |||||||||||||||
Shares sold | 4,600,000 | 8,700,000 | 5,400,000 | 29,400,000 | ||||||||||||
Shares redeemed | (8,300,000 | ) | (6,500,000 | ) | (11,000,000 | ) | (33,400,000 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in shares outstanding | (3,700,000 | ) | 2,200,000 | (5,600,000 | ) | (4,000,000 | ) | |||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
100 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Changes in Net Assets (Continued)
iSHARES®, INC.
iShares MSCI Canada ETF | iShares MSCI Japan ETF | |||||||||||||||
Six months February 28, 2018 (Unaudited) | Year ended August 31, 2017 | Six months February 28, 2018 (Unaudited) | Year ended August 31, 2017a | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS |
| |||||||||||||||
OPERATIONS: |
| |||||||||||||||
Net investment income | $ | 29,260,246 | $ | 62,223,555 | $ | 108,599,591 | $ | 227,669,417 | ||||||||
Net realized gain | 94,713,454 | 139,294,992 | 153,893,670 | 455,582,391 | ||||||||||||
Net change in unrealized appreciation/depreciation | (79,219,314 | ) | 156,684,789 | 1,982,921,697 | 1,310,254,903 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase in net assets resulting from operations | 44,754,386 | 358,203,336 | 2,245,414,958 | 1,993,506,711 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: |
| |||||||||||||||
From net investment income | (38,937,254 | ) | (60,198,481 | ) | (126,892,875 | ) | (288,645,468 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions to shareholders | (38,937,254 | ) | (60,198,481 | ) | (126,892,875 | ) | (288,645,468 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL SHARE TRANSACTIONS: |
| |||||||||||||||
Proceeds from shares sold | 518,215,666 | 1,022,753,433 | 5,762,886,952 | 4,661,723,572 | ||||||||||||
Cost of shares redeemed | (774,911,972 | ) | (1,290,632,177 | ) | (1,080,176,274 | ) | (4,364,075,580 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets from | (256,696,306 | ) | (267,878,744 | ) | 4,682,710,678 | 297,647,992 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
INCREASE (DECREASE) IN NET ASSETS | (250,879,174 | ) | 30,126,111 | 6,801,232,761 | 2,002,509,235 | |||||||||||
NET ASSETS |
| |||||||||||||||
Beginning of period | 3,127,919,702 | 3,097,793,591 | 16,017,688,899 | 14,015,179,664 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 2,877,040,528 | $ | 3,127,919,702 | $ | 22,818,921,660 | $ | 16,017,688,899 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed (distributions in excess of) net investment income included in net assets at end of period | $ | (2,101,962 | ) | $ | 7,575,046 | $ | (44,341,940 | ) | $ | (26,048,656 | ) | |||||
|
|
|
|
|
|
|
| |||||||||
SHARES ISSUED AND REDEEMED |
| |||||||||||||||
Shares sold | 18,000,000 | 38,600,000 | 95,400,000 | 113,100,000 | ||||||||||||
Shares redeemed | (26,800,000 | ) | (48,500,000 | ) | (18,750,000 | ) | (105,300,000 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in shares outstanding | (8,800,000 | ) | (9,900,000 | ) | 76,650,000 | 7,800,000 | ||||||||||
|
|
|
|
|
|
|
|
a | Share transactions reflect a one-for-four reverse stock split effective after the close of trading on November 4, 2016. |
See notes to financial statements.
FINANCIAL STATEMENTS | 101 |
Table of Contents
Statements of Changes in Net Assets (Continued)
iSHARES®, INC.
iShares MSCI Mexico ETF | iShares MSCI South Korea ETF | |||||||||||||||
Six months February 28, 2018 (Unaudited) | Year ended August 31, 2017 | Six months February 28, 2018 (Unaudited) | Year ended August 31, 2017 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS |
| |||||||||||||||
OPERATIONS: |
| |||||||||||||||
Net investment income | $ | 5,593,549 | $ | 25,577,881 | $ | 45,834,209 | $ | 35,160,671 | ||||||||
Net realized gain (loss) | (29,495,868 | ) | (7,878,835 | ) | 33,440,385 | 166,328,669 | ||||||||||
Net change in unrealized appreciation/depreciation | (124,328,474 | ) | 189,275,345 | 287,937,352 | 392,652,094 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | (148,230,793 | ) | 206,974,391 | 367,211,946 | 594,141,434 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: |
| |||||||||||||||
From net investment income | (10,834,245 | ) | (21,098,710 | ) | (118,169,941 | ) | (34,948,193 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions to shareholders | (10,834,245 | ) | (21,098,710 | ) | (118,169,941 | ) | (34,948,193 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL SHARE TRANSACTIONS: |
| |||||||||||||||
Proceeds from shares sold | 499,037,658 | 2,161,693,065 | 280,251,197 | 330,287,930 | ||||||||||||
Cost of shares redeemed | (735,348,472 | ) | (2,344,445,161 | ) | (99,659,897 | ) | (557,813,596 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets from | (236,310,814 | ) | (182,752,096 | ) | 180,591,300 | (227,525,666 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
INCREASE (DECREASE) IN NET ASSETS | (395,375,852 | ) | 3,123,585 | 429,633,305 | 331,667,575 | |||||||||||
NET ASSETS |
| |||||||||||||||
Beginning of period | 1,320,641,595 | 1,317,518,010 | 3,784,637,763 | 3,452,970,188 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 925,265,743 | $ | 1,320,641,595 | $ | 4,214,271,068 | $ | 3,784,637,763 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed (distributions in excess of) net investment income included in net assets at end of period | $ | 1,913,321 | $ | 7,154,017 | $ | (153,686,762 | ) | $ | (81,351,030 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
SHARES ISSUED AND REDEEMED |
| |||||||||||||||
Shares sold | 9,600,000 | 45,200,000 | 3,700,000 | 4,750,000 | ||||||||||||
Shares redeemed | (14,400,000 | ) | (48,000,000 | ) | (1,450,000 | ) | (9,950,000 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in shares outstanding | (4,800,000 | ) | (2,800,000 | ) | 2,250,000 | (5,200,000 | ) | |||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
102 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares Edge MSCI Min Vol Global ETF | ||||||||||||||||||||||||
Six months ended Feb. 28, 2018 (Unaudited) | Year ended Aug. 31, 2017 | Year ended Aug. 31, 2016 | Year ended Aug. 31, 2015 | Year ended Aug. 31, 2014 | Year ended Aug. 31, 2013 | |||||||||||||||||||
Net asset value, beginning of period | $ | 81.13 | $ | 75.82 | $ | 67.59 | $ | 68.25 | $ | 59.99 | $ | 55.65 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income from investment operations: |
| |||||||||||||||||||||||
Net investment incomea | 0.69 | 1.84 | 1.79 | 1.70 | 1.72 | 1.68 | ||||||||||||||||||
Net realized and unrealized gain (loss)b | 2.71 | 5.40 | 8.07 | (0.89 | ) | 8.18 | 4.20 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 3.40 | 7.24 | 9.86 | 0.81 | 9.90 | 5.88 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Less distributions from: |
| |||||||||||||||||||||||
Net investment income | (0.87 | ) | (1.93 | ) | (1.63 | ) | (1.47 | ) | (1.64 | ) | (1.54 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | (0.87 | ) | (1.93 | ) | (1.63 | ) | (1.47 | ) | (1.64 | ) | (1.54 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 83.66 | $ | 81.13 | $ | 75.82 | $ | 67.59 | $ | 68.25 | $ | 59.99 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total return | 4.19 | %c | 9.75 | % | 14.76 | % | 1.15 | % | 16.70 | % | 10.69 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios/Supplemental data: |
| |||||||||||||||||||||||
Net assets, end of period (000s) | $ | 3,480,131 | $ | 3,675,374 | $ | 3,267,688 | $ | 2,115,632 | $ | 1,283,012 | $ | 1,007,760 | ||||||||||||
Ratio of expenses to average net assetsd | 0.20 | % | 0.20 | % | 0.20 | % | 0.20 | % | 0.20 | % | 0.20 | % | ||||||||||||
Ratio of expenses to average net assets prior to waived feesd | 0.31 | % | 0.32 | % | 0.32 | % | 0.33 | % | 0.33 | % | 0.34 | % | ||||||||||||
Ratio of net investment income to average net assetsd | 1.68 | % | 2.40 | % | 2.49 | % | 2.41 | % | 2.67 | % | 2.83 | % | ||||||||||||
Portfolio turnover ratee | 11 | %c | 24 | % | 24 | % | 22 | % | 24 | % | 13 | % |
a | Based on average shares outstanding throughout each period. |
b | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | Portfolio turnover rates exclude portfolio securities received or delivered in Creation Units but include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units partially for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the six months ended February 28, 2018, the years ended August 31, 2017, August 31, 2016, August 31, 2015, August 31, 2014 and August 31, 2013 were 11%, 24%, 23%, 22%, 23% and 13%, respectively. See Note 4. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 103 |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Australia ETF | ||||||||||||||||||||||||
Six months ended Feb. 28, 2018 (Unaudited) | Year ended Aug. 31, 2017 | Year ended Aug. 31, 2016 | Year ended Aug. 31, 2015 | Year ended Aug. 31, 2014 | Year ended Aug. 31, 2013 | |||||||||||||||||||
Net asset value, beginning of period | $ | 22.58 | $ | 20.30 | $ | 18.66 | $ | 27.15 | $ | 23.61 | $ | 23.39 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.45 | 0.84 | 0.84 | 1.23 | 1.10 | 1.02 | ||||||||||||||||||
Net realized and unrealized gain (loss)b | 0.64 | 2.45 | 1.59 | (8.49 | ) | 3.43 | 0.64 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 1.09 | 3.29 | 2.43 | (7.26 | ) | 4.53 | 1.66 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.56 | ) | (1.01 | ) | (0.79 | ) | (1.23 | ) | (0.99 | ) | (1.44 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | (0.56 | ) | (1.01 | ) | (0.79 | ) | (1.23 | ) | (0.99 | ) | (1.44 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 23.11 | $ | 22.58 | $ | 20.30 | $ | 18.66 | $ | 27.15 | $ | 23.61 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total return | 4.91 | %c | 16.70 | % | 13.36 | % | (27.31 | )% | 19.76 | % | 7.06 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 1,677,829 | $ | 1,765,912 | $ | 1,668,702 | $ | 1,228,063 | $ | 2,047,113 | $ | 1,916,849 | ||||||||||||
Ratio of expenses to average net assetsd | 0.47 | % | 0.49 | % | 0.48 | % | 0.48 | % | 0.48 | % | 0.51 | % | ||||||||||||
Ratio of net investment income to average net assetsd | 3.93 | % | 3.90 | % | 4.41 | % | 5.37 | % | 4.28 | % | 4.05 | % | ||||||||||||
Portfolio turnover ratee | 1 | %c | 4 | % | 7 | % | 9 | % | 6 | % | 6 | % |
a | Based on average shares outstanding throughout each period. |
b | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
104 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Canada ETF | ||||||||||||||||||||||||
Six months ended Feb. 28, 2018 (Unaudited) | Year ended Aug. 31, 2017 | Year ended Aug. 31, 2016 | Year ended Aug. 31, 2015 | Year ended Aug. 31, 2014 | Year ended Aug. 31, 2013 | |||||||||||||||||||
Net asset value, beginning of period | $ | 27.83 | $ | 25.33 | $ | 24.02 | $ | 32.93 | $ | 27.34 | $ | 27.52 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.27 | 0.51 | 0.51 | 0.54 | 0.59 | 0.60 | ||||||||||||||||||
Net realized and unrealized gain (loss)b | 0.04 | 2.47 | 1.29 | (8.85 | ) | 5.62 | (0.10 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 0.31 | 2.98 | 1.80 | (8.31 | ) | 6.21 | 0.50 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.37 | ) | (0.48 | ) | (0.49 | ) | (0.60 | ) | (0.62 | ) | (0.68 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | (0.37 | ) | (0.48 | ) | (0.49 | ) | (0.60 | ) | (0.62 | ) | (0.68 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 27.77 | $ | 27.83 | $ | 25.33 | $ | 24.02 | $ | 32.93 | $ | 27.34 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total return | 1.07 | %c | 11.88 | % | 7.73 | % | (25.48 | )% | 23.00 | % | 1.84 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 2,877,041 | $ | 3,127,920 | $ | 3,097,794 | $ | 1,931,454 | $ | 3,786,906 | $ | 3,428,223 | ||||||||||||
Ratio of expenses to average net assetsd | 0.47 | % | 0.49 | % | 0.48 | % | 0.48 | % | 0.48 | % | 0.51 | % | ||||||||||||
Ratio of net investment income to average net assetsd | 1.89 | % | 1.93 | % | 2.18 | % | 1.92 | % | 1.97 | % | 2.12 | % | ||||||||||||
Portfolio turnover ratee | 2 | %c | 6 | % | 4 | % | 5 | % | 6 | % | 7 | % |
a | Based on average shares outstanding throughout each period. |
b | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 105 |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Japan ETF | ||||||||||||||||||||||||
Six months ended Feb. 28, 2018 (Unaudited) | Year ended Aug. 31, 2017a | Year ended Aug. 31, 2016a | Year ended Aug. 31, 2015a | Year ended Aug. 31, 2014a | Year ended Aug. 31, 2013a | |||||||||||||||||||
Net asset value, beginning of period | $ | 54.57 | $ | 49.05 | $ | 48.61 | $ | 47.32 | $ | 43.87 | $ | 36.09 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomeb | 0.34 | 0.49 | 0.72 | 0.60 | 0.60 | 0.52 | ||||||||||||||||||
Net realized and unrealized gainc | 7.13 | 5.96 | 0.44 | 1.22 | 3.53 | 7.85 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 7.47 | 6.45 | 1.16 | 1.82 | 4.13 | 8.37 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.40 | ) | (0.93 | ) | (0.72 | ) | (0.53 | ) | (0.68 | ) | (0.59 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | (0.40 | ) | (0.93 | ) | (0.72 | ) | (0.53 | ) | (0.68 | ) | (0.59 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 61.64 | $ | 54.57 | $ | 49.05 | $ | 48.61 | $ | 47.32 | $ | 43.87 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total return | 13.71 | %d | 13.31 | % | 2.44 | % | 3.84 | % | 9.39 | % | 23.46 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 22,818,922 | $ | 16,017,689 | $ | 14,015,180 | $ | 19,147,802 | $ | 14,729,189 | $ | 10,461,942 | ||||||||||||
Ratio of expenses to average net assetse | 0.47 | % | 0.49 | % | 0.48 | % | 0.48 | % | 0.48 | % | 0.50 | % | ||||||||||||
Ratio of net investment income to average net assetse | 1.17 | % | 1.45 | % | 1.53 | % | 1.20 | % | 1.31 | % | 1.18 | % | ||||||||||||
Portfolio turnover ratef | 1 | %d | 4 | % | 4 | % | 2 | % | 2 | % | 4 | % |
a | Per share amounts reflect a one-for-four reverse stock split effective after the close of trading on November 4, 2016. |
b | Based on average shares outstanding throughout each period. |
c | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
d | Not annualized. |
e | Annualized for periods of less than one year. |
f | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
106 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Mexico ETF | ||||||||||||||||||||||||
Six months ended Feb. 28, 2018 (Unaudited) | Year ended Aug. 31, 2017 | Year ended Aug. 31, 2016 | Year ended Aug. 31, 2015 | Year ended Aug. 31, 2014 | Year ended Aug. 31, 2013 | |||||||||||||||||||
Net asset value, beginning of period | $ | 56.68 | $ | 50.48 | $ | 52.70 | $ | 71.51 | $ | 61.93 | $ | 60.96 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.26 | 0.88 | 0.93 | 0.68 | 1.06 | 0.75 | ||||||||||||||||||
Net realized and unrealized gain (loss)b | (6.42 | ) | 6.10 | (1.82 | ) | (18.56 | ) | 9.61 | 0.85 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | (6.16 | ) | 6.98 | (0.89 | ) | (17.88 | ) | 10.67 | 1.60 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.51 | ) | (0.78 | ) | (1.33 | ) | (0.93 | ) | (1.09 | ) | (0.63 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | (0.51 | ) | (0.78 | ) | (1.33 | ) | (0.93 | ) | (1.09 | ) | (0.63 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 50.01 | $ | 56.68 | $ | 50.48 | $ | 52.70 | $ | 71.51 | $ | 61.93 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total return | (10.86 | )%c | 14.03 | % | (1.68 | )% | (25.10 | )% | 17.42 | % | 2.53 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 925,266 | $ | 1,320,642 | $ | 1,317,518 | $ | 1,206,942 | $ | 3,275,152 | $ | 2,217,052 | ||||||||||||
Ratio of expenses to average net assetsd | 0.47 | % | 0.49 | % | 0.48 | % | 0.48 | % | 0.48 | % | 0.50 | % | ||||||||||||
Ratio of net investment income to average net assetsd | 0.99 | % | 1.79 | % | 1.82 | % | 1.10 | % | 1.61 | % | 1.09 | % | ||||||||||||
Portfolio turnover ratee | 3 | %c | 8 | % | 8 | % | 13 | % | 19 | % | 32 | % |
a | Based on average shares outstanding throughout each period. |
b | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 107 |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI South Korea ETF | ||||||||||||||||||||||||
Six months ended Feb. 28, 2018 (Unaudited) | Year ended Aug. 31, 2017 | Year ended Aug. 31, 2016 | Year ended Aug. 31, 2015 | Year ended Aug. 31, 2014 | Year ended Aug. 31, 2013 | |||||||||||||||||||
Net asset value, beginning of period | $ | 68.19 | $ | 56.89 | $ | 48.15 | $ | 66.42 | $ | 57.67 | $ | 55.97 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.83 | 0.64 | 0.56 | 0.46 | 0.25 | 0.23 | ||||||||||||||||||
Net realized and unrealized gain (loss)b | 6.13 | 11.31 | 9.38 | (18.07 | ) | 9.40 | 1.83 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 6.96 | 11.95 | 9.94 | (17.61 | ) | 9.65 | 2.06 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (2.18 | ) | (0.65 | ) | (1.20 | ) | (0.66 | ) | (0.90 | ) | (0.36 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | (2.18 | ) | (0.65 | ) | (1.20 | ) | (0.66 | ) | (0.90 | ) | (0.36 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 72.97 | $ | 68.19 | $ | 56.89 | $ | 48.15 | $ | 66.42 | $ | 57.67 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total return | 10.20 | %c | 21.28 | % | 20.92 | % | (26.58 | )% | 16.83 | % | 3.65 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 4,214,271 | $ | 3,784,638 | $ | 3,452,970 | $ | 3,160,954 | $ | 4,891,619 | $ | 3,376,516 | ||||||||||||
Ratio of expenses to average net assetsd | 0.59 | % | 0.62 | % | 0.64 | % | 0.62 | % | 0.62 | % | 0.61 | % | ||||||||||||
Ratio of net investment income to average net assetsd | 2.27 | % | 1.05 | % | 1.09 | % | 0.81 | % | 0.39 | % | 0.40 | % | ||||||||||||
Portfolio turnover ratee | 8 | %c | 16 | % | 22 | % | 24 | % | 13 | % | 13 | % |
a | Based on average shares outstanding throughout each period. |
b | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | Portfolio turnover rates include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units solely for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the six months ended February 28, 2018, the years ended August 31, 2017, August 31, 2016, August 31, 2015, August 31, 2014, and August 31, 2013 were 6%, 6%, 10%, 10%, 10%, and 11%, respectively. See Note 4. |
See notes to financial statements.
108 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited)
iSHARES®, INC.
iShares, Inc. (the “Company”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Company was incorporated under the laws of the State of Maryland on September 1, 1994 pursuant to Articles of Incorporation as subsequently amended and restated.
These financial statements relate only to the following funds (each, a “Fund,” and collectively, the “Funds”):
iShares ETF | Diversification Classification | |
Edge MSCI Min Vol Global | Diversified | |
MSCI Australia | Non-diversified | |
MSCI Canada | Diversified | |
MSCI Japan | Diversified | |
MSCI Mexicoa | Non-diversified | |
MSCI South Koreab | Non-diversified |
a | Formerly the iShares MSCI Mexico Capped ETF. |
b | Formerly the iShares MSCI South Korea Capped ETF. |
The investment objective of each Fund is to seek investment results that correspond generally to the price and yield performance, before fees and expenses, of its underlying index. The investment adviser uses a “passive” or index approach to try to achieve each Fund’s investment objective.
Pursuant to the Company’s organizational documents, the Funds’ officers and directors are indemnified against certain liabilities that may arise out of the performance of their duties to the Funds. Additionally, in the normal course of business, the Funds enter into contracts with service providers that contain general indemnification clauses. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred.
1. | SIGNIFICANT ACCOUNTING POLICIES |
The following significant accounting policies are consistently followed by each Fund in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies.
SECURITY VALUATION
Each Fund’s investments are valued at fair value each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date should the reporting period end on a day that the Fund’s listing exchange is not open. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation
NOTESTO FINANCIAL STATEMENTS | 109 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
Committee”) provides oversight of the valuation of investments for the Funds. The investments of each Fund are valued pursuant to policies and procedures developed by the Global Valuation Committee and approved by the Board of Directors of the Company (the “Board”).
• | Equity investments traded on a recognized securities exchange are valued at that day’s last reported trade price or the official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price. |
• | Open-end U.S. mutual funds (including money market funds) are valued at that day’s published net asset value (“NAV”). |
• | Futures contract notional values are determined based on that day’s last reported settlement price on the exchange where the contract is traded. |
In the event that application of these methods of valuation results in a price for an investment which is deemed not to be representative of the fair value of such investment or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board. The fair valuation approaches that may be utilized by the Global Valuation Committee to determine fair value include market approach, income approach and the cost approach. The valuation techniques used under these approaches take into consideration inputs that include but are not limited to (i) attributes specific to the investment; (ii) the principal market for the investment; (iii) the customary participants in the principal market for the investment; (iv) data assumptions by market participants for the investment, if reasonably available; (v) quoted prices for similar investments in active markets; and (vi) other inputs, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates. Valuations based on such inputs are reported to the Board on a quarterly basis.
The Global Valuation Committee employs various methods for calibrating valuation approaches for investments where an active market does not exist, including regular due diligence of the Company’s pricing vendors, a regular review of key inputs and assumptions, transactional back-testing or disposition analysis to compare unrealized gains and losses to realized gains and losses, reviews of missing or stale prices, reviews of large movements in market values, and reviews of market related activity.
Fair value pricing could result in a difference between the prices used to calculate a Fund’s NAV and the prices used by the Fund’s underlying index, which in turn could result in a difference between the Fund’s performance and the performance of the Fund’s underlying index.
Various inputs are used in determining the fair value of financial instruments. Inputs may be based on independent market data (“observable inputs”) or they may be internally developed (“unobservable inputs”). These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:
• | Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities; |
• | Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability (such as exchange rates, financing terms, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and |
• | Level 3 — Unobservable inputs for the asset or liability based on the best information available in the circumstances, to the extent observable inputs are not available, including the Global Valuation Committee’s assumptions used in determining the fair value of investments. |
110 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgement exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value hierarchy for each Fund’s investments is included in its schedule of investments.
Changes in valuation techniques may result in transfers in or out of an assigned level within the fair value hierarchy. In accordance with the Company’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of values determined for financial instruments are based on the pricing transparency of the financial instruments and are not necessarily an indication of the risks associated with investing in those securities.
SECURITY TRANSACTIONS AND INCOME RECOGNITION
Security transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recognized on the ex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities as of February 28, 2018 are reflected in tax reclaims receivable. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be re-designated as a return of capital or capital gain. Non-cash dividends, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Distributions received by the Funds may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. Interest income is accrued daily.
FOREIGN CURRENCY TRANSLATION
The accounting records of the Funds are maintained in U.S. dollars. Foreign currencies, as well as investment securities and other assets and liabilities denominated in foreign currencies, are translated into U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of securities, income receipts and expense payments are translated into U.S. dollars on the respective dates of such transactions.
Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of securities. Such fluctuations are reflected by the Funds as a component of realized and unrealized gains and losses from investments for financial reporting purposes. Each Fund reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes.
FOREIGN TAXES
The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Funds invest. These foreign taxes, if any, are paid by the Funds and are reflected in their statements of operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of February 28, 2018, if any, are disclosed in the Funds’ statements of assets and liabilities.
NOTESTO FINANCIAL STATEMENTS | 111 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
DISTRIBUTIONS TO SHAREHOLDERS
Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds.
LOANS OF PORTFOLIO SECURITIES
Each Fund may lend its investment securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by an approved bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Funds. Any additional required collateral is delivered to the Funds and any excess collateral is returned by the Funds on the next business day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.
Cash received as collateral for securities on loan may be reinvested in certain short-term instruments either directly on behalf of a fund or through one or more joint accounts or money market funds, including those managed by BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, or its affiliates. As of February 28, 2018, any securities on loan were collateralized by cash and/or U.S. government obligations. Cash collateral received was invested in money market funds managed by BFA and is disclosed in the schedules of investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan for each Fund are also disclosed in its schedule of investments. The total value of any securities on loan as of February 28, 2018 and the total value of the related cash collateral are disclosed in the statements of assets and liabilities. Income earned by the Funds from securities lending is disclosed in the statements of operations.
The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Funds benefit from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of securities loaned if the collateral received does not cover the value of the securities loaned in the event of borrower default. Each Fund could incur a loss if the value of an investment purchased with cash collateral falls below the value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received.
Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (“MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, a Fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. The value of the collateral is typically greater than that of the market value of the securities loaned, leaving the lender with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, the borrower can resell or re-pledge the loaned securities, and a Fund can reinvest cash collateral, or, upon an event of default, resell or re-pledge the collateral.
112 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
The following table is a summary of securities lending agreements which are subject to offset under an MSLA as of February 28, 2018:
iShares ETF and Counterparty | Market Value of Securities on Loan | Cash Collateral Received a | Net Amount b | |||||||||
Edge MSCI Min Vol Global | ||||||||||||
Citigroup Global Markets Inc. | $ | 3,664,403 | $ | 3,664,403 | $ | — | ||||||
Deutsche Bank AG | 1,336,420 | 1,336,420 | — | |||||||||
Goldman Sachs & Co. | 2,546,514 | 2,546,514 | — | |||||||||
Jefferies LLC | 1,165,988 | 1,164,047 | (1,941 | ) | ||||||||
JPMorgan Securities LLC | 6,909,958 | 6,909,958 | — | |||||||||
JPMorgan Securities PLC | 529,819 | 529,819 | — | |||||||||
Macquarie Bank Limited | 70,116 | 70,116 | — | |||||||||
Merrill Lynch, Pierce, Fenner & Smith | 7,129,331 | 7,129,331 | — | |||||||||
Morgan Stanley & Co. International PLC | 3,863,829 | 3,863,829 | — | |||||||||
Morgan Stanley & Co. LLC | 12,887,013 | 12,887,013 | — | |||||||||
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending) | 10,591,322 | 10,591,322 | — | |||||||||
Nomura Securities International Inc. | 6,070,508 | 6,070,508 | — | |||||||||
State Street Bank & Trust Company | 3,831,861 | 3,831,861 | — | |||||||||
UBS Securities LLC | 425,949 | 425,949 | — | |||||||||
|
|
|
|
|
| |||||||
$ | 61,023,031 | $ | 61,021,185 | $ | (1,941 | ) | ||||||
|
|
|
|
|
| |||||||
MSCI Australia | ||||||||||||
Deutsche Bank Securities Inc. | $ | 1,331,598 | $ | 1,331,598 | $ | — | ||||||
JPMorgan Securities LLC | 1,669,526 | 1,669,526 | — | |||||||||
Macquarie Bank Limited | 72,723 | 72,723 | — | |||||||||
Morgan Stanley & Co. LLC | 468,117 | 468,117 | — | |||||||||
State Street Bank & Trust Company | 56,087 | 56,087 | — | |||||||||
UBS Securities LLC | 3,532,243 | 3,532,243 | — | |||||||||
|
|
|
|
|
| |||||||
$ | 7,130,294 | $ | 7,130,294 | $ | — | |||||||
|
|
|
|
|
| |||||||
MSCI Canada | ||||||||||||
Citigroup Global Markets Inc. | $ | 77,421 | $ | 77,421 | $ | — | ||||||
Credit Suisse Securities (USA) LLC | 100,272 | 100,272 | — | |||||||||
Merrill Lynch, Pierce, Fenner & Smith | 554,267 | 554,267 | — | |||||||||
State Street Bank & Trust Company | 208,044 | 208,044 | — | |||||||||
UBS AG | 11,706 | 11,706 | — | |||||||||
|
|
|
|
|
| |||||||
$ | 951,710 | $ | 951,710 | $ | — | |||||||
|
|
|
|
|
| |||||||
MSCI Japan | ||||||||||||
Barclays Capital Inc. | $ | 4,001,242 | $ | 4,001,242 | $ | — | ||||||
Citigroup Global Markets Inc. | 4,806,066 | 4,806,066 | — | |||||||||
Credit Suisse Securities (USA) LLC | 4,893,573 | 4,893,573 | — | |||||||||
Deutsche Bank Securities Inc. | 6,196,921 | 6,196,921 | — | |||||||||
Goldman Sachs & Co. | 1,557,616 | 1,557,616 | — | |||||||||
JPMorgan Securities LLC | 787,493 | 787,493 | — | |||||||||
Merrill Lynch, Pierce, Fenner & Smith | 9,274,120 | 9,274,120 | — | |||||||||
Morgan Stanley & Co. LLC | 1,663,090 | 1,663,090 | — | |||||||||
|
|
|
|
|
| |||||||
$ | 33,180,121 | $ | 33,180,121 | $ | — | |||||||
|
|
|
|
|
| |||||||
NOTESTO FINANCIAL STATEMENTS | 113 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
iShares ETF and Counterparty | Market Value of Securities on Loan | Cash Collateral Received a | Net Amount | |||||||||
MSCI Mexico | ||||||||||||
Credit Suisse Securities (USA) LLC | $ | 106,968 | $ | 106,968 | $ | — | ||||||
Deutsche Bank Securities Inc. | 32,397 | 32,397 | — | |||||||||
Goldman Sachs & Co. | 6,153,594 | 6,153,594 | — | |||||||||
JPMorgan Securities LLC | 1,754,215 | 1,754,215 | — | |||||||||
Morgan Stanley & Co. LLC | 5,983,820 | 5,983,820 | — | |||||||||
UBS Securities LLC | 181,489 | 181,489 | — | |||||||||
|
|
|
|
|
| |||||||
$ | 14,212,483 | $ | 14,212,483 | $ | — | |||||||
|
|
|
|
|
| |||||||
MSCI South Korea | ||||||||||||
Citigroup Global Markets Inc. | $ | 46,871,272 | $ | 46,871,272 | $ | — | ||||||
Credit Suisse Securities (USA) LLC | 5,775,873 | 5,775,873 | — | |||||||||
Deutsche Bank Securities Inc. | 1,509,993 | 1,509,993 | — | |||||||||
Goldman Sachs & Co. | 121,882,968 | 121,882,968 | — | |||||||||
HSBC Bank PLC | 13,233,321 | 13,233,321 | — | |||||||||
Jefferies LLC | 756,487 | 756,487 | — | |||||||||
JPMorgan Securities LLC | 10,387,848 | 10,387,848 | — | |||||||||
Macquarie Bank Limited | 413,015 | 413,015 | — | |||||||||
Morgan Stanley & Co. LLC | 35,970,405 | 35,970,405 | — | |||||||||
UBS Securities LLC | 2,656,275 | 2,656,275 | — | |||||||||
|
|
|
|
|
| |||||||
$ | 239,457,457 | $ | 239,457,457 | $ | — | |||||||
|
|
|
|
|
| |||||||
a | Collateral received in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in each Fund’s statement of assets and liabilities. |
b | Additional collateral is delivered to the Funds on the next business day in accordance with the MSLA. The net amount would be subject to the borrower default indemnity in the event of default by a counterparty. |
2. | INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES |
Pursuant to an Investment Advisory Agreement with the Company, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent directors).
For its investment advisory services to the iShares Edge MSCI Min Vol Global ETF, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Fund, based on the Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:
Investment Advisory Fee | Aggregate Average Daily Net Assets | ||||
0.350 | % | First $30 billion | |||
0.320 | Over $30 billion, up to and including $60 billion | ||||
0.280 | Over $60 billion, up to and including $90 billion | ||||
0.252 | Over $90 billion, up to and including $120 billion | ||||
0.227 | Over $120 billion |
114 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
In addition, the iShares Edge MSCI Min Vol Global ETF may incur its pro rata share of fees and expenses attributable to its investments in other investment companies (“acquired fund fees and expenses”). The total of the investment advisory fee and acquired fund fees and expenses are a fund’s total annual operating expenses. BFA has contractually agreed to waive through December 31, 2023 a portion of its investment advisory fee for the Fund necessary to limit total annual operating expenses after fee waiver to 0.20% of average daily net assets.
For its investment advisory services to each of the iShares MSCI Australia, iShares MSCI Canada, iShares MSCI Japan and iShares MSCI Mexico ETFs, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, based on each Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:
Investment Advisory Fee | Aggregate Average Daily Net Assets | ||||
0.59 | % | First $7 billion | |||
0.54 | Over $7 billion, up to and including $11 billion | ||||
0.49 | Over $11 billion, up to and including $24 billion | ||||
0.44 | Over $24 billion, up to and including $48 billion | ||||
0.40 | Over $48 billion, up to and including $72 billion | ||||
0.36 | Over $72 billion, up to and including $96 billion | ||||
0.32 | Over $96 billion |
For its investment advisory services to the iShares MSCI South Korea ETF, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Fund, based on the Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:
Investment Advisory Fee | Aggregate Average Daily Net Assets | ||||
0.74 | % | First $2 billion | |||
0.69 | Over $2 billion, up to and including $4 billion | ||||
0.64 | Over $4 billion, up to and including $8 billion | ||||
0.57 | Over $8 billion, up to and including $16 billion | ||||
0.51 | Over $16 billion, up to and including $24 billion | ||||
0.48 | Over $24 billion, up to and including $32 billion | ||||
0.45 | Over $32 billion |
The U.S. Securities and Exchange Commission has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan in a money market fund managed by BFA, however, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04% (the “collateral investment fees”). Securities lending income is equal to the total of income earned from the reinvestment of cash collateral (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. The Funds retain a portion of securities lending income and remit the remaining portion to BTC as compensation for its services as securities lending agent.
Pursuant to a securities lending agreement, each Fund retains 80% of securities lending income and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees. In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in a given calendar year exceeds the aggregate
NOTESTO FINANCIAL STATEMENTS | 115 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
securities lending income generated across the iShares ETF Complex in the calendar year 2013, each Fund, pursuant to a securities lending agreement, will retain for the remainder of that calendar year 85% of securities lending income and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
For the six months ended February 28, 2018, the total of securities lending agent services and collateral investment fees paid were as follows:
iShares ETF | Fees Paid to BTC | |||
Edge MSCI Min Vol Global | $ | 61,223 | ||
MSCI Australia | 10,028 | |||
MSCI Canada | 12,399 | |||
MSCI Japan | 449,859 | |||
MSCI Mexico | 39,769 | |||
MSCI South Korea | 520,307 |
BlackRock Investments, LLC, an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.
Cross trading is the buying or selling of portfolio securities between funds to which BFA (or an affiliate) serves as investment adviser. At its regularly scheduled quarterly meetings, the Board reviews such transactions as of the most recent calendar quarter for compliance with the requirements and restrictions set forth by Rule 17a-7.
For the six months ended February 28, 2018, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:
iShares ETF | Purchases | Sales | ||||||
Edge MSCI Min Vol Global | $ | 59,776,134 | $ | 46,630,156 | ||||
MSCI Australia | 1,436,358 | — | ||||||
MSCI Japan | 5,055,713 | 10,435,130 | ||||||
MSCI South Korea | 19,574,912 | 4,872,193 |
Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is included in “Dividends – affiliated” in the statements of operations.
The PNC Financial Services Group, Inc. is the largest stockholder of BlackRock and is considered to be an affiliate of the Funds for 1940 Act purposes.
Certain directors and officers of the Company are also officers of BTC and/or BFA.
116 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
3. | INVESTMENT PORTFOLIO TRANSACTIONS |
Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the six months ended February 28, 2018 were as follows:
iShares ETF | Purchases | Sales | ||||||
Edge MSCI Min Vol Global | $ | 652,235,450 | $ | 407,846,533 | ||||
MSCI Australia | 49,461,544 | 14,735,199 | ||||||
MSCI Canada | 93,619,388 | 59,800,058 | ||||||
MSCI Japan | 378,115,171 | 235,315,311 | ||||||
MSCI Mexico | 41,148,903 | 37,483,207 | ||||||
MSCI South Korea | 385,681,644 | 327,776,256 |
In-kind transactions (see Note 4) for the six months ended February 28, 2018 were as follows:
iShares ETF | In-kind Purchases | In-kind Sales | ||||||
Edge MSCI Min Vol Global | $ | 109,121,742 | $ | 655,524,094 | ||||
MSCI Australia | 81,401,338 | 249,444,155 | ||||||
MSCI Canada | 477,363,023 | 768,957,012 | ||||||
MSCI Japan | 5,528,370,786 | 1,032,801,297 | ||||||
MSCI Mexico | 487,964,633 | 732,982,071 |
4. | CAPITAL SHARE TRANSACTIONS |
Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable. Transactions in capital shares for each Fund are disclosed in detail in the statements of changes in net assets.
The consideration for the purchase of Creation Units of a fund in the Company generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Company may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to State Street Bank and Trust Company, the Company’s administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in “Proceeds from shares sold” in the statements of changes in net assets.
From time to time, settlement of securities related to in-kind contributions or in-kind redemptions may be delayed. In such cases, securities related to in-kind contributions are reflected as “Due from custodian” and securities related to in-kind redemptions are reflected as “Securities related to in-kind transactions” in the statements of assets and liabilities.
5. | FUTURES CONTRACTS |
Each Fund’s use of futures contracts is generally limited to cash equitization. This involves the use of available cash to invest in index futures contracts in order to gain exposure to the equity markets represented in or by the Fund’s underlying index and is
NOTESTO FINANCIAL STATEMENTS | 117 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
intended to allow the Fund to better track its underlying index. Futures contracts are standardized, exchange-traded agreements to buy or sell a financial instrument at a set price on a future date. Upon entering into a futures contract, a fund is required to pledge to the executing broker which holds segregated from its own assets, an amount of cash, U.S. government securities or other high-quality debt and equity securities equal to the minimum initial margin requirements of the exchange on which the contract is traded.
Pursuant to the contract, the fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract. Such receipts or payments are known as margin variation and are recorded by the fund as unrealized appreciation or depreciation. When the contract is closed, the fund records a realized gain or loss equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. Losses may arise if the notional value of a futures contract decreases due to an unfavorable change in the market rates or values of the underlying instrument during the term of the contract or if the counterparty does not perform under the contract. The use of futures contracts also involves the risk of an imperfect correlation in the movements in the price of futures contracts and the assets underlying such contracts.
The following table shows the value of futures contracts held as of February 28, 2018 and the related locations in the statements of assets and liabilities, presented by risk exposure category:
Assets | ||||||||
iShares Edge MSCI Min Vol Global ETF | iShares MSCI Australia ETF | |||||||
Futures contracts: | ||||||||
Variation margin / Net assets consist of – | $ | 69,159 | $ | 273,900 | ||||
|
|
|
| |||||
a | Represents cumulative appreciation of futures contracts as reported in the schedules of investments. Only current day’s variation margin is reported separately within the statements of assets and liabilities. |
Liabilities | ||||||||||||
iShares Edge MSCI Min Vol Global ETF | iShares MSCI Canada ETF | iShares MSCI Japan ETF | ||||||||||
Futures contracts: | ||||||||||||
Variation margin / Net assets consist of – net unrealized appreciation (depreciation)b | $ | 45,538 | $ | 313,006 | $ | 857,895 | ||||||
|
|
|
|
|
| |||||||
Liabilities | ||||||||||||
iShares MSCI Mexico ETF | iShares MSCI South Korea ETF | |||||||||||
Futures contracts: | ||||||||||||
Variation margin / Net assets consist of – | $ | 40,618 | $ | 1,872,855 | ||||||||
|
|
|
| |||||||||
b | Represents cumulative depreciation of futures contracts as reported in the schedules of investments. Only current day’s variation margin is reported separately within the statements of assets and liabilities. |
118 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
The following table shows the realized and unrealized gains (losses) on futures contracts held during the six months ended February 28, 2018 and the related locations in the statements of operations, presented by risk exposure category:
Net Realized Gain (Loss) | ||||||||||||
iShares Edge MSCI Min Vol Global ETF | iShares MSCI Australia ETF | iShares MSCI Canada ETF | ||||||||||
Futures contracts | $ | 1,076,686 | $ | 378,163 | $ | 758,649 | ||||||
|
|
|
|
|
| |||||||
Net Realized Gain (Loss) | ||||||||||||
iShares MSCI Japan ETF | iShares MSCI Mexico ETF | iShares MSCI South Korea ETF | ||||||||||
Futures contracts | $ | 11,611,324 | $ | 46,219 | $ | (395,400 | ) | |||||
|
|
|
|
|
| |||||||
Net Change in Unrealized Appreciation/Depreciation | ||||||||||||
iShares Edge MSCI Min Vol Global ETF | iShares MSCI Australia ETF | iShares MSCI Canada ETF | ||||||||||
Futures contracts | $ | 23,621 | $ | 354,553 | $ | (360,278 | ) | |||||
|
|
|
|
|
| |||||||
Net Change in Unrealized Appreciation/Depreciation | ||||||||||||
iShares MSCI Japan ETF | iShares MSCI Mexico ETF | iShares MSCI South Korea ETF | ||||||||||
Futures contracts | $ | (1,500,127 | ) | $ | (40,618 | ) | $ | (1,872,855 | ) | |||
|
|
|
|
|
| |||||||
The following table shows the average quarter-end balances of open futures contracts for the six months ended February 28, 2018 :
iShares Edge MSCI Min Vol Global ETF | iShares MSCI Australia ETF | iShares MSCI Canada ETF | ||||||||||
Average notional value of contracts purchased | $ | 7,376,950 | $ | 18,176,482 | $ | 12,189,361 | ||||||
iShares MSCI Japan ETF | iShares MSCI Mexico ETF | iShares MSCI South Korea ETF | ||||||||||
Average notional value of contracts purchased | $ | 89,046,355 | $ | 1,405,131 | $ | 22,630,121 |
NOTESTO FINANCIAL STATEMENTS | 119 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
6. | PRINCIPAL RISKS |
In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Each Fund’s prospectus provides details of the risks to which the Fund is subject.
BFA uses a “passive” or index approach to try to achieve each Fund’s investment objective following the securities included in its underlying index during upturns as well as downturns. BFA does not take steps to reduce market exposure or to lessen the effects of a declining market. Divergence from the underlying index and the composition of the portfolio is monitored by BFA.
MARKET RISK
Market risk arises mainly from uncertainty about future values of financial instruments influenced by price, currency and interest rate movements. It represents the potential loss a fund may suffer through holding market positions in the face of market movements. A fund is exposed to market risk by its investment in equity, fixed income and/or financial derivative instruments or by its investment in underlying funds. The fair value of securities held by a fund may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. The extent of a fund’s exposure to market risk is the market value of the investments held as shown in the fund’s schedule of investments.
A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its schedule of investments.
Investing in the securities of non-U.S. issuers involves certain considerations and risks not typically associated with securities of U.S. issuers. Such risks include, but are not limited to: differences in accounting, auditing and financial reporting standards; more substantial governmental involvement in the economy; higher inflation rates, greater social, economic and political uncertainties; possible nationalization or expropriation of assets; less availability of public information about issuers; imposition of withholding or other taxes; higher transaction and custody costs and delays in settlement procedures; and lower level of regulation of the securities markets and issuers. Non-U.S. securities may be less liquid, more difficult to value, and have greater price volatility due to exchange rate fluctuations. These and other risks are heightened for investments in issuers from countries with less developed capital markets.
The economies and markets of European countries are often closely connected and interdependent, and events in one country in Europe can have an adverse impact on other European countries. The European financial markets have experienced volatility and adverse trends in recent years due to concerns about economic downturns or rising government debt levels in several European countries. These events have adversely affected the exchange rate of the euro and may continue to significantly affect European countries. The occurrence of terrorist incidents throughout Europe also could impact financial markets. In addition, the United Kingdom has voted to withdraw from the European Union. The referendum may introduce significant new uncertainties and instability in the financial markets as the United Kingdom negotiates its exit from the European Union.
When a fund concentrates its investments in issuers located in a single country, it assumes the risk that economic, political and social conditions in that country may have a significant impact on its investment performance.
120 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
CREDIT RISK
Credit risk is the risk that an issuer or guarantor of debt instruments or the counterparty to a financial transaction, including derivatives contracts, repurchase agreements or loans of portfolio securities, is unable or unwilling to make timely interest and/or principal payments or to otherwise honor its obligations. BFA and its affiliates manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose a fund to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of a fund’s exposure to credit and counterparty risks with respect to those financial assets is approximated by their value recorded in its statement of assets and liabilities.
7. | INCOME TAX INFORMATION |
Each Fund is treated as an entity separate from the Company’s other funds for federal income tax purposes. It is the policy of each Fund to qualify as a regulated investment company by complying with the provisions applicable to regulated investment companies, as defined under Subchapter M of the Internal Revenue Code of 1986, as amended, and to annually distribute substantially all of its ordinary income and any net capital gains (taking into account any capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income and excise taxes. Accordingly, no provision for federal income taxes is required.
For purposes of U.S. GAAP, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or NAV per share.
The tax character of current year distributions will be determined at the end of the current fiscal year.
As of August 31, 2017, the Funds’ fiscal year-end, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:
iShares ETF | Non- Expiringa | Expiring 2018 | Expiring 2019 | Total | ||||||||||||
Edge MSCI Min Vol Global | $ | 86,612,072 | $ | — | $ | — | $ | 86,612,072 | ||||||||
MSCI Australia | 160,958,058 | 23,348,244 | 12,127,364 | 196,433,666 | ||||||||||||
MSCI Canada | 380,840,433 | 68,928,677 | 14,903,919 | 464,673,029 | ||||||||||||
MSCI Japan | 686,418,449 | 173,577,101 | 139,228,194 | 999,223,744 | ||||||||||||
MSCI Mexico | 218,505,597 | 2,789,471 | 22,863,665 | 244,158,733 | ||||||||||||
MSCI South Korea | 326,749,122 | 226,591,665 | 78,503,704 | 631,844,491 |
a | Must be utilized prior to losses subject to expiration. |
The Funds may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” The Funds may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.
NOTESTO FINANCIAL STATEMENTS | 121 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
As of February 28, 2018, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives) for U.S. federal income tax purposes were as follows:
iShares ETF | Tax Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||
Edge MSCI Min Vol Global | $ | 3,123,431,022 | $ | 499,606,280 | $ | (87,535,590 | ) | $ | 412,070,690 | |||||||
MSCI Australia | 1,875,573,006 | 115,393,011 | (322,715,685 | ) | (207,322,674 | ) | ||||||||||
MSCI Canada | 3,405,939,793 | 198,536,635 | (737,066,529 | ) | (538,529,894 | ) | ||||||||||
MSCI Japan | 20,973,173,335 | 2,915,270,912 | (1,119,231,274 | ) | 1,796,039,638 | |||||||||||
MSCI Mexico | 1,354,311,339 | 6,623,984 | (421,945,010 | ) | (415,321,026 | ) | ||||||||||
MSCI South Korea | 2,610,570,146 | 2,393,983,366 | (593,541,783 | ) | 1,800,441,583 |
Management has analyzed tax laws and regulations and their application to the Funds as of February 28, 2018, inclusive of the open tax return years, and does not believe there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.
8. | LINE OF CREDIT |
The iShares Edge MSCI Min Vol Global ETF, along with certain other iShares funds, is a party to a $275 million credit agreement with State Street Bank and Trust Company, which expires on October 24, 2018. The Fund became a party to the credit agreement effective October 25, 2017. The line of credit may be used for temporary or emergency purposes, including redemptions, settlement of trades and rebalancing of portfolio holdings. The credit agreement has the following terms: a commitment fee of 0.20% per annum on the unused portion of the credit agreement and interest at a rate equal to the higher of (a) the one-month LIBOR (not less than zero) plus 1.00% per annum or (b) the U.S. Federal Funds rate (not less than zero) plus 1.00% per annum on amounts borrowed. The commitment fee is allocated to each fund participating in the credit agreement based on each fund’s pro-rata share of the aggregate average daily value of assets invested in local securities of certain foreign markets.
The Fund did not borrow under the credit agreement during the six months ended February 28, 2018.
9. | LEGAL PROCEEDINGS |
On June 16, 2016, investors (the “Plaintiffs”) in certain iShares funds (iShares Core S&P Small-Cap ETF, iShares Russell 1000 Growth ETF, iShares Core S&P 500 ETF, iShares Russell Mid-Cap Growth ETF, iShares Russell Mid-Cap ETF, iShares Russell Mid-Cap Value ETF, iShares Select Dividend ETF, iShares Morningstar Mid-Cap ETF, iShares Morningstar Large-Cap ETF, iShares U.S. Aerospace & Defense ETF and iShares U.S. Preferred Stock ETF) filed a putative class action lawsuit against iShares Trust, BlackRock, Inc. and certain of its advisory affiliates, and certain directors/trustees and officers of the Funds (collectively, “Defendants”) in California State Court. The lawsuit alleges the Defendants violated federal securities laws by failing to adequately disclose in the prospectuses issued by the funds noted above the risks of using stop-loss orders in the event of a ‘flash crash’, such as the one that occurred on May 6, 2010. On September 18, 2017, the court issued a Statement of Decision holding that the Plaintiffs lack standing to assert their claims. On October 11, 2017, the court entered final judgment dismissing all of the Plaintiffs’ claims with prejudice. Plaintiffs have appealed the court’s decision.
122 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
10. | SUBSEQUENT EVENTS |
Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or disclosure in the financial statements.
NOTESTO FINANCIAL STATEMENTS | 123 |
Table of Contents
Notes:
124 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes:
NOTES | 125 |
Table of Contents
Notes:
126 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
For more information visit www.iShares.com or call 1-800-iShares (1-800-474-2737)
This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus.
Investing involves risk, including possible loss of principal.
The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).
The iShares Funds are not sponsored, endorsed, issued, sold or promoted by MSCI Inc., nor does this company make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the company listed above.
©2018 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.
iS-SAR-801-0218
Table of Contents
FEBRUARY 28, 2018
2018 SEMI-ANNUAL REPORT (UNAUDITED) |
iShares Trust
Ø | iShares Adaptive Currency Hedged MSCI Eurozone ETF | DEZU | Cboe BZX |
Ø | iShares Currency Hedged MSCI Eurozone ETF | HEZU | NYSE Arca |
Ø | iShares Currency Hedged MSCI Germany ETF | HEWG | NASDAQ |
Ø | iShares Currency Hedged MSCI Italy ETF | HEWI | NYSE Arca |
Ø | iShares Currency Hedged MSCI Spain ETF | HEWP | NYSE Arca |
Ø | iShares Currency Hedged MSCI Switzerland ETF | HEWL | NYSE Arca |
Table of Contents
5 | ||||
11 | ||||
11 | ||||
12 | ||||
12 | ||||
14 | ||||
17 | ||||
20 | ||||
22 | ||||
24 | ||||
26 | ||||
33 | ||||
39 | ||||
53 | ||||
54 | ||||
55 | ||||
56 | ||||
56 | ||||
61 | ||||
65 | ||||
68 | ||||
70 | ||||
73 | ||||
80 | ||||
85 |
Table of Contents
iSHARES® ADAPTIVE CURRENCY HEDGED MSCI EUROZONE ETF
Performance as of February 28, 2018
The iShares Adaptive Currency Hedged MSCI Eurozone ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization equities from developed market countries which use the euro as their official currency while dynamically hedging currency risk for a U.S. dollar based investor, as represented by the MSCI EMU Adaptive Hedge 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 Eurozone ETF. For the six-month reporting period ended February 28, 2018, the total return for the Fund was 3.96%, net of fees, while the total return for the Index was 4.96%.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||||||||
1 Year | 19.59% | 19.51% | 20.40% | 19.59% | 19.51% | 20.40% | ||||||||||||||||||||||
Since Inception | 11.61% | 11.67% | 12.31% | 26.65% | 26.80% | 28.39% |
The inception date of the Fund was 1/5/16. The first day of secondary market trading was 1/7/16.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 11 for more information.
Shareholder Expenses | ||||||||||||||||||||||||||
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a,b | Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a,b | Annualized Expense Ratio a | ||||||||||||||||||||
$ | 1,000.00 | $ | 1,039.60 | $ | 0.15 | $ | 1,000.00 | $ | 1,024.60 | $ | 0.15 | 0.03% |
a | Annualized expense ratio and expenses paid during the period do not include fees and expenses of the underlying fund in which the Fund invests. |
b | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 11 for more information. |
ALLOCATION BY SECTOR1
As of 2/28/18
Sector | Percentage of Total Investments 2 |
Financials | 21.06 | % | ||
Industrials | 15.03 | |||
Consumer Discretionary | 14.05 | |||
Consumer Staples | 9.70 | |||
Materials | 8.81 | |||
Information Technology | 8.44 | |||
Health Care | 7.48 | |||
Energy | 5.20 | |||
Utilities | 4.80 | |||
Telecommunication Services | 3.72 | |||
Real Estate | 1.71 | |||
|
| |||
TOTAL | 100.00 | % | ||
|
|
TEN LARGEST COUNTRIES1
As of 2/28/18
Country | Percentage of Total Investments 2 |
France | 32.58 | % | ||
Germany | 29.47 | |||
Netherlands | 11.23 | |||
Spain | 9.84 | |||
Italy | 7.48 | |||
Belgium | 3.41 | |||
Finland | 3.11 | |||
Ireland | 1.43 | |||
Austria | 0.82 | |||
Portugal | 0.46 | |||
|
| |||
TOTAL | 99.83 | % | ||
|
|
1 | Table shown is for the iShares MSCI Eurozone ETF, the underlying fund in which the Fund invests. |
2 | Excludes money market funds. |
FUND PERFORMANCE OVERVIEWS | 5 |
Table of Contents
Fund Performance Overview
iSHARES® CURRENCY HEDGED MSCI EUROZONE ETF
Performance as of February 28, 2018
The iShares Currency Hedged MSCI Eurozone ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization equities from developed market countries which use the euro as their official currency while mitigating exposure to fluctuations between the value of the euro and the U.S. dollar, as represented by the MSCI EMU 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 Eurozone ETF. For the six-month reporting period ended February 28, 2018, the total return for the Fund was 3.35%, net of fees, while the total return for the Index was 4.30%.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||||||||
1 Year | 11.52% | 11.45% | 12.41% | 11.52% | 11.45% | 12.41% | ||||||||||||||||||||||
Since Inception | 7.30% | 7.27% | 7.93% | 29.27% | 29.13% | 32.06% |
The inception date of the Fund was 7/9/14. The first day of secondary market trading was 7/10/14.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 11 for more information.
Shareholder Expenses | ||||||||||||||||||||||||||
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a,b | Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a,b | Annualized Expense Ratio a | ||||||||||||||||||||
$ | 1,000.00 | $ | 1,033.50 | $ | 0.15 | $ | 1,000.00 | $ | 1,024.60 | $ | 0.15 | 0.03% |
a | Annualized expense ratio and expenses paid during the period do not include fees and expenses of the underlying fund in which the Fund invests. |
b | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 11 for more information. |
ALLOCATION BY SECTOR1
As of 2/28/18
Sector | Percentage of Total Investments 2 |
Financials | 21.06 | % | ||
Industrials | 15.03 | |||
Consumer Discretionary | 14.05 | |||
Consumer Staples | 9.70 | |||
Materials | 8.81 | |||
Information Technology | 8.44 | |||
Health Care | 7.48 | |||
Energy | 5.20 | |||
Utilities | 4.80 | |||
Telecommunication Services | 3.72 | |||
Real Estate | 1.71 | |||
|
| |||
TOTAL | 100.00 | % | ||
|
|
TEN LARGEST COUNTRIES1
As of 2/28/18
Country | Percentage of Total Investments 2 |
France | 32.58 | % | ||
Germany | 29.47 | |||
Netherlands | 11.23 | |||
Spain | 9.84 | |||
Italy | 7.48 | |||
Belgium | 3.41 | |||
Finland | 3.11 | |||
Ireland | 1.43 | |||
Austria | 0.82 | |||
Portugal | 0.46 | |||
|
| |||
TOTAL | 99.83 | % | ||
|
|
1 | Table shown is for the iShares MSCI Eurozone ETF, the underlying fund in which the Fund invests. |
2 | Excludes money market funds. |
6 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® CURRENCY HEDGED MSCI GERMANY ETF
Performance as of February 28, 2018
The iShares Currency Hedged MSCI Germany ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization German equities while mitigating exposure to fluctuations between the value of the euro and the U.S. dollar, as represented by the MSCI Germany 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 Germany ETF. For the six-month reporting period ended February 28, 2018, the total return for the Fund was 4.19%, net of fees, while the total return for the Index was 5.09%.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||||||||
1 Year | 6.52% | 6.52% | 7.51% | 6.52% | 6.52% | 7.51% | ||||||||||||||||||||||
Since Inception | 7.39% | 7.39% | 7.81% | 33.76% | 33.75% | 35.93% |
The inception date of the Fund was 1/31/14. The first day of secondary market trading was 2/4/14.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 11 for more information.
Shareholder Expenses | ||||||||||||||||||||||||||
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a,b | Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a,b | Annualized Expense Ratio a | ||||||||||||||||||||
$ | 1,000.00 | $ | 1,041.90 | $ | 0.30 | $ | 1,000.00 | $ | 1,024.50 | $ | 0.30 | 0.06% |
a | Annualized expense ratio and expenses paid during the period do not include fees and expenses of the underlying fund in which the Fund invests. |
b | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 11 for more information. |
ALLOCATION BY SECTOR1
As of 2/28/18
Sector | Percentage of Total Investments 2 | |||
Consumer Discretionary | 19.44 | % | ||
Financials | 15.35 | |||
Materials | 14.92 | |||
Industrials | 14.19 | |||
Health Care | 11.99 | |||
Information Technology | 10.79 | |||
Telecommunication Services | 4.23 | |||
Consumer Staples | 3.50 | |||
Utilities | 3.06 | |||
Real Estate | 2.53 | |||
|
| |||
TOTAL | 100.00 | % | ||
|
|
TEN LARGEST FUND HOLDINGS1
As of 2/28/18
Security | Percentage of Total Investments 2 | |||
Allianz SE Registered | 7.19 | % | ||
SAP SE | 7.11 | |||
Siemens AG Registered | 6.96 | |||
Bayer AG Registered | 6.67 | |||
BASF SE | 6.66 | |||
Daimler AG Registered | 5.69 | |||
Deutsche Telekom AG Registered | 3.71 | |||
Deutsche Post AG Registered | 3.06 | |||
adidas AG | 2.88 | |||
Linde AG | 2.87 | |||
|
| |||
TOTAL | 52.80 | % | ||
|
|
1 | Table shown is for the iShares MSCI Germany ETF, the underlying fund in which the Fund invests. |
2 | Excludes money market funds. |
FUND PERFORMANCE OVERVIEWS | 7 |
Table of Contents
Fund Performance Overview
iSHARES® CURRENCY HEDGED MSCI ITALY ETF
Performance as of February 28, 2018
The iShares Currency Hedged MSCI Italy ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization Italian equities while mitigating exposure to fluctuations between the value of the euro and the U.S. dollar, as represented by the MSCI Italy 25/50 100% 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 Italy ETF. For the six-month reporting period ended February 28, 2018, the total return for the Fund was 4.02%, net of fees, while the total return for the Index was 4.80%.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||||||||
1 Year | 22.08% | 22.02% | 22.95% | 22.08% | 22.02% | 22.95% | ||||||||||||||||||||||
Since Inception | 3.28% | 3.23% | 3.13% | 9.02% | 8.86% | 8.58% |
The inception date of the Fund was 6/29/15. The first day of secondary market trading was 7/1/15.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 11 for more information.
Shareholder Expenses | ||||||||||||||||||||||||||
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a,b | Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a,b | Annualized Expense Ratio a | ||||||||||||||||||||
$ | 1,000.00 | $ | 1,040.20 | $ | 0.00 | $ | 1,000.00 | $ | 1,024.80 | $ | 0.00 | 0.00% |
a | Annualized expense ratio and expenses paid during the period do not include fees and expenses of the underlying funds in which the Fund invests. |
b | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 11 for more information. |
ALLOCATION BY SECTOR1
As of 2/28/18
Sector | Percentage of Total Investments 2 |
Financials | 36.64 | % | ||
Energy | 16.53 | |||
Utilities | 14.44 | |||
Industrials | 12.49 | |||
Consumer Discretionary | 12.30 | |||
Telecommunication Services | 4.62 | |||
Consumer Staples | 1.53 | |||
Health Care | 1.45 | |||
|
| |||
TOTAL | 100.00 | % | ||
|
|
TEN LARGEST FUND HOLDINGS1
As of 2/28/18
Security | Percentage of Total Investments 2 |
Intesa Sanpaolo SpA | 12.49 | % | ||
Enel SpA | 11.57 | |||
UniCredit SpA | 10.25 | |||
Eni SpA | 10.25 | |||
Assicurazioni Generali SpA | 4.52 | |||
Ferrari NV | 4.45 | |||
Fiat Chrysler Automobiles NV | 4.43 | |||
CNH Industrial NV | 4.40 | |||
Atlantia SpA | 4.23 | |||
Snam SpA | 3.51 | |||
|
| |||
TOTAL | 70.10 | % | ||
|
|
1 | Table shown is for the iShares MSCI Italy ETF, the underlying fund in which the Fund invests. |
2 | Excludes money market funds. |
8 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® CURRENCY HEDGED MSCI SPAIN ETF
Performance as of February 28, 2018
The iShares Currency Hedged MSCI Spain ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization Spanish equities while mitigating exposure to fluctuations between the value of the euro and the U.S. dollar, as represented by the MSCI Spain 25/50 100% 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 Spain ETF. For the six-month reporting period ended February 28, 2018, the total return for the Fund was -2.07%, net of fees, while the total return for the Index was -1.17%.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||||||||
1 Year | 9.74% | 9.85% | 10.77% | 9.74% | 9.85% | 10.77% | ||||||||||||||||||||||
Since Inception | 1.12% | 1.14% | 1.43% | 3.03% | 3.08% | 3.86% |
The inception date of the Fund was 6/29/15. The first day of secondary market trading was 7/1/15.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 11 for more information.
Shareholder Expenses | ||||||||||||||||||||||||||
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a,b | Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a,b | Annualized Expense Ratio a | ||||||||||||||||||||
$ | 1,000.00 | $ | 979.30 | $ | 0.15 | $ | 1,000.00 | $ | 1,024.60 | $ | 0.15 | 0.03% |
a | Annualized expense ratio and expenses paid during the period do not include fees and expenses of the underlying fund in which the Fund invests. |
b | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 11 for more information. |
ALLOCATION BY SECTOR1
As of 2/28/18
Sector | Percentage of Total Investments 2 |
Financials | 43.99 | % | ||
Industrials | 16.85 | |||
Utilities | 13.95 | |||
Telecommunication Services | 7.47 | |||
Energy | 6.54 | |||
Information Technology | 4.58 | |||
Consumer Discretionary | 4.19 | |||
Health Care | 2.43 | |||
|
| |||
TOTAL | 100.00 | % | ||
|
|
TEN LARGEST FUND HOLDINGS1
As of 2/28/18
Security | Percentage of Total Investments 2 |
Banco Santander SA | 20.99 | % | ||
Banco Bilbao Vizcaya Argentaria SA | 9.78 | |||
Telefonica SA | 7.47 | |||
Iberdrola SA | 6.91 | |||
Repsol SA | 4.75 | |||
Amadeus IT Group SA | 4.58 | |||
CaixaBank SA | 4.42 | |||
Abertis Infraestructuras SA | 4.22 | |||
Industria de Diseno Textil SA | 4.19 | |||
Aena SME SA | 3.66 | |||
|
| |||
TOTAL | 70.97 | % | ||
|
|
1 | Table shown is for the iShares MSCI Spain ETF, the underlying fund in which the Fund invests. |
2 | Excludes money market funds. |
FUND PERFORMANCE OVERVIEWS | 9 |
Table of Contents
Fund Performance Overview
iSHARES® CURRENCY HEDGED MSCI SWITZERLAND ETF
Performance as of February 28, 2018
The iShares Currency Hedged MSCI Switzerland ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization Swiss equities while mitigating exposure to fluctuations between the value of the Swiss franc and the U.S. dollar, as represented by the MSCI Switzerland 25/50 100% 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 Switzerland ETF. For the six-month reporting period ended February 28, 2018, the total return for the Fund was 1.44%, net of fees, while the total return for the Index was 2.03%.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||||||||
1 Year | 10.57% | 10.66% | 11.21% | 10.57% | 10.66% | 11.21% | ||||||||||||||||||||||
Since Inception | 6.54% | 6.57% | 6.67% | 18.43% | 18.53% | 18.82% |
The inception date of the Fund was 6/29/15. The first day of secondary market trading was 7/1/15.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 11 for more information.
Shareholder Expenses | ||||||||||||||||||||||||||
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a,b | Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a,b | Annualized Expense Ratio a | ||||||||||||||||||||
$ | 1,000.00 | $ | 1,014.40 | $ | 0.15 | $ | 1,000.00 | $ | 1,024.60 | $ | 0.15 | 0.03% |
a | Annualized expense ratio and expenses paid during the period do not include fees and expenses of the underlying fund in which the Fund invests. |
b | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 11 for more information. |
ALLOCATION BY SECTOR1
As of 2/28/18
Sector | Percentage of Total Investments 2 |
Health Care | 30.18 | % | ||
Financials | 21.39 | |||
Consumer Staples | 21.30 | |||
Industrials | 11.02 | |||
Materials | 7.18 | |||
Consumer Discretionary | 6.71 | |||
Telecommunication Services | 1.42 | |||
Real Estate | 0.80 | |||
|
| |||
TOTAL | 100.00 | % | ||
|
|
TEN LARGEST FUND HOLDINGS1
As of 2/28/18
Security | Percentage of Total Investments 2 |
Nestle SA Registered | 19.08 | % | ||
Novartis AG Registered | 13.88 | |||
Roche Holding AG | 11.92 | |||
UBS Group AG | 4.53 | |||
Zurich Insurance Group AG | 4.46 | |||
Cie. Financiere Richemont SA Class A Registered | 4.12 | |||
Credit Suisse Group AG Registered | 4.05 | |||
ABB Ltd. Registered | 4.04 | |||
Swiss Re AG | 2.95 | |||
LafargeHolcim Ltd. Registered | 2.49 | |||
|
| |||
TOTAL | 71.52 | % | ||
|
|
1 | Table shown is for the iShares MSCI Switzerland ETF, the underlying fund in which the Fund invests. |
2 | Excludes money market funds. |
10 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Past performance is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at www.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. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer 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. Certain funds may have a NAV which is determined prior to the opening of regular trading on its listed exchange and their market returns are calculated using the midpoint of the bid/ask spread as of the opening of regular trading on the exchange. 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.
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested on September 1, 2017 and held through February 28, 2018, is intended to help you understand your ongoing costs (in dollars and cents) of investing in a Fund and to compare these costs with the ongoing costs of investing in other funds.
