UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORMN-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number811-09729
iShares Trust
(Exact name of registrant as specified in charter)
c/o: State Street Bank and Trust Company
100 Summer Street, 4th Floor, Boston, MA 02110
(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, 2019
Date of reporting period: February 28, 2019
Item 1. | Reports to Stockholders. |
Copies of the semi-annual reports transmitted to shareholders pursuant to Rule30e-1 under the Investment Company Act of 1940 are attached.
FEBRUARY 28, 2019
2019 SEMI-ANNUAL REPORT (UNAUDITED) |
iShares Trust
▶ | iShares MSCI Argentina and Global Exposure ETF | AGT | Cboe BZX |
▶ | iShares MSCI BrazilSmall-Cap ETF | EWZS | NASDAQ |
▶ | iShares MSCI China ETF | MCHI | NASDAQ |
▶ | iShares MSCI ChinaSmall-Cap ETF | ECNS | NYSE Arca |
▶ | iShares MSCI Indonesia ETF | EIDO | NYSE Arca |
▶ | iShares MSCI Peru ETF | EPU | NYSE Arca |
▶ | iShares MSCI Philippines ETF | EPHE | NYSE Arca |
▶ | iShares MSCI Poland ETF | EPOL | NYSE Arca |
▶ | iShares MSCI Qatar ETF | QAT | NASDAQ |
▶ | iShares MSCI Saudi Arabia ETF | KSA | NYSE Arca |
▶ | iShares MSCI UAE ETF | UAE | NASDAQ |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of each Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
You may elect to receive all future reports in paper free of charge. If you hold accounts through a financial intermediary, you can follow the instructions included with this disclosure, if applicable, or contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. Please note that not all financial intermediaries may offer this service. Your election to receive reports in paper will apply to all funds held with your financial intermediary.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive electronic delivery of shareholder reports and other communications by contacting your financial intermediary. Please note that not all financial intermediaries may offer this service.
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Fund Summary as of February 28, 2019 | iShares® MSCI Argentina and Global Exposure ETF |
Investment Objective
TheiShares 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.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||
6 Months | 1 Year | Since Inception | 1 Year | Since Inception | ||||||||||||||||||||
Fund NAV | 8.91 | % | (23.06 | )% | (1.22 | )% | (23.06 | )% | (2.25 | )% | ||||||||||||||
Fund Market | 9.26 | (22.80 | ) | (1.25 | ) | (22.80 | ) | (2.29 | ) | |||||||||||||||
Index | 9.24 | (22.65 | ) | (1.47 | ) | (22.65 | ) | (2.70 | ) |
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.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
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| Beginning Account Value (09/01/18) | | | Ending Account Value (02/28/19) | | | Expenses Paid During the Period | (a) | | Beginning Account Value (09/01/18) | | | Ending Account Value (02/28/19) | | | Expenses Paid During the Period | (a) | | Annualized Expense Ratio | | ||||||||||
$ | 1,000.00 | $ | 1,089.10 | $ | 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. |
Portfolio Information
ALLOCATION BY SECTOR
Sector | | Percent of Total Investments | (a) | |
Consumer Discretionary | 29.2 | % | ||
Energy | 21.8 | |||
Financials | 15.3 | |||
Consumer Staples | 8.4 | |||
Utilities | 6.4 | |||
Materials | 6.1 | |||
Information Technology | 4.4 | |||
Communication Services | 4.0 | |||
Real Estate | 3.1 | |||
Industrials | 1.3 |
(a) | Excludes money market funds. |
TEN LARGEST COUNTRIES
Country | | Percent of Total Investments | (a) | |
Argentina | 50.9 | % | ||
United States | 24.5 | |||
Italy | 13.7 | |||
Chile | 6.1 | |||
Canada | 4.0 | |||
United Kingdom | 0.8 |
F U N D S U M M A R Y | 5 |
Fund Summary as of February 28, 2019 | iShares® MSCI Brazil Small-Cap ETF |
Investment Objective
TheiShares MSCI BrazilSmall-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.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||||||
6 Months | 1 Year | 5 Years | Since Inception | 1 Year | 5 Years | Since Inception | ||||||||||||||||||||||||||
Fund NAV | 38.10 | % | (4.51 | )% | 1.16 | % | (2.37 | )% | (4.51 | )% | 5.94 | % | (18.30 | )% | ||||||||||||||||||
Fund Market | 36.65 | (4.53 | ) | 1.18 | (2.39 | ) | (4.53 | ) | 6.03 | (18.43 | ) | |||||||||||||||||||||
Index | 38.63 | (3.50 | ) | 1.64 | (1.89 | ) | (3.50 | ) | 8.46 | (14.82 | ) |
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.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
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| Beginning Account Value (09/01/18) | | | Ending Account Value (02/28/19) | | | Expenses Paid During the Period | (a) | | Beginning Account Value (09/01/18) | | | Ending Account Value (02/28/19) | | | Expenses Paid During the Period | (a) | | Annualized Expense Ratio | | ||||||||||
$ | 1,000.00 | $ | 1,381.00 | $ | 3.48 | $ | 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. |
Portfolio Information
ALLOCATION BY SECTOR
Sector | | Percent of Total Investments | (a) | |
Consumer Discretionary | 28.7 | % | ||
Utilities | 21.8 | |||
Industrials | 10.3 | |||
Materials | 9.0 | |||
Health Care | 8.3 | |||
Information Technology | 4.8 | |||
Consumer Staples | 4.7 | |||
Real Estate | 4.5 | |||
Financials | 4.0 | |||
Communication Services | 2.6 | |||
Energy | 1.3 |
(a) | Excludes money market funds. |
TEN LARGEST HOLDINGS
Security | | Percent of Total Investments | (a) | |
CVC Brasil Operadora e Agencia de Viagens SA | 4.6 | % | ||
Estacio Participacoes SA | 4.3 | |||
Bradespar SA (Preferred) | 4.0 | |||
Transmissora Alianca de Energia Eletrica SA | 3.3 | |||
EDP - Energias do Brasil SA | 3.1 | |||
Metalurgica Gerdau SA (Preferred) | 2.8 | |||
Banco do Estado do Rio Grande do Sul SA (Preferred), Class B | 2.8 | |||
Cia. Energetica de Sao Paulo (Preferred), Class B | 2.7 | |||
Cyrela Brazil Realty SA Empreendimentos e Participacoes | 2.7 | |||
TOTVS SA | 2.7 |
6 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Fund Summary as of February 28, 2019 | iShares® MSCI China ETF |
Investment Objective
TheiShares 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.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||||||
6 Months | 1 Year | 5 Years | Since Inception | 1 Year | 5 Years | Since Inception | ||||||||||||||||||||||||||
Fund NAV | 0.86 | % | (11.85 | )% | 7.98 | % | 4.62 | % | (11.85 | )% | 46.82 | % | 43.05 | % | ||||||||||||||||||
Fund Market | 0.88 | (11.01 | ) | 8.12 | 4.60 | (11.01 | ) | 47.76 | 42.86 | |||||||||||||||||||||||
Index | 1.13 | (11.47 | ) | 8.53 | 5.17 | (11.47 | ) | 50.59 | 49.04 |
The inception date of the Fund was 3/29/11. The first day of secondary market trading was 3/31/11.
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.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
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| Beginning Account Value (09/01/18) | | | Ending Account Value (02/28/19) | | | Expenses Paid During the Period | (a) | | Beginning Account Value (09/01/18) | | | Ending Account Value (02/28/19) | | | Expenses Paid During the Period | (a) | | Annualized Expense Ratio | | ||||||||||
$ | 1,000.00 | $ | 1,008.60 | $ | 2.94 | $ | 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. |
Portfolio Information
ALLOCATION BY SECTOR
Sector | | Percent of Total Investments | (a) | |
Communication Services | 25.5 | % | ||
Financials | 23.0 | |||
Consumer Discretionary | 22.6 | |||
Industrials | 5.5 | |||
Real Estate | 5.3 | |||
Energy | 5.0 | |||
Information Technology | 3.0 | |||
Health Care | 2.9 | |||
Utilities | 2.8 | |||
Consumer Staples | 2.3 | |||
Materials | 2.1 |
(a) | Excludes money market funds. |
TEN LARGEST HOLDINGS
Security | | Percent of Total Investments | (a) | |
Tencent Holdings Ltd. | 14.3 | % | ||
Alibaba Group Holding Ltd. | 13.9 | |||
China Construction Bank Corp., Class H | 5.0 | |||
China Mobile Ltd. | 3.8 | |||
Ping An Insurance Group Co. of China Ltd., Class H | 3.2 | |||
Industrial & Commercial Bank of China Ltd., Class H | 3.1 | |||
Baidu Inc. | 2.6 | |||
Bank of China Ltd., Class H | 2.1 | |||
CNOOC Ltd. | 1.8 | |||
China Petroleum & Chemical Corp., Class H | 1.3 |
F U N D S U M M A R Y | 7 |
Fund Summary as of February 28, 2019 | iShares® MSCI ChinaSmall-Cap ETF |
Investment Objective
The iSharesMSCI ChinaSmall-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.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||||||
6 Months | 1 Year | 5 Years | Since Inception | 1 Year | 5 Years | Since Inception | ||||||||||||||||||||||||||
Fund NAV | (2.45 | )% | (10.26 | )% | 2.44 | % | 1.57 | % | (10.26 | )% | 12.81 | % | 14.06 | % | ||||||||||||||||||
Fund Market | (2.08 | ) | (8.98 | ) | 2.75 | 1.70 | (8.98 | ) | 14.52 | 15.21 | ||||||||||||||||||||||
Index | (2.88 | ) | (11.46 | ) | 1.28 | 0.74 | (11.46 | ) | 6.56 | 6.45 |
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.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
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| Beginning Account Value (09/01/18) | | | Ending Account Value (02/28/19) | | | Expenses Paid During the Period | (a) | | Beginning Account Value (09/01/18) | | | Ending Account Value (02/28/19) | | | Expenses Paid During the Period | (a) | | Annualized Expense Ratio | | ||||||||||
$ | 1,000.00 | $ | 975.50 | $ | 2.89 | $ | 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. |
Portfolio Information
ALLOCATION BY SECTOR
Sector | | Percent of Total Investments | (a) | |
Consumer Discretionary | 22.8 | % | ||
Real Estate | 16.5 | |||
Information Technology | 11.8 | |||
Industrials | 11.1 | |||
Materials | 8.8 | |||
Health Care | 8.7 | |||
Communication Services | 6.9 | |||
Utilities | 5.6 | |||
Financials | 2.9 | |||
Consumer Staples | 2.9 | |||
Energy | 2.0 |
(a) | Excludes money market funds. |
TEN LARGEST HOLDINGS
Security | | Percent of Total Investments | (a) | |
LiNing Co. Ltd. | 3.1 | % | ||
IGG Inc. | 1.6 | |||
Chinasoft International Ltd. | 1.6 | |||
GCL-Poly Energy Holdings Ltd. | 1.4 | |||
Yuexiu REIT | 1.3 | |||
Renhe Commercial Holdings Co. Ltd. | 1.3 | |||
China Grand Pharmaceutical and Healthcare Holdings Ltd., | ||||
Class A | 1.3 | |||
Fanhua Inc. | 1.2 | |||
China Aoyuan Group Ltd. | 1.2 | |||
Genertec Universal Medical Group Co. Ltd. | 1.1 |
8 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Fund Summary as of February 28, 2019 | iShares® MSCI Indonesia ETF |
Investment Objective
TheiShares 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.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||||||
6 Months | 1 Year | 5 Years | Since Inception | 1 Year | 5 Years | Since Inception | ||||||||||||||||||||||||||
Fund NAV | 10.82 | % | (7.90 | )% | 1.66 | % | 2.52 | % | (7.90 | )% | 8.57 | % | 24.60 | % | ||||||||||||||||||
Fund Market | 10.31 | (8.34 | ) | 1.64 | 2.37 | (8.34 | ) | 8.49 | 23.00 | |||||||||||||||||||||||
Index | 11.04 | (7.56 | ) | 2.14 | 3.01 | (7.56 | ) | 11.18 | 29.92 |
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.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
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| Beginning Account Value (09/01/18) | | | Ending Account Value (02/28/19) | | | Expenses Paid During the Period | (a) | | Beginning Account Value (09/01/18) | | | Ending Account Value (02/28/19) | | | Expenses Paid During the Period | (a) | | Annualized Expense Ratio | | ||||||||||
$ | 1,000.00 | $ | 1,108.20 | $ | 3.08 | $ | 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. |
Portfolio Information
ALLOCATION BY SECTOR
Sector | | Percent of Total Investments | (a) | |
Financials | 38.2 | % | ||
Consumer Staples | 16.9 | |||
Communication Services | 11.7 | |||
Consumer Discretionary | 10.1 | |||
Materials | 7.6 | |||
Energy | 5.3 | |||
Real Estate | 3.6 | |||
Industrials | 3.3 | |||
Health Care | 1.8 | |||
Utilities | 1.5 |
(a) | Excludes money market funds. |
TEN LARGEST HOLDINGS
Security | | Percent of Total Investments | (a) | |
Bank Central Asia Tbk PT | 12.8 | % | ||
Bank Rakyat Indonesia Persero Tbk PT | 10.7 | |||
Telekomunikasi Indonesia Persero Tbk PT | 9.8 | |||
Astra International Tbk PT | 7.2 | |||
Bank Mandiri Persero Tbk PT | 6.4 | |||
Unilever Indonesia Tbk PT | 4.1 | |||
Bank Negara Indonesia Persero Tbk PT | 3.8 | |||
Charoen Pokphand Indonesia Tbk PT | 3.0 | |||
United Tractors Tbk PT | 2.5 | |||
Gudang Garam Tbk PT | 2.4 |
F U N D S U M M A R Y | 9 |
Fund Summary as of February 28, 2019 | iShares® MSCI Peru ETF |
TheiShares MSCI Peru ETF(the “Fund”) 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.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||||||
6 Months | 1 Year | 5 Years | Since Inception | 1 Year | 5 Years | Since Inception | ||||||||||||||||||||||||||
Fund NAV | 3.24 | % | (7.32 | )% | 4.66 | % | 6.62 | % | (7.32 | )% | 25.57 | % | 86.14 | % | ||||||||||||||||||
Fund Market | 4.95 | (6.30 | ) | 4.84 | 6.68 | (6.30 | ) | 26.64 | 87.22 | |||||||||||||||||||||||
Index | 3.65 | (7.12 | ) | 5.37 | 7.30 | (7.12 | ) | 29.90 | 98.09 |
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.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
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| Beginning Account Value (09/01/18) | | | Ending Account Value (02/28/19) | | | Expenses Paid During the Period | (a) | | Beginning Account Value (09/01/18) | | | Ending Account Value (02/28/19) | | | Expenses Paid During the Period | (a) | | Annualized Expense Ratio | | ||||||||||
$ | 1,000.00 | $ | 1,032.40 | $ | 2.97 | $ | 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. |
Portfolio Information
ALLOCATION BY SECTOR
Sector | | Percent of Total Investments(a) | | |
Materials | 45.9 | % | ||
Financials | 31.3 | |||
Consumer Staples | 10.1 | |||
Industrials | 5.2 | |||
Utilities | 3.9 | |||
Consumer Discretionary | 2.6 | |||
Energy | 1.0 |
(a) | Excludes money market funds. |
TEN LARGEST HOLDINGS
Security | | Percent of Total Investments(a) | | |
Credicorp Ltd. | 22.9 | % | ||
Cia. de Minas Buenaventura SAA | 10.6 | |||
Southern Copper Corp. | 10.3 | |||
Alicorp SAA | 4.8 | |||
InRetail Peru Corp. | 4.7 | |||
Intercorp Financial Services Inc. | 4.6 | |||
Pan American Silver Corp. | 4.0 | |||
Hochschild Mining PLC | 3.7 | |||
Ferreycorp SAA | 3.6 | |||
Minsur SA | 3.5 |
10 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Fund Summary as of February 28, 2019 | iShares MSCI Philippines ETF |
Investment Objective
TheiShares 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.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||||||
6 Months | 1 Year | 5 Years | Since Inception | 1 Year | 5 Years | Since Inception | ||||||||||||||||||||||||||
Fund NAV | 2.40 | % | (7.01 | )% | 0.53 | % | 4.53 | % | (7.01 | )% | 2.68 | % | 45.21 | % | ||||||||||||||||||
Fund Market | 2.01 | (7.00 | ) | 0.28 | 4.40 | (7.00 | ) | 1.42 | 43.76 | |||||||||||||||||||||||
Index | 2.75 | (6.42 | ) | 1.17 | 5.09 | (6.42 | ) | 5.98 | 51.86 |
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.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
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| Beginning Account Value (09/01/18) | | | Ending Account Value (02/28/19) | | | Expenses Paid During the Period | (a) | | Beginning Account Value (09/01/18) | | | Ending Account Value (02/28/19) | | | Expenses Paid During the Period | (a) | | Annualized Expense Ratio | | ||||||||||
$ | 1,000.00 | $ | 1,024.00 | $ | 2.96 | $ | 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. |
Portfolio Information
ALLOCATION BY SECTOR
Sector | | Percent of Total Investments(a) | | |
Financials | 26.5 | % | ||
Real Estate | 26.5 | |||
Industrials | 23.6 | |||
Consumer Discretionary | 6.0 | |||
Utilities | 5.9 | |||
Consumer Staples | 4.6 | |||
Communication Services | 4.6 | |||
Energy | 1.1 | |||
Materials | 1.0 | |||
Information Technology | 0.2 |
(a) | Excludes money market funds. |
TEN LARGEST HOLDINGS
Security | | Percent of Total Investments(a) | | |
SM Prime Holdings Inc | 11.7 | % | ||
Ayala Land Inc. | 9.8 | |||
BDO Unibank Inc. | 7.6 | |||
Ayala Corp. | 7.0 | |||
SM Investments Corp. | 6.8 | |||
JG Summit Holdings Inc | 5.7 | |||
Jollibee Foods Corp. | 4.0 | |||
Metropolitan Bank & Trust Co. | 3.7 | |||
Aboitiz Equity Ventures Inc. | 3.6 | |||
Universal Robina Corp. | 3.6 |
F U N D S U M M A R Y | 11 |
Fund Summary as of February 28, 2019 | iShares® MSCI Poland ETF |
Investment Objective
The iShares MSCI Poland ETF (the “Fund”) 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.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||||||
6 Months | 1 Year | 5 Years | Since Inception | 1 Year | 5 Years | Since Inception | ||||||||||||||||||||||||||
Fund NAV | (2.29 | )% | (10.19 | )% | (3.32 | )% | 2.69 | % | (10.19 | )% | (15.52 | )% | 26.22 | % | ||||||||||||||||||
Fund Market | (2.11 | ) | (9.97 | ) | (3.32 | ) | 2.63 | (9.97 | ) | (15.54 | ) | 25.56 | ||||||||||||||||||||
Index | (2.24 | ) | (10.26 | ) | (3.14 | ) | 2.95 | (10.26 | ) | (14.73 | ) | 29.08 |
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.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
Beginning Account Value (09/ 01/18) | Ending Account Value (02/28/19) | Expenses Paid During the Period (a) | Beginning Account Value (09/01/18) | �� | Ending Account Value (02/28/19) | Expenses Paid During the Period(a) | Annualized Expense Ratio | |||||||||||||||||||||||
$ | 1,000.00 | $ | 977.10 | $ | 3.14 | $ | 1,000.00 | $ | 1,021.60 | $ | 3.21 | 0.64 | % |
(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. |
Portfolio Information
ALLOCATION BY SECTOR
Sector | Percent of Total Investments(a) | |||
Financials | 42.9 | % | ||
Energy | 20.0 | |||
Communication Services | 9.7 | |||
Materials | 8.0 | |||
Utilities | 6.7 | |||
Consumer Discretionary | 6.2 | |||
Consumer Staples | 2.8 | |||
Industrials | 1.7 | |||
Information Technology | 1.7 | |||
Health Care | 0.3 |
(a) | Excludes money market funds. |
TEN LARGEST HOLDINGS
Security | Percent of Total Investments(a) | |||
Powszechna Kasa Oszczednosci Bank Polski SA | 12.7 | % | ||
Polski Koncern Naftowy ORLEN SA | 11.7 | |||
Powszechny Zaklad Ubezpieczen SA | 9.4 | |||
Bank Polska Kasa Opieki SA | 7.1 | |||
KGHM Polska Miedz SA | 4.7 | |||
CD Projekt SA | 4.6 | |||
Polskie Gornictwo Naftowe i Gazownictwo SA | 4.5 | |||
Santander Bank Polska SA | 4.4 | |||
LPP SA | 4.1 | |||
PGE Polska Grupa Energetyczna SA | 3.9 |
12 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Fund Summary as of February 28, 2019 | iShares® MSCI Qatar ETF |
Investment Objective
TheiShares MSCI Qatar ETF(the “Fund”) 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.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||
6 Months | 1 Year | Since Inception | 1 Year | Since Inception | ||||||||||||||||||||
Fund NAV | 4.03 | % | 20.77 | % | (2.29 | )% | 20.77 | % | (10.60 | )% | ||||||||||||||
Fund Market | 2.32 | 20.77 | (2.43 | ) | 20.77 | (11.23 | ) | |||||||||||||||||
Index | 4.27 | 21.93 | (1.69 | ) | 21.93 | (7.91 | ) |
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.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||
| Beginning Account Value (09/01/18) | | | Ending Account Value (02/28/19) | | | Expenses Paid During the Period | (a) | | Beginning Account Value (09/01/18) | | | Ending Account Value (02/28/19) | | | Expenses Paid During the Period | (a) | | Annualized Expense Ratio | | ||||||||||
$ | 1,000.00 | $ | 1,040.30 | $ | 2.98 | $ | 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. |
Portfolio Information
ALLOCATION BY SECTOR
Sector | | Percent of Total Investments | (a) | |
Financials | 50.6 | % | ||
Industrials | 18.6 | |||
Real Estate | 11.4 | |||
Communication Services | 5.7 | |||
Energy | 5.1 | |||
Utilities | 4.4 | |||
Materials | 1.5 | |||
Health Care | 1.4 | |||
Consumer Staples | 1.3 |
(a) | Excludes money market funds. |
TEN LARGEST HOLDINGS
Security | | Percent of Total Investments | (a) | |
Qatar National Bank QPSC | 23.7 | % | ||
Industries Qatar QSC | 12.1 | |||
Qatar Islamic Bank SAQ | 8.6 | |||
Qatar Electricity & Water Co. QSC | 4.4 | |||
Commercial Bank PQSC (The) | 4.4 | |||
Ezdan Holding Group QSC | 4.3 | |||
Masraf Al Rayan QSC | 4.2 | |||
Barwa Real Estate Co. | 4.2 | |||
Qatar Gas Transport Co. Ltd. | 3.9 | |||
Ooredoo QPSC | 3.5 |
F U N D S U M M A R Y | 13 |
Fund Summary as of February 28, 2019 | iShares® MSCI Saudi Arabia ETF |
Investment Objective
TheiShares MSCI Saudi Arabia ETF(the “Fund”) 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 .
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||
6 Months | 1 Year | Since Inception | 1 Year | Since Inception | ||||||||||||||||||||
Fund NAV | 7.79 | % | 21.08 | % | 9.62 | % | 21.08 | % | 37.33 | % | ||||||||||||||
Fund Market | 9.53 | 22.60 | 9.89 | 22.60 | 38.50 | |||||||||||||||||||
Index | 8.12 | 21.83 | 10.52 | 21.83 | 41.30 |
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.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
Beginning Account Value (09/01/18) | Ending Account Value (02/28/19) | Expenses Paid During the Period (a) | Beginning Account Value (09/01/18) | Ending Account Value (02/28/19) | Expenses Paid During the Period (a) | Annualized Expense Ratio | ||||||||||||||||||||||||
$ | 1,000.00 | $ | 1,077.90 | $ | 3.81 | $ | 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. |
Portfolio Information
ALLOCATION BY SECTOR
Sector | Percent of Total Investments(a) | |||
Financials | 43.3 | % | ||
Materials | 32.6 | |||
Communication Services | 6.8 | |||
Consumer Staples | 5.4 | |||
Consumer Discretionary | 3.7 | |||
Utilities | 2.5 | |||
Health Care | 2.2 | |||
Real Estate | 2.2 | |||
Other (each representing less than 1%) | 1.3 |
TEN LARGEST HOLDINGS
Security | Percent of Total Investments(a) | |||
Saudi Basic Industries Corp. | 15.0 | % | ||
Al Rajhi Bank | 13.2 | |||
National Commercial Bank | 10.3 | |||
Samba Financial Group | 4.5 | |||
Saudi Telecom Co. | 4.5 | |||
Riyad Bank | 4.3 | |||
Saudi Arabian Mining Co. | 3.7 | |||
Alinma Bank | 3.0 | |||
Almarai Co. JSC | 2.7 | |||
Yanbu National Petrochemical Co. | 2.5 |
(a) | Excludes money market funds. |
14 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Fund Summary as of February 28, 2019 | iShares® MSCI UAE ETF |
Investment Objective
TheiShares MSCI UAE ETF(the “Fund”) 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.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||
6 Months | 1 Year | Since Inception | 1 Year | Since Inception | ||||||||||||||||||||
Fund NAV | (6.94 | )% | (9.80 | )% | (7.28 | )% | (9.80 | )% | (30.64 | )% | ||||||||||||||
Fund Market | (4.91 | ) | (7.71 | ) | (7.00 | ) | (7.71 | ) | (29.60 | ) | ||||||||||||||
Index | (7.58 | ) | (10.07 | ) | (6.92 | ) | (10.07 | ) | (29.32 | ) |
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.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
Beginning Account Value (09/01/18) | Ending Account Value (02/28/19) | Expenses Paid During the Period (a) | Beginning Account Value (09/01/18) | Ending Account Value (02/28/19) | Expenses Paid During the Period (a) | Annualized Expense Ratio | ||||||||||||||||||||||||
$ | 1,000.00 | $ | 930.60 | $ | 2.82 | $ | 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. |
Portfolio Information
ALLOCATION BY SECTOR
Sector | Percent of Total Investments(a) | |||
Financials | 46.8 | % | ||
Real Estate | 15.1 | |||
Communication Services | 14.4 | |||
Industrials | 12.5 | |||
Health Care | 4.3 | |||
Energy | 4.3 | |||
Consumer Discretionary | 1.5 | |||
Consumer Staples | 1.1 |
(a) | Excludes money market funds. |
TEN LARGEST HOLDINGS
Security | Percent of Total Investments(a) | |||
First Abu Dhabi Bank PJSC | 20.9 | % | ||
Emirates Telecommunications Group Co. PJSC | 14.3 | |||
Abu Dhabi Commercial Bank PJSC | 8.4 | |||
Emaar Properties PJSC | 4.9 | |||
Aldar Properties PJSC | 4.5 | |||
Union National Bank PJSC | 4.4 | |||
DP World Ltd. | 4.4 | |||
Dubai Islamic Bank PJSC | 4.3 | |||
NMC Health PLC | 4.3 | |||
Dana Gas PJSC | 2.8 |
F U N D S U M M A R Y | 15 |
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 recentmonth-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 ask on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not trade in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary market trading in shares of the fund, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.
As a shareholder of your Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested at the beginning of the period (or from the commencement of operations if less than 6 months) and held through the end of the period, is intended to help you understand your ongoing costs (in dollars and cents) of investing in your Fund and to compare these costs with the ongoing costs of investing in other funds.
Actual Expenses— The table provides information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. To estimate the expenses that you paid on your account over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During the Period.”
Hypothetical Example for Comparison Purposes— The table also provides information about hypothetical account values and hypothetical expenses based on your Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions 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 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) February 28, 2019 | iShares® MSCI Argentina and Global Exposure ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Argentina — 50.8% | ||||||||
Adecoagro SA(a) | 78,705 | $ | 559,593 | |||||
Arcos Dorados Holdings Inc., Class A | 92,901 | 770,149 | ||||||
Banco Macro SA, ADR | 19,395 | 979,447 | ||||||
BBVA Banco Frances SA, ADR | 50,315 | 557,490 | ||||||
Central Puerto SA, ADR | 54,651 | 557,440 | ||||||
Corp. America Airports SA(a)(b) | 39,149 | 309,669 | ||||||
Cresud SACIF y A, ADR(a) | 31,972 | 398,691 | ||||||
Despegar.com Corp.(a)(b) | 20,655 | 371,583 | ||||||
Empresa Distribuidora y Comercializadora Norte SA, ADR(a) | 4,012 | 106,278 | ||||||
Globant SA(a) | 15,572 | 1,072,755 | ||||||
Grupo Financiero Galicia SA, ADR | 56,505 | 1,727,358 | ||||||
Grupo Supervielle SA, ADR | 47,169 | 420,747 | ||||||
IRSA Inversiones y Representaciones SA, ADR(a) | 24,784 | 339,789 | ||||||
Loma Negra Cia Industrial Argentina SA, ADR(a) | 45,224 | 507,866 | ||||||
Pampa Energia SA, ADR(a) | 27,578 | 878,635 | ||||||
Telecom Argentina SA, ADR | 64,561 | 961,313 | ||||||
Transportadora de Gas del Sur SA, Class B, ADR | 51,696 | 751,143 | ||||||
YPF SA, ADR | 71,348 | 1,008,861 | ||||||
|
| |||||||
12,278,807 | ||||||||
Canada — 4.0% | ||||||||
Pan American Silver Corp. | 29,346 | 391,726 | ||||||
SSR Mining Inc.(a) | 41,163 | 570,718 | ||||||
|
| |||||||
962,444 | ||||||||
Chile — 3.9% | ||||||||
Cencosud SA | 228,042 | 425,212 | ||||||
Cia. Cervecerias Unidas SA | 36,464 | 516,479 | ||||||
|
| |||||||
941,691 | ||||||||
Italy — 13.7% | ||||||||
Tenaris SA | 247,914 | 3,311,377 | ||||||
United Kingdom — 0.8% | ||||||||
IOX Investments Ltd.(a) | 616,161 | 7,751 | ||||||
Phoenix Global Resources PLC(a) | 586,006 | 183,170 | ||||||
|
| |||||||
190,921 |
Security | Shares | Value | ||||||
United States — 24.5% | ||||||||
MercadoLibre Inc.(a) | 12,892 | $ | 5,914,721 | |||||
|
| |||||||
Total Common Stocks — 97.7% | 23,599,961 | |||||||
|
| |||||||
Preferred Stocks | ||||||||
Chile — 2.2% | ||||||||
Embotelladora Andina SA, Class B, Preference Shares | 140,848 | 528,052 | ||||||
|
| |||||||
Total Preferred Stocks — 2.2% | 528,052 | |||||||
|
| |||||||
Short-Term Investments | ||||||||
Money Market Funds — 0.7% | ||||||||
BlackRock Cash Funds: Institutional, | ||||||||
SL Agency Shares, 2.62%(c)(d)(e) | 152,968 | 153,029 | ||||||
BlackRock Cash Funds: Treasury, | ||||||||
SL Agency Shares, 2.33%(c)(d) | 803 | 803 | ||||||
|
| |||||||
153,832 | ||||||||
|
| |||||||
Total Short-Term Investments — 0.7% | 153,832 | |||||||
|
| |||||||
Total Investments in Securities — 100.6% | 24,281,845 | |||||||
Other Assets, Less Liabilities — (0.6)% | (133,502 | ) | ||||||
|
| |||||||
Net Assets — 100.0% | $ | 24,148,343 | ||||||
|
|
(a) | Non-income producing security. |
(b) | All or a portion of this security is on loan. |
(c) | Affiliate of the Fund. |
(d) | Annualized7-day yield as ofperiod-end. |
(e) | All or a portion of this security was purchased with cash collateral received from loaned securities. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2019, for purposes of Section 2(a)(3) of the 1940Act, were as follows:
Affiliated Issuer | Shares 08/31/18 | Net Activity | Shares Held at 02/28/19 | Value at 02/28/19 | Income | Net Realized Gain (Loss)(a) | Change in Unrealized Appreciation (Depreciation) | |||||||||||||||||||||
BlackRock Cash Funds: Institutional, | 309,671 | (156,703 | ) | 152,968 | $ | 153,029 | $ | 2,156 | (b) | $ | 158 | $ | (33 | ) | ||||||||||||||
BlackRock Cash Funds: Treasury, | 25,728 | (24,925 | ) | 803 | 803 | 177 | — | — | ||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
$ | 153,832 | $ | 2,333 | $ | 158 | $ | (33 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Includes 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, and less fees paid to BTC as securities lending agent. |
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, refer to the Notes to Financial Statements.