Actual Expenses — The table provides information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. To estimate the expenses that you paid on your account over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number corresponding to your Fund under the heading entitled “Expenses Paid During Period.”
Hypothetical Example for Comparison Purposes — The table also provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions paid on purchases and sales of fund shares. Therefore, the hypothetical examples are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
ABOUT FUND PERFORMANCE / SHAREHOLDER EXPENSES | 11 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® ADAPTIVE CURRENCY HEDGED MSCI EUROZONE ETF
February 28, 2018
Security | Shares | Value | ||||||
INVESTMENT COMPANIES — 99.65% |
| |||||||
EXCHANGE-TRADED FUNDS — 99.65% |
| |||||||
iShares MSCI Eurozone ETFa | 65,453 | $ | 2,856,369 | |||||
|
| |||||||
2,856,369 | ||||||||
|
| |||||||
TOTAL INVESTMENT COMPANIES |
| |||||||
(Cost: $2,238,528) |
| 2,856,369 | ||||||
SHORT-TERM INVESTMENTS — 0.04% |
| |||||||
MONEY MARKET FUNDS — 0.04% |
| |||||||
BlackRock Cash Funds: Treasury, |
| |||||||
1.32%a,b | 1,199 | 1,199 | ||||||
|
| |||||||
1,199 | ||||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||||
(Cost: $1,199) |
| 1,199 | ||||||
|
|
Value | ||||||||
TOTAL INVESTMENTS |
| |||||||
(Cost: $2,239,727) | $ | 2,857,568 | ||||||
Other Assets, Less Liabilities — 0.31% |
| 8,975 | ||||||
|
| |||||||
NET ASSETS — 100.00% |
| $ | 2,866,543 | |||||
|
|
a | Affiliate of the Fund. |
b | Annualized 7-day yield as of period end. |
Affiliates (Note 2)
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows:
Affiliated issuer | Shares held at 08/31/17 | Shares purchased | Shares sold | Shares held at 02/28/18 | Value at 02/28/18 | Income | Net realized gain (loss) a | Change in unrealized appreciation (depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, | — | — | b | — | — | $ | — | $ | 193 | c | $ | (135 | ) | $ | — | |||||||||||||||||
BlackRock Cash Funds: Treasury, | 1,353 | — | (154 | )b | 1,199 | 1,199 | 8 | — | — | |||||||||||||||||||||||
iShares MSCI Eurozone ETF | 66,259 | 1,776 | (2,582 | ) | 65,453 | 2,856,369 | 12,745 | 15,621 | 108,029 | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 2,857,568 | $ | 12,946 | $ | 15,486 | $ | 108,029 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
a | Includes realized capital gain distributions from an affiliated fund, if any. |
b | Net of purchases and sales. |
c | Includes the Fund’s portion of securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. |
12 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® ADAPTIVE CURRENCY HEDGED MSCI EUROZONE ETF
February 28, 2018
Forward Currency Contracts (Note 5)
Forward currency contracts outstanding as of February 28, 2018 were as follows:
Currency purchased | Currency sold | Counterparty | Settlement date | Unrealized appreciation (depreciation) | ||||||||||||||||||||
EUR | 1,211,000 | USD | 1,476,996 | MS | 03/02/2018 | $ | 424 | |||||||||||||||||
USD | 1,505,451 | EUR | 1,211,000 | MS | 03/02/2018 | 28,030 | ||||||||||||||||||
USD | 2,157,530 | EUR | 1,757,000 | MS | 04/05/2018 | 8,319 | ||||||||||||||||||
|
| |||||||||||||||||||||||
36,773 | ||||||||||||||||||||||||
|
| |||||||||||||||||||||||
EUR | 1,211,000 | USD | 1,485,591 | MS | 03/02/2018 | (8,171 | ) | |||||||||||||||||
USD | 1,476,996 | EUR | 1,211,000 | MS | 03/02/2018 | (424 | ) | |||||||||||||||||
|
| |||||||||||||||||||||||
(8,595 | ) | |||||||||||||||||||||||
|
| |||||||||||||||||||||||
Net unrealized appreciation | $ | 28,178 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||
Counterparty:
MS — Morgan Stanley and Co. International PLC
Currency abbreviations:
EUR — Euro
USD — United States Dollar
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Investment companies | $ | 2,856,369 | $ | — | $ | — | $ | 2,856,369 | ||||||||
Money market funds | 1,199 | — | — | 1,199 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 2,857,568 | $ | — | $ | — | $ | 2,857,568 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative financial instrumentsa | ||||||||||||||||
Assets | ||||||||||||||||
Forward currency contracts | $ | — | $ | 36,773 | $ | — | $ | 36,773 | ||||||||
Liabilities | ||||||||||||||||
Forward currency contracts | — | (8,595 | ) | — | (8,595 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | — | $ | 28,178 | $ | — | $ | 28,178 | ||||||||
|
|
|
|
|
|
|
| |||||||||
a | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
SCHEDULESOF INVESTMENTS | 13 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® CURRENCY HEDGED MSCI EUROZONE ETF
February 28, 2018
Security | Shares | Value | ||||||
INVESTMENT COMPANIES — 99.10% |
| |||||||
EXCHANGE-TRADED FUNDS — 99.10% |
| |||||||
iShares MSCI Eurozone ETFa | 45,852,897 | $ | 2,001,020,425 | |||||
|
| |||||||
2,001,020,425 | ||||||||
|
| |||||||
TOTAL INVESTMENT COMPANIES |
| |||||||
(Cost: $1,878,913,300) |
| 2,001,020,425 | ||||||
SHORT-TERM INVESTMENTS — 0.16% |
| |||||||
MONEY MARKET FUNDS — 0.16% |
| |||||||
BlackRock Cash Funds: Treasury, |
| |||||||
1.32%a,b,c | 3,119,786 | 3,119,786 | ||||||
|
| |||||||
3,119,786 | ||||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||||
(Cost: $3,119,786) |
| 3,119,786 | ||||||
|
|
Value | ||||||||
TOTAL INVESTMENTS |
| |||||||
(Cost: $1,882,033,086) | $ | 2,004,140,211 | ||||||
Other Assets, Less Liabilities — 0.74% |
| 14,987,020 | ||||||
|
| |||||||
NET ASSETS — 100.00% |
| $ | 2,019,127,231 | |||||
|
|
a | Affiliate of the Fund. |
b | Annualized 7-day yield as of period end. |
c | All or a portion of this security was purchased with cash collateral received in connection with outstanding forward currency contracts. |
Affiliates (Note 2)
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows:
Affiliated issuer | Shares held at 08/31/17 | Shares purchased | Shares sold | Shares held at 02/28/18 | Value at 02/28/18 | Income | Net realized gain (loss)a | Change in unrealized appreciation (depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Treasury, | — | 3,119,786 | b | — | 3,119,786 | $ | 3,119,786 | $ | 6,455 | $ | — | $ | — | |||||||||||||||||||
iShares MSCI | 42,763,824 | 17,603,086 | (14,514,013 | ) | 45,852,897 | 2,001,020,425 | 8,450,846 | 68,551,892 | 5,158,059 | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 2,004,140,211 | $ | 8,457,301 | $ | 68,551,892 | $ | 5,158,059 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
a | Includes realized capital gain distributions from an affiliated fund, if any. |
b | Net of purchases and sales. |
14 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® CURRENCY HEDGED MSCI EUROZONE ETF
February 28, 2018
Forward Currency Contracts (Note 5)
Forward currency contracts outstanding as of February 28, 2018 were as follows:
Currency purchased | Currency sold | Counterparty | Settlement date | Unrealized appreciation (depreciation) | ||||||||||||||||||||
EUR | 155,857,434 | USD | 190,091,519 | CITI | 03/02/2018 | $ | 54,581 | |||||||||||||||||
USD | 115,615,015 | EUR | 92,288,000 | BOA | 03/02/2018 | 3,023,636 | ||||||||||||||||||
USD | 193,872,314 | EUR | 155,857,434 | CITI | 03/02/2018 | 3,726,214 | ||||||||||||||||||
USD | 352,048 | EUR | 288,000 | JPM | 03/02/2018 | 688 | ||||||||||||||||||
USD | 1,845,113,890 | EUR | 1,481,714,911 | SSB | 03/02/2018 | 37,421,409 | ||||||||||||||||||
USD | 23,993,212 | EUR | 19,543,000 | UBS | 03/02/2018 | 150,749 | ||||||||||||||||||
EUR | 21,124,000 | USD | 25,832,793 | BOA | 04/05/2018 | 6,670 | ||||||||||||||||||
USD | 192,371,714 | EUR | 155,857,434 | CITI | 04/05/2018 | 1,722,571 | ||||||||||||||||||
USD | 1,879,489,593 | EUR | 1,523,973,911 | SSB | 04/05/2018 | 15,322,375 | ||||||||||||||||||
|
| |||||||||||||||||||||||
61,428,893 | ||||||||||||||||||||||||
|
| |||||||||||||||||||||||
EUR | 14,322,000 | USD | 17,638,418 | BBP | 03/02/2018 | (165,575 | ) | |||||||||||||||||
EUR | 4,614,000 | USD | 5,726,348 | BOA | 03/02/2018 | (97,267 | ) | |||||||||||||||||
EUR | 155,857,434 | USD | 191,876,087 | CITI | 03/02/2018 | (1,729,987 | ) | |||||||||||||||||
EUR | 4,291,000 | USD | 5,357,729 | JPM | 03/02/2018 | (122,708 | ) | |||||||||||||||||
EUR | 1,562,736,911 | USD | 1,922,729,173 | SSB | 03/02/2018 | (16,189,836 | ) | |||||||||||||||||
EUR | 7,870,000 | USD | 9,788,699 | UBS | 03/02/2018 | (187,298 | ) | |||||||||||||||||
USD | 190,091,519 | EUR | 155,857,434 | CITI | 03/02/2018 | (54,580 | ) | |||||||||||||||||
EUR | 14,054,000 | USD | 17,192,843 | BBP | 04/05/2018 | (1,600 | ) | |||||||||||||||||
EUR | 22,421,000 | USD | 27,442,239 | SSB | 04/05/2018 | (16,249 | ) | |||||||||||||||||
|
| |||||||||||||||||||||||
(18,565,100 | ) | |||||||||||||||||||||||
|
| |||||||||||||||||||||||
Net unrealized appreciation | $ | 42,863,793 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||
Counterparties:
BBP — Barclays Bank PLC Wholesale
BOA — Bank of America N.A.
CITI — Citibank N.A. London
JPM — JPMorgan Chase Bank N.A.
SSB — State Street Bank London
UBS — UBS AG London
Currency abbreviations:
EUR — Euro
USD — United States Dollar
SCHEDULESOF INVESTMENTS | 15 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® CURRENCY HEDGED MSCI EUROZONE ETF
February 28, 2018
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Investment companies | $ | 2,001,020,425 | $ | — | $ | — | $ | 2,001,020,425 | ||||||||
Money market funds | 3,119,786 | — | — | 3,119,786 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 2,004,140,211 | $ | — | $ | — | $ | 2,004,140,211 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative financial instrumentsa | ||||||||||||||||
Assets | ||||||||||||||||
Forward currency contracts | $ | — | $ | 61,428,893 | $ | — | $ | 61,428,893 | ||||||||
Liabilities | ||||||||||||||||
Forward currency contracts | — | (18,565,100 | ) | — | (18,565,100 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | — | $ | 42,863,793 | $ | — | $ | 42,863,793 | ||||||||
|
|
|
|
|
|
|
| |||||||||
a | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
16 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® CURRENCY HEDGED MSCI GERMANY ETF
February 28, 2018
Security | Shares | Value | ||||||
INVESTMENT COMPANIES — 99.07% |
| |||||||
EXCHANGE-TRADED FUNDS — 99.07% |
| |||||||
iShares MSCI Germany ETFa | 19,073,980 | $ | 618,569,171 | |||||
|
| |||||||
618,569,171 | ||||||||
|
| |||||||
TOTAL INVESTMENT COMPANIES |
| |||||||
(Cost: $576,765,815) |
| 618,569,171 | ||||||
SHORT-TERM INVESTMENTS — 0.15% |
| |||||||
MONEY MARKET FUNDS — 0.15% |
| |||||||
BlackRock Cash Funds: Treasury, |
| |||||||
1.32%a,b,c | 933,524 | 933,524 | ||||||
|
| |||||||
933,524 | ||||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||||
(Cost: $933,524) |
| 933,524 | ||||||
|
|
Value | ||||||||
TOTAL INVESTMENTS |
| |||||||
(Cost: $577,699,339) | $ | 619,502,695 | ||||||
Other Assets, Less Liabilities — 0.78% |
| 4,892,523 | ||||||
|
| |||||||
NET ASSETS — 100.00% |
| $ | 624,395,218 | |||||
|
|
a | Affiliate of the Fund. |
b | Annualized 7-day yield as of period end. |
c | All or a portion of this security was purchased with cash collateral received in connection with outstanding forward currency contracts. |
Affiliates (Note 2)
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows:
Affiliated issuer | Shares held at 08/31/17 | Shares purchased | Shares sold | Shares held at 02/28/18 | Value at 02/28/18 | Income | Net realized gain (loss)a | Change in unrealized appreciation (depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Treasury, | — | 933,524 | b | — | 933,524 | $ | 933,524 | $ | 2,254 | $ | — | $ | — | |||||||||||||||||||
iShares MSCI Germany ETF | 25,676,573 | 2,783,704 | (9,386,297 | ) | 19,073,980 | 618,569,171 | 1,739,784 | 29,871,017 | 13,144,257 | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 619,502,695 | $ | 1,742,038 | $ | 29,871,017 | $ | 13,144,257 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
a | Includes realized capital gain distributions from an affiliated fund, if any. |
b | Net of purchases and sales. |
SCHEDULESOF INVESTMENTS | 17 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® CURRENCY HEDGED MSCI GERMANY ETF
February 28, 2018
Forward Currency Contracts (Note 5)
Forward currency contracts outstanding as of February 28, 2018 were as follows:
Currency purchased | Currency sold | Counterparty | Settlement date | Unrealized appreciation (depreciation) | ||||||||||||||||||||
EUR | 53,510,800 | USD | 65,264,447 | CITI | 03/02/2018 | $ | 18,739 | |||||||||||||||||
USD | 9,979,024 | EUR | 7,996,000 | BNY | 03/02/2018 | 223,903 | ||||||||||||||||||
USD | 66,527,837 | EUR | 53,510,800 | CITI | 03/02/2018 | 1,244,651 | ||||||||||||||||||
USD | 1,407,485 | EUR | 1,125,000 | NSI | 03/02/2018 | 34,985 | ||||||||||||||||||
USD | 617,430,020 | EUR | 495,658,200 | SSB | 03/02/2018 | 12,726,919 | ||||||||||||||||||
EUR | 13,905,000 | USD | 17,004,591 | BOA | 04/05/2018 | 4,391 | ||||||||||||||||||
USD | 66,047,310 | EUR | 53,510,800 | CITI | 04/05/2018 | 591,413 | ||||||||||||||||||
USD | 586,690,993 | EUR | 475,715,200 | SSB | 04/05/2018 | 4,782,947 | ||||||||||||||||||
|
| |||||||||||||||||||||||
19,627,948 | ||||||||||||||||||||||||
|
| |||||||||||||||||||||||
EUR | 4,627,000 | USD | 5,786,327 | BOA | 03/02/2018 | (141,386 | ) | |||||||||||||||||
EUR | 113,857,600 | USD | 139,647,443 | CITI | 03/02/2018 | (778,628 | ) | |||||||||||||||||
EUR | 7,463,000 | USD | 9,313,488 | JPM | 03/02/2018 | (208,627 | ) | |||||||||||||||||
EUR | 475,715,200 | USD | 585,177,268 | SSB | 03/02/2018 | (4,804,631 | ) | |||||||||||||||||
EUR | 10,138,000 | USD | 12,605,626 | UBS | 03/02/2018 | (237,264 | ) | |||||||||||||||||
EUR | 7,548,000 | USD | 9,238,393 | SSB | 04/05/2018 | (5,470 | ) | |||||||||||||||||
|
| |||||||||||||||||||||||
(6,176,006 | ) | |||||||||||||||||||||||
|
| |||||||||||||||||||||||
Net unrealized appreciation | $ | 13,451,942 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||
Counterparties:
BNY — Bank of New York
BOA — Bank of America N.A.
CITI — Citibank N.A. London
JPM — JPMorgan Chase Bank N.A.
NSI — Nomura Securities International Inc.
SSB — State Street Bank London
UBS — UBS AG London
Currency abbreviations:
EUR — Euro
USD — United States Dollar
18 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® CURRENCY HEDGED MSCI GERMANY ETF
February 28, 2018
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Investment companies | $ | 618,569,171 | $ | — | $ | — | $ | 618,569,171 | ||||||||
Money market funds | 933,524 | — | — | 933,524 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 619,502,695 | $ | — | $ | — | $ | 619,502,695 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative financial instrumentsa | ||||||||||||||||
Assets | ||||||||||||||||
Forward currency contracts | $ | — | $ | 19,627,948 | $ | — | $ | 19,627,948 | ||||||||
Liabilities | ||||||||||||||||
Forward currency contracts | — | (6,176,006 | ) | — | (6,176,006 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | — | $ | 13,451,942 | $ | — | $ | 13,451,942 | ||||||||
|
|
|
|
|
|
|
| |||||||||
a | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
SCHEDULESOF INVESTMENTS | 19 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® CURRENCY HEDGED MSCI ITALY ETF
February 28, 2018
Security | Shares | Value | ||||||
INVESTMENT COMPANIES — 99.35% |
| |||||||
EXCHANGE-TRADED FUNDS — 99.35% |
| |||||||
iShares MSCI Italy ETFa | 136,039 | $ | 4,313,797 | |||||
|
| |||||||
4,313,797 | ||||||||
|
| |||||||
TOTAL INVESTMENT COMPANIES | ||||||||
(Cost: $3,752,645) | 4,313,797 | |||||||
SHORT-TERM INVESTMENTS — 0.05% |
| |||||||
MONEY MARKET FUNDS — 0.05% |
| |||||||
BlackRock Cash Funds: Treasury, | ||||||||
1.32%a,b | 2,019 | 2,019 | ||||||
|
| |||||||
2,019 | ||||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS | ||||||||
(Cost: $2,019) | 2,019 | |||||||
|
|
Value | ||||||||
TOTAL INVESTMENTS | ||||||||
(Cost: $3,754,664) | $ | 4,315,816 | ||||||
Other Assets, Less Liabilities — 0.60% | 25,956 | |||||||
|
| |||||||
NET ASSETS — 100.00% | $ | 4,341,772 | ||||||
|
|
a | Affiliate of the Fund. |
b | Annualized 7-day yield as of period end. |
Affiliates (Note 2)
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows:
Affiliated issuer | Shares held at 08/31/17 | Shares purchased | Shares sold | Shares held at 02/28/18 | Value at 02/28/18 | Income | Net realized gain (loss)a | Change in unrealized appreciation (depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, | — | — | b | — | — | $ | — | $ | 59 | c | $ | — | $ | — | ||||||||||||||||||
BlackRock Cash Funds: Treasury, | 2,813 | — | (794 | )b | 2,019 | 2,019 | 16 | — | — | |||||||||||||||||||||||
iShares MSCI Italy ETF | 194,240 | — | (65,621 | ) | 136,039 | 4,313,797 | 23,677 | 399,029 | (160,622 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 4,315,816 | $ | 23,752 | $ | 399,029 | $ | (160,622 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
a | Includes realized capital gain distributions from an affiliated fund, if any. |
b | Net of purchases and sales. |
c | Includes the Fund’s portion of securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. |
20 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® CURRENCY HEDGED MSCI ITALY ETF
February 28, 2018
Forward Currency Contracts (Note 5)
Forward currency contracts outstanding as of February 28, 2018 were as follows:
Currency purchased | Currency sold | Counterparty | Settlement date | Unrealized appreciation (depreciation) | ||||||||||||||||||||
EUR | 3,692,000 | USD | 4,502,948 | MS | 03/02/2018 | $ | 1,293 | |||||||||||||||||
USD | 4,595,445 | EUR | 3,692,000 | MS | 03/02/2018 | 91,205 | ||||||||||||||||||
EUR | 32,000 | USD | 39,133 | MS | 04/05/2018 | 10 | ||||||||||||||||||
USD | 4,458,350 | EUR | 3,625,000 | MS | 04/05/2018 | 24,150 | ||||||||||||||||||
|
| |||||||||||||||||||||||
116,658 | ||||||||||||||||||||||||
|
| |||||||||||||||||||||||
EUR | 3,692,000 | USD | 4,530,315 | MS | 03/02/2018 | (26,074 | ) | |||||||||||||||||
USD | 4,502,948 | EUR | 3,692,000 | MS | 03/02/2018 | (1,293 | ) | |||||||||||||||||
EUR | 49,000 | USD | 59,961 | MS | 04/05/2018 | (23 | ) | |||||||||||||||||
|
| |||||||||||||||||||||||
(27,390 | ) | |||||||||||||||||||||||
|
| |||||||||||||||||||||||
Net unrealized appreciation | $ | 89,268 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||
Counterparty:
MS — Morgan Stanley and Co. International PLC
Currency abbreviations:
EUR — Euro
USD — United States Dollar
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments |
| |||||||||||||||
Assets |
| |||||||||||||||
Investment companies | $ | 4,313,797 | $ | — | $ | — | $ | 4,313,797 | ||||||||
Money market funds | 2,019 | — | — | 2,019 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 4,315,816 | $ | — | $ | — | $ | 4,315,816 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative financial instrumentsa |
| |||||||||||||||
Assets |
| |||||||||||||||
Forward currency contracts | $ | — | $ | 116,658 | $ | — | $ | 116,658 | ||||||||
Liabilities |
| |||||||||||||||
Forward currency contracts | — | (27,390 | ) | — | (27,390 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | — | $ | 89,268 | $ | — | $ | 89,268 | ||||||||
|
|
|
|
|
|
|
| |||||||||
a | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
SCHEDULESOF INVESTMENTS | 21 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® CURRENCY HEDGED MSCI SPAIN ETF
February 28, 2018
Security | Shares | Value | ||||||
INVESTMENT COMPANIES — 99.34% |
| |||||||
EXCHANGE-TRADED FUNDS — 99.34% |
| |||||||
iShares MSCI Spain ETFa | 1,128,309 | $ | 37,064,951 | |||||
|
| |||||||
37,064,951 | ||||||||
|
| |||||||
TOTAL INVESTMENT COMPANIES | ||||||||
(Cost: $35,782,202) | 37,064,951 | |||||||
SHORT-TERM INVESTMENTS — 1.32% |
| |||||||
MONEY MARKET FUNDS — 1.32% |
| |||||||
BlackRock Cash Funds: Treasury, | ||||||||
1.32%a,b,c | 492,736 | 492,736 | ||||||
|
| |||||||
492,736 | ||||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||||
(Cost: $492,736) | 492,736 | |||||||
|
|
Value | ||||||||
TOTAL INVESTMENTS | ||||||||
(Cost: $36,274,938) | $ | 37,557,687 | ||||||
Other Assets, Less Liabilities — (0.66)% | (247,989 | ) | ||||||
|
| |||||||
NET ASSETS — 100.00% | $ | 37,309,698 | ||||||
|
|
a | Affiliate of the Fund. |
b | Annualized 7-day yield as of period end. |
c | All or a portion of this security was purchased with cash collateral received in connection with outstanding forward currency contracts. |
Affiliates (Note 2)
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows:
Affiliated issuer | Shares held at 08/31/17 | Shares purchased | Shares sold | Shares held at 02/28/18 | Value at 02/28/18 | Income | Net realized gain (loss) a | Change in unrealized appreciation (depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, | — | — | b | — | — | $ | — | $ | 2,610 | c | $ | (201 | ) | $ | — | |||||||||||||||||
BlackRock Cash Funds: Treasury, | — | 492,736 | b | — | 492,736 | 492,736 | 542 | — | — | |||||||||||||||||||||||
iShares MSCI Spain ETF | 1,589,284 | 789,396 | (1,250,371 | ) | 1,128,309 | 37,064,951 | 615,557 | 7,194,344 | (8,657,199 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 37,557,687 | $ | 618,709 | $ | 7,194,143 | $ | (8,657,199 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
a | Includes realized capital gain distributions from an affiliated fund, if any. |
b | Net of purchases and sales. |
c | Includes the Fund’s portion of securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. |
22 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® CURRENCY HEDGED MSCI SPAIN ETF
February 28, 2018
Forward Currency Contracts (Note 5)
Forward currency contracts outstanding as of February 28, 2018 were as follows:
Currency purchased | Currency sold | Counterparty | Settlement date | Unrealized appreciation (depreciation) | ||||||||||||||||||||
EUR | 32,040,000 | USD | 39,077,586 | MS | 03/02/2018 | $ | 11,220 | |||||||||||||||||
USD | 39,870,528 | EUR | 32,040,000 | MS | 03/02/2018 | 781,722 | ||||||||||||||||||
EUR | 650,000 | USD | 794,889 | MS | 04/05/2018 | 209 | ||||||||||||||||||
USD | 38,831,308 | EUR | 31,573,000 | MS | 04/05/2018 | 210,337 | ||||||||||||||||||
|
| |||||||||||||||||||||||
1,003,488 | ||||||||||||||||||||||||
|
| |||||||||||||||||||||||
EUR | 32,040,000 | USD | 39,313,097 | MS | 03/02/2018 | (224,290 | ) | |||||||||||||||||
USD | 39,077,586 | EUR | 32,040,000 | MS | 03/02/2018 | (11,220 | ) | |||||||||||||||||
EUR | 353,000 | USD | 431,962 | MS | 04/05/2018 | (163 | ) | |||||||||||||||||
|
| |||||||||||||||||||||||
(235,673 | ) | |||||||||||||||||||||||
|
| |||||||||||||||||||||||
Net unrealized appreciation | $ | 767,815 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||
Counterparty:
MS — Morgan Stanley and Co. International PLC
Currency abbreviations:
EUR — Euro
USD — United States Dollar
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments |
| |||||||||||||||
Assets |
| |||||||||||||||
Investment companies | $ | 37,064,951 | $ | — | $ | — | $ | 37,064,951 | ||||||||
Money market funds | 492,736 | — | — | 492,736 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 37,557,687 | $ | — | $ | — | $ | 37,557,687 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative financial instrumentsa |
| |||||||||||||||
Assets |
| |||||||||||||||
Forward currency contracts | $ | — | $ | 1,003,488 | $ | — | $ | 1,003,488 | ||||||||
Liabilities |
| |||||||||||||||
Forward Currency Contracts | — | (235,673 | ) | — | (235,673 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | — | $ | 767,815 | $ | — | $ | 767,815 | ||||||||
|
|
|
|
|
|
|
| |||||||||
a | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
SCHEDULESOF INVESTMENTS | 23 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® CURRENCY HEDGED MSCI SWITZERLAND ETF
February 28, 2018
Security | Shares | Value | ||||||
INVESTMENT COMPANIES — 99.35% |
| |||||||
EXCHANGE-TRADED FUNDS — 99.35% |
| |||||||
iShares MSCI Switzerland ETFa | 146,876 | $ | 5,128,910 | |||||
|
| |||||||
5,128,910 | ||||||||
|
| |||||||
TOTAL INVESTMENT COMPANIES | ||||||||
(Cost: $4,927,925) | 5,128,910 | |||||||
SHORT-TERM INVESTMENTS — 0.02% |
| |||||||
MONEY MARKET FUNDS — 0.02% |
| |||||||
BlackRock Cash Funds: Treasury, | ||||||||
1.32%a,b | 1,369 | 1,369 | ||||||
|
| |||||||
1,369 | ||||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS | ||||||||
(Cost: $1,369) | 1,369 | |||||||
|
|
Value | ||||||||
TOTAL INVESTMENTS | ||||||||
(Cost: $4,929,294) | $ | 5,130,279 | ||||||
Other Assets, Less Liabilities — 0.63% | 32,348 | |||||||
|
| |||||||
NET ASSETS — 100.00% | $ | 5,162,627 | ||||||
|
|
a | Affiliate of the Fund. |
b | Annualized 7-day yield as of period end. |
Affiliates (Note 2)
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows:
Affiliated issuer | Shares held at 08/31/17 | Shares purchased | Shares sold | Shares held at 02/28/18 | Value at 02/28/18 | Income | Net realized gain (loss) a | Change in unrealized appreciation (depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, | — | — | b | — | — | $ | — | $ | 533 | c | $ | 2 | $ | — | ||||||||||||||||||
BlackRock Cash Funds: Treasury, | 3,245 | — | (1,876 | )b | 1,369 | 1,369 | 13 | — | — | |||||||||||||||||||||||
iShares MSCI Switzerland ETF | 191,281 | 8,675 | (53,080 | ) | 146,876 | 5,128,910 | — | 202,422 | (59,226 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 5,130,279 | $ | 546 | $ | 202,424 | $ | (59,226 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
a | Includes realized capital gain distributions from an affiliated fund, if any. |
b | Net of purchases and sales. |
c | Includes the Fund’s portion of securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. |
24 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® CURRENCY HEDGED MSCI SWITZERLAND ETF
February 28, 2018
Forward Currency Contracts (Note 5)
Forward currency contracts outstanding as of February 28, 2018 were as follows:
Currency purchased | Currency sold | Counterparty | Settlement date | Unrealized appreciation (depreciation) | ||||||||||||||||||||
CHF | 5,329,000 | USD | 5,638,855 | MS | 03/02/2018 | $ | 3,881 | |||||||||||||||||
USD | 5,718,541 | CHF | 5,329,000 | MS | 03/02/2018 | 75,805 | ||||||||||||||||||
CHF | 141,000 | USD | 149,664 | MS | 04/05/2018 | 101 | ||||||||||||||||||
USD | 5,411,975 | CHF | 5,067,000 | MS | 04/05/2018 | 29,994 | ||||||||||||||||||
|
| |||||||||||||||||||||||
109,781 | ||||||||||||||||||||||||
|
| |||||||||||||||||||||||
CHF | 5,329,000 | USD | 5,678,056 | MS | 03/02/2018 | (35,320 | ) | |||||||||||||||||
USD | 5,638,855 | CHF | 5,329,000 | MS | 03/02/2018 | (3,881 | ) | |||||||||||||||||
CHF | 46,000 | USD | 48,865 | MS | 04/05/2018 | (5 | ) | |||||||||||||||||
|
| |||||||||||||||||||||||
(39,206 | ) | |||||||||||||||||||||||
|
| |||||||||||||||||||||||
Net unrealized appreciation | $ | 70,575 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||
Counterparty:
MS — Morgan Stanley and Co. International PLC
Currency abbreviations:
CHF — Swiss Franc
USD — United States Dollar
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments |
| |||||||||||||||
Assets |
| |||||||||||||||
Investment companies | $ | 5,128,910 | $ | — | $ | — | $ | 5,128,910 | ||||||||
Money market funds | 1,369 | — | — | 1,369 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 5,130,279 | $ | — | $ | — | $ | 5,130,279 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative financial instrumentsa |
| |||||||||||||||
Assets |
| |||||||||||||||
Forward currency contracts | $ | — | $ | 109,781 | $ | — | $ | 109,781 | ||||||||
Liabilities |
| |||||||||||||||
Forward currency contracts | — | (39,206 | ) | — | (39,206 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | — | $ | 70,575 | $ | — | $ | 70,575 | ||||||||
|
|
|
|
|
|
|
| |||||||||
a | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
SCHEDULESOF INVESTMENTS | 25 |
Table of Contents
Statements of Assets and Liabilities (Unaudited)
iSHARES® TRUST
February 28, 2018
iShares Adaptive Currency Hedged MSCI Eurozone ETF | iShares Currency Hedged MSCI Eurozone ETF | iShares Currency Hedged MSCI Germany ETF | ||||||||||
ASSETS |
| |||||||||||
Investments in securities, at cost: |
| |||||||||||
Affiliated (Note 2) | $ | 2,239,727 | $ | 1,882,033,086 | $ | 577,699,339 | ||||||
|
|
|
|
|
| |||||||
Total cost of investments in securities | $ | 2,239,727 | $ | 1,882,033,086 | $ | 577,699,339 | ||||||
|
|
|
|
|
| |||||||
Investments in securities, at fair value (Note 1): |
| |||||||||||
Affiliated (Note 2) | $ | 2,857,568 | $ | 2,004,140,211 | $ | 619,502,695 | ||||||
Cash | — | 970,000 | — | |||||||||
Receivables: |
| |||||||||||
Dividends and interest | 131 | 2,446 | 721 | |||||||||
Unrealized appreciation on forward currency contracts (Note 1) | 36,773 | 61,428,893 | 19,627,948 | |||||||||
|
|
|
|
|
| |||||||
Total Assets | 2,894,472 | 2,066,541,550 | 639,131,364 | |||||||||
|
|
|
|
|
| |||||||
LIABILITIES |
| |||||||||||
Payables: |
| |||||||||||
Investment securities purchased | 19,268 | 25,309,274 | 7,867,991 | |||||||||
Due to broker for collateral on forward currency contracts | — | 3,110,000 | 660,000 | |||||||||
Capital shares redeemed | — | 383,376 | — | |||||||||
Unrealized depreciation on forward currency contracts (Note 1) | 8,595 | 18,565,100 | 6,176,006 | |||||||||
Investment advisory fees (Note 2) | 66 | 46,569 | 32,149 | |||||||||
|
|
|
|
|
| |||||||
Total Liabilities | 27,929 | 47,414,319 | 14,736,146 | |||||||||
|
|
|
|
|
| |||||||
NET ASSETS | $ | 2,866,543 | $ | 2,019,127,231 | $ | 624,395,218 | ||||||
|
|
|
|
|
| |||||||
Net assets consist of: |
| |||||||||||
Paid-in capital | $ | 2,385,926 | $ | 2,017,014,248 | $ | 645,384,790 | ||||||
Undistributed (distributions in excess of) net investment income | (228 | ) | 69,548 | 792 | ||||||||
Accumulated net realized loss | (165,174 | ) | (162,927,483 | ) | (76,245,662 | ) | ||||||
Net unrealized appreciation | 646,019 | 164,970,918 | 55,255,298 | |||||||||
|
|
|
|
|
| |||||||
NET ASSETS | $ | 2,866,543 | $ | 2,019,127,231 | $ | 624,395,218 | ||||||
|
|
|
|
|
| |||||||
Shares outstandinga | 100,000 | 68,050,000 | 22,400,000 | |||||||||
|
|
|
|
|
| |||||||
Net asset value per share | $ | 28.67 | $ | 29.67 | $ | 27.87 | ||||||
|
|
|
|
|
|
a | No par value, unlimited number of shares authorized. |
See notes to financial statements.
26 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Assets and Liabilities (Unaudited) (Continued)
iSHARES® TRUST
February 28, 2018
iShares Currency Hedged MSCI Italy ETF | iShares Currency Hedged MSCI Spain ETF | iShares Currency Hedged MSCI Switzerland ETF | ||||||||||
ASSETS |
| |||||||||||
Investments in securities, at cost: |
| |||||||||||
Affiliated (Note 2) | $ | 3,754,664 | $ | 36,274,938 | $ | 4,929,294 | ||||||
|
|
|
|
|
| |||||||
Total cost of investments in securities | $ | 3,754,664 | $ | 36,274,938 | $ | 4,929,294 | ||||||
|
|
|
|
|
| |||||||
Investments in securities, at fair value (Note 1): |
| |||||||||||
Affiliated (Note 2) | $ | 4,315,816 | $ | 37,557,687 | $ | 5,130,279 | ||||||
Receivables: | ||||||||||||
Dividends and interest | 1 | 227 | 2 | |||||||||
Unrealized appreciation on forward currency contracts (Note 1) | 116,658 | 1,003,488 | 109,781 | |||||||||
|
|
|
|
|
| |||||||
Total Assets | 4,432,475 | 38,561,402 | 5,240,062 | |||||||||
|
|
|
|
|
| |||||||
LIABILITIES | ||||||||||||
Payables: |
| |||||||||||
Investment securities purchased | 63,313 | 555,203 | 38,109 | |||||||||
Due to broker for collateral on forward currency contracts | — | 460,000 | — | |||||||||
Unrealized depreciation on forward currency contracts (Note 1) | 27,390 | 235,673 | 39,206 | |||||||||
Investment advisory fees (Note 2) | — | 828 | 120 | |||||||||
|
|
|
|
|
| |||||||
Total Liabilities | 90,703 | 1,251,704 | 77,435 | |||||||||
|
|
|
|
|
| |||||||
NET ASSETS | $ | 4,341,772 | $ | 37,309,698 | $ | 5,162,627 | ||||||
|
|
|
|
|
| |||||||
Net assets consist of: | ||||||||||||
Paid-in capital | $ | 4,116,976 | $ | 35,579,473 | $ | 5,038,064 | ||||||
Undistributed (distributions in excess of) net investment income | (4,631 | ) | 86 | (311 | ) | |||||||
Accumulated net realized loss | (420,993 | ) | (320,425 | ) | (146,686 | ) | ||||||
Net unrealized appreciation | 650,420 | 2,050,564 | 271,560 | |||||||||
|
|
|
|
|
| |||||||
NET ASSETS | $ | 4,341,772 | $ | 37,309,698 | $ | 5,162,627 | ||||||
|
|
|
|
|
| |||||||
Shares outstandinga | 250,000 | 1,700,000 | 200,000 | |||||||||
|
|
|
|
|
| |||||||
Net asset value per share | $ | 17.37 | $ | 21.95 | $ | 25.81 | ||||||
|
|
|
|
|
|
a | No par value, unlimited number of shares authorized. |
See notes to financial statements.
FINANCIAL STATEMENTS | 27 |
Table of Contents
Statements of Operations (Unaudited)
iSHARES® TRUST
Six months ended February 28, 2018
iShares Adaptive Currency Hedged MSCI Eurozone ETF | iShares Currency Hedged MSCI Eurozone ETF | iShares Currency Hedged MSCI | ||||||||||
NET INVESTMENT INCOME |
| |||||||||||
Dividends — affiliated (Note 2) | $ | 12,753 | $ | 8,457,301 | $ | 1,742,038 | ||||||
Securities lending income — affiliated — net (Note 2) | 193 | — | — | |||||||||
|
|
|
|
|
| |||||||
Total investment income | 12,946 | 8,457,301 | 1,742,038 | |||||||||
|
|
|
|
|
| |||||||
EXPENSES |
| |||||||||||
Investment advisory fees (Note 2) | 8,928 | 5,844,976 | 1,787,186 | |||||||||
Proxy fees | — | 160 | 82 | |||||||||
|
|
|
|
|
| |||||||
Total expenses | 8,928 | 5,845,136 | 1,787,268 | |||||||||
Less investment advisory fees waived (Note 2) | (8,496 | ) | (5,562,315 | ) | (1,597,955 | ) | ||||||
|
|
|
|
|
| |||||||
Net expenses | 432 | 282,821 | 189,313 | |||||||||
|
|
|
|
|
| |||||||
Net investment income | 12,514 | 8,174,480 | 1,552,725 | |||||||||
|
|
|
|
|
| |||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) |
| |||||||||||
Net realized gain (loss) from: |
| |||||||||||
Investments — affiliated (Note 2) | 15,486 | 346,850 | 1,765,576 | |||||||||
In-kind redemptions — affiliated (Note 2) | — | 68,205,042 | 28,105,441 | |||||||||
Forward currency contracts | (63,131 | ) | (94,983,027 | ) | (37,544,088 | ) | ||||||
|
|
|
|
|
| |||||||
Net realized loss | (47,645 | ) | (26,431,135 | ) | (7,673,071 | ) | ||||||
|
|
|
|
|
| |||||||
Net change in unrealized appreciation/depreciation on: |
| |||||||||||
Investments — affiliated (Note 2) | 108,029 | 5,158,059 | 13,144,257 | |||||||||
Forward currency contracts | 38,631 | 68,343,192 | 25,273,503 | |||||||||
|
|
|
|
|
| |||||||
Net change in unrealized appreciation/depreciation | 146,660 | 73,501,251 | 38,417,760 | |||||||||
|
|
|
|
|
| |||||||
Net realized and unrealized gain | 99,015 | 47,070,116 | 30,744,689 | |||||||||
|
|
|
|
|
| |||||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 111,529 | $ | 55,244,596 | $ | 32,297,414 | ||||||
|
|
|
|
|
|
See notes to financial statements.
28 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Operations (Unaudited) (Continued)
iSHARES® TRUST
Six months ended February 28, 2018
iShares Currency Hedged MSCI | iShares Currency Hedged MSCI Spain ETF | iShares Currency Hedged MSCI Switzerland ETF | ||||||||||
NET INVESTMENT INCOME |
| |||||||||||
Dividends — affiliated (Note 2) | $ | 23,693 | $ | 616,099 | $ | 13 | ||||||
Securities lending income — affiliated — net (Note 2) | 59 | 2,610 | 533 | |||||||||
|
|
|
|
|
| |||||||
Total investment income | 23,752 | 618,709 | 546 | |||||||||
|
|
|
|
|
| |||||||
EXPENSES |
| |||||||||||
Investment advisory fees (Note 2) | 15,686 | 109,370 | 17,705 | |||||||||
Proxy fees | 1 | 6 | — | |||||||||
|
|
|
|
|
| |||||||
Total expenses | 15,687 | 109,376 | 17,705 | |||||||||
Less investment advisory fees waived (Note 2) | (15,687 | ) | (104,085 | ) | (16,848 | ) | ||||||
|
|
|
|
|
| |||||||
Net expenses | — | 5,291 | 857 | |||||||||
|
|
|
|
|
| |||||||
Net investment income (loss) | 23,752 | 613,418 | (311 | ) | ||||||||
|
|
|
|
|
| |||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) |
| |||||||||||
Net realized gain (loss) from: |
| |||||||||||
Investments — affiliated (Note 2) | 16,967 | 43,936 | 17,278 | |||||||||
In-kind redemptions — affiliated (Note 2) | 382,062 | 7,150,207 | 185,146 | |||||||||
Forward currency contracts | (225,627 | ) | (1,897,877 | ) | (143,453 | ) | ||||||
|
|
|
|
|
| |||||||
Net realized gain | 173,402 | 5,296,266 | 58,971 | |||||||||
|
|
|
|
|
| |||||||
Net change in unrealized appreciation/depreciation on: |
| |||||||||||
Investments — affiliated (Note 2) | (160,622 | ) | (8,657,199 | ) | (59,226 | ) | ||||||
Forward currency contracts | 181,089 | 1,560,585 | 141,364 | |||||||||
|
|
|
|
|
| |||||||
Net change in unrealized appreciation/depreciation | 20,467 | (7,096,614 | ) | 82,138 | ||||||||
|
|
|
|
|
| |||||||
Net realized and unrealized gain (loss) | 193,869 | (1,800,348 | ) | 141,109 | ||||||||
|
|
|
|
|
| |||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING | $ | 217,621 | $ | (1,186,930 | ) | $ | 140,798 | |||||
|
|
|
|
|
|
See notes to financial statements.
FINANCIAL STATEMENTS | 29 |
Table of Contents
Statements of Changes in Net Assets
iSHARES® TRUST
iShares Adaptive Currency Hedged MSCI Eurozone ETF | iShares Currency Hedged MSCI Eurozone ETF | |||||||||||||||
Six months ended February 28, 2018 (Unaudited) | Year ended August 31, 2017 | Six months ended February 28, 2018 (Unaudited) | Year ended August 31, 2017 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS |
| |||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income | $ | 12,514 | $ | 57,460 | $ | 8,174,480 | $ | 31,186,404 | ||||||||
Net realized loss | (47,645 | ) | (30,787 | ) | (26,431,135 | ) | (92,333,480 | ) | ||||||||
Net change in unrealized appreciation/depreciation | 146,660 | 492,527 | 73,501,251 | 263,915,310 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase in net assets resulting from operations | 111,529 | 519,200 | 55,244,596 | 202,768,234 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
From net investment income | (12,742 | ) | (57,460 | ) | (8,104,932 | ) | (31,186,441 | ) | ||||||||
Return of capital | — | (118 | ) | — | (82,277 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions to shareholders | (12,742 | ) | (57,578 | ) | (8,104,932 | ) | (31,268,718 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Proceeds from shares sold | — | — | 690,208,108 | 924,170,392 | ||||||||||||
Cost of shares redeemed | — | — | (509,893,676 | ) | (649,402,041 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase in net assets from capital | — | — | 180,314,432 | 274,768,351 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
INCREASE IN NET ASSETS | 98,787 | 461,622 | 227,454,096 | 446,267,867 | ||||||||||||
NET ASSETS | ||||||||||||||||
Beginning of period | 2,767,756 | 2,306,134 | 1,791,673,135 | 1,345,405,268 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 2,866,543 | $ | 2,767,756 | $ | 2,019,127,231 | $ | 1,791,673,135 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed (distributions in excess of) net investment income included in net assets at end of period | $ | (228 | ) | $ | — | $ | 69,548 | $ | — | |||||||
|
|
|
|
|
|
|
| |||||||||
SHARES ISSUED AND REDEEMED | ||||||||||||||||
Shares sold | — | — | 22,800,000 | 32,400,000 | ||||||||||||
Shares redeemed | — | — | (16,900,000 | ) | (24,650,000 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase in shares outstanding | — | — | 5,900,000 | 7,750,000 | ||||||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
30 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Changes in Net Assets (Continued)
iSHARES® TRUST
iShares Currency Hedged MSCI Germany ETF | iShares Currency Hedged MSCI Italy ETF | |||||||||||||||
Six months ended February 28, 2018 | Year ended August 31, 2017 | Six months ended February 28, 2018 | Year ended August 31, 2017 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS |
| |||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income | $ | 1,552,725 | $ | 17,283,579 | $ | 23,752 | $ | 203,496 | ||||||||
Net realized gain (loss) | (7,673,071 | ) | (53,567,154 | ) | 173,402 | (1,698,455 | ) | |||||||||
Net change in unrealized appreciation/depreciation | 38,417,760 | 92,607,185 | 20,467 | 2,991,894 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase in net assets resulting from operations | 32,297,414 | 56,323,610 | 217,621 | 1,496,935 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
From net investment income | (1,551,933 | ) | (17,358,630 | ) | (28,389 | ) | (203,490 | ) | ||||||||
From net realized gain | — | — | — | (897,138 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions to shareholders | (1,551,933 | ) | (17,358,630 | ) | (28,389 | ) | (1,100,628 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Proceeds from shares sold | 64,244,202 | 596,656,116 | — | 11,028,320 | ||||||||||||
Cost of shares redeemed | (261,645,855 | ) | (337,270,325 | ) | (1,732,566 | ) | (12,560,613 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets from capital | (197,401,653 | ) | 259,385,791 | (1,732,566 | ) | (1,532,293 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
INCREASE (DECREASE) IN NET ASSETS | (166,656,172 | ) | 298,350,771 | (1,543,334 | ) | (1,135,986 | ) | |||||||||
NET ASSETS | ||||||||||||||||
Beginning of period | 791,051,390 | 492,700,619 | 5,885,106 | 7,021,092 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 624,395,218 | $ | 791,051,390 | $ | 4,341,772 | $ | 5,885,106 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed (distributions in excess of) net investment income included in net assets at end of period | $ | 792 | $ | — | $ | (4,631 | ) | $ | 6 | |||||||
|
|
|
|
|
|
|
| |||||||||
SHARES ISSUED AND REDEEMED | ||||||||||||||||
Shares sold | 2,250,000 | 21,800,000 | — | 700,000 | ||||||||||||
Shares redeemed | (9,350,000 | ) | (12,800,000 | ) | (100,000 | ) | (750,000 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in shares outstanding | (7,100,000 | ) | 9,000,000 | (100,000 | ) | (50,000 | ) | |||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
FINANCIAL STATEMENTS | 31 |
Table of Contents
Statements of Changes in Net Assets (Continued)
iSHARES® TRUST
iShares Currency Hedged MSCI Spain ETF | iShares Currency Hedged MSCI Switzerland ETF | |||||||||||||||
Six months ended February 28, 2018 | Year ended August 31, 2017 | Six months ended February 28, 2018 | Year ended August 31, 2017 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income (loss) | $ | 613,418 | $ | 1,864,715 | $ | (311 | ) | $ | 115,364 | |||||||
Net realized gain (loss) | 5,296,266 | (5,047,407 | ) | 58,971 | (5,496 | ) | ||||||||||
Net change in unrealized appreciation/depreciation | (7,096,614 | ) | 12,642,018 | 82,138 | 352,263 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | (1,186,930 | ) | 9,459,326 | 140,798 | 462,131 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
From net investment income | (614,347 | ) | (1,870,492 | ) | — | (115,364 | ) | |||||||||
From net realized gain | — | — | (165,021 | ) | (34,566 | ) | ||||||||||
Return of capital | — | — | — | (89 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions to shareholders | (614,347 | ) | (1,870,492 | ) | (165,021 | ) | (150,019 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Proceeds from shares sold | 23,945,427 | 45,251,626 | — | 3,890,879 | ||||||||||||
Cost of shares redeemed | (38,425,986 | ) | (15,226,656 | ) | (1,371,401 | ) | (2,321,374 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets from capital | (14,480,559 | ) | 30,024,970 | (1,371,401 | ) | 1,569,505 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
INCREASE (DECREASE) IN NET ASSETS | (16,281,836 | ) | 37,613,804 | (1,395,624 | ) | 1,881,617 | ||||||||||
NET ASSETS | ||||||||||||||||
Beginning of period | 53,591,534 | 15,977,730 | 6,558,251 | 4,676,634 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 37,309,698 | $ | 53,591,534 | $ | 5,162,627 | $ | 6,558,251 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed (distributions in excess of) net investment income included in net assets at end of period | $ | 86 | $ | 1,015 | $ | (311 | ) | $ | — | |||||||
|
|
|
|
|
|
|
| |||||||||
SHARES ISSUED AND REDEEMED | ||||||||||||||||
Shares sold | 1,050,000 | 2,250,000 | — | 150,000 | ||||||||||||
Shares redeemed | (1,700,000 | ) | (750,000 | ) | (50,000 | ) | (100,000 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in shares outstanding | (650,000 | ) | 1,500,000 | (50,000 | ) | 50,000 | ||||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
32 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
iSHARES® TRUST
(For a share outstanding throughout each period)
iShares Adaptive Currency Hedged MSCI Eurozone ETF
Six months ended Feb. 28, 2018 (Unaudited) | Year ended Aug. 31, 2017 | Period from to | ||||||||||
Net asset value, beginning of period | $ | 27.68 | $ | 23.06 | $ | 23.86 | ||||||
|
|
|
|
|
| |||||||
Income from investment operations: | ||||||||||||
Net investment incomeb | 0.13 | 0.57 | 0.56 | |||||||||
Net realized and unrealized gain (loss)c | 0.99 | 4.63 | (0.80 | ) | ||||||||
|
|
|
|
|
| |||||||
Total from investment operations | 1.12 | 5.20 | (0.24 | ) | ||||||||
|
|
|
|
|
| |||||||
Less distributions from: | ||||||||||||
Net investment income | (0.13 | ) | (0.58 | ) | (0.56 | ) | ||||||
Return of capital | — | (0.00 | )d | (0.00 | )d | |||||||
|
|
|
|
|
| |||||||
Total distributions | (0.13 | ) | (0.58 | ) | (0.56 | ) | ||||||
|
|
|
|
|
| |||||||
Net asset value, end of period | $ | 28.67 | $ | 27.68 | $ | 23.06 | ||||||
|
|
|
|
|
| |||||||
Total return | 3.96 | %e | 22.75 | % | (0.75 | )%e | ||||||
|
|
|
|
|
| |||||||
Ratios/Supplemental data: | ||||||||||||
Net assets, end of period (000s) | $ | 2,867 | $ | 2,768 | $ | 2,306 | ||||||
Ratio of expenses to average net assetsf,g | 0.03 | % | 0.03 | % | 0.03 | % | ||||||
Ratio of expenses to average net assets prior to waived feesf,g | 0.62 | % | 0.62 | % | 0.62 | % | ||||||
Ratio of net investment income to average net assetsf | 0.87 | % | 2.28 | % | 3.79 | % | ||||||
Portfolio turnover rateh,i | 3 | %e | 6 | % | 4 | %e |
a | Commencement of operations. |
b | Based on average shares outstanding throughout each period. |
c | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
d | Rounds to less than $0.01. |
e | Not annualized. |
f | Annualized for periods of less than one year. |
g | The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying fund in which the Fund is invested. This ratio does not include these indirect fees and expenses. |
h | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
i | Portfolio turnover rates exclude the portfolio activity of the underlying fund in which the Fund is invested. See page 80 for the portfolio turnover rates of the underlying fund. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 33 |
Table of Contents
Financial Highlights (Continued)
iSHARES® TRUST
(For a share outstanding throughout each period)
iShares Currency Hedged MSCI Eurozone ETF |
Six months ended Feb. 28, 2018 (Unaudited) | Year ended Aug. 31, 2017 | Year ended Aug. 31, 2016 | Year ended Aug. 31, 2015 | Period from to | ||||||||||||||||
Net asset value, beginning of period | $ | 28.83 | $ | 24.73 | $ | 25.90 | $ | 24.87 | $ | 25.14 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Income from investment operations: | ||||||||||||||||||||
Net investment income (loss)b | 0.13 | 0.64 | 0.60 | 1.17 | (0.00 | )c | ||||||||||||||
Net realized and unrealized gain (loss)d | 0.84 | 4.07 | (0.93 | ) | 0.65 | (0.27 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total from investment operations | 0.97 | 4.71 | (0.33 | ) | 1.82 | (0.27 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | (0.13 | ) | (0.61 | ) | (0.71 | ) | (0.63 | ) | — | |||||||||||
Net realized gain | — | — | (0.13 | ) | (0.16 | ) | — | |||||||||||||
Return of capital | — | (0.00 | )c | (0.00 | )c | (0.00 | )c | — | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total distributions | (0.13 | ) | (0.61 | ) | (0.84 | ) | (0.79 | ) | — | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net asset value, end of period | $ | 29.67 | $ | 28.83 | $ | 24.73 | $ | 25.90 | $ | 24.87 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total return | 3.35 | %e | 19.13 | % | (1.02 | )% | 7.27 | % | (1.11 | )%e | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||
Net assets, end of period (000s) | $ | 2,019,127 | $ | 1,791,673 | $ | 1,345,405 | $ | 1,562,767 | $ | 3,730 | ||||||||||
Ratio of expenses to average net assetsf,g | 0.03 | % | 0.03 | % | 0.03 | % | 0.03 | % | 0.04 | % | ||||||||||
Ratio of expenses to average net assets prior to waived feesf,g | 0.62 | % | 0.62 | % | 0.62 | % | 0.62 | % | 0.62 | % | ||||||||||
Ratio of net investment income (loss) to average net assetsf | 0.87 | % | 2.32 | % | 2.42 | % | 4.15 | % | (0.04 | )% | ||||||||||
Portfolio turnover rateh,i | 5 | %e | 9 | % | 12 | % | 21 | % | 0 | %e |
a | Commencement of operations. |
b | Based on average shares outstanding throughout each period. |
c | Rounds to less than $0.01. |
d | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
e | Not annualized. |
f | Annualized for periods of less than one year. |
g | The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying fund in which the Fund is invested. This ratio does not include these indirect fees and expenses. |
h | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
i | Portfolio turnover rates exclude the portfolio activity of the underlying fund in which the Fund is invested. See page 80 for the portfolio turnover rates of the underlying fund. |
See notes to financial statements.
34 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Financial Highlights (Continued)
iSHARES® TRUST
(For a share outstanding throughout each period)
iShares Currency Hedged MSCI Germany ETF | ||||||||||||||||||||
Six months ended Feb. 28, 2018 (Unaudited) | Year ended Aug. 31, 2017 | Year ended Aug. 31, 2016 | Year ended Aug. 31, 2015 | Period from to | ||||||||||||||||
Net asset value, beginning of period | $ | 26.82 | $ | 24.03 | $ | 24.01 | $ | 23.63 | $ | 23.68 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Income from investment operations: | ||||||||||||||||||||
Net investment incomeb | 0.07 | 0.74 | 0.31 | 0.99 | 1.04 | |||||||||||||||
Net realized and unrealized gain (loss)c | 1.05 | 2.62 | 0.46 | 0.68 | (0.59 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total from investment operations | 1.12 | 3.36 | 0.77 | 1.67 | 0.45 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | (0.07 | ) | (0.57 | ) | (0.54 | ) | (0.46 | ) | (0.50 | ) | ||||||||||
Net realized gain | — | — | (0.21 | ) | (0.83 | ) | (0.00 | )d | ||||||||||||
Return of capital | — | — | — | (0.00 | )d | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total distributions | (0.07 | ) | (0.57 | ) | (0.75 | ) | (1.29 | ) | (0.50 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net asset value, end of period | $ | 27.87 | $ | 26.82 | $ | 24.03 | $ | 24.01 | $ | 23.63 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total return | 4.19 | %e | 13.88 | % | 3.50 | % | 7.00 | % | 1.79 | %e | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||
Net assets, end of period (000s) | $ | 624,395 | $ | 791,051 | $ | 492,701 | $ | 1,746,987 | $ | 51,995 | ||||||||||
Ratio of expenses to average net assetsf,g | 0.06 | % | 0.05 | % | 0.05 | % | 0.05 | % | 0.06 | % | ||||||||||
Ratio of expenses to average net assets prior to waived feesf,g | 0.53 | % | 0.53 | % | 0.53 | % | 0.53 | % | 0.53 | % | ||||||||||
Ratio of net investment income to average net assetsg | 0.46 | % | 2.75 | % | 1.33 | % | 3.69 | % | 7.36 | % | ||||||||||
Portfolio turnover rateh,i | 4 | %e | 9 | % | 11 | % | 21 | % | 4 | %e |
a | Commencement of operations. |
b | Based on average shares outstanding throughout each period. |
c | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
d | Rounds to less than $0.01. |
e | Not annualized. |
f | The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying fund in which the Fund is invested. This ratio does not include these indirect fees and expenses. |
g | Annualized for periods of less than one year. |
h | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
i | Portfolio turnover rates exclude the portfolio activity of the underlying fund in which the Fund is invested. See page 81 for the portfolio turnover rates of the underlying fund. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 35 |
Table of Contents
Financial Highlights (Continued)
iSHARES® TRUST
(For a share outstanding throughout each period)
iShares Currency Hedged MSCI Italy ETF | ||||||||||||||||
Six months ended Feb. 28, 2018 (Unaudited) | Year ended Aug. 31, 2017 | Year ended Aug. 31, 2016 | Period from to | |||||||||||||
Net asset value, beginning of period | $ | 16.81 | $ | 17.55 | $ | 23.52 | $ | 23.65 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Income from investment operations: | ||||||||||||||||
Net investment income (loss)b | 0.08 | 0.51 | 0.41 | (0.00 | )c | |||||||||||
Net realized and unrealized gain (loss)d | 0.59 | 3.71 | (4.93 | ) | (0.13 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total from investment operations | 0.67 | 4.22 | (4.52 | ) | (0.13 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Less distributions from: | ||||||||||||||||
Net investment income | (0.11 | ) | (0.48 | ) | (0.70 | ) | — | |||||||||
Net realized gain | — | (4.48 | ) | (0.75 | ) | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions | (0.11 | ) | (4.96 | ) | (1.45 | ) | — | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net asset value, end of period | $ | 17.37 | $ | 16.81 | $ | 17.55 | $ | 23.52 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total return | 4.02 | %e | 31.21 | % | (19.68 | )% | (0.55 | )%e | ||||||||
|
|
|
|
|
|
|
| |||||||||
Ratios/Supplemental data: | ||||||||||||||||
Net assets, end of period (000s) | $ | 4,342 | $ | 5,885 | $ | 7,021 | $ | 85,845 | ||||||||
Ratio of expenses to average net assetsf,g | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | %h | ||||||||
Ratio of expenses to average net assets prior to waived feesf,g | 0.62 | % | 0.62 | % | 0.62 | % | 0.62 | % | ||||||||
Ratio of net investment income (loss) to average net assetsf | 0.94 | % | 3.15 | % | 1.90 | % | (0.00 | )%h | ||||||||
Portfolio turnover ratei,j | 5 | %e | 12 | % | 12 | % | 0 | %e,k |
a | Commencement of operations. |
b | Based on average shares outstanding throughout each period. |
c | Rounds to less than $0.01. |
d | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
e | Not annualized. |
f | Annualized for periods of less than one year. |
g | The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying fund in which the Fund is invested. This ratio does not include these indirect fees and expenses. |
h | Rounds to less than 0.01%. |
i | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
j | Portfolio turnover rates exclude the portfolio activity of the underlying fund in which the Fund is invested. See page 82 for the portfolio turnover rates of the underlying fund. |
k | Rounds to less than 1%. |
See notes to financial statements.
36 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Financial Highlights (Continued)
iSHARES® TRUST
(For a share outstanding throughout each period)
iShares Currency Hedged MSCI Spain ETF | ||||||||||||||||
Six months ended Feb. 28, 2018 (Unaudited) | Year ended Aug. 31, 2017 | Year ended Aug. 31, 2016 | Period from to | |||||||||||||
Net asset value, beginning of period | $ | 22.80 | $ | 18.80 | $ | 22.73 | $ | 23.77 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Income from investment operations: | ||||||||||||||||
Net investment income (loss)b | 0.39 | 0.94 | 0.80 | (0.00 | )c | |||||||||||
Net realized and unrealized gain (loss)d | (0.86 | ) | 3.81 | (3.61 | ) | (1.04 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Total from investment operations | (0.47 | ) | 4.75 | (2.81 | ) | (1.04 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Less distributions from: | ||||||||||||||||
Net investment income | (0.38 | ) | (0.75 | ) | (0.81 | ) | — | |||||||||
Net realized gain | — | — | (0.31 | ) | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions | (0.38 | ) | (0.75 | ) | (1.12 | ) | — | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net asset value, end of period | $ | 21.95 | $ | 22.80 | $ | 18.80 | $ | 22.73 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total return | (2.07 | )%e | 25.70 | % | (12.51 | )% | (4.33 | )%e | ||||||||
|
|
|
|
|
|
|
| |||||||||
Ratios/Supplemental data: | ||||||||||||||||
Net assets, end of period (000s) | $ | 37,310 | $ | 53,592 | $ | 15,978 | $ | 56,825 | ||||||||
Ratio of expenses to average net assetsf,g | 0.03 | % | 0.03 | % | 0.03 | % | 0.03 | % | ||||||||
Ratio of expenses to average net assets prior to waived feesf,g | 0.62 | % | 0.62 | % | 0.62 | % | 0.62 | % | ||||||||
Ratio of net investment income (loss) to average net assetsf | 3.48 | % | 4.29 | % | 4.02 | % | (0.03 | )% | ||||||||
Portfolio turnover rateh,i | 6 | %e | 9 | % | 15 | % | 0 | %e,j |
a | Commencement of operations. |
b | Based on average shares outstanding throughout each period. |
c | Rounds to less than $0.01. |
d | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
e | Not annualized. |
f | Annualized for periods of less than one year. |
g | The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying fund in which the Fund is invested. This ratio does not include these indirect fees and expenses. |
h | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
i | Portfolio turnover rates exclude the portfolio activity of the underlying fund in which the Fund is invested. See page 83 for the portfolio turnover rates of the underlying fund. |
j | Rounds to less than 1%. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 37 |
Table of Contents
Financial Highlights (Continued)
iSHARES® TRUST
(For a share outstanding throughout each period)
iShares Currency Hedged MSCI Switzerland ETF |
Six months ended Feb. 28, 2018 (Unaudited) | Year ended Aug. 31, 2017 | Year ended Aug. 31, 2016 | Period from to | |||||||||||||
Net asset value, beginning of period | $ | 26.23 | $ | 23.38 | $ | 24.67 | $ | 24.64 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Income from investment operations: | ||||||||||||||||
Net investment income (loss)b | 0.00 | c | 0.66 | 0.41 | (0.00 | )c | ||||||||||
Net realized and unrealized gain (loss)d | 0.41 | 3.00 | (0.27 | ) | 0.03 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total from investment operations | 0.41 | 3.66 | 0.14 | 0.03 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Less distributions from: | ||||||||||||||||
Net investment income | — | (0.58 | ) | (0.61 | ) | — | ||||||||||
Net realized gain | (0.83 | ) | (0.23 | ) | (0.82 | ) | — | |||||||||
Return of capital | — | (0.00 | )c | — | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions | (0.83 | ) | (0.81 | ) | (1.43 | ) | — | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net asset value, end of period | $ | 25.81 | $ | 26.23 | $ | 23.38 | $ | 24.67 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total return | 1.44 | %e | 15.88 | % | 0.63 | % | 0.12 | %e | ||||||||
|
|
|
|
|
|
|
| |||||||||
Ratios/Supplemental data: | ||||||||||||||||
Net assets, end of period (000s) | $ | 5,163 | $ | 6,558 | $ | 4,677 | $ | 3,701 | ||||||||
Ratio of expenses to average net assetsf,g | 0.03 | % | 0.03 | % | 0.03 | % | 0.04 | % | ||||||||
Ratio of expenses to average net assets prior to waived feesf,g | 0.62 | % | 0.62 | % | 0.62 | % | 0.62 | % | ||||||||
Ratio of net investment income (loss) to average net assetsf | (0.01 | )% | 2.65 | % | 1.72 | % | (0.04 | )% | ||||||||
Portfolio turnover rateh,i | 5 | %e | 11 | % | 19 | % | 1 | %e |
a | Commencement of operations. |
b | Based on average shares outstanding throughout each period. |
c | Rounds to less than $0.01. |
d | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
e | Not annualized. |
f | Annualized for periods of less than one year. |
g | The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying fund in which the Fund is invested. This ratio does not include these indirect fees and expenses. |
h | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
i | Portfolio turnover rates exclude the portfolio activity of the underlying fund in which the Fund is invested. See page 84 for the portfolio turnover rates of the underlying fund. |
See notes to financial statements.
38 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited)
iSHARES® TRUST
iShares Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust was established as a Delaware statutory trust pursuant to an Agreement and Declaration of Trust dated December 16, 1999.
These financial statements relate only to the following funds (each, a “Fund,” and collectively, the “Funds”):
iShares ETF | Diversification Classification | |
Adaptive Currency Hedged MSCI Eurozone | Non-diversified | |
Currency Hedged MSCI Eurozone | Diversified | |
Currency Hedged MSCI Germany | Diversified | |
Currency Hedged MSCI Italy | Non-diversified | |
Currency Hedged MSCI Spain | Non-diversified | |
Currency Hedged MSCI Switzerland | Non-diversified |
The investment objective of each Fund is to seek investment results that correspond generally to the price and yield performance, before fees and expenses, of its underlying index. The investment adviser uses a “passive” or index approach to try to achieve each Fund’s investment objective. Currently each Fund seeks to achieve its investment objective by investing a substantial portion of its assets in an exchange-traded fund of iShares, Inc. (an “underlying fund”), an affiliate of the Funds. The financial statements and schedules of investments for the underlying funds can be found elsewhere in this report and should be read in conjunction with the Funds’ financial statements.
Pursuant to the Trust’s organizational documents, the Funds’ officers and trustees are indemnified against certain liabilities that may arise out of the performance of their duties to the Funds. Additionally, in the normal course of business, the Funds enter into contracts with service providers that contain general indemnification clauses. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred.
1. | SIGNIFICANT ACCOUNTING POLICIES |
The following significant accounting policies are consistently followed by each Fund in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies.
SECURITY VALUATION
Each Fund’s investments are valued at fair value each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date should the reporting period end on a day that the Fund’s listing exchange is not open. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) provides oversight of the valuation of investments for the Funds. The investments of each Fund are valued pursuant
NOTESTO FINANCIAL STATEMENTS | 39 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
to policies and procedures developed by the Global Valuation Committee and approved by the Board of Trustees of the Trust (the “Board”).
• | Exchange-traded funds and closed-end funds traded on a recognized securities exchange are valued at that day’s last reported trade price or the official closing price, as applicable, on the exchange where the fund is primarily traded. Funds traded on a recognized exchange for which there were no sales on that day are valued at the last traded price. |
• | Open-end U.S. mutual funds (including money market funds) are valued at that day’s published net asset value (“NAV”). |
• | Forward currency contracts are valued based on that day’s prevailing forward exchange rate for the underlying currencies. Interpolated forward exchange rates are used for contracts with interim settlement dates for which quotations are not available. |
In the event that application of these methods of valuation results in a price for an investment which is deemed not to be representative of the fair value of such investment or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board. The fair valuation approaches that may be utilized by the Global Valuation Committee to determine fair value include market approach, income approach and the cost approach. The valuation techniques used under these approaches take into consideration inputs that include but are not limited to i attributes specific to the investment; (ii) the principal market for the investment; (iii) the customary participants in the principal market for the investment; (iv) data assumptions by market participants for the investment, if reasonably available; v quoted prices for similar investments in active markets; and (vi) other inputs, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates. Valuations based on such inputs are reported to the Board on a quarterly basis.
The Global Valuation Committee employs various methods for calibrating valuation approaches for investments where an active market does not exist, including regular due diligence of the Trust’s pricing vendors, a regular review of key inputs and assumptions, transactional back-testing or disposition analysis to compare unrealized gains and losses to realized gains and losses, reviews of missing or stale prices, reviews of large movements in market values, and reviews of market related activity.
Fair value pricing could result in a difference between the prices used to calculate a Fund’s NAV and the prices used by the Fund’s underlying index, which in turn could result in a difference between the Fund’s performance and the performance of the Fund’s underlying index.
Various inputs are used in determining the fair value of financial instruments. Inputs may be based on independent market data (“observable inputs”) or they may be internally developed (“unobservable inputs”). These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:
• | Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities; |
• | Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability (such as exchange rates, financing terms, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and |
• | Level 3 — Unobservable inputs for the asset or liability based on the best information available in the circumstances, to the extent observable inputs are not available, including the Global Valuation Committee’s assumptions used in determining the fair value of investments. |
40 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgement exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value hierarchy for each Fund’s investments is included in its schedule of investments.
Changes in valuation techniques may result in transfers in or out of an assigned level within the fair value hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of values determined for financial instruments are based on the pricing transparency of the financial instruments and are not necessarily an indication of the risks associated with investing in those securities.
SECURITY TRANSACTIONS AND INCOME RECOGNITION
Security transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recognized on the ex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities as of February 28, 2018 are reflected in tax reclaims receivable. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be re-designated as a return of capital or capital gain. Non-cash dividends, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Distributions received by the Funds may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. Interest income is accrued daily.
FOREIGN CURRENCY TRANSLATION
The accounting records of the Funds are maintained in U.S. dollars. Foreign currencies, as well as investment securities and other assets and liabilities denominated in foreign currencies, are translated into U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of securities, income receipts and expense payments are translated into U.S. dollars on the respective dates of such transactions.
Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of securities. Such fluctuations are reflected by the Funds as a component of realized and unrealized gains and losses from investments for financial reporting purposes. Each Fund reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes. However, the Funds have elected to treat realized gains (losses) from certain foreign currency contracts as capital gain (loss) for U.S. federal income tax purposes.
FOREIGN TAXES
The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Funds invest. These foreign taxes, if any, are paid by the Funds and are reflected in their statements of operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of February 28, 2018, if any, are disclosed in the Funds’ statements of assets and liabilities.
NOTESTO FINANCIAL STATEMENTS | 41 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
DISTRIBUTIONS TO SHAREHOLDERS
Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds.
LOANS OF PORTFOLIO SECURITIES
Each Fund may lend its investment securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by an approved bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Funds. Any additional required collateral is delivered to the Funds and any excess collateral is returned by the Funds on the next business day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.
Cash received as collateral for securities on loan may be reinvested in certain short-term instruments either directly on behalf of a fund or through one or more joint accounts or money market funds, including those managed by BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, or its affiliates. As of February 28, 2018, any securities on loan were collateralized by cash and/or U.S. government obligations. Cash collateral received was invested in money market funds managed by BFA and is disclosed in the schedules of investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan for each Fund are also disclosed in its schedule of investments. The total value of any securities on loan as of February 28, 2018 and the total value of the related cash collateral are disclosed in the statements of assets and liabilities. Income earned by the Funds from securities lending is disclosed in the statements of operations.
The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Funds benefit from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of securities loaned if the collateral received does not cover the value of the securities loaned in the event of borrower default. Each Fund could incur a loss if the value of an investment purchased with cash collateral falls below the value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received.
Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (“MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, a Fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. The value of the collateral is typically greater than that of the market value of the securities loaned, leaving the lender with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, the borrower can resell or re-pledge the loaned securities, and a Fund can reinvest cash collateral, or, upon an event of default, resell or re-pledge the collateral.
42 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
2. | INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES |
Pursuant to an Investment Advisory Agreement with the Trust, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except i interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and v litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent trustees).
For its investment advisory services to each of the iShares Adaptive Currency Hedged MSCI Eurozone ETF and the iShares Currency Hedged Eurozone ETF, BFA is entitled to an annual investment advisory fee of 0.62%, accrued daily and paid monthly by the Funds, based on the average daily net assets of each Fund. In addition, each Fund may incur its pro rata share of fees and expenses attributable to its investments in other investment companies (“acquired fund fees and expenses”). The total of the investment advisory fee and acquired fund fees and expenses are a fund’s total annual operating expenses. BFA has contractually agreed to waive a portion of its investment advisory fee for each Fund through December 31, 2020 so that each Fund’s total annual operating expenses after fee waiver is equal to the acquired fund fees and expenses attributable to each Fund’s investment in the iShares MSCI Eurozone ETF (“EZU”), after taking into account any fee waivers by EZU, plus 0.03%.
For its investment advisory services to the iShares Currency Hedged MSCI Germany ETF, BFA is entitled to an annual investment advisory fee of 0.53%, accrued daily and paid monthly by the Fund, based on the average daily net assets of the Fund. In addition, the Fund may incur acquired fund fees and expenses. BFA has contractually agreed to waive a portion of its investment advisory fee for the Fund through December 31, 2020 in an amount equal to the acquired fund fees and expenses, if any, attributable to the Fund’s investments in other iShares funds.
For its investment advisory services to the iShares Currency Hedged MSCI Italy ETF, BFA is entitled to an annual investment advisory fee of 0.62%, accrued daily and paid monthly by the Fund, based on the average daily net assets of the Fund. In addition, the Fund may incur acquired fund fees and expenses. BFA has contractually agreed to waive a portion of its investment advisory fee for the Fund through December 31, 2020 so that the Fund’s total annual operating expenses after fee waiver is equal to the acquired fund fees and expenses attributable to the Fund’s investment in the iShares MSCI Italy ETF (“EWI”), after taking into account any fee waivers by EWI, plus 0.03%. BFA has also contractually agreed to an additional reduction in the investment advisory fee of 0.03% through December 31, 2020.
For its investment advisory services to the iShares Currency Hedged MSCI Spain ETF, BFA is entitled to an annual investment advisory fee of 0.62%, accrued daily and paid monthly by the Fund, based on the average daily net assets of the Fund. In addition, the Fund may incur acquired fund fees and expenses. BFA has contractually agreed to waive a portion of its investment advisory fee for the Fund through December 31, 2020 so that the Fund’s total annual operating expenses after fee waiver is equal to the acquired fund fees and expenses attributable to the Fund’s investment in the iShares MSCI Spain ETF (“EWP”), after taking into account any fee waivers by EWP, plus 0.03%.
For its investment advisory services to the iShares Currency Hedged MSCI Switzerland ETF, BFA is entitled to an annual investment advisory fee of 0.62%, accrued daily and paid monthly by the Fund, based on the average daily net assets of the Fund. In addition, the Fund may incur acquired fund fees and expenses. BFA has contractually agreed waive a portion of its investment advisory fee for the Fund through December 31, 2020 so that the Fund’s total annual operating expenses after fee waiver is equal to the acquired fund fees and expenses attributable to the Fund’s investment in the iShares MSCI Switzerland ETF (“EWL”), after taking into account any fee waivers by EWL, plus 0.03%.
The U.S. Securities and Exchange Commission has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. Each Fund is responsible for fees in
NOTESTO FINANCIAL STATEMENTS | 43 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
connection with the investment of cash collateral received for securities on loan in a money market fund managed by BFA, however, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04% (the “collateral investment fees”). Securities lending income is equal to the total of income earned from the reinvestment of cash collateral (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. The Funds retain a portion of securities lending income and remit the remaining portion to BTC as compensation for its services as securities lending agent.
Pursuant to a securities lending agreement, each Fund retains 80% of securities lending income and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees. In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in a given calendar year exceeds the aggregate securities lending income generated across the iShares ETF Complex in the calendar year 2013, each Fund, pursuant to a securities lending agreement, will retain for the remainder of that calendar year 85% of securities lending income and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
For the six months ended February 28, 2018, the total of securities lending agent services and collateral investment fees paid were as follows:
iShares ETF | Fees Paid to BTC | |||
Adaptive Currency Hedged MSCI Eurozone | $ | 80 | ||
Currency Hedged MSCI Italy | 21 | |||
Currency Hedged MSCI Spain | 784 | |||
Currency Hedged MSCI Switzerland | 179 |
BlackRock Investments, LLC, an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.
Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is included in “Dividends — affiliated” in the statements of operations.
It is possible that, from time to time, BlackRock and/or funds managed by BFA or an affiliate (collectively, “Affiliates”) may purchase and hold shares of a Fund. Affiliates reserve the right, subject to compliance with applicable law, to sell into the market or redeem in Creation Units through an authorized participant at any time some or all of the shares of the Fund acquired for their own accounts. A large sale or redemption of shares of the Fund by Affiliates could significantly reduce the asset size of a Fund, which might have an adverse effect on the Fund. As of February 28, 2018, the number of affiliated accounts that individually represent more than 10% ownership of a Fund’s total shares outstanding and the aggregate percentage of net assets represented by such holdings were as follows:
iShares ETF | Number of Affiliated | Aggregate Affiliated Ownership | ||||||
Adaptive Currency Hedged MSCI Eurozone | 1 | 29.00 | % |
44 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
The PNC Financial Services Group, Inc. is the largest stockholder of BlackRock and is considered to be an affiliate of the Funds for 1940 Act purposes.
Certain trustees and officers of the Trust are also officers of BTC and/or BFA.
3. | INVESTMENT PORTFOLIO TRANSACTIONS |
Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the six months ended February 28, 2018 were as follows:
iShares ETF | Purchases | Sales | ||||||
Adaptive Currency Hedged MSCI Eurozone | $ | 77,615 | $ | 116,509 | ||||
Currency Hedged MSCI Eurozone | 86,356,909 | 129,584,301 | ||||||
Currency Hedged MSCI Germany | 27,949,712 | 43,713,148 | ||||||
Currency Hedged MSCI Italy | 231,907 | 309,692 | ||||||
Currency Hedged MSCI Spain | 2,447,409 | 2,924,644 | ||||||
Currency Hedged MSCI Switzerland | 301,615 | 518,104 |
In-kind transactions (see Note 4) for the six months ended February 28, 2018 were as follows:
iShares ETF | In-kind Purchases | In-kind Sales | ||||||
Currency Hedged MSCI Eurozone | $ | 691,545,023 | $ | 509,817,916 | ||||
Currency Hedged MSCI Germany | 64,396,719 | 262,890,771 | ||||||
Currency Hedged MSCI Italy | — | 1,730,353 | ||||||
Currency Hedged MSCI Spain | 23,806,990 | 38,376,712 | ||||||
Currency Hedged MSCI Switzerland | — | 1,360,648 |
4. | CAPITAL SHARE TRANSACTIONS |
Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable. Transactions in capital shares for each Fund are disclosed in detail in the statements of changes in net assets.
The consideration for the purchase of Creation Units of a fund in the Trust generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Trust may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to State Street Bank and Trust Company, the Trust’s administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in “Proceeds from shares sold” in the statements of changes in net assets.
NOTESTO FINANCIAL STATEMENTS | 45 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
5. | FORWARD CURRENCY CONTRACTS |
Each Fund uses forward currency contracts to hedge the currency exposure of non-U.S. dollar-denominated securities held by the Fund or its underlying fund. A forward currency contract is an obligation to purchase or sell a currency against another currency at a specified future date at an agreed upon price and quantity. Forward currency contracts are traded over-the-counter (“OTC”) and not on an organized exchange.
The contract is marked-to-market daily and the change in market value is recorded as unrealized appreciation or depreciation. When the contract is closed, a realized gain or loss equal to the difference between the value at the time it was opened and the value at the time it was closed is recorded. Non-deliverable forward currency contracts (“NDFs”) are settled with the counterparty in cash without the delivery of foreign currency. Losses may arise if there are unfavorable movements in the value of a foreign currency relative to the U.S. dollar or if the counterparties do not meet the terms of the agreement. A fund’s use of forward currency contracts also involves the risks of imperfect correlation between the value of its currency positions and its other investments or the fund failing to close out its position due to an illiquid market.
The following table shows the value of forward currency contracts held as of February 28, 2018 and the related locations in the statements of assets and liabilities, presented by risk exposure category:
Assets | ||||||||||||
iShares Adaptive Currency Hedged MSCI Eurozone ETF | iShares Currency Hedged MSCI Eurozone ETF | iShares Currency Hedged MSCI Germany ETF | ||||||||||
Forward currency contracts: | ||||||||||||
Unrealized appreciation on forward currency contracts/Net assets consist of – net unrealized appreciation | $ | 36,773 | $ | 61,428,893 | $ | 19,627,948 | ||||||
|
|
|
|
|
| |||||||
iShares Currency Italy ETF | iShares Currency Hedged MSCI Spain ETF | iShares Currency Hedged MSCI Switzerland ETF | ||||||||||
Forward currency contracts: | ||||||||||||
Unrealized appreciation on forward currency contracts/Net assets consist of – net unrealized appreciation | $ | 116,658 | $ | 1,003,488 | $ | 109,781 | ||||||
|
|
|
|
|
| |||||||
46 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
Liabilities | ||||||||||||
iShares Adaptive Currency Hedged MSCI Eurozone ETF | iShares Currency Hedged MSCI Eurozone ETF | iShares Currency Hedged MSCI Germany ETF | ||||||||||
Forward currency contracts: | ||||||||||||
Unrealized depreciation on forward currency contracts/Net assets consist of – net unrealized appreciation | $ | 8,595 | $ | 18,565,100 | $ | 6,176,006 | ||||||
|
|
|
|
|
| |||||||
iShares Currency Italy ETF | iShares Currency Hedged MSCI Spain ETF | iShares Currency Hedged MSCI Switzerland ETF | ||||||||||
Forward currency contracts: | ||||||||||||
Unrealized depreciation on forward currency contracts/Net assets consist of – net unrealized appreciation | $ | 27,390 | $ | 235,673 | $ | 39,206 | ||||||
|
|
|
|
|
| |||||||
The following table shows the realized and unrealized gains (losses) on forward currency contracts held during the six months ended February 28, 2018 and the related locations in the statements of operations, presented by risk exposure category:
Net Realized Gain (Loss) | ||||||||||||
iShares Adaptive Currency Hedged MSCI Eurozone ETF | iShares Currency Hedged MSCI Eurozone ETF | iShares Currency Hedged MSCI Germany ETF | ||||||||||
Forward currency contracts | $ | (63,131 | ) | $ | (94,983,027 | ) | $ | (37,544,088 | ) | |||
|
|
|
|
|
| |||||||
iShares Currency Italy ETF | iShares Currency Spain ETF | iShares Currency Hedged MSCI Switzerland ETF | ||||||||||
Forward currency contracts | $ | (225,627 | ) | $ | (1,897,877 | ) | $ | (143,453 | ) | |||
|
|
|
|
|
| |||||||
Net Change in Unrealized Appreciation/Depreciation | ||||||||||||
iShares Adaptive Currency Hedged MSCI Eurozone ETF | iShares Currency Hedged MSCI Eurozone ETF | iShares Currency Hedged MSCI Germany ETF | ||||||||||
Forward currency contracts | $ | 38,631 | $ | 68,343,192 | $ | 25,273,503 | ||||||
|
|
|
|
|
| |||||||
iShares Currency Italy ETF | iShares Currency Spain ETF | iShares Currency Hedged MSCI Switzerland ETF | ||||||||||
Forward currency contracts | $ | 181,089 | $ | 1,560,585 | $ | 141,364 | ||||||
|
|
|
|
|
| |||||||
NOTESTO FINANCIAL STATEMENTS | 47 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
The following table shows the average quarter-end balances of outstanding forward currency contracts for the six months ended February 28, 2018:
iShares Adaptive Currency Hedged MSCI Eurozone ETF | iShares Currency Hedged MSCI Eurozone ETF | iShares Currency Hedged MSCI Germany ETF | ||||||||||
Average amounts purchased in U.S. dollars | $ | 1,988,267 | $ | 2,188,028,713 | $ | 831,485,894 | ||||||
Average amounts sold in U.S. dollars | $ | 4,113,554 | $ | 4,064,611,380 | $ | 1,527,113,134 | ||||||
iShares Currency Italy ETF | iShares Currency Hedged MSCI Spain ETF | iShares Currency Hedged MSCI Switzerland ETF | ||||||||||
Average amounts purchased in U.S. dollars | $ | 8,986,434 | $ | 67,312,677 | $ | 9,854,585 | ||||||
Average amounts sold in U.S. dollars | $ | 14,071,134 | $ | 104,570,396 | $ | 15,567,531 | ||||||
|
|
|
|
|
| |||||||
The Funds’ risk of loss from counterparty credit risk on OTC derivatives is generally limited to the aggregate unrealized gain netted against any collateral held by the Funds. In order to better define their contractual rights and to secure rights that will help the Funds to mitigate their counterparty risk, the Funds may enter into an International Swaps and Derivatives Association, Inc. master agreement (“ISDA Master Agreement”) or similar agreement with their derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between the Funds and a counterparty that governs OTC derivatives and foreign exchange contracts and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default including the bankruptcy or insolvency of the counterparty. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy or insolvency.
The collateral requirements under an ISDA Master Agreement are typically calculated by netting the mark-to-market amount for each transaction under such agreement, and comparing that amount to the value of any collateral currently pledged by the parties. Except for NDFs, the forward currency contracts held by the Funds generally do not require collateral. Cash collateral pledged to the counterparty, if any, is presented as “Cash pledged to broker for forward currency contracts” on the statement of assets and liabilities. Cash received as collateral from the counterparty may be reinvested in money market funds, including those managed by the Funds’ investment adviser, or its affiliates. Such collateral, if any, is presented in the statement of assets and liabilities as “Investments in securities – affiliated” and “Payable due to broker for collateral on forwards.” To the extent amounts due to the Funds from the counterparty are not fully collateralized, contractually or otherwise, the Funds bear the risk of loss from counterparty non-performance. The Funds attempt to mitigate counterparty risk by only entering into agreements with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties.
For financial reporting purposes, the Funds do not offset financial assets and financial liabilities that are subject to netting arrangements in the statements of assets and liabilities.
48 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
The following table presents the exposure of the open forward currency contracts that are subject to potential offset in the statements of assets and liabilities as of February 28, 2018:
Derivative Assets Subject to Offsetting | Derivatives for Offset | Cash Collateral Received a | Net Amount of Derivative Assets | |||||||||||||
iShares Adaptive Currency Hedged MSCI Eurozone ETF | ||||||||||||||||
Forward currency contracts | $ | 36,773 | $ | (8,595 | ) | $ | — | $ | 28,178 | |||||||
|
|
|
|
|
|
|
| |||||||||
iShares Currency Hedged MSCI Eurozone ETF | ||||||||||||||||
Forward currency contracts | $ | 61,428,893 | $ | (18,239,357 | ) | $ | (3,110,000 | ) | $ | 40,079,536 | ||||||
|
|
|
|
|
|
|
| |||||||||
iShares Currency Hedged MSCI Germany ETF | ||||||||||||||||
Forward currency contracts | $ | 19,627,948 | $ | (5,593,120 | ) | $ | (660,000 | ) | $ | 13,374,828 | ||||||
|
|
|
|
|
|
|
| |||||||||
iShares Currency Hedged MSCI Italy ETF | ||||||||||||||||
Forward currency contracts | $ | 116,658 | $ | (27,390 | ) | $ | — | $ | 89,268 | |||||||
|
|
|
|
|
|
|
| |||||||||
iShares Currency Hedged MSCI Spain ETF | ||||||||||||||||
Forward currency contracts | $ | 1,003,488 | $ | (235,673 | ) | $ | (460,000 | ) | $ | 307,815 | ||||||
|
|
|
|
|
|
|
| |||||||||
iShares Currency Hedged MSCI Switzerland ETF | ||||||||||||||||
Forward currency contracts | $ | 109,781 | $ | (39,206 | ) | $ | — | $ | 70,575 | |||||||
|
|
|
|
|
|
|
| |||||||||
Derivative Liabilities Subject to Offsetting | Derivatives Available for Offset | Cash Collateral Pledged a | Net Amount of Derivative Liabilities | |||||||||||||
iShares Adaptive Currency Hedged MSCI Eurozone ETF | ||||||||||||||||
Forward currency contracts | $ | 8,595 | $ | (8,595 | ) | $ | — | $ | — | |||||||
|
|
|
|
|
|
|
| |||||||||
iShares Currency Hedged MSCI Eurozone ETF | ||||||||||||||||
Forward currency contracts | $ | 18,565,100 | $ | (18,239,357 | ) | $ | — | $ | 325,743 | |||||||
|
|
|
|
|
|
|
| |||||||||
iShares Currency Hedged MSCI Germany ETF | ||||||||||||||||
Forward currency contracts | $ | 6,176,006 | $ | (5,593,120 | ) | $ | — | $ | 582,886 | |||||||
|
|
|
|
|
|
|
| |||||||||
iShares Currency Hedged MSCI Italy ETF | ||||||||||||||||
Forward currency contracts | $ | 27,390 | $ | (27,390 | ) | $ | — | $ | — | |||||||
|
|
|
|
|
|
|
| |||||||||
iShares Currency Hedged MSCI Spain ETF | ||||||||||||||||
Forward currency contracts | $ | 235,673 | $ | (235,673 | ) | $ | — | $ | — | |||||||
|
|
|
|
|
|
|
| |||||||||
iShares Currency Hedged MSCI Switzerland ETF | ||||||||||||||||
Forward currency contracts | $ | 39,206 | $ | (39,206 | ) | $ | — | $ | — | |||||||
|
|
|
|
|
|
|
| |||||||||
a | Excess of collateral received and/or pledged is not shown for financial reporting purposes. |
6. | PRINCIPAL RISKS |
In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of
NOTESTO FINANCIAL STATEMENTS | 49 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Each Fund’s prospectus provides details of the risks to which the Fund is subject.
BFA uses a “passive” or index approach to try to achieve each Fund’s investment objective following the securities included in its underlying index during upturns as well as downturns. BFA does not take steps to reduce market exposure or to lessen the effects of a declining market. Divergence from the underlying index and the composition of the portfolio is monitored by BFA.
MARKET RISK
Market risk arises mainly from uncertainty about future values of financial instruments influenced by price, currency and interest rate movements. It represents the potential loss a fund may suffer through holding market positions in the face of market movements. A fund is exposed to market risk by its investment in equity, fixed income and/or financial derivative instruments or by its investment in underlying funds. The fair value of securities held by a fund may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. The extent of a fund’s exposure to market risk is the market value of the investments held as shown in the fund’s schedule of investments.
A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its schedule of investments.
CREDIT RISK
Credit risk is the risk that an issuer or guarantor of debt instruments or the counterparty to a financial transaction, including derivatives contracts, repurchase agreements or loans of portfolio securities, is unable or unwilling to make timely interest and/or principal payments or to otherwise honor its obligations. BFA and its affiliates manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose a fund to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of a fund’s exposure to credit and counterparty risks with respect to those financial assets is approximated by their value recorded in its statement of assets and liabilities.
7. | INCOME TAX INFORMATION |
Each Fund is treated as an entity separate from the Trust’s other funds for federal income tax purposes. It is the policy of each Fund to qualify as a regulated investment company by complying with the provisions applicable to regulated investment companies, as defined under Subchapter M of the Internal Revenue Code of 1986, as amended, and to annually distribute substantially all of its ordinary income and any net capital gains (taking into account any capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income and excise taxes. Accordingly, no provision for federal income taxes is required.
For purposes of U.S. GAAP, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or NAV per share.
50 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
The tax character of current year distributions will be determined at the end of the current fiscal year.
As of August 31, 2017, the Funds’ fiscal year end, the following Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:
iShares ETF | Non- Expiring | |||
Adaptive Currency Hedged MSCI Eurozone | $ | 127,004 | ||
Currency Hedged MSCI Eurozone | 149,160,625 | |||
Currency Hedged MSCI Germany | 76,883,386 | |||
Currency Hedged MSCI Spain | 6,188,212 |
As of February 28, 2018, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives) for U.S. federal income tax purposes were as follows:
iShares ETF | Tax Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||
Adaptive Currency Hedged MSCI Eurozone | $ | 2,240,705 | $ | 653,636 | $ | (8,595 | ) | $ | 645,041 | |||||||
Currency Hedged MSCI Eurozone | 1,894,848,208 | 183,536,018 | (31,380,222 | ) | 152,155,796 | |||||||||||
Currency Hedged MSCI Germany | 581,210,106 | 61,431,304 | (9,686,773 | ) | 51,744,531 | |||||||||||
Currency Hedged MSCI Italy | 3,767,422 | 677,810 | (40,148 | ) | 637,662 | |||||||||||
Currency Hedged MSCI Spain | 36,496,187 | 2,286,237 | (456,922 | ) | 1,829,315 | |||||||||||
Currency Hedged MSCI Switzerland | 4,947,880 | 310,766 | (57,792 | ) | 252,974 |
Management has analyzed tax laws and regulations and their application to the Funds as of February 28, 2018, inclusive of the open tax return years, and does not believe there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.
8. | LEGAL PROCEEDINGS |
On June 16, 2016, investors (the “Plaintiffs”) in certain iShares funds (iShares Core S&P Small-Cap ETF, iShares Russell 1000 Growth ETF, iShares Core S&P 500 ETF, iShares Russell Mid-Cap Growth ETF, iShares Russell Mid-Cap ETF, iShares Russell Mid-Cap Value ETF, iShares Select Dividend ETF, iShares Morningstar Mid-Cap ETF, iShares Morningstar Large-Cap ETF, iShares U.S. Aerospace & Defense ETF and iShares U.S. Preferred Stock ETF) filed a putative class action lawsuit against iShares Trust, BlackRock, Inc. and certain of its advisory affiliates, and certain directors/trustees and officers of the Funds (collectively, “Defendants”) in California State Court. The lawsuit alleges the Defendants violated federal securities laws by failing to adequately disclose in the prospectuses issued by the funds noted above the risks of using stop-loss orders in the event of a ‘flash crash’, such as the one that occurred on May 6, 2010. On September 18, 2017, the court issued a Statement of Decision holding that the Plaintiffs lack standing to assert their claims. On October 11, 2017, the court entered final judgment dismissing all of the Plaintiffs’ claims with prejudice. Plaintiffs have appealed the court’s decision.
NOTESTO FINANCIAL STATEMENTS | 51 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
9. | SUBSEQUENT EVENTS |
Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or disclosure in the financial statements.
52 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Supplemental Information (Unaudited)
iSHARES® TRUST
Section 19(a) Notices
The amounts and sources of distributions reported are estimates and are provided pursuant to regulatory requirements and are not being provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon each Fund’s investment experience during the year and may be subject to changes based on the tax regulations. Shareholders will receive a Form 1099-DIV each calendar year that will inform them how to report these distributions for federal income tax purposes.
Total Cumulative Distributions for the Fiscal Year-to-Date | % Breakdown of the Total Cumulative Distributions for the Fiscal Year-to-Date | |||||||||||||||||||||||||||||||
iShares ETF | Net Investment Income | Net Realized Capital Gains | Return of Capital | Total Per Share | Net Investment Income | Net Realized Capital Gains | Return of Capital | Total Per Share | ||||||||||||||||||||||||
Adaptive Currency Hedged MSCI Eurozone | $ | 0.112100 | $ | — | $ | 0.015320 | $ | 0.127420 | 88 | % | — | % | 12 | % | 100 | % | ||||||||||||||||
Currency Hedged MSCI Eurozone | 0.111992 | — | 0.016048 | 0.128040 | 87 | — | 13 | 100 | ||||||||||||||||||||||||
Currency Hedged MSCI Germany | 0.026604 | — | 0.040725 | 0.067329 | 40 | — | 60 | 100 | ||||||||||||||||||||||||
Currency Hedged MSCI Spain | 0.337041 | — | 0.046926 | 0.383967 | 88 | — | 12 | 100 | ||||||||||||||||||||||||
Currency Hedged MSCI Switzerland | — | 0.825105 | — | 0.825105 | — | 100 | — | 100 |
SUPPLEMENTAL INFORMATION | 53 |
Table of Contents
Electronic Delivery
Shareholders can sign up for email notifications announcing that the shareholder report or prospectus has been posted on the iShares website at www.iShares.com. Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail.
To enroll in electronic delivery:
• | Go to www.icsdelivery.com. |
• | If your brokerage firm is not listed, electronic delivery may not be available. Please contact your broker-dealer or financial advisor. |
Householding
Householding is an option available to certain fund investors. Householding is a method of delivery, based on the preference of the individual investor, in which a single copy of certain shareholder documents can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.
Availability of Quarterly Schedule of Investments
The iShares Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The iShares Funds’ Forms N-Q are available on the SEC’s website and may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The iShares Funds also disclose their complete schedule of portfolio holdings on a daily basis on the iShares website.
Availability of Proxy Voting Policies and Proxy Voting Records
A description of the policies and procedures that the iShares Funds use to determine how to vote proxies relating to portfolio securities and information about how the iShares Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request (1) by calling toll-free 1-800-474-2737; (2) on the iShares website at www.iShares.com; and (3) on the SEC website at www.sec.gov.
54 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Additional Financial Information
February 28, 2018
iShares, Inc.
iShares MSCI Eurozone ETF | EZU | Cboe BZX
iShares MSCI Germany ETF | EWG | NYSE Arca
iShares MSCI Italy ETF | EWI | NYSE Arca
iShares MSCI Spain ETF | EWP | NYSE Arca
iShares MSCI Switzerland ETF | EWL | NYSE Arca
Table of Contents
Schedule of Investments (Unaudited)
February 28, 2018
Security | Shares | Value | ||||||
COMMON STOCKS — 97.84% |
| |||||||
AUSTRIA — 0.82% |
| |||||||
ANDRITZ AG | 239,087 | $ | 13,909,443 | |||||
Erste Group Bank AG | 975,173 | 49,846,507 | ||||||
OMV AG | 479,629 | 27,552,547 | ||||||
Raiffeisen Bank International AGa | 476,222 | 18,580,573 | ||||||
Voestalpine AG | 368,212 | 21,376,682 | ||||||
|
| |||||||
131,265,752 | ||||||||
BELGIUM — 3.40% | ||||||||
Ageas | 610,670 | 32,138,292 | ||||||
Anheuser-Busch InBev SA/NV | 2,472,397 | 263,792,466 | ||||||
Colruyt SA | 193,175 | 10,444,413 | ||||||
Groupe Bruxelles Lambert SA | 257,252 | 29,505,759 | ||||||
KBC Group NV | 811,332 | 76,491,558 | ||||||
Proximus SADP | 493,236 | 15,875,579 | ||||||
Solvay SA | 240,533 | 33,179,717 | ||||||
Telenet Group Holding NVa | 174,506 | 12,014,611 | ||||||
UCB SA | 410,095 | 34,051,749 | ||||||
Umicore SA | 679,812 | 38,571,270 | ||||||
|
| |||||||
546,065,414 | ||||||||
FINLAND — 3.11% | ||||||||
Elisa OYJ | 462,627 | 19,945,999 | ||||||
Fortum OYJ | 1,432,607 | 31,538,402 | ||||||
Kone OYJ Class B | 1,096,814 | 56,973,911 | ||||||
Metso OYJ | 368,505 | 11,851,926 | ||||||
Neste OYJ | 416,920 | 30,631,841 | ||||||
Nokia OYJ | 18,951,976 | 111,020,324 | ||||||
Nokian Renkaat OYJ | 377,731 | 17,400,632 | ||||||
Orion OYJ Class B | 340,393 | 11,126,301 | ||||||
Sampo OYJ Class A | 1,445,980 | 82,253,850 | ||||||
Stora Enso OYJ Class R | 1,797,114 | 31,946,229 | ||||||
UPM-Kymmene OYJ | 1,733,441 | 59,683,646 | ||||||
Wartsila OYJ Abp | 479,634 | 33,894,080 | ||||||
|
| |||||||
498,267,141 | ||||||||
FRANCE — 32.49% | ||||||||
Accor SA | 604,960 | 35,047,390 | ||||||
Aeroports de Paris | 97,525 | 19,745,105 | ||||||
Air Liquide SA | 1,383,815 | 174,093,546 | ||||||
Airbus SE | 1,886,414 | 226,257,311 | ||||||
Alstom SA | 502,503 | 21,236,224 | ||||||
Amundi SAb | 192,126 | 15,737,373 | ||||||
Arkema SA | 221,833 | 29,071,536 | ||||||
Atos SE | 308,845 | 40,870,102 |
Security | Shares | Value | ||||||
AXA SA | 6,285,420 | $ | 198,243,168 | |||||
BioMerieux | 130,757 | 10,079,000 | ||||||
BNP Paribas SA | 3,641,655 | 290,343,889 | ||||||
Bollore SA | 2,832,737 | 16,051,694 | ||||||
Bouygues SA | 694,631 | 35,294,646 | ||||||
Bureau Veritas SA | 867,961 | 22,770,681 | ||||||
Capgemini SE | 523,149 | 65,688,169 | ||||||
Carrefour SA | 1,883,163 | 43,524,374 | ||||||
Casino Guichard Perrachon SA | 180,685 | 9,833,023 | ||||||
Cie. de Saint-Gobain | 1,634,669 | 93,196,670 | ||||||
Cie. Generale des Etablissements Michelin SCA Class B | 556,961 | 86,067,028 | ||||||
CNP Assurances | 554,850 | 13,534,462 | ||||||
Credit Agricole SA | 3,691,132 | 63,634,230 | ||||||
Danone SA | 1,949,432 | 156,328,893 | ||||||
Dassault Aviation SA | 8,091 | 14,081,911 | ||||||
Dassault Systemes SE | 421,633 | 54,638,521 | ||||||
Edenred | 727,357 | 25,664,420 | ||||||
Eiffage SA | 239,684 | 26,046,667 | ||||||
Electricite de France SA | 1,867,117 | 24,377,750 | ||||||
Engie SA | 5,910,087 | 92,806,099 | ||||||
Essilor International Cie. Generale d’Optique SA | 673,080 | 88,536,478 | ||||||
Eurazeo SA | 139,134 | 13,312,561 | ||||||
Eurofins Scientific SE | 36,580 | 20,683,429 | ||||||
Eutelsat Communications SA | 568,775 | 13,319,169 | ||||||
Faurecia SA | 238,905 | 20,186,849 | ||||||
Fonciere Des Regions | 108,206 | 11,343,123 | ||||||
Gecina SA | 154,754 | 27,198,269 | ||||||
Getlink SE Registered | 1,527,347 | 19,680,794 | ||||||
Hermes International | 102,493 | 55,264,994 | ||||||
ICADE | 110,800 | 10,750,170 | ||||||
Iliad SA | 86,117 | 20,260,797 | ||||||
Imerys SA | 115,528 | 11,807,737 | ||||||
Ingenico Group SA | 191,839 | 16,734,002 | ||||||
Ipsen SA | 123,131 | 18,148,865 | ||||||
JCDecaux SA | 244,004 | 9,511,283 | ||||||
Kering SA | 245,697 | 116,269,816 | ||||||
Klepierre SA | 712,953 | 29,503,950 | ||||||
L’Oreal SA | 816,572 | 176,329,843 | ||||||
Lagardere SCA | 388,618 | 11,470,271 | ||||||
Legrand SA | 864,017 | 68,012,174 | ||||||
LVMH Moet Hennessy Louis Vuitton SE | 903,059 | 271,499,138 | ||||||
Natixis SA | 3,067,133 | 26,559,896 |
56 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EUROZONE ETF
February 28, 2018
Security | Shares | Value | ||||||
Orange SA | 6,452,065 | $ | 109,697,546 | |||||
Pernod Ricard SA | 689,808 | 113,578,833 | ||||||
Peugeot SA | 1,905,177 | 43,254,747 | ||||||
Publicis Groupe SA | 670,525 | 50,736,695 | ||||||
Remy Cointreau SA | 73,205 | 9,990,937 | ||||||
Renault SA | 623,384 | 68,032,594 | ||||||
Rexel SA | 988,206 | 17,446,225 | ||||||
Safran SA | 1,083,551 | 120,129,217 | ||||||
Sanofi | 3,683,049 | 292,116,882 | ||||||
Schneider Electric SE | 1,834,765 | 160,179,726 | ||||||
SCOR SE | 558,492 | 23,833,965 | ||||||
SEB SA | 73,789 | 15,110,461 | ||||||
SES SA | 1,187,609 | 19,018,384 | ||||||
Societe BIC SA | 93,106 | 9,782,917 | ||||||
Societe Generale SA | 2,488,302 | 143,002,548 | ||||||
Sodexo SA | 295,133 | 36,391,867 | ||||||
STMicroelectronics NV | 2,069,679 | 47,507,045 | ||||||
Suez | 1,200,384 | 16,580,355 | ||||||
Teleperformance | 182,572 | 26,075,130 | ||||||
Thales SA | 348,982 | 38,962,727 | ||||||
TOTAL SA | 7,784,515 | 445,951,394 | ||||||
Ubisoft Entertainment SAa | 200,302 | 16,612,294 | ||||||
Unibail-Rodamco SE | 323,049 | 75,550,819 | ||||||
Valeo SA | 778,739 | 50,775,743 | ||||||
Veolia Environnement SA | 1,552,869 | 37,822,331 | ||||||
Vinci SA | 1,637,265 | 162,387,185 | ||||||
Vivendi SA | 3,346,225 | 86,726,033 | ||||||
Wendel SA | 92,660 | 16,115,628 | ||||||
|
| |||||||
5,214,017,718 | ||||||||
GERMANY — 27.67% | ||||||||
1&1 Drillisch AG | 168,589 | 13,046,568 | ||||||
adidas AG | 610,290 | 135,916,578 | ||||||
Allianz SE Registered | 1,447,615 | 339,027,515 | ||||||
Axel Springer SE | 156,938 | 14,164,304 | ||||||
BASF SE | 2,979,459 | 314,005,189 | ||||||
Bayer AG Registered | 2,682,124 | 314,792,766 | ||||||
Bayerische Motoren Werke AG | 1,074,052 | 113,731,429 | ||||||
Beiersdorf AG | 325,569 | 35,784,886 | ||||||
Brenntag AG | 500,369 | 31,416,973 | ||||||
Commerzbank AGa | 3,454,194 | 53,664,041 | ||||||
Continental AG | 356,402 | 98,108,604 | ||||||
Covestro AGb | 524,909 | 59,756,785 | ||||||
Daimler AG Registered | 3,123,723 | 268,480,157 | ||||||
Deutsche Bank AG Registered | 6,709,477 | 108,018,466 | ||||||
Deutsche Boerse AG | 626,209 | 83,593,109 |
Security | Shares | Value | ||||||
Deutsche Lufthansa AG Registered | 767,351 | $ | 25,849,559 | |||||
Deutsche Post AG Registered | 3,145,081 | 144,383,264 | ||||||
Deutsche Telekom AG Registered | 10,815,863 | 174,920,257 | ||||||
Deutsche Wohnen SE Bearer | 1,153,845 | 47,777,416 | ||||||
E.ON SE | 7,145,316 | 72,855,631 | ||||||
Evonik Industries AG | 528,386 | 19,610,500 | ||||||
Fraport AG Frankfurt Airport Services Worldwide | 135,177 | 13,872,052 | ||||||
Fresenius Medical Care AG & Co. KGaA | 700,018 | 74,364,004 | ||||||
Fresenius SE & Co. KGaA | 1,348,165 | 110,331,869 | ||||||
GEA Group AG | 592,920 | 28,166,895 | ||||||
Hannover Rueck SE | 195,338 | 26,659,514 | ||||||
HeidelbergCement AG | 482,141 | 48,654,721 | ||||||
Henkel AG & Co. KGaA | 337,204 | 40,654,142 | ||||||
HOCHTIEF AG | 62,923 | 10,629,054 | ||||||
HUGO BOSS AG | 205,190 | 18,359,080 | ||||||
Infineon Technologies AG | 3,686,464 | 100,714,829 | ||||||
Innogy SEb | 452,116 | 18,092,206 | ||||||
K+S AG Registeredc | 621,986 | 17,409,997 | ||||||
KION Group AG | 230,838 | 19,843,058 | ||||||
Lanxess AG | 297,332 | 24,877,181 | ||||||
Linde AGa | 600,837 | 135,093,737 | ||||||
MAN SE | 113,529 | 12,960,390 | ||||||
Merck KGaA | 419,364 | 42,053,682 | ||||||
METRO AG | 585,165 | 11,451,265 | ||||||
MTU Aero Engines AG | 169,249 | 28,404,029 | ||||||
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen Registered | 503,066 | 112,957,263 | ||||||
Osram Licht AG | 323,673 | 25,770,451 | ||||||
ProSiebenSat.1 Media SE Registered | 757,983 | 30,082,396 | ||||||
QIAGEN NVa | 704,610 | 23,804,769 | ||||||
RTL Group SAa | 125,387 | 11,026,132 | ||||||
RWE AGa | 1,684,494 | 33,714,246 | ||||||
SAP SE | 3,185,068 | 334,858,541 | ||||||
Siemens AG Registered | 2,481,844 | 328,245,964 | ||||||
Symrise AG | 401,572 | 32,756,319 | ||||||
Telefonica Deutschland Holding AG | 2,417,206 | 11,173,475 | ||||||
thyssenkrupp AG | 1,415,012 | 38,520,305 |
SCHEDULESOF INVESTMENTS | 57 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EUROZONE ETF
February 28, 2018
Security | Shares | Value | ||||||
Uniper SE | 645,548 | $ | 19,628,460 | |||||
United Internet AG Registeredd | 398,275 | 27,182,923 | ||||||
Volkswagen AG | 104,956 | 21,057,586 | ||||||
Vonovia SE | 1,568,132 | 71,817,117 | ||||||
Wirecard AG | 378,521 | 45,575,404 | ||||||
Zalando SEa,b,c | 361,786 | 20,694,742 | ||||||
|
| |||||||
4,440,361,795 | ||||||||
IRELAND — 1.43% | ||||||||
AIB Group PLC | 2,623,060 | 17,275,769 | ||||||
Bank of Ireland Group PLCa | 3,006,321 | 28,233,290 | ||||||
CRH PLC | 2,732,211 | 90,872,982 | ||||||
Irish Bank Resolution Corp. Ltd.a,e | 446,666 | 5 | ||||||
Kerry Group PLC Class A | 521,873 | 52,161,394 | ||||||
Paddy Power Betfair PLC | 263,011 | 30,666,712 | ||||||
Ryanair Holdings PLCa | 42,432 | 838,386 | ||||||
Ryanair Holdings PLC ADRa | 75,132 | 9,110,506 | ||||||
|
| |||||||
229,159,044 | ||||||||
ITALY — 7.29% | ||||||||
Assicurazioni Generali SpA | 4,064,998 | 76,549,620 | ||||||
Atlantia SpA | 1,486,802 | 46,023,555 | ||||||
CNH Industrial NV | 3,327,897 | 45,236,121 | ||||||
Davide Campari-Milano SpA | 1,819,835 | 13,095,420 | ||||||
Enel SpA | 26,443,821 | 154,133,360 | ||||||
Eni SpA | 8,291,169 | 138,680,474 | ||||||
EXOR NV | 356,778 | 26,065,154 | ||||||
Ferrari NV | 398,965 | 49,876,282 | ||||||
Fiat Chrysler Automobiles NVa | 3,490,839 | 74,814,611 | ||||||
Intesa Sanpaolo SpA | 43,638,721 | 164,781,469 | ||||||
Leonardo SpA | 873,382 | 9,427,204 | ||||||
Luxottica Group SpA | 552,364 | 33,253,390 | ||||||
Mediobanca Banca di Credito Finanziario SpA | 1,979,701 | 23,792,910 | ||||||
Poste Italiane SpAb | 1,716,081 | 14,780,901 | ||||||
Prysmian SpA | 677,551 | 21,419,651 | ||||||
Recordati SpA | 343,142 | 12,325,217 | ||||||
Snam SpA | 7,494,691 | 33,647,667 | ||||||
Telecom Italia SpA/Milanoa | 37,274,176 | 33,641,486 | ||||||
Tenaris SA | 1,534,818 | 26,581,570 | ||||||
Terna Rete Elettrica Nazionale SpA | 4,614,807 | 25,665,740 | ||||||
UniCredit SpAa | 6,498,256 | 138,270,041 | ||||||
UnipolSai Assicurazioni SpA | 3,446,171 | 8,315,881 | ||||||
|
| |||||||
1,170,377,724 |
Security | Shares | Value | ||||||
NETHERLANDS — 11.20% | ||||||||
ABN AMRO Group NV CVAb | 1,375,025 | $ | 42,932,479 | |||||
Aegon NV | 5,733,752 | 40,084,871 | ||||||
AerCap Holdings NVa | 442,156 | 21,935,359 | ||||||
Akzo Nobel NV | 817,943 | 79,568,943 | ||||||
Altice NV Class Aa,c | 1,726,554 | 16,606,280 | ||||||
ArcelorMittala | 2,156,154 | 74,290,560 | ||||||
ASML Holding NV | 1,258,051 | 247,495,907 | ||||||
Boskalis Westminster | 294,678 | 11,141,530 | ||||||
Heineken Holding NV | 368,488 | 36,740,623 | ||||||
Heineken NV | 839,756 | 87,610,824 | ||||||
ING Groep NV | 12,595,887 | 222,419,435 | ||||||
Koninklijke Ahold Delhaize NV | 4,156,863 | 93,803,662 | ||||||
Koninklijke DSM NV | 586,990 | 60,953,655 | ||||||
Koninklijke KPN NV | 10,979,186 | 34,414,279 | ||||||
Koninklijke Philips NV | 3,050,491 | 117,308,404 | ||||||
Koninklijke Vopak NV | 236,393 | 11,201,109 | ||||||
NN Group NV | 989,307 | 44,354,939 | ||||||
NXP Semiconductors NVa | 1,099,424 | 137,054,196 | ||||||
Randstad Holding NV | 388,004 | 27,854,276 | ||||||
RELX NV | 3,139,020 | 64,510,349 | ||||||
Unilever NV CVA | 5,281,537 | 276,829,022 | ||||||
Wolters Kluwer NV | 944,969 | 48,037,531 | ||||||
|
| |||||||
1,797,148,233 | ||||||||
PORTUGAL — 0.45% | ||||||||
EDP – Energias de Portugal SA | 7,737,322 | 25,979,590 | ||||||
Galp Energia SGPS SA | 1,640,430 | 29,751,172 | ||||||
Jeronimo Martins SGPS SA | 812,637 | 16,908,731 | ||||||
|
| |||||||
72,639,493 | ||||||||
SPAIN — 9.81% | ||||||||
Abertis Infraestructuras SA | 2,247,943 | 53,737,415 | ||||||
ACS Actividades de Construccion y Servicios SA | 791,542 | 27,349,913 | ||||||
Aena SME SAb | 220,485 | 45,083,540 | ||||||
Amadeus IT Group SA | 1,425,061 | 105,257,906 | ||||||
Banco Bilbao Vizcaya Argentaria SA | 21,642,850 | 181,873,355 | ||||||
Banco de Sabadell SA | 17,355,403 | 36,524,567 | ||||||
Banco Santander SA | 52,368,684 | 361,959,749 | ||||||
Bankia SA | 3,907,338 | 18,719,225 | ||||||
Bankinter SA | 2,209,418 | 24,435,701 | ||||||
CaixaBank SA | 11,656,370 | 57,037,391 | ||||||
Enagas SA | 567,013 | 14,813,166 | ||||||
Endesa SA | 1,028,820 | 21,708,055 |
58 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EUROZONE ETF
February 28, 2018
Security | Shares | Value | ||||||
Ferrovial SA | 1,603,682 | $ | 34,747,125 | |||||
Gas Natural SDG SA | 1,137,105 | 26,093,972 | ||||||
Grifols SA | 976,343 | 26,888,202 | ||||||
Iberdrola SA | 18,865,740 | 139,806,388 | ||||||
Industria de Diseno Textil SA | 3,541,454 | 107,810,632 | ||||||
International Consolidated Airlines Group SA | 2,019,260 | 17,121,327 | ||||||
Mapfre SA | 3,556,014 | 12,013,751 | ||||||
Red Electrica Corp. SA | 1,405,085 | 27,419,402 | ||||||
Repsol SA | 4,099,432 | 73,523,153 | ||||||
Siemens Gamesa Renewable Energy SAc | 776,548 | 12,393,028 | ||||||
Telefonica SA | 15,140,433 | 147,599,034 | ||||||
|
| |||||||
1,573,915,997 | ||||||||
UNITED KINGDOM — 0.17% | ||||||||
Coca-Cola European Partners PLC | 706,700 | 26,868,735 | ||||||
|
| |||||||
26,868,735 | ||||||||
TOTAL COMMON STOCKS | ||||||||
(Cost: $14,747,736,315) | 15,700,087,046 | |||||||
PREFERRED STOCKS — 1.89% |
| |||||||
GERMANY — 1.72% | ||||||||
Bayerische Motoren Werke AG, Preference Shares | 180,899 | 16,481,327 | ||||||
Fuchs Petrolub SE, Preference Shares | 227,807 | 12,964,244 | ||||||
Henkel AG & Co. KGaA, Preference Shares | 577,109 | 76,933,132 | ||||||
Porsche Automobil Holding SE, Preference Shares | 497,368 | 41,929,239 | ||||||
Schaeffler AG, Preference Shares | 539,610 | 8,789,401 | ||||||
Volkswagen AG, Preference Shares | 602,447 | 118,386,916 | ||||||
|
| |||||||
275,484,259 | ||||||||
ITALY — 0.17% | ||||||||
Intesa Sanpaolo SpA, Preference Shares | 3,107,494 | 12,416,225 | ||||||
Telecom Italia SpA/Milano, Preference Shares | 19,370,160 | 14,812,766 | ||||||
|
| |||||||
27,228,991 | ||||||||
|
| |||||||
TOTAL PREFERRED STOCKS | ||||||||
(Cost: $309,510,674) | 302,713,250 |
Security | Shares | Value | ||||||
SHORT-TERM INVESTMENTS — 0.37% |
| |||||||
MONEY MARKET FUNDS — 0.37% |
| |||||||
BlackRock Cash Funds: Institutional, |
| |||||||
1.58%f,g,h | 56,803,616 | $ | 56,809,296 | |||||
BlackRock Cash Funds: Treasury, |
| |||||||
1.32%f,g | 2,539,008 | 2,539,008 | ||||||
|
| |||||||
59,348,304 | ||||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||||
(Cost: $59,345,983) |
| 59,348,304 | ||||||
|
| |||||||
TOTAL INVESTMENTS |
| |||||||
(Cost: $15,116,592,972) |
| 16,062,148,600 | ||||||
Other Assets, Less Liabilities — (0.10)% |
| (15,421,681 | ) | |||||
|
| |||||||
NET ASSETS — 100.00% |
| $ | 16,046,726,919 | |||||
|
|
ADR — American Depositary Receipts
a | Non-income producing security. |
b | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
c | All or a portion of this security is on loan. |
d | This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933. |
e | Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. |
f | Affiliate of the Fund. |
g | Annualized 7-day yield as of period end. |
h | All or a portion of this security was purchased with cash collateral received from loaned securities. |
SCHEDULESOF INVESTMENTS | 59 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EUROZONE ETF
February 28, 2018
Affiliates (Note 2)
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows:
Affiliated issuer | Shares held at 08/31/17 | Shares purchased | Shares sold | Shares held at 02/28/18 | Value at 02/28/18 | Income | Net realized gain (loss) a | Change in unrealized appreciation (depreciation) | ||||||||||||||||||||||||
BlackRock Cash | 57,577,483 | — | (773,867 | )b | 56,803,616 | $ | 56,809,296 | $ | 547,697 | c | $ | (4,091 | ) | $ | (6,717 | ) | ||||||||||||||||
BlackRock Cash | 489,933 | 2,049,075 | b | — | 2,539,008 | 2,539,008 | 37,259 | — | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 59,348,304 | $ | 584,956 | $ | (4,091 | ) | $ | (6,717 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
a | Includes realized capital gain distributions from an affiliated fund, if any. |
b | Net of shares purchased and sold. |
c | Includes the Fund’s portion of securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. |
Futures Contracts (Note 5)
Futures contracts outstanding as of February 28, 2018 were as follows:
Description | Number of contracts | Expiration date | Notional amount (000) | Value/ unrealized appreciation (depreciation) | ||||||||||||
Long Contracts: | ||||||||||||||||
Euro STOXX 50 | 1,045 | Mar 2018 | $ | 43,819 | $ | (1,822,579 | ) | |||||||||
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common stocks | $ | 15,700,087,040 | $ | — | $ | 5 | $ | 15,700,087,045 | ||||||||
Preferred stocks | 302,713,250 | — | — | 302,713,250 | ||||||||||||
Money market funds | 59,348,304 | — | — | 59,348,304 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 16,062,148,594 | $ | — | $ | 5 | $ | 16,062,148,599 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative financial instrumentsa | ||||||||||||||||
Liabilities | ||||||||||||||||
Futures contracts | $ | (1,822,579 | ) | $ | — | $ | — | $ | (1,822,579 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | (1,822,579 | ) | $ | — | $ | — | $ | (1,822,579 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
a | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
60 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
February 28, 2018
Security | Shares | Value | ||||||
COMMON STOCKS — 93.53% |
| |||||||
AEROSPACE & DEFENSE — 0.60% |
| |||||||
MTU Aero Engines AG | 155,172 | $ | 26,041,572 | |||||
|
| |||||||
26,041,572 | ||||||||
AIR FREIGHT & LOGISTICS — 3.04% |
| |||||||
Deutsche Post AG Registered | 2,898,591 | 133,067,488 | ||||||
|
| |||||||
133,067,488 | ||||||||
AIRLINES — 0.54% |
| |||||||
Deutsche Lufthansa AG Registered | 701,989 | 23,647,726 | ||||||
|
| |||||||
23,647,726 | ||||||||
AUTO COMPONENTS — 2.07% |
| |||||||
Continental AG | 328,413 | 90,403,929 | ||||||
|
| |||||||
90,403,929 | ||||||||
AUTOMOBILES — 8.49% |
| |||||||
Bayerische Motoren Werke AG | 988,470 | 104,669,146 | ||||||
Daimler AG Registereda | 2,874,535 | 247,062,754 | ||||||
Volkswagen AG | 96,833 | 19,427,848 | ||||||
|
| |||||||
371,159,748 | ||||||||
BANKS — 1.13% |
| |||||||
Commerzbank AGb | 3,178,003 | 49,373,163 | ||||||
|
| |||||||
49,373,163 | ||||||||
CAPITAL MARKETS — 4.03% |
| |||||||
Deutsche Bank AG Registered | 6,170,202 | 99,336,469 | ||||||
Deutsche Boerse AG | 576,187 | 76,915,635 | ||||||
|
| |||||||
176,252,104 | ||||||||
CHEMICALS — 12.71% |
| |||||||
BASF SE | 2,742,053 | 288,984,970 | ||||||
Covestro AGc | 483,656 | 55,060,453 | ||||||
Evonik Industries AG | 486,178 | 18,043,993 | ||||||
K+S AG Registeredd | 569,842 | 15,950,436 | ||||||
Lanxess AG | 273,118 | 22,851,244 | ||||||
Linde AGb | 554,497 | 124,674,533 | ||||||
Symrise AG | 368,175 | 30,032,118 | ||||||
|
| |||||||
555,597,747 | ||||||||
CONSTRUCTION & ENGINEERING — 0.22% |
| |||||||
HOCHTIEF AG | 57,822 | 9,767,385 | ||||||
|
| |||||||
9,767,385 | ||||||||
CONSTRUCTION MATERIALS — 1.02% |
| |||||||
HeidelbergCement AG | 443,709 | 44,776,399 | ||||||
|
| |||||||
44,776,399 |
Security | Shares | Value | ||||||
DIVERSIFIED TELECOMMUNICATION SERVICES — 3.92% |
| |||||||
Deutsche Telekom AG Registered | 9,950,490 | $ | 160,924,955 | |||||
Telefonica Deutschland Holding AG | 2,226,508 | 10,291,979 | ||||||
|
| |||||||
171,216,934 | ||||||||
ELECTRICAL EQUIPMENT — 0.54% |
| |||||||
Osram Licht AG | 296,918 | 23,640,251 | ||||||
|
| |||||||
23,640,251 | ||||||||
FOOD & STAPLES RETAILING — 0.24% |
| |||||||
METRO AG | 539,111 | 10,550,021 | ||||||
|
| |||||||
10,550,021 | ||||||||
HEALTH CARE PROVIDERS & SERVICES — 3.89% |
| |||||||
Fresenius Medical Care AG & Co. KGaA | 643,568 | 68,367,233 | ||||||
Fresenius SE & Co. KGaA | 1,241,144 | 101,573,425 | ||||||
|
| |||||||
169,940,658 | ||||||||
HOUSEHOLD PRODUCTS — 0.85% |
| |||||||
Henkel AG & Co. KGaA | 309,772 | 37,346,872 | ||||||
|
| |||||||
37,346,872 | ||||||||
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS — 0.42% |
| |||||||
Uniper SE | 602,639 | 18,323,774 | ||||||
|
| |||||||
18,323,774 | ||||||||
INDUSTRIAL CONGLOMERATES — 6.91% |
| |||||||
Siemens AG Registered | 2,283,853 | 302,059,891 | ||||||
|
| |||||||
302,059,891 | ||||||||
INSURANCE — 10.08% |
| |||||||
Allianz SE Registered | 1,332,560 | 312,081,945 | ||||||
Hannover Rueck SE | 179,962 | 24,561,014 | ||||||
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen Registered | 463,550 | 104,084,433 | ||||||
|
| |||||||
440,727,392 | ||||||||
INTERNET & DIRECT MARKETING RETAIL — 0.43% |
| |||||||
Zalando SEb,c,d | 331,807 | 18,979,894 | ||||||
|
| |||||||
18,979,894 | ||||||||
INTERNET SOFTWARE & SERVICES — 0.57% |
| |||||||
United Internet AG Registereda | 367,212 | 25,062,822 | ||||||
|
| |||||||
25,062,822 | ||||||||
IT SERVICES — 0.97% |
| |||||||
Wirecard AG | 350,451 | 42,195,667 | ||||||
|
| |||||||
42,195,667 |
SCHEDULESOF INVESTMENTS | 61 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI GERMANY ETF
February 28, 2018
Security | Shares | Value | ||||||
LIFE SCIENCES TOOLS & SERVICES — 0.51% |
| |||||||
QIAGEN NVb | 654,989 | $ | 22,128,358 | |||||
|
| |||||||
22,128,358 | ||||||||
MACHINERY — 1.29% |
| |||||||
GEA Group AG | 545,950 | 25,935,567 | ||||||
KION Group AG | 211,282 | 18,162,005 | ||||||
MAN SE | 105,627 | 12,058,303 | ||||||
|
| |||||||
56,155,875 | ||||||||
MEDIA — 1.17% |
| |||||||
Axel Springer SE | 145,374 | 13,120,605 | ||||||
ProSiebenSat.1 Media SE Registered | 695,415 | 27,599,233 | ||||||
RTL Group SAb | 115,864 | 10,188,710 | ||||||
|
| |||||||
50,908,548 | ||||||||
METALS & MINING — 0.81% |
| |||||||
thyssenkrupp AG | 1,300,970 | 35,415,785 | ||||||
|
| |||||||
35,415,785 | ||||||||
MULTI-UTILITIES — 2.62% |
| |||||||
E.ON SE | 6,571,223 | 67,002,019 | ||||||
Innogy SEc | 413,748 | 16,556,843 | ||||||
RWE AGb | 1,546,968 | 30,961,737 | ||||||
|
| |||||||
114,520,599 | ||||||||
PERSONAL PRODUCTS — 0.76% |
| |||||||
Beiersdorf AG | 300,933 | 33,077,022 | ||||||
|
| |||||||
33,077,022 | ||||||||
PHARMACEUTICALS — 7.52% |
| |||||||
Bayer AG Registered | 2,468,791 | 289,754,518 | ||||||
Merck KGaA | 386,222 | 38,730,213 | ||||||
|
| |||||||
328,484,731 | ||||||||
REAL ESTATE MANAGEMENT & DEVELOPMENT — 2.52% |
| |||||||
Deutsche Wohnen SE Bearer | 1,058,823 | 43,842,827 | ||||||
Vonovia SE | 1,445,404 | 66,196,435 | ||||||
|
| |||||||
110,039,262 | ||||||||
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 2.12% |
| |||||||
Infineon Technologies AG | 3,390,911 | 92,640,271 | ||||||
|
| |||||||
92,640,271 | ||||||||
SOFTWARE — 7.06% |
| |||||||
SAP SE | 2,934,108 | 308,474,144 | ||||||
|
| |||||||
308,474,144 | ||||||||
TEXTILES, APPAREL & LUXURY GOODS — 3.25% |
| |||||||
adidas AG | 562,145 | 125,194,293 | ||||||
HUGO BOSS AG | 188,766 | 16,889,566 | ||||||
|
| |||||||
142,083,859 |
Security | Shares | Value | ||||||
TRADING COMPANIES & DISTRIBUTORS — 0.66% |
| |||||||
Brenntag AG | 461,257 | $ | 28,961,224 | |||||
|
| |||||||
28,961,224 | ||||||||
TRANSPORTATION INFRASTRUCTURE — 0.29% |
| |||||||
Fraport AG Frankfurt Airport Services Worldwide | 124,715 | 12,798,427 | ||||||
|
| |||||||
12,798,427 | ||||||||
WIRELESS TELECOMMUNICATION SERVICES — 0.28% |
| |||||||
1&1 Drillisch AG | 158,776 | 12,287,171 | ||||||
|
| |||||||
12,287,171 | ||||||||
|
| |||||||
TOTAL COMMON STOCKS |
| |||||||
(Cost: $4,058,112,615) | 4,088,106,713 | |||||||
PREFERRED STOCKS — 5.79% |
| |||||||
AUTO COMPONENTS — 0.18% |
| |||||||
Schaeffler AG, Preference Shares | 497,030 | 8,095,840 | ||||||
|
| |||||||
8,095,840 | ||||||||
AUTOMOBILES — 3.72% |
| |||||||
Bayerische Motoren Werke AG, Preference Shares | 165,191 | 15,050,204 | ||||||
Porsche Automobil Holding SE, Preference Shares | 457,150 | 38,538,771 | ||||||
Volkswagen AG, Preference Shares | 554,055 | 108,877,399 | ||||||
|
| |||||||
162,466,374 | ||||||||
CHEMICALS — 0.27% |
| |||||||
Fuchs Petrolub SE, Preference Shares | 208,305 | 11,854,407 | ||||||
|
| |||||||
11,854,407 | ||||||||
HOUSEHOLD PRODUCTS — 1.62% |
| |||||||
Henkel AG & Co. KGaA, Preference Shares | 531,901 | 70,906,553 | ||||||
|
| |||||||
70,906,553 | ||||||||
|
| |||||||
TOTAL PREFERRED STOCKS |
| |||||||
(Cost: $277,964,637) | 253,323,174 | |||||||
SHORT-TERM INVESTMENTS — 0.62% |
| |||||||
MONEY MARKET FUNDS — 0.62% |
| |||||||
BlackRock Cash Funds: Institutional, |
| |||||||
1.58%e,f,g | 25,385,150 | 25,387,689 |
62 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI GERMANY ETF
February 28, 2018
Security | Shares | Value | ||||||
BlackRock Cash Funds: Treasury, |
| |||||||
1.32%e,f | 1,692,113 | $ | 1,692,113 | |||||
|
| |||||||
27,079,802 | ||||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||||
(Cost: $27,079,802) |
| 27,079,802 | ||||||
|
| |||||||
TOTAL INVESTMENTS |
| |||||||
(Cost: $4,363,157,054) |
| 4,368,509,689 | ||||||
Other Assets, Less Liabilities — 0.06% |
| 2,437,777 | ||||||
|
| |||||||
NET ASSETS — 100.00% |
| $ | 4,370,947,466 | |||||
|
|
a | This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933. |
b | Non-income producing security. |
c | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
d | All or a portion of this security is on loan. |
e | Affiliate of the Fund. |
f | Annualized 7-day yield as of period end. |
g | All or a portion of this security was purchased with cash collateral received from loaned securities. |
Affiliates (Note 2)
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows:
Affiliated issuer | Shares held at 08/31/17 | Shares purchased | Shares sold | Shares held at 02/28/18 | Value at 02/28/18 | Income | Net realized gain (loss) a | Change in unrealized appreciation (depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, | 69,810,722 | — | (44,425,572 | )b | 25,385,150 | $ | 25,387,689 | $ | 270,933 | c | $ | (6,615 | ) | $ | — | |||||||||||||||||
BlackRock Cash Funds: Treasury, | 589,306 | 1,102,807 | b | — | 1,692,113 | 1,692,113 | 7,757 | — | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 27,079,802 | $ | 278,690 | $ | (6,615 | ) | $ | — | ||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
a | Includes realized capital gain distributions from an affiliated fund, if any. |
b | Net of shares purchased and sold. |
c | Includes the Fund’s portion of securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. |
Futures Contracts (Note 5)
Futures contracts outstanding as of February 28, 2018 were as follows:
Description | Number of contracts | Expiration date | Notional amount (000) | Value/ unrealized appreciation (depreciation) | ||||||||||||
Long Contracts: | ||||||||||||||||
DAX Index | 75 | Mar 2018 | $ | 28,431 | $ | (1,300,437 | ) | |||||||||
|
| |||||||||||||||
SCHEDULESOF INVESTMENTS | 63 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI GERMANY ETF
February 28, 2018
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common stocks | $ | 4,088,106,713 | $ | — | $ | — | $ | 4,088,106,713 | ||||||||
Preferred stocks | 253,323,174 | — | — | 253,323,174 | ||||||||||||
Money market funds | 27,079,802 | — | — | 27,079,802 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 4,368,509,689 | $ | — | $ | — | $ | 4,368,509,689 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative financial instrumentsa | ||||||||||||||||
Liabilities | ||||||||||||||||
Futures contracts | $ | (1,300,437 | ) | $ | — | $ | — | $ | (1,300,437 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | (1,300,437 | ) | $ | — | $ | — | $ | (1,300,437 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
a | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
64 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
February 28, 2018
Security | Shares | Value | ||||||
COMMON STOCKS — 97.65% |
| |||||||
AEROSPACE & DEFENSE — 1.55% |
| |||||||
Leonardo SpA | 1,020,041 | $ | 11,010,228 | |||||
|
| |||||||
11,010,228 | ||||||||
AUTOMOBILES — 8.86% |
| |||||||
Ferrari NV | 252,290 | 31,539,827 | ||||||
Fiat Chrysler Automobiles NVa | 1,465,529 | 31,408,776 | ||||||
|
| |||||||
62,948,603 | ||||||||
BANKS — 25.31% |
| |||||||
Intesa Sanpaolo SpA | 23,461,061 | 88,589,858 | ||||||
Mediobanca Banca di Credito Finanziario SpA | 1,536,478 | 18,466,063 | ||||||
UniCredit SpAa | 3,417,689 | 72,721,665 | ||||||
|
| |||||||
179,777,586 | ||||||||
BEVERAGES — 1.53% |
| |||||||
Davide Campari-Milano SpA | 1,505,838 | 10,835,917 | ||||||
|
| |||||||
10,835,917 | ||||||||
DIVERSIFIED FINANCIAL SERVICES — 2.93% |
| |||||||
EXOR NV | 285,172 | 20,833,830 | ||||||
|
| |||||||
20,833,830 | ||||||||
DIVERSIFIED TELECOMMUNICATION SERVICES — 3.09% |
| |||||||
Telecom Italia SpA/Milanoa | 24,314,868 | 21,945,175 | ||||||
|
| |||||||
21,945,175 | ||||||||
ELECTRIC UTILITIES — 14.42% |
| |||||||
Enel SpA | 14,080,985 | 82,073,976 | ||||||
Terna Rete Elettrica Nazionale SpA | 3,662,409 | 20,368,877 | ||||||
|
| |||||||
102,442,853 | ||||||||
ELECTRICAL EQUIPMENT — 2.31% |
| |||||||
Prysmian SpA | 518,250 | 16,383,614 | ||||||
|
| |||||||
16,383,614 | ||||||||
ENERGY EQUIPMENT & SERVICES — 2.77% |
| |||||||
Tenaris SA | 1,137,242 | 19,695,937 | ||||||
|
| |||||||
19,695,937 | ||||||||
INSURANCE — 7.68% |
| |||||||
Assicurazioni Generali SpA | 1,703,224 | 32,074,099 | ||||||
Poste Italiane SpAb | 1,551,208 | 13,360,821 | ||||||
UnipolSai Assicurazioni SpA | 3,789,705 | 9,144,856 | ||||||
|
| |||||||
54,579,776 | ||||||||
MACHINERY — 4.39% | ||||||||
CNH Industrial NV | 2,293,451 | 31,174,891 | ||||||
|
| |||||||
31,174,891 |
Security | Shares | Value | ||||||
OIL, GAS & CONSUMABLE FUELS — 13.73% |
| |||||||
Eni SpA | 4,346,257 | $ | 72,696,743 | |||||
Snam SpA | 5,540,243 | 24,873,107 | ||||||
|
| |||||||
97,569,850 | ||||||||
PHARMACEUTICALS — 1.44% |
| |||||||
Recordati SpA | 285,364 | 10,249,906 | ||||||
|
| |||||||
10,249,906 | ||||||||
TEXTILES, APPAREL & LUXURY GOODS — 3.42% |
| |||||||
Luxottica Group SpA | 403,182 | 24,272,343 | ||||||
|
| |||||||
24,272,343 | ||||||||
TRANSPORTATION INFRASTRUCTURE — 4.22% |
| |||||||
Atlantia SpA | 969,487 | 30,010,209 | ||||||
|
| |||||||
30,010,209 | ||||||||
|
| |||||||
TOTAL COMMON STOCKS |
| |||||||
(Cost: $684,509,930) | 693,730,718 | |||||||
PREFERRED STOCKS — 2.19% |
| |||||||
BANKS — 0.67% |
| |||||||
Intesa Sanpaolo SpA, Preference Shares | 1,179,735 | 4,713,720 | ||||||
|
| |||||||
4,713,720 | ||||||||
DIVERSIFIED TELECOMMUNICATION SERVICES — 1.52% |
| |||||||
Telecom Italia SpA/Milano, Preference Shares | 14,152,122 | 10,822,423 | ||||||
|
| |||||||
10,822,423 | ||||||||
|
| |||||||
TOTAL PREFERRED STOCKS |
| |||||||
(Cost: $15,842,949) | 15,536,143 | |||||||
SHORT-TERM INVESTMENTS — 0.02% |
| |||||||
MONEY MARKET FUNDS — 0.02% |
| |||||||
BlackRock Cash Funds: Treasury, |
| |||||||
1.32%c,d | 171,861 | 171,861 | ||||||
|
| |||||||
171,861 | ||||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||||
(Cost: $171,861) |
| 171,861 | ||||||
|
|
SCHEDULESOF INVESTMENTS | 65 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI ITALY ETF
February 28, 2018
Value | ||||||
TOTAL INVESTMENTS |
| |||||
(Cost: $700,524,740) | $ | 709,438,722 | ||||
Other Assets, Less Liabilities — 0.14% | 1,017,761 | |||||
|
| |||||
NET ASSETS — 100.00% | $ | 710,456,483 | ||||
|
|
a | Non-income producing security. |
b | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
c | Affiliate of the Fund. |
d | Annualized 7-day yield as of period end. |
Affiliates (Note 2)
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows:
Affiliated issuer | Shares held at 08/31/17 | Shares purchased | Shares sold | Shares held at 02/28/18 | Value at 02/28/18 | Income | Net realized gain (loss) a | Change in unrealized appreciation (depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, | — | — | — | b | — | $ | — | $ | 1,290 | c | $ | (205 | ) | $ | — | |||||||||||||||||
BlackRock Cash Funds: Treasury, | 998,621 | — | (826,760 | )b | 171,861 | 171,861 | 2,400 | — | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 171,861 | $ | 3,690 | $ | (205 | ) | $ | — | ||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
a | Includes realized capital gain distributions from an affiliated fund, if any. |
b | Net of shares purchased and sold. |
c | Includes the Fund’s portion of securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. |
Futures Contracts (Note 5)
Futures contracts outstanding as of February 28, 2018 were as follows:
Description | Number of contracts | Expiration date | Notional amount (000) | Value/ appreciation | ||||||||||||
Long Contracts: | ||||||||||||||||
FTSE/MIB Index | 7 | Mar 2018 | $ | 965 | $ | (30,878 | ) | |||||||||
|
| |||||||||||||||
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.