S C H E D U L E O F I N V E S T M E N T S | 17 |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI Argentina and Global Exposure ETF |
Fair Value Measurements (continued)
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2019. 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 | $ | 23,592,210 | $ | 7,751 | $ | — | $ | 23,599,961 | ||||||||
Preferred Stocks | 528,052 | — | — | 528,052 | ||||||||||||
Money Market Funds | 153,832 | — | — | 153,832 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 24,274,094 | $ | 7,751 | $ | — | $ | 24,281,845 | |||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
18 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) February 28, 2019 | iShares® MSCI BrazilSmall-Cap ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Auto Components — 1.2% | ||||||||
Mahle-Metal Leve SA | 80,500 | $ | 565,180 | |||||
Tupy SA | 115,000 | 564,229 | ||||||
|
| |||||||
1,129,409 | ||||||||
Banks — 0.0% | ||||||||
Banco ABC Brasil SA(a) | 4,705 | 22,708 | ||||||
|
| |||||||
Commercial Services & Supplies — 0.9% | ||||||||
Valid Solucoes e Servicos de Seguranca em Meios de Pagamento e Identificacao SA | 149,561 | 785,243 | ||||||
|
| |||||||
Diversified Consumer Services — 5.5% | ||||||||
Anima Holding SA | 69,000 | 344,425 | ||||||
Estacio Participacoes SA | 540,537 | 3,970,880 | ||||||
Ser Educacional SA(b) | 138,053 | 698,686 | ||||||
|
| |||||||
5,013,991 | ||||||||
Electric Utilities — 9.4% | ||||||||
Alupar Investimento SA | 299,072 | 1,822,224 | ||||||
EDP - Energias do Brasil SA | 621,000 | 2,864,689 | ||||||
Light SA | 172,500 | 913,039 | ||||||
Transmissora Alianca de Energia Eletrica SA | 460,000 | 3,061,556 | ||||||
|
| |||||||
8,661,508 | ||||||||
Food Products — 4.7% | ||||||||
Camil Alimentos SA | 299,000 | 573,244 | ||||||
Marfrig Global Foods SA(a) | 448,500 | 657,756 | ||||||
Minerva SA(a) | 207,000 | 352,153 | ||||||
Sao Martinho SA | 333,500 | 1,670,057 | ||||||
SLC Agricola SA | 97,700 | 1,068,636 | ||||||
|
| |||||||
4,321,846 | ||||||||
Health Care Providers & Services — 8.3% | ||||||||
Alliar Medicos A Frente SA(a) | 115,000 | 484,501 | ||||||
Fleury SA | 391,000 | 2,085,194 | ||||||
Instituto Hermes Pardini SA | 103,500 | 528,781 | ||||||
Odontoprev SA | 552,000 | 2,443,357 | ||||||
Qualicorp Consultoria e Corretora de Seguros SA | 494,500 | 2,042,479 | ||||||
|
| |||||||
7,584,312 | ||||||||
Hotels, Restaurants & Leisure — 6.2% | ||||||||
BK Brasil Operacao e Assessoria a Restaurantes SA | 253,000 | 1,495,636 | ||||||
CVC Brasil Operadora e Agencia de Viagens SA | 271,200 | 4,223,207 | ||||||
|
| |||||||
5,718,843 | ||||||||
Household Durables — 5.9% | ||||||||
Cyrela Brazil Realty SA Empreendimentos e Participacoes | 540,500 | 2,464,516 | ||||||
Ez Tec Empreendimentos e Participacoes SA | 115,053 | 818,202 | ||||||
MRV Engenharia e Participacoes SA | 598,000 | 2,167,008 | ||||||
|
| |||||||
5,449,726 | ||||||||
Independent Power and Renewable Electricity Producers — 2.9% | ||||||||
AES Tiete Energia SA | 333,500 | 1,035,115 | ||||||
Eneva SA(a) | 230,000 | 1,146,244 | ||||||
Omega Geracao SA | 92,000 | 487,935 | ||||||
|
| |||||||
2,669,294 | ||||||||
Insurance — 0.4% | ||||||||
Wiz Solucoes e Corretagem de Seguros SA | 149,500 | 358,377 | ||||||
|
| |||||||
Machinery — 1.4% | ||||||||
Iochpe Maxion SA | 218,507 | 1,265,508 | ||||||
|
| |||||||
Media — 2.6% | ||||||||
Multiplus SA | 97,300 | 691,952 |
Security | Shares | Value | ||||||
Media (continued) | ||||||||
Smiles Fidelidade SA | 129,595 | $ | 1,658,705 | |||||
|
| |||||||
2,350,657 | ||||||||
Oil, Gas & Consumable Fuels — 1.3% | ||||||||
Dommo Energia SA(a) | 2,472,500 | 586,767 | ||||||
QGEP Participacoes SA | 161,000 | 567,541 | ||||||
|
| |||||||
1,154,308 | ||||||||
Paper & Forest Products — 2.2% | ||||||||
Duratex SA | 644,000 | 2,026,318 | ||||||
|
| |||||||
Real Estate Management & Development — 4.5% | ||||||||
Aliansce Shopping Centers SA | 149,500 | 801,266 | ||||||
BR Properties SA | 253,000 | 590,969 | ||||||
Iguatemi Empresa de Shopping Centers SA | 184,007 | 2,060,741 | ||||||
LOG Commercial Properties e Participacoes | 46,092 | 214,713 | ||||||
Sonae Sierra Brasil SA | 57,900 | 476,910 | ||||||
|
| |||||||
4,144,599 | ||||||||
Road & Rail — 1.9% | ||||||||
Cosan Logistica SA(a) | 287,584 | 1,155,627 | ||||||
Movida Participacoes SA | 195,500 | 604,707 | ||||||
|
| |||||||
1,760,334 | ||||||||
Software — 4.8% | ||||||||
Linx SA | 253,000 | 1,924,021 | ||||||
TOTVS SA | 253,046 | 2,459,443 | ||||||
|
| |||||||
4,383,464 | ||||||||
Specialty Retail — 1.4% | ||||||||
Via Varejo SA | 1,069,500 | 1,306,129 | ||||||
|
| |||||||
Textiles, Apparel & Luxury Goods — 6.4% | ||||||||
Arezzo Industria e Comercio SA | 94,948 | 1,366,400 | ||||||
Cia. Hering | 287,500 | 2,314,412 | ||||||
Grendene SA | 552,000 | 1,276,139 | ||||||
Guararapes Confeccoes SA | 15,420 | 600,888 | ||||||
Vulcabras Azaleia SA(a) | 172,500 | 366,136 | ||||||
|
| |||||||
5,923,975 | ||||||||
Transportation Infrastructure — 2.1% | ||||||||
EcoRodovias Infraestrutura e Logistica SA | 460,000 | 1,388,494 | ||||||
Santos Brasil Participacoes SA | 552,000 | 554,907 | ||||||
|
| |||||||
1,943,401 | ||||||||
Water Utilities — 2.4% | ||||||||
Cia. de Saneamento de Minas Gerais-COPASA | 130,870 | 2,161,828 | ||||||
|
| |||||||
Total Common Stocks — 76.4% | 70,135,778 | |||||||
|
| |||||||
Preferred Stocks | ||||||||
Airlines — 1.7% | ||||||||
Gol Linhas Aereas Inteligentes SA, Preference Shares, NVS | 218,500 | 1,553,286 | ||||||
|
| |||||||
Banks — 3.6% | ||||||||
Banco ABC Brasil SA, Preference Shares, NVS | 161,037 | 784,950 | ||||||
Banco do Estado do Rio Grande do Sul SA, Class B, Preference Shares, NVS | 379,500 | 2,529,831 | ||||||
|
| |||||||
3,314,781 | ||||||||
Electric Utilities — 2.5% | ||||||||
Cia. Energetica do Ceara, Class A, Preference Shares, NVS | 23,300 | 341,711 | ||||||
Cia. Paranaense de Energia, Preference Shares, NVS | 207,000 | 1,972,716 | ||||||
|
| |||||||
2,314,427 |
S C H E D U L E O F I N V E S T M E N T S | 19 |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI BrazilSmall-Cap ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Gas Utilities — 1.1% | ||||||||
Cia. de Gas de Sao Paulo - COMGAS, Class A, Preference Shares, NVS | 48,610 | $ | 1,050,943 | |||||
|
| |||||||
Independent Power and Renewable Electricity Producers — 2.7% | ||||||||
Cia. Energetica de Sao Paulo, Class B, Preference Shares, NVS | 391,000 | 2,512,659 | ||||||
|
| |||||||
Machinery — 2.3% | ||||||||
Marcopolo SA, Preference Shares, NVS | 1,046,514 | 1,130,160 | ||||||
Randon SA Implemetos e Participacoes, Preference Shares, NVS | 379,550 | 976,643 | ||||||
|
| |||||||
2,106,803 | ||||||||
Metals & Mining — 6.8% | ||||||||
Bradespar SA, Preference Shares, NVS | 471,593 | 3,624,108 | ||||||
Metalurgica Gerdau SA, Preference Shares, NVS | 1,345,500 | 2,576,011 | ||||||
|
| |||||||
6,200,119 | ||||||||
Textiles, Apparel & Luxury Goods — 1.9% | ||||||||
Alpargatas SA, Preference Shares, NVS | 333,500 | 1,705,628 | ||||||
|
| |||||||
Water Utilities — 0.6% | ||||||||
Cia. de Saneamento do Parana, Preference Shares, NVS | 149,500 | 545,340 | ||||||
|
| |||||||
Total Preferred Stocks — 23.2% | 21,303,986 | |||||||
|
|
Security | Shares | Value | ||||||
Short-Term Investments | ||||||||
Money Market Funds — 0.1% | ||||||||
BlackRock Cash Funds: Treasury, | 96,656 | $ | 96,656 | |||||
|
| |||||||
Total Short-Term Investments — 0.1% | 96,656 | |||||||
|
| |||||||
Total Investments in Securities — 99.7% | 91,536,420 | |||||||
Other Assets, Less Liabilities — 0.3% | 285,727 | |||||||
|
| |||||||
Net Assets — 100.0% | $ | 91,822,147 | ||||||
|
|
(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) | Annualized7-day yield as ofperiod-end. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2019, for purposes of Section 2(a)(3) of the 1940Act, were as follows:
Affiliated Issuer | Shares 08/31/18 | Net Activity | Shares 02/28/19 | Value at 02/28/19 | Income | Net Realized Gain (Loss)(a) | Change in (Depreciation) | |||||||||||||||||||||
BlackRock Cash Funds: Treasury, | 30,183 | 66,473 | 96,656 | $ | 96,656 | $ | 982 | $ | — | $ | — | |||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
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, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2019. 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 | $ | 70,135,778 | $ | — | $ | — | $ | 70,135,778 | ||||||||
Preferred Stocks | 21,303,986 | — | — | 21,303,986 | ||||||||||||
Money Market Funds | 96,656 | — | — | 96,656 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 91,536,420 | $ | — | $ | — | $ | 91,536,420 | |||||||||
|
|
|
|
|
|
|
|
20 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) February 28, 2019 | iShares® MSCI China ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Aerospace & Defense — 0.1% | ||||||||
AviChina Industry & Technology Co. Ltd., Class H(a) | 5,400,000 | $ | 3,831,690 | |||||
|
| |||||||
Air Freight & Logistics — 0.4% | ||||||||
Sinotrans Ltd., Class H | 5,400,000 | 2,538,409 | ||||||
ZTO Express Cayman Inc., ADR | 804,240 | 15,988,291 | ||||||
|
| |||||||
18,526,700 | ||||||||
Airlines — 0.3% | ||||||||
Air China Ltd., Class H | 5,040,000 | 5,444,623 | ||||||
China Eastern Airlines Corp. Ltd., Class A | 1,260,096 | 1,099,140 | ||||||
China Eastern Airlines Corp. Ltd., Class H | 2,880,000 | 1,838,110 | ||||||
China Southern Airlines Co. Ltd., Class H | 5,040,000 | 4,115,570 | ||||||
|
| |||||||
12,497,443 | ||||||||
Auto Components — 0.3% | ||||||||
China First Capital Group Ltd.(b) | 8,640,000 | 3,830,314 | ||||||
Fuyao Glass Industry Group Co. Ltd., Class H(c) | 1,440,800 | 5,148,467 | ||||||
Nexteer Automotive Group Ltd. | 2,160,000 | 3,076,359 | ||||||
|
| |||||||
12,055,140 | ||||||||
Automobiles — 1.6% | ||||||||
BAIC Motor Corp. Ltd., Class H(c) | 4,680,000 | 2,975,006 | ||||||
Brilliance China Automotive Holdings Ltd.(a) | 7,920,000 | 7,758,771 | ||||||
BYD Co. Ltd., Class A | 108,072 | 879,885 | ||||||
BYD Co. Ltd., Class H(a) | 1,620,000 | 10,360,009 | ||||||
Chongqing Changan Automobile Co. Ltd., Class A | 540,007 | 687,994 | ||||||
Dongfeng Motor Group Co. Ltd., Class H | 7,200,000 | 7,658,794 | ||||||
Geely Automobile Holdings Ltd.(a) | 12,600,000 | 23,659,711 | ||||||
Great Wall Motor Co. Ltd., Class H(a) | 8,100,000 | 5,933,272 | ||||||
Guangzhou Automobile Group Co. Ltd., Class H | 8,028,400 | 9,869,558 | ||||||
SAIC Motor Corp. Ltd., Class A | 360,087 | 1,523,131 | ||||||
|
| |||||||
71,306,131 | ||||||||
Banks — 14.2% | ||||||||
Agricultural Bank of China Ltd., Class A | 3,602,000 | 2,044,390 | ||||||
Agricultural Bank of China Ltd., Class H | 73,800,000 | 35,349,691 | ||||||
Bank of Beijing Co. Ltd., Class A | 1,513,200 | 1,451,001 | ||||||
Bank of China Ltd., Class A | 3,024,600 | 1,734,745 | ||||||
Bank of China Ltd., Class H | 201,240,000 | 93,828,938 | ||||||
Bank of Communications Co. Ltd., Class A | 2,594,000 | 2,479,627 | ||||||
Bank of Communications Co. Ltd., Class H | 20,880,200 | 17,529,175 | ||||||
Bank of Jiangsu Co. Ltd., Class A | 1,188,679 | 1,260,548 | ||||||
Bank of Ningbo Co. Ltd., Class A | 351,083 | 1,012,054 | ||||||
Bank of Shanghai Co. Ltd., Class A | 612,680 | 1,125,577 | ||||||
China CITIC Bank Corp. Ltd., Class H | 23,040,800 | 14,969,564 | ||||||
China Construction Bank Corp., Class A | 683,790 | 733,303 | ||||||
China Construction Bank Corp., Class H | 245,520,000 | 218,315,065 | ||||||
China Everbright Bank Co. Ltd., Class A | 3,169,400 | 2,002,414 | ||||||
China Everbright Bank Co. Ltd., Class H | 4,320,000 | 2,069,250 | ||||||
China Merchants Bank Co. Ltd., Class A | 864,094 | 4,096,419 | ||||||
China Merchants Bank Co. Ltd., Class H | 9,900,150 | 45,403,119 | ||||||
China Minsheng Banking Corp. Ltd., Class A | 2,702,615 | 2,635,930 | ||||||
China Minsheng Banking Corp. Ltd., Class H | 14,040,160 | 10,838,922 | ||||||
Chongqing Rural Commercial Bank Co. Ltd., Class H | 6,480,000 | 4,053,199 | ||||||
Huaxia Bank Co. Ltd., Class A | 900,094 | 1,118,530 | ||||||
Industrial & Commercial Bank of China Ltd., Class A | 2,664,600 | 2,288,423 | ||||||
Industrial & Commercial Bank of China Ltd., Class H | 176,400,000 | 135,730,337 | ||||||
Industrial Bank Co. Ltd., Class A | 1,008,200 | 2,689,457 | ||||||
Ping An Bank Co. Ltd., Class A | 792,299 | 1,462,662 | ||||||
Postal Savings Bank of China Co. Ltd., Class H(c) | 19,440,000 | 11,639,532 |
Security | Shares | Value | ||||||
Banks (continued) | ||||||||
Shanghai Pudong Development Bank Co. Ltd., Class A | 1,332,086 | $ | 2,335,806 | |||||
|
| |||||||
620,197,678 | ||||||||
Beverages — 0.6% | ||||||||
China Resources Beer Holdings Co. Ltd. | 3,600,000 | 13,414,354 | ||||||
Jiangsu Yanghe Brewery Joint-Stock Co. Ltd., Class A | 63,097 | 1,046,559 | ||||||
Kweichow Moutai Co. Ltd., Class A | 47,381 | 5,343,101 | ||||||
Luzhou Laojiao Co. Ltd., Class A | 108,000 | 826,550 | ||||||
Tsingtao Brewery Co. Ltd., Class H | 930,000 | 3,945,196 | ||||||
Wuliangye Yibin Co. Ltd., Class A | 172,295 | 1,839,989 | ||||||
|
| |||||||
26,415,749 | ||||||||
Biotechnology — 0.1% | ||||||||
3SBio Inc.(a)(c) | 3,240,000 | 5,357,487 | ||||||
|
| |||||||
Capital Markets — 2.2% | ||||||||
China Cinda Asset Management Co. Ltd., Class H | 23,040,000 | 6,692,043 | ||||||
China Ding Yi Feng Holdings Ltd.(b) | 2,256,000 | 7,271,115 | ||||||
China Everbright Ltd. | 2,880,000 | 5,818,849 | ||||||
China Galaxy Securities Co. Ltd., Class H | 9,000,000 | 6,122,449 | ||||||
China Huarong Asset Management Co. Ltd., Class H(c) | 25,920,000 | 5,943,591 | ||||||
China International Capital Corp. Ltd., | 2,736,000 | 6,357,441 | ||||||
China Merchants Securities Co. Ltd., Class A | 468,053 | 1,226,898 | ||||||
CITIC Securities Co. Ltd., Class A | 792,075 | 2,781,348 | ||||||
CITIC Securities Co. Ltd., Class H | 5,400,000 | 13,084,155 | ||||||
GF Securities Co. Ltd., Class H | 3,888,000 | 6,557,762 | ||||||
Guotai Junan Securities Co. Ltd., Class A | 684,000 | 1,993,195 | ||||||
Guotai Junan Securities Co. Ltd., Class H(c) | 1,152,000 | 2,565,283 | ||||||
Haitong Securities Co. Ltd., Class A | 323,960 | 614,998 | ||||||
Haitong Securities Co. Ltd., Class H | 8,640,000 | 11,468,929 | ||||||
Huatai Securities Co. Ltd., Class A | 355,293 | 1,221,068 | ||||||
Huatai Securities Co. Ltd., Class H(c) | 4,104,000 | 8,312,772 | ||||||
Noah Holdings Ltd., ADR(a)(b) | 72,360 | 4,178,790 | ||||||
Orient Securities Co. Ltd./China, Class A | 540,064 | 989,752 | ||||||
Shenwan Hongyuan Group Co. Ltd., Class A | 2,196,097 | 1,804,059 | ||||||
|
| |||||||
95,004,497 | ||||||||
Chemicals — 0.1% | ||||||||
Sinopec Shanghai Petrochemical Co. Ltd., Class H | 7,920,000 | 4,015,593 | ||||||
|
| |||||||
Commercial Services & Supplies — 0.4% | ||||||||
China Everbright International Ltd.(a) | 8,640,148 | 8,453,252 | ||||||
Country Garden Services Holdings Co. Ltd.(b) | 2,520,000 | 4,147,673 | ||||||
Greentown Service Group Co. Ltd. | 2,880,000 | 2,626,920 | ||||||
|
| |||||||
15,227,845 | ||||||||
Communications Equipment — 0.2% | ||||||||
BYD Electronic International Co. Ltd.(a) | 1,801,000 | 2,303,503 | ||||||
ZTE Corp., Class A(b) | 104,700 | 466,014 | ||||||
ZTE Corp., Class H(b) | 1,987,840 | 5,938,349 | ||||||
|
| |||||||
8,707,866 | ||||||||
Construction & Engineering — 1.0% | ||||||||
China Communications Construction Co. Ltd., Class H | 11,520,000 | 12,415,501 | ||||||
China Railway Construction Corp. Ltd., Class A | 534,300 | 909,759 | ||||||
China Railway Construction Corp. Ltd., Class H | 5,040,000 | 7,255,217 | ||||||
China Railway Group Ltd., Class H | 9,720,000 | 9,633,570 | ||||||
China State Construction Engineering Corp. Ltd., Class A | 1,980,039 | 1,818,802 | ||||||
China State Construction International Holdings Ltd. | 5,040,000 | 5,329,053 | ||||||
Metallurgical Corp. of China Ltd., Class A | 1,872,000 | 973,019 | ||||||
Metallurgical Corp. of China Ltd., Class H | 6,840,000 | 2,004,127 | ||||||
Sinopec Engineering Group Co. Ltd., Class H | 3,420,000 | 3,106,398 | ||||||
|
| |||||||
43,445,446 |
S C H E D U L E O F I N V E S T M E N T S | 21 |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI China ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Construction Materials — 0.8% | ||||||||
Anhui Conch Cement Co. Ltd., Class A | 246,900 | $ | 1,307,296 | |||||
Anhui Conch Cement Co. Ltd., Class H | 3,060,000 | 17,502,866 | ||||||
BBMG Corp., Class H | 6,840,000 | 2,509,516 | ||||||
China National Building Material Co. Ltd., Class H | 10,080,000 | 8,025,682 | ||||||
China Resources Cement Holdings Ltd. | 6,480,000 | 6,901,170 | ||||||
|
| |||||||
36,246,530 | ||||||||
Diversified Consumer Services — 1.4% | ||||||||
New Oriental Education & Technology Group Inc., ADR(b) | 365,400 | 29,984,724 | ||||||
TAL Education Group, ADR(b) | 910,080 | 32,398,848 | ||||||
|
| |||||||
62,383,572 | ||||||||
Diversified Financial Services — 0.1% | ||||||||
Far East Horizon Ltd. | 5,760,000 | 6,427,883 | ||||||
|
| |||||||
Diversified Telecommunication Services — 1.6% |
| |||||||
China Communications Services Corp. Ltd., Class H | 5,760,800 | 5,790,302 | ||||||
China Telecom Corp. Ltd., Class H | 35,280,000 | 19,101,124 | ||||||
China Tower Corp. Ltd., Class H(b)(c) | 101,520,000 | 24,055,033 | ||||||
China Unicom Hong Kong Ltd. | 15,840,000 | 18,786,517 | ||||||
|
| |||||||
67,732,976 | ||||||||
Electrical Equipment — 0.4% | ||||||||
Fullshare Holdings Ltd.(a) | 19,535,000 | 3,907,099 | ||||||
NARI Technology Co. Ltd., Class A | 319,489 | 881,849 | ||||||
Shanghai Electric Group Co. Ltd., Class H | 7,920,000 | 2,936,024 | ||||||
Xinjiang Goldwind Science & Technology Co. Ltd., Class A | 324,008 | 668,806 | ||||||
Xinjiang Goldwind Science & Technology Co. Ltd., Class H | 1,368,000 | 1,568,448 | ||||||
Zhuzhou CRRC Times Electric Co. Ltd., Class H | 1,404,000 | 7,878,698 | ||||||
|
| |||||||
17,840,924 | ||||||||
Electronic Equipment, Instruments & Components — 1.1% |
| |||||||
AAC Technologies Holdings Inc. | 1,800,000 | 10,697,088 | ||||||
BOE Technology Group Co. Ltd., Class A | 2,052,000 | 1,247,407 | ||||||
China Railway Signal & Communication Corp. Ltd., Class H(c) | 3,960,000 | 3,279,064 | ||||||
Hangzhou Hikvision Digital Technology Co. Ltd., Class A | 468,095 | 2,412,068 | ||||||
Kingboard Holdings Ltd. | 1,800,000 | 6,305,893 | ||||||
Kingboard Laminates Holdings Ltd. | 2,880,000 | 3,529,466 | ||||||
Sunny Optical Technology Group Co. Ltd.(a) | 1,872,000 | 22,178,400 | ||||||
|
| |||||||
49,649,386 | ||||||||
Energy Equipment & Services — 0.1% | ||||||||
China Oilfield Services Ltd., Class H | 4,756,000 | 4,707,651 | ||||||
|
| |||||||
Entertainment — 1.5% | ||||||||
Alibaba Pictures Group Ltd.(a)(b) | 36,000,000 | 6,649,851 | ||||||
iQIYI Inc., ADR(b) | 319,680 | 8,682,509 | ||||||
NetEase Inc., ADR | 199,080 | 44,438,638 | ||||||
Tencent Music Entertainment Group, ADR(b) | 229,320 | 4,132,346 | ||||||
|
| |||||||
63,903,344 | ||||||||
Food & Staples Retailing — 0.2% | ||||||||
Sun Art Retail Group Ltd. | 6,120,000 | 6,221,509 | ||||||
Yonghui Superstores Co. Ltd., Class A | 684,041 | 883,760 | ||||||
|
| |||||||
7,105,269 | ||||||||
Food Products — 1.2% | ||||||||
China Agri-Industries Holdings Ltd. | 5,760,000 | 2,047,237 | ||||||
China Huishan Dairy Holdings Co. Ltd.(b)(d) | 1,366,667 | 3,482 | ||||||
China Mengniu Dairy Co. Ltd. | 7,200,000 | 22,242,605 | ||||||
Dali Foods Group Co. Ltd.(c) | 5,400,000 | 3,680,349 |
Security | Shares | Value | ||||||
Food Products (continued) | ||||||||
Foshan Haitian Flavouring & Food Co. Ltd., Class A | 108,054 | $ | 1,237,540 | |||||
Inner Mongolia Yili Industrial Group Co. Ltd., Class A | 315,098 | 1,272,591 | ||||||
Tingyi Cayman Islands Holding Corp. | 5,040,000 | 6,998,395 | ||||||
Uni-President China Holdings Ltd. | 3,240,000 | 2,885,118 | ||||||
Want Want China Holdings Ltd.(a) | 12,960,000 | 10,450,814 | ||||||
Yihai International Holding Ltd. | 1,080,000 | 3,412,061 | ||||||
|
| |||||||
54,230,192 | ||||||||
Gas Utilities — 1.2% | ||||||||
Beijing Enterprises Holdings Ltd. | 1,260,000 | 7,391,654 | ||||||
China Gas Holdings Ltd. | 4,536,000 | 14,908,507 | ||||||
China Resources Gas Group Ltd. | 2,160,000 | 9,383,169 | ||||||
ENN Energy Holdings Ltd. | 2,016,000 | 20,802,568 | ||||||
Towngas China Co. Ltd. | 2,520,000 | 2,009,631 | ||||||
|
| |||||||
54,495,529 | ||||||||
Health Care Equipment & Supplies — 0.1% |
| |||||||
Shandong Weigao Group Medical Polymer Co. Ltd., Class H | 5,760,000 | 5,004,357 | ||||||
|
| |||||||
Health Care Providers & Services — 0.4% | ||||||||
Meinian Onehealth Healthcare Holdings Co. Ltd., Class A | 216,028 | 558,204 | ||||||
Shanghai Pharmaceuticals Holding Co. Ltd., Class A | 360,058 | 990,600 | ||||||
Shanghai Pharmaceuticals Holding Co. Ltd., Class H | 1,980,000 | 4,449,438 | ||||||
Sinopharm Group Co. Ltd., Class H | 3,024,000 | 13,444,623 | ||||||
|
| |||||||
19,442,865 | ||||||||
Health Care Technology — 0.2% | ||||||||
Alibaba Health Information Technology Ltd.(b) | 9,360,000 | 9,598,716 | ||||||
|
| |||||||
Hotels, Restaurants & Leisure — 1.2% | ||||||||
China International Travel Service Corp. Ltd., Class A | 108,085 | 1,029,965 | ||||||
China Travel International Investment Hong Kong Ltd. | 5,760,000 | 1,709,700 | ||||||
Huazhu Group Ltd., ADR(a) | 334,080 | 11,716,185 | ||||||
Yum China Holdings Inc. | 921,600 | 38,449,152 | ||||||
|
| |||||||
52,905,002 | ||||||||
Household Durables — 0.3% | ||||||||
Gree Electric Appliances Inc. of Zhuhai, Class A | 172,293 | 1,152,875 | ||||||
Haier Electronics Group Co. Ltd. | 3,240,000 | 9,658,335 | ||||||
Midea Group Co. Ltd., Class A | 281,957 | 2,012,174 | ||||||
Qingdao Haier Co. Ltd., Class A | 360,288 | 886,836 | ||||||
|
| |||||||
13,710,220 | ||||||||
Independent Power and Renewable Electricity Producers — 1.0% |
| |||||||
CGN Power Co. Ltd., Class H(c) | 27,360,000 | 7,214,859 | ||||||
China Longyuan Power Group Corp. Ltd., Class H | 8,280,000 | 6,181,151 | ||||||
China National Nuclear Power Co. Ltd., Class A | 972,064 | 869,677 | ||||||
China Power International Development Ltd. | 11,160,000 | 2,814,951 | ||||||
China Resources Power Holdings Co. Ltd. | 5,040,000 | 9,553,772 | ||||||
China Yangtze Power Co. Ltd., Class A | 684,088 | 1,665,467 | ||||||
Datang International Power Generation Co. Ltd., Class H | 7,920,000 | 2,199,496 | ||||||
Huadian Power International Corp. Ltd., Class H | 4,320,000 | 1,893,144 | ||||||
Huaneng Power International Inc., Class H | 10,800,000 | 6,659,023 | ||||||
Huaneng Renewables Corp. Ltd., Class H | 12,240,000 | 3,726,668 | ||||||
|
| |||||||
42,778,208 | ||||||||
Industrial Conglomerates — 0.8% | ||||||||
CITIC Ltd. | 15,120,000 | 22,998,395 | ||||||
Fosun International Ltd. | 6,480,000 | 10,665,444 | ||||||
Shanghai Industrial Holdings Ltd. | 1,440,000 | 3,228,617 | ||||||
|
| |||||||
36,892,456 |
22 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI China ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Insurance — 6.5% | ||||||||
China Life Insurance Co. Ltd., Class H | 19,080,000 | $ | 52,501,720 | |||||
China Pacific Insurance Group Co. Ltd., Class A | 324,353 | 1,648,119 | ||||||
China Pacific Insurance Group Co. Ltd., Class H | 6,624,000 | 24,935,565 | ||||||
China Reinsurance Group Corp., Class H | 13,680,000 | 3,154,322 | ||||||
China Taiping Insurance Holdings Co. Ltd. | 4,104,124 | 12,704,809 | ||||||
New China Life Insurance Co. Ltd., Class A | 104,670 | 784,181 | ||||||
New China Life Insurance Co. Ltd., Class H | 2,052,000 | 9,933,502 | ||||||
People’s Insurance Co. Group of China Ltd. (The), Class H | 19,080,000 | 8,653,061 | ||||||
PICC Property & Casualty Co. Ltd., Class H | 18,000,462 | 21,555,243 | ||||||
Ping An Insurance Group Co. of China Ltd., Class A | 468,099 | 4,894,792 | ||||||
Ping An Insurance Group Co. of China Ltd., Class H | 13,320,000 | 140,245,357 | ||||||
ZhongAn Online P&C Insurance Co. Ltd., Class H(a)(b)(c) | 612,000 | 2,299,931 | ||||||
|
| |||||||
283,310,602 | ||||||||
Interactive Media & Services — 18.6% | ||||||||
58.com Inc., ADR(a)(b) | 240,840 | 17,559,645 | ||||||
Autohome Inc., ADR(a)(b) | 150,120 | 14,118,786 | ||||||
Baidu Inc., ADR(a)(b) | 708,480 | 115,156,339 | ||||||
Momo Inc., ADR(a)(b) | 371,520 | 12,323,318 | ||||||
SINA Corp./China(b) | 165,240 | 11,132,219 | ||||||
Tencent Holdings Ltd. | 14,616,000 | 625,245,586 | ||||||
Weibo Corp., ADR(a)(b) | 140,040 | 10,117,890 | ||||||
YY Inc., ADR(b) | 126,360 | 8,908,380 | ||||||
|
| |||||||
814,562,163 | ||||||||
Internet & Direct Marketing Retail — 16.6% |
| |||||||
Alibaba Group Holding Ltd., ADR(a)(b) | 3,318,480 | 607,381,394 | ||||||
Baozun Inc., ADR(a)(b) | 94,680 | 3,545,766 | ||||||
Ctrip.com International Ltd., ADR(b) | 1,046,520 | 35,717,728 | ||||||
JD.com Inc., ADR(a)(b) | 1,872,360 | 51,883,096 | ||||||
Meituan Dianping, Class B(b) | 828,000 | 6,423,756 | ||||||
Pinduoduo Inc., ADR(b) | 487,800 | 14,604,732 | ||||||
Vipshop Holdings Ltd., ADR(b) | 1,117,080 | 8,020,634 | ||||||
|
| |||||||
727,577,106 | ||||||||
IT Services — 0.3% | ||||||||
GDS Holdings Ltd., ADR(b) | 151,560 | 5,042,401 | ||||||
TravelSky Technology Ltd., Class H | 2,520,000 | 7,303,371 | ||||||
|
| |||||||
12,345,772 | ||||||||
Life Sciences Tools & Services — 0.4% | ||||||||
Genscript Biotech Corp.(a)(b) | 2,160,000 | 4,039,441 | ||||||
Wuxi Biologics Cayman Inc.(b)(c) | 1,260,000 | 11,958,266 | ||||||
|
| |||||||
15,997,707 | ||||||||
Machinery — 1.0% | ||||||||
China Conch Venture Holdings Ltd. | 4,140,000 | 13,817,932 | ||||||
China International Marine Containers Group Co. Ltd., Class A | 432,000 | 853,650 | ||||||
China Shipbuilding Industry Co. Ltd., Class A | 1,836,000 | 1,428,719 | ||||||
CRRC Corp. Ltd., Class A | 1,044,098 | 1,475,261 | ||||||
CRRC Corp. Ltd., Class H | 10,440,650 | 10,959,637 | ||||||
Haitian International Holdings Ltd. | 1,800,000 | 3,934,877 | ||||||
Sinotruk Hong Kong Ltd. | 1,800,000 | 3,274,478 | ||||||
Weichai Power Co. Ltd., Class H | 5,040,000 | 6,998,395 | ||||||
|
| |||||||
42,742,949 | ||||||||
Marine — 0.1% | ||||||||
COSCO SHIPPING Energy Transportation Co. Ltd., Class H | 2,880,000 | 1,695,024 | ||||||
COSCO SHIPPING Holdings Co. Ltd., Class A(b) | 1,080,000 | 808,161 |
Security | Shares | Value | ||||||
Marine (continued) | ||||||||
COSCO SHIPPING Holdings Co. Ltd., | 5,760,000 | $ | 2,509,516 | |||||
|
| |||||||
5,012,701 | ||||||||
Media — 0.1% | ||||||||
China Literature Ltd.(a)(b)(c) | 504,000 | 2,404,494 | ||||||
|
| |||||||
Metals & Mining — 0.9% | ||||||||
Aluminum Corp. of China Ltd., Class H(b) | 10,804,000 | 4,431,817 | ||||||
Angang Steel Co. Ltd., Class A | 972,097 | 823,245 | ||||||
Angang Steel Co. Ltd., Class H | 2,160,000 | 1,606,971 | ||||||
Baoshan Iron & Steel Co. Ltd., Class A | 891,095 | 998,210 | ||||||
China Hongqiao Group Ltd.(a) | 5,580,000 | 3,731,942 | ||||||
China Molybdenum Co. Ltd., Class H | 10,800,000 | 5,173,125 | ||||||
China Oriental Group Co. Ltd. | 2,880,000 | 1,929,833 | ||||||
China Zhongwang Holdings Ltd. | 4,464,000 | 2,365,696 | ||||||
Inner Mongolia BaoTou Steel Union Co. Ltd., Class A | 3,024,092 | 799,475 | ||||||
Jiangxi Copper Co. Ltd., Class H | 3,600,000 | 4,916,304 | ||||||
Maanshan Iron & Steel Co. Ltd., Class H | 4,320,000 | 2,058,244 | ||||||
MMG Ltd.(a)(b) | 5,760,000 | 2,729,649 | ||||||
Zhaojin Mining Industry Co. Ltd., Class H | 2,880,000 | 3,070,855 | ||||||
Zijin Mining Group Co. Ltd., Class H | 15,840,000 | 6,780,096 | ||||||
|
| |||||||
41,415,462 | ||||||||
Oil, Gas & Consumable Fuels — 4.9% | ||||||||
China Coal Energy Co. Ltd., Class H | 5,400,000 | 2,345,792 | ||||||
China Petroleum & Chemical Corp., Class A | 1,584,893 | 1,422,692 | ||||||
China Petroleum & Chemical Corp., Class H | 64,801,000 | 55,969,678 | ||||||
China Shenhua Energy Co. Ltd., Class A | 252,000 | 769,339 | ||||||
China Shenhua Energy Co. Ltd., Class H | 8,640,000 | 21,308,874 | ||||||
CNOOC Ltd. | 45,720,000 | 78,861,729 | ||||||
Inner Mongolia Yitai Coal Co. Ltd., Class B | 2,916,000 | 3,601,260 | ||||||
Kunlun Energy Co. Ltd. | 8,640,000 | 9,487,732 | ||||||
PetroChina Co. Ltd., Class A | 605,890 | 708,585 | ||||||
PetroChina Co. Ltd., Class H | 54,000,000 | 35,702,821 | ||||||
Yanzhou Coal Mining Co. Ltd., Class H | 5,040,000 | 5,001,605 | ||||||
|
| |||||||
215,180,107 | ||||||||
Paper & Forest Products — 0.2% | ||||||||
Lee & Man Paper Manufacturing Ltd. | 3,960,000 | 3,647,329 | ||||||
Nine Dragons Paper Holdings Ltd. | 4,320,000 | 4,479,706 | ||||||
|
| |||||||
8,127,035 | ||||||||
Personal Products — 0.3% | ||||||||
Hengan International Group Co. Ltd.(a) | 1,800,000 | 14,549,415 | ||||||
|
| |||||||
Pharmaceuticals — 1.7% | ||||||||
China Medical System Holdings Ltd. | 3,600,000 | 3,788,122 | ||||||
China Resources Pharmaceutical Group | 4,140,000 | 5,548,269 | ||||||
China Traditional Chinese Medicine Holdings Co. Ltd. | 5,760,000 | 3,800,963 | ||||||
CSPC Pharmaceutical Group Ltd. | 12,240,000 | 20,894,290 | ||||||
Hutchison China MediTech Ltd., ADR(b) | 137,160 | 3,578,504 | ||||||
Jiangsu Hengrui Medicine Co. Ltd., Class A | 180,287 | 1,936,109 | ||||||
Kangmei Pharmaceutical Co. Ltd., Class A | 252,888 | 401,134 | ||||||
Luye Pharma Group Ltd.(a)(c) | 3,060,000 | 2,284,338 | ||||||
Shanghai Fosun Pharmaceutical Group Co. Ltd., Class H | 1,620,000 | 5,747,535 | ||||||
Sihuan Pharmaceutical Holdings Group Ltd. | 10,440,000 | 2,181,151 | ||||||
Sino Biopharmaceutical Ltd. | 18,000,000 | 15,615,685 | ||||||
SSY Group Ltd. | 4,320,000 | 3,830,314 | ||||||
Tong Ren Tang Technologies Co. Ltd., Class H | 1,440,000 | 1,885,806 | ||||||
Yunnan Baiyao Group Co. Ltd., Class A | 59,499 | 756,090 | ||||||
|
| |||||||
72,248,310 |
S C H E D U L E O F I N V E S T M E N T S | 23 |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI China ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Professional Services — 0.1% | ||||||||
51job Inc., ADR(a)(b) | 63,000 | $ | 4,552,380 | |||||
|
| |||||||
Real Estate Management & Development — 5.3% | ||||||||
Agile Group Holdings Ltd. | 4,320,000 | 5,398,762 | ||||||
China Evergrande Group(a) | 6,840,000 | 21,130,475 | ||||||
China Fortune Land Development Co. Ltd., Class A | 140,500 | 663,552 | ||||||
China Jinmao Holdings Group Ltd.(a) | 13,680,000 | 6,639,762 | ||||||
China Merchants Shekou Industrial Zone Holdings Co. Ltd., Class A | 360,067 | 1,140,133 | ||||||
China Overseas Land & Investment Ltd. | 10,080,000 | 37,110,754 | ||||||
China Resources Land Ltd.(a) | 7,200,665 | 26,877,052 | ||||||
China Vanke Co. Ltd., Class A | 459,824 | 1,922,343 | ||||||
China Vanke Co. Ltd., Class H | 3,096,031 | 11,753,385 | ||||||
CIFI Holdings Group Co. Ltd. | 9,360,000 | 6,105,022 | ||||||
Country Garden Holdings Co. Ltd. | 19,440,727 | 25,607,929 | ||||||
Future Land Development Holdings Ltd.(a) | 4,320,000 | 3,720,248 | ||||||
Greentown China Holdings Ltd. | 2,340,000 | 1,988,305 | ||||||
Guangzhou R&F Properties Co. Ltd., Class H | 2,448,000 | 4,578,033 | ||||||
Jiayuan International Group Ltd. | 2,864,000 | 1,393,727 | ||||||
Kaisa Group Holdings Ltd.(a) | 5,400,000 | 1,926,164 | ||||||
KWG Group Holdings Ltd.(a) | 3,240,000 | 3,046,090 | ||||||
Logan Property Holdings Co. Ltd. | 3,600,000 | 5,127,264 | ||||||
Longfor Group Holdings Ltd. | 3,780,000 | 11,219,904 | ||||||
Poly Developments and Holdings Group Co. Ltd., Class A | 540,079 | 1,065,606 | ||||||
Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd., Class B | 2,016,043 | 2,848,669 | ||||||
Shenzhen Investment Ltd. | 8,640,000 | 3,224,948 | ||||||
Shimao Property Holdings Ltd. | 3,060,000 | 7,235,038 | ||||||
Shui On Land Ltd. | 9,900,000 | 2,471,910 | ||||||
Sino-Ocean Group Holding Ltd. | 6,300,000 | 2,945,425 | ||||||
SOHO China Ltd.(b) | 5,760,000 | 2,458,152 | ||||||
Sunac China Holdings Ltd. | 6,120,000 | 25,611,098 | ||||||
Yuexiu Property Co. Ltd. | 16,560,000 | 3,818,390 | ||||||
Yuzhou Properties Co. Ltd. | 4,320,000 | 2,107,773 | ||||||
|
| |||||||
231,135,913 | ||||||||
Road & Rail — 0.1% | ||||||||
CAR Inc.(a)(b) | 2,160,000 | 1,898,647 | ||||||
Daqin Railway Co. Ltd., Class A | 864,200 | 1,152,663 | ||||||
|
| |||||||
3,051,310 | ||||||||
Semiconductors & Semiconductor Equipment — 0.3% | ||||||||
Hua Hong Semiconductor Ltd.(c) | 1,080,000 | 2,526,026 | ||||||
Sanan Optoelectronics Co. Ltd., Class A | 324,055 | 696,976 | ||||||
Semiconductor Manufacturing International Corp.(a)(b) | 7,740,300 | 7,839,102 | ||||||
Xinyi Solar Holdings Ltd. | 7,920,000 | 3,894,520 | ||||||
|
| |||||||
14,956,624 | ||||||||
Software — 0.3% | ||||||||
Iflytek Co. Ltd., Class A | 144,085 | 768,502 | ||||||
Kingdee International Software Group Co. Ltd. | 6,120,000 | 6,626,920 | ||||||
Kingsoft Corp. Ltd. | 2,160,000 | 4,199,037 | ||||||
|
| |||||||
11,594,459 | ||||||||
Specialty Retail — 0.2% | ||||||||
GOME Retail Holdings Ltd.(a)(b) | 28,850,000 | 2,609,430 | ||||||
Suning.com Co. Ltd., Class A | 612,267 | 1,119,331 | ||||||
Zhongsheng Group Holdings Ltd. | 1,440,000 | 3,346,022 | ||||||
|
| |||||||
7,074,783 | ||||||||
Technology Hardware, Storage & Peripherals — 0.8% | ||||||||
Focus Media Information Technology Co. Ltd., Class A | 648,238 | 652,576 | ||||||
Legend Holdings Corp., Class H(c) | 1,008,000 | 2,805,779 |
Security | Shares | Value | ||||||
Technology Hardware, Storage & Peripherals (continued) | ||||||||
Lenovo Group Ltd. | 18,720,000 | $ | 16,860,353 | |||||
Meitu Inc.(a)(b)(c) | 4,500,000 | 1,840,174 | ||||||
Xiaomi Corp., Class B(b)(c) | 8,784,000 | 13,383,352 | ||||||
|
| |||||||
35,542,234 | ||||||||
Textiles, Apparel & Luxury Goods — 1.0% | ||||||||
ANTA Sports Products Ltd. | 2,880,000 | 16,876,863 | ||||||
Heng Ten Networks Group Ltd.(b) | 57,600,000 | 2,054,575 | ||||||
Shenzhou International Group Holdings Ltd. | 1,944,000 | 24,269,663 | ||||||
|
| |||||||
43,201,101 | ||||||||
Trading Companies & Distributors — 0.1% | ||||||||
BOC Aviation Ltd.(c) | 540,000 | 4,670,947 | ||||||
|
| |||||||
Transportation Infrastructure — 0.7% | ||||||||
Beijing Capital International Airport Co. Ltd., Class H | 4,320,000 | 4,320,110 | ||||||
China Merchants Port Holdings Co. Ltd. | 3,600,000 | 7,567,072 | ||||||
COSCO SHIPPING Ports Ltd. | 4,320,000 | 4,589,773 | ||||||
Jiangsu Expressway Co. Ltd., Class H | 3,600,000 | 4,962,165 | ||||||
Shenzhen International Holdings Ltd. | 2,520,000 | 5,200,642 | ||||||
Zhejiang Expressway Co. Ltd., Class H | 3,600,000 | 3,756,019 | ||||||
|
| |||||||
30,395,781 | ||||||||
Water Utilities — 0.5% | ||||||||
Beijing Enterprises Water Group Ltd. | 14,400,000 | 8,621,876 | ||||||
Guangdong Investment Ltd. | 7,920,000 | 15,194,680 | ||||||
|
| |||||||
23,816,556 | ||||||||
Wireless Telecommunication Services — 3.8% | ||||||||
China Mobile Ltd. | 15,660,000 | 164,783,306 | ||||||
China United Network Communications Ltd., Class A | 1,512,000 | 1,452,109 | ||||||
|
| |||||||
166,235,415 | ||||||||
|
| |||||||
Total Common Stocks — 99.9% | 4,373,345,671 | |||||||
|
| |||||||
Short-Term Investments | ||||||||
Money Market Funds — 15.5% | ||||||||
BlackRock Cash Funds: Institutional, | 677,602,884 | 677,873,925 | ||||||
BlackRock Cash Funds: Treasury, | 406,912 | 406,912 | ||||||
|
| |||||||
678,280,837 | ||||||||
|
| |||||||
Total Short-Term Investments — 15.5% |
| 678,280,837 | ||||||
|
| |||||||
Total Investments in Securities — 115.4% |
| 5,051,626,508 | ||||||
Other Assets, Less Liabilities — (15.4)% |
| (675,658,807 | ) | |||||
|
| |||||||
Net Assets — 100.0% | $ | 4,375,967,701 | ||||||
|
|
(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) | Annualized7-day yield as ofperiod-end. |
(g) | All or a portion of this security was purchased with cash collateral received from loaned securities. |
24 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI China ETF |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2019, for purposes of Section 2(a)(3) of the 1940Act, were as follows:
| ||||||||||||||||||||||||||||
Change in | ||||||||||||||||||||||||||||
Shares | Shares | Unrealized | ||||||||||||||||||||||||||
Held at | Held at | Value at | Net Realized | Appreciation | ||||||||||||||||||||||||
Affiliated Issuer | 08/31/18 | Net Activity | 02/28/19 | 02/28/19 | Income | Gain (Loss) | (a) | (Depreciation | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | 490,177,186 | 187,425,698 | 677,602,884 | $ | 677,873,925 | $ | 1,467,219 | (b) | $ | (22,118 | ) | $ | 85,049 | |||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 3,643,507 | (3,236,595 | ) | 406,912 | 406,912 | 30,303 | — | — | ||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
$ | 678,280,837 | $ | 1,497,522 | $ | (22,118 | ) | $ | 85,049 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Includes 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, and less fees paid to BTC as securities lending agent. |
Futures Contracts
Description | | Number of Contracts | | | Expiration Date | | | Notional Amount (000) |
| | Value/ Unrealized Appreciation (Depreciation) | | ||||
Long Contracts | ||||||||||||||||
HSCEI Index | 26 | 03/28/19 | $ | 1,890 | $ | 24,540 | ||||||||||
|
|
Derivative Financial Instruments Categorized by Risk Exposure
As of February 28, 2019, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:
| ||||
Equity Contracts | ||||
| ||||
Assets — Derivative Financial Instruments | ||||
Futures contracts | ||||
Net unrealized appreciation | $ | 24,540 | ||
|
|
For the six months ended February 28, 2019, the effect of derivative financial instruments in the Statement of Operations was as follows:
| ||||
Equity Contracts | ||||
| ||||
Net Realized Gain (Loss) from: | ||||
Futures contracts | $ | (101,274 | ) | |
|
| |||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Futures contracts | $ | 147,541 | ||
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
| ||||
Futures contracts: | ||||
Average notional value of contracts — long | $ | 5,261,293 | ||
|
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
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, refer to the Notes to Financial Statements.
S C H E D U L E O F I N V E S T M E N T S | 25 |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI China ETF |
Fair Value Measurements (continued)
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2019. 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 | $ | 4,372,586,099 | $ | — | $ | 759,572 | $ | 4,373,345,671 | ||||||||
Money Market Funds | 678,280,837 | — | — | 678,280,837 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 5,050,866,936 | $ | — | $ | 759,572 | $ | 5,051,626,508 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $ | 24,540 | $ | — | $ | — | $ | 24,540 | ||||||||
|
|
|
|
|
|
|
|
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
26 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) February 28, 2019 | iShares® MSCI ChinaSmall-Cap ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
| |||||||
Airlines — 0.3% | ||||||||
Shandong Airlines Co. Ltd., Class B | 35,000 | $ | 57,740 | |||||
|
| |||||||
Auto Components — 1.5% | ||||||||
Chaowei Power Holdings Ltd. | 170,000 | 67,785 | ||||||
Launch Tech Co. Ltd., Class H | 45,000 | 33,249 | ||||||
Tianneng Power International Ltd.(a) | 180,000 | 176,336 | ||||||
Xingda International Holdings Ltd. | 200,000 | 59,365 | ||||||
|
| |||||||
336,735 | ||||||||
Automobiles — 0.7% | ||||||||
Qingling Motors Co. Ltd., Class H | 200,000 | 54,779 | ||||||
Yadea Group Holdings Ltd.(b) | 280,000 | 102,015 | ||||||
|
| |||||||
156,794 | ||||||||
Beverages — 0.8% | ||||||||
Dynasty Fine Wines Group Ltd.(c)(d) | 128,000 | — | ||||||
Tibet Water Resources Ltd.(d) | 600,000 | 188,030 | ||||||
|
| |||||||
188,030 | ||||||||
Biotechnology — 1.5% | ||||||||
Ascletis Pharma Inc.(b)(d) | 60,000 | 53,428 | ||||||
Shanghai Haohai Biological Technology Co. Ltd., Class H(b) | 11,000 | 67,333 | ||||||
Zai Lab Ltd., ADR(d) | 7,080 | 204,046 | ||||||
|
| |||||||
324,807 | ||||||||
Building Products — 0.3% | ||||||||
China Fangda Group Co. Ltd., Class B | 109,000 | 57,209 | ||||||
|
| |||||||
Capital Markets — 0.8% | ||||||||
AGM Group Holdings Inc.(a)(d) | 2,280 | 64,319 | ||||||
China LNG Group Ltd.(d) | 540,000 | 84,613 | ||||||
Yintech Investment Holdings Ltd., ADR(a) | 5,920 | 39,309 | ||||||
|
| |||||||
188,241 | ||||||||
Chemicals — 4.5% | ||||||||
China BlueChemical Ltd., Class H | 480,000 | 151,647 | ||||||
China Lumena New Materials Corp.(a)(c)(d) | 868,000 | 1 | ||||||
China Sanjiang Fine Chemicals Co. Ltd. | 190,000 | 51,555 | ||||||
China XLX Fertiliser Ltd. | 110,000 | 39,797 | ||||||
Dongyue Group Ltd. | 320,000 | 218,095 | ||||||
Fufeng Group Ltd. | 420,600 | 213,788 | ||||||
Huabao International Holdings Ltd. | 170,000 | 76,015 | ||||||
Shanghai Chlor-Alkali Chemical Co. Ltd., Class B | 112,000 | 77,616 | ||||||
Silver Grant International Industries Ltd.(d) | 340,000 | 71,467 | ||||||
Sinofert Holdings Ltd.(a)(d) | 580,000 | 75,365 | ||||||
Tsaker Chemical Group Ltd.(b) | 70,000 | 13,376 | ||||||
|
| |||||||
988,722 | ||||||||
Commercial Services & Supplies — 0.7% | ||||||||
Capital Environment Holdings Ltd.(d) | 1,360,000 | 32,745 | ||||||
Dynagreen Environmental Protection Group Co. Ltd., Class H(d) | 100,000 | 50,065 | ||||||
Realord Group Holdings Ltd.(d) | 120,000 | 76,588 | ||||||
|
| |||||||
159,398 | ||||||||
Communications Equipment — 0.7% | ||||||||
China Fiber Optic Network System Group Ltd.(c) | 181,600 | 8,097 | ||||||
Comba Telecom Systems Holdings Ltd.(d) | 400,060 | 106,516 | ||||||
Eastern Communications Co. Ltd., Class B | 79,000 | 50,639 | ||||||
|
| |||||||
165,252 | ||||||||
Construction & Engineering — 0.3% | ||||||||
Baoye Group Co. Ltd., Class H(d) | 60,000 | 38,600 |
Security | Shares | Value | ||||||
Construction & Engineering (continued) | ||||||||
Beijing Urban Construction Design & Development Group Co. Ltd., Class H(b) | 80,000 | $ | 32,816 | |||||
|
| |||||||
71,416 | ||||||||
Construction Materials — 1.0% | ||||||||
Asia Cement China Holdings Corp. | 130,000 | 117,417 | ||||||
China Shanshui Cement Group Ltd.(a)(d) | 48,000 | 11,801 | ||||||
West China Cement Ltd. | 660,000 | 99,213 | ||||||
|
| |||||||
228,431 | ||||||||
Consumer Finance — 0.4% | ||||||||
Chong Sing Holdings FinTech Group(d) | 4,640,000 | 42,559 | ||||||
Yirendai Ltd., ADR(a) | 3,190 | 44,724 | ||||||
|
| |||||||
87,283 | ||||||||
Containers & Packaging — 1.1% | ||||||||
CPMC Holdings Ltd. | 130,000 | 57,301 | ||||||
Greatview Aseptic Packaging Co. Ltd. | 200,000 | 124,334 | ||||||
Ming Lam Holdings Ltd.(a)(d) | 2,400,000 | 19,873 | ||||||
Youyuan International Holdings Ltd.(a)(d) | 100,000 | 31,848 | ||||||
|
| |||||||
233,356 | ||||||||
Distributors — 0.6% | ||||||||
China Animation Characters Co. Ltd.(a) | 130,000 | 40,906 | ||||||
Dah Chong Hong Holdings Ltd. | 230,000 | 85,849 | ||||||
|
| |||||||
126,755 | ||||||||
Diversified Consumer Services — 3.7% |
| |||||||
China Maple Leaf Educational Systems Ltd.(a) | 400,000 | 179,877 | ||||||
China New Higher Education Group Ltd.(a)(b) | 120,000 | 68,180 | ||||||
China Yuhua Education Corp. Ltd., Class L(b) | 320,000 | 127,596 | ||||||
Fu Shou Yuan International Group Ltd.(a) | 240,000 | 209,432 | ||||||
Hope Education Group Co. Ltd.(b)(d) | 460,000 | 70,320 | ||||||
RISE Education Cayman Ltd., ADR(a)(d) | 3,220 | 35,291 | ||||||
Tarena International Inc., ADR | 8,980 | 59,358 | ||||||
Wisdom Education International Holdings Co. Ltd.(a) | 160,000 | 69,505 | ||||||
|
| |||||||
819,559 | ||||||||
Diversified Financial Services — 0.4% | ||||||||
Sheng Ye Capital Ltd.(d) | 100,000 | 100,003 | ||||||
|
| |||||||
Diversified Telecommunication Services — 0.2% |
| |||||||
APT Satellite Holdings Ltd. | 101,500 | 45,127 | ||||||
|
| |||||||
Electrical Equipment — 1.4% | ||||||||
China High Speed Transmission Equipment Group Co. Ltd.(a) | 140,000 | 137,685 | ||||||
Hangzhou Steam Turbine Co. Ltd., Class B | 75,046 | 67,782 | ||||||
Harbin Electric Co. Ltd., Class H | 180,000 | 95,391 | ||||||
Trony Solar Holdings Co. Ltd.(c)(d) | 216,000 | — | ||||||
|
| |||||||
300,858 | ||||||||
Electronic Equipment, Instruments & Components — 3.2% |
| |||||||
Anxin-China Holdings Ltd.(c)(d) | 672,000 | 6,849 | ||||||
AVIC International Holdings Ltd., Class H | 81,184 | 55,848 | ||||||
Camsing International Holding Ltd.(a) | 120,000 | 123,366 | ||||||
China Youzan Ltd.(a)(d) | 2,000,000 | 137,583 | ||||||
PAX Global Technology Ltd. | 210,000 | 98,181 | ||||||
Tongda Group Holdings Ltd.(a) | 1,000,000 | 110,831 | ||||||
Truly International Holdings Ltd.(d) | 520,000 | 96,053 | ||||||
Wasion Holdings Ltd | 140,000 | 68,307 | ||||||
|
| |||||||
697,018 | ||||||||
Energy Equipment & Services — 0.7% | ||||||||
Anton Oilfield Services Group/Hong Kong(d) | 520,000 | 68,893 | ||||||
Honghua Group Ltd.(d) | 660,000 | 47,084 |
S C H E D U L E O F I N V E S T M E N T S | 27 |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI ChinaSmall-Cap ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Energy Equipment & Services (continued) | ||||||||
Wison Engineering Services Co. Ltd. | 280,000 | $ | 37,097 | |||||
|
| |||||||
153,074 | ||||||||
Entertainment — 4.0% |
| |||||||
Changyou.com Ltd., ADR | 4,810 | 98,124 | ||||||
FingerTangoInc.(d) | 200,000 | 41,785 | ||||||
Huanxi Media Group Ltd.(a)(d) | 300,000 | 61,912 | ||||||
IGG Inc. | 250,000 | 355,423 | ||||||
IMAX China Holding Inc.(b) | 34,000 | 88,792 | ||||||
NetDragon Websoft Holdings Ltd. | 60,000 | 128,717 | ||||||
Poly Culture Group Corp. Ltd., Class H | 23,000 | 33,344 | ||||||
SMI Holdings Group Ltd.(c)(d) | 267,200 | 81,353 | ||||||
|
| |||||||
889,450 | ||||||||
Equity Real Estate Investment Trusts (REITs) — 1.3% |
| |||||||
Yuexiu REIT | 420,000 | 284,109 | ||||||
|
| |||||||
Food & Staples Retailing — 0.2% |
| |||||||
Springland International Holdings Ltd. | 200,000 | 40,001 | ||||||
|
| |||||||
Food Products — 1.1% |
| |||||||
China Foods Ltd. | 240,000 | 92,334 | ||||||
China Huiyuan Juice Group Ltd.(c)(d) | 81,000 | 15,168 | ||||||
China Modern Dairy Holdings Ltd.(d) | 490,000 | 70,537 | ||||||
COFCO Meat Holdings Ltd.(d) | 210,000 | 57,250 | ||||||
|
| |||||||
235,289 | ||||||||
Gas Utilities — 1.1% |
| |||||||
Beijing Gas Blue Sky Holdings Ltd.(d) | 1,440,000 | 57,785 | ||||||
China Oil and Gas Group Ltd. | 1,216,000 | 85,200 | ||||||
China Tian Lun Gas Holdings Ltd. | 80,000 | 92,639 | ||||||
|
| |||||||
235,624 | ||||||||
Health Care Equipment & Supplies — 0.8% |
| |||||||
AK Medical Holdings Ltd.(b) | 80,000 | 43,008 | ||||||
Lifetech Scientific Corp.(d) | 600,000 | 126,882 | ||||||
|
| |||||||
169,890 | ||||||||
Health Care Providers & Services — 2.1% |
| |||||||
China Medical & HealthCare Group Ltd.(a)(d) | 1,000,000 | 24,969 | ||||||
China Resources Medical Holdings Co. Ltd. | 230,000 | 164,959 | ||||||
Genertec Universal Medical Group Co. Ltd.(b) | 260,000 | 243,777 | ||||||
Golden Meditech Holdings Ltd. | 320,000 | 33,020 | ||||||
|
| |||||||
466,725 | ||||||||
Hotels, Restaurants & Leisure — 1.6% |
| |||||||
500.com Ltd., ADR(a)(d) | 4,180 | 63,536 | ||||||
Ajisen China Holdings Ltd. | 130,000 | 36,931 | ||||||
Beijing Sports and Entertainment Industry Group Ltd.(a)(d) | 225,000 | 76,531 | ||||||
Haichang Ocean Park Holdings Ltd.(b)(d) | 320,000 | 65,224 | ||||||
Huangshan Tourism Development Co. Ltd., Class B | 62,000 | 76,632 | ||||||
Tuniu Corp., ADR(d) | 6,780 | 33,764 | ||||||
|
| |||||||
352,618 | ||||||||
Household Durables — 2.5% |
| |||||||
Kasen International Holdings Ltd.(a) | 200,000 | 128,920 | ||||||
Konka Group Co. Ltd., Class B | 188,000 | 63,467 | ||||||
Ozner Water International Holding Ltd.(a)(b) | 110,000 | 24,243 | ||||||
Q Technology Group Co. Ltd.(a) | 110,000 | 91,365 | ||||||
Skyworth Digital Holdings Ltd. | 500,000 | 156,055 | ||||||
TCL Electronics Holdings Ltd. | 190,000 | 93,671 | ||||||
|
| |||||||
557,721 | ||||||||
Household Products — 0.8% |
| |||||||
NVC Lighting Holdings Ltd. | 500,000 | 34,396 |
Security | Shares | Value | ||||||
Household Products (continued) | ||||||||
Vinda International Holdings Ltd.(a) | 70,000 | $ | 137,328 | |||||
|
| |||||||
171,724 | ||||||||
Independent Power and Renewable Electricity Producers — 2.9% |
| |||||||
Canvest Environment Protection Group Co. Ltd. | 200,000 | 104,971 | ||||||
CGN Meiya Power Holdings Co. Ltd.(b)(d) | 360,000 | 54,575 | ||||||
China Datang Corp. Renewable Power Co. Ltd., Class H | 650,000 | 86,945 | ||||||
China Everbright Greentech Ltd., Class L(a)(b) | 140,000 | 110,041 | ||||||
China Power Clean Energy Development Co. Ltd. | 115,000 | 40,141 | ||||||
Concord New Energy Group Ltd. | 1,600,000 | 76,435 | ||||||
GCL New Energy Holdings Ltd.(a)(d) | 1,840,000 | 86,728 | ||||||
Huadian Energy Co. Ltd., Class B(d) | 122,000 | 34,282 | ||||||
Panda Green Energy Group Ltd.(a)(d) | 1,020,000 | 49,377 | ||||||
|
| |||||||
643,495 | ||||||||
Insurance — 1.2% |
| |||||||
Fanhua Inc., ADR | 10,610 | 267,372 | ||||||
|
| |||||||
Interactive Media & Services — 2.5% |
| |||||||
Bitauto Holdings Ltd., ADR(d) | 6,910 | 135,160 | ||||||
Fang Holdings Ltd., ADR(a)(d) | 58,180 | 90,761 | ||||||
Sohu.com Ltd., ADR(a)(d) | 8,460 | 169,707 | ||||||
Tian Ge Interactive Holdings Ltd.(b) | 140,000 | 60,460 | ||||||
Wise Talent Information Technology Co. Ltd.(d) | 28,000 | 96,308 | ||||||
|
| |||||||
552,396 | ||||||||
Internet & Direct Marketing Retail — 0.5% |
| |||||||
Cogobuy Group(a)(b)(d) | 160,000 | 62,779 | ||||||
Jumei International Holding Ltd., ADR(d) | 21,020 | 55,703 | ||||||
|
| |||||||
118,482 | ||||||||
IT Services — 3.6% |
| |||||||
21Vianet Group Inc., ADR(d) | 16,550 | 156,232 | ||||||
AGTech Holdings Ltd.(d) | 920,000 | 64,460 | ||||||
Chinasoft International Ltd. | 560,000 | 344,570 | ||||||
Digital China Holdings Ltd.(a)(d) | 180,000 | 96,308 | ||||||
Hi Sun Technology China Ltd.(d) | 510,000 | 83,811 | ||||||
INESA Intelligent Tech Inc., Class B | 79,000 | 48,980 | ||||||
|
| |||||||
794,361 | ||||||||
Leisure Products — 0.6% |
| |||||||
Bestway Global Holding Inc.(b) | 70,000 | 27,733 | ||||||
Goodbaby International Holdings Ltd.(a) | 230,000 | 82,919 | ||||||