66 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI ITALY ETF
February 28, 2018
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common stocks | $ | 693,730,718 | $ | — | $ | — | $ | 693,730,718 | ||||||||
Preferred stocks | 15,536,143 | — | — | 15,536,143 | ||||||||||||
Money market funds | 171,861 | — | — | 171,861 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 709,438,722 | $ | — | $ | — | $ | 709,438,722 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative financial instrumentsa | ||||||||||||||||
Liabilities | ||||||||||||||||
Futures contracts | $ | (30,878 | ) | $ | — | $ | — | $ | (30,878 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | (30,878 | ) | $ | — | $ | — | $ | (30,878 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
a | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
SCHEDULESOF INVESTMENTS | 67 |
Table of Contents
Schedule of Investments (Unaudited)
February 28, 2018
Security | Shares | Value | ||||||
COMMON STOCKS — 99.82% |
| |||||||
AIRLINES — 1.87% |
| |||||||
International Consolidated Airlines Group SA | 2,383,539 | $ | 20,210,052 | |||||
|
| |||||||
20,210,052 | ||||||||
BANKS — 42.34% |
| |||||||
Banco Bilbao Vizcaya Argentaria SA | 12,580,391 | 105,717,958 | ||||||
Banco de Sabadell SA | 15,837,093 | 33,329,273 | ||||||
Banco Santander SA | 32,830,345 | 226,915,449 | ||||||
Bankia SA | 4,073,322 | 19,514,419 | ||||||
Bankinter SA | 2,289,302 | 25,319,202 | ||||||
CaixaBank SA | 9,765,709 | 47,785,937 | ||||||
|
| |||||||
458,582,238 | ||||||||
BIOTECHNOLOGY — 2.42% |
| |||||||
Grifols SA | 952,269 | 26,225,211 | ||||||
|
| |||||||
26,225,211 | ||||||||
CONSTRUCTION & ENGINEERING — 5.46% |
| |||||||
ACS Actividades de Construccion y Servicios SA | 776,848 | 26,842,195 | ||||||
Ferrovial SA | 1,491,639 | 32,319,479 | ||||||
|
| |||||||
59,161,674 | ||||||||
DIVERSIFIED TELECOMMUNICATION SERVICES — 7.46% |
| |||||||
Telefonica SA | 8,283,098 | 80,749,161 | ||||||
|
| |||||||
80,749,161 | ||||||||
ELECTRIC UTILITIES — 11.46% |
| |||||||
Endesa SA | 1,097,325 | 23,153,507 | ||||||
Iberdrola SA | 10,071,173 | 74,633,400 | ||||||
Red Electrica Corp. SA | 1,346,437 | 26,274,922 | ||||||
|
| |||||||
124,061,829 | ||||||||
ELECTRICAL EQUIPMENT — 1.62% |
| |||||||
Siemens Gamesa Renewable Energy SAa | 1,099,364 | 17,544,890 | ||||||
|
| |||||||
17,544,890 | ||||||||
GAS UTILITIES — 2.47% |
| |||||||
Gas Natural SDG SA | 1,166,543 | 26,769,507 | ||||||
|
| |||||||
26,769,507 | ||||||||
INSURANCE — 1.57% |
| |||||||
Mapfre SA | 5,021,803 | 16,965,820 | ||||||
|
| |||||||
16,965,820 | ||||||||
IT SERVICES — 4.57% |
| |||||||
Amadeus IT Group SA | 670,236 | 49,504,995 | ||||||
|
| |||||||
49,504,995 |
Security | Shares | Value | ||||||
OIL, GAS & CONSUMABLE FUELS — 6.53% |
| |||||||
Enagas SA | 742,527 | $ | 19,398,454 | |||||
Repsol SA | 2,860,367 | 51,300,570 | ||||||
|
| |||||||
70,699,024 | ||||||||
SPECIALTY RETAIL — 4.18% |
| |||||||
Industria de Diseno Textil SA | 1,488,622 | 45,317,341 | ||||||
|
| |||||||
45,317,341 | ||||||||
TRANSPORTATION INFRASTRUCTURE — 7.87% |
| |||||||
Abertis Infraestructuras SA | 1,909,517 | 45,647,291 | ||||||
Aena SME SAb | 193,518 | 39,569,479 | ||||||
|
| |||||||
85,216,770 | ||||||||
|
| |||||||
TOTAL COMMON STOCKS |
| |||||||
(Cost: $1,194,053,518) |
| 1,081,008,512 | ||||||
SHORT-TERM INVESTMENTS — 1.65% |
| |||||||
MONEY MARKET FUNDS — 1.65% |
| |||||||
BlackRock Cash Funds: Institutional, |
| |||||||
1.58%c,d,e | 15,069,738 | 15,071,245 | ||||||
BlackRock Cash Funds: Treasury, |
| |||||||
1.32%c,d | 2,800,997 | 2,800,997 | ||||||
|
| |||||||
17,872,242 | ||||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||||
(Cost: $17,873,539) |
| 17,872,242 | ||||||
|
| |||||||
TOTAL INVESTMENTS |
| |||||||
(Cost: $1,211,927,057) |
| 1,098,880,754 | ||||||
Other Assets, Less Liabilities — (1.47)% |
| (15,931,204 | ) | |||||
|
| |||||||
NET ASSETS — 100.00% |
| $ | 1,082,949,550 | |||||
|
|
a | All or a portion of this security is on loan. |
b | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
c | Affiliate of the Fund. |
d | Annualized 7-day yield as of period end. |
e | All or a portion of this security was purchased with cash collateral received from loaned securities. |
68 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SPAIN ETF
February 28, 2018
Affiliates (Note 2)
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows:
Affiliated issuer | Shares held at 08/31/17 | Shares purchased | Shares sold | Shares held at 02/28/18 | Value at 02/28/18 | Income | Net realized gain (loss) a | Change in unrealized appreciation (depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, | 10,256,664 | 4,813,074 | b | — | 15,069,738 | $ | 15,071,245 | $ | 22,833 | c | $ | (1,350 | ) | $ | (1,297 | ) | ||||||||||||||||
BlackRock Cash Funds: Treasury, | 1,301,695 | 1,499,302 | b | — | 2,800,997 | 2,800,997 | 4,699 | — | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 17,872,242 | $ | 27,532 | $ | (1,350 | ) | $ | (1,297 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
a | Includes realized capital gain distributions from an affiliated fund, if any. |
b | Net of shares purchased and sold. |
c | Includes the Fund’s portion of securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. |
Futures Contracts (Note 5)
Futures contracts outstanding as of February 28, 2018 were as follows:
Description | Number of contracts | Expiration date | Notional amount (000) | Value/ unrealized appreciation (depreciation) | ||||||||||
Long Contracts: | ||||||||||||||
IBEX 35 Index | 13 | Mar 2018 | $ | 1,559 | $ | 1,836 | ||||||||
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common stocks | $ | 1,081,008,512 | $ | — | $ | — | $ | 1,081,008,512 | ||||||||
Money market funds | 17,872,242 | — | — | 17,872,242 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 1,098,880,754 | $ | — | $ | — | $ | 1,098,880,754 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative financial instrumentsa | ||||||||||||||||
Assets | ||||||||||||||||
Futures contracts | $ | 1,836 | $ | — | $ | — | $ | 1,836 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 1,836 | $ | — | $ | — | $ | 1,836 | ||||||||
|
|
|
|
|
|
|
| |||||||||
a | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
SCHEDULESOF INVESTMENTS | 69 |
Table of Contents
Schedule of Investments (Unaudited)
February 28, 2018
Security | Shares | Value | ||||||
COMMON STOCKS — 99.56% |
| |||||||
BUILDING PRODUCTS — 1.64% |
| |||||||
Geberit AG Registered | 47,876 | $ | 21,692,506 | |||||
|
| |||||||
21,692,506 | ||||||||
CAPITAL MARKETS — 11.29% |
| |||||||
Credit Suisse Group AG Registered | 2,864,416 | 53,223,793 | ||||||
Julius Baer Group Ltd. | 295,237 | 19,244,060 | ||||||
Partners Group Holding AG | 23,426 | 17,029,429 | ||||||
UBS Group AG Registered | 3,110,071 | 59,466,677 | ||||||
|
| |||||||
148,963,959 | ||||||||
CHEMICALS — 4.67% |
| |||||||
Clariant AG Registered | 148,698 | 3,729,054 | ||||||
EMS-Chemie Holding AG Registered | 13,672 | 8,766,977 | ||||||
Givaudan SA Registered | 11,586 | 26,444,106 | ||||||
Sika AG Bearer | 2,760 | 22,721,338 | ||||||
|
| |||||||
61,661,475 | ||||||||
CONSTRUCTION MATERIALS — 2.48% |
| |||||||
LafargeHolcim Ltd. Registered | 558,106 | 32,705,053 | ||||||
|
| |||||||
32,705,053 | ||||||||
DIVERSIFIED FINANCIAL SERVICES — 0.52% |
| |||||||
Pargesa Holding SA Bearer | 77,415 | 6,864,586 | ||||||
|
| |||||||
6,864,586 | ||||||||
DIVERSIFIED TELECOMMUNICATION SERVICES — 1.41% |
| |||||||
Swisscom AG Registered | 34,418 | 18,646,649 | ||||||
|
| |||||||
18,646,649 | ||||||||
ELECTRICAL EQUIPMENT — 4.02% |
| |||||||
ABB Ltd. Registered | 2,172,546 | 53,011,915 | ||||||
|
| |||||||
53,011,915 | ||||||||
FOOD PRODUCTS — 21.20% |
| |||||||
Barry Callebaut AG Registered | 4,117 | 8,133,368 | ||||||
Chocoladefabriken Lindt & Spruengli AG Participation Certificates | 1,670 | 10,001,799 | ||||||
Chocoladefabriken Lindt & Spruengli AG Registered | 152 | 10,969,155 | ||||||
Nestle SA Registered | 3,147,362 | 250,709,921 | ||||||
|
| |||||||
279,814,243 | ||||||||
HEALTH CARE EQUIPMENT & SUPPLIES — 1.74% |
| |||||||
Sonova Holding AG Registered | 77,615 | 12,187,785 | ||||||
Straumann Holding AG Registered | 15,802 | 10,709,678 | ||||||
|
| |||||||
22,897,463 |
Security | Shares | Value | ||||||
INSURANCE — 9.49% |
| |||||||
Baloise Holding AG Registered | 73,414 | $ | 11,590,253 | |||||
Swiss Life Holding AG Registered | 44,597 | 16,186,203 | ||||||
Swiss Re AG | 379,962 | 38,798,299 | ||||||
Zurich Insurance Group AG | 177,541 | 58,613,610 | ||||||
|
| |||||||
125,188,365 | ||||||||
LIFE SCIENCES TOOLS & SERVICES — 1.83% |
| |||||||
Lonza Group AG Registered | 94,510 | 24,081,274 | ||||||
|
| |||||||
24,081,274 | ||||||||
MACHINERY — 1.64% |
| |||||||
Schindler Holding AG Participation Certificates | 57,953 | 13,589,106 | ||||||
Schindler Holding AG Registered | 35,451 | 8,035,135 | ||||||
|
| |||||||
21,624,241 | ||||||||
MARINE — 0.96% |
| |||||||
Kuehne + Nagel International AG Registered | 77,576 | 12,698,807 | ||||||
|
| |||||||
12,698,807 | ||||||||
PHARMACEUTICALS — 26.49% |
| |||||||
Novartis AG Registered | 2,176,860 | 182,339,810 | ||||||
Roche Holding AG | 674,972 | 156,628,072 | ||||||
Vifor Pharma AG | 75,477 | 10,638,100 | ||||||
|
| |||||||
349,605,982 | ||||||||
PROFESSIONAL SERVICES — 2.71% |
| |||||||
Adecco Group AG Registered | 218,634 | 17,642,483 | ||||||
SGS SA Registered | 7,125 | 18,147,056 | ||||||
|
| |||||||
35,789,539 | ||||||||
REAL ESTATE MANAGEMENT & DEVELOPMENT — 0.79% |
| |||||||
Swiss Prime Site AG Registered | 111,859 | 10,463,294 | ||||||
|
| |||||||
10,463,294 | ||||||||
SPECIALTY RETAIL — 0.65% |
| |||||||
Dufry AG Registereda | 59,596 | 8,588,937 | ||||||
|
| |||||||
8,588,937 | ||||||||
TEXTILES, APPAREL & LUXURY GOODS — 6.03% |
| |||||||
Cie. Financiere Richemont SA Class A Registered | 614,633 | 54,149,879 | ||||||
Swatch Group AG (The) Bearer | 41,330 | 17,484,508 | ||||||
Swatch Group AG (The) Registered | 99,155 | 7,979,195 | ||||||
|
| |||||||
79,613,582 | ||||||||
|
| |||||||
TOTAL COMMON STOCKS |
| |||||||
(Cost: $1,297,265,346) |
| 1,313,911,870 |
70 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SWITZERLAND ETF
February 28, 2018
Security | Shares | Value | ||||||
SHORT-TERM INVESTMENTS — 0.01% |
| |||||||
MONEY MARKET FUNDS — 0.01% |
| |||||||
BlackRock Cash Funds: Treasury, |
| |||||||
1.32%b,c | 171,407 | $ | 171,407 | |||||
|
| |||||||
171,407 | ||||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||||
(Cost: $171,407) | 171,407 | |||||||
|
| |||||||
TOTAL INVESTMENTS |
| |||||||
(Cost: $1,297,436,753) |
| 1,314,083,277 | ||||||
Other Assets, Less Liabilities — 0.43% |
| 5,613,691 | ||||||
|
| |||||||
NET ASSETS — 100.00% |
| $ | 1,319,696,968 | |||||
|
|
a | Non-income producing security. |
b | Affiliate of the Fund. |
c | Annualized 7-day yield as of period end. |
Affiliates (Note 2)
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows:
Affiliated issuer | Shares held at 08/31/17 | Shares purchased | Shares sold | Shares held at 02/28/18 | Value at 02/28/18 | Income | Net realized gain (loss) a | Change in unrealized appreciation (depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Treasury, | 609,567 | — | (438,160 | )b | 171,407 | $ | 171,407 | $ | 5,395 | $ | — | $ | — | |||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 171,407 | $ | 5,395 | $ | — | $ | — | |||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
a | Includes realized capital gain distributions from an affiliated fund, if any. |
b | Net of shares purchased and sold. |
Futures Contracts (Note 5)
Futures contracts outstanding as of February 28, 2018 were as follows:
Description | Number of contracts | Expiration date | Notional amount (000) | Value/ unrealized appreciation (depreciation) | ||||||||||||
Long Contracts: | ||||||||||||||||
Euro STOXX 50 | 127 | Mar 2018 | $ | 5,325 | $ | (193,892 | ) | |||||||||
|
| |||||||||||||||
SCHEDULESOF INVESTMENTS | 71 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SWITZERLAND ETF
February 28, 2018
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common stocks | $ | 1,313,911,870 | $ | — | $ | — | $ | 1,313,911,870 | ||||||||
Money market funds | 171,407 | — | — | 171,407 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 1,314,083,277 | $ | — | $ | — | $ | 1,314,083,277 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative financial instrumentsa | ||||||||||||||||
Liabilities | ||||||||||||||||
Futures contracts | $ | (193,892 | ) | $ | — | $ | — | $ | (193,892 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | (193,892 | ) | $ | — | $ | — | $ | (193,892 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
a | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
72 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Assets and Liabilities (Unaudited)
iSHARES®, INC.
February 28, 2018
iShares ETF | iShares MSCI Germany ETF | iShares ETF | ||||||||||
ASSETS | ||||||||||||
Investments in securities, at cost: | ||||||||||||
Unaffiliated | $ | 15,057,246,989 | $ | 4,336,077,252 | $ | 700,352,879 | ||||||
Affiliated (Note 2) | 59,345,983 | 27,079,802 | 171,861 | |||||||||
|
|
|
|
|
| |||||||
Total cost of investments in securities | $ | 15,116,592,972 | $ | 4,363,157,054 | $ | 700,524,740 | ||||||
|
|
|
|
|
| |||||||
Investments in securities, at fair value (including securities on loana) (Note 1): | ||||||||||||
Unaffiliated | $ | 16,002,800,296 | $ | 4,341,429,887 | $ | 709,266,861 | ||||||
Affiliated (Note 2) | 59,348,304 | 27,079,802 | 171,861 | |||||||||
Foreign currency, at valueb | 28,279,453 | 13,778,415 | 734,511 | |||||||||
Foreign currency pledged to broker for futures contracts, at valueb | 3,135,721 | 3,126,716 | 62,900 | |||||||||
Receivables: | ||||||||||||
Investment securities sold | 10,990,190 | 2,217,873 | 9,967,084 | |||||||||
Dividends and interest | 4,774,151 | 477,488 | 236 | |||||||||
Tax reclaims | 10,912,030 | 11,433,759 | — | |||||||||
Foreign withholding tax claims (Note 8) | 4,147,783 | — | — | |||||||||
|
|
|
|
|
| |||||||
Total Assets | 16,124,387,928 | 4,399,543,940 | 720,203,453 | |||||||||
|
|
|
|
|
| |||||||
LIABILITIES | ||||||||||||
Payables: | ||||||||||||
Investment securities purchased | 13,776,149 | 334,498 | 9,482,816 | |||||||||
Collateral for securities on loan (Note 1) | 56,813,313 | 25,403,301 | — | |||||||||
Capital shares redeemed | 1,021,424 | — | — | |||||||||
Futures variation margin | 172,706 | 1,300,437 | 2,748 | |||||||||
Professional fees (Note 8) | 41,478 | — | — | |||||||||
Investment advisory fees (Note 2) | 5,835,939 | 1,558,238 | 261,406 | |||||||||
|
|
|
|
|
| |||||||
Total Liabilities | 77,661,009 | 28,596,474 | 9,746,970 | |||||||||
|
|
|
|
|
| |||||||
NET ASSETS | $ | 16,046,726,919 | $ | 4,370,947,466 | $ | 710,456,483 | ||||||
|
|
|
|
|
| |||||||
Net assets consist of: | ||||||||||||
Paid-in capital | $ | 15,494,119,968 | $ | 4,413,513,704 | $ | 897,026,658 | ||||||
Undistributed net investment income | 16,586,954 | 299,900 | 2,039,546 | |||||||||
Accumulated net realized loss | (408,649,828 | ) | (47,705,107 | ) | (197,482,440 | ) | ||||||
Net unrealized appreciation | 944,669,825 | 4,838,969 | 8,872,719 | |||||||||
|
|
|
|
|
| |||||||
NET ASSETS | $ | 16,046,726,919 | $ | 4,370,947,466 | $ | 710,456,483 | ||||||
|
|
|
|
|
| |||||||
Shares outstandingc | 365,800,000 | 134,100,000 | 22,275,000 | |||||||||
|
|
|
|
|
| |||||||
Net asset value per share | $ | 43.87 | $ | 32.59 | $ | 31.89 | ||||||
|
|
|
|
|
|
a | Securities on loan with values of $54,253,279, $24,221,702 and $ —, respectively. See Note 1. |
b | Cost of foreign currency including currency pledged to broker for futures contracts: $31,699,841, $17,125,313 and $744,896, respectively. |
c | $0.001 par value, number of shares authorized: 1 billion, 482.2 million and 295.4 million, respectively. |
See notes to financial statements.
FINANCIAL STATEMENTS | 73 |
Table of Contents
Statements of Assets and Liabilities (Unaudited) (Continued)
iSHARES®, INC.
February 28, 2018
iShares MSCI Spain ETF | iShares MSCI Switzerland ETF | |||||||
ASSETS | ||||||||
Investments in securities, at cost: | ||||||||
Unaffiliated | $ | 1,194,053,518 | $ | 1,297,265,346 | ||||
Affiliated (Note 2) | 17,873,539 | 171,407 | ||||||
|
|
|
| |||||
Total cost of investments in securities | $ | 1,211,927,057 | $ | 1,297,436,753 | ||||
|
|
|
| |||||
Investments in securities, at fair value (including securities on loana) (Note 1): | ||||||||
Unaffiliated | $ | 1,081,008,512 | $ | 1,313,911,870 | ||||
Affiliated (Note 2) | 17,872,242 | 171,407 | ||||||
Foreign currency, at valueb | 1,242,372 | 1,079,928 | ||||||
Foreign currency pledged to broker for futures contracts, at valueb | 126,917 | 299,644 | ||||||
Receivables: | ||||||||
Investment securities sold | 8,139,180 | 31,510,192 | ||||||
Due from custodian (Note 4) | 42,124,829 | — | ||||||
Dividends and interest | 9,230 | 75,061 | ||||||
Capital shares sold | — | 537,085 | ||||||
Tax reclaims | 86,626 | 4,328,129 | ||||||
|
|
|
| |||||
Total Assets | 1,150,609,908 | 1,351,913,316 | ||||||
|
|
|
| |||||
LIABILITIES | ||||||||
Payables: | ||||||||
Investment securities purchased | 52,224,538 | 31,726,306 | ||||||
Collateral for securities on loan (Note 1) | 15,073,055 | — | ||||||
Futures variation margin | 9,996 | 21,085 | ||||||
Investment advisory fees (Note 2) | 352,769 | 468,957 | ||||||
|
|
|
| |||||
Total Liabilities | 67,660,358 | 32,216,348 | ||||||
|
|
|
| |||||
NET ASSETS | $ | 1,082,949,550 | $ | 1,319,696,968 | ||||
|
|
|
| |||||
Net assets consist of: | ||||||||
Paid-in capital | $ | 1,306,889,417 | $ | 1,361,856,670 | ||||
Undistributed (distributions in excess of) net investment income | 3,979,123 | (3,760,168 | ) | |||||
Accumulated net realized loss | (114,845,902 | ) | (55,081,710 | ) | ||||
Net unrealized appreciation (depreciation) | (113,073,088 | ) | 16,682,176 | |||||
|
|
|
| |||||
NET ASSETS | $ | 1,082,949,550 | $ | 1,319,696,968 | ||||
|
|
|
| |||||
Shares outstandingc | 32,775,000 | 37,750,000 | ||||||
|
|
|
| |||||
Net asset value per share | $ | 33.04 | $ | 34.96 | ||||
|
|
|
|
a | Securities on loan with values of $14,395,739 and $ —, respectively. See Note 1. |
b | Cost of foreign currency including currency pledged to broker for futures contracts: $1,269,496 and $1,086,756, respectively. |
c | $0.001 par value, number of shares authorized: 127.8 million and 318.625 million, respectively. |
See notes to financial statements.
74 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Operations (Unaudited)
iSHARES®, INC.
Six months ended February 28, 2018
iShares MSCI Eurozone ETF | iShares MSCI Germany ETF | iShares ETF | ||||||||||
NET INVESTMENT INCOME | ||||||||||||
Dividends — unaffiliateda | $ | 71,774,206 | $ | 10,968,182 | $ | 6,101,061 | ||||||
Dividends — affiliated (Note 2) | 37,259 | 7,757 | 2,400 | |||||||||
Securities lending income — affiliated — net (Note 2) | 547,697 | 270,933 | 1,290 | |||||||||
Non-cash dividends — unaffiliated | 8,126,545 | — | — | |||||||||
|
|
|
|
|
| |||||||
Total investment income | 80,485,707 | 11,246,872 | 6,104,751 | |||||||||
|
|
|
|
|
| |||||||
EXPENSES | ||||||||||||
Investment advisory fees (Note 2) | 35,257,572 | 10,946,495 | 1,829,604 | |||||||||
Proxy fees | 1,158 | 521 | 64 | |||||||||
|
|
|
|
|
| |||||||
Total expenses | 35,258,730 | 10,947,016 | 1,829,668 | |||||||||
|
|
|
|
|
| |||||||
Net investment income | 45,226,977 | 299,856 | 4,275,083 | |||||||||
|
|
|
|
|
| |||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||
Net realized gain (loss) from: | ||||||||||||
Investments — unaffiliated | (71,477,636 | ) | (19,634,095 | ) | (1,368,563 | ) | ||||||
Investments — affiliated (Note 2) | (4,091 | ) | (6,615 | ) | (205 | ) | ||||||
In-kind redemptions — unaffiliated | 180,445,446 | 182,002,829 | 39,386,690 | |||||||||
Futures contracts | (146,532 | ) | 911,841 | 16,010 | ||||||||
Foreign currency transactions | 2,278,391 | 1,068,271 | 78,340 | |||||||||
|
|
|
|
|
| |||||||
Net realized gain | 111,095,578 | 164,342,231 | 38,112,272 | |||||||||
|
|
|
|
|
| |||||||
Net change in unrealized appreciation/depreciation on: | ||||||||||||
Investments — unaffiliated | 591,610,402 | 150,934,109 | 4,029,646 | |||||||||
Investments — affiliated (Note 2) | (6,717 | ) | — | — | ||||||||
Futures contracts | (1,822,579 | ) | 249,959 | (30,878 | ) | |||||||
Translation of assets and liabilities in foreign currencies | (622,227 | ) | (847,703 | ) | (15,421 | ) | ||||||
|
|
|
|
|
| |||||||
Net change in unrealized appreciation/depreciation | 589,158,879 | 150,336,365 | 3,983,347 | |||||||||
|
|
|
|
|
| |||||||
Net realized and unrealized gain | 700,254,457 | 314,678,596 | 42,095,619 | |||||||||
|
|
|
|
|
| |||||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 745,481,434 | $ | 314,978,452 | $ | 46,370,702 | ||||||
|
|
|
|
|
|
a | Net of foreign withholding tax of $9,674,690, $1,692,110 and $1,048,817, respectively. |
See notes to financial statements.
FINANCIAL STATEMENTS | 75 |
Table of Contents
Statements of Operations (Unaudited) (Continued)
iSHARES®, INC.
Six months ended February 28, 2018
iShares ETF | iShares MSCI Switzerland ETF | |||||||
NET INVESTMENT INCOME | ||||||||
Dividends — unaffiliateda | $ | 9,912,823 | $ | (396,113 | )b | |||
Dividends — affiliated (Note 2) | 4,699 | 5,395 | ||||||
Securities lending income — affiliated — net (Note 2) | 22,833 | — | ||||||
Non-cash dividends — unaffiliated | 5,010,762 | — | ||||||
|
|
|
| |||||
Total investment income | 14,951,117 | (390,718 | ) | |||||
|
|
|
| |||||
EXPENSES | ||||||||
Investment advisory fees (Note 2) | 2,596,902 | 3,000,019 | ||||||
Proxy fees | 137 | 123 | ||||||
|
|
|
| |||||
Total expenses | 2,597,039 | 3,000,142 | ||||||
|
|
|
| |||||
Net investment income (loss) | 12,354,078 | (3,390,860 | ) | |||||
|
|
|
| |||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||
Net realized gain (loss) from: | ||||||||
Investments — unaffiliated | (15,584,529 | ) | (3,517,484 | ) | ||||
Investments — affiliated (Note 2) | (1,350 | ) | — | |||||
In-kind redemptions — unaffiliated | 94,495,879 | 19,944,111 | ||||||
Futures contracts | (187,432 | ) | 301,595 | |||||
Foreign currency transactions | 171,271 | (324,520 | ) | |||||
|
|
|
| |||||
Net realized gain | 78,893,839 | 16,403,702 | ||||||
|
|
|
| |||||
Net change in unrealized appreciation/depreciation on: | ||||||||
Investments — unaffiliated | (100,808,097 | ) | 12,737,925 | |||||
Investments — affiliated (Note 2) | (1,297 | ) | — | |||||
Futures contracts | 1,836 | (193,892 | ) | |||||
Translation of assets and liabilities in foreign currencies | (35,520 | ) | 289,530 | |||||
|
|
|
| |||||
Net change in unrealized appreciation/depreciation | (100,843,078 | ) | 12,833,563 | |||||
|
|
|
| |||||
Net realized and unrealized gain (loss) | (21,949,239 | ) | 29,237,265 | |||||
|
|
|
| |||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | (9,595,161 | ) | $ | 25,846,405 | |||
|
|
|
|
a | Net of foreign withholding tax of $1,750,903 and $1,570,731, respectively. |
b | Includes prior period adjustment for withholding taxes of $1,372,743. |
See notes to financial statements.
76 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Changes in Net Assets
iSHARES®, INC.
iShares MSCI Eurozone ETF | iShares MSCI Germany ETF | |||||||||||||||
Six months ended February 28, 2018 (Unaudited) | Year ended August 31, 2017 | Six months February 28, 2018 (Unaudited) | Year ended August 31, 2017 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income | $ | 45,226,977 | $ | 250,039,419 | $ | 299,856 | $ | 89,451,626 | ||||||||
Net realized gain (loss) | 111,095,578 | (107,531,785 | ) | 164,342,231 | 81,994,943 | |||||||||||
Net change in unrealized appreciation/depreciation | 589,158,879 | 1,981,250,890 | 150,336,365 | 639,971,332 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase in net assets resulting from operations | 745,481,434 | 2,123,758,524 | 314,978,452 | 811,417,901 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
From net investment income | (68,246,680 | ) | (251,508,888 | ) | (11,828,503 | ) | (101,663,169 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions to shareholders | (68,246,680 | ) | (251,508,888 | ) | (11,828,503 | ) | (101,663,169 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Proceeds from shares sold | 2,935,443,308 | 5,075,719,442 | 217,762,225 | 1,344,475,553 | ||||||||||||
Cost of shares redeemed | (852,167,067 | ) | (1,955,344,002 | ) | (959,864,204 | ) | (841,232,745 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets from capital share transactions | 2,083,276,241 | 3,120,375,440 | (742,101,979 | ) | 503,242,808 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
INCREASE (DECREASE) IN NET ASSETS | 2,760,510,995 | 4,992,625,076 | (438,952,030 | ) | 1,212,997,540 | |||||||||||
NET ASSETS | ||||||||||||||||
Beginning of period | 13,286,215,924 | 8,293,590,848 | 4,809,899,496 | 3,596,901,956 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 16,046,726,919 | $ | 13,286,215,924 | $ | 4,370,947,466 | $ | 4,809,899,496 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed net investment income included in net assets at end of period | $ | 16,586,954 | $ | 39,606,657 | $ | 299,900 | $ | 11,828,547 | ||||||||
|
|
|
|
|
|
|
| |||||||||
SHARES ISSUED AND REDEEMED | ||||||||||||||||
Shares sold | 66,900,000 | 130,800,000 | 6,600,000 | 47,700,000 | ||||||||||||
Shares redeemed | (19,600,000 | ) | (54,800,000 | ) | (29,100,000 | ) | (28,500,000 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in shares outstanding | 47,300,000 | 76,000,000 | (22,500,000 | ) | 19,200,000 | |||||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
FINANCIAL STATEMENTS | 77 |
Table of Contents
Statements of Changes in Net Assets (Continued)
iSHARES®, INC.
iShares MSCI Italy ETF | iShares MSCI Spain ETF | |||||||||||||||
Six months ended February 28, 2018 (Unaudited) | Year ended August 31, 2017a | Six months February 28, 2018 (Unaudited) | Year ended August 31, 2017 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income | $ | 4,275,083 | $ | 14,617,536 | $ | 12,354,078 | $ | 29,663,738 | ||||||||
Net realized gain (loss) | 38,112,272 | (44,661,565 | ) | 78,893,839 | (76,940,027 | ) | ||||||||||
Net change in unrealized appreciation/depreciation | 3,983,347 | 222,005,377 | (100,843,078 | ) | 304,908,943 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | 46,370,702 | 191,961,348 | (9,595,161 | ) | 257,632,654 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
From net investment income | (4,045,646 | ) | (15,689,552 | ) | (17,718,786 | ) | (28,748,503 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions to shareholders | (4,045,646 | ) | (15,689,552 | ) | (17,718,786 | ) | (28,748,503 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Proceeds from shares sold | 60,641,414 | 478,934,035 | 238,884,886 | 827,558,231 | ||||||||||||
Cost of shares redeemed | (233,140,414 | ) | (275,606,026 | ) | (657,154,880 | ) | (127,852,787 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets from capital share transactions | (172,499,000 | ) | 203,328,009 | (418,269,994 | ) | 699,705,444 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
INCREASE (DECREASE) IN NET ASSETS | (130,173,944 | ) | 379,599,805 | (445,583,941 | ) | 928,589,595 | ||||||||||
NET ASSETS | ||||||||||||||||
Beginning of period | 840,630,427 | 461,030,622 | 1,528,533,491 | 599,943,896 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 710,456,483 | $ | 840,630,427 | $ | 1,082,949,550 | $ | 1,528,533,491 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed net investment income included in net assets at end of period | $ | 2,039,546 | $ | 1,810,109 | $ | 3,979,123 | $ | 9,343,831 | ||||||||
|
|
|
|
|
|
|
| |||||||||
SHARES ISSUED AND REDEEMED | ||||||||||||||||
Shares sold | 1,950,000 | 20,625,000 | 7,200,000 | 27,300,000 | ||||||||||||
Shares redeemed | (7,500,000 | ) | (13,200,000 | ) | (19,875,000 | ) | (4,500,000 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in shares outstanding | (5,550,000 | ) | 7,425,000 | (12,675,000 | ) | 22,800,000 | ||||||||||
|
|
|
|
|
|
|
|
a | Share transactions reflect a one-for-two reverse stock split effective after the close of trading on November 4, 2016. |
See notes to financial statements.
78 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Changes in Net Assets (Continued)
iSHARES®, INC.
iShares MSCI Switzerland ETF | ||||||||
Six months ended February 28, 2018 (Unaudited) | Year ended August 31, 2017 | |||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||
OPERATIONS: | ||||||||
Net investment income (loss) | $ | (3,390,860 | ) | $ | 23,926,958 | |||
Net realized gain | 16,403,702 | 30,303,367 | ||||||
Net change in unrealized appreciation/depreciation | 12,833,563 | 106,883,974 | ||||||
|
|
|
| |||||
Net increase in net assets resulting from operations | 25,846,405 | 161,114,299 | ||||||
|
|
|
| |||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||
From net investment income | — | (25,105,668 | ) | |||||
|
|
|
| |||||
Total distributions to shareholders | — | (25,105,668 | ) | |||||
|
|
|
| |||||
CAPITAL SHARE TRANSACTIONS: | ||||||||
Proceeds from shares sold | 165,794,422 | 196,663,250 | ||||||
Cost of shares redeemed | (131,201,522 | ) | (165,149,192 | ) | ||||
|
|
|
| |||||
Net increase in net assets from capital share transactions | 34,592,900 | 31,514,058 | ||||||
|
|
|
| |||||
INCREASE IN NET ASSETS | 60,439,305 | 167,522,689 | ||||||
NET ASSETS | ||||||||
Beginning of period | 1,259,257,663 | 1,091,734,974 | ||||||
|
|
|
| |||||
End of period | $ | 1,319,696,968 | $ | 1,259,257,663 | ||||
|
|
|
| |||||
Distributions in excess of net investment income included in net assets at end of period | $ | (3,760,168 | ) | $ | (369,308 | ) | ||
|
|
|
| |||||
SHARES ISSUED AND REDEEMED | ||||||||
Shares sold | 4,750,000 | 5,875,000 | ||||||
Shares redeemed | (3,750,000 | ) | (5,250,000 | ) | ||||
|
|
|
| |||||
Net increase in shares outstanding | 1,000,000 | 625,000 | ||||||
|
|
|
|
See notes to financial statements.
FINANCIAL STATEMENTS | 79 |
Table of Contents
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Eurozone ETF | ||||||||||||||||||||||||
Six months Feb. 28, 2018 | Year ended Aug. 31, 2017 | Year ended Aug. 31, 2016 | Year ended Aug. 31, 2015 | Year ended Aug. 31, 2014 | Year ended Aug. 31, 2013 | |||||||||||||||||||
Net asset value, beginning of period | $ | 41.71 | $ | 34.20 | $ | 36.04 | $ | 39.98 | $ | 34.64 | $ | 29.09 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.13 | 0.99 | 0.92 | b | 0.96 | 1.18 | 0.92 | |||||||||||||||||
Net realized and unrealized gain (loss)c | 2.22 | 7.38 | (1.84 | ) | (3.95 | ) | 5.10 | 5.55 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 2.35 | 8.37 | (0.92 | ) | (2.99 | ) | 6.28 | 6.47 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.19 | ) | (0.86 | ) | (0.92 | ) | (0.95 | ) | (0.94 | ) | (0.92 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | (0.19 | ) | (0.86 | ) | (0.92 | ) | (0.95 | ) | (0.94 | ) | (0.92 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 43.87 | $ | 41.71 | $ | 34.20 | $ | 36.04 | $ | 39.98 | $ | 34.64 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total return | 5.62 | %d | 24.72 | % | (2.53 | )%b | (7.62 | )% | 18.02 | % | 22.43 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 16,046,727 | $ | 13,286,216 | $ | 8,293,591 | $ | 10,134,616 | $ | 8,702,637 | $ | 3,539,980 | ||||||||||||
Ratio of expenses to average net assetse | 0.47 | % | 0.49 | % | 0.48 | % | 0.48 | % | 0.48 | % | 0.50 | % | ||||||||||||
Ratio of expenses to average net assets excluding professional fees for foreign withholding tax claims (Note 8)e | n/a | 0.49 | % | 0.48 | % | n/a | n/a | n/a | ||||||||||||||||
Ratio of net investment income to average net assetse | 0.61 | % | 2.63 | % | 2.69 | %b | 2.50 | % | 2.89 | % | 2.74 | % | ||||||||||||
Portfolio turnover ratef | 2 | %d | 4 | % | 4 | % | 5 | % | 7 | % | 5 | % |
a | Based on average shares outstanding throughout each period. |
b | Reflects the positive effect of foreign withholding tax claims, net of the associated professional fees (See Note 8), which resulted in the following increases for the year ended August 31, 2016: |
• Net investment income per share by $0.02. |
• Total return by 0.08%. |
• Ratio of net investment income to average net assets by 0.06%. |
c | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
d | Not annualized. |
e | Annualized for periods of less than one year. |
f | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
80 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Germany ETF | ||||||||||||||||||||||||
Six months Feb. 28, 2018 | Year ended Aug. 31, 2017 | Year ended Aug. 31, 2016 | Year ended Aug. 31, 2015 | Year ended Aug. 31, 2014 | Year ended Aug. 31, 2013 | |||||||||||||||||||
Net asset value, beginning of period | $ | 30.71 | $ | 26.18 | $ | 26.34 | $ | 28.97 | $ | 25.61 | $ | 21.34 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.00 | b | 0.59 | 0.49 | 0.58 | 0.59 | 0.46 | |||||||||||||||||
Net realized and unrealized gain (loss)c | 1.96 | 4.54 | (0.04 | ) | (2.70 | ) | 3.40 | 4.24 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 1.96 | 5.13 | 0.45 | (2.12 | ) | 3.99 | 4.70 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.08 | ) | (0.60 | ) | (0.61 | ) | (0.51 | ) | (0.63 | ) | (0.43 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | (0.08 | ) | (0.60 | ) | (0.61 | ) | (0.51 | ) | (0.63 | ) | (0.43 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 32.59 | $ | 30.71 | $ | 26.18 | $ | 26.34 | $ | 28.97 | $ | 25.61 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total return | 6.39 | %d | 19.63 | % | 1.81 | % | (7.50 | )% | 15.41 | % | 22.11 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 4,370,947 | $ | 4,809,899 | $ | 3,596,902 | $ | 6,607,056 | $ | 4,797,434 | $ | 4,655,875 | ||||||||||||
Ratio of expenses to average net assetse | 0.47 | % | 0.49 | % | 0.48 | % | 0.48 | % | 0.48 | % | 0.51 | % | ||||||||||||
Ratio of net investment income to average net assetse | 0.01 | % | 2.08 | % | 1.90 | % | 2.03 | % | 1.95 | % | 1.88 | % | ||||||||||||
Portfolio turnover ratef | 3 | %d | 3 | % | 3 | % | 3 | % | 6 | % | 4 | % |
a | Based on average shares outstanding throughout each period. |
b | Rounds to less than $0.01. |
c | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
d | Not annualized. |
e | Annualized for periods of less than one year. |
f | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 81 |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Italy ETF | ||||||||||||||||||||||||
Six months Feb. 28, 2018 | Year ended Aug. 31, 2017a | Year ended Aug. 31, 2016a | Year ended Aug. 31, 2015a | Year ended Aug. 31, 2014a | Year ended Aug. 31, 2013a | |||||||||||||||||||
Net asset value, beginning of period | $ | 30.21 | $ | 22.60 | $ | 29.50 | $ | 32.03 | $ | 26.12 | $ | 23.57 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomeb | 0.17 | 0.57 | 0.66 | 0.70 | 0.82 | 0.72 | ||||||||||||||||||
Net realized and unrealized gain (loss)c | 1.68 | 7.76 | (6.82 | ) | (2.49 | ) | 5.77 | 2.45 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 1.85 | 8.33 | (6.16 | ) | (1.79 | ) | 6.59 | 3.17 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.17 | ) | (0.72 | ) | (0.72 | ) | (0.74 | ) | (0.68 | ) | (0.60 | ) | ||||||||||||
Return of capital | — | — | (0.02 | ) | — | — | (0.02 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | (0.17 | ) | (0.72 | ) | (0.74 | ) | (0.74 | ) | (0.68 | ) | (0.62 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 31.89 | $ | 30.21 | $ | 22.60 | $ | 29.50 | $ | 32.03 | $ | 26.12 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total return | 6.18 | %d | 37.37 | % | (20.97 | )% | (5.66 | )% | 25.20 | % | 13.58 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 710,456 | $ | 840,630 | $ | 461,031 | $ | 1,077,437 | $ | 1,556,860 | $ | 717,122 | ||||||||||||
Ratio of expenses to average net assetse | 0.47 | % | 0.49 | % | 0.48 | % | 0.48 | % | 0.48 | % | 0.50 | % | ||||||||||||
Ratio of net investment income to average net assetse | 1.10 | % | 2.59 | % | 2.54 | % | 2.34 | % | 2.49 | % | 2.78 | % | ||||||||||||
Portfolio turnover ratef | 4 | %d | 18 | % | 16 | % | 22 | % | 24 | % | 45 | % |
a | Per share amounts reflect a one-for-two reverse stock split effective after the close of trading on November 4, 2016. |
b | Based on average shares outstanding throughout each period. |
c | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
d | Not annualized. |
e | Annualized for periods of less than one year. |
f | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
82 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Spain ETF | ||||||||||||||||||||||||
Six months Feb. 28, 2018 | Year ended Aug. 31, 2017 | Year ended Aug. 31, 2016 | Year ended Aug. 31, 2015 | Year ended Aug. 31, 2014 | Year ended Aug. 31, 2013 | |||||||||||||||||||
Net asset value, beginning of period | $ | 33.63 | $ | 26.49 | $ | 31.96 | $ | 40.61 | $ | 30.44 | $ | 26.28 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.37 | 0.94 | 1.00 | 1.32 | 1.80 | 1.33 | ||||||||||||||||||
Net realized and unrealized gain (loss)b | (0.38 | ) | 7.19 | (5.40 | ) | (8.35 | ) | 9.53 | 4.07 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | (0.01 | ) | 8.13 | (4.40 | ) | (7.03 | ) | 11.33 | 5.40 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.58 | ) | (0.99 | ) | (1.07 | ) | (1.62 | ) | (1.16 | ) | (1.24 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | (0.58 | ) | (0.99 | ) | (1.07 | ) | (1.62 | ) | (1.16 | ) | (1.24 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 33.04 | $ | 33.63 | $ | 26.49 | $ | 31.96 | $ | 40.61 | $ | 30.44 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total return | (0.02 | )%c | 31.48 | % | (13.82 | )% | (17.63 | )% | 37.39 | % | 20.88 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 1,082,950 | $ | 1,528,533 | $ | 599,944 | $ | 1,666,091 | $ | 2,473,038 | $ | 417,778 | ||||||||||||
Ratio of expenses to average net assetsd | 0.47 | % | 0.49 | % | 0.48 | % | 0.48 | % | 0.48 | % | 0.51 | % | ||||||||||||
Ratio of net investment income to average net assetsd | 2.25 | % | 3.10 | % | 3.53 | % | 3.70 | % | 4.48 | % | 4.45 | % | ||||||||||||
Portfolio turnover ratee | 9 | %c | 16 | % | 9 | % | 15 | % | 15 | % | 24 | % |
a | Based on average shares outstanding throughout each period. |
b | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 83 |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Switzerland ETF | ||||||||||||||||||||||||
Six months Feb. 28, 2018 | Year ended Aug. 31, 2017 | Year ended Aug. 31, 2016 | Year ended Aug. 31, 2015 | Year ended Aug. 31, 2014 | Year ended Aug. 31, 2013 | |||||||||||||||||||
Net asset value, beginning of period | $ | 34.27 | $ | 30.22 | $ | 31.90 | $ | 33.64 | $ | 29.36 | $ | 23.85 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)a | (0.09 | ) | 0.69 | 0.81 | 0.83 | 0.80 | 0.67 | |||||||||||||||||
Net realized and unrealized gain (loss)b | 0.78 | 4.11 | (1.70 | ) | (1.77 | ) | 4.27 | 5.44 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 0.69 | 4.80 | (0.89 | ) | (0.94 | ) | 5.07 | 6.11 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | — | (0.75 | ) | (0.79 | ) | (0.80 | ) | (0.79 | ) | (0.60 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | — | (0.75 | ) | (0.79 | ) | (0.80 | ) | (0.79 | ) | (0.60 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 34.96 | $ | 34.27 | $ | 30.22 | $ | 31.90 | $ | 33.64 | $ | 29.36 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total return | 2.01 | %c | 15.90 | % | (2.76 | )% | (2.92 | )% | 17.21 | % | 25.71 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 1,319,697 | $ | 1,259,258 | $ | 1,091,735 | $ | 1,200,164 | $ | 1,072,157 | $ | 902,860 | ||||||||||||
Ratio of expenses to average net assetsd | 0.47 | % | 0.49 | % | 0.48 | % | 0.48 | % | 0.48 | % | 0.51 | % | ||||||||||||
Ratio of net investment income (loss) to average net assetsd | (0.53 | )% | 2.18 | % | 2.68 | % | 2.49 | % | 2.41 | % | 2.38 | % | ||||||||||||
Portfolio turnover ratee | 3 | %c | 13 | % | 6 | % | 7 | % | 5 | % | 13 | % |
a | Based on average shares outstanding throughout each period. |
b | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
84 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited)
iSHARES®, INC.
iShares, Inc. (the “Company”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Company was incorporated under the laws of the State of Maryland on September 1, 1994 pursuant to Articles of Incorporation as subsequently amended and restated.
These financial statements relate only to the following funds (each, a “Fund,” and collectively, the “Funds”):
iShares ETF | Former Name | Diversification Classification | ||
MSCI Eurozone | N/A | Diversified | ||
MSCI Germany | N/A | Non-diversified | ||
MSCI Italy | iShares MSCI Italy Capped ETF | Non-diversified | ||
MSCI Spain | iShares MSCI Spain Capped ETF | Non-diversified | ||
MSCI Switzerland | iShares MSCI Switzerland Capped ETF | Non-diversified |
The investment objective of each Fund is to seek investment results that correspond generally to the price and yield performance, before fees and expenses, of its underlying index. The investment adviser uses a “passive” or index approach to try to achieve each Fund’s investment objective.
Pursuant to the Company’s organizational documents, the Funds’ officers and directors are indemnified against certain liabilities that may arise out of the performance of their duties to the Funds. Additionally, in the normal course of business, the Funds enter into contracts with service providers that contain general indemnification clauses. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred.
1. | SIGNIFICANT ACCOUNTING POLICIES |
The following significant accounting policies are consistently followed by each Fund in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies.
SECURITY VALUATION
Each Fund’s investments are valued at fair value each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date should the reporting period end on a day that the Fund’s listing exchange is not open. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) provides oversight of the valuation of investments for the Funds. The investments of each Fund are valued pursuant to policies and procedures developed by the Global Valuation Committee and approved by the Board of Directors of the Company (the “Board”).
• | Equity investments traded on a recognized securities exchange are valued at that day’s last reported trade price or the official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price. |
NOTESTO FINANCIAL STATEMENTS | 85 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
• | Open-end U.S. mutual funds (including money market funds) are valued at that day’s published net asset value (“NAV”). |
• | Futures contract notional values are determined based on that day’s last reported settlement price on the exchange where the contract is traded. |
In the event that application of these methods of valuation results in a price for an investment which is deemed not to be representative of the fair value of such investment or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board. The fair valuation approaches that may be utilized by the Global Valuation Committee to determine fair value include market approach, income approach and the cost approach. The valuation techniques used under these approaches take into consideration inputs that include but are not limited to (i) attributes specific to the investment; (ii) the principal market for the investment; (iii) the customary participants in the principal market for the investment; (iv) data assumptions by market participants for the investment, if reasonably available; (v) quoted prices for similar investments in active markets; and (vi) other inputs, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates. Valuations based on such inputs are reported to the Board on a quarterly basis.
The Global Valuation Committee employs various methods for calibrating valuation approaches for investments where an active market does not exist, including regular due diligence of the Company’s pricing vendors, a regular review of key inputs and assumptions, transactional back-testing or disposition analysis to compare unrealized gains and losses to realized gains and losses, reviews of missing or stale prices, reviews of large movements in market values, and reviews of market related activity.
Fair value pricing could result in a difference between the prices used to calculate a Fund’s NAV and the prices used by the Fund’s underlying index, which in turn could result in a difference between the Fund’s performance and the performance of the Fund’s underlying index.
Various inputs are used in determining the fair value of financial instruments. Inputs may be based on independent market data (“observable inputs”) or they may be internally developed (“unobservable inputs”). These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:
• | Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities; |
• | Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability (such as exchange rates, financing terms, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and |
• | Level 3 — Unobservable inputs for the asset or liability based on the best information available in the circumstances, to the extent observable inputs are not available, including the Global Valuation Committee’s assumptions used in determining the fair value of investments. |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgement exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value hierarchy for each Fund’s investments is included in its schedule of investments.
86 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
Changes in valuation techniques may result in transfers in or out of an assigned level within the fair value hierarchy. In accordance with the Company’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of values determined for financial instruments are based on the pricing transparency of the financial instruments and are not necessarily an indication of the risks associated with investing in those securities.
SECURITY TRANSACTIONS AND INCOME RECOGNITION
Security transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recognized on the ex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities as of February 28, 2018 are reflected in tax reclaims receivable. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be re-designated as a return of capital or capital gain. Non-cash dividends, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Distributions received by the Funds may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. Interest income is accrued daily.
FOREIGN CURRENCY TRANSLATION
The accounting records of the Funds are maintained in U.S. dollars. Foreign currencies, as well as investment securities and other assets and liabilities denominated in foreign currencies, are translated into U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of securities, income receipts and expense payments are translated into U.S. dollars on the respective dates of such transactions.
Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of securities. Such fluctuations are reflected by the Funds as a component of realized and unrealized gains and losses from investments for financial reporting purposes. Each Fund reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes.
FOREIGN TAXES
The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Funds invest. These foreign taxes, if any, are paid by the Funds and are reflected in their statements of operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of February 28, 2018, if any, are disclosed in the Funds’ statements of assets and liabilities.
DISTRIBUTIONS TO SHAREHOLDERS
Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds.
NOTESTO FINANCIAL STATEMENTS | 87 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
LOANS OF PORTFOLIO SECURITIES
Each Fund may lend its investment securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by an approved bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Funds. Any additional required collateral is delivered to the Funds and any excess collateral is returned by the Funds on the next business day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.
Cash received as collateral for securities on loan may be reinvested in certain short-term instruments either directly on behalf of a fund or through one or more joint accounts or money market funds, including those managed by BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, or its affiliates. As of February 28, 2018, any securities on loan were collateralized by cash and/or U.S. government obligations. Cash collateral received was invested in money market funds managed by BFA and is disclosed in the schedules of investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan for each Fund are also disclosed in its schedule of investments. The total value of any securities on loan as of February 28, 2018 and the total value of the related cash collateral are disclosed in the statements of assets and liabilities. Income earned by the Funds from securities lending is disclosed in the statements of operations.
The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Funds benefit from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of securities loaned if the collateral received does not cover the value of the securities loaned in the event of borrower default. Each Fund could incur a loss if the value of an investment purchased with cash collateral falls below the value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received.
Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (“MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, a Fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. The value of the collateral is typically greater than that of the market value of the securities loaned, leaving the lender with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, the borrower can resell or re-pledge the loaned securities, and a Fund can reinvest cash collateral, or, upon an event of default, resell or re-pledge the collateral.
88 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
The following table is a summary of securities lending agreements which are subject to offset under an MSLA as of February 28, 2018:
iShares ETF and Counterparty | Market Value of Securities on Loan | Cash Collateral Received a | Net Amount | |||||||||
MSCI Eurozone | ||||||||||||
Barclays Capital Inc. | $ | 6,251,392 | $ | 6,251,392 | $ | — | ||||||
Citigroup Global Markets Inc. | 3,267,675 | 3,267,675 | — | |||||||||
Credit Suisse Securities (USA) LLC | 14,650,762 | 14,650,762 | — | |||||||||
Goldman Sachs & Co. | 139,899 | 139,899 | — | |||||||||
Merrill Lynch, Pierce, Fenner & Smith | 5,485,924 | 5,485,924 | — | |||||||||
Morgan Stanley & Co. LLC | 19,801,628 | 19,801,628 | — | |||||||||
UBS AG | 4,655,999 | 4,655,999 | — | |||||||||
|
|
|
|
|
| |||||||
$ | 54,253,279 | $ | 54,253,279 | $ | — | |||||||
|
|
|
|
|
| |||||||
MSCI Germany | ||||||||||||
Goldman Sachs & Co. | $ | 12,754,230 | $ | 12,754,230 | $ | — | ||||||
Morgan Stanley & Co. LLC | 11,467,472 | 11,467,472 | — | |||||||||
|
|
|
|
|
| |||||||
$ | 24,221,702 | $ | 24,221,702 | $ | — | |||||||
|
|
|
|
|
| |||||||
MSCI Spain | ||||||||||||
Citigroup Global Markets Inc. | $ | 3,768,876 | $ | 3,768,876 | $ | — | ||||||
Goldman Sachs & Co. | 10,626,863 | 10,626,863 | — | |||||||||
|
|
|
|
|
| |||||||
$ | 14,395,739 | $ | 14,395,739 | $ | — | |||||||
|
|
|
|
|
| |||||||
a | Collateral received in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Fund’s statement of assets and liabilities. |
2. | INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES |
Pursuant to an Investment Advisory Agreement with the Company, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent directors).
For its investment advisory services to each Fund, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, based on each Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:
Investment Advisory Fee | Aggregate Average Daily Net Assets | ||||
0.59 | % | First $7 billion | |||
0.54 | Over $7 billion, up to and including $11 billion | ||||
0.49 | Over $11 billion, up to and including $24 billion | ||||
0.44 | Over $24 billion, up to and including $48 billion | ||||
0.40 | Over $48 billion, up to and including $72 billion | ||||
0.36 | Over $72 billion, up to and including $96 billion | ||||
0.32 | Over $96 billion |
NOTESTO FINANCIAL STATEMENTS | 89 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
The U.S. Securities and Exchange Commission has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan in a money market fund managed by BFA, however, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04% (the “collateral investment fees”). Securities lending income is equal to the total of income earned from the reinvestment of cash collateral (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. The Funds retain a portion of securities lending income and remit the remaining portion to BTC as compensation for its services as securities lending agent.
Pursuant to a securities lending agreement, each Fund retains 80% of securities lending income and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees. In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in a given calendar year exceeds the aggregate securities lending income generated across the iShares ETF Complex in the calendar year 2013, each Fund, pursuant to a securities lending agreement, will retain for the remainder of that calendar year 85% of securities lending income and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
For the six months ended February 28, 2018, the total of securities lending agent services and collateral investment fees paid were as follows:
iShares ETF | Fees Paid to BTC | |||
MSCI Eurozone | $ | 123,223 | ||
MSCI Germany | 70,721 | |||
MSCI Italy | 299 | |||
MSCI Spain | 6,142 |
BlackRock Investments, LLC, an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.
Cross trading is the buying or selling of portfolio securities between funds to which BFA (or an affiliate) serves as investment adviser. At its regularly scheduled quarterly meetings, the Board reviews such transactions as of the most recent calendar quarter for compliance with the requirements and restrictions set forth by Rule 17a-7.
For the six months ended February 28, 2018, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:
iShares ETF | Purchases | Sales | ||||||
MSCI Eurozone | $ | 38,777,309 | $ | 34,157,805 | ||||
MSCI Germany | 21,940,688 | 7,836,754 | ||||||
MSCI Italy | 5,708,879 | 4,415,526 | ||||||
MSCI Spain | 22,403,278 | 8,860,253 | ||||||
MSCI Switzerland | 6,028,679 | 9,793,602 |
Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is included in “Dividends – affiliated” in the statements of operations.
90 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
It is possible that, from time to time, BlackRock and/or funds managed by BFA or an affiliate (collectively, “Affiliates”) may purchase and hold shares of the Fund. Affiliates reserve the right, subject to compliance with applicable law, to sell into the market or redeem in Creation Units through an authorized participant at any time some or all of the shares of the Fund acquired for their own accounts. A large sale or redemption of shares of the Fund by Affiliates could significantly reduce the asset size of the Fund, which might have an adverse effect on the Fund. As of February 28, 2018, the number of affiliated accounts that individually that individually represent more than 10% ownership of the Fund’s total shares outstanding and the aggregate percentage of net assets represented by such holdings were as follows:
iShares ETF | Number of Affiliated | Aggregate Ownership | ||||||
MSCI Eurozone | 1 | 13 | % | |||||
MSCI Germany | 1 | 14 | % |
The PNC Financial Services Group, Inc. is the largest stockholder of BlackRock and is considered to be an affiliate of the Funds for 1940 Act purposes.
Certain directors and officers of the Company are also officers of BTC and/or BFA.
3. | INVESTMENT PORTFOLIO TRANSACTIONS |
Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the six months ended February 28, 2018 were as follows:
iShares ETF | Purchases | Sales | ||||||
MSCI Eurozone | $ | 347,791,751 | $ | 308,468,772 | ||||
MSCI Germany | 131,241,905 | 134,485,699 | ||||||
MSCI Italy | 34,473,904 | 35,592,529 | ||||||
MSCI Spain | 107,096,580 | 119,570,660 | ||||||
MSCI Switzerland | 51,641,864 | 43,964,885 |
In-kind transactions (see Note 4) for the six months ended February 28, 2018 were as follows:
iShares ETF | In-kind Purchases | In-kind Sales | ||||||
MSCI Eurozone | $ | 2,844,178,488 | $ | 843,273,827 | ||||
MSCI Germany | 206,482,802 | 954,072,574 | ||||||
MSCI Italy | 56,954,894 | 228,052,283 | ||||||
MSCI Spain | 216,049,644 | 642,322,756 | ||||||
MSCI Switzerland | 161,748,668 | 127,026,624 |
4. | CAPITAL SHARE TRANSACTIONS |
Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable. Transactions in capital shares for each Fund are disclosed in detail in the statements of changes in net assets.
NOTESTO FINANCIAL STATEMENTS | 91 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
The consideration for the purchase of Creation Units of a fund in the Company generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Company may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to State Street Bank and Trust Company, the Company’s administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in “Proceeds from shares sold” in the statements of changes in net assets.
From time to time, settlement of securities related to in-kind contributions or in-kind redemptions may be delayed. In such cases, securities related to in-kind contributions are reflected as “Due from custodian” and securities related to in-kind redemptions are reflected as “Securities related to in-kind transactions” in the statements of assets and liabilities.
5. | FUTURES CONTRACTS |
Each Fund’s use of futures contracts is generally limited to cash equitization. This involves the use of available cash to invest in index futures contracts in order to gain exposure to the equity markets represented in or by the Fund’s underlying index and is intended to allow the Fund to better track its underlying index. Futures contracts are standardized, exchange-traded agreements to buy or sell a financial instrument at a set price on a future date. Upon entering into a futures contract, a fund is required to pledge to the executing broker which holds segregated from its own assets, an amount of cash, U.S. government securities or other high-quality debt and equity securities equal to the minimum initial margin requirements of the exchange on which the contract is traded.
Pursuant to the contract, the fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract. Such receipts or payments are known as margin variation and are recorded by the fund as unrealized appreciation or depreciation. When the contract is closed, the fund records a realized gain or loss equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. Losses may arise if the notional value of a futures contract decreases due to an unfavorable change in the market rates or values of the underlying instrument during the term of the contract or if the counterparty does not perform under the contract. The use of futures contracts also involves the risk of an imperfect correlation in the movements in the price of futures contracts and the assets underlying such contracts.