Shanghai Phoenix Enterprise Group Co. Ltd., Class B(d) | 48,000 | 26,976 | ||||||
|
| |||||||
137,628 | ||||||||
Machinery — 3.7% |
| |||||||
China Yuchai International Ltd. | 4,920 | 94,612 | ||||||
CIMC Enric Holdings Ltd. | 160,000 | 142,883 | ||||||
First Tractor Co. Ltd., Class H(d) | 100,000 | 27,135 | ||||||
Huangshi Dongbei Electrical Appliance Co. Ltd., Class B(d) | 32,920 | 42,697 | ||||||
Kama Co. Ltd., Class B(d) | 66,015 | 36,704 | ||||||
Lonking Holdings Ltd | 530,000 | 177,571 | ||||||
Sany Heavy Equipment International Holdings Co. Ltd.(d) | 250,000 | 89,174 | ||||||
Shang Gong Group Co. Ltd., Class B(d) | 67,000 | 49,580 | ||||||
Shanghai Diesel Engine Co. Ltd., Class B | 91,045 | 56,448 | ||||||
Shanghai Highly Group Co. Ltd., Class B | 77,000 | 66,528 | ||||||
Zhengzhou Coal Mining Machinery Group Co. Ltd., Class H | 60,000 | 28,357 | ||||||
|
| |||||||
811,689 | ||||||||
Marine — 0.7% |
| |||||||
Seaspan Corp.(a) | 18,650 | 164,120 | ||||||
|
| |||||||
Media — 0.2% |
| |||||||
Phoenix Media Investment Holdings Ltd. | 340,000 | 38,982 | ||||||
|
|
28 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI ChinaSmall-Cap ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Metals & Mining — 2.2% | ||||||||
Chiho Environmental Group Ltd.(a)(d) | 100,000 | $ | 19,619 | |||||
China Metal Recycling Holdings Ltd.(c)(d) | 184,800 | — | ||||||
China Metal Resources Utilization Ltd.(a)(b)(d) | 200,000 | 111,595 | ||||||
Inner Mongolia Eerduosi Resources Co. Ltd., Class B | 86,000 | 80,238 | ||||||
Jinchuan Group International Resources Co. | 670,000 | 60,600 | ||||||
Real Gold Mining Ltd.(c)(d) | 126,000 | 16 | ||||||
Shougang Fushan Resources Group Ltd. | 660,000 | 149,660 | ||||||
Tiangong International Co. Ltd.(a) | 240,000 | 54,422 | ||||||
|
| |||||||
476,150 | ||||||||
Multi-Utilities — 0.2% | ||||||||
Tianjin Development Holdings Ltd. | 100,000 | 37,326 | ||||||
|
| |||||||
Multiline Retail — 0.3% | ||||||||
Lifestyle China Group Ltd.(d) | 160,000 | 61,148 | ||||||
|
| |||||||
Oil, Gas & Consumable Fuels — 1.4% | ||||||||
China Suntien Green Energy Corp. Ltd., Class H | 430,000 | 119,417 | ||||||
Sinopec Kantons Holdings Ltd. | 280,000 | 131,621 | ||||||
Yuan Heng Gas Holdings Ltd.(a)(d) | 640,000 | 48,103 | ||||||
|
| |||||||
299,141 | ||||||||
Paper & Forest Products — 0.0% | ||||||||
China Forestry Holdings Co. Ltd.(c)(d) | 306,000 | — | ||||||
Qunxing Paper Holdings Co. Ltd.(c)(d) | 148,000 | 1,697 | ||||||
|
| |||||||
1,697 | ||||||||
Pharmaceuticals — 4.3% | ||||||||
Beijing Tong Ren Tang Chinese Medicine Co. Ltd. | 70,000 | 120,742 | ||||||
China Animal Healthcare Ltd.(a)(c)(d) | 140,000 | 1,070 | ||||||
China Grand Pharmaceutical and Healthcare Holdings Ltd., Class A(d) | 440,000 | 275,778 | ||||||
China Shineway Pharmaceutical Group Ltd. | 80,000 | 83,773 | ||||||
Consun Pharmaceutical Group Ltd. | 100,000 | 76,562 | ||||||
Dawnrays Pharmaceutical Holdings Ltd. | 220,000 | 45,963 | ||||||
Hua Han Health Industry Holdings Ltd., | 651,960 | 26,577 | ||||||
Lee’s Pharmaceutical Holdings Ltd. | 75,000 | 65,448 | ||||||
Shandong Xinhua Pharmaceutical Co. Ltd., Class H | 50,800 | 27,957 | ||||||
Shanghai Fudan-ZhangjiangBio-Pharmaceutical Co. Ltd., Class H | 70,000 | 44,587 | ||||||
Shanghai Haixin Group Co., Class B | 118,000 | 58,292 | ||||||
YiChang HEC ChangJiang Pharmaceutical Co. Ltd., Class H(b) | 28,000 | 119,493 | ||||||
|
| |||||||
946,242 | ||||||||
Real Estate Management & Development — 15.1% | ||||||||
Beijing Capital Land Ltd., Class H | 260,000 | 108,971 | ||||||
Beijing North Star Co. Ltd., Class H | 200,000 | 63,186 | ||||||
C&D International Investment Group Ltd. | 50,000 | 48,918 | ||||||
Carnival Group International Holdings Ltd.(d) | 2,202,596 | 34,232 | ||||||
Central China Real Estate Ltd. | 190,038 | 80,133 | ||||||
China Aoyuan Group Ltd. | 330,000 | 259,382 | ||||||
China Logistics Property Holdings Co. Ltd.(b)(d) | 260,000 | 85,786 | ||||||
China Merchants Land Ltd. | 340,000 | 52,409 | ||||||
China Overseas Grand Oceans Group Ltd. | 420,000 | 165,329 | ||||||
China Overseas Property Holdings Ltd.(a) | 350,000 | 131,532 | ||||||
China SCE Group Holdings Ltd. | 500,800 | 197,135 | ||||||
China Vast Industrial Urban Development Co. | 110,000 | 45,262 | ||||||
Colour Life Services Group Co. Ltd. | 90,000 | 53,772 | ||||||
Fantasia Holdings Group Co. Ltd.(a) | 405,000 | 63,460 | ||||||
Gemdale Properties & Investment Corp. Ltd. | 1,320,000 | 151,341 | ||||||
Glorious Property Holdings Ltd.(d) | 710,000 | 33,014 | ||||||
Greenland Hong Kong Holdings Ltd. | 230,000 | 67,976 | ||||||
Ground International Development Ltd.(a)(d) | 350,000 | 15,160 |
Security | Shares | Value | ||||||
Real Estate Management & Development (continued) | ||||||||
Guangdong Land Holdings Ltd.(d) | 60,000 | $ | 12,306 | |||||
Guorui Properties Ltd.(a) | 240,000 | 49,836 | ||||||
HKC Holdings Ltd. | 50,920 | 45,278 | ||||||
Modern Land China Co. Ltd. | 240,000 | 34,549 | ||||||
Nam Tai Property Inc. | 6,530 | 61,970 | ||||||
Poly Property Group Co. Ltd. | 550,000 | 207,394 | ||||||
Powerlong Real Estate Holdings Ltd. | 330,000 | 153,864 | ||||||
Redco Group(b) | 240,000 | 112,512 | ||||||
Redsun Properties Group Ltd.(d) | 180,000 | 71,085 | ||||||
Renhe Commercial Holdings Co. Ltd.(a)(d) | 6,220,000 | 281,294 | ||||||
Road King Infrastructure Ltd. | 60,000 | 114,805 | ||||||
Ronshine China Holdings Ltd.(d) | 155,000 | 203,381 | ||||||
Shanghai Industrial Urban Development Group Ltd. | 400,000 | 75,416 | ||||||
Shanghai ShibeiHi-Tech Co. Ltd., Class B | 127,000 | 66,294 | ||||||
Skyfame Realty Holdings Ltd. | 640,000 | 97,837 | ||||||
Top Spring International Holdings Ltd. | 115,000 | 39,995 | ||||||
Zhuguang Holdings Group Co. Ltd.(a)(d) | 400,000 | 63,696 | ||||||
|
| |||||||
3,348,510 | ||||||||
Road & Rail — 0.6% | ||||||||
eHi Car Services Ltd., ADR(d) | 7,290 | 87,917 | ||||||
Shanghai Jinjiang International Industrial Investment Co. Ltd., Class B | 43,000 | 45,408 | ||||||
|
| |||||||
133,325 | ||||||||
Semiconductors & Semiconductor Equipment — 2.9% | ||||||||
Daqo New Energy Corp., ADR(d) | 2,630 | 95,680 | ||||||
GCL-Poly Energy Holdings Ltd.(d) | 3,530,000 | 305,791 | ||||||
JinkoSolar Holding Co. Ltd., ADR(a)(d) | 8,010 | 164,926 | ||||||
Shanghai Fudan Microelectronics Group Co. Ltd., Class H(d) | 80,000 | 85,505 | ||||||
|
| |||||||
651,902 | ||||||||
Software — 0.8% | ||||||||
Inspur International Ltd. | 140,000 | 81,149 | ||||||
National Agricultural Holdings Ltd.(a)(c)(d) | 126,000 | 11,396 | ||||||
Sinosoft Technology Group Ltd. | 150,012 | 51,598 | ||||||
Xunlei Ltd., ADR(d) | 8,210 | 37,027 | ||||||
|
| |||||||
181,170 | ||||||||
Specialty Retail — 2.3% | ||||||||
Boshiwa International Holding Ltd.(a)(c)(d) | 153,000 | 585 | ||||||
China Harmony New Energy Auto Holding Ltd. | 210,000 | 84,002 | ||||||
China Meidong Auto Holdings Ltd. | 120,000 | 54,269 | ||||||
China ZhengTong Auto Services Holdings Ltd. | 300,000 | 183,062 | ||||||
Grand Baoxin Auto Group Ltd. | 200,000 | 62,167 | ||||||
Pou Sheng International Holdings Ltd. | 590,000 | 120,258 | ||||||
|
| |||||||
504,343 | ||||||||
Technology Hardware, Storage & Peripherals — 0.5% | ||||||||
China Goldjoy Group Ltd. | 2,120,000 | 103,977 | ||||||
Coolpad Group Ltd.(c)(d) | 384,000 | 2,446 | ||||||
|
| |||||||
106,423 | ||||||||
Textiles, Apparel & Luxury Goods — 8.3% | ||||||||
361 Degrees International Ltd. | 230,000 | 45,415 | ||||||
Best Pacific International Holdings Ltd.(a) | 80,000 | 23,950 | ||||||
Bosideng International Holdings Ltd. | 880,000 | 169,278 | ||||||
China Dongxiang Group Co. Ltd. | 960,000 | 138,195 | ||||||
China Lilang Ltd. | 120,000 | 115,111 | ||||||
China Longevity Group Co. Ltd.(c)(d) | 96,000 | — | ||||||
Citychamp Watch & Jewellery Group Ltd. | 420,000 | 89,352 | ||||||
Cosmo Lady China Holdings Co. Ltd.(a)(b) | 180,000 | 56,868 | ||||||
Fuguiniao Co. Ltd., Class H(c)(d) | 43,200 | 9,631 | ||||||
HOSA International Ltd.(c) | 220,000 | 8,408 |
S C H E D U L E O F I N V E S T M E N T S | 29 |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI ChinaSmall-Cap ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Textiles, Apparel & Luxury Goods (continued) | ||||||||
JNBY Design Ltd. | 50,000 | $ | 98,729 | |||||
Li Ning Co. Ltd.(d) | 480,000 | 672,628 | ||||||
Luthai Textile Co. Ltd., Class B | 67,937 | 83,517 | ||||||
Texhong Textile Group Ltd. | 75,000 | 100,512 | ||||||
Weiqiao Textile Co. | 115,000 | 46,441 | ||||||
Xtep International Holdings Ltd. | 275,000 | 180,419 | ||||||
|
| |||||||
1,838,454 | ||||||||
Trading Companies & Distributors — 1.3% | ||||||||
China Aircraft Leasing Group Holdings Ltd. | 75,000 | 84,270 | ||||||
CITIC Resources Holdings Ltd. | 760,037 | 69,712 | ||||||
HC Group Inc.(a)(d) | 135,000 | 82,378 | ||||||
Shougang Concord International Enterprises Co. Ltd.(d) | 1,960,000 | 57,178 | ||||||
Superb Summit International Group Ltd.(a)(c)(d) | 59,500 | 76 | ||||||
|
| |||||||
293,614 | ||||||||
Transportation Infrastructure — 1.8% | ||||||||
Anhui Expressway Co. Ltd., Class H | 120,000 | 78,422 | ||||||
COSCO SHIPPING International Hong Kong Co. Ltd.(a) | 160,000 | 59,314 | ||||||
Tianjin Port Development Holdings Ltd. | 500,000 | 57,963 | ||||||
Xiamen International Port Co. Ltd., Class H | 280,000 | 40,307 | ||||||
Yuexiu Transport Infrastructure Ltd. | 200,000 | 155,673 | ||||||
|
| |||||||
391,679 | ||||||||
Water Utilities — 1.4% | ||||||||
China Everbright Water Ltd.(a) | 217,000 | 56,209 | ||||||
China Water Affairs Group Ltd. | 220,000 | 229,254 | ||||||
CT Environmental Group Ltd.(a) | 600,000 | 29,428 | ||||||
|
| |||||||
314,891 | ||||||||
|
| |||||||
Total Common Stocks — 99.6% |
| 22,003,499 | ||||||
|
| |||||||
Rights | ||||||||
Real Estate Management & Development — 0.0% | ||||||||
China Aoyuan Group Ltd., (Expires 03/04/19)(d) | 3,882 | — | ||||||
|
| |||||||
Total Rights — 0.0% | — | |||||||
|
|
Security | Shares | Value | ||||||
Short-Term Investments | ||||||||
Money Market Funds — 14.6% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 2.62%(e)(f)(g) | 3,186,801 | $ | 3,188,075 | |||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 2.33%(e)(f) | 52,857 | 52,857 | ||||||
|
| |||||||
3,240,932 | ||||||||
|
| |||||||
Total Short-Term Investments — 14.6% |
| 3,240,932 | ||||||
|
| |||||||
Total Investments in Securities — 114.2% |
| 25,244,431 | ||||||
Other Assets, Less Liabilities — (14.2)% |
| (3,147,266 | ) | |||||
|
| |||||||
Net Assets — 100.0% |
| $ | 22,097,165 | |||||
|
|
(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) | Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. |
(d) | Non-income producing security. (e) Affiliate of the Fund. |
(f) | Annualized7-day yield as ofperiod-end. |
(g) | All or a portion of this security was purchased with cash collateral received from loaned securities. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2019, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Affiliated Issuer | | Shares Held at 08/31/18 | | | Net Activity | | | Shares Held at 02/28/19 | | | Value at 02/28/19 | | Income | | Net Realized Gain (Loss) (Depreciation) |
(a)
| | Change in Unrealized Appreciation | | |||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | 4,008,047 | (821,246 | ) | 3,186,801 | $ | 3,188,075 | $ | 96,942 | (b) | $ | 110 | $ | (108 | ) | ||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 20,119 | 32,738 | 52,857 | 52,857 | 389 | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
$ | 3,240,932 | $ | 97,331 | $ | 110 | $ | (108 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Includes 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, and less fees paid to BTC as securities lending agent. |
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, refer to the Notes to Financial Statements.
30 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI ChinaSmall-Cap ETF |
Fair Value Measurements (continued)
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2019. 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 | $ | 21,830,129 | $ | — | $ | 173,370 | $ | 22,003,499 | ||||||||
Rights | — | 0 | (a) | — | 0 | (a) | ||||||||||
Money Market Funds | 3,240,932 | — | — | 3,240,932 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 25,071,061 | $ | 0 | (a) | $ | 173,370 | $ | 25,244,431 | ||||||||
|
|
|
|
|
|
|
|
(a) | Rounds to less than $1. |
The following table includes a rollforward for the six months ended February 28, 2019 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 | $ | 104,781 | ||
Realized gain (loss) and change in unrealized appreciation/depreciation | (12,193 | ) | ||
Purchases | — | |||
Sales | — | |||
Transfers in(a) | 87,789 | (b) | ||
Transfers out(a) | (7,007 | )(c) | ||
|
| |||
Balance at end of period | $ | 173,370 | ||
|
| |||
Net change in unrealized appreciation/depreciation on investments still held at end of period | $ | (8,374 | ) | |
|
|
(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. |
(c) | Transfers out of Level 3 are due to resumption of trading of equity securities. |
See notes to financial statements.
S C H E D U L E O F I N V E S T M E N T S | 31 |
Schedule of Investments (unaudited) February 28, 2019 | iShares® MSCI Indonesia ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Automobiles — 7.2% | ||||||||
Astra International Tbk PT | 94,115,330 | $ | 47,835,409 | |||||
|
| |||||||
Banks — 36.7% | ||||||||
Bank Central Asia Tbk PT | 43,235,358 | 84,749,600 | ||||||
Bank Danamon Indonesia Tbk PT | 16,861,260 | 10,218,037 | ||||||
Bank Mandiri Persero Tbk PT | 84,228,960 | 42,660,838 | ||||||
Bank Negara Indonesia Persero Tbk PT | 40,724,458 | 25,475,403 | ||||||
Bank Pembangunan Daerah Jawa Barat Dan Banten Tbk PT | 16,222,136 | 2,363,986 | ||||||
Bank Pembangunan Daerah Jawa Timur Tbk PT | 56,557,800 | 2,854,526 | ||||||
Bank Rakyat Indonesia Persero Tbk PT | 257,812,660 | 70,558,290 | ||||||
Bank Tabungan Negara Persero Tbk PT | 25,219,126 | 4,356,316 | ||||||
|
| |||||||
243,236,996 | ||||||||
Capital Markets — 1.0% | ||||||||
Kresna Graha Investama Tbk PT(a) | 81,581,300 | 3,566,554 | ||||||
Pool Advista Indonesia Tbk PT(a) | 8,681,200 | 3,017,670 | ||||||
|
| |||||||
6,584,224 | ||||||||
Construction & Engineering — 1.7% | ||||||||
Adhi Karya Persero Tbk PT | 10,824,710 | 1,154,225 | ||||||
PP Persero Tbk PT | 16,248,522 | 2,310,080 | ||||||
Sitara Propertindo Tbk PT(a) | 44,303,000 | 2,519,453 | ||||||
Waskita Karya Persero Tbk PT | 24,890,900 | 3,317,607 | ||||||
Wijaya Karya Persero Tbk PT | 17,331,770 | 2,199,197 | ||||||
|
| |||||||
11,500,562 | ||||||||
Construction Materials — 4.3% | ||||||||
Indocement Tunggal Prakarsa Tbk PT | 9,391,844 | 12,835,131 | ||||||
Semen Indonesia Persero Tbk PT | 15,400,455 | 13,848,641 | ||||||
Waskita Beton Precast Tbk PT | 60,323,100 | 1,655,213 | ||||||
|
| |||||||
28,338,985 | ||||||||
Diversified Telecommunication Services — 10.6% | ||||||||
Inovisi Infracom Tbk PT(a)(b) | 9,476,400 | — | ||||||
Link Net Tbk PT | 7,572,500 | 2,314,679 | ||||||
Telekomunikasi Indonesia Persero Tbk PT | 236,350,190 | 64,852,443 | ||||||
Tower Bersama Infrastructure Tbk PT | 10,872,700 | 3,076,122 | ||||||
|
| |||||||
70,243,244 | ||||||||
Food Products — 8.2% | ||||||||
Charoen Pokphand Indonesia Tbk PT | 37,805,225 | 19,618,137 | ||||||
Eagle High Plantations Tbk PT(a) | 44,557,452 | 525,789 | ||||||
Indofood CBP Sukses Makmur Tbk PT | 14,581,554 | 10,598,642 | ||||||
Indofood Sukses Makmur Tbk PT | 25,727,130 | 12,939,004 | ||||||
Inti Agri Resources Tbk PT(a) | 157,847,600 | 2,244,146 | ||||||
Japfa Comfeed Indonesia Tbk PT | 24,692,700 | 3,931,875 | ||||||
Nippon Indosari Corpindo Tbk PT | 230,233 | 19,067 | ||||||
Perusahaan Perkebunan London Sumatra Indonesia Tbk PT | 15,588,500 | 1,351,908 | ||||||
Salim Ivomas Pratama Tbk PT | 24,723,900 | 836,579 | ||||||
Sawit Sumbermas Sarana Tbk PT | 19,627,300 | 1,520,793 | ||||||
Tunas Baru Lampung Tbk PT | 13,561,700 | 800,157 | ||||||
|
| |||||||
54,386,097 | ||||||||
Gas Utilities — 1.5% | ||||||||
Perusahaan Gas Negara Persero Tbk PT | 55,243,407 | 9,974,640 | ||||||
|
| |||||||
Household Products — 4.1% | ||||||||
Unilever Indonesia Tbk PT | 7,816,304 | 27,045,218 | ||||||
|
| |||||||
Insurance — 0.5% | ||||||||
Panin Financial Tbk PT(a) | 100,838,778 | 3,197,021 | ||||||
|
|
Security | Shares | Value | ||||||
Marine — 0.2% | ||||||||
Berlian Laju Tanker Tbk PT(a)(b) | 20,137,514 | $ | — | |||||
Trada Alam Minera Tbk PT(a) | 125,829,300 | 1,627,932 | ||||||
|
| |||||||
1,627,932 | ||||||||
Media — 1.1% | ||||||||
Global Mediacom Tbk PT | 32,657,800 | 919,317 | ||||||
Media Nusantara Citra Tbk PT | 32,133,500 | 2,135,761 | ||||||
Surya Citra Media Tbk PT | 31,820,000 | 3,958,415 | ||||||
|
| |||||||
7,013,493 | ||||||||
Metals & Mining — 0.8% | ||||||||
Aneka Tambang Tbk | 42,528,954 | 3,068,554 | ||||||
Krakatau Steel Persero Tbk PT(a) | 24,138,793 | 820,213 | ||||||
Timah Tbk PT | 14,340,380 | 1,396,575 | ||||||
|
| |||||||
5,285,342 | ||||||||
Multiline Retail — 1.7% | ||||||||
Matahari Department Store Tbk PT | 12,121,200 | 4,954,462 | ||||||
Mitra Adiperkasa Tbk PT | 57,129,400 | 4,304,757 | ||||||
Ramayana Lestari Sentosa Tbk PT | 18,888,500 | 2,349,733 | ||||||
|
| |||||||
11,608,952 | ||||||||
Oil, Gas & Consumable Fuels — 5.3% | ||||||||
Adaro Energy Tbk PT | 73,439,139 | 6,838,832 | ||||||
Bukit Asam Tbk PT | 15,124,400 | 4,279,020 | ||||||
Bumi Resources Tbk PT(a) | 257,875,800 | 2,749,698 | ||||||
Delta Dunia Makmur Tbk PT(a) | 23,822,700 | 965,270 | ||||||
Indika Energy Tbk PT | 9,112,400 | 1,266,376 | ||||||
Medco Energi Internasional Tbk PT(a) | 34,733,233 | 2,283,863 | ||||||
Sekawan Intipratama Tbk PT(a)(b) | 30,572,100 | 84,756 | ||||||
Sugih Energy Tbk PT(a)(b) | 119,120,611 | 423,389 | ||||||
United Tractors Tbk PT | 8,677,996 | 16,347,389 | ||||||
|
| |||||||
35,238,593 | ||||||||
Paper & Forest Products — 2.5% | ||||||||
Indah Kiat Pulp & Paper Corp. Tbk PT | 13,825,000 | 10,834,948 | ||||||
Pabrik Kertas Tjiwi Kimia Tbk PT | 7,012,700 | 5,570,778 | ||||||
|
| |||||||
16,405,726 | ||||||||
Personal Products — 0.3% | ||||||||
Industri Jamu Dan Farmasi Sido Muncul Tbk PT | 24,268,600 | 1,785,534 | ||||||
|
| |||||||
Pharmaceuticals — 1.8% | ||||||||
Kalbe Farma Tbk PT | 112,929,985 | 12,001,445 | ||||||
|
| |||||||
Real Estate Management & Development — 3.6% | ||||||||
Alam Sutera Realty Tbk PT(a) | 89,075,616 | 2,051,573 | ||||||
Bumi Serpong Damai Tbk PT(a) | 43,438,822 | 4,184,084 | ||||||
Ciputra Development Tbk PT | 55,002,913 | 3,421,187 | ||||||
Hanson International Tbk PT(a) | 368,271,535 | 2,617,889 | ||||||
Lippo Karawaci Tbk PT | 57,953,462 | 1,285,337 | ||||||
Pakuwon Jati Tbk PT | 96,109,177 | 4,235,841 | ||||||
PP Properti Tbk PT | 146,221,739 | 1,631,904 | ||||||
Sentul City Tbk PT(a) | 99,615,600 | 892,238 | ||||||
Summarecon Agung Tbk PT | 53,649,758 | 3,584,914 | ||||||
23,904,967 | ||||||||
Specialty Retail — 0.9% | ||||||||
Ace Hardware Indonesia Tbk PT | 48,320,679 | 6,028,277 | ||||||
|
| |||||||
Textiles, Apparel & Luxury Goods — 0.2% | ||||||||
Sri Rejeki Isman Tbk PT | 61,419,500 | 1,536,852 | ||||||
|
| |||||||
Tobacco — 4.4% | ||||||||
Gudang Garam Tbk PT | 2,578,442 | 15,653,026 |
32 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI Indonesia ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Tobacco (continued) | ||||||||
Hanjaya Mandala Sampoerna Tbk PT | 49,070,500 | $ | 13,255,227 | |||||
|
| |||||||
28,908,253 | ||||||||
Trading Companies & Distributors — 0.6% |
| |||||||
AKR Corporindo Tbk PT | 10,188,100 | 4,019,474 | ||||||
|
| |||||||
Transportation Infrastructure — 0.7% | ||||||||
Jasa Marga Persero Tbk PT | 13,111,908 | 4,870,071 | ||||||
|
| |||||||
Total Common Stocks — 99.9% | 662,577,307 | |||||||
|
| |||||||
Short-Term Investments | ||||||||
Money Market Funds — 0.0% | ||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 2.33%(c)(d) | 234,474 | 234,474 | ||||||
|
| |||||||
Total Short-Term Investments — 0.0% | 234,474 | |||||||
|
| |||||||
Total Investments in Securities — 99.9% | 662,811,781 | |||||||
Other Assets, Less Liabilities — 0.1% | 775,036 | |||||||
|
| |||||||
Net Assets — 100.0% | $ | 663,586,817 | ||||||
|
|
(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) | Annualized7-day yield as ofperiod-end. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2019, for purposes of
Section 2(a)(3) of the 1940 Act, were as follows:
| ||||||||||||||||||||||||||||
Change in | ||||||||||||||||||||||||||||
Shares | Shares | Unrealized | ||||||||||||||||||||||||||
Held at | Held at | Value at | Net Realized | Appreciation | ||||||||||||||||||||||||
Affiliated Issuer | 08/31/18 | Net Activity | 02/28/19 | 02/28/19 | Income | Gain (Loss) | (a) | (Depreciation | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
BlackRock Cash Funds: Treasury, | 375,511 | (141,037 | ) | 234,474 | $ | 234,474 | $ | 4,418 | $ | — | $ | — | ||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
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, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2019. 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 | $ | 662,069,162 | $ | — | $ | 508,145 | $ | 662,577,307 | ||||||||
Money Market Funds | 234,474 | — | — | 234,474 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 662,303,636 | $ | — | $ | 508,145 | $ | 662,811,781 | |||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
S C H E D U L E O F I N V E S T M E N T S | 33 |
Schedule of Investments (unaudited) February 28, 2019 | iShares® MSCI Peru ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Banks — 30.3% | ||||||||
BBVA Banco Continental SA | 4,318,447 | $ | 5,068,232 | |||||
Credicorp Ltd. | 152,677 | 37,114,252 | ||||||
Intercorp Financial Services Inc. | 165,623 | 7,386,785 | ||||||
|
| |||||||
49,569,269 | ||||||||
Capital Markets — 0.7% | ||||||||
Bolsa de Valores de Lima SAA, Class A | 1,270,264 | 1,152,690 | ||||||
|
| |||||||
Construction & Engineering — 1.6% | ||||||||
Grana y Montero SAA(a) | 4,560,294 | 2,579,477 | ||||||
|
| |||||||
Construction Materials — 5.9% | ||||||||
Cementos Pacasmayo SAA | 2,429,764 | 4,799,261 | ||||||
Union Andina de Cementos SAA | 5,994,177 | 4,804,770 | ||||||
|
| |||||||
9,604,031 | ||||||||
Electric Utilities — 3.9% | ||||||||
Enel Distribucion Peru SAA | 1,146,971 | 1,838,762 | ||||||
Luz del Sur SAA | 1,228,405 | 4,521,987 | ||||||
|
| |||||||
6,360,749 | ||||||||
Food & Staples Retailing — 4.7% | ||||||||
InRetail Peru Corp.(a)(b) | 219,882 | 7,649,695 | ||||||
|
| |||||||
Food Products — 5.3% | ||||||||
Alicorp SAA | 2,288,164 | 7,786,402 | ||||||
Casa Grande SAA | 694,876 | 840,745 | ||||||
|
| |||||||
8,627,147 | ||||||||
Metals & Mining — 39.6% | ||||||||
Cia. de Minas Buenaventura SAA, ADR | 1,033,119 | 17,191,100 | ||||||
Cia. Minera Atacocha SAA, Class B(a) | 6,682,472 | 636,715 | ||||||
Hochschild Mining PLC | 2,239,929 | 5,910,991 | ||||||
Minsur SA(a) | 10,291,337 | 5,603,269 | ||||||
Pan American Silver Corp. | 483,170 | 6,449,604 | ||||||
Sociedad Minera Cerro Verde SAA | 157,675 | 3,799,968 | ||||||
Southern Copper Corp. | 466,867 | 16,625,134 |
Security | Shares | Value | ||||||
Metals & Mining (continued) | ||||||||
Trevali Mining Corp.(a) | 12,280,798 | $ | 3,450,186 | |||||
Volcan Cia. Minera SAA, Class B, NVS | 24,676,414 | 5,075,608 | ||||||
|
| |||||||
64,742,575 | ||||||||
Multiline Retail — 2.6% | ||||||||
SACI Falabella | 547,911 | 4,267,317 | ||||||
|
| |||||||
Oil, Gas &Consumable Fuels — 1.0% | ||||||||
Refineria La Pampilla SAA Relapasa(a) | 35,657,732 | 1,650,222 | ||||||
|
| |||||||
Trading Companies & Distributors — 3.5% | ||||||||
Ferreycorp SAA | 7,827,644 | 5,824,563 | ||||||
|
| |||||||
Total Common Stocks — 99.1% |
| 162,027,735 | ||||||
|
| |||||||
Short-Term Investments | ||||||||
Money Market Funds — 0.2% | ||||||||
BlackRock Cash Funds: Treasury, | 303,214 | 303,214 | ||||||
|
| |||||||
Total Short-Term Investments — 0.2% | 303,214 | |||||||
|
| |||||||
Total Investments in Securities — 99.3% | 162,330,949 | |||||||
Other Assets, Less Liabilities — 0.7% | 1,177,157 | |||||||
|
| |||||||
Net Assets — 100.0% | $ | 163,508,106 | ||||||
|
|
(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) | Annualized7-day yield as ofperiod-end. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2019, for purposes of
Section 2(a)(3) of the 1940 Act, were as follows:
| ||||||||||||||||||||||||||||
Change in | ||||||||||||||||||||||||||||
Shares | Shares | Unrealized | ||||||||||||||||||||||||||
Held at | Held at | Value at | Net Realized | Appreciation | ||||||||||||||||||||||||
Affiliated Issuer | 08/31/18 | Net Activity | 02/28/19 | 02/28/19 | Income | Gain (Loss) | (a) | (Depreciation | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
BlackRock Cash Funds: Treasury, | 163,488 | 139,726 | 303,214 | $ | 303,214 | $ | 1,069 | $ | — | $ | — | |||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
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, refer to the Notes to Financial Statements.