The following table shows the value of futures contracts held as of February 28, 2018 and the related locations in the statements of assets and liabilities, presented by risk exposure category:
Assets | ||||
iShares MSCI Spain ETF | ||||
Futures contracts: | ||||
Variation margin / Net assets consist of – net unrealized appreciation (depreciation) a | $ | 1,836 | ||
|
| |||
a | Represents cumulative appreciation of futures contracts as reported in the schedules of investments. Only current day’s variation margin is reported separately within the statements of assets and liabilities. |
92 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
Liabilities | ||||||||||||
iShares MSCI Eurozone ETF | iShares MSCI Germany ETF | iShares MSCI Italy ETF | ||||||||||
Futures contracts: | ||||||||||||
Variation margin / Net assets consist of – net unrealized appreciation (depreciation) b | $ | 1,822,579 | $ | 1,300,437 | $ | 30,878 | ||||||
|
|
|
|
|
|
Liabilities | ||||
iShares MSCI Switzerland ETF | ||||
Futures contracts: | ||||
Variation margin / Net assets consist of – net unrealized appreciation (depreciation) b | $ | 193,892 | ||
|
| |||
b | Represents cumulative depreciation of futures contracts as reported in the schedule of investments. Only current day’s variation margin is reported separately within the statement of assets and liabilities. |
The following table shows the realized and unrealized gains (losses) on futures contracts held during the six months ended February 28, 2018 and the related locations in the statements of operations, presented by risk exposure category:
Net Realized Gain (Loss) | ||||||||||||
iShares MSCI Eurozone ETF | iShares MSCI Germany ETF | iShares MSCI Italy ETF | ||||||||||
Futures contracts | $ | (146,532 | ) | $ | 976,061 | $ | 16,010 | |||||
|
|
|
|
|
| |||||||
Net Realized Gain (Loss) | ||||||||
iShares MSCI Spain ETF | iShares MSCI Switzerland ETF | |||||||
Futures contracts | $ | (187,432 | ) | $ | 301,595 | |||
|
|
|
|
Net Change in Unrealized Appreciation/Depreciation | ||||||||||||
iShares MSCI Eurozone ETF | iShares MSCI Germany ETF | iShares MSCI Italy ETF | ||||||||||
Futures contracts | $ | (1,822,579 | ) | $ | 249,959 | $ | (30,878 | ) | ||||
|
|
|
|
|
|
NOTESTO FINANCIAL STATEMENTS | 93 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
Net Change in Unrealized Appreciation/Depreciation | ||||||||
iShares MSCI Spain ETF | iShares MSCI Switzerland ETF | |||||||
Futures contracts | $ | 1,836 | $ | (193,892 | ) | |||
|
|
|
| |||||
The following table shows the average quarter-end balances of open futures contracts for the six months ended February 28, 2018:
iShares MSCI Eurozone ETF | iShares MSCI Germany ETF | iShares MSCI Italy ETF | ||||||||||
Average notional value of contracts purchased | $ | 32,059,059 | $ | 26,512,016 | $ | 721,828 |
iShares MSCI Spain ETF | iShares MSCI Switzerland ETF | |||||||
Average notional value of contracts purchased | $ | 1,006,227 | $ | 3,749,027 |
6. | PRINCIPAL RISKS |
In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Each Fund’s prospectus provides details of the risks to which the Fund is subject.
BFA uses a “passive” or index approach to try to achieve each Fund’s investment objective following the securities included in its underlying index during upturns as well as downturns. BFA does not take steps to reduce market exposure or to lessen the effects of a declining market. Divergence from the underlying index and the composition of the portfolio is monitored by BFA.
MARKET RISK
Market risk arises mainly from uncertainty about future values of financial instruments influenced by price, currency and interest rate movements. It represents the potential loss a fund may suffer through holding market positions in the face of market movements. A fund is exposed to market risk by its investment in equity, fixed income and/or financial derivative instruments or by its investment in underlying funds. The fair value of securities held by a fund may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. The extent of a fund’s exposure to market risk is the market value of the investments held as shown in the fund’s schedule of investments.
94 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its schedule of investments.
Investing in the securities of non-U.S. issuers involves certain considerations and risks not typically associated with securities of U.S. issuers. Such risks include, but are not limited to: differences in accounting, auditing and financial reporting standards; more substantial governmental involvement in the economy; higher inflation rates, greater social, economic and political uncertainties; possible nationalization or expropriation of assets; less availability of public information about issuers; imposition of withholding or other taxes; higher transaction and custody costs and delays in settlement procedures; and lower level of regulation of the securities markets and issuers. Non-U.S. securities may be less liquid, more difficult to value, and have greater price volatility due to exchange rate fluctuations. These and other risks are heightened for investments in issuers from countries with less developed capital markets.
The economies and markets of European countries are often closely connected and interdependent, and events in one country in Europe can have an adverse impact on other European countries. The European financial markets have experienced volatility and adverse trends in recent years due to concerns about economic downturns or rising government debt levels in several European countries. These events have adversely affected the exchange rate of the euro and may continue to significantly affect European countries. The occurrence of terrorist incidents throughout Europe also could impact financial markets. In addition, the United Kingdom has voted to withdraw from the European Union. The referendum may introduce significant new uncertainties and instability in the financial markets as the United Kingdom negotiates its exit from the European Union.
When a fund concentrates its investments in issuers located in a single country, it assumes the risk that economic, political and social conditions in that country may have a significant impact on its investment performance.
CREDIT RISK
Credit risk is the risk that an issuer or guarantor of debt instruments or the counterparty to a financial transaction, including derivatives contracts, repurchase agreements or loans of portfolio securities, is unable or unwilling to make timely interest and/or principal payments or to otherwise honor its obligations. BFA and its affiliates manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose a fund to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of a fund’s exposure to credit and counterparty risks with respect to those financial assets is approximated by their value recorded in its statement of assets and liabilities.
7. | INCOME TAX INFORMATION |
Each Fund is treated as an entity separate from the Company’s other funds for federal income tax purposes. It is the policy of each Fund to qualify as a regulated investment company by complying with the provisions applicable to regulated investment companies, as defined under Subchapter M of the Internal Revenue Code of 1986, as amended, and to annually distribute substantially all of its ordinary income and any net capital gains (taking into account any capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income and excise taxes. Accordingly, no provision for federal income taxes is required.
For purposes of U.S. GAAP, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or NAV per share.
NOTESTO FINANCIAL STATEMENTS | 95 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
The tax character of current year distributions will be determined at the end of the current fiscal year.
As of August 31, 2017, the Funds’ fiscal year-end, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:
iShares ETF | Non- Expiring a | Expiring 2018 | Expiring 2019 | Total | ||||||||||||
MSCI Eurozone | $ | 263,923,287 | $ | 68,035,542 | $ | 30,230,739 | $ | 362,189,568 | ||||||||
MSCI Germany | 73,191,131 | 28,490,949 | 32,215,954 | 133,898,034 | ||||||||||||
MSCI Italy | 181,005,358 | 18,169,627 | 9,459,662 | 208,634,647 | ||||||||||||
MSCI Spain | 141,557,230 | 15,120,672 | 8,619,903 | 165,297,805 | ||||||||||||
MSCI Switzerland | 31,918,774 | 22,569,380 | 6,955,758 | 61,443,912 |
a | Must be utilized prior to losses subject to expiration. |
The Funds may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” The Funds may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.
As of February 28, 2018, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives) for U.S. federal income tax purposes were as follows:
iShares ETF | Tax Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||
MSCI Eurozone | $ | 15,276,466,309 | $ | 1,686,771,303 | $ | (902,911,592 | ) | $ | 783,859,711 | |||||||
MSCI Germany | 4,442,632,494 | 501,046,692 | (576,469,934 | ) | (75,423,242 | ) | ||||||||||
MSCI Italy | 727,318,910 | 62,598,867 | (80,509,933 | ) | (17,911,066 | ) | ||||||||||
MSCI Spain | 1,240,368,993 | 35,226,976 | (176,713,379 | ) | (141,486,403 | ) | ||||||||||
MSCI Switzerland | 1,307,847,561 | 90,355,194 | (84,313,370 | ) | 6,041,824 |
Management has analyzed tax laws and regulations and their application to the Funds as of February 28, 2018, inclusive of the open tax return years, and does not believe there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.
8. | FOREIGN WITHHOLDING TAX CLAIMS |
The iShares MSCI Eurozone ETF has filed claims to recover taxes withheld by Finland on dividend income on the basis that Finland had purportedly violated certain provisions in the Treaty on the Functioning of the European Union. The Fund has recorded a receivable for all recoverable taxes withheld by Finland based upon favorable determinations issued by the Finnish Tax Authority. The Fund continues to evaluate developments in Finland for potential impacts to the receivables and payables recorded. Finnish tax claims receivable are disclosed in the statement of assets and liabilities. Professional fees associated with the filing of tax claims in Finland that result in the recovery of foreign withholding taxes have been approved by the Board as appropriate expenses of the Fund.
The Internal Revenue Service has issued guidance to address U.S. income tax liabilities attributable to fund shareholders resulting from the recovery of foreign taxes withheld in prior years. These withheld foreign taxes were passed through to shareholders in the form of foreign tax credits in the year the taxes were withheld. Assuming there are sufficient foreign taxes paid
96 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
which the Fund is able to pass through to its shareholders as a foreign tax credit in the current year, the Fund will be able to offset the prior years’ withholding taxes recovered against the foreign taxes paid in the current year. Accordingly, no federal income tax liability is recorded by the Fund.
9. | LEGAL PROCEEDINGS |
On June 16, 2016, investors (the “Plaintiffs”) in certain iShares funds (iShares Core S&P Small-Cap ETF, iShares Russell 1000 Growth ETF, iShares Core S&P 500 ETF, iShares Russell Mid-Cap Growth ETF, iShares Russell Mid-Cap ETF, iShares Russell Mid-Cap Value ETF, iShares Select Dividend ETF, iShares Morningstar Mid-Cap ETF, iShares Morningstar Large-Cap ETF, iShares U.S. Aerospace & Defense ETF and iShares U.S. Preferred Stock ETF) filed a putative class action lawsuit against iShares Trust, BlackRock, Inc. and certain of its advisory affiliates, and certain directors/trustees and officers of the Funds (collectively, “Defendants”) in California State Court. The lawsuit alleges the Defendants violated federal securities laws by failing to adequately disclose in the prospectuses issued by the funds noted above the risks of using stop-loss orders in the event of a ‘flash crash’, such as the one that occurred on May 6, 2010. On September 18, 2017, the court issued a Statement of Decision holding that the Plaintiffs lack standing to assert their claims. On October 11, 2017, the court entered final judgment dismissing all of the Plaintiffs’ claims with prejudice. Plaintiffs have appealed the court’s decision.
10. | SUBSEQUENT EVENTS |
Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or disclosure in the financial statements.
NOTESTO FINANCIAL STATEMENTS | 97 |
Table of Contents
Notes:
98 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
For more information visit www.iShares.com or call 1-800-iShares (1-800-474-2737)
This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus.
Investing involves risk, including possible loss of principal.
The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).
The iShares Funds are not sponsored, endorsed, issued, sold or promoted by MSCI Inc., nor does this company make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the company listed above.
©2018 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.
iS-SAR-814-0218
Table of Contents
FEBRUARY 28, 2018
2018 SEMI-ANNUAL REPORT (UNAUDITED) |
iShares Trust
Ø | iShares Edge MSCI Multifactor Consumer Discretionary ETF | CNDF | Cboe BZX |
Ø | iShares Edge MSCI Multifactor Consumer Staples ETF | CNSF | Cboe BZX |
Ø | iShares Edge MSCI Multifactor Energy ETF | ERGF | Cboe BZX |
Ø | iShares Edge MSCI Multifactor Financials ETF | FNCF | Cboe BZX |
Ø | iShares Edge MSCI Multifactor Healthcare ETF | HCRF | Cboe BZX |
Ø | iShares Edge MSCI Multifactor Industrials ETF | INDF | Cboe BZX |
Ø | iShares Edge MSCI Multifactor Materials ETF | MATF | Cboe BZX |
Ø | iShares Edge MSCI Multifactor Technology ETF | TCHF | Cboe BZX |
Ø | iShares Edge MSCI Multifactor Utilities ETF | UTLF | Cboe BZX |
Table of Contents
5 | ||||
14 | ||||
14 | ||||
15 | ||||
15 | ||||
17 | ||||
19 | ||||
21 | ||||
23 | ||||
25 | ||||
27 | ||||
29 | ||||
31 | ||||
33 | ||||
44 | ||||
53 | ||||
62 | ||||
63 |
Table of Contents
iSHARES® EDGE MSCI MULTIFACTOR CONSUMER DISCRETIONARY ETF
Performance as of February 28, 2018
The iShares Edge MSCI Multifactor Consumer Discretionary ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. large- and mid-capitalization stocks in the Consumer Discretionary sector that have favorable exposure to target style factors subject to constraints, as represented by the MSCI USA Consumer Discretionary Diversified Multiple-Factor Capped Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month reporting period ended February 28, 2018, the total return for the Fund was 17.83%, net of fees, while the total return for the Index was 17.79%.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||||||||
1 Year | 19.26% | 19.38% | 19.43% | 19.26% | 19.38% | 19.43% | ||||||||||||||||||||||
Since Inception | 16.03% | 16.07% | 16.36% | 30.85% | 30.93% | 31.47% |
The inception date of the Fund was 5/10/16. The first day of secondary market trading was 5/12/16.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 14 for more information.
Shareholder Expenses | ||||||||||||||||||||||||||
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Annualized Expense Ratio | ||||||||||||||||||||
$ | 1,000.00 | $ | 1,178.30 | $ | 1.89 | $ | 1,000.00 | $ | 1,023.10 | $ | 1.76 | 0.35% |
a | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 14 for more information. |
ALLOCATION BY SECTOR
As of 2/28/18
Sector | Percentage of Total Investments* |
Internet & Direct Marketing Retail | 19.39 | % | ||
Hotels, Restaurants & Leisure | 14.94 | |||
Media | 13.81 | |||
Specialty Retail | 12.92 | |||
Household Durables | 12.13 | |||
Auto Components | 8.77 | |||
Multiline Retail | 7.92 | |||
Textiles, Apparel & Luxury Goods | 7.40 | |||
Leisure Products | 1.84 | |||
Distributors | 0.85 | |||
Automobiles | 0.03 | |||
|
| |||
TOTAL | 100.00 | % | ||
|
|
TEN LARGEST FUND HOLDINGS
As of 2/28/18
Security | Percentage of Total Investments* |
Amazon.com Inc. | 17.14 | % | ||
Home Depot Inc. (The) | 4.87 | |||
Comcast Corp. Class A | 3.57 | |||
Walt Disney Co. (The) | 3.22 | |||
Kohl’s Corp. | 3.07 | |||
Best Buy Co. Inc. | 2.99 | |||
Dollar General Corp. | 2.82 | |||
Carnival Corp. | 2.60 | |||
Royal Caribbean Cruises Ltd. | 2.58 | |||
Autoliv Inc. | 2.53 | |||
|
| |||
TOTAL | 45.39 | % | ||
|
|
* | Excludes money market funds. |
FUND PERFORMANCE OVERVIEWS | 5 |
Table of Contents
Fund Performance Overview
iSHARES® EDGE MSCI MULTIFACTOR CONSUMER STAPLES ETF
Performance as of February 28, 2018
The iShares Edge MSCI Multifactor Consumer Staples ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. large- and mid-capitalization stocks in the Consumer Staples sector that have favorable exposure to target style factors subject to constraints, as represented by the MSCI USA Consumer Staples Diversified Multiple-Factor Capped Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month reporting period ended February 28, 2018, the total return for the Fund was 1.47%, net of fees, while the total return for the Index was 1.64%.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||||||||
1 Year | 0.06% | 0.10% | 0.42% | 0.06% | 0.10% | 0.42% | ||||||||||||||||||||||
Since Inception | 1.46% | 1.51% | 1.85% | 2.66% | 2.74% | 3.36% |
The inception date of the Fund was 5/10/16. The first day of secondary market trading was 5/12/16.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 14 for more information.
Shareholder Expenses | ||||||||||||||||||||||||||
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Annualized Expense Ratio | ||||||||||||||||||||
$ | 1,000.00 | $ | 1,014.70 | $ | 1.75 | $ | 1,000.00 | $ | 1,023.10 | $ | 1.76 | 0.35% |
a | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 14 for more information. |
ALLOCATION BY SECTOR
As of 2/28/18
Sector | Percentage of Total Investments* |
Food Products | 24.51 | % | ||
Household Products | 20.28 | |||
Food & Staples Retailing | 20.04 | |||
Beverages | 19.71 | |||
Tobacco | 11.51 | |||
Personal Products | 3.95 | |||
|
| |||
TOTAL | 100.00 | % | ||
|
|
TEN LARGEST FUND HOLDINGS
As of 2/28/18
Security | Percentage of Total Investments* |
Walmart Inc. | 9.26 | % | ||
Procter & Gamble Co. (The) | 9.21 | |||
Coca-Cola Co. (The) | 7.72 | |||
Philip Morris International Inc. | 6.80 | |||
PepsiCo Inc. | 6.67 | |||
CVS Health Corp. | 5.73 | |||
Altria Group Inc. | 4.71 | |||
Kimberly-Clark Corp. | 4.09 | |||
Estee Lauder Companies Inc. (The) Class A | 3.94 | |||
Dr Pepper Snapple Group Inc. | 3.85 | |||
|
| |||
TOTAL | 61.98 | % | ||
|
|
* | Excludes money market funds. |
6 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® EDGE MSCI MULTIFACTOR ENERGY ETF
Performance as of February 28, 2018
The iShares Edge MSCI Multifactor Energy ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. large- and mid-capitalization stocks in the Energy sector that have favorable exposure to target style factors subject to constraints, as represented by the MSCI USA Energy Diversified Multiple-Factor Capped Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month reporting period ended February 28, 2018, the total return for the Fund was 9.93%, net of fees, while the total return for the Index was 10.54%.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||||||||
1 Year | 0.75% | 0.79% | 1.44% | 0.75% | 0.79% | 1.44% | ||||||||||||||||||||||
Since Inception | 4.46% | 4.48% | 5.12% | 8.21% | 8.25% | 9.44% |
The inception date of the Fund was 5/10/16. The first day of secondary market trading was 5/12/16.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 14 for more information.
Shareholder Expenses | ||||||||||||||||||||||||||
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Annualized Expense Ratio | ||||||||||||||||||||
$ | 1,000.00 | $ | 1,099.30 | $ | 1.82 | $ | 1,000.00 | $ | 1,023.10 | $ | 1.76 | 0.35% |
a | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 14 for more information. |
ALLOCATION BY SECTOR
As of 2/28/18
Sector | Percentage of Total Investments* |
Oil, Gas & Consumable Fuels | 85.81 | % | ||
Energy Equipment & Services | 14.19 | |||
|
| |||
TOTAL | 100.00 | % | ||
|
|
TEN LARGEST FUND HOLDINGS
As of 2/28/18
Security | Percentage of Total Investments* |
Exxon Mobil Corp. | 22.40 | % | ||
Chevron Corp. | 18.05 | |||
Valero Energy Corp. | 5.26 | |||
Phillips 66 | 4.96 | |||
Schlumberger Ltd. | 4.75 | |||
Marathon Petroleum Corp. | 4.56 | |||
Kinder Morgan Inc./DE | 3.91 | |||
Concho Resources Inc. | 3.90 | |||
TechnipFMC PLC | 3.18 | |||
Diamondback Energy Inc. | 3.17 | |||
|
| |||
TOTAL | 74.14 | % | ||
|
|
* | Excludes money market funds. |
FUND PERFORMANCE OVERVIEWS | 7 |
Table of Contents
Fund Performance Overview
iSHARES® EDGE MSCI MULTIFACTOR FINANCIALS ETF
Performance as of February 28, 2018
The iShares Edge MSCI Multifactor Financials ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. large- and mid-capitalization stocks in the Financials sector that have favorable exposure to target style factors subject to constraints, as represented by the MSCI USA Financials Diversified Multiple-Factor Capped Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month reporting period ended February 28, 2018, the total return for the Fund was 15.17%, net of fees, while the total return for the Index was 15.30%.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||||||||
1 Year | 16.00% | 16.03% | 16.18% | 16.00% | 16.03% | 16.18% | ||||||||||||||||||||||
Since Inception | 24.22% | 24.25% | 24.55% | 48.01% | 48.09% | 48.67% |
The inception date of the Fund was 5/10/16. The first day of secondary market trading was 5/12/16.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 14 for more information.
Shareholder Expenses | ||||||||||||||||||||||||||
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Annualized Expense Ratio | ||||||||||||||||||||
$ | 1,000.00 | $ | 1,151.70 | $ | 1.87 | $ | 1,000.00 | $ | 1,023.10 | $ | 1.76 | 0.35% |
a | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 14 for more information. |
ALLOCATION BY SECTOR
As of 2/28/18
Sector | Percentage of Total Investments* |
Banks | 40.50 | % | ||
Insurance | 32.61 | |||
Capital Markets | 15.01 | |||
Diversified Financial Services | 7.86 | |||
Mortgage Real Estate Investment | 3.86 | |||
Consumer Finance | 0.16 | |||
|
| |||
TOTAL | 100.00 | % | ||
|
|
TEN LARGEST FUND HOLDINGS
As of 2/28/18
Security | Percentage of Total Investments* |
JPMorgan Chase & Co. | 9.30 | % | ||
Bank of America Corp. | 6.84 | |||
Wells Fargo & Co. | 5.76 | |||
Berkshire Hathaway Inc. Class B | 5.31 | |||
Citigroup Inc. | 3.85 | |||
Marsh & McLennan Companies Inc. | 3.11 | |||
Aflac Inc. | 2.99 | |||
Regions Financial Corp. | 2.98 | |||
T Rowe Price Group Inc. | 2.97 | |||
Comerica Inc. | 2.79 | |||
|
| |||
TOTAL | 45.90 | % | ||
|
|
* | Excludes money market funds. |
8 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® EDGE MSCI MULTIFACTOR HEALTHCARE ETF
Performance as of February 28, 2018
The iShares Edge MSCI Multifactor Healthcare ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. large- and mid-capitalization stocks in the Healthcare sector that have favorable exposure to target style factors subject to constraints, as represented by the MSCI USA Health Care Diversified Multiple-Factor Capped Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month reporting period ended February 28, 2018, the total return for the Fund was 7.56%, net of fees, while the total return for the Index was 7.84%.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||||||||
1 Year | 18.64% | 18.70% | 19.21% | 18.64% | 18.70% | 19.21% | ||||||||||||||||||||||
Since Inception | 15.71% | 15.78% | 16.22% | 30.19% | 30.34% | 31.20% |
The inception date of the Fund was 5/10/16. The first day of secondary market trading was 5/12/16.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 14 for more information.
Shareholder Expenses | ||||||||||||||||||||||||||
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Annualized Expense Ratio | ||||||||||||||||||||
$ | 1,000.00 | $ | 1,075.60 | $ | 1.80 | $ | 1,000.00 | $ | 1,023.10 | $ | 1.76 | 0.35% |
a | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 14 for more information. |
ALLOCATION BY SECTOR
As of 2/28/18
Sector | Percentage of Total Investments* |
Health Care Providers & Services | 32.84 | % | ||
Health Care Equipment & Supplies | 24.09 | |||
Pharmaceuticals | 19.16 | |||
Biotechnology | 11.40 | |||
Life Sciences Tools & Services | 7.77 | |||
Health Care Technology | 4.74 | |||
|
| |||
TOTAL | 100.00 | % | ||
|
|
TEN LARGEST FUND HOLDINGS
As of 2/28/18
Security | Percentage of Total Investments* |
Johnson & Johnson | 10.27 | % | ||
Pfizer Inc. | 4.58 | |||
UnitedHealth Group Inc. | 4.57 | |||
Anthem Inc. | 3.93 | |||
Aetna Inc. | 3.72 | |||
Intuitive Surgical Inc. | 3.51 | |||
Humana Inc. | 3.42 | |||
Cigna Corp. | 3.37 | |||
Edwards Lifesciences Corp. | 3.24 | |||
AbbVie Inc. | 3.22 | |||
|
| |||
TOTAL | 43.83 | % | ||
|
|
* | Excludes money market funds. |
FUND PERFORMANCE OVERVIEWS | 9 |
Table of Contents
Fund Performance Overview
iSHARES® EDGE MSCI MULTIFACTOR INDUSTRIALS ETF
Performance as of February 28, 2018
The iShares Edge MSCI Multifactor Industrials ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. large- and mid-capitalization stocks in the Industrials sector that have favorable exposure to target style factors subject to constraints, as represented by the MSCI USA Industrials Diversified Multiple-Factor Capped Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month reporting period ended February 28, 2018, the total return for the Fund was 11.79%, net of fees, while the total return for the Index was 11.97%.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||||||||
1 Year | 13.93% | 13.92% | 14.33% | 13.93% | 13.92% | 14.33% | ||||||||||||||||||||||
Since Inception | 17.62% | 17.64% | 18.12% | 34.11% | 34.15% | 35.09% |
The inception date of the Fund was 5/10/16. The first day of secondary market trading was 5/12/16.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 14 for more information.
Shareholder Expenses | ||||||||||||||||||||||||||
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Annualized Expense Ratio | ||||||||||||||||||||
$ | 1,000.00 | $ | 1,117.90 | $ | 1.84 | $ | 1,000.00 | $ | 1,023.10 | $ | 1.76 | 0.35% |
a | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 14 for more information. |
ALLOCATION BY SECTOR
As of 2/28/18
Sector | Percentage of Total Investments* |
Aerospace & Defense | 23.24 | % | ||
Road & Rail | 19.12 | |||
Machinery | 11.73 | |||
Industrial Conglomerates | 9.85 | |||
Commercial Services & Supplies | 6.86 | |||
Airlines | 6.53 | |||
Building Products | 5.22 | |||
Air Freight & Logistics | 4.37 | |||
Professional Services | 4.34 | |||
Electrical Equipment | 3.71 | |||
Trading Companies & Distributors | 2.79 | |||
Construction & Engineering | 2.24 | |||
|
| |||
TOTAL | 100.00 | % | ||
|
|
TEN LARGEST FUND HOLDINGS
As of 2/28/18
Security | Percentage of Total Investments* |
Boeing Co. (The) | 5.95 | % | ||
Northrop Grumman Corp. | 4.61 | |||
3M Co. | 4.00 | |||
Norfolk Southern Corp. | 3.74 | |||
Eaton Corp. PLC | 3.35 | |||
General Electric Co. | 3.19 | |||
Cummins Inc. | 3.10 | |||
Stanley Black & Decker Inc. | 2.84 | |||
United Rentals Inc. | 2.79 | |||
Textron Inc. | 2.77 | |||
|
| |||
TOTAL | 36.34 | % | ||
|
|
* | Excludes money market funds. |
10 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® EDGE MSCI MULTIFACTOR MATERIALS ETF
Performance as of February 28, 2018
The iShares Edge MSCI Multifactor Materials ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. large- and mid-capitalization stocks in the Materials sector that have favorable exposure to target style factors subject to constraints, as represented by the MSCI USA Materials Diversified Multiple-Factor Capped Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month reporting period ended February 28, 2018, the total return for the Fund was 10.45%, net of fees, while the total return for the Index was 10.48%.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||||||||
1 Year | 17.16% | 17.19% | 17.45% | 17.16% | 17.19% | 17.45% | ||||||||||||||||||||||
Since Inception | 19.69% | 19.73% | 20.00% | 38.41% | 38.49% | 39.01% |
The inception date of the Fund was 5/10/16. The first day of secondary market trading was 5/12/16.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 14 for more information.
Shareholder Expenses | ||||||||||||||||||||||||||
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Annualized Expense Ratio | ||||||||||||||||||||
$ | 1,000.00 | $ | 1,104.50 | $ | 1.83 | $ | 1,000.00 | $ | 1,023.10 | $ | 1.76 | 0.35% |
a | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 14 for more information. |
ALLOCATION BY SECTOR
As of 2/28/18
Sector | Percentage of Total Investments* |
Chemicals | 67.14 | % | ||
Containers & Packaging | 18.44 | |||
Metals & Mining | 14.11 | |||
Construction Materials | 0.31 | |||
|
| |||
TOTAL | 100.00 | % | ||
|
|
TEN LARGEST FUND HOLDINGS
As of 2/28/18
Security | Percentage of Total Investments* |
DowDuPont Inc. | 20.63 | % | ||
LyondellBasell Industries NV Class A | 7.07 | |||
Sherwin-Williams Co. (The) | 6.70 | |||
Monsanto Co. | 5.43 | |||
Nucor Corp. | 5.21 | |||
Newmont Mining Corp. | 4.89 | |||
International Paper Co. | 4.75 | |||
WestRock Co. | 4.53 | |||
Eastman Chemical Co. | 4.24 | |||
Praxair Inc. | 3.97 | |||
|
| |||
TOTAL | 67.42 | % | ||
|
|
* | Excludes money market funds. |
FUND PERFORMANCE OVERVIEWS | 11 |
Table of Contents
Fund Performance Overview
iSHARES® EDGE MSCI MULTIFACTOR TECHNOLOGY ETF
Performance as of February 28, 2018
The iShares Edge MSCI Multifactor Technology ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. large- and mid-capitalization stocks in the Technology sector that have favorable exposure to target style factors subject to constraints, as represented by the MSCI USA Information Technology Diversified Multiple-Factor Capped Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month reporting period ended February 28, 2018, the total return for the Fund was 16.84%, net of fees, while the total return for the Index was 17.05%.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||||||||
1 Year | 31.57% | 31.61% | 32.09% | 31.57% | 31.61% | 32.09% | ||||||||||||||||||||||
Since Inception | 36.14% | 36.19% | 36.72% | 74.69% | 74.80% | 75.94% |
The inception date of the Fund was 5/10/16. The first day of secondary market trading was 5/12/16.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 14 for more information.
Shareholder Expenses | ||||||||||||||||||||||||||
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Annualized Expense Ratio | ||||||||||||||||||||
$ | 1,000.00 | $ | 1,168.40 | $ | 1.88 | $ | 1,000.00 | $ | 1,023.10 | $ | 1.76 | 0.35% |
a | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 14 for more information. |
ALLOCATION BY SECTOR
As of 2/28/18
Sector | Percentage of Total Investments* |
Technology Hardware, Storage & Peripherals | 21.92 | % | ||
Software | 21.58 | |||
Electronic Equipment, Instruments & Components | 13.50 | |||
IT Services | 13.11 | |||
Internet Software & Services | 12.87 | |||
Semiconductors & Semiconductor Equipment | 12.44 | |||
Communications Equipment | 4.58 | |||
|
| |||
TOTAL | 100.00 | % | ||
|
|
TEN LARGEST FUND HOLDINGS
As of 2/28/18
Security | Percentage of Total Investments* |
Apple Inc. | 13.28 | % | ||
Microsoft Corp. | 9.22 | |||
Facebook Inc. Class A | 5.11 | |||
Alphabet Inc. Class C | 3.67 | |||
Alphabet Inc. Class A | 3.43 | |||
Hewlett Packard Enterprise Co. | 3.04 | |||
Applied Materials Inc. | 2.95 | |||
Micron Technology Inc. | 2.84 | |||
Intuit Inc. | 2.71 | |||
TE Connectivity Ltd. | 2.68 | |||
|
| |||
TOTAL | 48.93 | % | ||
|
|
* | Excludes money market funds. |
12 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® EDGE MSCI MULTIFACTOR UTILITIES ETF
Performance as of February 28, 2018
The iShares Edge MSCI Multifactor Utilities ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. large- and mid-capitalization stocks in the Utilities sector that have favorable exposure to target style factors subject to constraints, as represented by the MSCI USA Utilities Diversified Multiple-Factor Capped Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month reporting period ended February 28, 2018, the total return for the Fund was -9.16%, net of fees, while the total return for the Index was -9.24%.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||||||||
1 Year | (3.95)% | (3.98)% | (3.85)% | (3.95)% | (3.98)% | (3.85)% | ||||||||||||||||||||||
Since Inception | 2.03% | 2.07% | 2.29% | 3.70% | 3.78% | 4.17% |
The inception date of the Fund was 5/10/16. The first day of secondary market trading was 5/12/16.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 14 for more information.
Shareholder Expenses | ||||||||||||||||||||||||||
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Annualized Expense Ratio | ||||||||||||||||||||
$ | 1,000.00 | $ | 908.40 | $ | 1.66 | $ | 1,000.00 | $ | 1,023.10 | $ | 1.76 | 0.35% |
a | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 14 for more information. |
ALLOCATION BY SECTOR
As of 2/28/18
Sector | Percentage of Total Investments* |
Electric Utilities | 61.81 | % | ||
Multi-Utilities | 27.93 | |||
Gas Utilities | 6.64 | |||
Independent Power and Renewable Electricity Producers | 3.45 | |||
Water Utilities | 0.17 | |||
|
| |||
TOTAL | 100.00 | % | ||
|
|
TEN LARGEST FUND HOLDINGS
As of 2/28/18
Security | Percentage of Total Investments* |
NextEra Energy Inc. | 8.90 | % | ||
Exelon Corp. | 7.57 | |||
Duke Energy Corp. | 6.31 | |||
Consolidated Edison Inc. | 5.59 | |||
Dominion Energy Inc. | 5.34 | |||
Eversource Energy | 4.84 | |||
Southern Co. (The) | 4.80 | |||
Xcel Energy Inc. | 4.72 | |||
PG&E Corp. | 4.53 | |||
Ameren Corp. | 4.01 | |||
|
| |||
TOTAL | 56.61 | % | ||
|
|
* | Excludes money market funds. |
FUND PERFORMANCE OVERVIEWS | 13 |
Table of Contents
Past performance is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at www.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. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer 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. Certain funds may have a NAV which is determined prior to the opening of regular trading on its listed exchange and their market returns are calculated using the midpoint of the bid/ask spread as of the opening of regular trading on the exchange. 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.
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested on September 1, 2017 and held through February 28, 2018, is intended to help you understand your ongoing costs (in dollars and cents) of investing in a Fund and to compare these costs with the ongoing costs of investing in other funds.
Actual Expenses — The table provides information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. To estimate the expenses that you paid on your account over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number corresponding to your Fund under the heading entitled “Expenses Paid During Period.”
Hypothetical Example for Comparison Purposes — The table also provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions paid on purchases and sales of fund shares. Therefore, the hypothetical examples are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
14 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® EDGE MSCI MULTIFACTOR CONSUMER DISCRETIONARY ETF
February 28, 2018
Security | Shares | Value | ||||||
COMMON STOCKS — 99.76% |
| |||||||
AUTO COMPONENTS — 8.75% |
| |||||||
Autoliv Inc. | 569 | $ | 81,616 | |||||
BorgWarner Inc. | 1,344 | 65,964 | ||||||
Goodyear Tire & Rubber Co. (The) | 2,051 | 59,356 | ||||||
Lear Corp. | 404 | 75,374 | ||||||
|
| |||||||
282,310 | ||||||||
AUTOMOBILES — 0.03% |
| |||||||
General Motors Co. | 24 | 945 | ||||||
|
| |||||||
945 | ||||||||
DISTRIBUTORS — 0.85% |
| |||||||
Genuine Parts Co. | 298 | 27,368 | ||||||
|
| |||||||
27,368 | ||||||||
HOTELS, RESTAURANTS & LEISURE — 14.91% |
| |||||||
Carnival Corp. | 1,249 | 83,570 | ||||||
Darden Restaurants Inc. | 846 | 77,993 | ||||||
McDonald’s Corp. | 474 | 74,769 | ||||||
Royal Caribbean Cruises Ltd. | 657 | 83,176 | ||||||
Starbucks Corp. | 436 | 24,896 | ||||||
Vail Resorts Inc. | 302 | 62,173 | ||||||
Wyndham Worldwide Corp. | 644 | 74,562 | ||||||
|
| |||||||
481,139 | ||||||||
HOUSEHOLD DURABLES — 12.10% |
| |||||||
DR Horton Inc. | 1,589 | 66,579 | ||||||
Garmin Ltd. | 1,084 | 64,216 | ||||||
Leggett & Platt Inc. | 1,351 | 58,714 | ||||||
Mohawk Industries Inc.a | 278 | 66,687 | ||||||
NVR Inc.a | 22 | 62,550 | ||||||
Toll Brothers Inc. | 1,415 | 62,019 | ||||||
Whirlpool Corp. | 60 | 9,746 | ||||||
|
| |||||||
390,511 | ||||||||
INTERNET & DIRECT MARKETING RETAIL — 19.35% |
| |||||||
Amazon.com Inc.a | 365 | 552,044 | ||||||
Booking Holdings Inc.a | 16 | 32,545 | ||||||
Netflix Inc.a,b | 137 | 39,919 | ||||||
|
| |||||||
624,508 | ||||||||
LEISURE PRODUCTS — 1.83% |
| |||||||
Hasbro Inc. | 619 | 59,158 | ||||||
|
| |||||||
59,158 | ||||||||
MEDIA — 13.77% |
| |||||||
Charter Communications Inc. Class Aa | 23 | 7,864 | ||||||
Comcast Corp. Class A | 3,172 | 114,858 |
Security | Shares | Value | ||||||
Liberty Media Corp.-Liberty SiriusXM Class Ca | 1,531 | $ | 63,935 | |||||
News Corp. Class A | 3,911 | 63,084 | ||||||
Scripps Networks Interactive Inc. Class A | 824 | 74,045 | ||||||
Time Warner Inc. | 184 | 17,105 | ||||||
Walt Disney Co. (The) | 1,005 | 103,676 | ||||||
|
| |||||||
444,567 | ||||||||
MULTILINE RETAIL — 7.90% |
| |||||||
Dollar General Corp. | 960 | 90,806 | ||||||
Kohl’s Corp. | 1,497 | 98,937 | ||||||
Nordstrom Inc. | 1,274 | 65,369 | ||||||
|
| |||||||
255,112 | ||||||||
SPECIALTY RETAIL — 12.89% |
| |||||||
Best Buy Co. Inc. | 1,328 | 96,200 | ||||||
Gap Inc. (The) | 2,213 | 69,887 | ||||||
Home Depot Inc. (The) | 861 | 156,934 | ||||||
Lowe’s Companies Inc. | 130 | 11,647 | ||||||
Ross Stores Inc. | 1,044 | 81,526 | ||||||
|
| |||||||
416,194 | ||||||||
TEXTILES, APPAREL & LUXURY GOODS — 7.38% |
| |||||||
Lululemon Athletica Inc.a | 136 | 11,030 | ||||||
Michael Kors Holdings Ltd.a | 1,205 | 75,831 | ||||||
NIKE Inc. Class B | 344 | 23,058 | ||||||
PVH Corp. | 512 | 73,871 | ||||||
Ralph Lauren Corp. | 516 | 54,613 | ||||||
|
| |||||||
238,403 | ||||||||
|
| |||||||
TOTAL COMMON STOCKS | ||||||||
(Cost: $2,640,515) | 3,220,215 | |||||||
SHORT-TERM INVESTMENTS — 1.45% |
| |||||||
MONEY MARKET FUNDS — 1.45% |
| |||||||
BlackRock Cash Funds: Institutional, | ||||||||
1.58%c,d,e | 40,616 | 40,621 | ||||||
BlackRock Cash Funds: Treasury, | ||||||||
1.32%c,d | 6,074 | 6,074 | ||||||
|
| |||||||
46,695 | ||||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||||
(Cost: $46,695) | 46,695 | |||||||
|
|
SCHEDULESOF INVESTMENTS | 15 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® EDGE MSCI MULTIFACTOR CONSUMER DISCRETIONARY ETF
February 28, 2018
Value | ||||||
TOTAL INVESTMENTS | ||||||
(Cost: $2,687,210) | $ | 3,266,910 | ||||
Other Assets, Less Liabilities — (1.21)% | (39,127 | ) | ||||
|
| |||||
NET ASSETS — 100.00% | $ | 3,227,783 | ||||
|
|
a | Non-income producing security. |
b | All or a portion of this security is on loan. |
c | Affiliate of the Fund. |
d | Annualized 7-day yield as of period end. |
e | All or a portion of this security was purchased with cash collateral received from loaned securities. |
Affiliates (Note 2)
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows:
Affiliated issuer | Shares held at 08/31/17 | Shares purchased | Shares sold | Shares 02/28/18 | Value at 02/28/18 | Income | Net realized gain (loss) a | Change in unrealized appreciation (depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, | 15,243 | 25,373 | b | — | 40,616 | $ | 40,621 | $ | 8 | c | $ | — | $ | — | ||||||||||||||||||
BlackRock Cash Funds: Treasury, | 1,374 | 4,700 | b | — | 6,074 | 6,074 | 22 | — | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 46,695 | $ | 30 | $ | — | $ | — | |||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
a | Includes realized capital gain distributions from an affiliated fund, if any. |
b | Net of purchases and sales. |
c | Includes the Fund’s portion of securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. |
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common stocks | $ | 3,220,215 | $ | — | $ | — | $ | 3,220,215 | ||||||||
Money market funds | 46,695 | — | — | 46,695 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 3,266,910 | $ | — | $ | — | $ | 3,266,910 | ||||||||
|
|
|
|
|
|
|
| |||||||||
See notes to financial statements.
16 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® EDGE MSCI MULTIFACTOR CONSUMER STAPLES ETF
February 28, 2018
Security | Shares | Value | ||||||
COMMON STOCKS — 99.83% |
| |||||||
BEVERAGES — 19.67% |
| |||||||
Brown-Forman Corp. Class B | 519 | $ | 36,221 | |||||
Coca-Cola Co. (The) | 4,473 | 193,323 | ||||||
Constellation Brands Inc. Class A | 4 | 862 | ||||||
Dr Pepper Snapple Group Inc. | 829 | 96,371 | ||||||
PepsiCo Inc. | 1,522 | 167,009 | ||||||
|
| |||||||
493,786 | ||||||||
FOOD & STAPLES RETAILING — 20.01% |
| |||||||
Costco Wholesale Corp. | 310 | 59,179 | ||||||
CVS Health Corp. | 2,119 | 143,520 | ||||||
Kroger Co. (The) | 534 | 14,482 | ||||||
Walgreens Boots Alliance Inc. | 768 | 52,907 | ||||||
Walmart Inc. | 2,579 | 232,136 | ||||||
|
| |||||||
502,224 | ||||||||
FOOD PRODUCTS — 24.47% |
| |||||||
Archer-Daniels-Midland Co. | 2,064 | 85,697 | ||||||
Bunge Ltd. | 968 | 73,016 | ||||||
Campbell Soup Co. | 1,264 | 54,415 | ||||||
Hormel Foods Corp. | 1,915 | 62,161 | ||||||
Ingredion Inc. | 474 | 61,923 | ||||||
JM Smucker Co. (The) | 599 | 75,654 | ||||||
Kraft Heinz Co. (The) | 205 | 13,745 | ||||||
McCormick & Co. Inc./MD NVS | 670 | 71,543 | ||||||
Mondelez International Inc. Class A | 875 | 38,413 | ||||||
Tyson Foods Inc. Class A | 1,042 | 77,504 | ||||||
|
| |||||||
614,071 | ||||||||
HOUSEHOLD PRODUCTS — 20.25% |
| |||||||
Church & Dwight Co. Inc. | 1,476 | 72,605 | ||||||
Clorox Co. (The) | 552 | 71,252 | ||||||
Colgate-Palmolive Co. | 449 | 30,968 |
Security | Shares | Value | ||||||
Kimberly-Clark Corp. | 925 | $ | 102,601 | |||||
Procter & Gamble Co. (The) | 2,939 | 230,770 | ||||||
|
| |||||||
508,196 | ||||||||
PERSONAL PRODUCTS — 3.94% |
| |||||||
Estee Lauder Companies Inc. (The) Class A | 714 | 98,846 | ||||||
|
| |||||||
98,846 | ||||||||
TOBACCO — 11.49% |
| |||||||
Altria Group Inc. | 1,874 | 117,968 | ||||||
Philip Morris International Inc. | 1,646 | 170,444 | ||||||
|
| |||||||
288,412 | ||||||||
|
| |||||||
TOTAL COMMON STOCKS |
| |||||||
(Cost: $2,556,352) |
| 2,505,535 | ||||||
SHORT-TERM INVESTMENTS — 0.08% |
| |||||||
MONEY MARKET FUNDS — 0.08% |
| |||||||
BlackRock Cash Funds: Treasury, |
| |||||||
1.32%a,b | 1,899 | 1,899 | ||||||
|
| |||||||
1,899 | ||||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||||
(Cost: $1,899) |
| 1,899 | ||||||
|
| |||||||
TOTAL INVESTMENTS |
| |||||||
(Cost: $2,558,251) |
| 2,507,434 | ||||||
Other Assets, Less Liabilities — 0.09% |
| 2,367 | ||||||
|
| |||||||
NET ASSETS — 100.00% |
| $ | 2,509,801 | |||||
|
|
NVS — Non-Voting Shares
a | Affiliate of the Fund. |
b | Annualized 7-day yield as of period end. |
Affiliates (Note 2)
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows:
Affiliated issuer | Shares held at 08/31/17 | Shares purchased | Shares sold | Shares held at 02/28/18 | Value at 02/28/18 | Income | Net realized gain (loss) a | Change in unrealized appreciation (depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Treasury, | 1,864 | 35 | b | — | 1,899 | $ | 1,899 | $ | 24 | $ | — | $ | — | |||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
a | Includes realized capital gain distributions from an affiliated fund, if any. |
b | Net of purchases and sales. |
SCHEDULESOF INVESTMENTS | 17 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® EDGE MSCI MULTIFACTOR CONSUMER STAPLES ETF
February 28, 2018
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common stocks | $ | 2,505,535 | $ | — | $ | — | $ | 2,505,535 | ||||||||
Money market funds | 1,899 | — | — | 1,899 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 2,507,434 | $ | — | $ | — | $ | 2,507,434 | ||||||||
|
|
|
|
|
|
|
| |||||||||
See notes to financial statements.
18 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® EDGE MSCI MULTIFACTOR ENERGY ETF
February 28, 2018
Security | Shares | Value | ||||||
COMMON STOCKS — 99.26% |
| |||||||
ENERGY EQUIPMENT & SERVICES — 14.09% |
| |||||||
Baker Hughes a GE Co. | 2,507 | $ | 66,184 | |||||
Halliburton Co. | 441 | 20,471 | ||||||
Helmerich & Payne Inc. | 1,152 | 74,361 | ||||||
Schlumberger Ltd. | 1,859 | 122,025 | ||||||
TechnipFMC PLC | 2,835 | 81,705 | ||||||
|
| |||||||
364,746 | ||||||||
OIL, GAS & CONSUMABLE FUELS — 85.17% |
| |||||||
Anadarko Petroleum Corp. | 10 | 570 | ||||||
Andeavor | 787 | 70,531 | ||||||
Antero Resources Corp.a | 3,206 | 60,305 | ||||||
Cabot Oil & Gas Corp. | 2,701 | 65,256 | ||||||
Chevron Corp. | 4,144 | 463,797 | ||||||
Cimarex Energy Co. | 639 | 61,402 | ||||||
Concho Resources Inc.a,b | 665 | 100,282 | ||||||
ConocoPhillips | 1,326 | 72,015 | ||||||
Diamondback Energy Inc.a | 654 | 81,515 | ||||||
EOG Resources Inc. | 610 | 61,866 | ||||||
Exxon Mobil Corp. | 7,600 | 575,624 | ||||||
HollyFrontier Corp. | 1,507 | 64,545 | ||||||
Kinder Morgan Inc./DE | 6,211 | 100,618 | ||||||
Marathon Petroleum Corp. | 1,829 | 117,166 | ||||||
Occidental Petroleum Corp. | 719 | 47,166 | ||||||
Phillips 66 | 1,410 | 127,422 |
Security | Shares | Value | ||||||
Valero Energy Corp. | 1,496 | $ | 135,268 | |||||
|
| |||||||
2,205,348 | ||||||||
|
| |||||||
TOTAL COMMON STOCKS |
| |||||||
(Cost: $2,534,758) |
| 2,570,094 | ||||||
SHORT-TERM INVESTMENTS — 0.31% |
| |||||||
MONEY MARKET FUNDS — 0.31% |
| |||||||
BlackRock Cash Funds: Institutional, | ||||||||
1.58%c,d,e | 4,833 | 4,833 | ||||||
BlackRock Cash Funds: Treasury, | ||||||||
1.32%c,d | 3,220 | 3,220 | ||||||
|
| |||||||
8,053 | ||||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||||
(Cost: $8,053) | 8,053 | |||||||
|
| |||||||
TOTAL INVESTMENTS |
| |||||||
(Cost: $2,542,811) | 2,578,147 | |||||||
Other Assets, Less Liabilities — 0.43% |
| 11,098 | ||||||
|
| |||||||
NET ASSETS — 100.00% |
| $ | 2,589,245 | |||||
|
|
a | Non-income producing security. |
b | All or a portion of this security is on loan. |
c | Affiliate of the Fund. |
d | Annualized 7-day yield as of period end. |
e | All or a portion of this security was purchased with cash collateral received from loaned securities. |
Affiliates (Note 2)
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows:
Affiliated issuer | Shares held at 08/31/17 | Shares purchased | Shares sold | Shares held at 02/28/18 | Value at 02/28/18 | Income | Net realized gain (loss) a | Change in unrealized appreciation (depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | 29,404 | — | (24,571 | )b | 4,833 | $ | 4,833 | $ | 45 | c | $ | (11 | ) | $ | — | |||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 3,274 | — | (54 | )b | 3,220 | 3,220 | 16 | — | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 8,053 | $ | 61 | $ | (11 | ) | $ | — | ||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
a | Includes realized capital gain distributions from an affiliated fund, if any. |
b | Net of purchases and sales. |
c | Includes the Fund’s portion of securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. |
SCHEDULESOF INVESTMENTS | 19 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® EDGE MSCI MULTIFACTOR ENERGY ETF
February 28, 2018
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common stocks | $ | 2,570,094 | $ | — | $ | — | $ | 2,570,094 | ||||||||
Money market funds | 8,053 | — | — | 8,053 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 2,578,147 | $ | — | $ | — | $ | 2,578,147 | ||||||||
|
|
|
|
|
|
|
| |||||||||
See notes to financial statements.
20 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® EDGE MSCI MULTIFACTOR FINANCIALS ETF
February 28, 2018
Security | Shares | Value | ||||||
COMMON STOCKS — 99.89% |
| |||||||
BANKS — 40.45% |
| |||||||
Bank of America Corp. | 18,976 | $ | 609,130 | |||||
Citigroup Inc. | 4,539 | 342,649 | ||||||
Citizens Financial Group Inc. | 5,685 | 247,241 | ||||||
Comerica Inc. | 2,560 | 248,883 | ||||||
East West Bancorp. Inc. | 3,274 | 214,611 | ||||||
JPMorgan Chase & Co. | 7,167 | 827,788 | ||||||
KeyCorp | 2,579 | 54,494 | ||||||
Regions Financial Corp. | 13,659 | 265,121 | ||||||
U.S. Bancorp. | 1,061 | 57,676 | ||||||
Wells Fargo & Co. | 8,777 | 512,665 | ||||||
Zions BanCorp. | 4,104 | 225,597 | ||||||
|
| |||||||
3,605,855 | ||||||||
CAPITAL MARKETS — 14.99% |
| |||||||
Affiliated Managers Group Inc. | 1,049 | 198,639 | ||||||
Ameriprise Financial Inc. | 1,433 | 224,178 | ||||||
Eaton Vance Corp. NVS | 2,975 | 157,467 | ||||||
Goldman Sachs Group Inc. (The) | 236 | 62,051 | ||||||
Morgan Stanley | 126 | 7,059 | ||||||
Raymond James Financial Inc. | 2,327 | 215,736 | ||||||
SEI Investments Co. | 2,840 | 206,837 | ||||||
T Rowe Price Group Inc. | 2,363 | 264,420 | ||||||
|
| |||||||
1,336,387 | ||||||||
CONSUMER FINANCE — 0.16% |
| |||||||
American Express Co. | 149 | 14,529 | ||||||
|
| |||||||
14,529 | ||||||||
DIVERSIFIED FINANCIAL SERVICES — 7.85% |
| |||||||
Berkshire Hathaway Inc. Class Ba | 2,284 | 473,244 | ||||||
Voya Financial Inc. | 4,441 | 226,580 | ||||||
|
| |||||||
699,824 | ||||||||
INSURANCE — 32.58% |
| |||||||
Aflac Inc. | 2,996 | 266,285 | ||||||
Allstate Corp. (The) | 1,482 | 136,729 | ||||||
American Financial Group Inc./OH | 1,843 | 207,890 | ||||||
Arch Capital Group Ltd.a | 1,309 | 115,506 | ||||||
Athene Holding Ltd. Class Aa | 2,770 | 130,772 | ||||||
Axis Capital Holdings Ltd. | 2,149 | 106,032 |
Security | Shares | Value | ||||||
Chubb Ltd. | 74 | $ | 10,502 | |||||
Everest Re Group Ltd. | 860 | 206,606 | ||||||
FNF Group | 4,928 | 196,775 | ||||||
Lincoln National Corp. | 2,798 | 213,124 | ||||||
Marsh & McLennan Companies Inc. | 3,335 | 276,872 | ||||||
Principal Financial Group Inc. | 3,194 | 199,082 | ||||||
Reinsurance Group of America Inc. | 1,266 | 194,698 | ||||||
RenaissanceRe Holdings Ltd. | 1,035 | 132,770 | ||||||
Torchmark Corp. | 2,271 | 193,875 | ||||||
Unum Group | 3,718 | 189,469 | ||||||
XL Group Ltd. | 3,005 | 127,142 | ||||||
|
| |||||||
2,904,129 | ||||||||
MORTGAGE REAL ESTATE INVESTMENT — 3.86% |
| |||||||
AGNC Investment Corp. | 9,435 | 169,264 | ||||||
Annaly Capital Management Inc. | 17,379 | 174,311 | ||||||
|
| |||||||
343,575 | ||||||||
|
| |||||||
TOTAL COMMON STOCKS |
| |||||||
(Cost: $8,247,055) |
| 8,904,299 | ||||||
SHORT-TERM INVESTMENTS — 0.05% |
| |||||||
MONEY MARKET FUNDS — 0.05% |
| |||||||
BlackRock Cash Funds: Treasury, | ||||||||
1.32%b,c | 4,834 | 4,834 | ||||||
|
| |||||||
4,834 | ||||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||||
(Cost: $4,834) | 4,834 | |||||||
|
| |||||||
TOTAL INVESTMENTS |
| |||||||
(Cost: $8,251,889) | 8,909,133 | |||||||
Other Assets, Less Liabilities — 0.06% |
| 5,441 | ||||||
|
| |||||||
NET ASSETS — 100.00% |
| $ | 8,914,574 | |||||
|
|
NVS — Non-Voting Shares
a | Non-income producing security. |
b | Affiliate of the Fund. |
c | Annualized 7-day yield as of period end. |
SCHEDULESOF INVESTMENTS | 21 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® EDGE MSCI MULTIFACTOR FINANCIALS ETF
February 28, 2018
Affiliates (Note 2)
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows:
Affiliated issuer | Shares held at 08/31/17 | Shares purchased | Shares sold | Shares held at 02/28/18 | Value at 02/28/18 | Income | Net realized gain (loss) a | Change in unrealized appreciation (depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, | — | — | b | — | — | $ | — | $ | 17 | c | $ | 22 | $ | — | ||||||||||||||||||
BlackRock Cash Funds: Treasury, | 8,924 | — | (4,090 | )b | 4,834 | $ | 4,834 | $ | 84 | $ | — | $ | — | |||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 4,834 | $ | 101 | $ | 22 | $ | — | |||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
a | Includes realized capital gain distributions from an affiliated fund, if any. |
b | Net of purchases and sales. |
c | Includes the Fund’s portion of securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. |
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common stocks | $ | 8,904,299 | $ | — | $ | — | $ | 8,904,299 | ||||||||
Money market funds | 4,834 | — | — | 4,834 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 8,909,133 | $ | — | $ | — | $ | 8,909,133 | ||||||||
|
|
|
|
|
|
|
| |||||||||
See notes to financial statements.
22 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® EDGE MSCI MULTIFACTOR HEALTHCARE ETF
February 28, 2018
Security | Shares | Value | ||||||
COMMON STOCKS — 99.81% |
| |||||||
BIOTECHNOLOGY — 11.38% |
| |||||||
AbbVie Inc. | 2,703 | $ | 313,089 | |||||
Amgen Inc. | 1,046 | 192,223 | ||||||
Biogen Inc.a | 514 | 148,541 | ||||||
Celgene Corp.a | 501 | 43,647 | ||||||
Gilead Sciences Inc. | 3,314 | 260,911 | ||||||
United Therapeutics Corp.a | 1,277 | 147,940 | ||||||
|
| |||||||
1,106,351 | ||||||||
HEALTH CARE EQUIPMENT & SUPPLIES — 24.05% |
| |||||||
Abbott Laboratories | 1,751 | 105,638 | ||||||
Align Technology Inc.a | 951 | 249,656 | ||||||
Baxter International Inc. | 4,348 | 294,751 | ||||||
Cooper Companies Inc. (The) | 917 | 211,387 | ||||||
Edwards Lifesciences Corp.a | 2,354 | 314,659 | ||||||
Intuitive Surgical Inc.a | 800 | 341,160 | ||||||
Medtronic PLC | 1,641 | 131,099 | ||||||
ResMed Inc. | 2,610 | 248,655 | ||||||
Teleflex Inc. | 829 | 207,109 | ||||||
Varian Medical Systems Inc.a | 1,970 | 235,100 | ||||||
|
| |||||||
2,339,214 | ||||||||
HEALTH CARE PROVIDERS & SERVICES — 32.78% |
| |||||||
Aetna Inc. | 2,037 | 360,671 | ||||||
Anthem Inc. | 1,622 | 381,786 | ||||||
Centene Corp.a | 2,487 | 252,232 | ||||||
Cigna Corp. | 1,671 | 327,332 | ||||||
Henry Schein Inc.a | 573 | 37,927 | ||||||
Humana Inc. | 1,220 | 331,620 | ||||||
Laboratory Corp. of America Holdingsa | 1,531 | 264,404 | ||||||
McKesson Corp. | 1,961 | 292,640 | ||||||
Quest Diagnostics Inc. | 2,410 | 248,351 | ||||||
UnitedHealth Group Inc. | 1,960 | 443,274 | ||||||
Universal Health Services Inc. Class B | 2,176 | 248,499 | ||||||
|
| |||||||
3,188,736 | ||||||||
HEALTH CARE TECHNOLOGY — 4.73% |
| |||||||
Cerner Corp.a | 3,702 | 237,520 | ||||||
Veeva Systems Inc. Class Aa | 3,198 | 222,901 | ||||||
|
| |||||||
460,421 | ||||||||
LIFE SCIENCES TOOLS & SERVICES — 7.75% |
| |||||||
Agilent Technologies Inc. | 3,598 | 246,787 | ||||||
Mettler-Toledo International Inc.a | 368 | 226,769 | ||||||
Thermo Fisher Scientific Inc. | 205 | 42,759 | ||||||
Waters Corp.a | 1,161 | 237,587 | ||||||
|
| |||||||
753,902 |
Security | Shares | Value | ||||||
PHARMACEUTICALS — 19.12% |
| |||||||
Bristol-Myers Squibb Co. | 1,768 | $ | 117,042 | |||||
Eli Lilly & Co. | 681 | 52,451 | ||||||
Johnson & Johnson | 7,679 | 997,348 | ||||||
Merck & Co. Inc. | 4,587 | 248,707 | ||||||
Pfizer Inc. | 12,236 | 444,289 | ||||||
|
| |||||||
1,859,837 | ||||||||
TOTAL COMMON STOCKS |
| |||||||
(Cost: $9,201,566) |
| 9,708,461 | ||||||
SHORT-TERM INVESTMENTS — 0.06% |
| |||||||
MONEY MARKET FUNDS — 0.06% |
| |||||||
BlackRock Cash Funds: Treasury, |
| |||||||
1.32%b,c | 6,167 | 6,167 | ||||||
|
| |||||||
6,167 | ||||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS | ||||||||
(Cost: $6,167) | 6,167 | |||||||
|
| |||||||
TOTAL INVESTMENTS | ||||||||
(Cost: $9,207,733) | 9,714,628 | |||||||
Other Assets, Less Liabilities — 0.13% | 12,214 | |||||||
|
| |||||||
NET ASSETS — 100.00% | $ | 9,726,842 | ||||||
|
|
a | Non-income producing security. |
b | Affiliate of the Fund. |
c | Annualized 7-day yield as of period end. |
SCHEDULESOF INVESTMENTS | 23 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® EDGE MSCI MULTIFACTOR HEALTHCARE ETF
February 28, 2018
Affiliates (Note 2)
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows:
Affiliated issuer | Shares held at 08/31/17 | Shares purchased | Shares sold | Shares held at 02/28/18 | Value at 02/28/18 | Income | Net realized gain (loss) a | Change in unrealized appreciation (depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, | — | — | b | — | — | $ | — | $ | 63 | c | $ | (31 | ) | $ | — | |||||||||||||||||
BlackRock Cash Funds: Treasury, | 5,138 | 1,029 | b | — | 6,167 | 6,167 | 121 | — | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 6,167 | $ | 184 | $ | (31 | ) | $ | — | ||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
a | Includes realized capital gain distributions from an affiliated fund, if any. |
b | Net of purchases and sales. |
c | Includes the Fund’s portion of securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. |
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments |
| |||||||||||||||
Assets |
| |||||||||||||||
Common stocks | $ | 9,708,461 | $ | — | $ | — | $ | 9,708,461 | ||||||||
Money market funds | 6,167 | — | — | 6,167 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 9,714,628 | $ | — | $ | — | $ | 9,714,628 | ||||||||
|
|
|
|
|
|
|
| |||||||||
See notes to financial statements.
24 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® EDGE MSCI MULTIFACTOR INDUSTRIALS ETF
February 28, 2018
Security | Shares | Value | ||||||
COMMON STOCKS — 99.74% |
| |||||||
AEROSPACE & DEFENSE — 23.18% |
| |||||||
Boeing Co. (The) | 523 | $ | 189,436 | |||||
General Dynamics Corp. | 42 | 9,343 | ||||||
Huntington Ingalls Industries Inc. | 316 | 82,795 | ||||||
L3 Technologies Inc. | 420 | 87,171 | ||||||
Lockheed Martin Corp. | 156 | 54,981 | ||||||
Northrop Grumman Corp. | 419 | 146,667 | ||||||
Raytheon Co. | 64 | 13,921 | ||||||
Textron Inc. | 1,471 | 88,039 | ||||||
United Technologies Corp. | 499 | 67,235 | ||||||
|
| |||||||
739,588 | ||||||||
AIR FREIGHT & LOGISTICS — 4.36% |
| |||||||
Expeditors International of Washington Inc. | 1,259 | 81,785 | ||||||
FedEx Corp. | 66 | 16,263 | ||||||
United Parcel Service Inc. Class B | 393 | 41,033 | ||||||
|
| |||||||
139,081 | ||||||||
AIRLINES — 6.52% |
| |||||||
American Airlines Group Inc. | 1,417 | 76,872 | ||||||
Southwest Airlines Co. | 1,295 | 74,903 | ||||||
United Continental Holdings Inc.a | 829 | 56,198 | ||||||
|
| |||||||
207,973 | ||||||||
BUILDING PRODUCTS — 5.20% |
| |||||||
AO Smith Corp. | 476 | 30,554 | ||||||
Fortune Brands Home & Security Inc. | 1,094 | 66,362 | ||||||
Owens Corning | 850 | 69,105 | ||||||
|
| |||||||
166,021 | ||||||||
COMMERCIAL SERVICES & SUPPLIES — 6.84% |
| |||||||
Republic Services Inc. | 1,240 | 83,303 | ||||||
Rollins Inc. | 1,311 | 65,904 | ||||||
Waste Connections Inc. | 977 | 69,152 | ||||||
|
| |||||||
218,359 | ||||||||
CONSTRUCTION & ENGINEERING — 2.24% |
| |||||||
Jacobs Engineering Group Inc. | 1,170 | 71,440 | ||||||
|
| |||||||
71,440 | ||||||||
ELECTRICAL EQUIPMENT — 3.70% |
| |||||||
Eaton Corp. PLC | 1,323 | 106,766 | ||||||
Rockwell Automation Inc. | 62 | 11,210 | ||||||
|
| |||||||
117,976 | ||||||||
INDUSTRIAL CONGLOMERATES — 9.82% |
| |||||||
3M Co. | 540 | 127,175 | ||||||
General Electric Co. | 7,203 | 101,634 |
Security | Shares | Value | ||||||
Honeywell International Inc. | 560 | $ | 84,622 | |||||
|
| |||||||
313,431 | ||||||||
MACHINERY — 11.70% |
| |||||||
AGCO Corp. | 850 | 56,610 | ||||||
Caterpillar Inc. | 352 | 54,430 | ||||||
Cummins Inc. | 586 | 98,548 | ||||||
Illinois Tool Works Inc. | 41 | 6,619 | ||||||
Stanley Black & Decker Inc. | 567 | 90,261 | ||||||
WABCO Holdings Inc.a | 484 | 66,777 | ||||||
|
| |||||||
373,245 | ||||||||
PROFESSIONAL SERVICES — 4.33% |
| |||||||
ManpowerGroup Inc. | 559 | 66,219 | ||||||
Robert Half International Inc. | 1,258 | 71,794 | ||||||
|
| |||||||
138,013 | ||||||||
ROAD & RAIL — 19.07% |
| |||||||
AMERCO | 93 | 31,992 | ||||||
CSX Corp. | 1,210 | 65,001 | ||||||
JB Hunt Transport Services Inc. | 701 | 83,118 | ||||||
Kansas City Southern | 716 | 73,777 | ||||||
Knight-Swift Transportation Holdings Inc. | 1,715 | 82,594 | ||||||
Norfolk Southern Corp. | 857 | 119,192 | ||||||
Old Dominion Freight Line Inc. | 582 | 80,851 | ||||||
Union Pacific Corp. | 553 | 72,028 | ||||||
|
| |||||||
608,553 | ||||||||
TRADING COMPANIES & DISTRIBUTORS — 2.78% |
| |||||||
United Rentals Inc.a | 507 | 88,771 | ||||||
|
| |||||||
88,771 | ||||||||
|
| |||||||
TOTAL COMMON STOCKS |
| |||||||
(Cost: $2,865,808) |
| 3,182,451 | ||||||
SHORT-TERM INVESTMENTS — 0.04% |
| |||||||
MONEY MARKET FUNDS — 0.04% |
| |||||||
BlackRock Cash Funds: Treasury, |
| |||||||
1.32%b,c | 1,350 | 1,350 | ||||||
|
| |||||||
1,350 | ||||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS | ||||||||
(Cost: $1,350) | 1,350 | |||||||
|
|
SCHEDULESOF INVESTMENTS | 25 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® EDGE MSCI MULTIFACTOR INDUSTRIALS ETF
February 28, 2018
Value | ||||||||
TOTAL INVESTMENTS | ||||||||
(Cost: $2,867,158) | $ | 3,183,801 | ||||||
Other Assets, Less Liabilities — 0.22% | 6,983 | |||||||
|
| |||||||
NET ASSETS — 100.00% | $ | 3,190,784 | ||||||
|
|
a | Non-income producing security. |
b | Affiliate of the Fund. |
c | Annualized 7-day yield as of period end. |
Affiliates (Note 2)
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows:
Affiliated issuer | Shares held at 08/31/17 | Shares purchased | Shares sold | Shares held at 02/28/18 | Value at 02/28/18 | Income | Net realized gain (loss) a | Change in unrealized appreciation (depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, | — | — | b | — | — | $ | — | $ | 4 | c | $ | — | $ | — | ||||||||||||||||||
BlackRock Cash Funds: Treasury, | 5,623 | — | (4,273 | )b | 1,350 | 1,350 | 47 | — | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 1,350 | $ | 51 | $ | — | $ | — | |||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
a | Includes realized capital gain distributions from an affiliated fund, if any. |
b | Net of purchases and sales. |
c | Includes the Fund’s portion of securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. |
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common stocks | $ | 3,182,451 | $ | — | $ | — | $ | 3,182,451 | ||||||||
Money market funds | 1,350 | — | — | 1,350 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 3,183,801 | $ | — | $ | — | $ | 3,183,801 | ||||||||
|
|
|
|
|
|
|
| |||||||||
See notes to financial statements.
26 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® EDGE MSCI MULTIFACTOR MATERIALS ETF
February 28, 2018
Security | Shares | Value | ||||||
COMMON STOCKS — 99.76% |
| |||||||
CHEMICALS — 66.98% |
| |||||||
Air Products & Chemicals Inc. | 909 | $ | 146,158 | |||||
Albemarle Corp. | 1,510 | 151,649 | ||||||
Celanese Corp. Series A | 1,905 | 192,138 | ||||||
Chemours Co. (The) | 3,218 | 152,887 | ||||||
DowDuPont Inc. | 14,818 | 1,041,706 | ||||||
Eastman Chemical Co. | 2,119 | 214,189 | ||||||
Ecolab Inc. | 1,070 | 139,582 | ||||||
International Flavors & Fragrances Inc. | 549 | 77,546 | ||||||
LyondellBasell Industries NV Class A | 3,297 | 356,801 | ||||||
Monsanto Co. | 2,223 | 274,252 | ||||||
PPG Industries Inc. | 931 | 104,682 | ||||||
Praxair Inc. | 1,339 | 200,515 | ||||||
Sherwin-Williams Co. (The) | 842 | 338,130 | ||||||
|
| |||||||
3,390,235 | ||||||||
CONSTRUCTION MATERIALS — 0.31% |
| |||||||
Vulcan Materials Co. | 131 | 15,423 | ||||||
|
| |||||||
15,423 | ||||||||
CONTAINERS & PACKAGING — 18.40% |
| |||||||
Avery Dennison Corp. | 1,520 | 179,588 | ||||||
Crown Holdings Inc.a | 1,963 | 97,836 | ||||||
International Paper Co. | 4,028 | 240,028 | ||||||
Packaging Corp. of America | 1,553 | 185,118 | ||||||
WestRock Co. | 3,478 | 228,713 | ||||||
|
| |||||||
931,283 |
Security | Shares | Value | ||||||
METALS & MINING — 14.07% |
| |||||||
Freeport-McMoRan Inc.a | 2,524 | $ | 46,946 | |||||
Newmont Mining Corp. | 6,465 | 246,963 | ||||||
Nucor Corp. | 4,021 | 262,973 | ||||||
Steel Dynamics Inc. | 3,359 | 155,354 | ||||||
|
| |||||||
712,236 | ||||||||
|
| |||||||
TOTAL COMMON STOCKS |
| |||||||
(Cost: $4,682,268) |
| 5,049,177 | ||||||
SHORT-TERM INVESTMENTS — 0.07% |
| |||||||
MONEY MARKET FUNDS — 0.07% |
| |||||||
BlackRock Cash Funds: Treasury, |
| |||||||
1.32%b,c | 3,527 | 3,527 | ||||||
|
| |||||||
3,527 | ||||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||||
(Cost: $3,527) |
| 3,527 | ||||||
|
| |||||||
TOTAL INVESTMENTS |
| |||||||
(Cost: $4,685,795) | 5,052,704 | |||||||
Other Assets, Less Liabilities — 0.17% |
| 8,743 | ||||||
|
| |||||||
NET ASSETS — 100.00% |
| $ | 5,061,447 | |||||
|
|
a | Non-income producing security. |
b | Affiliate of the Fund. |
c | Annualized 7-day yield as of period end. |
Affiliates (Note 2)
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows:
Affiliated issuer | Shares held at 08/31/17 | Shares purchased | Shares sold | Shares held at 02/28/18 | Value at 02/28/18 | Income | Net realized gain (loss) a | Change in unrealized appreciation (depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Treasury, | 9,030 | — | (5,503 | )b | 3,527 | $ | 3,527 | $ | 41 | $ | — | $ | — | |||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
a | Includes realized capital gain distributions from an affiliated fund, if any. |
b | Net of purchases and sales. |
SCHEDULESOF INVESTMENTS | 27 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® EDGE MSCI MULTIFACTOR MATERIALS ETF
February 28, 2018
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common stocks | $ | 5,049,177 | $ | — | $ | — | $ | 5,049,177 | ||||||||
Money market funds | 3,527 | — | — | 3,527 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 5,052,704 | $ | — | $ | — | $ | 5,052,704 | ||||||||
|
|
|
|
|
|
|
| |||||||||
See notes to financial statements.
28 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® EDGE MSCI MULTIFACTOR TECHNOLOGY ETF
February 28, 2018
Security | Shares | Value | ||||||
COMMON STOCKS — 99.84% |
| |||||||
COMMUNICATIONS EQUIPMENT — 4.57% |
| |||||||
Cisco Systems Inc. | 2,492 | $ | 111,592 | |||||
F5 Networks Inc.a | 863 | 128,172 | ||||||
Juniper Networks Inc. | 5,165 | 132,534 | ||||||
|
| |||||||
372,298 | ||||||||
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 13.48% |
| |||||||
Arrow Electronics Inc.a | 1,200 | 97,896 | ||||||
Avnet Inc. | 727 | 31,043 | ||||||
Cognex Corp. | 1,737 | 93,294 | ||||||
Corning Inc. | 6,167 | 179,336 | ||||||
Flex Ltd.a | 7,231 | 130,881 | ||||||
FLIR Systems Inc. | 1,866 | 91,621 | ||||||
IPG Photonics Corp.a | 512 | 125,768 | ||||||
TE Connectivity Ltd. | 2,113 | 217,829 | ||||||
Trimble Inc.a | 3,437 | 130,365 | ||||||
|
| |||||||
1,098,033 | ||||||||
INTERNET SOFTWARE & SERVICES — 12.85% |
| |||||||
Alphabet Inc. Class Aa | 253 | 279,292 | ||||||
Alphabet Inc. Class Ca | 270 | 298,277 | ||||||
Facebook Inc. Class Aa | 2,331 | 415,664 | ||||||
IAC/InterActiveCorp.a | 358 | 53,310 | ||||||
|
| |||||||
1,046,543 | ||||||||
IT SERVICES — 13.09% |
| |||||||
Accenture PLC Class A | 519 | 83,564 | ||||||
Automatic Data Processing Inc. | 1,532 | 176,670 | ||||||
Broadridge Financial Solutions Inc. | 1,581 | 158,701 | ||||||
DXC Technology Co. | 1,986 | 203,644 | ||||||
International Business Machines Corp. | 163 | 25,400 | ||||||
Jack Henry & Associates Inc. | 1,051 | 123,282 | ||||||
Leidos Holdings Inc. | 1,950 | 123,455 | ||||||
Mastercard Inc. Class A | 235 | 41,304 | ||||||
Visa Inc. Class A | 1,056 | 129,825 | ||||||
|
| |||||||
1,065,845 | ||||||||
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 12.42% |
| |||||||
Applied Materials Inc. | 4,163 | 239,747 | ||||||
Intel Corp. | 2,861 | 141,019 | ||||||
KLA-Tencor Corp. | 1,742 | 197,386 | ||||||
Lam Research Corp. | 949 | 182,075 | ||||||
Micron Technology Inc.a | 4,723 | 230,530 | ||||||
NVIDIA Corp. | 84 | 20,328 | ||||||
|
| |||||||
1,011,085 |
Security | Shares | Value | ||||||
SOFTWARE — 21.55% |
| |||||||
CA Inc. | 4,289 | $ | 150,544 | |||||
Cadence Design Systems Inc.a | 3,802 | 147,403 | ||||||
Dell Technologies Inc. Class Va | 2,206 | 163,884 | ||||||
Intuit Inc. | 1,323 | 220,756 | ||||||
Microsoft Corp. | 7,996 | 749,785 | ||||||
Oracle Corp. | 1,017 | 51,531 | ||||||
Synopsys Inc.a | 1,967 | 166,546 | ||||||
VMware Inc. Class Aa | 792 | 104,346 | ||||||
|
| |||||||
1,754,795 | ||||||||
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS — 21.88% |
| |||||||
Apple Inc. | 6,060 | 1,079,407 | ||||||
Hewlett Packard Enterprise Co. | 13,314 | 247,507 | ||||||
NetApp Inc. | 3,231 | 195,637 | ||||||
Western Digital Corp. | 1,958 | 170,425 | ||||||
Xerox Corp. | 2,943 | 89,232 | ||||||
|
| |||||||
1,782,208 | ||||||||
|
| |||||||
TOTAL COMMON STOCKS |
| |||||||
(Cost: $7,066,455) |
| 8,130,807 | ||||||
SHORT-TERM INVESTMENTS — 0.05% |
| |||||||
MONEY MARKET FUNDS — 0.05% |
| |||||||
BlackRock Cash Funds: Treasury, |
| |||||||
1.32%b,c | 3,870 | 3,870 | ||||||
|
| |||||||
3,870 | ||||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||||
(Cost: $3,870) |
| 3,870 | ||||||
|
| |||||||
TOTAL INVESTMENTS |
| |||||||
(Cost: $7,070,325) | 8,134,677 | |||||||
Other Assets, Less Liabilities — 0.11% |
| 8,667 | ||||||
|
| |||||||
NET ASSETS — 100.00% |
| $ | 8,143,344 | |||||
|
|
a | Non-income producing security. |
b | Affiliate of the Fund. |
c | Annualized 7-day yield as of period end. |
SCHEDULESOF INVESTMENTS | 29 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® EDGE MSCI MULTIFACTOR TECHNOLOGY ETF
February 28, 2018
Affiliates (Note 2)
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows:
Affiliated issuer | Shares held at 08/31/17 | Shares purchased | Shares sold | Shares held at 02/28/18 | Value at 02/28/18 | Income | Net realized gain (loss) a | Change in unrealized appreciation (depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, | 54,390 | — | (54,390 | )b | — | $ | — | $ | 198 | c | $ | 11 | $ | — | ||||||||||||||||||
BlackRock Cash Funds: Treasury, | 4,522 | — | (652 | )b | 3,870 | 3,870 | 111 | — | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 3,870 | $ | 309 | $ | 11 | $ | — | |||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
a | Includes realized capital gain distributions from an affiliated fund, if any. |
b | Net of purchases and sales. |
c | Includes the Fund’s portion of securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. |
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common stocks | $ | 8,130,807 | $ | — | $ | — | $ | 8,130,807 | ||||||||
Money market funds | 3,870 | — | — | 3,870 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 8,134,677 | $ | — | $ | — | $ | 8,134,677 | ||||||||
|
|
|
|
|
|
|
| |||||||||
See notes to financial statements.
30 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® EDGE MSCI MULTIFACTOR UTILITIES ETF
February 28, 2018
Security | Shares | Value | ||||||
COMMON STOCKS — 99.46% |
| |||||||
ELECTRIC UTILITIES — 61.48% |
| |||||||
Alliant Energy Corp. | 2,150 | $ | 83,097 | |||||
American Electric Power Co. Inc. | 1,220 | 80,008 | ||||||
Duke Energy Corp. | 2,057 | 154,974 | ||||||
Edison International | 1,061 | 64,286 | ||||||
Entergy Corp. | 35 | 2,654 | ||||||
Eversource Energy | 2,088 | 119,016 | ||||||
Exelon Corp. | 5,023 | 186,052 | ||||||
FirstEnergy Corp. | 89 | 2,877 | ||||||
NextEra Energy Inc. | 1,437 | 218,640 | ||||||
OGE Energy Corp. | 2,368 | 74,213 | ||||||
PG&E Corp. | 2,707 | 111,231 | ||||||
Pinnacle West Capital Corp. | 1,054 | 81,116 | ||||||
PPL Corp. | 1,082 | 30,999 | ||||||
Southern Co. (The) | 2,736 | 117,812 | ||||||
Westar Energy Inc. | 1,555 | 75,775 | ||||||
Xcel Energy Inc. | 2,682 | 116,077 | ||||||
|
| |||||||
1,518,827 | ||||||||
GAS UTILITIES — 6.61% |
| |||||||
Atmos Energy Corp. | 1,045 | 84,112 | ||||||
UGI Corp. | 1,837 | 79,157 | ||||||
|
| |||||||
163,269 | ||||||||
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS — 3.43% |
| |||||||
AES Corp./VA | 7,809 | 84,884 | ||||||
|
| |||||||
84,884 | ||||||||
MULTI-UTILITIES — 27.78% |
| |||||||
Ameren Corp. | 1,815 | 98,555 |
Security | Shares | Value | ||||||
Consolidated Edison Inc. | 1,835 | $ | 137,423 | |||||
Dominion Energy Inc. | 1,771 | 131,178 | ||||||
DTE Energy Co. | 780 | 78,608 | ||||||
Public Service Enterprise Group Inc. | 1,985 | 96,134 | ||||||
SCANA Corp. | 1,829 | 72,556 | ||||||
Sempra Energy | 447 | 48,714 | ||||||
WEC Energy Group Inc. | 385 | 23,069 | ||||||
|
| |||||||
686,237 | ||||||||
WATER UTILITIES — 0.16% |
| |||||||
American Water Works Co. Inc. | 51 | 4,047 | ||||||
|
| |||||||
4,047 | ||||||||
|
| |||||||
TOTAL COMMON STOCKS |
| |||||||
(Cost: $2,708,236) |
| 2,457,264 | ||||||
SHORT-TERM INVESTMENTS — 0.15% |
| |||||||
MONEY MARKET FUNDS — 0.15% |
| |||||||
BlackRock Cash Funds: Treasury, |
| |||||||
1.32%a,b | 3,581 | 3,581 | ||||||
|
| |||||||
3,581 | ||||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||||
(Cost: $3,581) | 3,581 | |||||||
|
| |||||||
TOTAL INVESTMENTS |
| |||||||
(Cost: $2,711,817) | 2,460,845 | |||||||
Other Assets, Less Liabilities — 0.39% |
| 9,645 | ||||||
|
| |||||||
NET ASSETS — 100.00% |
| $ | 2,470,490 | |||||
|
|
a | Affiliate of the Fund. |
b | Annualized 7-day yield as of period end. |
Affiliates (Note 2)
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows:
Affiliated issuer | Shares held at 08/31/17 | Shares purchased | Shares sold | Shares held at 02/28/18 | Value at 02/28/18 | Income | Net realized gain (loss) a | Change in unrealized appreciation (depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Treasury, | 2,054 | 1,527 | b | — | 3,581 | $ | 3,581 | $ | 25 | $ | — | $ | — | |||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
a | Includes realized capital gain distributions from an affiliated fund, if any. |
b | Net of purchases and sales. |
SCHEDULESOF INVESTMENTS | 31 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® EDGE MSCI MULTIFACTOR UTILITIES ETF
February 28, 2018
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common stocks | $ | 2,457,264 | $ | — | $ | — | $ | 2,457,264 | ||||||||
Money market funds | 3,581 | — | — | 3,581 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 2,460,845 | $ | — | $ | — | $ | 2,460,845 | ||||||||
|
|
|
|
|
|
|
| |||||||||
See notes to financial statements.
32 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Assets and Liabilities (Unaudited)
iSHARES® TRUST
February 28, 2018
iShares Edge MSCI Multifactor Consumer Discretionary ETF | iShares Edge MSCI Multifactor | iShares Edge MSCI Multifactor | ||||||||||
ASSETS | ||||||||||||
Investments in securities, at cost: | ||||||||||||
Unaffiliated | $ | 2,640,515 | $ | 2,556,352 | $ | 2,534,758 | ||||||
Affiliated (Note 2) | 46,695 | 1,899 | 8,053 | |||||||||
|
|
|
|
|
| |||||||
Total cost of investments in securities | $ | 2,687,210 | $ | 2,558,251 | $ | 2,542,811 | ||||||
|
|
|
|
|
| |||||||
Investments in securities, at fair value (including securities on loana) (Note 1): |
| |||||||||||
Unaffiliated | $ | 3,220,215 | $ | 2,505,535 | $ | 2,570,094 | ||||||
Affiliated (Note 2) | 46,695 | 1,899 | 8,053 | |||||||||
Receivables: | ||||||||||||
Dividends and interest | 2,371 | 3,059 | 16,657 | |||||||||
|
|
|
|
|
| |||||||
Total Assets | 3,269,281 | 2,510,493 | 2,594,804 | |||||||||
|
|
|
|
|
| |||||||
LIABILITIES | ||||||||||||
Payables: | ||||||||||||
Collateral for securities on loan (Note 1) | 40,621 | — | 4,844 | |||||||||
Investment advisory fees (Note 2) | 877 | 692 | 715 | |||||||||
|
|
|
|
|
| |||||||
Total Liabilities | 41,498 | 692 | 5,559 | |||||||||
|
|
|
|
|
| |||||||
NET ASSETS | $ | 3,227,783 | $ | 2,509,801 | $ | 2,589,245 | ||||||
|
|
|
|
|
| |||||||
Net assets consist of: | ||||||||||||
Paid-in capital | $ | 2,696,831 | $ | 2,609,796 | $ | 2,564,672 | ||||||
Undistributed net investment income | 2,265 | 6,917 | 16,415 | |||||||||
Accumulated net realized loss | (51,013 | ) | (56,095 | ) | (27,178 | ) | ||||||
Net unrealized appreciation (depreciation) | 579,700 | (50,817 | ) | 35,336 | ||||||||
|
|
|
|
|
| |||||||
NET ASSETS | $ | 3,227,783 | $ | 2,509,801 | $ | 2,589,245 | ||||||
|
|
|
|
|
| |||||||
Shares outstandingb | 100,000 | 100,000 | 100,000 | |||||||||
|
|
|
|
|
| |||||||
Net asset value per share | $ | 32.28 | $ | 25.10 | $ | 25.89 | ||||||
|
|
|
|
|
|
a | Securities on loan with values of $39,919, $ — and $4,675, respectively. See Note 1. |
b | No par value, unlimited number of shares authorized. |
See notes to financial statements.
FINANCIAL STATEMENTS | 33 |
Table of Contents
Statements of Assets and Liabilities (Unaudited) (Continued)
iSHARES® TRUST
February 28, 2018
iShares Edge MSCI Multifactor | iShares Edge MSCI Multifactor | iShares Edge MSCI Multifactor | ||||||||||
ASSETS | ||||||||||||
Investments in securities, at cost: | ||||||||||||
Unaffiliated | $ | 8,247,055 | $ | 9,201,566 | $ | 2,865,808 | ||||||
Affiliated (Note 2) | 4,834 | 6,167 | 1,350 | |||||||||
|
|
|
|
|
| |||||||
Total cost of investments in securities | $ | 8,251,889 | $ | 9,207,733 | $ | 2,867,158 | ||||||
|
|
|
|
|
| |||||||
Investments in securities, at fair value (Note 1): | ||||||||||||
Unaffiliated | $ | 8,904,299 | $ | 9,708,461 | $ | 3,182,451 | ||||||
Affiliated (Note 2) | 4,834 | 6,167 | 1,350 | |||||||||
Receivables: | ||||||||||||
Dividends and interest | 7,817 | 15,034 | 7,841 | |||||||||
|
|
|
|
|
| |||||||
Total Assets | 8,916,950 | 9,729,662 | 3,191,642 | |||||||||
|
|
|
|
|
| |||||||
LIABILITIES | ||||||||||||
Payables: | ||||||||||||
Investment advisory fees (Note 2) | 2,376 | 2,820 | 858 | |||||||||
|
|
|
|
|
| |||||||
Total Liabilities | 2,376 | 2,820 | 858 | |||||||||
|
|
|
|
|
| |||||||
NET ASSETS | $ | 8,914,574 | $ | 9,726,842 | $ | 3,190,784 | ||||||
|
|
|
|
|
| |||||||
Net assets consist of: | ||||||||||||
Paid-in capital | $ | 7,769,194 | $ | 8,060,123 | $ | 2,491,794 | ||||||
Undistributed net investment income | 17,763 | 9,127 | 7,983 | |||||||||
Undistributed net realized gain | 470,373 | 1,150,697 | 374,364 | |||||||||
Net unrealized appreciation | 657,244 | 506,895 | 316,643 | |||||||||
|
|
|
|
|
| |||||||
NET ASSETS | $ | 8,914,574 | $ | 9,726,842 | $ | 3,190,784 | ||||||
|
|
|
|
|
| |||||||
Shares outstandinga | 250,000 | 300,000 | 100,000 | |||||||||
|
|
|
|
|
| |||||||
Net asset value per share | $ | 35.66 | $ | 32.42 | $ | 31.91 | ||||||
|
|
|
|
|
|
a | No par value, unlimited number of shares authorized. |
See notes to financial statements.
34 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Assets and Liabilities (Unaudited) (Continued)
iSHARES® TRUST
February 28, 2018
iShares Edge MSCI Multifactor Materials ETF | iShares Edge MSCI Multifactor | iShares Edge MSCI Multifactor | ||||||||||
ASSETS | ||||||||||||
Investments in securities, at cost: | ||||||||||||
Unaffiliated | $ | 4,682,268 | $ | 7,066,455 | $ | 2,708,236 | ||||||
Affiliated (Note 2) | 3,527 | 3,870 | 3,581 | |||||||||
|
|
|
|
|
| |||||||
Total cost of investments in securities | $ | 4,685,795 | $ | 7,070,325 | $ | 2,711,817 | ||||||
|
|
|
|
|
| |||||||
Investments in securities, at fair value (Note 1): | ||||||||||||
Unaffiliated | $ | 5,049,177 | $ | 8,130,807 | $ | 2,457,264 | ||||||
Affiliated (Note 2) | 3,527 | 3,870 | 3,581 | |||||||||
Receivables: | ||||||||||||
Dividends and interest | 10,114 | 10,790 | 10,313 | |||||||||
|
|
|
|
|
| |||||||
Total Assets | 5,062,818 | 8,145,467 | 2,471,158 | |||||||||
|
|
|
|
|
| |||||||
LIABILITIES | ||||||||||||
Payables: | ||||||||||||
Investment advisory fees (Note 2) | 1,371 | 2,123 | 668 | |||||||||
|
|
|
|
|
| |||||||
Total Liabilities | 1,371 | 2,123 | 668 | |||||||||
|
|
|
|
|
| |||||||
NET ASSETS | $ | 5,061,447 | $ | 8,143,344 | $ | 2,470,490 | ||||||
|
|
|
|
|
| |||||||
Net assets consist of: | ||||||||||||
Paid-in capital | $ | 4,303,697 | $ | 6,450,460 | $ | 2,603,069 | ||||||
Undistributed net investment income | 9,604 | 14,534 | 11,347 | |||||||||
Undistributed net realized gain | 381,237 | 613,998 | 107,046 | |||||||||
Net unrealized appreciation (depreciation) | 366,909 | 1,064,352 | (250,972 | ) | ||||||||
|
|
|
|
|
| |||||||
NET ASSETS | $ | 5,061,447 | $ | 8,143,344 | $ | 2,470,490 | ||||||
|
|
|
|
|
| |||||||
Shares outstandinga | 150,000 | 200,000 | 100,000 | |||||||||
|
|
|
|
|
| |||||||
Net asset value per share | $ | 33.74 | $ | 40.72 | $ | 24.70 | ||||||
|
|
|
|
|
|
a | No par value, unlimited number of shares authorized. |
See notes to financial statements.
FINANCIAL STATEMENTS | 35 |
Table of Contents
Statements of Operations (Unaudited)
iSHARES® TRUST
Six months ended February 28, 2018
iShares Edge MSCI Multifactor Consumer Discretionary ETF | iShares Edge MSCI Multifactor Consumer Staples ETF | iShares Edge MSCI Multifactor Energy ETF | ||||||||||
NET INVESTMENT INCOME | ||||||||||||
Dividends — unaffiliated | $ | 20,945 | $ | 31,340 | $ | 39,227 | ||||||
Dividends — affiliated (Note 2) | 22 | 24 | 16 | |||||||||
Securities lending income — affiliated — net (Note 2) | 8 | — | 45 | |||||||||
|
|
|
|
|
| |||||||
Total investment income | 20,975 | 31,364 | 39,288 | |||||||||
|
|
|
|
|
| |||||||
EXPENSES | ||||||||||||
Investment advisory fees (Note 2) | 5,260 | 4,448 | 4,664 | |||||||||
|
|
|
|
|
| |||||||
Total expenses | 5,260 | 4,448 | 4,664 | |||||||||
|
|
|
|
|
| |||||||
Net investment income | 15,715 | 26,916 | 34,624 | |||||||||
|
|
|
|
|
| |||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||
Net realized gain (loss) from: | ||||||||||||
Investments — unaffiliated | (30,386 | ) | (43,514 | ) | (20,324 | ) | ||||||
Investments — affiliated (Note 2) | — | — | (11 | ) | ||||||||
|
|
|
|
|
| |||||||
Net realized loss | (30,386 | ) | (43,514 | ) | (20,335 | ) | ||||||
|
|
|
|
|
| |||||||
Net change in unrealized appreciation/depreciation on: | ||||||||||||
Investments — unaffiliated | 503,892 | 53,442 | 224,462 | |||||||||
|
|
|
|
|
| |||||||
Net change in unrealized appreciation/depreciation | 503,892 | 53,442 | 224,462 | |||||||||
|
|
|
|
|
| |||||||
Net realized and unrealized gain | 473,506 | 9,928 | 204,127 | |||||||||
|
|
|
|
|
| |||||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 489,221 | $ | 36,844 | $ | 238,751 | ||||||
|
|
|
|
|
|
See notes to financial statements.
36 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Operations (Unaudited) (Continued)
iSHARES® TRUST
Six months ended February 28, 2018
iShares Edge MSCI Multifactor | iShares Edge MSCI Multifactor | iShares Edge MSCI Multifactor | ||||||||||
NET INVESTMENT INCOME | ||||||||||||
Dividends — unaffiliateda | $ | 53,683 | $ | 80,533 | $ | 26,729 | ||||||
Dividends — affiliated (Note 2) | 84 | 121 | 47 | |||||||||
Securities lending income — affiliated — net (Note 2) | 17 | 63 | 4 | |||||||||
|
|
|
|
|
| |||||||
Total investment income | 53,784 | 80,717 | 26,780 | |||||||||
|
|
|
|
|
| |||||||
EXPENSES | ||||||||||||
Investment advisory fees (Note 2) | 9,899 | 25,087 | 5,545 | |||||||||
|
|
|
|
|
| |||||||
Total expenses | 9,899 | 25,087 | 5,545 | |||||||||
|
|
|
|
|
| |||||||
Net investment income | 43,885 | 55,630 | 21,235 | |||||||||
|
|
|
|
|
| |||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||
Net realized gain (loss) from: | ||||||||||||
Investments — unaffiliated | (2,361 | ) | (202,178 | ) | (89,680 | ) | ||||||
Investments — affiliated (Note 2) | 22 | (31 | ) | — | ||||||||
In-kind redemptions — unaffiliated | 479,003 | 1,348,031 | 465,151 | |||||||||
|
|
|
|
|
| |||||||
Net realized gain | 476,664 | 1,145,822 | 375,471 | |||||||||
|
|
|
|
|
| |||||||
Net change in unrealized appreciation/depreciation on: | ||||||||||||
Investments — unaffiliated | 123,551 | (142,427 | ) | (5,222 | ) | |||||||
|
|
|
|
|
| |||||||
Net change in unrealized appreciation/depreciation | 123,551 | (142,427 | ) | (5,222 | ) | |||||||
|
|
|
|
|
| |||||||
Net realized and unrealized gain | 600,215 | 1,003,395 | 370,249 | |||||||||
|
|
|
|
|
| |||||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 644,100 | $ | 1,059,025 | $ | 391,484 | ||||||
|
|
|
|
|
|
a | Net of foreign withholding tax of $ —, $ — and $48, respectively. |
See notes to financial statements.
FINANCIAL STATEMENTS | 37 |
Table of Contents
Statements of Operations (Unaudited) (Continued)
iSHARES® TRUST
Six months ended February 28, 2018
iShares Edge MSCI Multifactor | iShares Edge MSCI Multifactor | iShares Edge MSCI Multifactor | ||||||||||
NET INVESTMENT INCOME | ||||||||||||
Dividends — unaffiliated | $ | 48,774 | $ | 38,211 | $ | 45,389 | ||||||
Dividends — affiliated (Note 2) | 41 | 111 | 25 | |||||||||
Securities lending income — affiliated — net (Note 2) | — | 198 | — | |||||||||
|
|
|
|
|
| |||||||
Total investment income | 48,815 | 38,520 | 45,414 | |||||||||
|
|
|
|
|
| |||||||
EXPENSES | ||||||||||||
Investment advisory fees (Note 2) | 8,774 | 10,456 | 4,817 | |||||||||
|
|
|
|
|
| |||||||
Total expenses | 8,774 | 10,456 | 4,817 | |||||||||
|
|
|
|
|
| |||||||
Net investment income | 40,041 | 28,064 | 40,597 | |||||||||
|
|
|
|
|
| |||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||
Net realized gain (loss) from: | ||||||||||||
Investments — unaffiliated | (8,555 | ) | (38,674 | ) | (31,129 | ) | ||||||
Investments — affiliated (Note 2) | — | 11 | — | |||||||||
In-kind redemptions — unaffiliated | 390,551 | 656,225 | 143,596 | |||||||||
|
|
|
|
|
| |||||||
Net realized gain | 381,996 | 617,562 | 112,467 | |||||||||
|
|
|
|
|
| |||||||
Net change in unrealized appreciation/depreciation on: | ||||||||||||
Investments — unaffiliated | 78,101 | 231,290 | (381,197 | ) | ||||||||
|
|
|
|
|
| |||||||
Net change in unrealized appreciation/depreciation | 78,101 | 231,290 | (381,197 | ) | ||||||||
|
|
|
|
|
| |||||||
Net realized and unrealized gain (loss) | 460,097 | 848,852 | (268,730 | ) | ||||||||
|
|
|
|
|
| |||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | 500,138 | $ | 876,916 | $ | (228,133 | ) | |||||
|
|
|
|
|
|
See notes to financial statements.
38 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Changes in Net Assets
iSHARES® TRUST
iShares Edge MSCI Multifactor Consumer Discretionary ETF | iShares Edge MSCI Multifactor Consumer Staples ETF | |||||||||||||||
Six months ended February 28, 2018 | Year ended August 31, 2017 | Six months ended February 28, 2018 | Year ended August 31, 2017 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income | $ | 15,715 | $ | 36,551 | $ | 26,916 | $ | 56,031 | ||||||||
Net realized gain (loss) | (30,386 | ) | 160,946 | (43,514 | ) | 65,000 | ||||||||||
Net change in unrealized appreciation/depreciation | 503,892 | (5,942 | ) | 53,442 | (119,048 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase in net assets resulting from operations | 489,221 | 191,555 | 36,844 | 1,983 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
From net investment income | (17,728 | ) | (39,121 | ) | (29,293 | ) | (57,018 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions to shareholders | (17,728 | ) | (39,121 | ) | (29,293 | ) | (57,018 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Proceeds from shares sold | — | 1,384,928 | — | 1,269,634 | ||||||||||||
Cost of shares redeemed | — | (1,384,928 | ) | — | (1,269,634 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase in net assets from capital share transactions | — | — | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
INCREASE (DECREASE) IN NET ASSETS | 471,493 | 152,434 | 7,551 | (55,035 | ) | |||||||||||
NET ASSETS | ||||||||||||||||
Beginning of period | 2,756,290 | 2,603,856 | 2,502,250 | 2,557,285 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 3,227,783 | $ | 2,756,290 | $ | 2,509,801 | $ | 2,502,250 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed net investment income included in net assets at end of period | $ | 2,265 | $ | 4,278 | $ | 6,917 | $ | 9,294 | ||||||||
|
|
|
|
|
|
|
| |||||||||
SHARES ISSUED AND REDEEMED | ||||||||||||||||
Shares sold | — | 50,000 | — | 50,000 | ||||||||||||
Shares redeemed | — | (50,000 | ) | — | (50,000 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase in shares outstanding | — | — | — | — | ||||||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
FINANCIAL STATEMENTS | 39 |
Table of Contents
Statements of Changes in Net Assets (Continued)
iSHARES® TRUST
iShares Edge MSCI Multifactor Energy ETF | iShares Edge MSCI Multifactor Financials ETF | |||||||||||||||
Six months ended February 28, 2018 | Year ended August 31, 2017 | Six months ended February 28, 2018 | Year ended August 31, 2017 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income | $ | 34,624 | $ | 66,172 | $ | 43,885 | $ | 43,944 | ||||||||
Net realized gain (loss) | (20,335 | ) | 62,643 | 476,664 | 115,795 | |||||||||||
Net change in unrealized appreciation/depreciation | 224,462 | (218,567 | ) | 123,551 | 408,871 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | 238,751 | (89,752 | ) | 644,100 | 568,610 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
From net investment income | (34,074 | ) | (66,341 | ) | (35,330 | ) | (42,435 | ) | ||||||||
From net realized gain | — | — | (121,518 | ) | (8,092 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions to shareholders | (34,074 | ) | (66,341 | ) | (156,848 | ) | (50,527 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Proceeds from shares sold | — | 1,209,222 | 7,009,115 | — | ||||||||||||
Cost of shares redeemed | — | (1,209,222 | ) | (1,773,400 | ) | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase in net assets from capital share transactions | — | — | 5,235,715 | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
INCREASE (DECREASE) IN NET ASSETS | 204,677 | (156,093 | ) | 5,722,967 | 518,083 | |||||||||||
NET ASSETS | ||||||||||||||||
Beginning of period | 2,384,568 | 2,540,661 | 3,191,607 | 2,673,524 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 2,589,245 | $ | 2,384,568 | $ | 8,914,574 | $ | 3,191,607 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed net investment income included in net assets at end of period | $ | 16,415 | $ | 15,865 | $ | 17,763 | $ | 9,208 | ||||||||
|
|
|
|
|
|
|
| |||||||||
SHARES ISSUED AND REDEEMED | ||||||||||||||||
Shares sold | — | 50,000 | 200,000 | — | ||||||||||||
Shares redeemed | — | (50,000 | ) | (50,000 | ) | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase in shares outstanding | — | — | 150,000 | — | ||||||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
40 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Changes in Net Assets (Continued)
iSHARES® TRUST
iShares Edge MSCI Multifactor Healthcare ETF | iShares Edge MSCI Multifactor Industrials ETF | |||||||||||||||
Six months ended February 28, 2018 | Year ended August 31, 2017 | Six months ended February 28, 2018 | Year ended August 31, 2017 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income | $ | 55,630 | $ | 28,852 | $ | 21,235 | $ | 43,894 | ||||||||
Net realized gain | 1,145,822 | 5,288 | 375,471 | 135,408 | ||||||||||||
Net change in unrealized appreciation/depreciation | (142,427 | ) | 564,671 | (5,222 | ) | 245,876 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase in net assets resulting from operations | 1,059,025 | 598,811 | 391,484 | 425,178 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
From net investment income | (55,059 | ) | (24,710 | ) | (21,366 | ) | (42,976 | ) | ||||||||
From net realized gain | — | (14,617 | ) | (118,532 | ) | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions to shareholders | (55,059 | ) | (39,327 | ) | (139,898 | ) | (42,976 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Proceeds from shares sold | 9,220,952 | 5,868,890 | 1,588,421 | — | ||||||||||||
Cost of shares redeemed | (9,570,974 | ) | — | (1,630,423 | ) | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets from capital share transactions | (350,022 | ) | 5,868,890 | (42,002 | ) | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
INCREASE IN NET ASSETS | 653,944 | 6,428,374 | 209,584 | 382,202 | ||||||||||||
NET ASSETS | ||||||||||||||||
Beginning of period | 9,072,898 | 2,644,524 | 2,981,200 | 2,598,998 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 9,726,842 | $ | 9,072,898 | $ | 3,190,784 | $ | 2,981,200 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed net investment income included in net assets at end of period | $ | 9,127 | $ | 8,556 | $ | 7,983 | $ | 8,114 | ||||||||
|
|
|
|
|
|
|
| |||||||||
SHARES ISSUED AND REDEEMED | ||||||||||||||||
Shares sold | 300,000 | 200,000 | 50,000 | — | ||||||||||||
Shares redeemed | (300,000 | ) | — | (50,000 | ) | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase in shares outstanding | — | 200,000 | — | — | ||||||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
FINANCIAL STATEMENTS | 41 |
Table of Contents
Statements of Changes in Net Assets (Continued)
iSHARES® TRUST
iShares Edge MSCI Multifactor Materials ETF | iShares Edge MSCI Multifactor Technology ETF | |||||||||||||||
Six months ended February 28, 2018 | Year ended August 31, 2017 | Six months ended February 28, 2018 | Year ended August 31, 2017 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income | $ | 40,041 | $ | 53,995 | $ | 28,064 | $ | 33,521 | ||||||||
Net realized gain | 381,996 | 302,536 | 617,562 | 322,222 | ||||||||||||
Net change in unrealized appreciation/depreciation | 78,101 | 149,284 | 231,290 | 519,846 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase in net assets resulting from operations | 500,138 | 505,815 | 876,916 | 875,589 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
From net investment income | (40,268 | ) | (54,305 | ) | (19,632 | ) | (34,236 | ) | ||||||||
From net realized gain | (25,521 | ) | — | (325,776 | ) | (38,846 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions to shareholders | (65,789 | ) | (54,305 | ) | (345,408 | ) | (73,082 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Proceeds from shares sold | 1,680,681 | 3,032,744 | 5,969,073 | — | ||||||||||||
Cost of shares redeemed | (1,696,680 | ) | (1,509,673 | ) | (2,050,539 | ) | — | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets from capital share transactions | (15,999 | ) | 1,523,071 | 3,918,534 | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
INCREASE IN NET ASSETS | 418,350 | 1,974,581 | 4,450,042 | 802,507 | ||||||||||||
NET ASSETS | ||||||||||||||||
Beginning of period | 4,643,097 | 2,668,516 | 3,693,302 | 2,890,795 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 5,061,447 | $ | 4,643,097 | $ | 8,143,344 | $ | 3,693,302 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed net investment income included in net assets at end of period | $ | 9,604 | $ | 9,831 | $ | 14,534 | $ | 6,102 | ||||||||
|
|
|
|
|
|
|
| |||||||||
SHARES ISSUED AND REDEEMED | ||||||||||||||||
Shares sold | 50,000 | 100,000 | 150,000 | — | ||||||||||||
Shares redeemed | (50,000 | ) | (50,000 | ) | (50,000 | ) | — | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase in shares outstanding | — | 50,000 | 100,000 | — | ||||||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
42 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Changes in Net Assets (Continued)
iSHARES® TRUST
iShares Edge MSCI Multifactor Utilities ETF | ||||||||
Six months ended February 28, 2018 | Year ended August 31, 2017 | |||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||
OPERATIONS: | ||||||||
Net investment income | $ | 40,597 | $ | 84,641 | ||||
Net realized gain | 112,467 | 124,689 | ||||||
Net change in unrealized appreciation/depreciation | (381,197 | ) | 122,974 | |||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | (228,133 | ) | 332,304 | |||||
|
|
|
| |||||
DISTRIBUTIONS TO SHAREHOLDERS: |
| |||||||
From net investment income | (47,740 | ) | (80,719 | ) | ||||
|
|
|
| |||||
Total distributions to shareholders | (47,740 | ) | (80,719 | ) | ||||
|
|
|
| |||||
CAPITAL SHARE TRANSACTIONS: |
| |||||||
Proceeds from shares sold | — | 2,729,560 | ||||||
Cost of shares redeemed | (1,405,189 | ) | (1,364,780 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in net assets from capital share transactions | (1,405,189 | ) | 1,364,780 | |||||
|
|
|
| |||||
INCREASE (DECREASE) IN NET ASSETS | (1,681,062 | ) | 1,616,365 | |||||
NET ASSETS |
| |||||||
Beginning of period | 4,151,552 | 2,535,187 | ||||||
|
|
|
| |||||
End of period | $ | 2,470,490 | $ | 4,151,552 | ||||
|
|
|
| |||||
Undistributed net investment income included in net assets at end of period | $ | 11,347 | $ | 18,490 | ||||
|
|
|
| |||||
SHARES ISSUED AND REDEEMED |
| |||||||
Shares sold | — | 100,000 | ||||||
Shares redeemed | (50,000 | ) | (50,000 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (50,000 | ) | 50,000 | |||||
|
|
|
|
See notes to financial statements.
FINANCIAL STATEMENTS | 43 |
Table of Contents
iSHARES® TRUST
(For a share outstanding throughout each period)
iShares Edge MSCI Multifactor Consumer Discretionary ETF
Six months ended Feb. 28, 2018 (Unaudited) | Year ended Aug. 31, 2017 | Period from to | ||||||||||
Net asset value, beginning of period | $ | 27.56 | $ | 26.04 | $ | 25.26 | ||||||
|
|
|
|
|
| |||||||
Income from investment operations: | ||||||||||||
Net investment incomeb | 0.16 | 0.37 | 0.14 | |||||||||
Net realized and unrealized gainc | 4.74 | 1.54 | 0.71 | |||||||||
|
|
|
|
|
| |||||||
Total from investment operations | 4.90 | 1.91 | 0.85 | |||||||||
|
|
|
|
|
| |||||||
Less distributions from: | ||||||||||||
Net investment income | (0.18 | ) | (0.39 | ) | (0.07 | ) | ||||||
|
|
|
|
|
| |||||||
Total distributions | (0.18 | ) | (0.39 | ) | (0.07 | ) | ||||||
|
|
|
|
|
| |||||||
Net asset value, end of period | $ | 32.28 | $ | 27.56 | $ | 26.04 | ||||||
|
|
|
|
|
| |||||||
Total return | 17.83 | %d | 7.41 | % | 3.39 | %d | ||||||
|
|
|
|
|
| |||||||
Ratios/Supplemental data: | ||||||||||||
Net assets, end of period (000s) | $ | 3,228 | $ | 2,756 | $ | 2,604 | ||||||
Ratio of expenses to average net assetse | 0.35 | % | 0.35 | % | 0.35 | % | ||||||
Ratio of net investment income to average net assetse | 1.05 | % | 1.35 | % | 1.81 | % | ||||||
Portfolio turnover ratef | 25 | %d | 41 | % | 22 | %d |
a | Commencement of operations. |
b | Based on average shares outstanding throughout each period. |
c | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
d | Not annualized. |
e | Annualized for periods of less than one year. |
f | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
44 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Financial Highlights (Continued)
iSHARES® TRUST
(For a share outstanding throughout each period)
iShares Edge MSCI Multifactor Consumer Staples ETF
Six months ended Feb. 28, 2018 (Unaudited) | Year ended Aug. 31, 2017 | Period from to | ||||||||||
Net asset value, beginning of period | $ | 25.02 | $ | 25.57 | $ | 25.37 | ||||||
|
|
|
|
|
| |||||||
Income from investment operations: | ||||||||||||
Net investment incomeb | 0.27 | 0.56 | 0.17 | |||||||||
Net realized and unrealized gain (loss)c | 0.10 | (0.54 | ) | 0.10 | ||||||||
|
|
|
|
|
| |||||||
Total from investment operations | 0.37 | 0.02 | 0.27 | |||||||||
|
|
|
|
|
| |||||||
Less distributions from: | ||||||||||||
Net investment income | (0.29 | ) | (0.57 | ) | (0.07 | ) | ||||||
|
|
|
|
|
| |||||||
Total distributions | (0.29 | ) | (0.57 | ) | (0.07 | ) | ||||||
|
|
|
|
|
| |||||||
Net asset value, end of period | $ | 25.10 | $ | 25.02 | $ | 25.57 | ||||||
|
|
|
|
|
| |||||||
Total return | 1.47 | %d | 0.11 | % | 1.07 | %d | ||||||
|
|
|
|
|
| |||||||
Ratios/Supplemental data: | ||||||||||||
Net assets, end of period (000s) | $ | 2,510 | $ | 2,502 | $ | 2,557 | ||||||
Ratio of expenses to average net assetse | 0.35 | % | 0.35 | % | 0.35 | % | ||||||
Ratio of net investment income to average net assetse | 2.12 | % | 2.24 | % | 2.19 | % | ||||||
Portfolio turnover ratef | 16 | %d | 32 | % | 18 | %d |
a | Commencement of operations. |
b | Based on average shares outstanding throughout each period. |
c | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
d | Not annualized. |
e | Annualized for periods of less than one year. |
f | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 45 |
Table of Contents
Financial Highlights (Continued)
iSHARES® TRUST
(For a share outstanding throughout each period)
iShares Edge MSCI Multifactor Energy ETF |
Six months ended Feb. 28, 2018 (Unaudited) | Year ended Aug. 31, 2017 | Period from to | ||||||||||
Net asset value, beginning of period | $ | 23.85 | $ | 25.41 | $ | 25.03 | ||||||
|
|
|
|
|
| |||||||
Income from investment operations: | ||||||||||||
Net investment incomeb | 0.35 | 0.66 | 0.33 | |||||||||
Net realized and unrealized gain (loss)c | 2.03 | (1.56 | ) | 0.22 | ||||||||
|
|
|
|
|
| |||||||
Total from investment operations | 2.38 | (0.90 | ) | 0.55 | ||||||||
|
|
|
|
|
| |||||||
Less distributions from: | ||||||||||||
Net investment income | (0.34 | ) | (0.66 | ) | (0.17 | ) | ||||||
|
|
|
|
|
| |||||||
Total distributions | (0.34 | ) | (0.66 | ) | (0.17 | ) | ||||||
|
|
|
|
|
| |||||||
Net asset value, end of period | $ | 25.89 | $ | 23.85 | $ | 25.41 | ||||||
|
|
|
|
|
| |||||||
Total return | 9.93 | %d | (3.68 | )% | 2.19 | %d | ||||||
|
|
|
|
|
| |||||||
Ratios/Supplemental data: | ||||||||||||
Net assets, end of period (000s) | $ | 2,589 | $ | 2,385 | $ | 2,541 | ||||||
Ratio of expenses to average net assetse | 0.35 | % | 0.35 | % | 0.35 | % | ||||||
Ratio of net investment income to average net assetse | 2.60 | % | 2.56 | % | 4.20 | % | ||||||
Portfolio turnover ratef | 25 | %d | 39 | % | 29 | %d |
a | Commencement of operations. |
b | Based on average shares outstanding throughout each period. |
c | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
d | Not annualized. |
e | Annualized for periods of less than one year. |
f | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
46 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Financial Highlights (Continued)
iSHARES® TRUST
(For a share outstanding throughout each period)
iShares Edge MSCI Multifactor Financials ETF |
Six months ended Feb. 28, 2018 (Unaudited) | Year ended Aug. 31, 2017 | Period from to | ||||||||||
Net asset value, beginning of period | $ | 31.92 | $ | 26.74 | $ | 25.33 | ||||||
|
|
|
|
|
| |||||||
Income from investment operations: | ||||||||||||
Net investment incomeb | 0.27 | 0.44 | 0.14 | |||||||||
Net realized and unrealized gainc | 4.55 | 5.25 | 1.33 | |||||||||
|
|
|
|
|
| |||||||
Total from investment operations | 4.82 | 5.69 | 1.47 | |||||||||
|
|
|
|
|
| |||||||
Less distributions from: | ||||||||||||
Net investment income | (0.27 | ) | (0.43 | ) | (0.06 | ) | ||||||
Net realized gain | (0.81 | ) | (0.08 | ) | — | |||||||
|
|
|
|
|
| |||||||
Total distributions | (1.08 | ) | (0.51 | ) | (0.06 | ) | ||||||
|
|
|
|
|
| |||||||
Net asset value, end of period | $ | 35.66 | $ | 31.92 | $ | 26.74 | ||||||
|
|
|
|
|
| |||||||
Total return | 15.17 | %d | 21.43 | % | 5.83 | %d | ||||||
|
|
|
|
|
| |||||||
Ratios/Supplemental data: | ||||||||||||
Net assets, end of period (000s) | $ | 8,915 | $ | 3,192 | $ | 2,674 | ||||||
Ratio of expenses to average net assetse | 0.35 | % | 0.35 | % | 0.35 | % | ||||||
Ratio of net investment income to average net assetse | 1.55 | % | 1.46 | % | 1.77 | % | ||||||
Portfolio turnover ratef | 27 | %d | 42 | % | 28 | %d |
a | Commencement of operations. |
b | Based on average shares outstanding throughout each period. |
c | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
d | Not annualized. |
e | Annualized for periods of less than one year. |
f | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 47 |
Table of Contents
Financial Highlights (Continued)
iSHARES® TRUST
(For a share outstanding throughout each period)
iShares Edge MSCI Multifactor Healthcare ETF |
Six months ended Feb. 28, 2018 (Unaudited) | Year ended Aug. 31, 2017 | Period from to | ||||||||||
Net asset value, beginning of period | $ | 30.24 | $ | 26.45 | $ | 25.41 | ||||||
|
|
|
|
|
| |||||||
Income from investment operations: | ||||||||||||
Net investment incomeb | 0.12 | 0.27 | 0.09 | |||||||||
Net realized and unrealized gainc | 2.16 | 3.91 | 1.00 | |||||||||
|
|
|
|
|
| |||||||
Total from investment operations | 2.28 | 4.18 | 1.09 | |||||||||
|
|
|
|
|
| |||||||
Less distributions from: | ||||||||||||
Net investment income | (0.10 | ) | (0.24 | ) | (0.05 | ) | ||||||
Net realized gain | — | (0.15 | ) | — | ||||||||
|
|
|
|
|
| |||||||
Total distributions | (0.10 | ) | (0.39 | ) | (0.05 | ) | ||||||
|
|
|
|
|
| |||||||
Net asset value, end of period | $ | 32.42 | $ | 30.24 | $ | 26.45 | ||||||
|
|
|
|
|
| |||||||
Total return | 7.56 | %d | 16.05 | % | 4.29 | %d | ||||||
|
|
|
|
|
| |||||||
Ratios/Supplemental data: | ||||||||||||
Net assets, end of period (000s) | $ | 9,727 | $ | 9,073 | $ | 2,645 | ||||||
Ratio of expenses to average net assetse | 0.35 | % | 0.35 | % | 0.35 | % | ||||||
Ratio of net investment income to average net assetse | 0.78 | % | 0.99 | % | 1.14 | % | ||||||
Portfolio turnover ratef | 31 | %d | 31 | % | 20 | %d |
a | Commencement of operations. |
b | Based on average shares outstanding throughout each period. |
c | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
d | Not annualized. |
e | Annualized for periods of less than one year. |
f | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
48 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Financial Highlights (Continued)
iSHARES® TRUST
(For a share outstanding throughout each period)
iShares Edge MSCI Multifactor Industrials ETF |
Six months ended Feb. 28, 2018 (Unaudited) | Year ended Aug. 31, 2017 | Period from to | ||||||||||
Net asset value, beginning of period | $ | 29.81 | $ | 25.99 | $ | 25.34 | ||||||
|
|
|
|
|
| |||||||
Income from investment operations: | ||||||||||||
Net investment incomeb | 0.21 | 0.44 | 0.18 | |||||||||
Net realized and unrealized gainc | 3.29 | 3.81 | 0.58 | |||||||||
|
|
|
|
|
| |||||||
Total from investment operations | 3.50 | 4.25 | 0.76 | |||||||||
|
|
|
|
|
| |||||||
Less distributions from: | ||||||||||||
Net investment income | (0.21 | ) | (0.43 | ) | (0.11 | ) | ||||||
Net realized gain | (1.19 | ) | — | — | ||||||||
|
|
|
|
|
| |||||||
Total distributions | (1.40 | ) | (0.43 | ) | (0.11 | ) | ||||||
|
|
|
|
|
| |||||||
Net asset value, end of period | $ | 31.91 | $ | 29.81 | $ | 25.99 | ||||||
|
|
|
|
|
| |||||||
Total return | 11.79 | %d | 16.46 | % | 3.01 | %d | ||||||
|
|
|
|
|
| |||||||
Ratios/Supplemental data: | ||||||||||||
Net assets, end of period (000s) | $ | 3,191 | $ | 2,981 | $ | 2,599 | ||||||
Ratio of expenses to average net assetse | 0.35 | % | 0.35 | % | 0.35 | % | ||||||
Ratio of net investment income to average net assetse | 1.34 | % | 1.54 | % | 2.31 | % | ||||||
Portfolio turnover ratef | 27 | %d | 41 | % | 26 | %d |
a | Commencement of operations. |
b | Based on average shares outstanding throughout each period. |
c | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
d | Not annualized. |
e | Annualized for periods of less than one year. |
f | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 49 |
Table of Contents
Financial Highlights (Continued)
iSHARES® TRUST
(For a share outstanding throughout each period)
iShares Edge MSCI Multifactor Materials ETF |
Six months ended Feb. 28, 2018 (Unaudited) | Year ended Aug. 31, 2017 | Period from to | ||||||||||
Net asset value, beginning of period | $ | 30.95 | $ | 26.69 | $ | 25.26 | ||||||
|
|
|
|
|
| |||||||
Income from investment operations: | ||||||||||||
Net investment incomeb | 0.27 | 0.54 | 0.18 | |||||||||
Net realized and unrealized gainc | 2.96 | 4.26 | 1.33 | |||||||||
|
|
|
|
|
| |||||||
Total from investment operations | 3.23 | 4.80 | 1.51 | |||||||||
|
|
|
|
|
| |||||||
Less distributions from: | ||||||||||||
Net investment income | (0.27 | ) | (0.54 | ) | (0.08 | ) | ||||||
Net realized gain | (0.17 | ) | — | — | ||||||||
|
|
|
|
|
| |||||||
Total distributions | (0.44 | ) | (0.54 | ) | (0.08 | ) | ||||||
|
|
|
|
|
| |||||||
Net asset value, end of period | $ | 33.74 | $ | 30.95 | $ | 26.69 | ||||||
|
|
|
|
|
| |||||||
Total return | 10.45 | %d | 18.22 | % | 6.00 | %d | ||||||
|
|
|
|
|
| |||||||
Ratios/Supplemental data: | ||||||||||||
Net assets, end of period (000s) | $ | 5,061 | $ | 4,643 | $ | 2,669 | ||||||
Ratio of expenses to average net assetse | 0.35 | % | 0.35 | % | 0.35 | % | ||||||
Ratio of net investment income to average net assetse | 1.60 | % | 1.88 | % | 2.28 | % | ||||||
Portfolio turnover ratef | 11 | %d | 21 | % | 26 | %d |
a | Commencement of operations. |
b | Based on average shares outstanding throughout each period. |
c | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
d | Not annualized. |
e | Annualized for periods of less than one year. |
f | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
50 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Financial Highlights (Continued)
iSHARES® TRUST
(For a share outstanding throughout each period)
iShares Edge MSCI Multifactor Technology ETF |
Six months ended Feb. 28, 2018 (Unaudited) | Year ended Aug. 31, 2017 | Period from to | ||||||||||
Net asset value, beginning of period | $ | 36.93 | $ | 28.91 | $ | 25.32 | ||||||
|
|
|
|
|
| |||||||
Income from investment operations: | ||||||||||||
Net investment incomeb | 0.19 | 0.34 | 0.11 | |||||||||
Net realized and unrealized gainc | 5.92 | 8.41 | 3.52 | |||||||||
|
|
|
|
|
| |||||||
Total from investment operations | 6.11 | 8.75 | 3.63 | |||||||||
|
|
|
|
|
| |||||||
Less distributions from: | ||||||||||||
Net investment income | (0.15 | ) | (0.34 | ) | (0.04 | ) | ||||||
Net realized gain | (2.17 | ) | (0.39 | ) | — | |||||||
|
|
|
|
|
| |||||||
Total distributions | (2.32 | ) | (0.73 | ) | (0.04 | ) | ||||||
|
|
|
|
|
| |||||||
Net asset value, end of period | $ | 40.72 | $ | 36.93 | $ | 28.91 | ||||||
|
|
|
|
|
| |||||||
Total return | 16.84 | %d | 30.76 | % | 14.34 | %d | ||||||
|
|
|
|
|
| |||||||
Ratios/Supplemental data: | ||||||||||||
Net assets, end of period (000s) | $ | 8,143 | $ | 3,693 | $ | 2,891 | ||||||
Ratio of expenses to average net assetse | 0.35 | % | 0.35 | % | 0.35 | % | ||||||
Ratio of net investment income to average net assetse | 0.94 | % | 1.03 | % | 1.27 | % | ||||||
Portfolio turnover ratef | 18 | %d | 39 | % | 20 | %d |
a | Commencement of operations. |
b | Based on average shares outstanding throughout each period. |
c | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
d | Not annualized. |
e | Annualized for periods of less than one year. |
f | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 51 |
Table of Contents
Financial Highlights (Continued)
iSHARES® TRUST
(For a share outstanding throughout each period)
iShares Edge MSCI Multifactor Utilities ETF |
Six months ended Feb. 28, 2018 (Unaudited) | Year ended Aug. 31, 2017 | Period from to | ||||||||||
Net asset value, beginning of period | $ | 27.68 | $ | 25.35 | $ | 25.13 | ||||||
|
|
|
|
|
| |||||||
Income from investment operations: | ||||||||||||
Net investment incomeb | 0.39 | 0.82 | 0.28 | |||||||||
Net realized and unrealized gain (loss)c | (2.89 | ) | 2.32 | 0.07 | ||||||||
|
|
|
|
|
| |||||||
Total from investment operations | (2.50 | ) | 3.14 | 0.35 | ||||||||
|
|
|
|
|
| |||||||
Less distributions from: | ||||||||||||
Net investment income | (0.48 | ) | (0.81 | ) | (0.13 | ) | ||||||
|
|
|
|
|
| |||||||
Total distributions | (0.48 | ) | (0.81 | ) | (0.13 | ) | ||||||
|
|
|
|
|
| |||||||
Net asset value, end of period | $ | 24.70 | $ | 27.68 | $ | 25.35 | ||||||
|
|
|
|
|
| |||||||
Total return | (9.16 | )%d | 12.60 | % | 1.39 | %d | ||||||
|
|
|
|
|
| |||||||
Ratios/Supplemental data: | ||||||||||||
Net assets, end of period (000s) | $ | 2,470 | $ | 4,152 | $ | 2,535 | ||||||
Ratio of expenses to average net assetse | 0.35 | % | 0.35 | % | 0.35 | % | ||||||
Ratio of net investment income to average net assetse | 2.95 | % | 3.18 | % | 3.45 | % | ||||||
Portfolio turnover ratef | 14 | %d | 20 | % | 21 | %d |
a | Commencement of operations. |
b | Based on average shares outstanding throughout each period. |
c | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
d | Not annualized. |
e | Annualized for periods of less than one year. |
f | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
52 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited)
iSHARES® TRUST
iShares Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust was established as a Delaware statutory trust pursuant to an Agreement and Declaration of Trust dated December 16, 1999.
These financial statements relate only to the following funds (each, a “Fund,” and collectively, the “Funds”):
iShares ETF | Diversification Classification | |||
Edge MSCI Multifactor Consumer Discretionary | Non-diversified | |||
Edge MSCI Multifactor Consumer Staples | Non-diversified | |||
Edge MSCI Multifactor Energy | Non-diversified | |||
Edge MSCI Multifactor Financials | Non-diversified |
iShares ETF | Diversification Classification | |||
Edge MSCI Multifactor Healthcare | Non-diversified | |||
Edge MSCI Multifactor Industrials | Non-diversified | |||
Edge MSCI Multifactor Materials | Non-diversified | |||
Edge MSCI Multifactor Technology | Non-diversified | |||
Edge MSCI Multifactor Utilities | Non-diversified |
The investment objective of each Fund is to seek investment results that correspond generally to the price and yield performance, before fees and expenses, of its underlying index. The investment adviser uses a “passive” or index approach to try to achieve each Fund’s investment objective.
Pursuant to the Trust’s organizational documents, the Funds’ officers and trustees are indemnified against certain liabilities that may arise out of the performance of their duties to the Funds. Additionally, in the normal course of business, the Funds enter into contracts with service providers that contain general indemnification clauses. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred.
1. | SIGNIFICANT ACCOUNTING POLICIES |
The following significant accounting policies are consistently followed by each Fund in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies.
SECURITY VALUATION
Each Fund’s investments are valued at fair value each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date should the reporting period end on a day that the Fund’s listing exchange is not open. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) provides oversight of the valuation of investments for the Funds. The investments of each Fund are valued pursuant to policies and procedures developed by the Global Valuation Committee and approved by the Board of Trustees of the Trust (the “Board”).
• | Equity investments traded on a recognized securities exchange are valued at that day’s last reported trade price or the official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price. |
• | Open-end U.S. mutual funds (including money market funds) are valued at that day’s published net asset value (“NAV”). |
NOTESTO FINANCIAL STATEMENTS | 53 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
In the event that application of these methods of valuation results in a price for an investment which is deemed not to be representative of the fair value of such investment or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board. The fair valuation approaches that may be utilized by the Global Valuation Committee to determine fair value include market approach, income approach and the cost approach. The valuation techniques used under these approaches take into consideration inputs that include but are not limited to (i) attributes specific to the investment; (ii) the principal market for the investment; (iii) the customary participants in the principal market for the investment; (iv) data assumptions by market participants for the investment, if reasonably available; (v) quoted prices for similar investments in active markets; and (vi) other inputs, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates. Valuations based on such inputs are reported to the Board on a quarterly basis.
The Global Valuation Committee employs various methods for calibrating valuation approaches for investments where an active market does not exist, including regular due diligence of the Trust’s pricing vendors, a regular review of key inputs and assumptions, transactional back-testing or disposition analysis to compare unrealized gains and losses to realized gains and losses, reviews of missing or stale prices, reviews of large movements in market values, and reviews of market related activity.
Fair value pricing could result in a difference between the prices used to calculate a Fund’s NAV and the prices used by the Fund’s underlying index, which in turn could result in a difference between the Fund’s performance and the performance of the Fund’s underlying index.
Various inputs are used in determining the fair value of financial instruments. Inputs may be based on independent market data (“observable inputs”) or they may be internally developed (“unobservable inputs”). These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:
• | Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities; |
• | Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability (such as exchange rates, financing terms, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and |
• | Level 3 — Unobservable inputs for the asset or liability based on the best information available in the circumstances, to the extent observable inputs are not available, including the Global Valuation Committee’s assumptions used in determining the fair value of investments. |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgement exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value hierarchy for each Fund’s investments is included in its schedule of investments.
Changes in valuation techniques may result in transfers in or out of an assigned level within the fair value hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of values determined for financial instruments are based on the pricing transparency of the financial instruments and are not necessarily an indication of the risks associated with investing in those securities.
54 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
SECURITY TRANSACTIONS AND INCOME RECOGNITION
Security transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recognized on the ex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities as of February 28, 2018 are reflected in tax reclaims receivable. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be re-designated as a return of capital or capital gain. Non-cash dividends, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Distributions received by the Funds may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. Interest income is accrued daily.
DISTRIBUTIONS TO SHAREHOLDERS
Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds.
LOANS OF PORTFOLIO SECURITIES
Each Fund may lend its investment securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by an approved bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Funds. Any additional required collateral is delivered to the Funds and any excess collateral is returned by the Funds on the next business day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.
Cash received as collateral for securities on loan may be reinvested in certain short-term instruments either directly on behalf of a fund or through one or more joint accounts or money market funds, including those managed by BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, or its affiliates. As of February 28, 2018, any securities on loan were collateralized by cash and/or U.S. government obligations. Cash collateral received was invested in money market funds managed by BFA and is disclosed in the schedules of investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan for each Fund are also disclosed in its schedule of investments. The total value of any securities on loan as of February 28, 2018 and the total value of the related cash collateral are disclosed in the statements of assets and liabilities. Income earned by the Funds from securities lending is disclosed in the statements of operations.
The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Funds benefit from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of securities loaned if the collateral received does not cover the value of the securities loaned in the event of borrower default. Each Fund could incur a loss if the value of an investment purchased with cash collateral falls below the value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received.
NOTESTO FINANCIAL STATEMENTS | 55 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (“MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, a Fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. The value of the collateral is typically greater than that of the market value of the securities loaned, leaving the lender with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, the borrower can resell or re-pledge the loaned securities, and a Fund can reinvest cash collateral, or, upon an event of default, resell or re-pledge the collateral.
The following table is a summary of securities lending agreements which are subject to offset under an MSLA as of February 28, 2018:
iShares ETF and Counterparty | Market Value of Securities on Loan | Cash Collateral Received a | Net Amount | |||||||||
Edge MSCI Multifactor Consumer Discretionary | ||||||||||||
Jefferies LLC | $ | 39,919 | $ | 39,919 | $ | — | ||||||
|
|
|
|
|
| |||||||
Edge MSCI Multifactor Energy | ||||||||||||
HSBC Bank PLC | $ | 4,675 | $ | 4,675 | $ | — | ||||||
|
|
|
|
|
| |||||||
a | Collateral received in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Fund’s statement of assets and liabilities. |
2. | INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES |
Pursuant to an Investment Advisory Agreement with the Trust, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent trustees).
For its investment advisory services to each Fund, BFA is entitled to an annual investment advisory fee of 0.35%, accrued daily and paid monthly by the Funds, based on the average daily net assets of each Fund.
The U.S. Securities and Exchange Commission has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan in a money market fund managed by BFA, however, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04% (the “collateral investment fees”). Securities lending income is equal to the total of income earned from the reinvestment of cash collateral (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. The Funds retain a portion of securities lending income and remit the remaining portion to BTC as compensation for its services as securities lending agent.
Pursuant to a securities lending agreement, each Fund retains 71.5% of securities lending income and the amount retained can never be less than 65% of the total of securities lending income plus the collateral investment fees. In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across
56 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in a given calendar year exceeds the aggregate securities lending income generated across the iShares ETF Complex in the calendar year 2013, each Fund, pursuant to a securities lending agreement, will retain for the remainder of that calendar year 75% of securities lending income and the amount retained can never be less than 65% of the total of securities lending income plus the collateral investment fees.
For the six months ended February 28, 2018, the total of securities lending agent services and collateral investment fees paid were as follows:
iShares ETF | Fees Paid to BTC | |||
Edge MSCI Multifactor Consumer Discretionary | $ | 3 | ||
Edge MSCI Multifactor Energy | 23 | |||
Edge MSCI Multifactor Financials | 9 | |||
Edge MSCI Multifactor Healthcare | 32 | |||
Edge MSCI Multifactor Industrials | 2 | |||
Edge MSCI Multifactor Technology | 86 |
BlackRock Investments, LLC, an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.
Cross trading is the buying or selling of portfolio securities between funds to which BFA (or an affiliate) serves as investment adviser. At its regularly scheduled quarterly meetings, the Board reviews such transactions as of the most recent calendar quarter for compliance with the requirements and restrictions set forth by Rule 17a-7.
For the six months ended February 28, 2018, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:
iShares ETF | Purchases | Sales | ||||||
Edge MSCI Multifactor Consumer Discretionary | $ | 165,181 | $ | 176,146 | ||||
Edge MSCI Multifactor Financials | 435,655 | 530,055 | ||||||
Edge MSCI Multifactor Healthcare | 2,249,870 | 1,361,102 | ||||||
Edge MSCI Multifactor Industrials | 173,721 | 313,643 | ||||||
Edge MSCI Multifactor Technology | 217,249 | 385,686 |
Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is included in “Dividends – affiliated” in the statements of operations.