34 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI Peru ETF |
Fair Value Measurements (continued)
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2019. 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 | $ | 162,027,735 | $ | — | $ | — | $ | 162,027,735 | ||||||||
Money Market Funds | 303,214 | — | — | 303,214 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 162,330,949 | $ | — | $ | — | $ | 162,330,949 | |||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
S C H E D U L E O F I N V E S T M E N T S | 35 |
Schedule of Investments (unaudited) February 28, 2019 | iShares® MSCI Philippines ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Airlines — 0.5% | ||||||||
Cebu Air Inc. | 832,710 | $ | 1,353,234 | |||||
|
| |||||||
Banks — 14.9% | ||||||||
Bank of the Philippine Islands | 3,538,095 | 5,746,326 | ||||||
BDO Unibank Inc. | 7,752,314 | 19,125,972 | ||||||
East West Banking Corp.(a) | 2,216,000 | 536,433 | ||||||
Metropolitan Bank & Trust Co. | 6,256,248 | 9,193,249 | ||||||
Security Bank Corp. | 888,490 | 2,848,253 | ||||||
|
| |||||||
37,450,233 | ||||||||
Chemicals — 1.0% | ||||||||
D&L Industries Inc. | 11,238,000 | 2,537,893 | ||||||
|
| |||||||
Construction & Engineering — 0.4% | ||||||||
Megawide Construction Corp. | 2,877,600 | 1,112,761 | ||||||
|
| |||||||
Diversified Financial Services — 11.6% | ||||||||
Ayala Corp. | 993,018 | 17,759,893 | ||||||
GT Capital Holdings Inc. | 352,544 | 6,509,658 | ||||||
Metro Pacific Investments Corp. | 55,733,450 | 5,064,718 | ||||||
|
| |||||||
29,334,269 | ||||||||
Electric Utilities — 2.5% | ||||||||
Manila Electric Co. | 889,210 | 6,320,062 | ||||||
|
| |||||||
Electronic Equipment, Instruments & Components — 0.2% | ||||||||
Integrated Micro-Electronics Inc. | 2,165,800 | 547,731 | ||||||
|
| |||||||
Food & Staples Retailing — 0.5% | ||||||||
Cosco Capital Inc. | 8,590,700 | 1,303,886 | ||||||
|
| |||||||
Food Products — 4.1% | ||||||||
Century Pacific Food Inc. | 4,175,000 | 1,235,064 | ||||||
Universal Robina Corp. | 3,464,948 | 9,117,931 | ||||||
|
| |||||||
10,352,995 | ||||||||
Hotels, Restaurants & Leisure — 5.4% | ||||||||
Bloomberry Resorts Corp. | 15,168,765 | 3,343,463 | ||||||
Jollibee Foods Corp. | 1,710,131 | 10,177,462 | ||||||
|
| |||||||
13,520,925 | ||||||||
Independent Power and Renewable Electricity Producers — 2.4% | ||||||||
Aboitiz Power Corp. | 5,790,135 | 3,901,512 | ||||||
First Gen Corp. | 5,009,837 | 2,058,373 | ||||||
|
| |||||||
5,959,885 | ||||||||
Industrial Conglomerates — 19.2% | ||||||||
Aboitiz Equity Ventures Inc. | 7,750,637 | 9,141,316 | ||||||
Alliance Global Group Inc. | 15,780,239 | 4,179,994 | ||||||
DMCI Holdings Inc. | 15,661,560 | 3,452,084 | ||||||
JG Summit Holdings Inc. | 11,262,492 | 14,415,641 | ||||||
SM Investments Corp. | 946,686 | 17,205,817 | ||||||
|
| |||||||
48,394,852 |
Security | Shares | Value | ||||||
Oil, Gas & Consumable Fuels — 1.1% | ||||||||
Petron Corp. | 9,194,100 | $ | 1,185,705 | |||||
Pilipinas Shell Petroleum Corp. | 1,585,100 | 1,500,206 | ||||||
|
| |||||||
2,685,911 | ||||||||
Real Estate Management & Development — 26.4% | ||||||||
Ayala Land Inc. | 28,949,500 | 24,628,345 | ||||||
DoubleDragon Properties Corp.(a) | 2,793,590 | 1,166,697 | ||||||
Filinvest Land Inc. | 38,237,590 | 1,094,192 | ||||||
Megaworld Corp. | 44,342,760 | 4,432,561 | ||||||
Robinsons Land Corp. | 8,171,606 | 3,697,130 | ||||||
SM Prime Holdings Inc. | 39,725,935 | 29,456,489 | ||||||
Vista Land & Lifescapes Inc. | 15,151,100 | 2,167,791 | ||||||
|
| |||||||
66,643,205 | ||||||||
Specialty Retail — 0.6% | ||||||||
Wilcon Depot Inc. | 5,724,800 | 1,633,760 | ||||||
|
| |||||||
Transportation Infrastructure — 3.5% | ||||||||
International Container Terminal Services Inc. | 3,578,973 | 8,027,086 | ||||||
MacroAsia Corp. | 1,874,520 | 697,327 | ||||||
|
| |||||||
8,724,413 | ||||||||
Water Utilities — 1.0% | ||||||||
Manila Water Co. Inc. | 4,872,229 | 2,543,507 | ||||||
|
| |||||||
Wireless Telecommunication Services — 4.6% | ||||||||
Globe Telecom Inc. | 130,740 | 4,802,900 | ||||||
PLDT Inc. | 339,639 | 6,763,886 | ||||||
|
| |||||||
11,566,786 | ||||||||
|
| |||||||
Total Common Stocks — 99.9% |
| 251,986,308 | ||||||
|
| |||||||
Short-Term Investments | ||||||||
Money Market Funds — 0.1% | ||||||||
BlackRock Cash Funds: Treasury, | 65,154 | 65,154 | ||||||
|
| |||||||
Total Short-Term Investments — 0.1% | 65,154 | |||||||
|
| |||||||
Total Investments in Securities — 100.0% | 252,051,462 | |||||||
Other Assets, Less Liabilities — 0.0% | 121,931 | |||||||
|
| |||||||
Net Assets — 100.0% | $ | 252,173,393 | ||||||
|
|
(a) | Non-income producing security. |
(b) | Affiliate of the Fund. |
(c) | Annualized7-day yield as ofperiod-end. |
36 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI Philippines ETF |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2019, for purposes of
Section 2(a)(3) of the 1940 Act, were as follows:
| ||||||||||||||||||||||||||||
Change in | ||||||||||||||||||||||||||||
Shares | Shares | Unrealized | ||||||||||||||||||||||||||
Held at | Held at | Value at | Net Realized | Appreciation | ||||||||||||||||||||||||
Affiliated Issuer | 08/31/18 | Net Activity | 02/28/19 | 02/28/19 | Income | Gain (Loss) | (a) | (Depreciation | ) | |||||||||||||||||||
| ||||||||||||||||||||||||||||
BlackRock Cash Funds: Treasury, | 83,914 | (18,760 | ) | 65,154 | $ | 65,154 | $ | 800 | $ | — | $ | — | ||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
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, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2019. 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 | $ | 251,986,308 | $ | — | $ | — | $ | 251,986,308 | ||||||||
Money Market Funds | 65,154 | — | — | 65,154 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 252,051,462 | $ | — | $ | — | $ | 252,051,462 | |||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
S C H E D U L E O F I N V E S T M E N T S | 37 |
Schedule of Investments (unaudited) February 28, 2019 | iShares® MSCI Poland ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
| |||||||
Banks — 31.8% |
| |||||||
Alior Bank SA(a)(b) | 384,787 | $ | 5,977,768 | |||||
Bank Handlowy w Warszawie SA | 157,455 | 2,746,138 | ||||||
Bank Millennium SA(a)(b) | 2,765,137 | 6,330,140 | ||||||
Bank Polska Kasa Opieki SA | 705,902 | 21,166,785 | ||||||
mBank SA | 66,523 | 7,524,661 | ||||||
Powszechna Kasa Oszczednosci Bank Polski SA | 3,761,621 | 37,870,071 | ||||||
Santander Bank Polska SA | 131,680 | 13,117,468 | ||||||
|
| |||||||
94,733,031 | ||||||||
Capital Markets — 0.5% |
| |||||||
Warsaw Stock Exchange | 146,184 | 1,555,272 | ||||||
|
| |||||||
Chemicals — 1.6% |
| |||||||
Ciech SA | 136,201 | 2,144,756 | ||||||
Grupa Azoty SA(b) | 214,674 | 2,528,250 | ||||||
|
| |||||||
4,673,006 | ||||||||
Construction & Engineering — 0.6% |
| |||||||
Budimex SA | 56,567 | 1,724,631 | ||||||
|
| |||||||
Consumer Finance — 1.1% |
| |||||||
KRUK SA | 77,308 | 3,375,895 | ||||||
|
| |||||||
Diversified Telecommunication Services — 1.5% |
| |||||||
Orange Polska SA(a) | 3,060,283 | 4,389,767 | ||||||
|
| |||||||
Electric Utilities — 6.7% |
| |||||||
Enea SA(a) | 1,053,473 | 2,810,377 | ||||||
Energa SA(a) | 994,684 | 2,579,834 | ||||||
PGE Polska Grupa Energetyczna SA(a) | 3,732,830 | 11,459,793 | ||||||
Tauron Polska Energia SA(a) | 4,954,306 | 3,055,057 | ||||||
|
| |||||||
19,905,061 | ||||||||
Entertainment — 4.6% |
| |||||||
CD Projekt SA(a) | 271,665 | 13,667,730 | ||||||
|
| |||||||
Food & Staples Retailing — 2.8% |
| |||||||
Dino Polska SA(a)(c) | 220,708 | 6,250,035 | ||||||
Eurocash SA(b) | 407,394 | 2,196,272 | ||||||
|
| |||||||
8,446,307 | ||||||||
Health Care Providers & Services — 0.3% |
| |||||||
Neuca SA | 12,883 | 886,484 | ||||||
|
| |||||||
Insurance — 9.4% |
| |||||||
Powszechny Zaklad Ubezpieczen SA | 2,583,217 | 27,893,411 | ||||||
|
| |||||||
Machinery — 0.5% |
| |||||||
Famur SA | 1,265,008 | 1,633,780 | ||||||
|
| |||||||
Media — 2.6% |
| |||||||
Cyfrowy Polsat SA(a) | 1,140,624 | 7,703,778 | ||||||
|
| |||||||
Metals & Mining — 6.5% |
| |||||||
Boryszew SA(a) | 489,198 | 587,789 |
Security | Shares | Value | ||||||
Metals & Mining (continued) | ||||||||
Jastrzebska Spolka Weglowa SA(a) | 241,399 | $ | 3,679,921 | |||||
KGHM Polska Miedz SA(a) | 526,132 | 14,105,378 | ||||||
Stalprodukt SA | 10,134 | 871,655 | ||||||
|
| |||||||
19,244,743 | ||||||||
Oil, Gas & Consumable Fuels — 20.0% |
| |||||||
Grupa Lotos SA | 418,934 | 10,552,901 | ||||||
Lubelski Wegiel Bogdanka SA(a) | 69,427 | 946,273 | ||||||
Polski Koncern Naftowy ORLEN SA | 1,285,542 | 34,668,977 | ||||||
Polskie Gornictwo Naftowe i Gazownictwo SA | 7,342,689 | 13,447,508 | ||||||
|
| |||||||
59,615,659 | ||||||||
Road & Rail — 0.6% |
| |||||||
PKP Cargo SA(a) | 156,912 | 1,773,228 | ||||||
|
| |||||||
Software — 1.7% |
| |||||||
Asseco Poland SA | 351,249 | 4,936,171 | ||||||
|
| |||||||
Textiles, Apparel & Luxury Goods — 6.2% |
| |||||||
CCC SA | 129,367 | 6,282,611 | ||||||
LPP SA | 5,643 | 12,179,083 | ||||||
|
| |||||||
18,461,694 | ||||||||
Wireless Telecommunication Services — 1.0% |
| |||||||
PLAY Communications SA(c) | 531,757 | 3,011,671 | ||||||
|
| |||||||
Total Common Stocks — 100.0% | 297,631,319 | |||||||
|
| |||||||
Short-Term Investments | ||||||||
Money Market Funds — 0.8% | ||||||||
BlackRock Cash Funds: Institutional, | 2,353,586 | 2,354,528 | ||||||
BlackRock Cash Funds: Treasury, | 104,114 | 104,114 | ||||||
|
| |||||||
2,458,642 | ||||||||
|
| |||||||
Total Short-Term Investments — 0.8% |
| 2,458,642 | ||||||
|
| |||||||
Total Investments in Securities — 100.8% |
| 300,089,961 | ||||||
Other Assets, Less Liabilities — (0.8)% | (2,356,354 | ) | ||||||
|
| |||||||
Net Assets — 100.0% | $ | 297,733,607 | ||||||
|
|
(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) | Annualized7-day yield as ofperiod-end. |
(f) | All or a portion of this security was purchased with cash collateral received from loaned securities. |
38 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI Poland ETF |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2019, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Affiliated Issuer | | Shares Held at 08/31/18 |
| Net Activity | | Shares Held at 02/28/19 |
| | Value at 02/28/19 |
| Income | | Net Realized Gain (Loss) | (a) | | Change in Unrealized Appreciation (Depreciation) |
| |||||||||||
BlackRock Cash Funds: Institutional, | 1,985,114 | 368,472 | 2,353,586 | $ | 2,354,528 | $ | 32,128 | (b) | $ | 1,070 | $ | 494 | ||||||||||||||||
BlackRock Cash Funds: Treasury, | 128,703 | (24,589 | ) | 104,114 | 104,114 | 2,081 | — | — | ||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
$ | 2,458,642 | $ | 34,209 | $ | 1,070 | $ | 494 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Includes 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, and less fees paid to BTC as securities lending agent. |
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, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2019. 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 | $ | 297,631,319 | $ | — | $ | — | $ | 297,631,319 | ||||||||
Money Market Funds | 2,458,642 | — | — | 2,458,642 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 300,089,961 | $ | — | $ | — | $ | 300,089,961 | |||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
S C H E D U L E O F I N V E S T M E N T S | 39 |
Schedule of Investments (unaudited) February 28, 2019 | iShares® MSCI Qatar ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
| |||||||
Air Freight & Logistics — 1.5% | ||||||||
Gulf Warehousing Co | 70,751 | $ | 812,703 | |||||
|
| |||||||
Banks — 46.2% | ||||||||
Commercial Bank PQSC (The) | 218,620 | 2,398,212 | ||||||
Doha Bank QPSC | 217,514 | 1,219,816 | ||||||
Masraf Al Rayan QSC | 231,013 | 2,331,933 | ||||||
Qatar First Bank(a) | 475,582 | 528,207 | ||||||
Qatar International Islamic Bank QSC | 69,330 | 1,334,254 | ||||||
Qatar Islamic Bank SAQ | 118,792 | 4,718,533 | ||||||
Qatar National Bank QPSC | 252,259 | 12,987,319 | ||||||
|
| |||||||
25,518,274 | ||||||||
Construction Materials — 1.5% | ||||||||
Qatar National Cement Co. QSC | 47,801 | 810,740 | ||||||
|
| |||||||
Diversified Financial Services — 0.8% | ||||||||
Salam International Investment Ltd. QSC(a) | 357,749 | 434,525 | ||||||
|
| |||||||
Diversified Telecommunication Services — 3.5% | ||||||||
Ooredoo QPSC | 104,572 | 1,916,367 | ||||||
|
| |||||||
Energy Equipment &Services — 1.2% | ||||||||
Gulf International Services QSC(a) | 177,201 | 682,046 | ||||||
|
| |||||||
Food &Staples Retailing —1.3% | ||||||||
Al Meera Consumer Goods Co. QSC | 17,089 | 722,268 | ||||||
|
| |||||||
Health Care Providers &Services — 1.4% | ||||||||
Medicare Group | 43,426 | 790,589 | ||||||
|
| |||||||
Industrial Conglomerates — 14.2% | ||||||||
Industries Qatar QSC | 182,230 | 6,630,171 | ||||||
Mannai Corp. QSC | 36,619 | 490,858 | ||||||
Qatar Industrial Manufacturing Co. QSC | 65,855 | 738,628 | ||||||
|
| |||||||
7,859,657 | ||||||||
Insurance — 3.3% | ||||||||
Qatar Insurance Co. SAQ | 202,949 | 1,859,880 | ||||||
|
|
Security | Shares | Value | ||||||
Marine — 2.8% | ||||||||
Qatar Navigation QSC | 83,314 | $ | 1,538,420 | |||||
|
| |||||||
Multi-Utilities — 4.4% | ||||||||
Qatar Electricity & Water Co. QSC | 50,048 | 2,416,488 | ||||||
|
| |||||||
Oil, Gas & Consumable Fuels — 3.9% | ||||||||
Qatar Gas Transport Co. Ltd. | 390,791 | 2,138,099 | ||||||
|
| |||||||
Real Estate Management & Development — 11.3% | ||||||||
Barwa Real Estate Co. | 214,323 | 2,321,759 | ||||||
Ezdan Holding Group QSC(a) | 667,503 | 2,373,831 | ||||||
Mazaya Qatar Real Estate Development QSC(a) | 219,099 | 419,558 | ||||||
United Development Co. QSC | 295,239 | 1,117,797 | ||||||
|
| |||||||
6,232,945 | ||||||||
Wireless Telecommunication Services — 2.1% | ||||||||
Vodafone Qatar QSC(a) | 528,158 | 1,186,206 | ||||||
|
| |||||||
Total Common Stocks — 99.4% | 54,919,207 | |||||||
|
| |||||||
Short-Term Investments | ||||||||
Money Market Funds — 0.7% | ||||||||
BlackRock Cash Funds: Treasury, | 368,668 | 368,668 | ||||||
|
| |||||||
Total Short-Term Investments — 0.7% | 368,668 | |||||||
|
| |||||||
Total Investments in Securities — 100.1% | 55,287,875 | |||||||
Other Assets, Less Liabilities — (0.1)% | (28,647 | ) | ||||||
|
| |||||||
Net Assets — 100.0% | $ | 55,259,228 | ||||||
|
|
(a) | Non-income producing security. |
(b) | Affiliate of the Fund. |
(c) | Annualized7-day yield as ofperiod-end. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2019, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Affiliated Issuer | | Shares Held at 08/31/18 |
| Net Activity | | Shares Held at 02/28/19 |
| | Value at 02/28/19 |
| Income | | Net Realized Gain (Loss | )(a) | | Change in Unrealized Appreciation (Depreciation) |
| |||||||||||
BlackRock Cash Funds: Treasury, | 25,912 | 342,756 | 368,668 | $ | 368,668 | $ | 553 | $ | — | $ | — | |||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
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, refer to the Notes to Financial Statements.
40 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI Qatar ETF |
Fair Value Measurements (continued)
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2019. 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 | $ | 54,919,207 | $ | — | $ | — | $ | 54,919,207 | ||||||||
Money Market Funds | 368,668 | — | — | 368,668 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 55,287,875 | $ | — | $ | — | $ | 55,287,875 | |||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
S C H E D U L E O F I N V E S T M E N T S | 41 |
Schedule of Investments (unaudited) February 28, 2019 | iShares MSCI Saudi Arabia ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Banks — 41.4% | ||||||||
Al Rajhi Bank | 1,305,406 | $ | 34,946,808 | |||||
Alinma Bank | 1,220,765 | 7,857,738 | ||||||
Bank AlBilad | 497,973 | 3,857,271 | ||||||
BankAl-Jazira | 686,709 | 2,944,333 | ||||||
Banque Saudi Fransi | 604,300 | 5,816,852 | ||||||
National Commercial Bank | 1,969,807 | 27,364,631 | ||||||
Riyad Bank | 1,915,449 | 11,389,474 | ||||||
Samba Financial Group | 1,225,225 | 11,908,075 | ||||||
Saudi British Bank (The) | 381,072 | 3,708,755 | ||||||
|
| |||||||
109,793,937 | ||||||||
Building Products — 0.2% | ||||||||
Saudi Ceramic Co.(a) | 71,245 | 378,418 | ||||||
Chemicals — 25.6% | ||||||||
Advanced Petrochemical Co. | 166,165 | 2,459,012 | ||||||
Alujain Corp.(a) | 75,770 | 479,226 | ||||||
National Industrialization Co.(a) | 563,644 | 2,494,831 | ||||||
Sahara Petrochemical Co. | 380,018 | 1,617,206 | ||||||
Saudi Arabian Fertilizer Co. | 286,216 | 6,280,901 | ||||||
Saudi Basic Industries Corp. | 1,214,486 | 39,637,124 | ||||||
Saudi Industrial Investment Group | 379,075 | 2,526,931 | ||||||
Saudi International Petrochemical Co. | 317,245 | 1,695,199 | ||||||
Saudi Kayan Petrochemical Co.(a) | 1,122,623 | 4,232,642 | ||||||
Yanbu National Petrochemical Co. | 352,318 | 6,510,229 | ||||||
|
| |||||||
67,933,301 | ||||||||
Construction Materials — 3.2% | ||||||||
Arabian Cement Co./Saudi Arabia | 98,791 | 637,999 | ||||||
City Cement Co. | 196,816 | 540,538 | ||||||
Eastern Province Cement Co. | 90,772 | 580,887 | ||||||
Najran Cement Co.(a) | 192,376 | 428,317 | ||||||
Northern Region Cement Co.(a) | 198,007 | 464,613 | ||||||
Qassim Cement Co. (The) | 84,505 | 865,250 | ||||||
Saudi Cement Co. | 131,957 | 1,991,485 | ||||||
Southern Province Cement Co. | 114,244 | 1,276,367 | ||||||
Yamama Cement Co.(a) | 194,929 | 726,628 | ||||||
Yanbu Cement Co. | 143,688 | 1,072,770 | ||||||
|
| |||||||
8,584,854 | ||||||||
Diversified Financial Services — 0.2% | ||||||||
Aseer Trading Tourism & Manufacturing Co.(a) | 151,110 | 378,747 | ||||||
|
| |||||||
Diversified Telecommunication Services — 4.5% | ||||||||
Saudi Telecom Co. | 448,273 | 11,881,114 | ||||||
|
| |||||||
Electric Utilities — 2.3% | ||||||||
Saudi Electricity Co. | 1,389,963 | 6,122,679 | ||||||
|
| |||||||
Food &Staples Retailing — 0.5% | ||||||||
Abdullah Al Othaim Markets Co. | 79,203 | 1,408,626 | ||||||
|
| |||||||
Food Products — 4.8% | ||||||||
Almarai Co. JSC | 503,665 | 7,238,669 | ||||||
Halwani Brothers Co. | 29,341 | 349,321 | ||||||
National Agriculture Development Co. (The)(a) | 84,867 | 614,380 | ||||||
Saudia Dairy & Foodstuff Co. | 30,628 | 833,004 | ||||||
Savola Group (The) | 443,207 | 3,758,044 | ||||||
|
| |||||||
12,793,418 | ||||||||
Gas Utilities — 0.2% | ||||||||
National Gas & Industrialization Co. | 76,206 | 599,431 | ||||||
|
|
Security | Shares | Value | ||||||
Health Care Providers & Services — 1.9% | ||||||||
Al Hammadi Co. for Development and | 115,017 | $ | 766,709 | |||||
Dallah Healthcare Co. | 58,512 | 795,689 | ||||||
Middle East Healthcare Co. | 67,875 | 560,143 | ||||||
Mouwasat Medical Services Co. | 86,237 | 1,761,370 | ||||||
National Medical Care Co. | 46,303 | 592,623 | ||||||
Saudi Chemical Co. | 65,044 | 570,599 | ||||||
|
| |||||||
5,047,133 | ||||||||
Hotels, Restaurants & Leisure — 1.5% | ||||||||
Al Tayyar Travel Group Holding Co. | 188,601 | 1,215,986 | ||||||
Dur Hospitality Co. | 81,904 | 441,148 | ||||||
Herfy Food Services Co. | 46,776 | 613,644 | ||||||
Saudi Airlines Catering Co. | 71,276 | 1,594,533 | ||||||
|
| |||||||
3,865,311 | ||||||||
Insurance — 1.7% | ||||||||
Al Rajhi Co. for Cooperative Insurance(a) | 36,514 | 728,265 | ||||||
Bupa Arabia for Cooperative Insurance Co. | 88,276 | 2,104,303 | ||||||
Co. for Cooperative Insurance (The)(a) | 108,262 | 1,685,843 | ||||||
|
| |||||||
4,518,411 | ||||||||
Media — 0.5% | ||||||||
Saudi Research & Marketing Group(a) | 64,345 | 1,415,458 | ||||||
|
| |||||||
Metals & Mining —3.7% | ||||||||
Saudi Arabian Mining Co.(a) | 676,763 | 9,870,795 | ||||||
|
| |||||||
Oil, Gas & Consumable Fuels — 0.8% | ||||||||
Rabigh Refining & Petrochemical Co. | 381,365 | 2,021,554 | ||||||
|
| |||||||
Pharmaceuticals — 0.3% | ||||||||
Saudi Pharmaceutical Industries & Medical | ||||||||
Appliances Corp. | 112,904 | 802,296 | ||||||
|
| |||||||
Real Estate Management & Development — 2.2% | ||||||||
Arriyadh Development Co. | 131,919 | 705,613 | ||||||
Dar Al Arkan Real Estate Development Co. | 915,360 | 2,587,176 | ||||||
Emaar Economic City(a) | 733,844 | 1,896,076 | ||||||
Saudi Real Estate Co. | 193,799 | 656,271 | ||||||
|
| |||||||
5,845,136 | ||||||||
Road & Rail — 0.4% | ||||||||
Saudi Public Transport Co. | 131,961 | 529,906 | ||||||
United International Transportation Co. | 73,509 | 574,297 | ||||||
|
| |||||||
1,104,203 | ||||||||
Specialty Retail — 2.2% | ||||||||
Fawaz Abdulaziz Al Hokair & Co.(a) | 142,518 | 805,626 | ||||||
Jarir Marketing Co. | 99,122 | 3,911,650 | ||||||
Saudi Co. For Hardware CJSC | 27,947 | 518,648 | ||||||
United Electronics Co. | 41,035 | 664,158 | ||||||
|
| |||||||
5,900,082 | ||||||||
Wireless Telecommunication Services — 1.8% | ||||||||
Etihad Etisalat Co.(a) | 642,601 | 3,402,897 | ||||||
Mobile Telecommunications Co.(a) | 494,794 | 1,256,000 | ||||||
|
| |||||||
4,658,897 | ||||||||
|
| |||||||
Total Common Stocks — 99.9% |
| 264,923,801 | ||||||
|
| |||||||
Total Investments in Securities — 99.9% |
| 264,923,801 | ||||||
Other Assets, Less Liabilities — 0.1% |
| 157,837 | ||||||
|
| |||||||
Net Assets — 100.0% |
| $ | 265,081,638 | |||||
|
|
42 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI Saudi Arabia ETF |
(a) | Non-income producing security. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2019, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Affiliated Issuer | Shares Held at 08/31/18 | Net Activity | Shares Held at 02/28/19 | Value at 02/28/19 | Income | Net Realized Gain (Loss)(a) | Change in Unrealized Appreciation (Depreciation) | |||||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 940,172 | (940,172 | ) | — | $ | — | $ | 1,256 | $ | — | $ | — | ||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
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, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2019. 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 | $ | 264,923,801 | $ | — | $ | — | $ | 264,923,801 | ||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
S C H E D U L E O F I N V E S T M E N T S | 43 |
Schedule of Investments (unaudited) February 28, 2019 | iShares® MSCI UAE ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Airlines — 2.2% | ||||||||
Air Arabia PJSC | 4,275,134 | $ | 1,103,410 | |||||
|
| |||||||
Banks — 39.7% | ||||||||
Abu Dhabi Commercial Bank PJSC | 1,610,162 | 4,177,741 | ||||||
Ajman Bank PJSC | 3,231,732 | 816,512 | ||||||
Dubai Islamic Bank PJSC | 1,523,523 | 2,165,203 | ||||||
First Abu Dhabi Bank PJSC | 2,512,617 | 10,397,980 | ||||||
Union National Bank PJSC | 1,449,474 | 2,202,032 | ||||||
|
| |||||||
19,759,468 | ||||||||
Building Products — 0.9% | ||||||||
National Central Cooling Co. PJSC | 1,014,056 | 452,777 | ||||||
|
| |||||||
Capital Markets — 2.7% | ||||||||
Dubai Financial Market PJSC | 4,317,972 | 986,327 | ||||||
SHUAA Capital PSC | 1,909,539 | 372,758 | ||||||
|
| |||||||
1,359,085 | ||||||||
Construction & Engineering — 2.4% | ||||||||
Arabtec Holding PJSC | 1,585,148 | 932,186 | ||||||
Drake & Scull International PJSC(a)(b) | 2,972,998 | 256,019 | ||||||
|
| |||||||
1,188,205 | ||||||||
Diversified Financial Services — 3.9% | ||||||||
Al Waha Capital PJSC | 2,229,537 | 880,160 | ||||||
Amanat Holdings PJSC | 3,057,592 | 832,451 | ||||||
GulfGeneral Investment Co.(a)(b) | 7,295,803 | 236,374 | ||||||
|
| |||||||
1,948,985 | ||||||||
Diversified Telecommunication Services — 14.3% | ||||||||
Emirates Telecommunications Group Co. PJSC | 1,554,139 | 7,142,354 | ||||||
|
| |||||||
Energy Equipment & Services — 1.5% | ||||||||
Lamprell PLC(b) | 924,894 | 738,121 | ||||||
|
| |||||||
Food Products — 1.1% | ||||||||
Agthia Group PJSC | 541,045 | 564,172 | ||||||
|
| |||||||
Health Care Providers & Services — 4.3% | ||||||||
NMC Health PLC | 59,892 | 2,154,070 | ||||||
|
| |||||||
Hotels, Restaurants & Leisure — 1.6% | ||||||||
DXB Entertainments PJSC(b) | 10,726,055 | 768,024 | ||||||
|
| |||||||
Industrial Conglomerates — 2.6% | ||||||||
Dubai Investments PJSC | 3,680,781 | 1,282,712 | ||||||
|
|
Security | Shares | Value | ||||||
Oil, Gas & Consumable Fuels — 2.8% | ||||||||
Dana Gas PJSC | 5,657,870 | $ | 1,381,734 | |||||
|
| |||||||
Real Estate Management & Development — 15.0% | ||||||||
Aldar Properties PJSC | 4,664,849 | 2,260,667 | ||||||
DAMAC Properties Dubai Co. PJSC | 3,272,980 | 1,229,707 | ||||||
Deyaar Development PJSC(b) | 313,900 | 30,681 | ||||||
Emaar Development PJSC | 28,966 | 30,756 | ||||||
Emaar Malls PJSC | 68,761 | 32,761 | ||||||
Emaar Properties PJSC | 1,812,284 | 2,417,694 | ||||||
Eshraq Properties Co. PJSC(b) | 4,549,871 | 542,566 | ||||||
RAK Properties PJSC | 3,913,871 | 493,363 | ||||||
Union Properties PJSC(b) | 4,282,835 | 451,254 | ||||||
|
| |||||||
7,489,449 | ||||||||
Thrifts & Mortgage Finance — 0.5% | ||||||||
Amlak Finance PJSC(b) | 2,388,240 | 234,728 | ||||||
|
| |||||||
Transportation Infrastructure — 4.4% | ||||||||
DP World Ltd. | 136,770 | 2,189,688 | ||||||
|
| |||||||
Total Common Stocks — 99.9% | 49,756,982 | |||||||
|
| |||||||
Short-Term Investments | ||||||||
Money Market Funds — 0.2% | ||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 2.33%(c)(d) | 78,274 | 78,274 | ||||||
|
| |||||||
Total Short-Term Investments — 0.2% | 78,274 | |||||||
|
| |||||||
Total Investments in Securities — 100.1% | 49,835,256 | |||||||
Other Assets, Less Liabilities — (0.1)% | (25,461 | ) | ||||||
|
| |||||||
Net Assets — 100.0% | $ | 49,809,795 | ||||||
|
|
(a) | Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. |
(b) | Non-income producing security. |
(c) | Affiliate of the Fund. |
(d) | Annualized7-day yield as ofperiod-end. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2019, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Affiliated Issuer | Shares Held at 08/31/18 | Net Activity | Shares 02/28/19 | Value at 02/28/19 | Income | Net Realized Gain (Loss)(a) | Change in Unrealized Appreciation (Depreciation) | |||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | — | — | — | $ | — | $ | 14 | (b) | $ | — | $ | — | ||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 120,744 | (42,470 | ) | 78,274 | 78,274 | 943 | — | — | ||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
$ | 78,274 | $ | 957 | $ | — | $ | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Includes 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, and less fees paid to BTC as securities lending agent. |
44 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI UAE ETF |
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, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2019. 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 | $ | 49,264,589 | $ | — | $ | 492,393 | $ | 49,756,982 | ||||||||
Money Market Funds | 78,274 | — | — | 78,274 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 49,342,863 | $ | — | $ | 492,393 | $ | 49,835,256 | |||||||||
|
|
|
|
|
|
|
|
S C H E D U L E O F I N V E S T M E N T S | 45 |
Statements of Assets and Liabilities (unaudited)
February 28, 2019
iShares | ||||||||||||||||
MSCI | ||||||||||||||||
Argentina | iShares | iShares | ||||||||||||||
and Global | MSCI Brazil | MSCI China | ||||||||||||||
Exposure | Small-Cap | iShares | Small-Cap | |||||||||||||
ETF | ETF | MSCI China ETF | ETF | |||||||||||||
| ||||||||||||||||
ASSETS | ||||||||||||||||
Investments in securities, at value (including securities on loan)(a): | ||||||||||||||||
Unaffiliated(b) | $ | 24,128,013 | $ | 91,439,764 | $ | 4,373,345,671 | $ | 22,003,499 | ||||||||
Affiliated(c) | 153,832 | 96,656 | 678,280,837 | 3,240,932 | ||||||||||||
Foreign currency, at value(d) | 22,905 | 101,196 | 5,808,233 | 41,922 | ||||||||||||
Foreign currency pledged: | ||||||||||||||||
Futures contracts(e) | — | — | 142,679 | — | ||||||||||||
Receivables: | ||||||||||||||||
Investments sold | 1,456,061 | 122,317 | 72,586,428 | 212,939 | ||||||||||||
Securities lending income — Affiliated | 54 | — | 222,823 | 10,804 | ||||||||||||
Dividends | 16 | 286,149 | 135,095 | 3,502 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total assets | 25,760,881 | 92,046,082 | 5,130,521,766 | 25,513,598 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
LIABILITIES | ||||||||||||||||
Collateral on securities loaned, at value | 152,700 | — | 677,713,527 | 3,186,694 | ||||||||||||
Payables: | ||||||||||||||||
Investments purchased | 1,245,307 | 182,763 | 74,922,268 | 220,951 | ||||||||||||
Variation margin on futures contracts | — | — | 22,692 | — | ||||||||||||
Capital shares redeemed | 202,512 | — | — | — | ||||||||||||
Investment advisory fees | 12,019 | 41,172 | 1,895,578 | 8,788 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total liabilities | 1,612,538 | 223,935 | 754,554,065 | 3,416,433 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS | $ | 24,148,343 | $ | 91,822,147 | $ | 4,375,967,701 | $ | 22,097,165 | ||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS CONSIST OF: | ||||||||||||||||
Paid-in capital | $ | 32,149,199 | $ | 114,443,723 | $ | 4,148,629,471 | $ | 32,105,816 | ||||||||
Accumulated earnings (loss) | (8,000,856 | ) | (22,621,576 | ) | 227,338,230 | (10,008,651 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS | $ | 24,148,343 | $ | 91,822,147 | $ | 4,375,967,701 | $ | 22,097,165 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Shares outstanding | 1,000,000 | 5,750,000 | 72,000,000 | 500,000 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net asset value | $ | 24.15 | $ | 15.97 | $ | 60.78 | $ | 44.19 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Shares authorized | Unlimited | Unlimited | Unlimited | Unlimited | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Par value | None | None | None | None | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
(a) Securities loaned, at value | $ | 146,016 | $ | — | $ | 655,566,540 | $ | 2,781,008 | ||||||||
(b) Investments, at cost — Unaffiliated | $ | 30,676,098 | $ | 67,464,209 | $ | 3,762,731,753 | $ | 26,540,626 | ||||||||
(c) Investments, at cost — Affiliated | $ | 153,804 | $ | 96,656 | $ | 678,100,444 | $ | 3,239,919 | ||||||||
(d) Foreign currency, at cost | $ | 22,766 | $ | 101,778 | $ | 5,786,070 | $ | 41,920 | ||||||||
(e) Foreign currency collateral pledged, at cost | $ | — | $ | — | $ | 142,796 | $ | — |
See notes to financial statements.