It is possible that, from time to time, BlackRock and/or funds managed by BFA or an affiliate (collectively, “Affiliates”) may purchase and hold shares of a Fund. Affiliates reserve the right, subject to compliance with applicable law, to sell into the market or redeem in Creation Units through an authorized participant at any time some or all of the shares of a Fund acquired for their own accounts. A large sale or redemption of shares of a, the] Fund by Affiliates could significantly reduce the asset size of the Fund, which might have an adverse effect on the Fund. As of February 28, 2018, the number of affiliated accounts that
NOTESTO FINANCIAL STATEMENTS | 57 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
individually represent more than 10% ownership of a Fund’s total shares outstanding and the aggregate percentage of net assets represented by such holdings were as follows:
iShares ETF | Number of Affiliated | Aggregate Ownership | ||||||
Edge MSCI Multifactor Consumer Discretionary | 1 | 50 | % | |||||
Edge MSCI Multifactor Consumer Staples | 1 | 50 | % | |||||
Edge MSCI Multifactor Energy | 1 | 43 | % | |||||
Edge MSCI Multifactor Materials | 1 | 33 | % | |||||
Edge MSCI Multifactor Utilities | 1 | 80 | % |
The PNC Financial Services Group, Inc. is the largest stockholder of BlackRock and is considered to be an affiliate of the Funds for 1940 Act purposes.
Certain trustees and officers of the Trust are also officers of BTC and/or BFA.
3. | INVESTMENT PORTFOLIO TRANSACTIONS |
Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the six months ended February 28, 2018 were as follows:
iShares ETF | Purchases | Sales | ||||||
Edge MSCI Multifactor Consumer Discretionary | $ | 762,567 | $ | 768,356 | ||||
Edge MSCI Multifactor Consumer Staples | 414,243 | 413,548 | ||||||
Edge MSCI Multifactor Energy | 649,512 | 650,306 | ||||||
Edge MSCI Multifactor Financials | 1,557,438 | 1,585,616 | ||||||
Edge MSCI Multifactor Healthcare | 4,460,181 | 4,498,256 | ||||||
Edge MSCI Multifactor Industrials | 927,972 | 1,018,696 | ||||||
Edge MSCI Multifactor Materials | 592,235 | 627,763 | ||||||
Edge MSCI Multifactor Technology | 1,103,475 | 1,424,490 | ||||||
Edge MSCI Multifactor Utilities | 415,458 | 455,321 |
In-kind transactions (see Note 4) for the six months ended February 28, 2018 were as follows:
iShares ETF | In-kind Purchases | In-kind Sales | ||||||
Edge MSCI Multifactor Financials | $ | 6,910,535 | $ | 1,766,309 | ||||
Edge MSCI Multifactor Healthcare | 9,159,919 | 9,477,555 | ||||||
Edge MSCI Multifactor Industrials | 1,558,691 | 1,624,448 | ||||||
Edge MSCI Multifactor Materials | 1,676,660 | 1,688,627 | ||||||
Edge MSCI Multifactor Technology | 5,962,879 | 2,044,624 | ||||||
Edge MSCI Multifactor Utilities | — | 1,368,256 |
58 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
4. | CAPITAL SHARE TRANSACTIONS |
Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable. Transactions in capital shares for each Fund are disclosed in detail in the statements of changes in net assets.
The consideration for the purchase of Creation Units of a fund in the Trust generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Trust may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to State Street Bank and Trust Company, the Trust’s administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in “Proceeds from shares sold” in the statements of changes in net assets.
5. | PRINCIPAL RISKS |
In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Each Fund’s prospectus provides details of the risks to which the Fund is subject.
BFA uses a “passive” or index approach to try to achieve each Fund’s investment objective following the securities included in its underlying index during upturns as well as downturns. BFA does not take steps to reduce market exposure or to lessen the effects of a declining market. Divergence from the underlying index and the composition of the portfolio is monitored by BFA.
MARKET RISK
Market risk arises mainly from uncertainty about future values of financial instruments influenced by price, currency and interest rate movements. It represents the potential loss a fund may suffer through holding market positions in the face of market movements. A fund is exposed to market risk by its investment in equity, fixed income and/or financial derivative instruments or by its investment in underlying funds. The fair value of securities held by a fund may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. The extent of a fund’s exposure to market risk is the market value of the investments held as shown in the fund’s schedule of investments.
A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its schedule of investments.
When a fund concentrates its investments in securities within a single or limited number of market sectors, it assumes the risk that economic, political and social conditions affecting those market sectors may have a significant impact on its investment performance.
NOTESTO FINANCIAL STATEMENTS | 59 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
CREDIT RISK
Credit risk is the risk that an issuer or guarantor of debt instruments or the counterparty to a financial transaction, including derivatives contracts, repurchase agreements or loans of portfolio securities, is unable or unwilling to make timely interest and/or principal payments or to otherwise honor its obligations. BFA and its affiliates manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose a fund to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of a fund’s exposure to credit and counterparty risks with respect to those financial assets is approximated by their value recorded in its statement of assets and liabilities.
6. | INCOME TAX INFORMATION |
Each Fund is treated as an entity separate from the Trust’s other funds for federal income tax purposes. It is the policy of each Fund to qualify as a regulated investment company by complying with the provisions applicable to regulated investment companies, as defined under Subchapter M of the Internal Revenue Code of 1986, as amended, and to annually distribute substantially all of its ordinary income and any net capital gains (taking into account any capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income and excise taxes. Accordingly, no provision for federal income taxes is required.
For purposes of U.S. GAAP, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or NAV per share.
The tax character of current year distributions will be determined at the end of the current fiscal year.
As of August 31, 2017, the Funds’ fiscal year end, the following funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:
iShares ETF | Non- Expiring | |||
Edge MSCI Multifactor Consumer Discretionary | $ | 20,147 | ||
Edge MSCI Multifactor Consumer Staples | 11,988 | |||
Edge MSCI Multifactor Energy | 1,767 |
60 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
As of February 28, 2018, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives) for U.S. federal income tax purposes were as follows:
iShares ETF | Tax Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||
Edge MSCI Multifactor Consumer Discretionary | $ | 2,687,690 | $ | 604,608 | $ | (25,388 | ) | $ | 579,220 | |||||||
Edge MSCI Multifactor Consumer Staples | 2,558,844 | 102,461 | (153,871 | ) | (51,410 | ) | ||||||||||
Edge MSCI Multifactor Energy | 2,547,887 | 211,801 | (181,541 | ) | 30,260 | |||||||||||
Edge MSCI Multifactor Financials | 8,252,359 | 745,692 | (88,918 | ) | 656,774 | |||||||||||
Edge MSCI Multifactor Healthcare | 9,231,577 | 664,620 | (181,569 | ) | 483,051 | |||||||||||
Edge MSCI Multifactor Industrials | 2,868,265 | 379,800 | (64,264 | ) | 315,536 | |||||||||||
Edge MSCI Multifactor Materials | 4,686,053 | 435,699 | (69,048 | ) | 366,651 | |||||||||||
Edge MSCI Multifactor Technology | 7,070,579 | 1,113,350 | (49,252 | ) | 1,064,098 | |||||||||||
Edge MSCI Multifactor Utilities | 2,717,238 | 10,748 | (267,141 | ) | (256,393 | ) |
Management has analyzed tax laws and regulations and their application to the Funds as of February 28, 2018, inclusive of the open tax return years, and does not believe there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.
7. | LEGAL PROCEEDINGS |
On June 16, 2016, investors (the “Plaintiffs”) in certain iShares funds (iShares Core S&P Small-Cap ETF, iShares Russell 1000 Growth ETF, iShares Core S&P 500 ETF, iShares Russell Mid-Cap Growth ETF, iShares Russell Mid-Cap ETF, iShares Russell Mid-Cap Value ETF, iShares Select Dividend ETF, iShares Morningstar Mid-Cap ETF, iShares Morningstar Large-Cap ETF, iShares U.S. Aerospace & Defense ETF and iShares U.S. Preferred Stock ETF) filed a putative class action lawsuit against iShares Trust, BlackRock, Inc. and certain of its advisory affiliates, and certain directors/trustees and officers of the Funds (collectively, “Defendants”) in California State Court. The lawsuit alleges the Defendants violated federal securities laws by failing to adequately disclose in the prospectuses issued by the funds noted above the risks of using stop-loss orders in the event of a ‘flash crash’, such as the one that occurred on May 6, 2010. On September 18, 2017, the court issued a Statement of Decision holding that the Plaintiffs lack standing to assert their claims. On October 11, 2017, the court entered final judgment dismissing all of the Plaintiffs’ claims with prejudice. Plaintiffs have appealed the court’s decision.
8. | SUBSEQUENT EVENTS |
Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or disclosure in the financial statements.
NOTESTO FINANCIAL STATEMENTS | 61 |
Table of Contents
Supplemental Information (Unaudited)
iSHARES® TRUST
Section 19(a) Notices
The amounts and sources of distributions reported are estimates and are provided pursuant to regulatory requirements and are not being provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon each Fund’s investment experience during the year and may be subject to changes based on the tax regulations. Shareholders will receive a Form 1099-DIV each calendar year that will inform them how to report these distributions for federal income tax purposes.
Total Cumulative Distributions for the Fiscal Year-to-Date | % Breakdown of the Total Cumulative Distributions for the Fiscal Year-to-Date | |||||||||||||||||||||||||||||||
iShares ETF | Net Investment Income | Net Realized Capital Gains | Return of Capital | Total Per Share | Net Investment Income | Net Realized Capital Gains | Return of Capital | Total Per Share | ||||||||||||||||||||||||
Edge MSCI Multifactor Consumer Discretionary | $ | 0.163444 | $ | — | $ | 0.013833 | $ | 0.177277 | 92 | % | — | % | 8 | % | 100 | % | ||||||||||||||||
Edge MSCI Multifactor Consumer Staples | 0.265577 | — | 0.027352 | 0.292929 | 91 | — | 9 | 100 | ||||||||||||||||||||||||
Edge MSCI | 0.240054 | 0.810120 | 0.031267 | 1.081441 | 22 | 75 | 3 | 100 | ||||||||||||||||||||||||
Edge MSCI | 0.089913 | — | 0.012756 | 0.102669 | 88 | — | 12 | 100 | ||||||||||||||||||||||||
Edge MSCI | 0.210956 | 1.185320 | 0.002704 | 1.398980 | 15 | 85 | 0 | a | 100 | |||||||||||||||||||||||
Edge MSCI | 0.242592 | 0.170140 | 0.025858 | 0.438590 | 55 | 39 | 6 | 100 | ||||||||||||||||||||||||
Edge MSCI | 0.154737 | 2.171841 | — | 2.326578 | 7 | 93 | — | 100 | ||||||||||||||||||||||||
Edge MSCI | 0.459971 | — | 0.017429 | 0.477400 | 96 | — | 4 | 100 |
a | Rounds to less than 1%. |
62 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Electronic Delivery
Shareholders can sign up for email notifications announcing that the shareholder report or prospectus has been posted on the iShares website at www.iShares.com. Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail.
To enroll in electronic delivery:
• | Go to www.icsdelivery.com. |
• | If your brokerage firm is not listed, electronic delivery may not be available. Please contact your broker-dealer or financial advisor. |
Householding
Householding is an option available to certain fund investors. Householding is a method of delivery, based on the preference of the individual investor, in which a single copy of certain shareholder documents can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.
Availability of Quarterly Schedule of Investments
The iShares Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The iShares Funds’ Forms N-Q are available on the SEC’s website and may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The iShares Funds also disclose their complete schedule of portfolio holdings on a daily basis on the iShares website.
Availability of Proxy Voting Policies and Proxy Voting Records
A description of the policies and procedures that the iShares Funds use to determine how to vote proxies relating to portfolio securities and information about how the iShares Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request (1) by calling toll-free 1-800-474-2737; (2) on the iShares website at www.iShares.com; and (3) on the SEC website at www.sec.gov.
GENERAL INFORMATION | 63 |
Table of Contents
Notes:
64 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes:
NOTES | 65 |
Table of Contents
Notes:
66 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
For more information visit www.iShares.com or call 1-800-iShares (1-800-474-2737)
This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus.
Investing involves risk, including possible loss of principal.
The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).
The iShares Funds are not sponsored, endorsed, issued, sold or promoted by MSCI Inc., nor does this company make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the company listed above.
©2018 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.
iS-SAR-818-0218
Table of Contents
FEBRUARY 28, 2018
2018 SEMI-ANNUAL REPORT (UNAUDITED) |
iShares Trust
Ø | iShares MSCI EAFE ESG Optimized ETF | ESGD | NASDAQ |
Ø | iShares MSCI Global Impact ETF | MPCT | NASDAQ |
Ø | iShares MSCI USA ESG Optimized ETF | ESGU | NASDAQ |
Table of Contents
5 | ||||
8 | ||||
8 | ||||
9 | ||||
9 | ||||
16 | ||||
19 | ||||
25 | ||||
29 | ||||
32 | ||||
42 | ||||
43 |
Table of Contents
iSHARES® MSCI EAFE ESG OPTIMIZED ETF
Performance as of February 28, 2018
The iShares MSCI EAFE ESG Optimized 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 that have positive environmental, social and governance characteristics, as represented by the MSCI EAFE ESG Focus Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month reporting period ended February 28, 2018, the total return for the Fund was 6.79%, net of fees, while the total return for the Index was 6.88%.
Special note: Effective on or around May 23, 2018, the Fund will track a new underlying index, the MSCI EAFE Extended ESG Focus Index and will cease to track the MSCI EAFE ESG Focus Index.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||||||||
1 Year | 19.99% | 19.56% | 20.21% | 19.99% | 19.56% | 20.21% | ||||||||||||||||||||||
Since Inception | 20.88% | 20.68% | 21.18% | 37.36% | 36.98% | 37.89% |
The inception date of the Fund was 6/28/16. The first day of secondary market trading was 6/30/16.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 8 for more information.
Shareholder Expenses | ||||||||||||||||||||||||||
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Annualized Expense Ratio | ||||||||||||||||||||
$ | 1,000.00 | $ | 1,067.90 | $ | 1.03 | $ | 1,000.00 | $ | 1,023.80 | $ | 1.00 | 0.20% |
a | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 8 for more information. |
ALLOCATION BY SECTOR
As of 2/28/18
Sector | Percentage of Total Investments* |
Financials | 21.81 | % | ||
Industrials | 14.60 | |||
Consumer Discretionary | 12.13 | |||
Consumer Staples | 9.76 | |||
Health Care | 9.40 | |||
Materials | 9.04 | |||
Information Technology | 5.88 | |||
Energy | 5.77 | |||
Telecommunication Services | 4.54 | |||
Real Estate | 3.68 | |||
Utilities | 3.39 | |||
|
| |||
TOTAL | 100.00 | % | ||
|
|
TEN LARGEST COUNTRIES
As of 2/28/18
Country | Percentage of Total Investments* |
Japan | 24.10 | % | ||
United Kingdom | 16.71 | |||
France | 10.85 | |||
Germany | 9.56 | |||
Switzerland | 7.92 | |||
Australia | 7.01 | |||
Hong Kong | 3.50 | |||
Spain | 3.37 | |||
Netherlands | 3.32 | |||
Sweden | 2.92 | |||
|
| |||
TOTAL | 89.26 | % | ||
|
|
* | Excludes money market funds. |
FUND PERFORMANCE OVERVIEWS | 5 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI GLOBAL IMPACT ETF
Performance as of February 28, 2018
The iShares MSCI Global Impact ETF (the “Fund”) seeks to track the investment results of an index composed of positive impact companies that derive a majority of their revenue from products and services that address at least one of the world’s major social and environmental challenges as identified by the United Nations Sustainable Development Goals, as represented by the MSCI ACWI Sustainable Impact 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. For the six-month reporting period ended February 28, 2018, the total return for the Fund was 6.99%, net of fees, while the total return for the Index was 7.16%.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||||||||
1 Year | 21.77% | 21.56% | 22.25% | 21.77% | 21.56% | 22.25% | ||||||||||||||||||||||
Since Inception | 13.33% | 13.37% | 13.76% | 26.25% | 26.34% | 27.12% |
The inception date of the Fund was 4/20/16. The first day of secondary market trading was 4/22/16.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 8 for more information.
Shareholder Expenses | ||||||||||||||||||||||||||
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Annualized Expense Ratio | ||||||||||||||||||||
$ | 1,000.00 | $ | 1,069.90 | $ | 2.51 | $ | 1,000.00 | $ | 1,022.40 | $ | 2.46 | 0.49% |
a | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 8 for more information. |
ALLOCATION BY SECTOR
As of 2/28/18
Sector | Percentage of Total Investments* |
Industrials | 20.10 | % | ||
Consumer Staples | 19.99 | |||
Health Care | 19.93 | |||
Information Technology | 10.67 | |||
Utilities | 9.39 | |||
Materials | 7.82 | |||
Consumer Discretionary | 7.24 | |||
Real Estate | 4.83 | |||
Energy | 0.03 | |||
|
| |||
TOTAL | 100.00 | % | ||
|
|
TEN LARGEST COUNTRIES
As of 2/28/18
Country | Percentage of Total Investments* |
United States | 30.28 | % | ||
France | 14.88 | |||
United Kingdom | 11.79 | |||
Japan | 10.96 | |||
Denmark | 6.29 | |||
China | 5.54 | |||
Taiwan | 4.13 | |||
Belgium | 3.97 | |||
Germany | 2.16 | |||
Hong Kong | 2.06 | |||
|
| |||
TOTAL | 92.06 | % | ||
|
|
* | Excludes money market funds. |
6 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI USA ESG OPTIMIZED ETF
Performance as of February 28, 2018
The iShares MSCI USA ESG Optimized ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. companies that have positive environmental, social and governance characteristics, as represented by the MSCI USA ESG Focus Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month reporting period ended February 28, 2018, the total return for the Fund was 10.36%, net of fees, while the total return for the Index was 10.46%.
Special note: Effective on or around May 23, 2018, the Fund will track a new underlying index, the MSCI USA Extended ESG Focus Index and will cease to track the MSCI USA ESG Focus Index.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||||||||||||||||||||
1 Year | 16.69% | 16.71% | 16.97% | 16.69% | 16.71% | 16.97% | ||||||||||||||||||||||
Since Inception | 20.68% | 20.71% | 20.99% | 26.41% | 26.45% | 26.83% |
The inception date of the Fund was 12/1/16. The first day of secondary market trading was 12/2/16.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 8 for more information.
Shareholder Expenses | ||||||||||||||||||||||||||
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Beginning Account Value (9/1/17) | Ending Account Value (2/28/18) | Expenses Paid During Period a | Annualized Expense Ratio | ||||||||||||||||||||
$ | 1,000.00 | $ | 1,103.60 | $ | 0.78 | $ | 1,000.00 | $ | 1,024.10 | $ | 0.75 | 0.15% |
a | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 8 for more information. |
ALLOCATION BY SECTOR
As of 2/28/18
Sector | Percentage of Total Investments* |
Information Technology | 26.54 | % | ||
Financials | 14.28 | |||
Health Care | 13.27 | |||
Consumer Discretionary | 12.52 | |||
Industrials | 11.09 | |||
Consumer Staples | 6.95 | |||
Energy | 4.79 | |||
Real Estate | 3.00 | |||
Utilities | 2.99 | |||
Materials | 2.84 | |||
Telecommunication Services | 1.73 | |||
|
| |||
TOTAL | 100.00 | % | ||
|
|
TEN LARGEST FUND HOLDINGS
As of 2/28/18
Security | Percentage of Total Investments* |
Apple Inc. | 3.85 | % | ||
Microsoft Corp. | 3.35 | |||
Amazon.com Inc. | 2.54 | |||
Facebook Inc. Class A | 1.88 | |||
Alphabet Inc. Class C | 1.87 | |||
JPMorgan Chase & Co. | 1.76 | |||
Johnson & Johnson | 1.49 | |||
Exxon Mobil Corp. | 1.45 | |||
Bank of America Corp. | 1.36 | |||
3M Co. | 1.30 | |||
|
| |||
TOTAL | 20.85 | % | ||
|
|
* | Excludes money market funds. |
FUND PERFORMANCE OVERVIEWS | 7 |
Table of Contents
Past performance is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at www.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. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer 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. Certain funds may have a NAV which is determined prior to the opening of regular trading on its listed exchange and their market returns are calculated using the midpoint of the bid/ask spread as of the opening of regular trading on the exchange. 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.
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested on September 1, 2017 and held through February 28, 2018, is intended to help you understand your ongoing costs (in dollars and cents) of investing in a Fund and to compare these costs with the ongoing costs of investing in other funds.
Actual Expenses — The table provides information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. To estimate the expenses that you paid on your account over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number corresponding to your Fund under the heading entitled “Expenses Paid During Period.”
Hypothetical Example for Comparison Purposes — The table also provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions paid on purchases and sales of fund shares. Therefore, the hypothetical examples are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
8 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI EAFE ESG OPTIMIZED ETF
February 28, 2018
Security | Shares | Value | ||||||
COMMON STOCKS — 99.42% |
| |||||||
AUSTRALIA — 6.98% |
| |||||||
Alumina Ltd. | 151,235 | $ | 262,804 | |||||
Amcor Ltd./Australia | 14,945 | 161,878 | ||||||
AMP Ltd. | 76,038 | 313,446 | ||||||
APA Group | 41,704 | 259,983 | ||||||
APA Group Newa | 1,562 | 9,737 | ||||||
ASX Ltd. | 7,308 | 332,517 | ||||||
Aurizon Holdings Ltd. | 45,195 | 160,947 | ||||||
Australia & New Zealand Banking Group Ltd. | 45,910 | 1,039,275 | ||||||
BlueScope Steel Ltd. | 11,078 | 139,588 | ||||||
Brambles Ltd. | 51,114 | 382,374 | ||||||
Caltex Australia Ltd. | 8,560 | 234,597 | ||||||
Commonwealth Bank of Australia | 27,028 | 1,608,894 | ||||||
CSL Ltd. | 5,771 | 733,784 | ||||||
Dexus | 39,469 | 286,033 | ||||||
Goodman Group | 41,412 | 264,939 | ||||||
Insurance Australia Group Ltd. | 54,608 | 348,937 | ||||||
LendLease Group | 25,132 | 349,576 | ||||||
Macquarie Group Ltd. | 6,902 | 557,470 | ||||||
Mirvac Group | 221,423 | 365,793 | ||||||
National Australia Bank Ltd. | 36,975 | 869,569 | ||||||
Newcrest Mining Ltd. | 14,123 | 233,864 | ||||||
Origin Energy Ltd.a | 41,963 | 295,932 | ||||||
Ramsay Health Care Ltd. | 4,176 | 207,940 | ||||||
Rio Tinto Ltd. | 5,162 | 326,465 | ||||||
Santos Ltd.a | 53,291 | 209,296 | ||||||
South32 Ltd. | 92,788 | 240,053 | ||||||
Stockland | 135,024 | 425,079 | ||||||
Sydney Airport | 34,133 | 175,282 | ||||||
Tabcorp Holdings Ltd. | 36,772 | 133,244 | ||||||
Telstra Corp. Ltd. | 74,161 | 193,596 | ||||||
Transurban Group | 62,162 | 560,932 | ||||||
Westpac Banking Corp. | 57,367 | 1,375,519 | ||||||
Woodside Petroleum Ltd. | 29,896 | 679,791 | ||||||
|
| |||||||
13,739,134 | ||||||||
AUSTRIA — 0.32% | ||||||||
OMV AG | 10,933 | 628,052 | ||||||
|
| |||||||
628,052 | ||||||||
BELGIUM — 1.18% | ||||||||
Anheuser-Busch InBev SA/NV | 11,890 | 1,268,604 | ||||||
KBC Group NV | 7,656 | 721,800 | ||||||
Umicore SA | 5,887 | 334,017 | ||||||
|
| |||||||
2,324,421 |
Security | Shares | Value | ||||||
DENMARK — 1.86% | ||||||||
Carlsberg A/S Class B | 2,558 | $ | 314,345 | |||||
Chr Hansen Holding A/S | 2,871 | 239,375 | ||||||
Coloplast A/S Class B | 3,654 | 309,807 | ||||||
Genmab A/Sa | 1,085 | 221,628 | ||||||
Novo Nordisk A/S Class B | 27,852 | 1,444,428 | ||||||
Novozymes A/S Class B | 4,959 | 255,878 | ||||||
Orsted A/Sb | 4,907 | 306,165 | ||||||
Pandora A/S | 2,523 | 264,500 | ||||||
Vestas Wind Systems A/S | 4,292 | 311,875 | ||||||
|
| |||||||
3,668,001 | ||||||||
FINLAND — 0.99% | ||||||||
Neste OYJ | 5,259 | 386,388 | ||||||
Nokia OYJ | 97,353 | 570,292 | ||||||
Stora Enso OYJ Class R | 12,138 | 215,770 | ||||||
UPM-Kymmene OYJ | 8,990 | 309,532 | ||||||
Wartsila OYJ Abp | 6,641 | 469,297 | ||||||
|
| |||||||
1,951,279 | ||||||||
FRANCE — 10.81% | ||||||||
Accor SA | 4,263 | 246,970 | ||||||
Air Liquide SA | 4,856 | 610,919 | ||||||
Airbus SE | 6,884 | 825,670 | ||||||
Atos SE | 3,538 | 468,191 | ||||||
AXA SA | 40,574 | 1,279,710 | ||||||
BNP Paribas SA | 12,151 | 968,782 | ||||||
Capgemini SE | 2,494 | 313,154 | ||||||
Casino Guichard Perrachon SA | 1,450 | 78,910 | ||||||
Cie. de Saint-Gobain | 9,280 | 529,077 | ||||||
Cie. Generale des Etablissements Michelin SCA Class B | 3,799 | 587,058 | ||||||
CNP Assurances | 13,141 | 320,549 | ||||||
Credit Agricole SA | 8,702 | 150,020 | ||||||
Danone SA | 14,906 | 1,195,342 | ||||||
Eiffage SA | 1,943 | 211,147 | ||||||
Engie SA | 19,401 | 304,654 | ||||||
Essilor International Cie. Generale d’Optique SA | 6,032 | 793,445 | ||||||
Gecina SA | 559 | 98,245 | ||||||
Getlink SE Registered | 9,396 | 121,073 | ||||||
Imerys SA | 3,167 | 323,689 | ||||||
Kering SA | 1,450 | 686,175 | ||||||
L’Oreal SA | 5,655 | 1,221,136 | ||||||
LVMH Moet Hennessy Louis Vuitton SE | 3,654 | 1,098,553 | ||||||
Natixis SA | 45,124 | 390,752 |
SCHEDULES OF INVESTMENTS | 9 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EAFE ESG OPTIMIZED ETF
February 28, 2018
Security | Shares | Value | ||||||
Orange SA | 29,464 | $ | 500,945 | |||||
Pernod Ricard SA | 3,857 | 635,066 | ||||||
Peugeot SA | 19,643 | 445,971 | ||||||
Renault SA | 3,277 | 357,633 | ||||||
Rexel SA | 12,354 | 218,103 | ||||||
Sanofi | 12,424 | 985,396 | ||||||
Schneider Electric SE | 11,919 | 1,040,559 | ||||||
Societe BIC SA | 1,537 | 161,497 | ||||||
Societe Generale SA | 9,367 | 538,321 | ||||||
STMicroelectronics NV | 13,311 | 305,538 | ||||||
Thales SA | 1,949 | 217,600 | ||||||
TOTAL SA | 32,759 | 1,876,664 | ||||||
Unibail-Rodamco SE | 2,175 | 508,663 | ||||||
Valeo SA | 3,103 | 202,323 | ||||||
Vivendi SA | 18,154 | 470,508 | ||||||
|
| |||||||
21,288,008 | ||||||||
GERMANY — 9.53% | ||||||||
adidas AG | 3,654 | 813,776 | ||||||
Allianz SE Registered | 8,645 | 2,024,636 | ||||||
BASF SE | 14,558 | 1,534,268 | ||||||
Bayer AG Registered | 10,034 | 1,177,660 | ||||||
Bayerische Motoren Werke AG | 5,394 | 571,171 | ||||||
Brenntag AG | 3,886 | 243,993 | ||||||
Commerzbank AGa | 18,096 | 281,138 | ||||||
Daimler AG Registered | 11,465 | 985,403 | ||||||
Deutsche Bank AG Registered | 24,650 | 396,850 | ||||||
Deutsche Boerse AG | 5,830 | 778,251 | ||||||
Deutsche Post AG Registered | 21,468 | 985,545 | ||||||
Deutsche Wohnen SE Bearer | 10,448 | 432,622 | ||||||
E.ON SE | 30,885 | 314,912 | ||||||
Fraport AG Frankfurt Airport Services Worldwide | 1,663 | 170,659 | ||||||
HeidelbergCement AG | 3,596 | 362,886 | ||||||
Henkel AG & Co. KGaA | 4,473 | 539,276 | ||||||
HOCHTIEF AG | 960 | 162,165 | ||||||
Infineon Technologies AG | 5,655 | 154,496 | ||||||
Linde AGa | 2,252 | 506,345 | ||||||
Merck KGaA | 6,308 | 632,564 | ||||||
MTU Aero Engines AG | 1,247 | 209,276 | ||||||
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen Registered | 3,045 | 683,717 | ||||||
Osram Licht AG | 3,045 | 242,439 | ||||||
ProSiebenSat.1 Media SE Registered | 5,655 | 224,432 | ||||||
RWE AGa | 11,194 | 224,042 | ||||||
SAP SE | 18,734 | 1,969,578 |
Security | Shares | Value | ||||||
Siemens AG Registered | 14,909 | $ | 1,971,848 | |||||
thyssenkrupp AG | 6,061 | 161,300 | ||||||
|
| |||||||
18,755,248 | ||||||||
HONG KONG — 3.48% | ||||||||
AIA Group Ltd. | 139,600 | 1,169,384 | ||||||
BOC Hong Kong Holdings Ltd. | 116,500 | 589,549 | ||||||
CLP Holdings Ltd. | 29,000 | 292,768 | ||||||
Hang Seng Bank Ltd. | 35,000 | 869,935 | ||||||
Hong Kong Exchanges & Clearing Ltd. | 20,500 | 743,997 | ||||||
Hysan Development Co. Ltd. | 58,000 | 336,128 | ||||||
Melco Resorts & Entertainment Ltd. ADR | 10,701 | 293,742 | ||||||
MTR Corp. Ltd. | 131,500 | 697,385 | ||||||
Sands China Ltd. | 58,000 | 327,233 | ||||||
Shangri-La Asia Ltd. | 116,000 | 261,194 | ||||||
Sun Hung Kai Properties Ltd. | 29,000 | 484,365 | ||||||
Swire Pacific Ltd. Class A | 29,000 | 293,510 | ||||||
Swire Properties Ltd. | 87,000 | 297,401 | ||||||
Wharf Real Estate Investment Co. Ltd.a | 29,000 | 199,194 | ||||||
|
| |||||||
6,855,785 | ||||||||
IRELAND — 0.57% | ||||||||
CRH PLC | 20,068 | 667,459 | ||||||
Kerry Group PLC Class A | 1,885 | 187,717 | ||||||
Paddy Power Betfair PLC | 2,262 | 263,746 | ||||||
|
| |||||||
1,118,922 | ||||||||
ISRAEL — 0.45% | ||||||||
Bank Hapoalim BM | 62,263 | 446,202 | ||||||
Bank Leumi Le-Israel BM | 42,514 | 257,931 | ||||||
Teva Pharmaceutical Industries Ltd. ADR | 10,217 | 191,262 | ||||||
|
| |||||||
895,395 | ||||||||
ITALY — 2.07% | ||||||||
Assicurazioni Generali SpA | 22,987 | 432,878 | ||||||
CNH Industrial NV | 34,713 | 471,854 | ||||||
Enel SpA | 143,355 | 835,575 | ||||||
Fiat Chrysler Automobiles NVa | 4,988 | 106,901 | ||||||
Intesa Sanpaolo SpA | 245,932 | 928,649 | ||||||
Snam SpA | 85,608 | 384,340 | ||||||
Terna Rete Elettrica Nazionale SpA | 64,293 | 357,572 | ||||||
UniCredit SpAa | 25,762 | 548,164 | ||||||
|
| |||||||
4,065,933 | ||||||||
JAPAN — 24.01% | ||||||||
Aeon Co. Ltd. | 31,900 | 540,062 | ||||||
AEON Financial Service Co. Ltd. | 8,700 | 203,996 |
10 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EAFE ESG OPTIMIZED ETF
February 28, 2018
Security | Shares | Value | ||||||
Aisin Seiki Co. Ltd. | 5,800 | $ | 340,809 | |||||
Ajinomoto Co. Inc. | 14,500 | 265,934 | ||||||
Alfresa Holdings Corp. | 8,700 | 190,380 | ||||||
ANA Holdings Inc. | 2,900 | 117,163 | ||||||
Asahi Kasei Corp. | 34,800 | 451,205 | ||||||
Asics Corp. | 11,600 | 185,787 | ||||||
Astellas Pharma Inc. | 49,600 | 734,669 | ||||||
Benesse Holdings Inc. | 5,800 | 208,181 | ||||||
Bridgestone Corp. | 8,700 | 389,892 | ||||||
Chugai Pharmaceutical Co. Ltd. | 5,800 | 301,673 | ||||||
Dai Nippon Printing Co. Ltd. | 14,500 | 305,885 | ||||||
Daifuku Co. Ltd. | 3,000 | 198,491 | ||||||
Daiichi Sankyo Co. Ltd. | 5,800 | 200,191 | ||||||
Daikin Industries Ltd. | 8,700 | 1,031,395 | ||||||
Daiwa House Industry Co. Ltd. | 14,600 | 544,156 | ||||||
Denso Corp. | 17,500 | 1,030,762 | ||||||
East Japan Railway Co. | 5,800 | 546,816 | ||||||
Eisai Co. Ltd. | 5,800 | 309,609 | ||||||
FANUC Corp. | 1,375 | 351,917 | ||||||
Fast Retailing Co. Ltd. | 600 | 239,370 | ||||||
Fujitsu Ltd. | 58,000 | 349,995 | ||||||
Hankyu Hanshin Holdings Inc. | 5,800 | 217,422 | ||||||
Hino Motors Ltd. | 12,000 | 159,130 | ||||||
Hitachi Chemical Co. Ltd. | 14,500 | 325,997 | ||||||
Hitachi Ltd. | 87,000 | 666,942 | ||||||
Hitachi Metals Ltd. | 17,400 | 224,379 | ||||||
Honda Motor Co. Ltd. | 29,000 | 1,055,855 | ||||||
Idemitsu Kosan Co. Ltd. | 8,700 | 336,324 | ||||||
Inpex Corp. | 58,800 | 722,705 | ||||||
JFE Holdings Inc. | 11,600 | 270,418 | ||||||
JXTG Holdings Inc. | 60,900 | 374,401 | ||||||
Kajima Corp. | 29,000 | 277,756 | ||||||
Kansai Paint Co. Ltd. | 5,900 | 149,290 | ||||||
Kao Corp. | 8,700 | 640,199 | ||||||
Kawasaki Heavy Industries Ltd. | 5,800 | 213,073 | ||||||
KDDI Corp. | 40,800 | 1,007,717 | ||||||
Keio Corp. | 5,800 | 255,199 | ||||||
Keyence Corp. | 900 | 550,518 | ||||||
Kintetsu Group Holdings Co. Ltd. | 5,800 | 223,945 | ||||||
Kirin Holdings Co. Ltd. | 14,500 | 377,567 | ||||||
Komatsu Ltd. | 20,300 | 744,996 | ||||||
Konica Minolta Inc. | 23,200 | 215,465 | ||||||
Kubota Corp. | 20,300 | 370,405 | ||||||
Kuraray Co. Ltd. | 11,600 | 203,724 | ||||||
Kyocera Corp. | 8,700 | 517,980 |
Security | Shares | Value | ||||||
Kyowa Hakko Kirin Co. Ltd. | 9,000 | $ | 191,462 | |||||
Kyushu Railway Co. | 6,300 | 194,836 | ||||||
Lawson Inc. | 2,900 | 189,972 | ||||||
Mitsubishi Chemical Holdings Corp. | 17,500 | 179,420 | ||||||
Mitsubishi Corp. | 2,900 | 80,840 | ||||||
Mitsubishi Electric Corp. | 29,000 | 493,819 | ||||||
Mitsubishi Estate Co. Ltd. | 8,700 | 152,916 | ||||||
Mitsubishi Heavy Industries Ltd. | 2,900 | 119,093 | ||||||
Mitsubishi UFJ Financial Group Inc. | 160,900 | 1,149,469 | ||||||
Mitsubishi UFJ Lease & Finance Co. Ltd. | 32,700 | 209,307 | ||||||
Mitsui Fudosan Co. Ltd. | 11,600 | 280,257 | ||||||
Mizuho Financial Group Inc. | 353,800 | 661,147 | ||||||
MS&AD Insurance Group Holdings Inc. | 8,700 | 271,669 | ||||||
Murata Manufacturing Co. Ltd. | 2,900 | 407,258 | ||||||
NEC Corp. | 5,200 | 158,868 | ||||||
NGK Insulators Ltd. | 11,700 | 219,735 | ||||||
NGK Spark Plug Co. Ltd. | 11,600 | 296,998 | ||||||
Nidec Corp. | 2,900 | 469,088 | ||||||
Nintendo Co. Ltd. | 1,208 | 555,631 | ||||||
Nippon Express Co. Ltd. | 2,900 | 195,680 | ||||||
Nippon Steel & Sumitomo Metal Corp. | 11,600 | 277,920 | ||||||
Nippon Telegraph & Telephone Corp. | 11,600 | 541,598 | ||||||
Nitto Denko Corp. | 5,800 | 483,927 | ||||||
Nomura Research Institute Ltd. | 3,090 | 139,579 | ||||||
NTT DOCOMO Inc. | 40,600 | 1,044,440 | ||||||
Obayashi Corp. | 20,300 | 230,956 | ||||||
Odakyu Electric Railway Co. Ltd. | 8,700 | 177,905 | ||||||
Omron Corp. | 5,800 | 345,701 | ||||||
Oriental Land Co. Ltd./Japan | 2,900 | 283,192 | ||||||
ORIX Corp. | 20,300 | 363,366 | ||||||
Osaka Gas Co. Ltd. | 32,300 | 641,127 | ||||||
Otsuka Holdings Co. Ltd. | 2,900 | 146,325 | ||||||
Panasonic Corp. | 40,600 | 638,269 | ||||||
Recruit Holdings Co. Ltd. | 20,300 | 493,113 | ||||||
Resona Holdings Inc. | 58,000 | 332,655 | ||||||
Sekisui Chemical Co. Ltd. | 29,000 | 550,349 | ||||||
Sekisui House Ltd. | 17,600 | 309,924 | ||||||
Shimadzu Corp. | 8,900 | 229,788 | ||||||
Shin-Etsu Chemical Co. Ltd. | 5,800 | 618,293 | ||||||
Shionogi & Co. Ltd. | 5,800 | 303,901 | ||||||
Shiseido Co. Ltd. | 2,900 | 175,595 | ||||||
Showa Shell Sekiyu KK | 17,400 | 227,152 | ||||||
SoftBank Group Corp. | 11,600 | 966,984 |
SCHEDULES OF INVESTMENTS | 11 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EAFE ESG OPTIMIZED ETF
February 28, 2018
Security | Shares | Value | ||||||
Sompo Holdings Inc. | 8,700 | $ | 337,792 | |||||
Sony Corp. | 20,300 | 1,035,309 | ||||||
Subaru Corp. | 8,700 | 308,196 | ||||||
Sumitomo Chemical Co. Ltd. | 87,000 | 545,457 | ||||||
Sumitomo Dainippon Pharma Co. Ltd. | 14,500 | 223,265 | ||||||
Sumitomo Metal Mining Co. Ltd. | 7,700 | 363,117 | ||||||
Sumitomo Mitsui Financial Group Inc. | 17,400 | 764,129 | ||||||
Sumitomo Mitsui Trust Holdings Inc. | 11,700 | 474,886 | ||||||
Suntory Beverage & Food Ltd. | 2,900 | 135,345 | ||||||
Sysmex Corp. | 2,900 | 242,154 | ||||||
T&D Holdings Inc. | 17,400 | 290,177 | ||||||
Takeda Pharmaceutical Co. Ltd. | 11,600 | 664,441 | ||||||
Teijin Ltd. | 14,500 | 287,676 | ||||||
THK Co. Ltd. | 2,900 | 127,192 | ||||||
Tokio Marine Holdings Inc. | 14,500 | 674,823 | ||||||
Tokyo Electron Ltd. | 2,900 | 572,363 | ||||||
Tokyo Gas Co. Ltd. | 11,600 | 291,889 | ||||||
Tokyu Corp. | 31,900 | 512,110 | ||||||
Toray Industries Inc. | 40,600 | 413,210 | ||||||
TOTO Ltd. | 5,800 | 307,652 | ||||||
Toyota Motor Corp. | 30,600 | 2,074,795 | ||||||
Toyota Tsusho Corp. | 8,700 | 325,725 | ||||||
West Japan Railway Co. | 2,900 | 202,230 | ||||||
Yamaha Corp. | 5,800 | 257,101 | ||||||
Yamaha Motor Co. Ltd. | 5,800 | 185,080 | ||||||
Yaskawa Electric Corp. | 4,700 | 220,674 | ||||||
Yokogawa Electric Corp. | 14,500 | 295,966 | ||||||
|
| |||||||
47,272,023 | ||||||||
NETHERLANDS — 3.31% | ||||||||
Aegon NV | 30,081 | 210,297 | ||||||
Akzo Nobel NV | 5,568 | 541,651 | ||||||
ASML Holding NV | 7,093 | 1,395,403 | ||||||
Heineken NV | 3,828 | 399,371 | ||||||
ING Groep NV | 33,301 | 588,032 | ||||||
Koninklijke Ahold Delhaize NV | 13,862 | 312,810 | ||||||
Koninklijke DSM NV | 2,523 | 261,991 | ||||||
Koninklijke KPN NV | 60,523 | 189,709 | ||||||
Koninklijke Philips NV | 13,137 | 505,191 | ||||||
Koninklijke Vopak NV | 6,757 | 320,170 | ||||||
NXP Semiconductors NVa | 2,416 | 301,179 | ||||||
Randstad Holding NV | 2,097 | 150,541 | ||||||
RELX NV | 27,405 | 563,203 | ||||||
Unilever NV CVA | 14,808 | 776,154 | ||||||
|
| |||||||
6,515,702 |
Security | Shares | Value | ||||||
NEW ZEALAND — 0.12% | ||||||||
Auckland International Airport Ltd. | 50,509 | $ | 235,297 | |||||
|
| |||||||
235,297 | ||||||||
NORWAY — 1.14% | ||||||||
Norsk Hydro ASA | 61,256 | 416,601 | ||||||
Orkla ASA | 36,888 | 405,122 | ||||||
Statoil ASA | 47,183 | 1,090,274 | ||||||
Telenor ASA | 14,761 | 333,789 | ||||||
|
| |||||||
2,245,786 | ||||||||
PORTUGAL — 0.30% | ||||||||
EDP – Energias de Portugal SA | 79,286 | 266,218 | ||||||
Galp Energia SGPS SA | 18,248 | 330,950 | ||||||
|
| |||||||
597,168 | ||||||||
SINGAPORE — 1.50% | ||||||||
CapitaLand Ltd. | 104,400 | 286,481 | ||||||
City Developments Ltd. | 52,200 | 503,513 | ||||||
DBS Group Holdings Ltd. | 46,400 | 1,006,675 | ||||||
Keppel Corp. Ltd. | 64,000 | 388,011 | ||||||
Singapore Airlines Ltd. | 15,000 | 125,751 | ||||||
Singapore Telecommunications Ltd. | 174,300 | 445,352 | ||||||
StarHub Ltd. | 101,500 | 189,519 | ||||||
|
| |||||||
2,945,302 | ||||||||
SPAIN — 3.36% | ||||||||
Amadeus IT Group SA | 6,845 | 505,586 | ||||||
Banco Bilbao Vizcaya Argentaria SA | 126,313 | 1,061,458 | ||||||
Banco Santander SA | 147,117 | 1,016,837 | ||||||
CaixaBank SA | 35,004 | 171,283 | ||||||
Enagas SA | 2,840 | 74,195 | ||||||
Ferrovial SA | 10,384 | 224,991 | ||||||
Gas Natural SDG SA | 9,860 | 226,264 | ||||||
Iberdrola SA | 103,369 | 766,026 | ||||||
Industria de Diseno Textil SA | 26,548 | 808,187 | ||||||
Red Electrica Corp. SA | 16,539 | 322,749 | ||||||
Repsol SA | 50,901 | 912,907 | ||||||
Telefonica SA | 54,008 | 526,506 | ||||||
|
| |||||||
6,616,989 | ||||||||
SWEDEN — 2.91% | ||||||||
Assa Abloy AB Class B | 17,496 | 392,448 | ||||||
Atlas Copco AB Class A | 8,993 | 385,422 | ||||||
Atlas Copco AB Class B | 7,714 | 294,204 | ||||||
Boliden AB | 14,326 | 509,895 | ||||||
Essity AB Class Ba | 17,840 | 490,920 | ||||||
ICA Gruppen AB | 1,595 | 57,078 | ||||||
Lundin Petroleum ABa | 9,930 | 234,123 |
12 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EAFE ESG OPTIMIZED ETF
February 28, 2018
Security | Shares | Value | ||||||
Millicom International Cellular SA SDR | 3,248 | $ | 217,370 | |||||
Nordea Bank AB | 29,675 | 338,672 | ||||||
Sandvik AB | 18,214 | 339,637 | ||||||
Skandinaviska Enskilda Banken AB Class A | 31,859 | 376,517 | ||||||
Skanska AB Class B | 7,453 | 149,006 | ||||||
SKF AB Class B | 9,199 | 193,684 | ||||||
Swedbank AB Class A | 21,086 | 531,890 | ||||||
Telefonaktiebolaget LM Ericsson Class B | 48,633 | 327,292 | ||||||
Telia Co. AB | 99,283 | 471,281 | ||||||
Volvo AB Class B | 22,388 | 424,090 | ||||||
|
| |||||||
5,733,529 | ||||||||
SWITZERLAND — 7.89% | ||||||||
ABB Ltd. Registered | 33,814 | 825,090 | ||||||
Adecco Group AG Registered | 3,422 | 276,135 | ||||||
Barry Callebaut AG Registered | 118 | 233,116 | ||||||
Cie. Financiere Richemont SA Class A Registered | 7,540 | 664,283 | ||||||
Credit Suisse Group AG Registered | 22,163 | 411,811 | ||||||
Givaudan SA Registered | 174 | 397,141 | ||||||
Kuehne + Nagel International AG Registered | 2,479 | 405,800 | ||||||
LafargeHolcim Ltd. Registered | 8,033 | 470,734 | ||||||
Lonza Group AG Registered | 2,157 | 549,606 | ||||||
Nestle SA Registered | 42,543 | 3,388,855 | ||||||
Novartis AG Registered | 28,623 | 2,397,542 | ||||||
Roche Holding AG | 9,439 | 2,190,331 | ||||||
Swiss Re AG | 9,657 | 986,086 | ||||||
Swisscom AG Registered | 1,109 | 600,823 | ||||||
UBS Group AG Registered | 51,359 | 982,019 | ||||||
Zurich Insurance Group AG | 2,291 | 756,354 | ||||||
|
| |||||||
15,535,726 | ||||||||
UNITED KINGDOM — 16.64% | ||||||||
3i Group PLC | 21,025 | 272,196 | ||||||
Anglo American PLC | 20,833 | 511,117 | ||||||
Antofagasta PLC | 21,606 | 258,998 | ||||||
Ashtead Group PLC | 10,875 | 316,764 | ||||||
Associated British Foods PLC | 5,974 | 216,565 | ||||||
AstraZeneca PLC | 19,546 | 1,285,978 | ||||||
Aviva PLC | 83,810 | 583,855 | ||||||
BAE Systems PLC | 12,586 | 100,477 | ||||||
Barclays PLC | 215,557 | 634,107 | ||||||
Barratt Developments PLC | 33,350 | 247,678 | ||||||
Berkeley Group Holdings PLC | 4,814 | 255,635 |
Security | Shares | Value | ||||||
BP PLC | 274,619 | $ | 1,797,892 | |||||
British Land Co. PLC (The) | 37,410 | 323,705 | ||||||
BT Group PLC | 117,810 | 389,254 | ||||||
Bunzl PLC | 8,352 | 224,978 | ||||||
Cobham PLCa | 97,392 | 152,240 | ||||||
Coca-Cola European Partners PLC | 8,410 | 319,748 | ||||||
Coca-Cola HBC AGa | 12,905 | 424,081 | ||||||
Compass Group PLC | 21,637 | 460,902 | ||||||
Croda International PLC | 8,236 | 524,504 | ||||||
DCC PLC | 3,190 | 291,631 | ||||||
Diageo PLC | 52,403 | 1,776,206 | ||||||
easyJet PLC | 10,824 | 250,404 | ||||||
Ferguson PLC | 7,076 | 501,718 | ||||||
GKN PLC | 45,414 | 273,948 | ||||||
GlaxoSmithKline PLC | 62,621 | 1,127,883 | ||||||
Glencore PLC | 142,250 | 757,243 | ||||||
Hammerson PLC | 43,877 | 270,238 | ||||||
HSBC Holdings PLC | 219,791 | 2,171,660 | ||||||
IMI PLC | 10,411 | 176,011 | ||||||
InterContinental Hotels Group PLC | 5,786 | 374,616 | ||||||
Intertek Group PLC | 4,408 | 298,394 | ||||||
Investec PLC | 41,789 | 365,627 | ||||||
ITV PLC | 168,069 | 370,518 | ||||||
J Sainsbury PLC | 93,148 | 332,411 | ||||||
John Wood Group PLC | 23,850 | 201,442 | ||||||
Johnson Matthey PLC | 7,250 | 313,168 | ||||||
Kingfisher PLC | 86,507 | 426,594 | ||||||
Legal & General Group PLC | 96,604 | 349,536 | ||||||
Lloyds Banking Group PLC | 552,583 | 523,827 | ||||||
Marks & Spencer Group PLC | 62,466 | 254,419 | ||||||
Mediclinic International PLC | 22,204 | 181,054 | ||||||
Meggitt PLC | 27,318 | 170,359 | ||||||
Merlin Entertainments PLCb | 33,524 | 157,050 | ||||||
Mondi PLC | 7,830 | 205,199 | ||||||
National Grid PLC | 79,762 | 813,481 | ||||||
Next PLC | 3,497 | 233,979 | ||||||
Old Mutual PLC | 126,614 | 445,384 | ||||||
Prudential PLC | 31,468 | 793,672 | ||||||
Reckitt Benckiser Group PLC | 8,874 | 706,234 | ||||||
RELX PLC | 32,045 | 659,208 | ||||||
Rio Tinto PLC | 16,213 | 877,033 | ||||||
Rolls-Royce Holdings PLC | 20,387 | 235,846 | ||||||
Schroders PLC | 11,310 | 537,475 | ||||||
Segro PLC | 66,468 | 523,488 | ||||||
Sky PLC | 22,620 | 420,131 |
SCHEDULES OF INVESTMENTS | 13 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EAFE ESG OPTIMIZED ETF
February 28, 2018
Security | Shares | Value | ||||||
SSE PLC | 24,998 | $ | 421,933 | |||||
Standard Chartered PLCa | 50,663 | 565,988 | ||||||
Taylor Wimpey PLC | 79,605 | 204,012 | ||||||
Tesco PLC | 142,535 | 413,994 | ||||||
Travis Perkins PLC | 10,875 | 192,546 | ||||||
Unilever PLC | 18,417 | 947,408 | ||||||
Vodafone Group PLC | 455,039 | 1,277,463 | ||||||
Whitbread PLC | 4,060 | 217,218 | ||||||
Wm Morrison Supermarkets PLC | 55,448 | 172,433 | ||||||
WPP PLC | 35,728 | 686,236 | ||||||
|
| |||||||
32,766,992 | ||||||||
|
| |||||||
TOTAL COMMON STOCKS | ||||||||
(Cost: $173,998,477) | 195,754,692 | |||||||
PREFERRED STOCKS — 0.20% |
| |||||||
ITALY — 0.20% |
| |||||||
Intesa Sanpaolo SpA, Preference Shares | 98,368 | 393,037 | ||||||
|
| |||||||
393,037 | ||||||||
|
| |||||||
TOTAL PREFERRED STOCKS | ||||||||
(Cost: $274,820) | 393,037 |
Security | Shares | Value | ||||||
SHORT-TERM INVESTMENTS — 0.03% |
| |||||||
MONEY MARKET FUNDS — 0.03% |
| |||||||
BlackRock Cash Funds: Treasury, | ||||||||
1.32%c,d | 52,298 | $ | 52,298 | |||||
|
| |||||||
52,298 | ||||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||||
(Cost: $52,298) | 52,298 | |||||||
|
| |||||||
TOTAL INVESTMENTS | ||||||||
(Cost: $174,325,595) | 196,200,027 | |||||||
Other Assets, Less Liabilities — 0.35% |
| 698,855 | ||||||
|
| |||||||
NET ASSETS — 100.00% | $ | 196,898,882 | ||||||
|
|
ADR — American Depositary Receipts
SDR — Swedish Depositary Receipts
a | Non-income producing security. |
b | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
c | Affiliate of the Fund. |
d | Annualized 7-day yield as of period end. |
Affiliates (Note 2)
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows:
Affiliated issuer | Shares held at 08/31/17 | Shares purchased | Shares sold | Shares held at 02/28/18 | Value at 02/28/18 | Income | Net realized gain (loss) a | Change in unrealized appreciation (depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, | 121,610 | — | (121,610 | )b | — | $ | — | $ | 1,417 | c | $ | (40 | ) | $ | — | |||||||||||||||||
BlackRock Cash Funds: Treasury, | 11,692 | 40,606 | b | — | 52,298 | 52,298 | 421 | — | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 52,298 | $ | 1,838 | $ | (40 | ) | $ | — | ||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
a | Includes realized capital gain distributions from an affiliated fund, if any. |
b | Net of purchases and sales. |
c | Includes the Fund’s portion of securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. |
14 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EAFE ESG OPTIMIZED ETF
February 28, 2018
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common stocks | $ | 195,754,692 | $ | — | $ | — | $ | 195,754,692 | ||||||||
Preferred stocks | 393,037 | — | — | 393,037 | ||||||||||||
Money market funds | 52,298 | — | — | 52,298 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 196,200,027 | $ | — | $ | — | $ | 196,200,027 | ||||||||
|
|
|
|
|
|
|
| |||||||||
See notes to financial statements.
SCHEDULES OF INVESTMENTS | 15 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI GLOBAL IMPACT ETF
February 28, 2018
Security | Shares | Value | ||||||
COMMON STOCKS — 99.39% |
| |||||||
AUSTRALIA — 1.04% |
| |||||||
CSL Ltd. | 1,450 | $ | 184,368 | |||||
GPT Group (The) | 8,710 | 32,307 | ||||||
Mirvac Group | 54,360 | 89,803 | ||||||
|
| |||||||
306,478 | ||||||||
BELGIUM — 3.95% |
| |||||||
Umicore SA | 20,560 | 1,166,536 | ||||||
|
| |||||||
1,166,536 | ||||||||
CANADA — 0.11% |
| |||||||
First Capital Realty Inc. | 2,123 | 33,087 | ||||||
|
| |||||||
33,087 | ||||||||
CHINA — 5.50% |
| |||||||
3SBio Inc.a,b | 5,500 | 10,473 | ||||||
Beijing Enterprises Water Group Ltd. | 360,000 | 234,624 | ||||||
China Everbright International Ltd. | 100,000 | 154,882 | ||||||
China Longyuan Power Group Corp. Ltd. Class H | 280,000 | 186,063 | ||||||
China Medical System Holdings Ltd. | 10,000 | 20,063 | ||||||
China Mengniu Dairy Co. Ltd. | 50,000 | 164,211 | ||||||
China Vanke Co. Ltd. Class H | 48,000 | 215,608 | ||||||
CSPC Pharmaceutical Group Ltd. | 20,000 | 46,209 | ||||||
GCL-Poly Energy Holdings Ltd.a | 1,573,000 | 249,258 | ||||||
Huaneng Renewables Corp. Ltd. Class H | 360,000 | 120,532 | ||||||
New Oriental Education & Technology Group Inc. ADR | 1,980 | 180,952 | ||||||
Sino Biopharmaceutical Ltd. | 22,000 | 41,665 | ||||||
|
| |||||||
1,624,540 | ||||||||
DENMARK — 6.25% |
| |||||||
Genmab A/Sa | 10 | 2,043 | ||||||
H Lundbeck A/S | 605 | 31,782 | ||||||
Novo Nordisk A/S Class B | 11,470 | 594,844 | ||||||
Vestas Wind Systems A/S | 16,750 | 1,217,124 | ||||||
|
| |||||||
1,845,793 | ||||||||
FRANCE — 14.79% |
| |||||||
Danone SA | 7,580 | 607,855 | ||||||
Fonciere Des Regions | 370 | 38,787 | ||||||
Gecina SA | 220 | 38,665 | ||||||
Ipsen SA | 187 | 27,563 | ||||||
Klepierre SA | 2,140 | 88,559 | ||||||
Schneider Electric SE | 13,300 | 1,161,124 | ||||||
Suez | 75,080 | 1,037,046 |
Security | Shares | Value | ||||||
Unibail-Rodamco SE | 814 | $ | 190,369 | |||||
Veolia Environnement SA | 48,350 | 1,177,633 | ||||||
|
| |||||||
4,367,601 | ||||||||
GERMANY — 2.14% |
| |||||||
KION Group AG | 3,610 | 310,319 | ||||||
Vonovia SE | 7,150 | 322,920 | ||||||
|
| |||||||
633,239 | ||||||||
HONG KONG — 2.04% |
| |||||||
Swire Properties Ltd. | 8,000 | 27,347 | ||||||
WH Group Ltd.b | 465,000 | 576,400 | ||||||
|
| |||||||
603,747 | ||||||||
INDONESIA — 0.09% |
| |||||||
Indofood CBP Sukses Makmur Tbk PT | 22,000 | 14,362 | ||||||
Unilever Indonesia Tbk PT | 3,000 | 11,761 | ||||||
|
| |||||||
26,123 | ||||||||
JAPAN — 10.90% |
| |||||||
Chugai Pharmaceutical Co. Ltd. | 1,100 | 57,214 | ||||||
Daiichi Sankyo Co. Ltd. | 5,000 | 178,436 | ||||||
East Japan Railway Co. | 12,000 | 1,131,343 | ||||||
Japan Retail Fund Investment Corp. | 22 | 42,328 | ||||||
Kyowa Hakko Kirin Co. Ltd. | 1,100 | 23,401 | ||||||
NH Foods Ltd. | 20,000 | 450,775 | ||||||
Nippon Prologis REIT Inc. | 11 | 24,947 | ||||||
Nisshin Seifun Group Inc. | 4,500 | 89,490 | ||||||
Nissin Foods Holdings Co. Ltd. | 1,200 | 82,320 | ||||||
Ono Pharmaceutical Co. Ltd. | 2,200 | 64,533 | ||||||
Shionogi & Co. Ltd. | 1,200 | 62,876 | ||||||
Sysmex Corp. | 1,000 | 83,501 | ||||||
Terumo Corp. | 2,200 | 118,964 | ||||||
TOTO Ltd. | 5,500 | 291,739 | ||||||
Toyo Suisan Kaisha Ltd. | 3,300 | 129,582 | ||||||
Unicharm Corp. | 5,000 | 140,715 | ||||||
Yokogawa Electric Corp. | 12,000 | 244,937 | ||||||
|
| |||||||
3,217,101 | ||||||||
MEXICO — 0.26% |
| |||||||
Gruma SAB de CV Series B | 3,700 | 42,791 | ||||||
Kimberly-Clark de Mexico SAB de CV Series A | 19,000 | 34,592 | ||||||
|
| |||||||
77,383 | ||||||||
NORWAY — 0.53% |
| |||||||
Marine Harvest ASA | 7,990 | 155,654 | ||||||
|
| |||||||
155,654 |
16 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI GLOBAL IMPACT ETF
February 28, 2018
Security | Shares | Value | ||||||
SINGAPORE — 0.23% |
| |||||||
CapitaLand Commercial Trust | 21,095 | $ | 27,588 | |||||
CapitaLand Mall Trust | 27,000 | 41,229 | ||||||
|
| |||||||
68,817 | ||||||||
SOUTH AFRICA — 0.35% |
| |||||||
Pioneer Foods Group Ltd. | 3,520 | 39,215 | ||||||
Tiger Brands Ltd. | 1,808 | 65,340 | ||||||
|
| |||||||
104,555 | ||||||||
SOUTH KOREA — 1.05% |
| |||||||
Ottogi Corp. | 33 | 21,545 | ||||||
Samsung SDI Co. Ltd. | 1,820 | 287,395 | ||||||
|
| |||||||
308,940 | ||||||||
SPAIN — 1.96% |
| |||||||
Siemens Gamesa Renewable Energy SA | 36,230 | 578,199 | ||||||
|
| |||||||
578,199 | ||||||||
SWEDEN — 1.61% |
| |||||||
Essity AB Class Ba | 17,270 | 475,235 | ||||||
|
| |||||||
475,235 | ||||||||
SWITZERLAND — 0.63% |
| |||||||
Geberit AG Registered | 410 | 185,770 | ||||||
|
| |||||||
185,770 | ||||||||
TAIWAN — 4.11% |
| |||||||
Innolux Corp. | 1,980,000 | 881,643 | ||||||
Standard Foods Corp. | 10,000 | 23,497 | ||||||
Uni-President Enterprises Corp. | 130,000 | 307,239 | ||||||
|
| |||||||
1,212,379 | ||||||||
THAILAND — 0.03% |
| |||||||
Energy Absolute PCL NVDR | 4,000 | 8,570 | ||||||
|
| |||||||
8,570 | ||||||||
UNITED KINGDOM — 11.72% |
| |||||||
Barratt Developments PLC | 63,340 | 470,402 | ||||||
Berkeley Group Holdings PLC | 5,560 | 295,249 | ||||||
Johnson Matthey PLC | 26,090 | 1,126,974 | ||||||
Pearson PLC | 83,410 | 841,722 | ||||||
Shire PLC | 9,097 | 389,692 | ||||||
Taylor Wimpey PLC | 131,370 | 336,675 | ||||||
|
| |||||||
3,460,714 | ||||||||
UNITED STATES — 30.10% |
| |||||||
AbbVie Inc. | 9,320 | 1,079,536 | ||||||
Acuity Brands Inc. | 1,230 | 175,373 | ||||||
Akamai Technologies Inc.a | 4,509 | 304,177 | ||||||
Amgen Inc. | 4,240 | 779,185 |
Security | Shares | Value | ||||||
Arista Networks Inc.a | 470 | $ | 126,778 | |||||
BioMarin Pharmaceutical Inc.a | 660 | 53,572 | ||||||
Cadence Design Systems Inc.a | 6,133 | 237,776 | ||||||
Celgene Corp.a | 5,870 | 511,394 | ||||||
Citrix Systems Inc.a | 3,810 | 350,520 | ||||||
Cognex Corp. | 1,460 | 78,417 | ||||||
Colgate-Palmolive Co. | 4,680 | 322,780 | ||||||
Digital Realty Trust Inc. | 2,030 | 204,299 | ||||||
Edwards Lifesciences Corp.a | 869 | 116,159 | ||||||
Gilead Sciences Inc. | 14,630 | 1,151,820 | ||||||
Hormel Foods Corp. | 4,830 | 156,782 | ||||||
Incyte Corp.a | 580 | 49,393 | ||||||
Jazz Pharmaceuticals PLCa | 440 | 63,712 | ||||||
JM Smucker Co. (The) | 990 | 125,037 | ||||||
Kimberly-Clark Corp. | 6,320 | 701,014 | ||||||
Procter & Gamble Co. (The) | 14,360 | 1,127,547 | ||||||
Rockwell Automation Inc. | 2,295 | 414,936 | ||||||
ServiceNow Inc.a | 1,310 | 210,923 | ||||||
Vertex Pharmaceuticals Inc.a | 650 | 107,920 | ||||||
VMware Inc. Class Aa,c | 1,210 | 159,418 | ||||||
Xylem Inc./NY | 3,740 | 278,929 | ||||||
|
| |||||||
8,887,397 | ||||||||
|
| |||||||
TOTAL COMMON STOCKS | ||||||||
(Cost: $26,522,467) |
| 29,347,858 | ||||||
SHORT-TERM INVESTMENTS — 0.75% |
| |||||||
MONEY MARKET FUNDS — 0.75% |
| |||||||
BlackRock Cash Funds: Institutional, |
| |||||||
1.58%d,e,f | 142,966 | 142,981 | ||||||
BlackRock Cash Funds: Treasury, |
| |||||||
1.32%d,e | 77,792 | 77,792 | ||||||
|
| |||||||
220,773 | ||||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS | ||||||||
(Cost: $220,778) |
| 220,773 | ||||||
|
|
SCHEDULES OF INVESTMENTS | 17 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI GLOBAL IMPACT ETF
February 28, 2018
Value | ||||||
TOTAL INVESTMENTS | ||||||
(Cost: $26,743,245) | $ | 29,568,631 | ||||
Other Assets, Less Liabilities — (0.14)% | (42,017 | ) | ||||
|
| |||||
NET ASSETS — 100.00% | $ | 29,526,614 | ||||
|
|
ADR — American Depositary Receipts
NVDR — Non-Voting Depositary Receipts
a | Non-income producing security. |
b | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
c | All or a portion of this security is on loan. |
d | Affiliate of the Fund. |
e | Annualized 7-day yield as of period end. |
f | All or a portion of this security was purchased with cash collateral received from loaned securities. |
Affiliates (Note 2)
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows:
Affiliated issuer | Shares held at 08/31/17 | Shares purchased | Shares sold | Shares held at 02/28/18 | Value at 02/28/18 | Income | Net realized gain (loss) a | Change in unrealized appreciation (depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, | 480,537 | — | (337,571 | )b | 142,966 | $ | 142,981 | $ | 2,008 | c | $ | (180 | ) | $ | (13 | ) | ||||||||||||||||
BlackRock Cash Funds: Treasury, | 8,389 | 69,403 | b | — | 77,792 | 77,792 | 186 | — | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 220,773 | $ | 2,194 | $ | (180 | ) | $ | (13 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
a | N Includes realized capital gain distributions from an affiliated fund, if any. |
b | Net of purchases and sales. |
c | Includes the Fund’s portion of securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. |
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common stocks | $ | 29,347,858 | $ | — | $ | — | $ | 29,347,858 | ||||||||
Money market funds | 220,773 | — | — | 220,773 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 29,568,631 | $ | — | $ | — | $ | 29,568,631 | ||||||||
|
|
|
|
|
|
|
| |||||||||
See notes to financial statements.