46 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Statements of Assets and Liabilities (unaudited) (continued)
February 28, 2019
iShares | iShares | |||||||||||||||
MSCI | iShares | MSCI | iShares | |||||||||||||
Indonesia | MSCI Peru | Philippines | MSCI Poland | |||||||||||||
ETF | ETF | ETF | ETF | |||||||||||||
| ||||||||||||||||
ASSETS | ||||||||||||||||
Investments in securities, at value (including securities on loan)(a): | ||||||||||||||||
Unaffiliated(b) | $ | 662,577,307 | $ | 162,027,735 | $ | 251,986,308 | $ | 297,631,319 | ||||||||
Affiliated(c) | 234,474 | 303,214 | 65,154 | 2,458,642 | ||||||||||||
Foreign currency, at value(d) | 520,933 | 1,643,621 | 269,175 | 110,000 | ||||||||||||
Receivables: | ||||||||||||||||
Investments sold | 981,109 | 5,751,010 | 3,667,181 | 1,524,936 | ||||||||||||
Securities lending income — Affiliated | — | — | — | 7,666 | ||||||||||||
Dividends | 672 | 896 | 138,922 | 239 | ||||||||||||
Tax reclaims | — | — | — | 9,757 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total assets | 664,314,495 | 169,726,476 | 256,126,740 | 301,742,559 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
LIABILITIES | ||||||||||||||||
Collateral on securities loaned, at value | — | — | — | 2,345,526 | ||||||||||||
Payables: | ||||||||||||||||
Investments purchased | 421,930 | 6,147,600 | 3,841,302 | 1,530,037 | ||||||||||||
Capital shares redeemed | 4,420 | — | — | 2,623 | ||||||||||||
Investment advisory fees | 301,328 | 70,572 | 112,045 | 130,766 | ||||||||||||
Foreign taxes | — | 198 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total liabilities | 727,678 | 6,218,370 | 3,953,347 | 4,008,952 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS | $ | 663,586,817 | $ | 163,508,106 | $ | 252,173,393 | $ | 297,733,607 | ||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS CONSIST OF: | ||||||||||||||||
Paid-in capital | $ | 813,470,443 | $ | 297,253,099 | $ | 324,908,679 | $ | 409,860,421 | ||||||||
Accumulated loss | (149,883,626 | ) | (133,744,993 | ) | (72,735,286 | ) | (112,126,814 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS | $ | 663,586,817 | $ | 163,508,106 | $ | 252,173,393 | $ | 297,733,607 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Shares outstanding | 25,450,000 | 4,250,000 | 7,450,000 | 12,700,000 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net asset value | $ | 26.07 | $ | 38.47 | $ | 33.85 | $ | 23.44 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Shares authorized | Unlimited | Unlimited | Unlimited | Unlimited | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Par value | None | None | None | None | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
(a) Securities loaned, at value | $ | — | $ | — | $ | — | $ | 2,287,558 | ||||||||
(b) Investments, at cost — Unaffiliated | $ | 732,560,319 | $ | 203,480,211 | $ | 278,405,528 | $ | 359,343,679 | ||||||||
(c) Investments, at cost — Affiliated | $ | 234,474 | $ | 303,214 | $ | 65,154 | $ | 2,457,855 | ||||||||
(d) Foreign currency, at cost | $ | 511,765 | $ | 1,641,561 | $ | 263,554 | $ | 110,838 |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S | 47 |
Statements of Assets and Liabilities (unaudited) (continued)
February 28, 2019
iShares | iShares | iShares | ||||||||||
MSCI Qatar | MSCI Saudi | MSCI UAE | ||||||||||
ETF | Arabia ETF | ETF | ||||||||||
| ||||||||||||
ASSETS | ||||||||||||
Investments in securities, at value: | ||||||||||||
Unaffiliated(a) | $ | 54,919,207 | $ | 264,923,801 | $ | 49,756,982 | ||||||
Affiliated(b) | 368,668 | — | 78,274 | |||||||||
Foreign currency, at value(c) | 292,544 | 20,728,499 | 10,544 | |||||||||
Receivables: | ||||||||||||
Investments sold | 769,689 | 2,403,097 | 4,515,161 | |||||||||
Capital shares sold | — | 20,516,287 | — | |||||||||
Dividends | 235 | 1,600 | 203 | |||||||||
|
|
|
|
|
| |||||||
Total assets | 56,350,343 | 308,573,284 | 54,361,164 | |||||||||
|
|
|
|
|
| |||||||
LIABILITIES | ||||||||||||
Bank overdraft | — | 52,346 | — | |||||||||
Payables: | ||||||||||||
Investments purchased | 1,066,226 | 43,311,665 | 4,530,256 | |||||||||
Investment advisory fees | 24,889 | 127,635 | 21,113 | |||||||||
|
|
|
|
|
| |||||||
Total liabilities | 1,091,115 | 43,491,646 | 4,551,369 | |||||||||
|
|
|
|
|
| |||||||
NET ASSETS | $ | 55,259,228 | $ | 265,081,638 | $ | 49,809,795 | ||||||
|
|
|
|
|
| |||||||
NET ASSETS CONSIST OF: | ||||||||||||
Paid-in capital | $ | 69,395,423 | $ | 249,182,222 | $ | 74,327,179 | ||||||
Accumulated earnings (loss) | (14,136,195 | ) | 15,899,416 | (24,517,384 | ) | |||||||
|
|
|
|
|
| |||||||
NET ASSETS | $ | 55,259,228 | $ | 265,081,638 | $ | 49,809,795 | ||||||
|
|
|
|
|
| |||||||
Shares outstanding | 3,000,000 | 8,400,000 | 3,450,000 | |||||||||
|
|
|
|
|
| |||||||
Net asset value | $ | 18.42 | $ | 31.56 | $ | 14.44 | ||||||
|
|
|
|
|
| |||||||
Shares authorized | Unlimited | Unlimited | Unlimited | |||||||||
|
|
|
|
|
| |||||||
Par value | None | None | None | |||||||||
|
|
|
|
|
| |||||||
(a) Investments, at cost — Unaffiliated | $ | 47,927,295 | $ | 239,700,850 | $ | 50,007,192 | ||||||
(b) Investments, at cost — Affiliated | $ | 368,668 | $ | — | $ | 78,274 | ||||||
(c) Foreign currency, at cost | $ | 292,618 | $ | 20,728,499 | $ | 10,016 |
See notes to financial statements.
48 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Statements of Operations (unaudited)
Six Months Ended February 28, 2019
iShares | ||||||||||||||||
MSCI | ||||||||||||||||
Argentina | iShares | iShares | ||||||||||||||
and Global | MSCI Brazil | iShares | MSCI China | |||||||||||||
Exposure | Small-Cap | MSCI China | Small-Cap | |||||||||||||
ETF | ETF | ETF | ETF | |||||||||||||
| ||||||||||||||||
INVESTMENT INCOME | ||||||||||||||||
Dividends — Unaffiliated | $ | 66,747 | $ | 1,192,861 | $ | 11,711,627 | $ | 131,672 | ||||||||
Dividends — Affiliated | 177 | 982 | 30,303 | 389 | ||||||||||||
Securities lending income — Affiliated — net | 2,156 | — | 1,467,219 | 96,942 | ||||||||||||
Foreign taxes withheld | (5,401 | ) | (86,430 | ) | (511,585 | ) | (329 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total investment income | 63,679 | 1,107,413 | 12,697,564 | 228,674 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
EXPENSES | ||||||||||||||||
Investment advisory fees | 64,197 | 194,074 | 10,731,552 | 59,545 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total expenses | 64,197 | 194,074 | 10,731,552 | 59,545 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net investment income (loss) | (518 | ) | 913,339 | 1,966,012 | 169,129 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||
Investments — Unaffiliated | (559,464 | ) | 1,639,160 | (64,607,577 | ) | (2,288,130 | ) | |||||||||
Investments — Affiliated | 158 | — | (22,118 | ) | 110 | |||||||||||
In-kind redemptions — Unaffiliated | 422,697 | — | — | 281,805 | ||||||||||||
Futures contracts | — | — | (101,274 | ) | — | |||||||||||
Foreign currency transactions | (407 | ) | (2,064 | ) | (11,933 | ) | (553 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net realized gain (loss) | (137,016 | ) | 1,637,096 | (64,742,902 | ) | (2,006,768 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments — Unaffiliated | 2,060,607 | 16,686,047 | 190,516,241 | 711,777 | ||||||||||||
Investments — Affiliated | (33 | ) | — | 85,049 | (108 | ) | ||||||||||
Futures contracts | — | — | 147,541 | — | ||||||||||||
Foreign currency translations | 155 | 15,791 | 47,598 | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net change in unrealized appreciation (depreciation) | 2,060,729 | 16,701,838 | 190,796,429 | 711,669 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net realized and unrealized gain (loss) | 1,923,713 | 18,338,934 | 126,053,527 | (1,295,099 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | 1,923,195 | $ | 19,252,273 | $ | 128,019,539 | $ | (1,125,970 | ) | |||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S | 49 |
Statements of Operations (unaudited) (continued)
Six Months Ended February 28, 2019
iShares | iShares | |||||||||||||||
MSCI | iShares | MSCI | iShares | |||||||||||||
Indonesia | MSCI Peru | Philippines | MSCI Poland | |||||||||||||
ETF | ETF | ETF | ETF | |||||||||||||
| ||||||||||||||||
INVESTMENT INCOME | ||||||||||||||||
Dividends — Unaffiliated | $ | 1,244,264 | $ | 1,075,448 | $ | 752,557 | $ | 1,786,641 | ||||||||
Dividends — Affiliated | 4,418 | 1,069 | 800 | 2,081 | ||||||||||||
Securities lending income — Affiliated — net | — | — | — | 32,128 | ||||||||||||
Foreign taxes withheld | (193,781 | ) | (28,376 | ) | (225,768 | ) | (267,996 | ) | ||||||||
Foreign withholding tax claims | — | — | — | 656,879 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total investment income | 1,054,901 | 1,048,141 | 527,589 | 2,209,733 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
EXPENSES | ||||||||||||||||
Investment advisory fees | 1,439,315 | 438,939 | 514,477 | 791,485 | ||||||||||||
Professional fees | — | — | — | 66,295 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total expenses | 1,439,315 | 438,939 | 514,477 | 857,780 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net investment income (loss) | (384,414 | ) | 609,202 | 13,112 | 1,351,953 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||
Investments — Unaffiliated | (9,453,026 | ) | (4,723,414 | ) | (6,369,344 | ) | (4,801,902 | ) | ||||||||
Investments — Affiliated | — | — | — | 1,070 | ||||||||||||
In-kind redemptions — Unaffiliated | 7,538,918 | 139,890 | (914,439 | ) | 3,706,951 | |||||||||||
Foreign currency transactions | 27,288 | (6,373 | ) | (3,753 | ) | (1,956 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net realized loss | (1,886,820 | ) | (4,589,897 | ) | (7,287,536 | ) | (1,095,837 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments — Unaffiliated | 46,216,611 | 8,567,334 | 9,543,328 | (7,671,028 | ) | |||||||||||
Investments — Affiliated | — | — | — | 494 | ||||||||||||
Foreign currency translations | 10,396 | 4,520 | 6,461 | (6,023 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net change in unrealized appreciation (depreciation) | 46,227,007 | 8,571,854 | 9,549,789 | (7,676,557 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net realized and unrealized gain (loss) | 44,340,187 | 3,981,957 | 2,262,253 | (8,772,394 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | 43,955,773 | $ | 4,591,159 | $ | 2,275,365 | $ | (7,420,441 | ) | |||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
50 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Statements of Operations (unaudited) (continued)
Six Months Ended February 28, 2019
iShares MSCI Qatar | iShares MSCI Saudi | iShares MSCI UAE ETF | ||||||||||
| ||||||||||||
INVESTMENT INCOME | ||||||||||||
Dividends — Unaffiliated | $ | 940,715 | $ | 1,270,257 | $ | 18,006 | (a) | |||||
Dividends — Affiliated | 553 | 1,256 | 943 | |||||||||
Securities lending income — Affiliated — net | — | — | 14 | |||||||||
Foreign taxes withheld | — | (19,041 | ) | — | ||||||||
|
|
|
|
|
| |||||||
Total investment income | 941,268 | 1,252,472 | 18,963 | |||||||||
|
|
|
|
|
| |||||||
EXPENSES | ||||||||||||
Investment advisory fees | 158,039 | 801,096 | 114,276 | |||||||||
|
|
|
|
|
| |||||||
Total expenses | 158,039 | 801,096 | 114,276 | |||||||||
|
|
|
|
|
| |||||||
Net investment income (loss) | 783,229 | �� | 451,376 | (95,313 | ) | |||||||
|
|
|
|
|
| |||||||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||
Net realized gain (loss) from: | ||||||||||||
Investments — Unaffiliated | (350,000 | ) | (6,820,215 | ) | (2,686,047 | ) | ||||||
In-kind redemptions — Unaffiliated | — | — | 355,805 | |||||||||
Foreign currency transactions | (7,323 | ) | (33,223 | ) | (7,419 | ) | ||||||
|
|
|
|
|
| |||||||
Net realized loss | (357,323 | ) | (6,853,438 | ) | (2,337,661 | ) | ||||||
|
|
|
|
|
| |||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||
Investments — Unaffiliated | 1,493,410 | 17,886,521 | 120,804 | |||||||||
Foreign currency translations | 973 | (2,460 | ) | 690 | ||||||||
|
|
|
|
|
| |||||||
Net change in unrealized appreciation (depreciation) | 1,494,383 | 17,884,061 | 121,494 | |||||||||
|
|
|
|
|
| |||||||
Net realized and unrealized gain (loss) | 1,137,060 | 11,030,623 | (2,216,167 | ) | ||||||||
|
|
|
|
|
| |||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | 1,920,289 | $ | 11,481,999 | $ | (2,311,480 | ) | |||||
|
|
|
|
|
|
(a) | Includes $10,272 related to a special distribution from Emaar Development PJSC. |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S | 51 |
Statements of Changes in Net Assets
iShares MSCI Argentina and Global Exposure ETF | iShares MSCI BrazilSmall-Cap ETF | |||||||||||||||||||
Six Months Ended 02/28/19 (unaudited) | Year Ended 08/31/18 | Six Months Ended 02/28/19 (unaudited) | Year Ended 08/31/18 | |||||||||||||||||
| ||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||
OPERATIONS | ||||||||||||||||||||
Net investment income (loss) | $ | (518 | ) | $ | 925,959 | $ | 913,339 | $ | 1,822,314 | |||||||||||
Net realized gain (loss) | (137,016 | ) | 668,781 | 1,637,096 | 2,731,146 | |||||||||||||||
Net change in unrealized appreciation (depreciation) | 2,060,729 | (8,489,312 | ) | 16,701,838 | (20,166,503 | ) | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Net increase (decrease) in net assets resulting from operations | 1,923,195 | (6,894,572 | ) | 19,252,273 | (15,613,043 | ) | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||||||||||||||
Decrease in net assets resulting from distributions to shareholders | (22,203 | ) | (1,034,545 | ) | (1,721,560 | ) | (3,340,505 | ) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||||||
Net increase in net assets derived from capital share transactions | 44,012 | 14,704,620 | 25,612,318 | 5,317,014 | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
NET ASSETS(a) | ||||||||||||||||||||
Total increase (decrease) in net assets | 1,945,004 | 6,775,503 | 43,143,031 | (13,636,534 | ) | |||||||||||||||
Beginning of period | 22,203,339 | 15,427,836 | 48,679,116 | 62,315,650 | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
End of period | $ | 24,148,343 | $ | 22,203,339 | $ | 91,822,147 | $ | 48,679,116 | ||||||||||||
|
|
|
|
|
|
|
|
(a) | Prior year distribution character information and distributions in excess of net investment income has been modified or removed to conform with current year RegulationS-X presentation changes. Refer to Note 13 for this prior year information. |
See notes to financial statements.
52 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Statements of Changes in Net Assets (continued)
iShares MSCI China ETF | iShares MSCI ChinaSmall-Cap ETF | |||||||||||||||||||
Six Months Ended 02/28/19 (unaudited) | Year Ended 08/31/18 | Six Months Ended 02/28/19 | Year Ended 08/31/18 | |||||||||||||||||
| ||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||
OPERATIONS | ||||||||||||||||||||
Net investment income | $ | 1,966,012 | $ | 50,425,310 | $ | 169,129 | $ | 683,030 | ||||||||||||
Net realized gain (loss) | (64,742,902 | ) | (24,735,994 | ) | (2,006,768 | ) | 4,006,605 | |||||||||||||
Net change in unrealized appreciation (depreciation) | 190,796,429 | (146,407,361 | ) | 711,669 | (4,518,436 | ) | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Net increase (decrease) in net assets resulting from operations | 128,019,539 | (120,718,045 | ) | (1,125,970 | ) | 171,199 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||||||||||||||
Decrease in net assets resulting from distributions to shareholders | (35,147,664 | ) | (51,449,006 | ) | (752,784 | ) | (738,092 | ) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions | 838,952,711 | 1,022,062,880 | (2,000,973 | ) | 4,718,949 | |||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
NET ASSETS(a) | ||||||||||||||||||||
Total increase (decrease) in net assets | 931,824,586 | 849,895,829 | (3,879,727 | ) | 4,152,056 | |||||||||||||||
Beginning of period | 3,444,143,115 | 2,594,247,286 | 25,976,892 | 21,824,836 | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
End of period | $ | 4,375,967,701 | $ | 3,444,143,115 | $ | 22,097,165 | $ | 25,976,892 | ||||||||||||
|
|
|
|
|
|
|
|
(a) | Prior year distribution character information and undistributed (distributions in excess of) net investment income has been modified or removed to conform with current year RegulationS-X presentation changes. Refer to Note 13 for this prior year information. |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S | 53 |
Statements of Changes in Net Assets (continued)
iShares MSCI Indonesia ETF | iShares MSCI Peru ETF | |||||||||||||||||||
Six Months Ended 02/28/19 (unaudited) | Year Ended 08/31/18 | Six Months Ended 02/28/19 (unaudited) | Year Ended 08/31/18 | |||||||||||||||||
| ||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||
OPERATIONS | ||||||||||||||||||||
Net investment income (loss) | $ | (384,414 | ) | $ | 7,776,288 | $ | 609,202 | $ | 5,144,546 | |||||||||||
Net realized gain (loss) | (1,886,820 | ) | (4,103,607 | ) | (4,589,897 | ) | 3,760,094 | |||||||||||||
Net change in unrealized appreciation (depreciation) | 46,227,007 | (68,342,634 | ) | 8,571,854 | (7,622,653 | ) | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Net increase (decrease) in net assets resulting from operations | 43,955,773 | (64,669,953 | ) | 4,591,159 | 1,281,987 | |||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||||||||||||||
Decrease in net assets resulting from distributions to shareholders | (988,561 | ) | (7,486,688 | ) | (648,546 | ) | (5,225,025 | ) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions | 205,861,544 | (14,496,385 | ) | (5,151,123 | ) | (2,134,236 | ) | |||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
NET ASSETS(a) | ||||||||||||||||||||
Total increase (decrease) in net assets | 248,828,756 | (86,653,026 | ) | (1,208,510 | ) | (6,077,274 | ) | |||||||||||||
Beginning of period | 414,758,061 | 501,411,087 | 164,716,616 | 170,793,890 | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
End of period | $ | 663,586,817 | $ | 414,758,061 | $ | 163,508,106 | $ | 164,716,616 | ||||||||||||
|
|
|
|
|
|
|
|
(a) | Prior year distribution character information and undistributed (distributions in excess of) net investment income has been modified or removed to conform with current year RegulationS-X presentation changes. Refer to Note 13 for this prior year information. |
See notes to financial statements.
54 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Statements of Changes in Net Assets (continued)
iShares MSCI Philippines ETF | iShares MSCI Poland ETF | |||||||||||||||
Six Months Ended | Year Ended 08/31/18 | Six Months Ended | Year Ended 08/31/18 | |||||||||||||
| ||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income | $ | 13,112 | $ | 687,429 | $ | 1,351,953 | $ | 4,289,279 | ||||||||
Net realized gain (loss) | (7,287,536 | ) | (3,836,083 | ) | (1,095,837 | ) | 24,638,296 | |||||||||
Net change in unrealized appreciation (depreciation) | 9,549,789 | (10,993,790 | ) | (7,676,557 | ) | (67,372,274 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | 2,275,365 | (14,142,444 | ) | (7,420,441 | ) | (38,444,699 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||||||||||
Decrease in net assets resulting from distributions to shareholders | (106,003 | ) | (742,473 | ) | (3,708,505 | ) | (5,917,963 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions | 77,991,121 | 14,653,010 | 45,104,089 | (55,415,554 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS(a) | ||||||||||||||||
Total increase (decrease) in net assets | 80,160,483 | (231,907 | ) | 33,975,143 | (99,778,216 | ) | ||||||||||
Beginning of period | 172,012,910 | 172,244,817 | 263,758,464 | 363,536,680 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 252,173,393 | $ | 172,012,910 | $ | 297,733,607 | $ | 263,758,464 | ||||||||
|
|
|
|
|
|
|
|
(a) | Prior year distribution character information and undistributed (distributions in excess of) net investment income has been modified or removed to conform with current year RegulationS-X presentation changes. Refer to Note 13 for this prior year information. |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S | 55 |
Statements of Changes in Net Assets (continued)
iShares MSCI Qatar ETF | iShares MSCI Saudi Arabia ETF | |||||||||||||||
Six Months Ended 02/28/19 (unaudited) | Year Ended 08/31/18 | Six Months Ended 02/28/19 (unaudited) | Year Ended 08/31/18 | |||||||||||||
| ||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income | $ | 783,229 | $ | 2,142,518 | $ | 451,376 | $ | 5,049,338 | ||||||||
Net realized loss | (357,323 | ) | (6,953,869 | ) | (6,853,438 | ) | (2,116,701 | ) | ||||||||
Net change in unrealized appreciation (depreciation) | 1,494,383 | 12,274,448 | 17,884,061 | 6,703,058 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase in net assets resulting from operations | 1,920,289 | 7,463,097 | 11,481,999 | 9,635,695 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||||||||||
Decrease in net assets resulting from distributions to shareholders | (348,789 | ) | (2,211,558 | ) | (3,167,379 | ) | (2,600,597 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions | (1,565,678 | ) | 611,767 | (331,721 | ) | 231,757,266 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS(a) | ||||||||||||||||
Total increase in net assets | 5,822 | 5,863,306 | 7,982,899 | 238,792,364 | ||||||||||||
Beginning of period | 55,253,406 | 49,390,100 | 257,098,739 | 18,306,375 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 55,259,228 | $ | 55,253,406 | $ | 265,081,638 | $ | 257,098,739 | ||||||||
|
|
|
|
|
|
|
|
(a) | Prior year distribution character information and undistributed net investment income has been modified or removed to conform with current year RegulationS-X presentation changes. Refer to Note 13 for this prior year information. |
See notes to financial statements.
56 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Statements of Changes in Net Assets (continued)
iShares MSCI UAE ETF | ||||||||
Six Months 02/28/19 | Year Ended 08/31/18 | |||||||
| ||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||
OPERATIONS | ||||||||
Net investment income (loss) | $ | (95,313 | ) | $ | 1,776,026 | |||
Net realized loss | (2,337,661 | ) | (1,591,539 | ) | ||||
Net change in unrealized appreciation (depreciation) | 121,494 | (3,476,500 | ) | |||||
|
|
|
| |||||
Net decrease in net assets resulting from operations | (2,311,480 | ) | (3,292,013 | ) | ||||
|
|
|
| |||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||
Decrease in net assets resulting from distributions to shareholders | (195,400 | ) | (1,907,835 | ) | ||||
|
|
|
| |||||
CAPITAL SHARE TRANSACTIONS | ||||||||
Net increase (decrease) in net assets derived from capital share transactions | 13,298,593 | (5,445,277 | ) | |||||
|
|
|
| |||||
NET ASSETS(a) | ||||||||
Total increase (decrease) in net assets | 10,791,713 | (10,645,125 | ) | |||||
Beginning of period | 39,018,082 | 49,663,207 | ||||||
|
|
|
| |||||
End of period | $ | 49,809,795 | $ | 39,018,082 | ||||
|
|
|
|
(a) | Prior year distribution character information and distributions in excess of net investment income has been modified or removed to conform with current year RegulationS-X presentation changes. Refer to Note 13 for this prior year information. |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S | 57 |
(For a share outstanding throughout each period)
iShares MSCI Argentina and Global Exposure ETF | ||||||||||||
Six Months Ended 02/28/19 (unaudited) | Year Ended 08/31/18 | Period From to 08/31/17 | ||||||||||
| ||||||||||||
Net asset value, beginning of period | $ | 22.20 | $ | 25.71 | $ | 25.23 | ||||||
|
|
|
|
|
| |||||||
Net investment income(b) | (0.00 | )(c) | 0.63 | 0.03 | ||||||||
Net realized and unrealized gain (loss)(d) | 1.97 | (3.61 | ) | 0.46 | ||||||||
|
|
|
|
|
| |||||||
Net increase (decrease) from investment operations | 1.97 | (2.98 | ) | 0.49 | ||||||||
|
|
|
|
|
| |||||||
Distributions | ||||||||||||
From net investment income | (0.02 | ) | (0.53 | ) | (0.01 | ) | ||||||
|
|
|
|
|
| |||||||
Total distributions | (0.02 | ) | (0.53 | ) | (0.01 | ) | ||||||
|
|
|
|
|
| |||||||
Net asset value, end of period | $ | 24.15 | $ | 22.20 | $ | 25.71 | ||||||
|
|
|
|
|
| |||||||
Total Return | ||||||||||||
Based on net asset value | 8.91 | %(e) | (12.00 | )% | 2.00 | %(e) | ||||||
|
|
|
|
|
| |||||||
Ratios to Average Net Assets | ||||||||||||
Total expenses | 0.59 | %(f) | 0.59 | % | 0.59 | %(f) | ||||||
|
|
|
|
|
| |||||||
Net investment income | (0.00 | )%(f)(g) | 2.22 | % | 0.34 | %(f) | ||||||
|
|
|
|
|
| |||||||
Supplemental Data | ||||||||||||
Net assets, end of period (000) | $ | 24,148 | $ | 22,203 | $ | 15,428 | ||||||
|
|
|
|
|
| |||||||
Portfolio turnover rate(h) | 10 | %(e) | 42 | % | 17 | %(e) | ||||||
|
|
|
|
|
|
(a) | Commencement of operations. |
(b) | Based on average shares outstanding. |
(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. |
(g) | Rounds to less than 0.01%. |
(h) | Portfolio turnover rate excludesin-kind transactions. |
See notes to financial statements.
58 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares MSCI BrazilSmall-Cap ETF | ||||||||||||||||||||||||
Six Months Ended 02/28/19 (unaudited) | Year Ended 08/31/18 | Year Ended 08/31/17 | Year Ended 08/31/16 | Year Ended 08/31/15 | Year Ended 08/31/14 | |||||||||||||||||||
| ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 11.87 | $ | 16.19 | $ | 11.51 | $ | 8.12 | $ | 21.00 | $ | 19.78 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income(a) | 0.20 | 0.40 | 0.36 | 0.24 | 0.37 | 0.47 | ||||||||||||||||||
Net realized and unrealized gain (loss)(b) | 4.27 | (4.01 | ) | 4.74 | 3.35 | (12.85 | ) | 1.13 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net increase (decrease) from investment operations | 4.47 | (3.61 | ) | 5.10 | 3.59 | (12.48 | ) | 1.60 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Distributions | ||||||||||||||||||||||||
From net investment income | (0.37 | ) | (0.71 | ) | (0.42 | ) | (0.20 | ) | (0.40 | ) | (0.38 | ) | ||||||||||||
Return of capital | — | — | — | — | (0.00 | )(c) | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | (0.37 | ) | (0.71 | ) | (0.42 | ) | (0.20 | ) | (0.40 | ) | (0.38 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 15.97 | $ | 11.87 | $ | 16.19 | $ | 11.51 | $ | 8.12 | $ | 21.00 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | 38.10 | %(d) | (22.95 | )% | 45.92 | % | 45.17 | % | (60.01 | )% | 8.18 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.59 | %(e) | 0.59 | % | 0.62 | % | 0.63 | % | 0.62 | % | 0.62 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income | 2.77 | %(e) | 2.55 | % | 2.76 | % | 2.77 | % | 2.87 | % | 2.36 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 91,822 | $ | 48,679 | $ | 62,316 | $ | 50,087 | $ | 27,189 | $ | 40,951 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Portfolio turnover rate(f) | 14 | %(d)(g) | 67 | %(g) | 58 | %(g) | 38 | %(g) | 172 | %(g) | 40 | %(g) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
(a) Based on average shares outstanding. |
| |||||||||||||||||||||||
(b) The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
| |||||||||||||||||||||||
(c) Rounds to less than $0.01. |
| |||||||||||||||||||||||
(d) Not annualized. |
| |||||||||||||||||||||||
(e) Annualized. |
| |||||||||||||||||||||||
(f) Portfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash in U.S. dollars (“cash creations”). |
| |||||||||||||||||||||||
(g)Portfolio turnover rate excluding cash creations was as follows: | 8 | % | 25 | % | 26 | % | 28 | % | 39 | % | 35 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
See notes to financial statements.
F I N A N C I A L H I G H L I G H T S | 59 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares MSCI China ETF | ||||||||||||||||||||||||
Six Months Ended 02/28/19 (unaudited) | Year Ended 08/31/18 | Year Ended 08/31/17 | Year Ended 08/31/16 | Year Ended 08/31/15 | Year Ended 08/31/14 | |||||||||||||||||||
| ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 60.85 | $ | 62.06 | $ | 46.87 | $ | 44.49 | $ | 50.34 | $ | 43.90 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income(a) | 0.03 | 1.05 | 0.86 | 0.97 | 1.41 | 1.15 | ||||||||||||||||||
Net realized and unrealized gain (loss)(b) | 0.42 | (1.10 | ) | 14.94 | 2.34 | (6.21 | ) | 6.24 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net increase (decrease) from investment operations | 0.45 | (0.05 | ) | 15.80 | 3.31 | (4.80 | ) | 7.39 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Distributions | ||||||||||||||||||||||||
From net investment income | (0.52 | ) | (1.16 | ) | (0.61 | ) | (0.93 | ) | (1.05 | ) | (0.95 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | (0.52 | ) | (1.16 | ) | (0.61 | ) | (0.93 | ) | (1.05 | ) | (0.95 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 60.78 | $ | 60.85 | $ | 62.06 | $ | 46.87 | $ | 44.49 | $ | 50.34 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | 0.86 | %(c) | (0.22 | )% | 34.13 | % | 7.63 | % | (9.86 | )% | 17.03 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.59 | %(d) | 0.59 | % | 0.62 | % | 0.64 | % | 0.62 | % | 0.62 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income | 0.11 | %(d) | 1.57 | % | 1.70 | % | 2.24 | % | 2.65 | % | 2.48 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 4,375,968 | $ | 3,444,143 | $ | 2,594,247 | $ | 2,099,991 | $ | 1,815,303 | $ | 1,132,558 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Portfolio turnover rate(e) | 5 | %(c) | 14 | % | 6 | % | 27 | % | 14 | % | 7 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Based on average shares outstanding. |
(b) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(c) | Not annualized. |
(d) | Annualized. |
(e) | Portfolio turnover rate excludesin-kind transactions. |
See notes to financial statements.
60 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares MSCI ChinaSmall-Cap ETF | ||||||||||||||||||||||||
Six Months Ended 02/28/19 (unaudited) | Year Ended 08/31/18 | Year Ended 08/31/17 | Year Ended 08/31/16 | Year Ended 08/31/15 | Year Ended 08/31/14 | |||||||||||||||||||
| ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 47.23 | $ | 48.50 | $ | 43.79 | $ | 41.08 | $ | 48.30 | $ | 41.98 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income(a) | 0.35 | 1.51 | 1.22 | 1.25 | 1.24 | 1.09 | ||||||||||||||||||
Net realized and unrealized gain (loss)(b) | (1.72 | ) | (1.14 | ) | 5.21 | 2.99 | (7.18 | ) | 6.55 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net increase (decrease) from investment operations | (1.37 | ) | 0.37 | 6.43 | 4.24 | (5.94 | ) | 7.64 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Distributions | ||||||||||||||||||||||||
From net investment income | (1.67 | ) | (1.64 | ) | (1.72 | ) | (1.53 | ) | (1.28 | ) | (1.32 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | (1.67 | ) | (1.64 | ) | (1.72 | ) | (1.53 | ) | (1.28 | ) | (1.32 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 44.19 | $ | 47.23 | $ | 48.50 | $ | 43.79 | $ | 41.08 | $ | 48.30 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | (2.45 | )%(c) | 0.58 | % | 15.29 | % | 10.50 | % | (12.94 | )% | 18.46 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.59 | %(d) | 0.59 | % | 0.62 | % | 0.64 | % | 0.62 | % | 0.62 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income | 1.68 | %(d) | 2.91 | % | 2.72 | % | 2.95 | % | 2.44 | % | 2.38 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 22,097 | $ | 25,977 | $ | 21,825 | $ | 19,706 | $ | 24,646 | $ | 33,808 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Portfolio turnover rate(e) | 21 | %(c) | 63 | % | 26 | % | 31 | % | 35 | % | 33 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Based on average shares outstanding. |
(b) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(c) | Not annualized. |
(d) | Annualized. |
(e) | Portfolio turnover rate excludesin-kind transactions. |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S | 61 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares MSCI Indonesia ETF | ||||||||||||||||||||||||
Six Months Ended 02/28/19 (unaudited) | Year Ended 08/31/18 | Year Ended 08/31/17 | Year Ended 08/31/16 | Year Ended 08/31/15 | Year Ended 08/31/14 | |||||||||||||||||||
Net asset value, beginning of period | $ | 23.57 | $ | 26.89 | $ | 25.82 | $ | 20.18 | $ | 28.54 | $ | 24.78 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income (loss)(a) | (0.02 | ) | 0.43 | 0.31 | 0.34 | 0.31 | 0.37 | |||||||||||||||||
Net realized and unrealized gain (loss)(b) | 2.57 | (3.27 | ) | 1.11 | 5.59 | (8.29 | ) | 3.75 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net increase (decrease) from investment operations | 2.55 | (2.84 | ) | 1.42 | 5.93 | (7.98 | ) | 4.12 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Distributions | ||||||||||||||||||||||||
From net investment income | (0.05 | ) | (0.48 | ) | (0.35 | ) | (0.27 | ) | (0.38 | ) | (0.36 | ) | ||||||||||||
Return of capital | — | — | — | (0.02 | ) | — | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | (0.05 | ) | (0.48 | ) | (0.35 | ) | (0.29 | ) | (0.38 | ) | (0.36 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 26.07 | $ | 23.57 | $ | 26.89 | $ | 25.82 | $ | 20.18 | $ | 28.54 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | 10.82 | %(c) | (10.67 | )% | 5.53 | % | 29.59 | % | (28.13 | )% | 16.79 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.59 | %(d) | 0.59 | % | 0.62 | % | 0.63 | % | 0.62 | % | 0.62 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income (loss) | (0.16 | )%(d) | 1.63 | % | 1.22 | % | 1.47 | % | 1.16 | % | 1.41 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 663,587 | $ | 414,758 | $ | 501,411 | $ | 702,198 | $ | 268,381 | $ | 576,411 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Portfolio turnover rate(e) | 5 | %(c) | 7 | % | 6 | % | 5 | % | 4 | % | 8 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Based on average shares outstanding. |
(b) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(c) | Not annualized. |
(d) | Annualized. |
(e) | Portfolio turnover rate excludesin-kind transactions. |
See notes to financial statements.
62 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares MSCI Peru ETF | ||||||||||||||||||||||||
Six Months Ended 02/28/19 (unaudited) | Year Ended 08/31/18 | Year Ended 08/31/17 | Year Ended 08/31/16 | Year Ended 08/31/15 | Year Ended 08/31/14 | |||||||||||||||||||
| ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 37.44 | $ | 37.54 | $ | 32.79 | $ | 23.09 | $ | 36.60 | $ | 33.90 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income(a) | 0.15 | 1.09 | 0.46 | 0.33 | 0.36 | 0.45 | ||||||||||||||||||
Net realized and unrealized gain (loss)(b) | 1.04 | (0.06 | ) | 4.99 | 9.73 | (13.48 | ) | 2.73 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net increase (decrease) from investment operations | 1.19 | 1.03 | 5.45 | 10.06 | (13.12 | ) | 3.18 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Distributions | ||||||||||||||||||||||||
From net investment income | (0.16 | ) | (1.13 | ) | (0.70 | ) | (0.36 | ) | (0.39 | ) | (0.48 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | (0.16 | ) | (1.13 | ) | (0.70 | ) | (0.36 | ) | (0.39 | ) | (0.48 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 38.47 | $ | 37.44 | $ | 37.54 | $ | 32.79 | $ | 23.09 | $ | 36.60 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | 3.24 | %(c) | 2.60 | % | 16.89 | % | 44.13 | % | (36.15 | )% | 9.50 | % | ||||||||||||
|
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|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.59 | %(d) | 0.59 | % | 0.62 | % | 0.63 | % | 0.62 | % | 0.62 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total expenses after fees waived | 0.59 | %(d) | 0.59 | % | 0.62 | % | 0.63 | % | 0.61 | % | 0.51 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income | 0.82 | %(d) | 2.65 | % | 1.37 | % | 1.23 | % | 1.15 | % | 1.33 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 163,508 | $ | 164,717 | $ | 170,794 | $ | 218,026 | $ | 131,595 | �� | $ | 252,539 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Portfolio turnover rate(e) | 10 | %(c) | 11 | % | 13 | % | 22 | % | 21 | % | 13 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Based on average shares outstanding. |
(b) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(c) | Not annualized. |
(d) | Annualized. |
(e) | Portfolio turnover rate excludesin-kind transactions. |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S | 63 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares MSCI Philippines ETF | ||||||||||||||||||||||||
Six Months Ended 02/28/19 (unaudited) | Year Ended 08/31/18 | Year Ended 08/31/17 | Year Ended 08/31/16 | Year Ended 08/31/15 | Year Ended 08/31/14 | |||||||||||||||||||
| ||||||||||||||||||||||||
Net asset value, beginning of period | $ 33.08 | $ 35.88 | $ 39.19 | $ 35.50 | $ 38.19 | $ 31.93 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income(a) | 0.00 | (b) | 0.14 | 0.15 | 0.21 | 0.34 | 0.35 | |||||||||||||||||
Net realized and unrealized gain (loss)(c) | 0.79 | (2.79 | ) | (3.26 | ) | 3.74 | (2.70 | ) | 6.22 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net increase (decrease) from investment operations | 0.79 | (2.65 | ) | (3.11 | ) | 3.95 | (2.36 | ) | 6.57 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Distributions | ||||||||||||||||||||||||
From net investment income | (0.02 | ) | (0.15 | ) | (0.20 | ) | (0.26 | ) | (0.33 | ) | (0.31 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | (0.02 | ) | (0.15 | ) | (0.20 | ) | (0.26 | ) | (0.33 | ) | (0.31 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ 33.85 | $ 33.08 | $ 35.88 | $ 39.19 | $ 35.50 | $ 38.19 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | 2.40 | %(d) | (7.40 | )% | (7.87 | )% | 11.19 | % | (6.21 | )% | 20.53 | %(e) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.59 | %(f) | 0.59 | % | 0.62 | % | 0.64 | % | 0.62 | % | 0.62 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income | 0.02 | %(f) | 0.40 | % | 0.42 | % | 0.58 | % | 0.85 | % | 1.02 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $252,173 | $172,013 | $172,245 | $317,403 | $266,273 | $351,313 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Portfolio turnover rate(g) | 5 | %(d) | 8 | % | 7 | % | 10 | % | 12 | % | 24 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Based on average shares outstanding. |
(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) | 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%. |
(f) | Annualized. |
(g) | Portfolio turnover rate excludesin-kind transactions. |
See notes to financial statements.
64 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares MSCI Poland ETF | ||||||||||||||||||||||||
Six Months Ended 02/28/19 (unaudited) | Year Ended 08/31/18 | Year Ended 08/31/17 | Year Ended 08/31/16 | Year Ended 08/31/15 | Year Ended 08/31/14 | |||||||||||||||||||
| ||||||||||||||||||||||||
Net asset value, beginning of period | $ 24.31 | $ 27.33 | $ 18.06 | $ 21.63 | $ 28.02 | $ 27.12 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income(a) | 0.12 | (b) | 0.33 | (b) | 0.45 | (b) | 0.42 | 0.65 | 0.84 | |||||||||||||||
Net realized and unrealized gain (loss)(c) | (0.68 | ) | (2.90 | ) | 9.25 | (3.70 | ) | (6.25 | ) | 1.04 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net increase (decrease) from investment operations | (0.56 | ) | (2.57 | ) | 9.70 | (3.28 | ) | (5.60 | ) | 1.88 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Distributions | ||||||||||||||||||||||||
From net investment income | (0.31 | ) | (0.45 | ) | (0.43 | ) | (0.29 | ) | (0.79 | ) | (0.98 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | (0.31 | ) | (0.45 | ) | (0.43 | ) | (0.29 | ) | (0.79 | ) | (0.98 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ 23.44 | $ 24.31 | $ 27.33 | $ 18.06 | $ 21.63 | $ 28.02 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | (2.29 | )%(b)(d) | (9.53 | )%(b) | 54.79 | %(b) | (15.17 | )% | (20.31 | )% | 6.82 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.64 | %(e) | 0.63 | % | 0.63 | % | 0.64 | % | 0.62 | % | 0.62 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total expenses excluding professional fees for foreign withholding tax claims | 0.59 | %(e) | 0.59 | % | 0.62 | % | N/A | N/A | N/A | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income | 1.01 | %(b)(e) | 1.28 | %(b) | 2.07 | %(b) | 2.24 | % | 2.60 | % | 2.83 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $297,734 | $263,758 | $363,537 | $179,737 | $193,567 | $297,056 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Portfolio turnover rate(f) | 1 | %(d) | 7 | % | 6 | % | 10 | % | 17 | % | 10 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Based on average shares outstanding. |
(b) | Reflects the positive effect of foreign withholding tax claims, net of the associated professional fees, which resulted in the following increases for the six months ended February 28, 2019 and for the years ended August 31, 2018 and August 31, 2017 respectively: |
• Net investment income per share by $0.05, $0.08 and $0.03, respectively. |
• Total return by 0.16%, 0.41% and 0.11%, respectively. |
• Ratio of net investment income to average net assets by 0.44%, 0.32% and 0.14%, respectively. |
(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. |
(f) | Portfolio turnover rate excludesin-kind transactions. |
See notes to financial statements.
F I N A N C I A L H I G H L I G H T S | 65 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares MSCI Qatar ETF | ||||||||||||||||||||||||||||
Six Months Ended 02/28/19 (unaudited) | Year Ended 08/31/18 | Year Ended 08/31/17 | Year Ended 08/31/16 | Period From 08/01/15 (a) to 08/31/15 | Year Ended 07/31/15 | Period From 04/29/14 (b) to 07/31/14 | ||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Net asset value, beginning of period | $ 17.82 | $ 16.19 | $ 20.18 | $ 21.43 | $ 22.14 | $ 24.73 | $ 24.26 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net investment income (loss)(c) | 0.27 | (d) | 0.66 | 0.57 | 0.67 | (0.01 | ) | 0.70 | (0.02 | ) | ||||||||||||||||||
Net realized and unrealized gain (loss)(e) | 0.45 | 1.71 | (3.90 | ) | (1.24 | ) | (0.70 | ) | (2.44 | ) | 0.49 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net increase (decrease) from investment operations | 0.72 | 2.37 | (3.33 | ) | (0.57 | ) | (0.71 | ) | (1.74 | ) | 0.47 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Distributions | ||||||||||||||||||||||||||||
From net investment income | (0.12 | ) | (0.74 | ) | (0.66 | ) | (0.66 | ) | — | (0.85 | ) | �� | — | |||||||||||||||
From net realized gain | — | — | — | (0.02 | ) | — | — | — | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total distributions | (0.12 | ) | (0.74 | ) | (0.66 | ) | (0.68 | ) | — | (0.85 | ) | — | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net asset value, end of period | $ 18.42 | $ 17.82 | $ 16.19 | $ 20.18 | $ 21.43 | $ 22.14 | $ 24.73 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total Return | ||||||||||||||||||||||||||||
Based on net asset value | 4.03 | %(f) | 14.96 | % | (16.52 | )% | (2.32 | )% | (3.21 | )%(f) | (7.10 | )% | 1.94 | %(f) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||||
Total expenses | 0.59 | %(g) | 0.59 | % | 0.62 | % | 0.64 | % | 0.63 | %(g) | 0.62 | % | 0.61 | %(g) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net investment income (loss) | 2.93 | %(d)(g) | 4.09 | % | 3.05 | % | 3.44 | % | (0.63 | )%(g) | 2.94 | % | (0.34 | )%(g) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Supplemental Data | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $55,259 | $55,253 | $49,390 | $53,486 | $45,000 | $47,590 | $35,853 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Portfolio turnover rate(h) | 14 | %(f)(i) | 58 | %(i) | 47 | %(i) | 29 | %(i) | 5 | %(f)(i) | 85 | %(i) | 11 | %(f)(i) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) | The Fund’s fiscalyear-end was changed from July 31 to August 31. |
(b) | Commencement of operations. |
(c) | Based on average shares outstanding. |
(d) | Includes aone-time special distribution from Emaar Development PJSC. Excluding such special distribution, the net investment income would have been $(0.04) per share and (0.55)% of average net assets. |
(e) | 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. |
(f) | Not annualized. |
(g) | Annualized. |
(h) | Portfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash in U.S. dollars (“cash creations”). |
(i) Portfolio turnover rate excluding cash creations was as follows: | 7 | % | 22 | % | 20 | % | 12 | % | 2 | % | 37 | % | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See notes to financial statements.
66 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares MSCI Saudi Arabia ETF | ||||||||||||||||
Six Months Ended | Year Ended 08/31/18 | Year Ended 08/31/17 | Period From to 08/31/16 | |||||||||||||
| ||||||||||||||||
Net asset value, beginning of period | $ | 29.72 | $ | 26.15 | $ | 21.52 | $ | 24.92 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net investment income(b) | 0.06 | 1.28 | 0.91 | 0.81 | ||||||||||||
Net realized and unrealized gain (loss)(c) | 2.22 | 2.92 | 4.24 | (3.69 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) from investment operations | 2.28 | 4.20 | 5.15 | (2.88 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Distributions | ||||||||||||||||
From net investment income | (0.44 | ) | (0.63 | ) | (0.52 | ) | (0.52 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions | (0.44 | ) | (0.63 | ) | (0.52 | ) | (0.52 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net asset value, end of period | $ | 31.56 | $ | 29.72 | $ | 26.15 | $ | 21.52 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total Return | ||||||||||||||||
Based on net asset value | 7.79 | %(d) | 16.23 | % | 24.06 | % | (11.64 | )%(d) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Ratios to Average Net Assets | ||||||||||||||||
Total expenses | 0.74 | %(e) | 0.74 | % | 0.74 | % | 0.74 | %(e) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net investment income | 0.42 | %(e) | 4.31 | % | 3.68 | % | 3.71 | %(e) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Supplemental Data | ||||||||||||||||
Net assets, end of period (000) | $ | 265,082 | $ | 257,099 | $ | 18,306 | $ | 4,305 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Portfolio turnover rate(f) | 56 | %(d)(g) | 20 | %(g) | 21 | %(g) | 17 | %(d)(g) | ||||||||
|
|
|
|
|
|
|
|
(a) | Commencement of operations. |
(b) | Based on average shares outstanding. |
(c) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) | Not annualized. |
(e) | Annualized. |
(f) | Portfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash in U.S. dollars (“cash creations”). |
(g) Portfolio turnover rate excluding cash creations was as follows: | 4 | % | 10 | % | 21 | % | 17 | % | ||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S | 67 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares MSCI UAE ETF | ||||||||||||||||||||||||||||
Six Months Ended 02/28/19 (unaudited) | Year Ended 08/31/18 | Year Ended 08/31/17 | Year Ended 08/31/16 | Period From 08/01/15(a) to 08/31/15 | Year Ended 07/31/15 | Period From 04/29/14(b) to 07/31/14 | ||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 15.61 | $ | 17.74 | $ | 17.15 | $ | 18.34 | $ | 20.46 | $ | 24.00 | $ | 25.04 | ||||||||||||||
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Net investment income (loss)(c) | (0.04 | ) | 0.70 | 0.50 | 0.68 | (d) | (0.01 | ) | 1.01 | 0.01 | ||||||||||||||||||
Net realized and unrealized gain (loss)(e) | (1.06 | ) | (2.04 | ) | 0.72 | (1.19 | ) | (2.11 | ) | (3.56 | ) | (1.01 | ) | |||||||||||||||
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Net increase (decrease) from investment operations | (1.10 | ) | (1.34 | ) | 1.22 | (0.51 | ) | (2.12 | ) | (2.55 | ) | (1.00 | ) | |||||||||||||||
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Distributions | ||||||||||||||||||||||||||||
From net investment income | (0.07 | ) | (0.79 | ) | (0.63 | ) | (0.68 | ) | — | (0.99 | ) | (0.04 | ) | |||||||||||||||
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Total distributions | (0.07 | ) | (0.79 | ) | (0.63 | ) | (0.68 | ) | — | (0.99 | ) | (0.04 | ) | |||||||||||||||
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Net asset value, end of period | $ | 14.44 | $ | 15.61 | $ | 17.74 | $ | 17.15 | $ | 18.34 | $ | 20.46 | $ | 24.00 | ||||||||||||||
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Total Return | ||||||||||||||||||||||||||||
Based on net asset value | (6.94 | )%(f) | (7.55 | )% | 7.33 | % | (2.66 | )% | (10.36 | )%(f) | (10.33 | )% | (4.00 | )%(f) | ||||||||||||||
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Ratios to Average Net Assets | ||||||||||||||||||||||||||||
Total expenses | 0.59 | %(g) | 0.59 | % | 0.62 | % | 0.64 | % | 0.63 | %(g) | 0.62 | % | 0.62 | %(g) | ||||||||||||||
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Net investment income (loss) | (0.49 | )%(g) | 4.18 | % | 2.94 | % | 4.09 | %(d) | (0.76 | )%(g) | 4.81 | % | 0.19 | %(g) | ||||||||||||||
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Supplemental Data | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $ | 49,810 | $ | 39,018 | $ | 49,663 | $ | 41,156 | $ | 31,172 | $ | 33,756 | $ | 51,610 | ||||||||||||||
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Portfolio turnover rate(h) | 33 | %(f) | 33 | % | 33 | % | 55 | % | 1 | %(f) | 72 | % | 22 | %(f) | ||||||||||||||
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(a) | The Fund’s fiscalyear-end was changed from July 31 to August 31. |
(b) | Commencement of operations. |
(c) | Based on average shares outstanding. |
(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 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. |
(f) | Not annualized. |
(g) | Annualized. |
(h) | Portfolio turnover rate excludesin-kind transactions. |
See notes to financial statements.
68 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements(unaudited)
1. | ORGANIZATION |
iShares Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Trust is organized as a Delaware statutory trust and is authorized to have multiple series or portfolios.
These financial statements relate only to the following funds (each, a “Fund,” and collectively, the “Funds”):
iShares ETF
|
Diversification
| |
MSCI Argentina and Global Exposure |
Non-diversified | |
MSCI BrazilSmall-Cap | Diversified | |
MSCI China | Non-diversified | |
MSCI ChinaSmall-Cap | Diversified | |
MSCI Indonesia | Non-diversified | |
MSCI Peru | Non-diversified | |
MSCI Philippines | Non-diversified | |
MSCI Poland | Non-diversified | |
MSCI Qatar | Non-diversified | |
MSCI Saudi Arabia | Non-diversified | |
MSCI UAE | Non-diversified |
2. | 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 increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies.
Investment Transactions and Income Recognition:Investment 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 theex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities are reflected in tax reclaims receivable. 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. Upon notification from issuers, some of the dividend income received from a real estate investment trust may bere-designated as a return of capital or capital gain.Non-cash dividends, if any, are recognized on theex-dividend date and recorded asnon-cash dividend income at fair value. Interest income is accrued daily.
Foreign CurrencyTranslation: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 innon-U.S. currencies are translated to U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of investments, 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 investments. Such fluctuations are reflected by the Funds as a component of net realized and unrealized gain (loss) from investments for financial reporting purposes. Each Fund reports realized currency gain (loss) 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 each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its statement 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, 2019, if any, are disclosed in the statement of assets and liabilities.
In-kind Redemptions:For financial reporting purposes,in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) topaid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or net asset value per share.
Distributions:Dividends and distributions paid by each Fund are recorded on theex-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.
Recent Accounting Standards:In August 2018, the Financial Accounting Standards Board issued Accounting Standards Update2018-13 “Changes to the Disclosure Requirements for Fair Value Measurement” which modifies disclosure requirements for fair value measurements. The guidance is effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years. Management is currently evaluating the impact of this guidance to the Funds.
N O T E S T O F I N A N C I A L S T A T E M E N T S | 69 |
Notes to Financial Statements(unaudited) (continued)
Indemnifications:In the normal course of business, each Fund enters into contracts that contain a variety of representations that provide general indemnification. The Funds’ maximum exposure under these arrangements is unknown because it involves future potential claims against the Funds, which cannot be predicted with any certainty.
3. | INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS |
Investment Valuation Policies:Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date 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. A fund determines the fair value of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Trustees of the Trust (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.
Fair Value Inputs and Methodologies:The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:
• | Equity investments traded on a recognized securities exchange are valued at that day’s last traded price or official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price. |
• | Investments inopen-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. |
If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of an investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and the cost approach. 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.
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, regular reviews 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 and large movements in market values, and reviews of any market related activity. The pricing of all Fair Valued Investments is subsequently reported to the Board on a quarterly basis.
Fair value pricing could result in a difference between the prices used to calculate a fund’s NAV and the prices used by the fund’s underlying index, which in turn could result in a difference between the fund’s performance and the performance of the fund’s underlying index.
Fair Value Hierarchy:Various inputs are used in determining the fair value of financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:
• | Level 1 — Unadjusted price quotations in active markets 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, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and |
• | Level 3 — Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, (including the Global Valuation Committee’s assumptions used in determining the fair value of financial instruments). |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of 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 into or out of an assigned level within the 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 a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.
4. | SECURITIES AND OTHER INVESTMENTS |
Securities Lending:Each Fund may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by an approved bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current market value of the loaned securities for securities traded on U.S.
70 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements(unaudited) (continued)
exchanges and a value of at least 105%for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund or excess collateral is returned by the Fund, on the next business day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.
As of February 28, 2019, 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 BlackRock FundAdvisors (“BFA”), the Funds’ investment adviser, or its affiliates and is disclosed in the schedules of investments. Anynon-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, if any, are also disclosed in its schedule of investments. The market value of any securities on loan as of February 28, 2019 and the value of the related cash collateral are disclosed in the statements of assets and liabilities.
Securities lending transactions are entered into by a fund under Master Securities Lending Agreements (each, an “MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for thenon-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the 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 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, absent an event of default, the borrower can resell orre-pledge the loaned securities, and the fund can reinvest cash collateral received in connection with loaned securities.
The following table is a summary of the securities lending agreements by counterparty which are subject to offset under an MSLA as of February 28, 2019:
iShares ETF and Counterparty
|
Market Value of Securities on Loan
|
Cash Collateral Received(a)
|
Non-Cash Collateral Received
| Net Amount
| ||||||||||||||||
MSCI Argentina and Global Exposure | ||||||||||||||||||||
Citigroup Global Markets Inc. | $ | 738 | $ | 738 | $ | — | $ | — | ||||||||||||
Credit Suisse Securities (USA) LLC | 18,193 | 18,193 | — | — | ||||||||||||||||
Merrill Lynch, Pierce, Fenner & Smith | 43,239 | 43,239 | — | — | ||||||||||||||||
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending) | 83,846 | 83,846 | — | — | ||||||||||||||||
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| |||||||||||||
$ | 146,016 | $ | 146,016 | $ | — | $ | — | |||||||||||||
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| |||||||||||||
MSCI China | ||||||||||||||||||||
Barclays Bank PLC | $ | 1,999,620 | $ | 1,999,620 | $ | — | $ | — | ||||||||||||
Barclays Capital Inc. | 1,617,121 | 1,617,121 | — | — | ||||||||||||||||
Citigroup Global Markets Inc. | 10,416,929 | 10,416,929 | — | — | ||||||||||||||||
Credit Suisse Securities (USA) LLC | 3,513,149 | 3,513,149 | — | — | ||||||||||||||||
Goldman Sachs & Co. | 47,049,483 | 47,049,483 | — | — | ||||||||||||||||
HSBC Bank PLC | 91,720,796 | 91,720,796 | — | — | ||||||||||||||||
JPMorgan Securities LLC | 428,414,173 | 428,414,173 | — | — | ||||||||||||||||
Macquarie Bank Limited | 1,751,507 | 1,751,507 | — | — | ||||||||||||||||
Morgan Stanley & Co. LLC | 38,640,062 | 38,640,062 | — | — | ||||||||||||||||
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending) | 29,051,501 | 29,051,501 | — | — | ||||||||||||||||
Nomura Securities International Inc. | 125,539 | 125,539 | — | — | ||||||||||||||||
State Street Bank & Trust Company | 150,288 | 150,288 | — | — | ||||||||||||||||
UBS AG | 1,116,372 | 1,116,372 | — | — | ||||||||||||||||
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| |||||||||||||
$ | 655,566,540 | $ | 655,566,540 | $ | — | $ | — | |||||||||||||
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| |||||||||||||
MSCI ChinaSmall-Cap | ||||||||||||||||||||
Barclays Bank PLC | $ | 169,708 | $ | 169,708 | $ | — | $ | — | ||||||||||||
Barclays Capital Inc. | 122,127 | 122,127 | — | — | ||||||||||||||||
Citigroup Global Markets Inc. | 76,062 | 76,062 | — | — | ||||||||||||||||
Credit Suisse Securities (USA) LLC | 529,226 | 529,226 | — | — | ||||||||||||||||
Goldman Sachs &Co. | 720,013 | 720,013 | — | — | ||||||||||||||||
HSBC Bank PLC | 42,925 | 42,925 | — | — | ||||||||||||||||
Jefferies LLC | 50,713 | 50,713 | — | — | ||||||||||||||||
JPMorgan Securities LLC | 292,291 | 292,291 | — | — | ||||||||||||||||
Macquarie Bank Limited | 117,138 | 117,138 | — | — | ||||||||||||||||
Merrill Lynch, Pierce, Fenner &Smith | 13,330 | 13,330 | — | — | ||||||||||||||||
Morgan Stanley & Co. LLC | 472,146 | 472,146 | — | — | ||||||||||||||||
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending) | 56,420 | 56,420 | — | — | ||||||||||||||||
State Street Bank & Trust Company | 13,965 | 13,965 | — | — | ||||||||||||||||
UBS AG | 103,927 | 103,927 | — | — | ||||||||||||||||
UBS Securities LLC | 1,017 | 1,017 | — | — | ||||||||||||||||
|
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| |||||||||||||
$ | 2,781,008 | $ | 2,781,008 | $ | — | $ | — | |||||||||||||
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N O T E S T O F I N A N C I A L S T A T E M E N T S | 71 |
Notes to Financial Statements(unaudited) (continued)
iShares ETF and Counterparty |
Market Value of |
Cash Collateral Received(a) |
Non-Cash Collateral | Net Amount | ||||||||||||||||
MSCI Poland | ||||||||||||||||||||
Citigroup Global Markets Inc. | $ | 252,455 | $ | 252,455 | $ | — | $ | — | ||||||||||||
Deutsche Bank Securities Inc. | 588,858 | 588,858 | — | — | ||||||||||||||||
HSBC Bank PLC | 1,390,077 | 1,390,077 | — | — | ||||||||||||||||
Merrill Lynch, Pierce, Fenner & Smith | 10,782 | 10,782 | — | — | ||||||||||||||||
Morgan Stanley & Co. LLC | 45,386 | 45,386 | — | — | ||||||||||||||||
|
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| |||||||||||||
$ | 2,287,558 | $ | 2,287,558 | $ | — | $ | — | |||||||||||||
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|
(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. |
The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, each Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned 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 market value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by each Fund.
5. | DERIVATIVE FINANCIAL INSTRUMENTS |
Futures Contracts: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 specific quantity of an underlying instrument at a set price on a future date. Depending on the terms of a contract, a futures contract is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date.
Upon entering into a futures contract, 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. Securities deposited as initial margin, if any, are designated in the schedule of investments and cash deposited, if any, is shown as cash pledged for futures contracts in the statement of assets and liabilities.
Pursuant to the contract, a 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 (“variation margin”). Variation margin is recorded as unrealized appreciation or depreciation and, if any, shown as variation margin receivable or payable on futures contracts in the statement of assets and liabilities. When the contract is closed, a realized gain or loss is recorded in the statement of operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. 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 involves the risk of an imperfect correlation in the movements in the price of futures contracts and the assets underlying such contracts.
6. | INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES |
Investment Advisory Fees:Pursuant to an Investment Advisory Agreement with the Trust, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment AdvisoryAgreement, 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 BrazilSmall-Cap, iShares MSCI China, iShares MSCI ChinaSmall-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:
Aggregate Average Daily Net Assets |
Investment Advisory Fee | |
First $2 billion |
0.74% | |
Over $2 billion, up to and including $4 billion | 0.69 | |
Over $4 billion, up to and including $8 billion | 0.64 | |
Over $8 billion, up to and including $16 billion | 0.57 | |
Over $16 billion, up to and including $24 billion | 0.51 | |
Over $24 billion, up to and including $32 billion | 0.48 | |
Over $32 billion | 0.45 |
72 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements(unaudited) (continued)
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 |
Distributor:BlackRock Investments, LLC, an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.
Securities Lending:The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan in a money market fund managed by BFA, or its affiliates, however, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04% (the “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. Each Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.
Pursuant to the current securities lending agreement, each Fund retains 82% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees. Prior to January 1, 2019, the Fund retained 80% of securities lending income (which excludes collateral investment fees) and the amount retained was not 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 a specified threshold, each Fund, pursuant to the 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. Prior to January 1, 2019, the Fund was subject to the same terms under the previous securities lending fee arrangement.
The share of securities lending income earned by each Fund is shown as securities lending income – affiliated – net in its statement of operations. For the six months ended February 28, 2019, the Funds paid BTC the following amounts for securities lending agent services:
iShares ETF |
Fees Paid to BTC | |||
MSCI Argentina and Global Exposure |
$ |
327 |
| |
MSCI China | 372,871 | |||
MSCI ChinaSmall-Cap | 18,928 | |||
MSCI Poland | 7,025 | |||
MSCI UAE | 5 |
Officers and Trustees:Certain officers and/or trustees of the Trust are officers and/or trustees of BlackRock or its affiliates.
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 Rule17a-7.
For the six months ended February 28, 2019, transactions executed by the Funds pursuant to Rule17a-7 under the 1940 Act were as follows:
iShares ETF |
Purchases |
Sales | ||||||
MSCI Argentina and Global Exposure |
$ |
1,255,924 |
|
$ |
93,206 |
| ||
MSCI China | 2,570,752 | 15,128,376 | ||||||
MSCI ChinaSmall-Cap | 862,209 | 860,769 | ||||||
MSCI Peru | — | 1,254,914 | ||||||
MSCI Poland | 2,014,951 | 265,297 |
Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is shown as dividends – affiliated in the statement of operations.
A fund, in order to improve its portfolio liquidity and its ability to track its underlying index, may invest in shares of other iShares funds that invest in securities in the fund’s underlying index.
N O T E S T O F I N A N C I A L S T A T E M E N T S | 73 |
Notes to Financial Statements(unaudited) (continued)
7. | PURCHASES AND SALES |
For the six months ended February 28, 2019, purchases and sales of investments, excludingin-kind transactions and short-term investments, were as follows:
iShares ETF |
Purchases |
Sales | ||||||
MSCI Argentina and Global Exposure |
$ |
2,280,411 |
|
$ |
2,466,658 |
| ||
MSCI BrazilSmall-Cap | 34,312,223 | 9,587,144 | ||||||
MSCI China | 799,418,363 | 179,856,225 | ||||||
MSCI ChinaSmall-Cap | 5,293,556 | 4,350,213 | ||||||
MSCI Indonesia | 27,189,338 | 26,349,841 | ||||||
MSCI Peru | 15,182,575 | 15,456,894 | ||||||
MSCI Philippines | 9,605,966 | 9,387,319 | ||||||
MSCI Poland | 4,302,361 | 2,707,489 | ||||||
MSCI Qatar | 7,715,253 | 9,181,038 | ||||||
MSCI Saudi Arabia | 127,825,869 | 130,875,925 | ||||||
MSCI UAE | 25,129,739 | 12,882,843 |
For the six months ended February 28, 2019,in-kind transactions were as follows:
iShares ETF |
In-kind |
In-kind Sales | ||||||
MSCI Argentina and Global Exposure |
$ |
4,528,757 |
|
$ |
4,478,509 |
| ||
MSCI China | 194,890,821 | — | ||||||
MSCI ChinaSmall-Cap | 221,353 | 3,805,846 | ||||||
MSCI Indonesia | 320,994,393 | 117,355,226 | ||||||
MSCI Peru | 5,487,804 | 10,512,212 | ||||||
MSCI Philippines | 100,078,220 | 22,264,488 | ||||||
MSCI Poland | 77,998,146 | 36,704,780 | ||||||
MSCI UAE | 1,237,810 | 487,355 |
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.
Management has analyzed tax laws and regulations and their application to the Funds as of February 28, 2019, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.
As of August 31, 2018, 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 |
$ |
1,174,389 |
|
$ |
— |
|
$ |
1,174,389 |
| |||
MSCI BrazilSmall-Cap | 38,942,178 | — | 38,942,178 | |||||||||
MSCI China | 220,580,428 | — | 220,580,428 | |||||||||
MSCI ChinaSmall-Cap | 2,353,397 | — | 2,353,397 | |||||||||
MSCI Indonesia | 72,041,694 | 20,329 | 72,062,023 | |||||||||
MSCI Peru | 78,718,275 | 481,024 | 79,199,299 | |||||||||
MSCI Philippines | 37,243,059 | — | 37,243,059 | |||||||||
MSCI Poland | 38,730,734 | 5 | 38,730,739 | |||||||||
MSCI Qatar | 12,783,521 | — | 12,783,521 | |||||||||
MSCI Saudi Arabia | 1,309,671 | — | 1,309,671 | |||||||||
MSCI UAE | 13,962,409 | — | 13,962,409 |
(a) | Must be utilized prior to losses subject to expiration. |
A fund may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” Such fund may elect tomark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any suchmarked-to-market gains.
74 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements (unaudited) (continued)
As of February 28, 2019, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:
iShares ETF | Tax Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||
MSCI Argentina and Global Exposure | $ | 30,962,995 | $ | 1,979,037 | $ | (8,660,187 | ) | $ | (6,681,150 | ) | ||||||
MSCI BrazilSmall-Cap | 76,237,261 | 25,128,646 | (9,829,487 | ) | 15,299,159 | |||||||||||
MSCI China | 4,535,549,570 | 800,382,633 | (284,281,155 | ) | 516,101,478 | |||||||||||
MSCI ChinaSmall-Cap | 30,539,237 | 1,147,446 | (6,442,252 | ) | (5,294,806 | ) | ||||||||||
MSCI Indonesia | 737,595,361 | 33,189,877 | (107,973,457 | ) | (74,783,580 | ) | ||||||||||
MSCI Peru | 212,423,667 | 15,691,776 | (65,784,494 | ) | (50,092,718 | ) | ||||||||||
MSCI Philippines | 280,150,044 | 7,339,653 | (35,438,235 | ) | (28,098,582 | ) | ||||||||||
MSCI Poland | 372,918,935 | 10,165,447 | (82,994,421 | ) | (72,828,974 | ) | ||||||||||
MSCI Qatar | 57,067,423 | 9,341,464 | (11,121,012 | ) | (1,779,548 | ) | ||||||||||
MSCI Saudi Arabia | 240,745,625 | 28,168,397 | (3,990,221 | ) | 24,178,176 | |||||||||||
MSCI UAE | 57,957,781 | 4,623,207 | (12,745,732 | ) | (8,122,525 | ) |
9. | PRINCIPAL RISKS |
In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. 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.
Investing in the securities ofnon-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.
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.
Concentration Risk:A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its schedule of investments.
When a fund concentrates its investments in issuers located in a single country or a limited number of countries, it assumes the risk that economic, regulatory, political and social conditions in that country or those countries may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.
Investments in Chinese securities, including certain Hong Kong-listed securities, involves risks specific to China. China may be subject to considerable degrees of economic, political and social instability and demonstrates significantly higher volatility from time to time in comparison to developed markets. Chinese markets generally continue to experience inefficiency, volatility and pricing anomalies resulting from governmental influence, a lack of publicly available information and/or political and social instability. Internal social unrest or confrontations with other neighboring countries may disrupt economic development in China and result in a greater risk of currency fluctuations, currencynon-convertibility, interest rate fluctuations and higher rates of inflation. Incidents involving China’s or the region’s security may cause uncertainty in
N O T E S T O F I N A N C I A L S T A T E M E N T S | 75 |
Notes to Financial Statements (unaudited) (continued)
Chinese markets and may adversely affect the Chinese economy and a fund’s investments. Reduction in spending on Chinese products and services, institution of tariffs or other trade barriers, or a downturn in any of the economies of China’s key trading partners may have an adverse impact on the Chinese economy.