18 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI USA ESG OPTIMIZED ETF
February 28, 2018
Security | Shares | Value | ||||||
COMMON STOCKS — 99.74% |
| |||||||
AEROSPACE & DEFENSE — 2.46% |
| |||||||
Arconic Inc. | 2,263 | $ | 55,194 | |||||
L3 Technologies Inc. | 27 | 5,604 | ||||||
Northrop Grumman Corp. | 970 | 339,539 | ||||||
Raytheon Co. | 1,551 | 337,358 | ||||||
Rockwell Collins Inc. | 1,912 | 263,321 | ||||||
Spirit AeroSystems Holdings Inc. Class A | 815 | 74,401 | ||||||
United Technologies Corp. | 2,304 | 310,441 | ||||||
|
| |||||||
1,385,858 | ||||||||
AIR FREIGHT & LOGISTICS — 0.67% |
| |||||||
Expeditors International of Washington Inc. | 1,789 | 116,213 | ||||||
United Parcel Service Inc. Class B | 2,514 | 262,487 | ||||||
|
| |||||||
378,700 | ||||||||
AIRLINES — 0.20% | ||||||||
Delta Air Lines Inc. | 1,026 | 55,301 | ||||||
Southwest Airlines Co. | 989 | 57,204 | ||||||
|
| |||||||
112,505 | ||||||||
AUTOMOBILES — 0.33% | ||||||||
Tesla Inc.a,b | 539 | 184,909 | ||||||
|
| |||||||
184,909 | ||||||||
BANKS — 5.78% | ||||||||
Bank of America Corp. | 23,729 | 761,701 | ||||||
Citigroup Inc. | 7,032 | 530,846 | ||||||
Comerica Inc. | 1,258 | 122,303 | ||||||
First Republic Bank/CA | 724 | 67,187 | ||||||
JPMorgan Chase & Co. | 8,544 | 986,832 | ||||||
KeyCorp | 8,397 | 177,428 | ||||||
M&T Bank Corp. | 385 | 73,088 | ||||||
People’s United Financial Inc. | 6,424 | 122,955 | ||||||
PNC Financial Services Group Inc. (The)c | 1,680 | 264,869 | ||||||
Regions Financial Corp. | 2,968 | 57,609 | ||||||
SVB Financial Groupa | 339 | 84,404 | ||||||
U.S. Bancorp. | 99 | 5,382 | ||||||
|
| |||||||
3,254,604 | ||||||||
BEVERAGES — 2.41% | ||||||||
Coca-Cola Co. (The) | 13,322 | 575,777 | ||||||
Molson Coors Brewing Co. Class B | 1,317 | 100,421 | ||||||
PepsiCo Inc. | 6,208 | 681,204 | ||||||
|
| |||||||
1,357,402 |
Security | Shares | Value | ||||||
BIOTECHNOLOGY — 2.96% | ||||||||
AbbVie Inc. | 4,061 | $ | 470,386 | |||||
Amgen Inc. | 1,690 | 310,572 | ||||||
Biogen Inc.a | 626 | 180,908 | ||||||
Celgene Corp.a | 1,785 | 155,509 | ||||||
Gilead Sciences Inc. | 3,777 | 297,363 | ||||||
Incyte Corp.a | 658 | 56,035 | ||||||
TESARO Inc.a,b | 936 | 51,695 | ||||||
Vertex Pharmaceuticals Inc.a | 868 | 144,114 | ||||||
|
| |||||||
1,666,582 | ||||||||
BUILDING PRODUCTS — 0.92% | ||||||||
Allegion PLC | 1,368 | 115,062 | ||||||
Johnson Controls International PLC | 4,787 | 176,497 | ||||||
Lennox International Inc. | 283 | 57,910 | ||||||
Masco Corp. | 1,970 | 81,006 | ||||||
Owens Corning | 1,085 | 88,211 | ||||||
|
| |||||||
518,686 | ||||||||
CAPITAL MARKETS — 3.84% |
| |||||||
Ameriprise Financial Inc. | 357 | 55,849 | ||||||
Bank of New York Mellon Corp. (The) | 3,893 | 222,018 | ||||||
BlackRock Inc.c | 631 | 346,690 | ||||||
Charles Schwab Corp. (The) | 1,939 | 102,806 | ||||||
CME Group Inc. | 1,042 | 173,139 | ||||||
Franklin Resources Inc. | 1,467 | 56,729 | ||||||
Goldman Sachs Group Inc. (The) | 853 | 224,279 | ||||||
Moody’s Corp. | 343 | 57,240 | ||||||
Morgan Stanley | 4,161 | 233,099 | ||||||
Northern Trust Corp. | 2,048 | 216,822 | ||||||
S&P Global Inc. | 701 | 134,452 | ||||||
State Street Corp. | 1,958 | 207,842 | ||||||
T Rowe Price Group Inc. | 616 | 68,930 | ||||||
TD Ameritrade Holding Corp. | 1,033 | 59,397 | ||||||
|
| |||||||
2,159,292 | ||||||||
CHEMICALS — 2.44% | ||||||||
Axalta Coating Systems Ltd.a | 2,110 | 64,988 | ||||||
DowDuPont Inc. | 5,643 | 396,703 | ||||||
Ecolab Inc. | 4,548 | 593,287 | ||||||
International Flavors & Fragrances Inc. | 842 | 118,932 | ||||||
Mosaic Co. (The) | 3,816 | 100,437 | ||||||
Sherwin-Williams Co. (The) | 253 | 101,600 | ||||||
|
| |||||||
1,375,947 | ||||||||
COMMUNICATIONS EQUIPMENT — 1.36% |
| |||||||
Cisco Systems Inc. | 13,682 | 612,680 | ||||||
CommScope Holding Co. Inc.a | 1,472 | 56,981 |
SCHEDULES OF INVESTMENTS | 19 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI USA ESG OPTIMIZED ETF
February 28, 2018
Security | Shares | Value | ||||||
Motorola Solutions Inc. | 904 | $ | 95,960 | |||||
|
| |||||||
765,621 | ||||||||
CONSTRUCTION & ENGINEERING — 0.10% |
| |||||||
Fluor Corp. | 1,012 | 57,583 | ||||||
|
| |||||||
57,583 | ||||||||
CONSUMER FINANCE — 0.96% | ||||||||
Ally Financial Inc. | 2,016 | 56,246 | ||||||
American Express Co. | 4,164 | 406,032 | ||||||
Capital One Financial Corp. | 785 | 76,875 | ||||||
|
| |||||||
539,153 | ||||||||
CONTAINERS & PACKAGING — 0.16% |
| |||||||
WestRock Co. | 1,357 | 89,236 | ||||||
|
| |||||||
89,236 | ||||||||
DISTRIBUTORS — 0.13% | ||||||||
LKQ Corp.a | 1,808 | 71,380 | ||||||
|
| |||||||
71,380 | ||||||||
DIVERSIFIED FINANCIAL SERVICES — 0.99% |
| |||||||
Berkshire Hathaway Inc. Class Ba | 2,417 | 500,803 | ||||||
Voya Financial Inc. | 1,070 | 54,591 | ||||||
|
| |||||||
555,394 | ||||||||
DIVERSIFIED TELECOMMUNICATION SERVICES — 1.73% |
| |||||||
AT&T Inc. | 12,736 | 462,317 | ||||||
CenturyLink Inc. | 3,771 | 66,634 | ||||||
Verizon Communications Inc. | 9,299 | 443,934 | ||||||
|
| |||||||
972,885 | ||||||||
ELECTRIC UTILITIES — 2.36% | ||||||||
American Electric Power Co. Inc. | 1,149 | 75,351 | ||||||
Edison International | 969 | 58,712 | ||||||
Eversource Energy | 4,337 | 247,209 | ||||||
Exelon Corp. | 4,466 | 165,421 | ||||||
NextEra Energy Inc. | 2,736 | 416,282 | ||||||
Southern Co. (The) | 1,832 | 78,886 | ||||||
Xcel Energy Inc. | 6,561 | 283,960 | ||||||
|
| |||||||
1,325,821 | ||||||||
ELECTRICAL EQUIPMENT — 0.34% | ||||||||
Acuity Brands Inc. | 377 | 53,753 | ||||||
Eaton Corp. PLC | 705 | 56,893 | ||||||
Rockwell Automation Inc. | 436 | 78,829 | ||||||
|
| |||||||
189,475 | ||||||||
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 0.70% |
| |||||||
Corning Inc. | 4,443 | 129,203 | ||||||
TE Connectivity Ltd. | 2,037 | 209,994 |
Security | Shares | Value | ||||||
Trimble Inc.a | 1,441 | $ | 54,657 | |||||
|
| |||||||
393,854 | ||||||||
ENERGY EQUIPMENT & SERVICES — 0.77% |
| |||||||
National Oilwell Varco Inc. | 2,679 | 94,006 | ||||||
Schlumberger Ltd. | 3,474 | 228,034 | ||||||
TechnipFMC PLC | 3,861 | 111,274 | ||||||
|
| |||||||
433,314 | ||||||||
EQUITY REAL ESTATE INVESTMENT TRUSTS |
| |||||||
American Tower Corp. | 1,366 | 190,325 | ||||||
Boston Properties Inc. | 1,246 | 148,112 | ||||||
Equinix Inc. | 535 | 209,773 | ||||||
HCP Inc. | 2,507 | 54,251 | ||||||
Host Hotels & Resorts Inc. | 5,205 | 96,605 | ||||||
Iron Mountain Inc. | 2,249 | 70,753 | ||||||
Liberty Property Trust | 4,314 | 169,368 | ||||||
Prologis Inc.b | 4,975 | 301,883 | ||||||
SBA Communications Corp.a | 454 | 71,401 | ||||||
UDR Inc. | 2,482 | 83,445 | ||||||
Weyerhaeuser Co. | 2,830 | 99,135 | ||||||
|
| |||||||
1,495,051 | ||||||||
FOOD & STAPLES RETAILING — 0.62% |
| |||||||
Costco Wholesale Corp. | 483 | 92,205 | ||||||
CVS Health Corp. | 2,030 | 137,492 | ||||||
Walgreens Boots Alliance Inc. | 1,767 | 121,728 | ||||||
|
| |||||||
351,425 | ||||||||
FOOD PRODUCTS — 1.94% | ||||||||
Archer-Daniels-Midland Co. | 1,554 | 64,522 | ||||||
Bunge Ltd. | 1,330 | 100,322 | ||||||
Campbell Soup Co. | 2,532 | 109,003 | ||||||
General Mills Inc. | 3,995 | 201,947 | ||||||
Kellogg Co. | 3,298 | 218,327 | ||||||
Kraft Heinz Co. (The) | 1,861 | 124,780 | ||||||
McCormick & Co. Inc./MD NVS | 1,237 | 132,087 | ||||||
Mondelez International Inc. Class A | 3,191 | 140,085 | ||||||
|
| |||||||
1,091,073 | ||||||||
|
| |||||||
HEALTH CARE EQUIPMENT & SUPPLIES — 2.09% |
| |||||||
Abbott Laboratories | 2,596 | 156,617 | ||||||
Align Technology Inc.a | 400 | 105,008 | ||||||
Becton Dickinson and Co. | 1,497 | 332,364 | ||||||
Cooper Companies Inc. (The) | 268 | 61,779 | ||||||
Edwards Lifesciences Corp.a | 1,025 | 137,012 | ||||||
IDEXX Laboratories Inc.a | 532 | 99,606 | ||||||
Medtronic PLC | 1,816 | 145,080 |
20 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI USA ESG OPTIMIZED ETF
February 28, 2018
Security | Shares | Value | ||||||
ResMed Inc. | 874 | $ | 83,266 | |||||
Varian Medical Systems Inc.a | 447 | 53,345 | ||||||
|
| |||||||
1,174,077 | ||||||||
HEALTH CARE PROVIDERS & SERVICES — 2.83% |
| |||||||
Aetna Inc. | 553 | 97,914 | ||||||
AmerisourceBergen Corp. | 721 | 68,610 | ||||||
Anthem Inc. | 434 | 102,155 | ||||||
Cardinal Health Inc. | 2,167 | 149,978 | ||||||
Centene Corp.a | 571 | 57,911 | ||||||
Cigna Corp. | 652 | 127,720 | ||||||
Envision Healthcare Corp.a | 1,534 | 59,059 | ||||||
HCA Healthcare Inc. | 1,469 | 145,798 | ||||||
Henry Schein Inc.a | 2,630 | 174,080 | ||||||
Humana Inc. | 346 | 94,050 | ||||||
Quest Diagnostics Inc. | 968 | 99,752 | ||||||
UnitedHealth Group Inc. | 1,840 | 416,135 | ||||||
|
| |||||||
1,593,162 | ||||||||
HOTELS, RESTAURANTS & LEISURE — 1.59% |
| |||||||
Darden Restaurants Inc. | 600 | 55,314 | ||||||
Hilton Worldwide Holdings Inc. | 1,384 | 111,813 | ||||||
Marriott International Inc./MD Class A | 1,357 | 191,622 | ||||||
McDonald’s Corp. | 1,190 | 187,711 | ||||||
MGM Resorts International | 1,802 | 61,682 | ||||||
Royal Caribbean Cruises Ltd. | 646 | 81,784 | ||||||
Starbucks Corp. | 1,777 | 101,467 | ||||||
Vail Resorts Inc. | 507 | 104,376 | ||||||
|
| |||||||
895,769 | ||||||||
HOUSEHOLD DURABLES — 0.44% | ||||||||
Mohawk Industries Inc.a | 451 | 108,186 | ||||||
Newell Brands Inc. | 3,360 | 86,319 | ||||||
Whirlpool Corp. | 324 | 52,627 | ||||||
|
| |||||||
247,132 | ||||||||
HOUSEHOLD PRODUCTS — 1.95% | ||||||||
Clorox Co. (The) | 1,322 | 170,644 | ||||||
Colgate-Palmolive Co. | 3,064 | 211,324 | ||||||
Kimberly-Clark Corp. | 1,045 | 115,911 | ||||||
Procter & Gamble Co. (The) | 7,667 | 602,013 | ||||||
|
| |||||||
1,099,892 | ||||||||
INDUSTRIAL CONGLOMERATES — 2.87% |
| |||||||
3M Co. | 3,088 | 727,255 | ||||||
General Electric Co. | 25,598 | 361,188 | ||||||
Honeywell International Inc. | 3,493 | 527,827 | ||||||
|
| |||||||
1,616,270 |
Security | Shares | Value | ||||||
INSURANCE — 2.57% | ||||||||
Allstate Corp. (The) | 1,465 | $ | 135,161 | |||||
American International Group Inc. | 960 | 55,046 | ||||||
Arthur J Gallagher & Co. | 1,265 | 87,424 | ||||||
Chubb Ltd. | 1,201 | 170,446 | ||||||
Marsh & McLennan Companies Inc. | 3,378 | 280,442 | ||||||
MetLife Inc. | 1,257 | 58,061 | ||||||
Principal Financial Group Inc. | 1,106 | 68,937 | ||||||
Progressive Corp. (The) | 2,144 | 123,451 | ||||||
Prudential Financial Inc. | 1,768 | 187,974 | ||||||
Travelers Companies Inc. (The) | 1,326 | 184,314 | ||||||
Willis Towers Watson PLC | 620 | 97,898 | ||||||
|
| |||||||
1,449,154 | ||||||||
INTERNET & DIRECT MARKETING RETAIL — 3.45% |
| |||||||
Amazon.com Inc.a | 943 | 1,426,240 | ||||||
Booking Holdings Inc.a | 116 | 235,949 | ||||||
Netflix Inc.a | 964 | 280,890 | ||||||
|
| |||||||
1,943,079 | ||||||||
INTERNET SOFTWARE & SERVICES — 4.91% |
| |||||||
Alphabet Inc. Class Aa | 551 | 608,260 | ||||||
Alphabet Inc. Class Ca | 950 | 1,049,493 | ||||||
Facebook Inc. Class Aa | 5,911 | 1,054,050 | ||||||
Twitter Inc.a | 1,640 | 52,250 | ||||||
|
| |||||||
2,764,053 | ||||||||
IT SERVICES — 4.32% | ||||||||
Accenture PLC Class A | 3,051 | 491,241 | ||||||
Automatic Data Processing Inc. | 1,199 | 138,269 | ||||||
Cognizant Technology Solutions Corp. Class A | 1,483 | 121,636 | ||||||
DXC Technology Co. | 824 | 84,493 | ||||||
International Business Machines Corp. | 2,952 | 460,010 | ||||||
Mastercard Inc. Class A | 1,766 | 310,392 | ||||||
PayPal Holdings Inc.a | 2,468 | 195,984 | ||||||
Visa Inc. Class A | 4,690 | 576,589 | ||||||
Western Union Co. (The) | 2,754 | 54,584 | ||||||
|
| |||||||
2,433,198 | ||||||||
LEISURE PRODUCTS — 0.25% |
| |||||||
Hasbro Inc. | 874 | 83,528 | ||||||
Mattel Inc. | 3,439 | 54,680 | ||||||
|
| |||||||
138,208 | ||||||||
LIFE SCIENCES TOOLS & SERVICES — 1.09% |
| |||||||
Agilent Technologies Inc. | 2,909 | 199,529 | ||||||
Illumina Inc.a | 294 | 67,038 | ||||||
IQVIA Holdings Inc.a | 943 | 92,725 |
SCHEDULES OF INVESTMENTS | 21 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI USA ESG OPTIMIZED ETF
February 28, 2018
Security | Shares | Value | ||||||
Mettler-Toledo International Inc.a | 214 | $ | 131,871 | |||||
Waters Corp.a | 602 | 123,193 | ||||||
|
| |||||||
614,356 | ||||||||
MACHINERY — 2.29% | ||||||||
Caterpillar Inc. | 2,307 | 356,731 | ||||||
Cummins Inc. | 1,648 | 277,144 | ||||||
Deere & Co. | 988 | 158,940 | ||||||
Ingersoll-Rand PLC | 1,694 | 150,427 | ||||||
PACCAR Inc. | 787 | 56,341 | ||||||
Parker-Hannifin Corp. | 644 | 114,935 | ||||||
Xylem Inc./NY | 2,306 | 171,982 | ||||||
|
| |||||||
1,286,500 | ||||||||
MEDIA — 2.72% | ||||||||
Charter Communications Inc. Class Aa | 317 | 108,392 | ||||||
Comcast Corp. Class A | 8,629 | 312,456 | ||||||
Discovery Communications Inc. Class Aa | 2,273 | 55,279 | ||||||
Discovery Communications Inc. Class C NVSa | 2,590 | 59,518 | ||||||
Liberty Broadband Corp. Class Ca | 627 | 55,101 | ||||||
Liberty Global PLC Series C NVSa | 4,310 | 129,429 | ||||||
Scripps Networks Interactive Inc. Class A | 665 | 59,757 | ||||||
Time Warner Inc. | 2,835 | 263,542 | ||||||
Twenty-First Century Fox Inc. Class A | 2,030 | 74,745 | ||||||
Walt Disney Co. (The) | 3,972 | 409,751 | ||||||
|
| |||||||
1,527,970 | ||||||||
METALS & MINING — 0.23% | ||||||||
Newmont Mining Corp. | 1,484 | 56,689 | ||||||
Nucor Corp. | 1,122 | 73,379 | ||||||
|
| |||||||
130,068 | ||||||||
MULTI-UTILITIES — 0.62% | ||||||||
CMS Energy Corp. | 3,127 | 132,741 | ||||||
Consolidated Edison Inc. | 963 | 72,119 | ||||||
Dominion Energy Inc. | 1,022 | 75,700 | ||||||
Sempra Energy | 641 | 69,856 | ||||||
|
| |||||||
350,416 | ||||||||
MULTILINE RETAIL — 0.36% | ||||||||
Nordstrom Inc. | 1,310 | 67,216 | ||||||
Target Corp. | 1,826 | 137,699 | ||||||
|
| |||||||
204,915 | ||||||||
OIL, GAS & CONSUMABLE FUELS — 4.01% |
| |||||||
Andeavor | 616 | 55,206 | ||||||
Apache Corp. | 1,820 | 62,153 |
Security | Shares | Value | ||||||
Cheniere Energy Inc.a | 1,001 | $ | 52,573 | |||||
ConocoPhillips | 4,407 | 239,344 | ||||||
Devon Energy Corp. | 3,009 | 92,286 | ||||||
Exxon Mobil Corp. | 10,723 | 812,160 | ||||||
Hess Corp. | 2,571 | 116,775 | ||||||
Kinder Morgan Inc./DE | 3,438 | 55,696 | ||||||
Marathon Oil Corp. | 4,331 | 62,886 | ||||||
Marathon Petroleum Corp. | 1,277 | 81,805 | ||||||
Noble Energy Inc. | 2,663 | 79,437 | ||||||
Occidental Petroleum Corp. | 2,414 | 158,358 | ||||||
ONEOK Inc. | 1,465 | 82,523 | ||||||
Phillips 66 | 1,708 | 154,352 | ||||||
Valero Energy Corp. | 1,665 | 150,549 | ||||||
|
| |||||||
2,256,103 | ||||||||
PHARMACEUTICALS — 4.26% |
| |||||||
Allergan PLC | 556 | 85,746 | ||||||
Bristol-Myers Squibb Co. | 4,389 | 290,552 | ||||||
Eli Lilly & Co. | 3,400 | 261,868 | ||||||
Jazz Pharmaceuticals PLCa | 398 | 57,630 | ||||||
Johnson & Johnson | 6,429 | 834,999 | ||||||
Merck & Co. Inc. | 7,374 | 399,818 | ||||||
Pfizer Inc. | 6,154 | 223,452 | ||||||
Zoetis Inc. | 3,039 | 245,734 | ||||||
|
| |||||||
2,399,799 | ||||||||
PROFESSIONAL SERVICES — 0.17% | ||||||||
ManpowerGroup Inc. | 814 | 96,426 | ||||||
|
| |||||||
96,426 | ||||||||
REAL ESTATE MANAGEMENT & DEVELOPMENT — 0.34% |
| |||||||
CBRE Group Inc. Class Aa | 2,851 | 133,284 | ||||||
Jones Lang LaSalle Inc. | 360 | 57,820 | ||||||
|
| |||||||
191,104 | ||||||||
ROAD & RAIL — 0.88% | ||||||||
CSX Corp. | 1,709 | 91,808 | ||||||
Norfolk Southern Corp. | 939 | 130,596 | ||||||
Union Pacific Corp. | 2,077 | 270,529 | ||||||
|
| |||||||
492,933 | ||||||||
SEMICONDUCTORS & SEMICONDUCTOR |
| |||||||
Analog Devices Inc. | 1,483 | 133,692 | ||||||
Applied Materials Inc. | 3,895 | 224,313 | ||||||
Broadcom Ltd. | 560 | 138,018 | ||||||
Intel Corp. | 12,632 | 622,631 | ||||||
Lam Research Corp. | 473 | 90,750 | ||||||
Micron Technology Inc.a | 2,163 | 105,576 |
22 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI USA ESG OPTIMIZED ETF
February 28, 2018
Security | Shares | Value | ||||||
NVIDIA Corp. | 1,668 | $ | 403,656 | |||||
QUALCOMM Inc. | 2,477 | 161,005 | ||||||
Skyworks Solutions Inc. | 555 | 60,634 | ||||||
Texas Instruments Inc. | 3,593 | 389,302 | ||||||
|
| |||||||
2,329,577 | ||||||||
SOFTWARE — 6.43% | ||||||||
Adobe Systems Inc.a | 1,388 | 290,272 | ||||||
Autodesk Inc.a | 942 | 110,657 | ||||||
CA Inc. | 2,543 | 89,259 | ||||||
Cadence Design Systems Inc.a | 3,554 | 137,789 | ||||||
Dell Technologies Inc. Class Va | 810 | 60,175 | ||||||
Intuit Inc. | 1,049 | 175,036 | ||||||
Microsoft Corp. | 20,072 | 1,882,151 | ||||||
Oracle Corp. | 8,040 | 407,387 | ||||||
salesforce.com Inc.a | 2,874 | 334,102 | ||||||
Symantec Corp. | 2,716 | 71,404 | ||||||
Workday Inc. Class Aa | 492 | 62,322 | ||||||
|
| |||||||
3,620,554 | ||||||||
SPECIALTY RETAIL — 2.21% | ||||||||
Best Buy Co. Inc. | 2,388 | 172,987 | ||||||
Gap Inc. (The) | 2,811 | 88,771 | ||||||
Home Depot Inc. (The) | 2,943 | 536,421 | ||||||
Lowe’s Companies Inc. | 2,440 | 218,600 | ||||||
Tiffany & Co. | 1,607 | 162,371 | ||||||
Tractor Supply Co. | 966 | 62,722 | ||||||
|
| |||||||
1,241,872 | ||||||||
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS — 4.60% |
| |||||||
Apple Inc. | 12,136 | 2,161,664 | ||||||
Hewlett Packard Enterprise Co. | 8,005 | 148,813 | ||||||
HP Inc. | 6,732 | 157,462 | ||||||
Seagate Technology PLC | 1,150 | 61,410 | ||||||
Xerox Corp. | 1,973 | 59,821 | ||||||
|
| |||||||
2,589,170 | ||||||||
TEXTILES, APPAREL & LUXURY GOODS — 1.02% |
| |||||||
Hanesbrands Inc. | 2,771 | 53,757 | ||||||
NIKE Inc. Class B | 4,070 | 272,812 | ||||||
PVH Corp. | 713 | 102,872 | ||||||
VF Corp. | 1,908 | 142,280 | ||||||
|
| |||||||
571,721 | ||||||||
THRIFTS & MORTGAGE FINANCE — 0.10% |
| |||||||
New York Community Bancorp. Inc. | 4,257 | 57,980 | ||||||
|
| |||||||
57,980 |
Security | Shares | Value | ||||||
TRADING COMPANIES & DISTRIBUTORS — 0.17% |
| |||||||
WW Grainger Inc. | 357 | $ | 93,373 | |||||
|
| |||||||
93,373 | ||||||||
|
| |||||||
TOTAL COMMON STOCKS |
| |||||||
(Cost: $54,387,507) |
| 56,134,581 | ||||||
SHORT-TERM INVESTMENTS — 0.90% |
| |||||||
MONEY MARKET FUNDS — 0.90% |
| |||||||
BlackRock Cash Funds: Institutional, |
| |||||||
1.58%c,d,e | 350,102 | 350,137 | ||||||
BlackRock Cash Funds: Treasury, |
| |||||||
1.32%c,d | 154,678 | 154,678 | ||||||
|
| |||||||
504,815 | ||||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||||
(Cost: $504,817) |
| 504,815 | ||||||
|
| |||||||
TOTAL INVESTMENTS |
| |||||||
(Cost: $54,892,324) | 56,639,396 | |||||||
Other Assets, Less Liabilities — (0.64)% |
| (358,008 | ) | |||||
|
| |||||||
NET ASSETS — 100.00% |
| $ | 56,281,388 | |||||
|
|
NVS — Non-Voting Shares
a | Non-income producing security. |
b | All or a portion of this security is on loan. |
c | Affiliate of the Fund. |
d | Annualized 7-day yield as of period end. |
e | All or a portion of this security was purchased with cash collateral received from loaned securities. |
SCHEDULES OF INVESTMENTS | 23 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI USA ESG OPTIMIZED ETF
February 28, 2018
Affiliates (Note 2)
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2018, for purposes of Section 2(a)(3) of the 1940 Act were as follows:
Affiliated issuer | Shares held at 08/31/17 | Shares purchased | Shares sold | Shares held at 02/28/18 | Value at 02/28/18 | Income | Net realized gain (loss) a | Change in unrealized appreciation (depreciation) | ||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, | 5,359 | 344,743 | b | — | 350,102 | $ | 350,137 | $ | 167 | c | $ | (12 | ) | $ | (2 | ) | ||||||||||||||||
BlackRock Cash Funds: Treasury, | 28,983 | 125,695 | b | — | 154,678 | 154,678 | 238 | — | — | |||||||||||||||||||||||
BlackRock Inc. | 166 | 620 | (155 | ) | 631 | 346,690 | 563 | 7,596 | 25,491 | |||||||||||||||||||||||
PNC Financial Services Group Inc. (The) | 453 | 1,535 | (308 | ) | 1,680 | 264,869 | 821 | 5,547 | 16,852 | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 1,116,374 | $ | 1,789 | $ | 13,131 | $ | 42,341 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
a | Includes realized capital gain distributions from an affiliated fund, if any. |
b | Net of purchases and sales. |
c | Includes the Fund’s portion of securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. |
Fair Value Measurements
Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common stocks | $ | 56,134,581 | $ | — | $ | — | $ | 56,134,581 | ||||||||
Money market funds | 504,815 | — | — | 504,815 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 56,639,396 | $ | — | $ | — | $ | 56,639,396 | ||||||||
|
|
|
|
|
|
|
| |||||||||
See notes to financial statements.
24 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Assets and Liabilities (Unaudited)
iSHARES® TRUST
February 28, 2018
iShares MSCI EAFE ESG Optimized ETF | iShares MSCI Global Impact ETF | iShares MSCI USA ESG Optimized ETF | ||||||||||
ASSETS | ||||||||||||
Investments in securities, at cost: | ||||||||||||
Unaffiliated | $ | 174,273,297 | $ | 26,522,467 | $ | 53,823,009 | ||||||
Affiliated (Note 2) | 52,298 | 220,778 | 1,069,315 | |||||||||
|
|
|
|
|
| |||||||
Total cost of investments in securities | $ | 174,325,595 | $ | 26,743,245 | $ | 54,892,324 | ||||||
|
|
|
|
|
| |||||||
Investments in securities, at fair value (including securities on loana) (Note 1): | ||||||||||||
Unaffiliated | $ | 196,147,729 | $ | 29,347,858 | $ | 55,523,022 | ||||||
Affiliated (Note 2) | 52,298 | 220,773 | 1,116,374 | |||||||||
Foreign currency, at valueb | 190,500 | 27,291 | — | |||||||||
Receivables: | ||||||||||||
Investment securities sold | 5,895,357 | 3,456,092 | 2,446,647 | |||||||||
Due from custodian (Note 4) | 52,124 | 1,682,570 | — | |||||||||
Dividends and interest | 307,984 | 34,501 | 84,122 | |||||||||
Capital shares sold | 135,032 | 126,308 | 64,058 | |||||||||
Tax reclaims | 97,720 | 13,933 | — | |||||||||
|
|
|
|
|
| |||||||
Total Assets | 202,878,744 | 34,909,326 | 59,234,223 | |||||||||
|
|
|
|
|
| |||||||
LIABILITIES | ||||||||||||
Payables: | ||||||||||||
Investment securities purchased | 5,953,727 | 5,155,294 | 2,597,415 | |||||||||
Collateral for securities on loan (Note 1) | — | 143,072 | 350,155 | |||||||||
Capital shares redeemed | — | 73,173 | — | |||||||||
Investment advisory fees (Note 2) | 26,135 | 11,173 | 5,265 | |||||||||
|
|
|
|
|
| |||||||
Total Liabilities | 5,979,862 | 5,382,712 | 2,952,835 | |||||||||
|
|
|
|
|
| |||||||
NET ASSETS | $ | 196,898,882 | $ | 29,526,614 | $ | 56,281,388 | ||||||
|
|
|
|
|
| |||||||
Net assets consist of: | ||||||||||||
Paid-in capital | $ | 174,090,352 | $ | 26,130,759 | $ | 54,090,521 | ||||||
Undistributed (distributions in excess of) net investment income | 66,638 | (102,202 | ) | 116,897 | ||||||||
Undistributed net realized gain | 861,680 | 671,041 | 326,898 | |||||||||
Net unrealized appreciation | 21,880,212 | 2,827,016 | 1,747,072 | |||||||||
|
|
|
|
|
| |||||||
NET ASSETS | $ | 196,898,882 | $ | 29,526,614 | $ | 56,281,388 | ||||||
|
|
|
|
|
| |||||||
Shares outstandingc | 2,900,000 | 500,000 | 950,000 | |||||||||
|
|
|
|
|
| |||||||
Net asset value per share | $ | 67.90 | $ | 59.05 | $ | 59.24 | ||||||
|
|
|
|
|
|
a | Securities on loan with values of $ —, $143,344 and $338,057, respectively. See Note 1. |
b | Cost of foreign currency: $190,380, $27,127 and $ —, respectively. |
c | No par value, unlimited number of shares authorized. |
See notes to financial statements.
FINANCIAL STATEMENTS | 25 |
Table of Contents
Statements of Operations (Unaudited)
iSHARES® TRUST
Six months ended February 28, 2018
iShares MSCI EAFE ESG Optimized ETF | iShares MSCI Global Impact ETF | iShares MSCI USA ESG Optimized ETF | ||||||||||
NET INVESTMENT INCOME | ||||||||||||
Dividends — unaffiliateda | $ | 1,189,721 | $ | 183,322 | $ | 209,995 | ||||||
Dividends — affiliated (Note 2) | 421 | 186 | 1,622 | |||||||||
Securities lending income — affiliated — net (Note 2) | 1,417 | 2,008 | 167 | |||||||||
|
|
|
|
|
| |||||||
Total investment income | 1,191,559 | 185,516 | 211,784 | |||||||||
|
|
|
|
|
| |||||||
EXPENSES | ||||||||||||
Investment advisory fees (Note 2) | 136,411 | 65,862 | 15,185 | |||||||||
Proxy fees | 14 | 2 | 1 | |||||||||
Commitment fees (Note 7) | — | 2 | — | |||||||||
|
|
|
|
|
| |||||||
Total expenses | 136,425 | 65,866 | 15,186 | |||||||||
|
|
|
|
|
| |||||||
Net investment income | 1,055,134 | 119,650 | 196,598 | |||||||||
|
|
|
|
|
| |||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||
Net realized gain (loss) from: | ||||||||||||
Investments — unaffiliated | 24,955 | (430,373 | ) | (205,176 | ) | |||||||
Investments — affiliated (Note 2) | (40 | ) | (180 | ) | (789 | ) | ||||||
In-kind redemptions — unaffiliated | 1,060,788 | 1,459,357 | 571,710 | |||||||||
In-kind redemptions — affiliated (Note 2) | — | — | 13,920 | |||||||||
Foreign currency transactions | 15,055 | (1,817 | ) | — | ||||||||
|
|
|
|
|
| |||||||
Net realized gain | 1,100,758 | 1,026,987 | 379,665 | |||||||||
|
|
|
|
|
| |||||||
Net change in unrealized appreciation/depreciation on: | ||||||||||||
Investments — unaffiliated | 6,463,356 | 457,558 | 1,011,540 | |||||||||
Investments — affiliated (Note 2) | — | (13 | ) | 42,341 | ||||||||
Translation of assets and liabilities in foreign currencies | (456 | ) | 2,448 | — | ||||||||
|
|
|
|
|
| |||||||
Net change in unrealized appreciation/depreciation | 6,462,900 | 459,993 | 1,053,881 | |||||||||
|
|
|
|
|
| |||||||
Net realized and unrealized gain | 7,563,658 | 1,486,980 | 1,433,546 | |||||||||
|
|
|
|
|
| |||||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 8,618,792 | $ | 1,606,630 | $ | 1,630,144 | ||||||
|
|
|
|
|
|
a | Net of foreign withholding tax of $81,669, $4,357 and $14, respectively. |
See notes to financial statements.
26 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Changes in Net Assets
iSHARES® TRUST
iShares MSCI EAFE ESG Optimized ETF | iShares MSCI Global Impact ETF | |||||||||||||||
Six months (Unaudited) | Year ended August 31, 2017 | Six months February 28, 2018 (Unaudited) | Year ended August 31, 2017 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income | $ | 1,055,134 | $ | 2,643,941 | $ | 119,650 | $ | 405,710 | ||||||||
Net realized gain | 1,100,758 | 1,480,805 | 1,026,987 | 569,863 | ||||||||||||
Net change in unrealized appreciation/depreciation | 6,462,900 | 14,933,122 | 459,993 | 2,225,605 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase in net assets resulting from operations | 8,618,792 | 19,057,868 | 1,606,630 | 3,201,178 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
From net investment income | (1,471,664 | ) | (2,217,000 | ) | (331,246 | ) | (449,781 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions to shareholders | (1,471,664 | ) | (2,217,000 | ) | (331,246 | ) | (449,781 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Proceeds from shares sold | 74,396,348 | 112,301,040 | 8,961,680 | 13,057,788 | ||||||||||||
Cost of shares redeemed | (6,767,917 | ) | (12,603,048 | ) | (5,874,507 | ) | (5,529,043 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase in net assets from capital share transactions | 67,628,431 | 99,697,992 | 3,087,173 | 7,528,745 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
INCREASE IN NET ASSETS | 74,775,559 | 116,538,860 | 4,362,557 | 10,280,142 | ||||||||||||
NET ASSETS | ||||||||||||||||
Beginning of period | 122,123,323 | 5,584,463 | 25,164,057 | 14,883,915 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 196,898,882 | $ | 122,123,323 | $ | 29,526,614 | $ | 25,164,057 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed (distributions in excess of) net investment income included in net assets at end of period | $ | 66,638 | $ | 483,168 | $ | (102,202 | ) | $ | 109,394 | |||||||
|
|
|
|
|
|
|
| |||||||||
SHARES ISSUED AND REDEEMED | ||||||||||||||||
Shares sold | 1,100,000 | 2,000,000 | 150,000 | 250,000 | ||||||||||||
Shares redeemed | (100,000 | ) | (200,000 | ) | (100,000 | ) | (100,000 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase in shares outstanding | 1,000,000 | 1,800,000 | 50,000 | 150,000 | ||||||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
FINANCIAL STATEMENTS | 27 |
Table of Contents
Statements of Changes in Net Assets (Continued)
iSHARES® TRUST
iShares MSCI USA ESG Optimized ETF | ||||||||
Six months ended February 28, 2018 (Unaudited) | Period from to | |||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||
OPERATIONS: | ||||||||
Net investment income | $ | 196,598 | $ | 85,063 | ||||
Net realized gain | 379,665 | 205,504 | ||||||
Net change in unrealized appreciation/depreciation | 1,053,881 | 693,191 | ||||||
|
|
|
| |||||
Net increase in net assets resulting from operations | 1,630,144 | 983,758 | ||||||
|
|
|
| |||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||
From net investment income | (108,202 | ) | (56,562 | ) | ||||
From net realized gain | (37,180 | ) | — | |||||
|
|
|
| |||||
Total distributions to shareholders | (145,382 | ) | (56,562 | ) | ||||
|
|
|
| |||||
CAPITAL SHARE TRANSACTIONS: | ||||||||
Proceeds from shares sold | 46,864,196 | 12,509,704 | ||||||
Cost of shares redeemed | (2,897,088 | ) | (2,607,382 | ) | ||||
|
|
|
| |||||
Net increase in net assets from capital share transactions | 43,967,108 | 9,902,322 | ||||||
|
|
|
| |||||
INCREASE IN NET ASSETS | 45,451,870 | 10,829,518 | ||||||
NET ASSETS | ||||||||
Beginning of period | 10,829,518 | — | ||||||
|
|
|
| |||||
End of period | $ | 56,281,388 | $ | 10,829,518 | ||||
|
|
|
| |||||
Undistributed net investment income included in net assets at end of period | $ | 116,897 | $ | 28,501 | ||||
|
|
|
| |||||
SHARES ISSUED AND REDEEMED | ||||||||
Shares sold | 800,000 | 250,000 | ||||||
Shares redeemed | (50,000 | ) | (50,000 | ) | ||||
|
|
|
| |||||
Net increase in shares outstanding | 750,000 | 200,000 | ||||||
|
|
|
|
a | Commencement of operations. |
See notes to financial statements.
28 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
iSHARES® TRUST
(For a share outstanding throughout each period)
iShares MSCI EAFE ESG Optimized ETF
Six months ended Feb. 28, 2018 (Unaudited) | Year ended Aug. 31, 2017 | Period from to | ||||||||||
Net asset value, beginning of period | $ | 64.28 | $ | 55.84 | $ | 50.87 | ||||||
|
|
|
|
|
| |||||||
Income from investment operations: | ||||||||||||
Net investment incomeb | 0.52 | 1.87 | 0.16 | |||||||||
Net realized and unrealized gainc | 3.84 | 7.68 | 4.81 | |||||||||
|
|
|
|
|
| |||||||
Total from investment operations | 4.36 | 9.55 | 4.97 | |||||||||
|
|
|
|
|
| |||||||
Less distributions from: | ||||||||||||
Net investment income | (0.74 | ) | (1.11 | ) | — | |||||||
|
|
|
|
|
| |||||||
Total distributions | (0.74 | ) | (1.11 | ) | — | |||||||
|
|
|
|
|
| |||||||
Net asset value, end of period | $ | 67.90 | $ | 64.28 | $ | 55.84 | ||||||
|
|
|
|
|
| |||||||
Total return | 6.79 | %d | 17.16 | % | 9.79 | %d | ||||||
|
|
|
|
|
| |||||||
Ratios/Supplemental data: | ||||||||||||
Net assets, end of period (000s) | $ | 196,899 | $ | 122,123 | $ | 5,584 | ||||||
Ratio of expenses to average net assetse | 0.20 | % | 0.38 | % | 0.40 | % | ||||||
Ratio of net investment income to average net assetse | 1.55 | % | 3.10 | % | 1.67 | % | ||||||
Portfolio turnover ratef | 8 | %d | 9 | % | 5 | %d |
a | Commencement of operations. |
b | Based on average shares outstanding throughout each period. |
c | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
d | Not annualized. |
e | Annualized for periods of less than one year. |
f | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 29 |
Table of Contents
Financial Highlights (Continued)
iSHARES® TRUST
(For a share outstanding throughout each period)
iShares MSCI Global Impact ETF
Six months ended Feb. 28, 2018 (Unaudited) | Year ended Aug. 31, 2017 | Period from to | ||||||||||
Net asset value, beginning of period | $ | 55.92 | $ | 49.61 | $ | 48.70 | ||||||
|
|
|
|
|
| |||||||
Income from investment operations: | ||||||||||||
Net investment incomeb | 0.26 | 1.05 | 0.49 | |||||||||
Net realized and unrealized gainc | 3.61 | 6.44 | 0.65 | |||||||||
|
|
|
|
|
| |||||||
Total from investment operations | 3.87 | 7.49 | 1.14 | |||||||||
|
|
|
|
|
| |||||||
Less distributions from: | ||||||||||||
Net investment income | (0.74 | ) | (1.18 | ) | (0.23 | ) | ||||||
|
|
|
|
|
| |||||||
Total distributions | (0.74 | ) | (1.18 | ) | (0.23 | ) | ||||||
|
|
|
|
|
| |||||||
Net asset value, end of period | $ | 59.05 | $ | 55.92 | $ | 49.61 | ||||||
|
|
|
|
|
| |||||||
Total return | 6.99 | %d | 15.27 | % | 2.38 | %d | ||||||
|
|
|
|
|
| |||||||
Ratios/Supplemental data: | ||||||||||||
Net assets, end of period (000s) | $ | 29,527 | $ | 25,164 | $ | 14,884 | ||||||
Ratio of expenses to average net assetse | 0.49 | % | 0.49 | % | 0.49 | % | ||||||
Ratio of net investment income to average net assetse | 0.89 | % | 2.05 | % | 2.76 | % | ||||||
Portfolio turnover ratef | 22 | %d | 32 | % | 28 | %d |
a | Commencement of operations. |
b | Based on average shares outstanding throughout each period. |
c | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
d | Not annualized. |
e | Annualized for periods of less than one year. |
f | Portfolio turnover rates exclude portfolio securities received or delivered in Creation Units but include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units partially for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the six months ended February 28, 2018, the year ended August 31, 2017 and the period ended August 31, 2016 were 22%, 32% and 28%, respectively. See Note 4. |
See notes to financial statements.
30 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Financial Highlights (Continued)
iSHARES® TRUST
(For a share outstanding throughout each period)
iShares MSCI USA ESG Optimized ETF
Six months ended Feb. 28, 2018 (Unaudited) | Period from to | |||||||
Net asset value, beginning of period | $ | 54.15 | $ | 47.79 | ||||
|
|
|
| |||||
Income from investment operations: | ||||||||
Net investment incomeb | 0.56 | 0.71 | ||||||
Net realized and unrealized gainc | 5.02 | 6.22 | ||||||
|
|
|
| |||||
Total from investment operations | 5.58 | 6.93 | ||||||
|
|
|
| |||||
Less distributions from: | ||||||||
Net investment income | (0.39 | ) | (0.57 | ) | ||||
Net realized gain | (0.10 | ) | — | |||||
|
|
|
| |||||
Total distributions | (0.49 | ) | (0.57 | ) | ||||
|
|
|
| |||||
Net asset value, end of period | $ | 59.24 | $ | 54.15 | ||||
|
|
|
| |||||
Total return | 10.36 | %d | 14.55 | %d | ||||
|
|
|
| |||||
Ratios/Supplemental data: | ||||||||
Net assets, end of period (000s) | $ | 56,281 | $ | 10,830 | ||||
Ratio of expenses to average net assetse | 0.15 | % | 0.27 | % | ||||
Ratio of net investment income to average net assetse | 1.94 | % | 1.85 | % | ||||
Portfolio turnover ratef | 16 | %d | 22 | %d |
a | Commencement of operations. |
b | Based on average shares outstanding throughout each period. |
c | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
d | Not annualized. |
e | Annualized for periods of less than one year. |
f | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 31 |
Table of Contents
Notes to Financial Statements (Unaudited)
iSHARES® TRUST
iShares Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust was established as a Delaware statutory trust pursuant to an Agreement and Declaration of Trust dated December 16, 1999.
These financial statements relate only to the following funds (each, a “Fund,” and collectively, the “Funds”):
iShares ETF | Diversification Classification | |
MSCI EAFE ESG Optimized | Non-diversified | |
MSCI Global Impact | Non-diversified | |
MSCI USA ESG Optimized | Non-diversified |
The investment objective of each Fund is to seek investment results that correspond generally to the price and yield performance, before fees and expenses, of its underlying index. The investment adviser uses a “passive” or index approach to try to achieve each Fund’s investment objective.
Pursuant to the Trust’s organizational documents, the Funds’ officers and trustees are indemnified against certain liabilities that may arise out of the performance of their duties to the Funds. Additionally, in the normal course of business, the Funds enter into contracts with service providers that contain general indemnification clauses. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred.
1. | SIGNIFICANT ACCOUNTING POLICIES |
The following significant accounting policies are consistently followed by each Fund in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies.
SECURITY VALUATION
Each Fund’s investments are valued at fair value each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date should the reporting period end on a day that the Fund’s listing exchange is not open. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) provides oversight of the valuation of investments for the Funds. The investments of each Fund are valued pursuant to policies and procedures developed by the Global Valuation Committee and approved by the Board of Trustees of the Trust (the “Board”).
• | Equity investments traded on a recognized securities exchange are valued at that day’s last reported trade price or the official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price. |
• | Open-end U.S. mutual funds (including money market funds) are valued at that day’s published net asset value (“NAV”). |
32 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
In the event that application of these methods of valuation results in a price for an investment which is deemed not to be representative of the fair value of such investment or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board. The fair valuation approaches that may be utilized by the Global Valuation Committee to determine fair value include market approach, income approach and the cost approach. The valuation techniques used under these approaches take into consideration inputs that include but are not limited to (i) attributes specific to the investment; (ii) the principal market for the investment; (iii) the customary participants in the principal market for the investment; (iv) data assumptions by market participants for the investment, if reasonably available; (v) quoted prices for similar investments in active markets; and (vi) other inputs, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates. Valuations based on such inputs are reported to the Board on a quarterly basis.
The Global Valuation Committee employs various methods for calibrating valuation approaches for investments where an active market does not exist, including regular due diligence of the Trust’s pricing vendors, a regular review of key inputs and assumptions, transactional back-testing or disposition analysis to compare unrealized gains and losses to realized gains and losses, reviews of missing or stale prices, reviews of large movements in market values, and reviews of market related activity.
Fair value pricing could result in a difference between the prices used to calculate a Fund’s NAV and the prices used by the Fund’s underlying index, which in turn could result in a difference between the Fund’s performance and the performance of the Fund’s underlying index.
Various inputs are used in determining the fair value of financial instruments. Inputs may be based on independent market data (“observable inputs”) or they may be internally developed (“unobservable inputs”). These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:
• | Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities; |
• | Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability (such as exchange rates, financing terms, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and |
• | Level 3 — Unobservable inputs for the asset or liability based on the best information available in the circumstances, to the extent observable inputs are not available, including the Global Valuation Committee’s assumptions used in determining the fair value of investments. |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgement exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value hierarchy for each Fund’s investments is included in its schedule of investments.
Changes in valuation techniques may result in transfers in or out of an assigned level within the fair value hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of values determined for financial instruments are based on the pricing transparency of the financial instruments and are not necessarily an indication of the risks associated with investing in those securities.
NOTESTO FINANCIAL STATEMENTS | 33 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
SECURITY TRANSACTIONS AND INCOME RECOGNITION
Security transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recognized on the ex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities as of February 28, 2018 are reflected in tax reclaims receivable. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be re-designated as a return of capital or capital gain. Non-cash dividends, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Distributions received by the Funds may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. Interest income is accrued daily.
FOREIGN CURRENCY TRANSLATION
The accounting records of the Funds are maintained in U.S. dollars. Foreign currencies, as well as investment securities and other assets and liabilities denominated in foreign currencies, are translated into U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of securities, income receipts and expense payments are translated into U.S. dollars on the respective dates of such transactions.
Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of securities. Such fluctuations are reflected by the Funds as a component of realized and unrealized gains and losses from investments for financial reporting purposes. Each Fund reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes.
FOREIGN TAXES
Certain Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Funds invest. These foreign taxes, if any, are paid by the Funds and are reflected in their statements of operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of February 28, 2018, if any, are disclosed in the Funds’ statements of assets and liabilities.
DISTRIBUTIONS TO SHAREHOLDERS
Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds.
LOANS OF PORTFOLIO SECURITIES
Each Fund may lend its investment securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by an approved bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the
34 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
securities on loan. The market value of the loaned securities is determined at the close of each business day of the Funds. Any additional required collateral is delivered to the Funds and any excess collateral is returned by the Funds on the next business day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.
Cash received as collateral for securities on loan may be reinvested in certain short-term instruments either directly on behalf of a fund or through one or more joint accounts or money market funds, including those managed by BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, or its affiliates. As of February 28, 2018, any securities on loan were collateralized by cash and/or U.S. government obligations. Cash collateral received was invested in money market funds managed by BFA and is disclosed in the schedules of investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan for each Fund are also disclosed in its schedule of investments. The total value of any securities on loan as of February 28, 2018 and the total value of the related cash collateral are disclosed in the statements of assets and liabilities. Income earned by the Funds from securities lending is disclosed in the statements of operations.
The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Funds benefit from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of securities loaned if the collateral received does not cover the value of the securities loaned in the event of borrower default. Each Fund could incur a loss if the value of an investment purchased with cash collateral falls below the value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received.
Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (“MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, a Fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. The value of the collateral is typically greater than that of the market value of the securities loaned, leaving the lender with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, the borrower can resell or re-pledge the loaned securities, and a Fund can reinvest cash collateral, or, upon an event of default, resell or re-pledge the collateral.
The following table is a summary of securities lending agreements which are subject to offset under an MSLA as of February 28, 2018:
iShares ETF and Counterparty | Market Value of Securities on Loan | Cash Collateral Received a | Net Amount b | |||||||||
MSCI Global Impact | ||||||||||||
JPMorgan Securities LLC | $ | 143,344 | $ | 142,981 | $ | (363 | ) | |||||
|
|
|
|
|
| |||||||
MSCI USA ESG Optimized | ||||||||||||
Credit Suisse Securities (USA) LLC | $ | 290,318 | $ | 290,318 | $ | — | ||||||
JPMorgan Securities LLC | 34,649 | 34,649 | — | |||||||||
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending) | 13,090 | 13,090 | — | |||||||||
|
|
|
|
|
| |||||||
$ | 338,057 | $ | 338,057 | $ | — | |||||||
|
|
|
|
|
| |||||||
a | Collateral received in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Fund’s statement of assets and liabilities. |
b | Additional collateral is delivered to the Funds on the next business day in accordance with the MSLA. The net amount would be subject to the borrower default indemnity in the event of default by a counterparty. |
NOTESTO FINANCIAL STATEMENTS | 35 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
2. | INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES |
Pursuant to an Investment Advisory Agreement with the Trust, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent trustees).
For its investment advisory services to each Fund, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Fund, based on the average daily net assets of each Fund as follows:
iShares ETF | Investment Advisory Fee | |||
MSCI EAFE ESG Optimized | 0.20 | % | ||
MSCI Global Impact | 0.49 | |||
MSCI USA ESG Optimized | 0.15 |
The U.S. Securities and Exchange Commission has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan in a money market fund managed by BFA, however, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04% (the “collateral investment fees”). Securities lending income is equal to the total of income earned from the reinvestment of cash collateral (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. The Funds retain a portion of securities lending income and remit the remaining portion to BTC as compensation for its services as securities lending agent.
Pursuant to a securities lending agreement, the iShares MSCI USA ESG Optimized ETF (the “Group 1 Fund”), retains 71.5% of securities lending income and the amount retained can never be less than 65% of the total of securities lending income plus the collateral investment fees.
Pursuant to a securities lending agreement, the iShares MSCI EAFE ESG Optimized and iShares MSCI Global Impact ETFs (the “Group 2 Funds”), retain 80% of securities lending income and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in a given calendar year exceeds the aggregate securities lending income generated across the iShares ETF Complex in the calendar year 2013, the Group 1 Fund, pursuant to a securities lending agreement, will retain for the remainder of that calendar year 75% of securities lending income and the amount retained can never be less than 65% of the total of securities lending income plus the collateral investment fees. Each Group 2 Fund will receive for the remainder of that calendar year 85% of securities lending income and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
36 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
For the six months ended February 28, 2018, the total of securities lending agent services and collateral investment fees paid were as follows:
iShares ETF | Fees Paid to BTC | |||
MSCI EAFE ESG Optimized | $ | 286 | ||
MSCI Global Impact | 545 | |||
MSCI USA ESG Optimized | 75 |
BlackRock Investments, LLC, an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.
Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is included in “Dividends – affiliated” in the statements of operations.
It is possible that, from time to time, BlackRock and/or funds managed by BFA or an affiliate (collectively, “Affiliates”) may purchase and hold shares of a Fund. Affiliates reserve the right, subject to compliance with applicable law, to sell into the market or redeem in Creation Units through an authorized participant at any time some or all of the shares of a Fund acquired for their own accounts. A large sale or redemption of shares of a Fund by Affiliates could significantly reduce the asset size of the Fund, which might have an adverse effect on the Fund. As of February 28, 2018, the number of affiliated accounts that individually that individually represent more than 10% ownership of a Fund’s total shares outstanding and the aggregate percentage of net assets represented by such holdings were as follows:
iShares ETF | Number of Affiliated | Aggregate Ownership | ||||||
MSCI EAFE ESG Optimized | 1 | 14 | % |
The PNC Financial Services Group, Inc. is the largest stockholder of BlackRock and is considered to be an affiliate of the Funds for 1940 Act purposes.
Certain trustees and officers of the Trust are also officers of BTC and/or BFA.
3. | INVESTMENT PORTFOLIO TRANSACTIONS |
Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the six months ended February 28, 2018 were as follows:
iShares ETF | Purchases | Sales | ||||||
MSCI EAFE ESG Optimized | $ | 18,447,351 | $ | 11,471,265 | ||||
MSCI Global Impact | 9,179,656 | 6,076,207 | ||||||
MSCI USA ESG Optimized | 3,774,806 | 3,676,249 |
NOTESTO FINANCIAL STATEMENTS | 37 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
In-kind transactions (see Note 4) for the six months ended February 28, 2018 were as follows:
iShares ETF | In-kind Purchases | In-kind Sales | ||||||
MSCI EAFE ESG Optimized | $ | 65,978,800 | $ | 6,023,664 | ||||
MSCI Global Impact | 5,490,607 | 5,759,656 | ||||||
MSCI USA ESG Optimized | 46,693,645 | 2,893,543 |
4. | CAPITAL SHARE TRANSACTIONS |
Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable. Transactions in capital shares for each Fund are disclosed in detail in the statements of changes in net assets.
The consideration for the purchase of Creation Units of a fund in the Trust generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Trust may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to State Street Bank and Trust Company, the Trust’s administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in “Proceeds from shares sold” in the statements of changes in net assets.
From time to time, settlement of securities related to in-kind contributions or in-kind redemptions may be delayed. In such cases, securities related to in-kind contributions are reflected as “Due from custodian” and securities related to in-kind redemptions are reflected as “Securities related to in-kind transactions” in the statements of assets and liabilities.
5. | PRINCIPAL RISKS |
In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Each Fund’s prospectus provides details of the risks to which the Fund is subject.
BFA uses a “passive” or index approach to try to achieve each Fund’s investment objective following the securities included in its underlying index during upturns as well as downturns. BFA does not take steps to reduce market exposure or to lessen the effects of a declining market. Divergence from the underlying index and the composition of the portfolio is monitored by BFA.
MARKET RISK
Market risk arises mainly from uncertainty about future values of financial instruments influenced by price, currency and interest rate movements. It represents the potential loss a fund may suffer through holding market positions in the face of market movements. A fund is exposed to market risk by its investment in equity, fixed income and/or financial derivative instruments or by its investment in underlying funds. The fair value of securities held by a fund may decline due to general market conditions,
38 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. The extent of a fund’s exposure to market risk is the market value of the investments held as shown in the fund’s schedule of investments.
A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its schedule of investments.
Investing in the securities of non-U.S. issuers involves certain considerations and risks not typically associated with securities of U.S. issuers. Such risks include, but are not limited to: differences in accounting, auditing and financial reporting standards; more substantial governmental involvement in the economy; higher inflation rates, greater social, economic and political uncertainties; possible nationalization or expropriation of assets; less availability of public information about issuers; imposition of withholding or other taxes; higher transaction and custody costs and delays in settlement procedures; and lower level of regulation of the securities markets and issuers. Non-U.S. securities may be less liquid, more difficult to value, and have greater price volatility due to exchange rate fluctuations. These and other risks are heightened for investments in issuers from countries with less developed capital markets.
The economies and markets of European countries are often closely connected and interdependent, and events in one country in Europe can have an adverse impact on other European countries. The European financial markets have experienced volatility and adverse trends in recent years due to concerns about economic downturns or rising government debt levels in several European countries. These events have adversely affected the exchange rate of the euro and may continue to significantly affect European countries. The occurrence of terrorist incidents throughout Europe also could impact financial markets. In addition, the United Kingdom has voted to withdraw from the European Union. The referendum may introduce significant new uncertainties and instability in the financial markets as the United Kingdom negotiates its exit from the European Union.
CREDIT RISK
Credit risk is the risk that an issuer or guarantor of debt instruments or the counterparty to a financial transaction, including derivatives contracts, repurchase agreements or loans of portfolio securities, is unable or unwilling to make timely interest and/or principal payments or to otherwise honor its obligations. BFA and its affiliates manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose a fund to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of a fund’s exposure to credit and counterparty risks with respect to those financial assets is approximated by their value recorded in its statement of assets and liabilities.
6. | INCOME TAX INFORMATION |
Each Fund is treated as an entity separate from the Trust’s other funds for federal income tax purposes. It is the policy of each Fund to qualify as a regulated investment company by complying with the provisions applicable to regulated investment companies, as defined under Subchapter M of the Internal Revenue Code of 1986, as amended, and to annually distribute substantially all of its ordinary income and any net capital gains (taking into account any capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income and excise taxes. Accordingly, no provision for federal income taxes is required.
For purposes of U.S. GAAP, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the
NOTESTO FINANCIAL STATEMENTS | 39 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or NAV per share.
The tax character of current year distributions will be determined at the end of the current fiscal year.
As of August 31, 2017, the Funds’ fiscal year-end, the following Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:
iShares ETF | Non- Expiring | |||
MSCI EAFE ESG Optimized | $ | 232,713 | ||
MSCI Global Impact | 212,446 |
The Funds may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” The Funds may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.
As of February 28, 2018, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives) for U.S. federal income tax purposes were as follows:
iShares ETF | Tax Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||
MSCI EAFE ESG Optimized | $ | 174,585,484 | $ | 22,961,471 | $ | (1,346,928 | ) | $ | 21,614,543 | |||||||
MSCI Global Impact | 27,017,274 | 3,440,660 | (889,303 | ) | 2,551,357 | |||||||||||
MSCI USA ESG Optimized | 54,945,090 | 1,747,073 | (52,767 | ) | 1,694,306 |
Management has analyzed tax laws and regulations and their application to the Funds as of February 28, 2018, inclusive of the open tax return years, and does not believe there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.
7. | LINE OF CREDIT |
The iShares MSCI Global Impact ETF, along with certain other iShares funds, is a party to a $275 million credit agreement with State Street Bank and Trust Company, which expires on October 24, 2018. The Fund became a party to the credit agreement effective October 25, 2017. The line of credit may be used for temporary or emergency purposes, including redemptions, settlement of trades and rebalancing of portfolio holdings. The credit agreement has the following terms: a commitment fee of 0.20% per annum on the unused portion of the credit agreement and interest at a rate equal to the higher of (a) the one-month LIBOR (not less than zero) plus 1.00% per annum or (b) the U.S. Federal Funds rate (not less than zero) plus 1.00% per annum on amounts borrowed. The commitment fee is allocated to each fund participating in the credit agreement based on each fund’s pro-rata share of the aggregate average daily value of assets invested in local securities of certain foreign markets.
The Fund did not borrow under the credit agreement during the six months ended February 28, 2018.
40 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES® TRUST
8. | LEGAL PROCEEDINGS |
On June 16, 2016, investors (the “Plaintiffs”) in certain iShares funds (iShares Core S&P Small-Cap ETF, iShares Russell 1000 Growth ETF, iShares Core S&P 500 ETF, iShares Russell Mid-Cap Growth ETF, iShares Russell Mid-Cap ETF, iShares Russell Mid-Cap Value ETF, iShares Select Dividend ETF, iShares Morningstar Mid-Cap ETF, iShares Morningstar Large-Cap ETF, iShares U.S. Aerospace & Defense ETF and iShares U.S. Preferred Stock ETF) filed a putative class action lawsuit against iShares Trust, BlackRock, Inc. and certain of its advisory affiliates, and certain directors/trustees and officers of the Funds (collectively, “Defendants”) in California State Court. The lawsuit alleges the Defendants violated federal securities laws by failing to adequately disclose in the prospectuses issued by the funds noted above the risks of using stop-loss orders in the event of a ‘flash crash’, such as the one that occurred on May 6, 2010. On September 18, 2017, the court issued a Statement of Decision holding that the Plaintiffs lack standing to assert their claims. On October 11, 2017, the court entered final judgment dismissing all of the Plaintiffs’ claims with prejudice. Plaintiffs have appealed the court’s decision.
9. | SUBSEQUENT EVENTS |
Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or disclosure in the financial statements, except as noted below.
Effective on or around May 23, 2018, the iShares MSCI EAFE ESG Optimized ETF (“ESGD”) and iShares MSCI USA ESG Optimized ETF (“ESGU”) will track new underlying indexes. ESGD will track the MSCI EAFE Extended ESG Focus Index and will cease to track the MSCI EAFE ESG Focus Index. ESGU will track the MSCI USA Extended ESG Focus Index and will cease to track the MSCI USA ESG Focus Index.
NOTESTO FINANCIAL STATEMENTS | 41 |
Table of Contents
Supplemental Information (Unaudited)
iSHARES® TRUST
Section 19(a) Notices
The amounts and sources of distributions reported are estimates and are provided pursuant to regulatory requirements and are not being provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon each Fund’s investment experience during the year and may be subject to changes based on the tax regulations. Shareholders will receive a Form 1099-DIV each calendar year that will inform them how to report these distributions for federal income tax purposes.
Total Cumulative Distributions for the Fiscal Year-to-Date | % Breakdown of the Total Cumulative Distributions for the Fiscal Year-to-Date | |||||||||||||||||||||||||||||||
iShares ETF | Net Investment Income | Net Realized Capital Gains | Return of Capital | Total Per Share | Net Investment Income | Net Realized Capital Gains | Return of Capital | Total Per Share | ||||||||||||||||||||||||
MSCI EAFE ESG Optimized | $ | 0.683609 | $ | — | $ | 0.052223 | $ | 0.735832 | 93 | % | — | % | 7 | % | 100 | % | ||||||||||||||||
MSCI Global Impact | 0.729897 | — | 0.006205 | 0.736102 | 99 | — | 1 | 100 | ||||||||||||||||||||||||
MSCI USA ESG Optimized | 0.370555 | 0.106229 | 0.017801 | 0.494585 | 75 | 21 | 4 | 100 |
42 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Electronic Delivery
Shareholders can sign up for email notifications announcing that the shareholder report or prospectus has been posted on the iShares website at www.iShares.com. Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail.
To enroll in electronic delivery:
• | Go to www.icsdelivery.com |
• | If your brokerage firm is not listed, electronic delivery may not be available. Please contact your broker-dealer or financial advisor. |
Householding
Householding is an option available to certain fund investors. Householding is a method of delivery, based on the preference of the individual investor, in which a single copy of certain shareholder documents can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.
Availability of Quarterly Schedule of Investments
The iShares Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The iShares Funds’ Forms N-Q are available on the SEC’s website and may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The iShares Funds also disclose their complete schedule of portfolio holdings on a daily basis on the iShares website.
Availability of Proxy Voting Policies and Proxy Voting Records
A description of the policies and procedures that the iShares Funds use to determine how to vote proxies relating to portfolio securities and information about how the iShares Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request (1) by calling toll-free 1-800-474-2737; (2) on the iShares website at www.iShares.com; and (3) on the SEC website at www.sec.gov.
GENERAL INFORMATION | 43 |
Table of Contents
Notes:
44 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes:
NOTES | 45 |
Table of Contents
Notes:
46 | 2018 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
For more information visit www.iShares.com or call 1-800-iShares (1-800-474-2737)
This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus.
Investing involves risk, including possible loss of principal.
The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).
The iShares Funds are not sponsored, endorsed, issued, sold or promoted by MSCI Inc., nor does this company make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the company listed above.
©2018 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.
iS-SAR-817-0218
Table of Contents
Item 2. Code of Ethics.
Not applicable to this semi-annual report.
Item 3. Audit Committee Financial Expert.
Not applicable to this semi-annual report.
Item 4. Principal Accountant Fees and Services.
Not applicable to this semi-annual report.
Item 5. Audit Committee of Listed Registrants.
Not applicable to this semi-annual report.
Table of Contents
Item 6. Investments.
(a) | Schedules of investments are included as part of the reports to shareholders filed under Item 1 of this Form. |
(b) | Not applicable. |
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable to the registrant.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable to the registrant.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable to the registrant.
Item 10. Submission of Matters to a Vote of Security Holders.
There were no material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board of Trustees.
Item 11. Controls and Procedures.
(a) | The President (the registrant’s Principal Executive Officer) and Treasurer and Chief Financial Officer (the registrant’s Principal Financial Officer) have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) are effective as of a date within 90 days of the filing date of this report, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the Investment Company Act of 1940 and Rules 13a-15(b) or 15d-15(b) under the Exchange Act of 1934. |
(b) | There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable to the registrant.
Item 13. Exhibits.
(a) (1) Not applicable to this semi-annual report.
(a) (2) Section 302 Certifications are attached.
(a) (3) Not applicable.
(a) (4) Not applicable.
(b) Section 906 Certifications are attached.
Table of Contents
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
iShares Trust
By: | /s/ Martin Small | |
Martin Small, President (Principal Executive Officer) | ||
Date: | April 27, 2018 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Martin Small | |
Martin Small, President (Principal Executive Officer) | ||
Date: | April 27, 2018 | |
By: | /s/ Jack Gee | |
Jack Gee, Treasurer and Chief Financial Officer (Principal Financial Officer) | ||
Date: | April 27, 2018 |