When a fund concentrates its investments in securities within a single or limited number of market sectors, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.
10. | CAPITAL SHARE TRANSACTIONS |
Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable.
Transactions in capital shares were as follows:
| ||||||||||||||||
Six Months Ended 02/28/19 | Year Ended 08/31/18 | |||||||||||||||
iShares ETF | Shares | Amount | Shares | Amount | ||||||||||||
| ||||||||||||||||
MSCI Argentina and Global Exposure | ||||||||||||||||
Shares sold | 200,000 | $ | 4,785,425 | 2,600,000 | $ | 75,168,504 | ||||||||||
Shares redeemed | (200,000 | ) | (4,741,413 | ) | (2,200,000 | ) | (60,463,884 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase | — | $ | 44,012 | 400,000 | $ | 14,704,620 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
MSCI BrazilSmall-Cap | ||||||||||||||||
Shares sold | 1,850,000 | $ | 28,278,697 | 2,050,000 | $ | 33,169,945 | ||||||||||
Shares redeemed | (200,000 | ) | (2,666,379 | ) | (1,800,000 | ) | (27,852,931 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase | 1,650,000 | $ | 25,612,318 | 250,000 | $ | 5,317,014 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
MSCI China | ||||||||||||||||
Shares sold | 15,400,000 | $ | 838,952,711 | 16,600,000 | $ | 1,134,621,225 | ||||||||||
Shares redeemed | — | — | (1,800,000 | ) | (112,558,345 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase | 15,400,000 | $ | 838,952,711 | 14,800,000 | $ | 1,022,062,880 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
MSCI ChinaSmall-Cap | ||||||||||||||||
Shares sold | 50,000 | $ | 2,197,218 | 150,000 | $ | 7,515,832 | ||||||||||
Shares redeemed | (100,000 | ) | (4,198,191 | ) | (50,000 | ) | (2,796,883 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase(decrease) | (50,000 | ) | $ | (2,000,973 | ) | 100,000 | $ | 4,718,949 | ||||||||
|
|
|
|
|
|
|
| |||||||||
MSCI Indonesia | ||||||||||||||||
Shares sold | 13,000,000 | $ | 323,683,952 | 10,200,000 | $ | 269,845,147 | ||||||||||
Shares redeemed | (5,150,000 | ) | (117,822,408 | ) | (11,250,000 | ) | (284,341,532 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase(decrease) | 7,850,000 | $ | 205,861,544 | (1,050,000 | ) | $ | (14,496,385 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
MSCI Peru | ||||||||||||||||
Shares sold | 150,000 | $ | 5,646,260 | 2,000,000 | $ | 82,950,331 | ||||||||||
Shares redeemed | (300,000 | ) | (10,797,383 | ) | (2,150,000 | ) | (85,084,567 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net decrease | (150,000 | ) | $ | (5,151,123 | ) | (150,000 | ) | $ | (2,134,236 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
MSCI Philippines | ||||||||||||||||
Shares sold | 3,000,000 | $ | 100,358,284 | 1,900,000 | $ | 66,401,989 | ||||||||||
Shares redeemed | (750,000 | ) | (22,367,163 | ) | (1,500,000 | ) | (51,748,979 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase | 2,250,000 | $ | 77,991,121 | 400,000 | $ | 14,653,010 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
MSCI Poland | ||||||||||||||||
Shares sold | 3,450,000 | $ | 81,894,276 | 3,800,000 | $ | 99,241,572 | ||||||||||
Shares redeemed | (1,600,000 | ) | (36,790,187 | ) | (6,250,000 | ) | (154,657,126 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase(decrease) | 1,850,000 | $ | 45,104,089 | (2,450,000 | ) | $ | (55,415,554 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
MSCI Qatar | ||||||||||||||||
Shares sold | 200,000 | $ | 3,752,641 | 1,300,000 | $ | 20,609,864 | ||||||||||
Shares redeemed | (300,000 | ) | (5,318,319 | ) | (1,250,000 | ) | (19,998,097 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase(decrease) | (100,000 | ) | $ | (1,565,678 | ) | 50,000 | $ | 611,767 | ||||||||
|
|
|
|
|
|
|
| |||||||||
MSCI Saudi Arabia | ||||||||||||||||
Shares sold | 3,750,000 | $ | 119,976,998 | 8,400,000 | $ | 244,345,759 | ||||||||||
Shares redeemed | (4,000,000 | ) | (120,308,719 | ) | (450,000 | ) | (12,588,493 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase(decrease) | (250,000 | ) | $ | (331,721 | ) | 7,950,000 | $ | 231,757,266 | ||||||||
|
|
|
|
|
|
|
|
76 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements (unaudited) (continued)
| ||||||||||||||||
Six Months Ended 02/28/19 | Year Ended 08/31/18 | |||||||||||||||
iShares ETF | Shares | Amount | Shares | Amount | ||||||||||||
| ||||||||||||||||
MSCI UAE | ||||||||||||||||
Shares sold | 1,250,000 | $ | 17,963,845 | 350,000 | $ | 5,814,662 | ||||||||||
Shares redeemed | (300,000 | ) | (4,665,252 | ) | (650,000 | ) | (11,259,939 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase(decrease) | 950,000 | $ | 13,298,593 | (300,000 | ) | $ | (5,445,277 | ) | ||||||||
|
|
|
|
|
|
|
|
The consideration for the purchase of Creation Units of a fund in the Trust generally consists of thein-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 shares sold in the table above.
From time to time, settlement of securities related toin-kind contributions orin-kind redemptions may be delayed. In such cases, securities related toin-kind transactions are reflected as a receivable or a payable in the statement of assets and liabilities.
11. | 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.
12. | LEGAL PROCEEDINGS |
On June 16, 2016, investors in certain iShares funds (iShares Core S&PSmall-Cap ETF, iShares Russell 1000 Growth ETF, iShares Core S&P 500 ETF, iShares RussellMid-Cap Growth ETF, iShares RussellMid-Cap ETF, iShares RussellMid-Cap Value ETF, iShares Select Dividend ETF, iShares MorningstarMid-Cap ETF, iShares MorningstarLarge-Cap ETF, iShares U.S. Aerospace & Defense ETF and iShares U.S. Preferred Stock ETF)filed a 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.
13. | REGULATIONS-X AMENDMENTS |
On August 17, 2018, the SEC adopted amendments to certain disclosure requirements in Securities Act ReleaseNo. 33-10532,Disclosure Update and Simplification. The Funds have adopted the amendments pertinent to RegulationS-X in this shareholder report. The amendments impacted certain disclosure presentation on the statement of assets and liabilities, statement of changes in net assets and notes to the financial statements.
Prior year distribution information and undistributed (distributions in excess of) net investment income in the statement of changes in net assets has been modified to conform to the current year presentation in accordance with the RegulationS-X changes.
N O T E S T O F I N A N C I A L S T A T E M E N T S | 77 |
Notes to Financial Statements (unaudited) (continued)
Distributions for the year ended August 31, 2018 were classified as follows:
iShares ETF | Net Investment Income | |||
MSCI Argentina and Global Exposure | $ | 1,034,545 | ||
MSCI BrazilSmall-Cap | 3,340,505 | |||
MSCI China | 51,449,006 | |||
MSCI ChinaSmall-Cap | 738,092 | |||
MSCI Indonesia | 7,486,688 | |||
MSCI Peru | 5,225,025 | |||
MSCI Philippines | 742,473 | |||
MSCI Poland | 5,917,963 | |||
MSCI Qatar | 2,211,558 | |||
MSCI Saudi Arabia | 2,600,597 | |||
MSCI UAE | 1,907,835 |
Undistributed (distributions in excess of) net investment income as of August 31, 2018 are as follows:
iShares ETF | Undistributed (distributions in excess of) net investment income | |||
MSCI Argentina and Global Exposure | $ | (8,920 | ) | |
MSCI BrazilSmall-Cap | (1,661,220 | ) | ||
MSCI China | 27,290,179 | |||
MSCI ChinaSmall-Cap | (8,328 | ) | ||
MSCI Indonesia | 188,273 | |||
MSCI Peru | (98,441 | ) | ||
MSCI Philippines | (19,508 | ) | ||
MSCI Poland | 2,886,047 | |||
MSCI Qatar | 249,061 | |||
MSCI Saudi Arabia | 2,602,811 | |||
MSCI UAE | (333,709 | ) |
14. | SUBSEQUENT EVENTS |
Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.
78 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Supplemental Information (unaudited)
Section 19(a) Notices
The amounts and sources of distributions reported in this notice are for financial reporting purposes and are not being provided for tax reporting purposes. The actual amounts and character of the distributions for tax reporting purposes will be reported to shareholders on Form1099-DIV which is sent to shareholders shortly after calendaryear-end.
Total Cumulative Distributions for the FiscalYear-to-Date |
% Breakdown of the Total Cumulative Distributions for the FiscalYear-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 BrazilSmall-Cap(a) |
$ |
0.011827 |
|
$ |
— |
|
$ |
0.359005 |
|
$ |
0.370832 |
|
|
3 |
% |
|
— |
% |
|
97 |
% |
|
100 |
% | ||||||||
MSCI ChinaSmall-Cap(a) | 0.842781 | — | 0.830072 | 1.672853 | 50 | — | 50 | 100 | ||||||||||||||||||||||||
MSCI Indonesia(a) | 0.021964 | — | 0.025449 | 0.047413 | 46 | — | 54 | 100 | ||||||||||||||||||||||||
MSCI Peru(a) | 0.117917 | — | 0.040265 | 0.158182 | 75 | — | 25 | 100 | ||||||||||||||||||||||||
MSCI Philippines(a) | 0.010993 | — | 0.009792 | 0.020785 | 53 | — | 47 | 100 | ||||||||||||||||||||||||
MSCI Qatar(a) | 0.089568 | — | 0.030704 | 0.120272 | 74 | — | 26 | 100 | ||||||||||||||||||||||||
MSCI UAE(a) | 0.058023 | — | 0.015713 | 0.073736 | 79 | — | 21 | 100 |
(a) | The Fund estimates that it has distributed more than the amount of earned income and net realized gains; therefore, a portion of the distribution may be a return of capital. A return of capital may occur, for example, when some or all of the shareholder’s investment in the Fund is returned to the shareholder. A return of capital does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. When distributions exceed total return performance, the difference will incrementally reduce the Fund’s net asset value per share. |
S U P P L E M E N T A L I N F O R M A T I O N | 79 |
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’ FormsN-Q are available on the SEC’s website at www.sec.gov. The iShares Funds also disclose their complete schedule of portfolio holdings on a daily basis on the iShares website at www.iShares.com.
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-free1-800-474-2737; (2) on the iShares website at www.iShares.com; and (3) on the SEC website at www.sec.gov.
80 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Glossary of Terms Used in this Report
Portfolio Abbreviations - Equity | ||
ADR | American Depositary Receipt | |
NVS | Non-Voting Shares |
G L O S S A R Y O F T E R M S U S E D I N T H I S R E P O R T | 81 |
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.
©2019 BlackRock, Inc. All rights reserved.iSHARESandBLACKROCKare registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.
iS-SAR-806-0219
FEBRUARY 28, 2019
2019 SEMI-ANNUAL REPORT (UNAUDITED) |
iShares Trust
▶ | iShares MSCI Denmark ETF | EDEN | Cboe BZX |
▶ | iShares MSCI Finland ETF | EFNL | Cboe BZX |
▶ | iShares MSCI GermanySmall-Cap ETF | EWGS | Cboe BZX |
▶ | iShares MSCI Ireland ETF | EIRL | NYSE Arca |
▶ | iShares MSCI New Zealand ETF | ENZL | NASDAQ |
▶ | iShares MSCI Norway ETF | ENOR | Cboe BZX |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of each Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
You may elect to receive all future reports in paper free of charge. If you hold accounts through a financial intermediary, you can follow the instructions included with this disclosure, if applicable, or contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. Please note that not all financial intermediaries may offer this service. Your election to receive reports in paper will apply to all funds held with your financial intermediary.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive electronic delivery of shareholder reports and other communications by contacting your financial intermediary. Please note that not all financial intermediaries may offer this service.
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11 | ||||
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12 | ||||
Financial Statements | ||||
26 | ||||
28 | ||||
30 | ||||
33 | ||||
39 | ||||
47 | ||||
48 | ||||
49 |
Fund Summary as of February 28, 2019 | iShares® MSCI Denmark ETF |
Investment Objective
TheiShares MSCI Denmark ETF (the “Fund”) 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.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||||||
6 Months | 1 Year | 5 Years | Since Inception | 1 Year | 5 Years | Since Inception | ||||||||||||||||||||||||||
Fund NAV | (8.07 | )% | (7.90 | )% | 5.64 | % | 14.53 | % | (7.90 | )% | 31.59 | % | 161.94 | % | ||||||||||||||||||
Fund Market | (7.86 | ) | (7.48 | ) | 5.62 | 14.52 | (7.48 | ) | 31.47 | 161.74 | ||||||||||||||||||||||
Index | (8.00 | ) | (7.76 | ) | 5.93 | 14.82 | (7.76 | ) | 33.41 | 166.75 |
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.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
| Beginning Account Value (09/01/18) | | | Ending Account Value (02/28/19) | | | Expenses Paid During the Period | (a) | | Beginning Account Value (09/01/18) | | | Ending Account Value (02/28/19) | | | Expenses Paid During the Period | (a) | | Annualized Expense Ratio | | ||||||||||
$ | 1,000.00 | $ | 919.30 | $ | 2.52 | $ | 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. |
Portfolio Information
ALLOCATION BY SECTOR
| ||||
Sector | | Percent of Total Investments | (a) | |
Health Care | 39.6 | % | ||
Industrials | 24.1 | |||
Financials | 11.1 | |||
Materials | 7.9 | |||
Consumer Staples | 7.2 | |||
Utilities | 4.5 | |||
Consumer Discretionary | 3.1 | |||
Information Technology | 2.3 | |||
Energy | 0.2 |
(a) | Excludes money market funds. |
TEN LARGEST HOLDINGS
| ||||
Security | | Percent of Total Investments | (a) | |
Novo Nordisk A/S, Class B | 21.7 | % | ||
Vestas Wind Systems A/S | 6.0 | |||
DSV A/S | 5.8 | |||
Danske Bank A/S | 5.3 | |||
Coloplast A/S, Class B | 4.5 | |||
Orsted A/S | 4.5 | |||
Carlsberg A/S, Class B | 4.5 | |||
Genmab A/S | 4.1 | |||
Chr Hansen Holding A/S | 4.0 | |||
Novozymes A/S, Class B | 3.9 |
FUND SUMMARY | 5 |
Fund Summary as of February 28, 2019 | iShares® MSCI Finland ETF |
Investment Objective
TheiShares MSCI Finland ETF (the “Fund”) 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.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||||||
6 Months | 1 Year | 5 Years | Since Inception | 1 Year | 5 Years | Since Inception | ||||||||||||||||||||||||||
Fund NAV | (7.13 | )% | (5.47 | )% | 4.67 | % | 9.36 | % | (5.47 | )% | 25.61 | % | 88.66 | % | ||||||||||||||||||
Fund Market | (6.67 | ) | (5.19 | ) | 4.70 | 9.35 | (5.19 | ) | 25.82 | 88.58 | ||||||||||||||||||||||
Index | (7.05 | ) | (6.07 | ) | 4.14 | 8.84 | (6.07 | ) | 22.48 | 82.51 |
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.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
| Beginning Account Value (09/01/18) | | | Ending Account Value (02/28/19) | | | Expenses Paid During the Period | (a) | | Beginning Account Value (09/01/18) | | | Ending Account Value (02/28/19) | | | Expenses Paid During the Period | (a) | | Annualized Expense Ratio | | ||||||||||
$ | 1,000.00 | $ | 928.70 | $ | 2.58 | $ | 1,000.00 | $ | 1,022.10 | $ | 2.71 | 0.54 | % |
(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. |
Portfolio Information
ALLOCATION BY SECTOR
| ||||
Sector | | Percent of Total Investments | (a) | |
Industrials | 24.6 | % | ||
Information Technology | 19.5 | |||
Materials | 18.2 | |||
Financials | 11.2 | |||
Consumer Discretionary | 6.5 | |||
Communication Services | 5.2 | |||
Utilities | 4.5 | |||
Energy | 4.4 | |||
Health Care | 2.8 | |||
Consumer Staples | 2.5 | |||
Real Estate | 0.6 |
(a) | Excludes money market funds. |
TEN LARGEST HOLDINGS
| ||||
Security | | Percent of Total Investments | (a) | |
Nokia OYJ | 17.9 | % | ||
Sampo OYJ, Class A | 10.7 | |||
Kone OYJ, Class B | 8.0 | |||
UPM-Kymmene OYJ | 7.7 | |||
Fortum OYJ | 4.5 | |||
Neste OYJ | 4.4 | |||
Stora Enso OYJ, Class R | 4.4 | |||
Wartsila OYJ Abp | 4.3 | |||
Elisa OYJ | 3.6 | |||
Amer Sports OYJ | 3.4 |
6 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Fund Summary as of February 28, 2019 | iShares® MSCI Germany Small-Cap ETF |
Investment Objective
TheiShares MSCI GermanySmall-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.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||||||
6 Months | 1 Year | 5 Years | Since Inception | 1 Year | 5 Years | Since Inception | ||||||||||||||||||||||||||
Fund NAV | (13.94 | )% | (15.23 | )% | 6.41 | % | 13.00 | % | (15.23 | )% | 36.43 | % | 138.06 | % | ||||||||||||||||||
Fund Market | (13.67 | ) | (14.83 | ) | 6.42 | 12.99 | (14.83 | ) | 36.52 | 137.82 | ||||||||||||||||||||||
Index | (13.94 | ) | (15.59 | ) | 6.25 | 12.85 | (15.59 | ) | 35.39 | 135.94 |
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.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
| Beginning Account Value (09/01/18) | | | Ending Account Value (02/28/19) | | | Expenses Paid During the Period | (a) | | Beginning Account Value (09/01/18) | | | Ending Account Value (02/28/19) | | | Expenses Paid During the Period | (a) | | Annualized Expense Ratio | | ||||||||||
$ | 1,000.00 | $ | 860.60 | $ | 2.72 | $ | 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. |
Portfolio Information
ALLOCATION BY SECTOR
| ||||
Sector | | Percent of Total Investments | (a) | |
Industrials | 24.0 | % | ||
Real Estate | 18.1 | |||
Information Technology | 14.5 | |||
Health Care | 11.5 | |||
Communication Services | 10.5 | |||
Financials | 8.1 | |||
Consumer Discretionary | 5.9 | |||
Materials | 5.5 | |||
Consumer Staples | 1.3 | |||
Other (each representing less than 1%) | 0.6 |
(a) | Excludes money market funds. |
TEN LARGEST HOLDINGS
| ||||
Security | | Percent of Total Investments | (a) | |
LEG Immobilien AG | 5.3 | % | ||
Scout24 AG | 4.2 | |||
Rheinmetall AG | 3.5 | |||
K+S AG | 2.7 | |||
Carl Zeiss Meditec AG | 2.6 | |||
MorphoSys AG | 2.4 | |||
Evotec AG | 2.2 | |||
TAG Immobilien AG | 2.2 | |||
Nemetschek SE | 2.1 | |||
Grand City Properties SA | 2.1 |
FUND SUMMARY | 7 |
Fund Summary as of February 28, 2019 | iShares® MSCI Ireland ETF |
Investment Objective
TheiShares MSCI Ireland ETF (the “Fund”) 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
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||||||
6 Months | 1 Year | 5 Years | Since Inception | 1 Year | 5 Years | Since Inception | ||||||||||||||||||||||||||
Fund NAV | (9.99 | )% | (9.13 | )% | 2.13 | % | 8.97 | % | (9.13 | )% | 11.13 | % | 113.32 | % | ||||||||||||||||||
Fund Market | (9.87 | ) | (8.92 | ) | 1.90 | 8.93 | (8.92 | ) | 9.88 | 112.67 | ||||||||||||||||||||||
Index | (9.51 | ) | (8.58 | ) | 2.53 | 9.44 | (8.58 | ) | 13.32 | 121.62 |
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.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
| Beginning Account Value (09/01/18) | | | Ending Account Value (02/28/19) | | | Expenses Paid During the Period | (a) | | Beginning Account Value (09/01/18) | | | Ending Account Value (02/28/19) | | | Expenses Paid During the Period | (a) | | Annualized Expense Ratio | | ||||||||||
$ | 1,000.00 | $ | 900.10 | $ | 2.31 | $ | 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 11 for more information. |
Portfolio Information
ALLOCATION BY SECTOR
| ||||
Sector | | Percent of Total Investments | (a) | |
Materials | 26.4 | % | ||
Consumer Staples | 25.7 | |||
Industrials | 13.4 | |||
Consumer Discretionary | 11.9 | |||
Financials | 10.7 | |||
Health Care | 6.1 | |||
Real Estate | 5.8 | |||
Information Technology | 0.0 | (b) |
TEN LARGEST HOLDINGS
| ||||
Security | | Percent of Total Investments | (a) | |
CRH PLC | 22.3 | % | ||
Kerry Group PLC, Class A | 15.4 | |||
ICON PLC | 6.1 | |||
Glanbia PLC | 4.8 | |||
Kingspan Group PLC | 4.7 | |||
Bank of Ireland Group PLC | 4.7 | |||
AIB Group PLC | 4.6 | |||
Paddy Power Betfair PLC | 4.5 | |||
Smurfit Kappa Group PLC | 4.1 | |||
Grafton Group PLC | 3.6 |
(a) | Excludes money market funds. |
(b) | Rounds to less than 0.1%. |
8 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Fund Summary as of February 28, 2019 | iShares® MSCI New Zealand ETF |
Investment Objective
TheiShares MSCI New Zealand ETF (the “Fund”) 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.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||||||
6 Months | 1 Year | 5 Years | Since Inception | 1 Year | 5 Years | Since Inception | ||||||||||||||||||||||||||
Fund NAV | 2.79 | % | 5.25 | % | 8.91 | % | 13.21 | % | 5.25 | % | 53.25 | % | 186.88 | % | ||||||||||||||||||
Fund Market | 2.69 | 5.91 | 8.88 | 13.16 | 5.91 | 53.04 | 185.85 | |||||||||||||||||||||||||
Index | 2.99 | 5.69 | 9.35 | 13.67 | 5.69 | 56.36 | 196.96 |
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.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
| Beginning Account Value (09/01/18) | | | Ending Account Value (02/28/19) | | | Expenses Paid During the Period | (a) | | Beginning Account Value (09/01/18) | | | Ending Account Value (02/28/19) | | | Expenses Paid During the Period | (a) | | Annualized Expense Ratio | | ||||||||||
$ | 1,000.00 | $ | 1,027.90 | $ | 2.46 | $ | 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 11 for more information. |
Portfolio Information
ALLOCATION BY SECTOR
| ||||
Sector | | Percent of Total Investments | (a) | |
Health Care | 18.9 | % | ||
Utilities | 17.4 | |||
Consumer Staples | 14.2 | |||
Communication Services | 12.1 | |||
Industrials | 11.8 | |||
Real Estate | 8.8 | |||
Consumer Discretionary | 8.3 | |||
Materials | 4.2 | |||
Energy | 3.6 | |||
Information Technology | 0.7 |
(a) | Excludes money market funds. |
TEN LARGEST HOLDINGS
| ||||
Security | | Percent of Total Investments | (a) | |
a2 Milk Co. Ltd. | 12.9 | % | ||
Fisher & Paykel Healthcare Corp. Ltd. | 10.4 | |||
Auckland International Airport Ltd. | 9.2 | |||
Spark New Zealand Ltd. | 8.4 | |||
Ryman Healthcare Ltd. | 5.3 | |||
Meridian Energy Ltd. | 4.4 | |||
Contact Energy Ltd. | 4.4 | |||
Fletcher Building Ltd. | 4.2 | |||
Trade Me Group Ltd. | 3.5 | |||
Mercury NZ Ltd. | 3.5 |
FUND SUMMARY | 9 |
Fund Summary as of February 28, 2019 | iShares® MSCI Norway ETF |
Investment Objective
TheiShares MSCI Norway ETF (the “Fund”) 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.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||||||
6 Months | 1 Year | 5 Years | Since Inception | 1 Year | 5 Years | Since Inception | ||||||||||||||||||||||||||
Fund NAV | (8.04 | )% | (4.40 | )% | (1.49 | )% | 2.56 | % | (4.40 | )% | (7.23 | )% | 19.70 | % | ||||||||||||||||||
Fund Market | (7.67 | ) | (3.12 | ) | (1.45 | ) | 2.57 | (3.12 | ) | (7.06 | ) | 19.73 | ||||||||||||||||||||
Index | (7.82 | ) | (3.92 | ) | (1.21 | ) | 2.87 | (3.92 | ) | (5.89 | ) | 22.26 |
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.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
| Beginning Account Value (09/01/18) | | | Ending Account Value (02/28/19) | | | Expenses Paid During the Period | (a) | | Beginning Account Value (09/01/18) | | | Ending Account Value (02/28/19) | | | Expenses Paid During the Period | (a) | | Annualized Expense Ratio | | ||||||||||
$ | 1,000.00 | $ | 919.60 | $ | 2.52 | $ | 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. |
Portfolio Information
ALLOCATION BY SECTOR
| ||||
Sector | | Percent of Total Investments | (a) | |
Energy | 29.9 | % | ||
Financials | 23.4 | |||
Consumer Staples | 16.6 | |||
Communication Services | 12.0 | |||
Materials | 9.1 | |||
Industrials | 3.7 | |||
Information Technology | 1.8 | |||
Real Estate | 1.5 | |||
Consumer Discretionary | 1.2 | |||
Other (each representing less than 1%) | 0.8 |
(a) | Excludes money market funds. |
TEN LARGEST HOLDINGS
| ||||
Security | | Percent of Total Investments | (a) | |
Equinor ASA | 17.3 | % | ||
DNB ASA | 12.1 | |||
Telenor ASA | 9.4 | |||
Mowi ASA | 6.0 | |||
Yara International ASA | 4.6 | |||
Orkla ASA | 4.1 | |||
Norsk Hydro ASA | 3.6 | |||
Storebrand ASA | 2.6 | |||
Aker BP ASA | 2.6 | |||
Schibsted ASA, Class B | 2.6 |
10 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
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 recentmonth-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 ask on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not trade in the secondary market until after the fund ’s inception, for the period from inception to the first day of secondary market trading in shares of the fund, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.
As a shareholder of your Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested at the beginning of the period (or from the commencement of operations if less than 6 months) and held through the end of the period, is intended to help you understand your ongoing costs (in dollars and cents) of investing in your Fund and to compare these costs with the ongoing costs of investing in other funds.
Actual Expenses– The table provides information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary feewaivers, if any. To estimate the expenses that you paid on your account over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During the Period.”
Hypothetical Example for Comparison Purposes– The table also provides information about hypothetical account values and hypothetical expenses based on yourFund’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 |
Schedule of Investments (unaudited) February 28, 2019 | iShares® MSCI Denmark ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Banks — 7.8% | ||||||||
Danske Bank A/S | 131,473 | $ | 2,618,504 | |||||
Jyske Bank A/S, Registered | 14,964 | 586,703 | ||||||
Spar Nord Bank A/S | 29,178 | 251,154 | ||||||
Sydbank A/S | 16,862 | 401,973 | ||||||
|
| |||||||
3,858,334 | ||||||||
Beverages — 6.0% | ||||||||
Carlsberg A/S, Class B | 18,050 | 2,188,931 | ||||||
Royal Unibrew A/S | 10,472 | 775,135 | ||||||
|
| |||||||
2,964,066 | ||||||||
Biotechnology — 4.9% | ||||||||
Bavarian Nordic A/S(a)(b) | 10,476 | 237,106 | ||||||
Genmab A/S(a) | 11,517 | 1,992,357 | ||||||
Zealand Pharma A/S(a) | 12,889 | 190,611 | ||||||
|
| |||||||
2,420,074 | ||||||||
Building Products — 1.0% | ||||||||
Rockwool International A/S, Class B | 2,048 | 500,412 | ||||||
|
| |||||||
Chemicals — 7.8% | ||||||||
Chr Hansen Holding A/S | 19,190 | 1,956,986 | ||||||
Novozymes A/S, Class B | 42,043 | 1,910,841 | ||||||
|
| |||||||
3,867,827 | ||||||||
Commercial Services & Supplies — 2.1% | ||||||||
ISS A/S | 33,100 | 1,034,075 | ||||||
|
| |||||||
Construction & Engineering — 1.5% | ||||||||
FLSmidth & Co. A/S | 9,630 | 462,666 | ||||||
Per Aarsleff Holding A/S | 8,066 | 273,286 | ||||||
|
| |||||||
735,952 | ||||||||
Electric Utilities — 4.4% | ||||||||
Orsted A/S(c) | 30,157 | 2,190,793 | ||||||
|
| |||||||
Electrical Equipment — 6.4% | ||||||||
NKT A/S(a)(b) | 11,045 | 204,640 | ||||||
Vestas Wind Systems A/S | 35,560 | 2,963,198 | ||||||
|
| |||||||
3,167,838 | ||||||||
Food Products — 0.6% | ||||||||
Schouw & Co. A/S | 3,665 | 293,377 | ||||||
|
| |||||||
Health Care Equipment & Supplies — 10.4% | ||||||||
Ambu A/S, Series B(b) | 35,113 | 824,196 | ||||||
Coloplast A/S, Class B | 22,005 | 2,195,697 | ||||||
GN Store Nord A/S | 28,925 | 1,395,417 | ||||||
William Demant Holding A/S(a) | 24,412 | 733,966 | ||||||
|
| |||||||
5,149,276 | ||||||||
Health Care Technology — 0.4% | ||||||||
NNIT A/S(c) | 6,405 | 186,315 | ||||||
|
| |||||||
Household Durables — 0.4% | ||||||||
Bang & Olufsen A/S(a) | 14,070 | 201,850 | ||||||
|
| |||||||
Insurance — 3.2% | ||||||||
Alm Brand A/S | 25,812 | 221,787 | ||||||
Topdanmark A/S | 11,985 | 591,540 | ||||||
Tryg A/S | 27,904 | 761,448 | ||||||
|
| |||||||
1,574,775 | ||||||||
Machinery — 0.6% | ||||||||
Nilfisk Holding A/S(a) | 7,572 | 321,841 | ||||||
|
|
Security | Shares | Value | ||||||
Marine — 6.4% | ||||||||
AP Moller - Maersk A/S, Class A | 749 | $ | 964,213 | |||||
AP Moller - Maersk A/S, Class B, NVS | 1,228 | 1,656,750 | ||||||
D/S Norden A/S(a)(b) | 13,419 | 191,794 | ||||||
Dfds A/S | 8,258 | 377,844 | ||||||
|
| |||||||
3,190,601 | ||||||||
Oil, Gas & Consumable Fuels — 0.2% | ||||||||
TORM PLC(a) | 20,247 | 128,701 | ||||||
|
| |||||||
Pharmaceuticals — 23.5% | ||||||||
ALK-Abello A/S(a) | 2,115 | 331,826 | ||||||
H Lundbeck A/S | 14,885 | 681,516 | ||||||
Novo Nordisk A/S, Class B | 216,758 | 10,647,187 | ||||||
|
| |||||||
11,660,529 | ||||||||
Road & Rail — 5.7% | ||||||||
DSV A/S | 34,304 | 2,856,441 | ||||||
|
| |||||||
Software — 2.3% | ||||||||
Netcompany Group A/S(a)(c) | 8,770 | 320,294 | ||||||
SimCorp A/S | 9,195 | 828,663 | ||||||
|
| |||||||
1,148,957 | ||||||||
Specialty Retail — 0.4% | ||||||||
Matas A/S | 17,544 | 185,821 | ||||||
|
| |||||||
Textiles, Apparel & Luxury Goods — 2.3% | ||||||||
Pandora A/S | 21,595 | 1,134,411 | ||||||
|
| |||||||
Tobacco — 0.5% | ||||||||
Scandinavian Tobacco Group A/S(c) | 20,381 | 269,370 | ||||||
|
| |||||||
Total Common Stocks — 98.8% | 49,041,636 | |||||||
|
| |||||||
Short-Term Investments | ||||||||
Money Market Funds — 2.9% | ||||||||
BlackRock Cash Funds: Institutional, | 1,404,673 | 1,405,235 | ||||||
BlackRock Cash Funds: Treasury, | 28,907 | 28,907 | ||||||
|
| |||||||
1,434,142 | ||||||||
|
| |||||||
Total Short-Term Investments — 2.9% | 1,434,142 | |||||||
|
| |||||||
Total Investments in Securities — 101.7% | 50,475,778 | |||||||
Other Assets, Less Liabilities — (1.7)% | (841,751 | ) | ||||||
|
| |||||||
Net Assets — 100.0% | $ | 49,634,027 | ||||||
|
|
(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) | Annualized7-day yield as ofperiod-end. |
(f) | All or a portion of this security was purchased with cash collateral received from loaned securities. |
12 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI Denmark ETF |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2019, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Affiliated Issuer | | Shares Held at 08/31/18 | | Net Activity | | Shares Held at 02/28/19 | | | Value at 02/28/19 | | Income | | Net Realized Gain (Loss) | (a) | | Change in Unrealized Appreciation (Depreciation) | | |||||||||||
BlackRock Cash Funds: Institutional, | 771,104 | 633,569 | 1,404,673 | $ | 1,405,235 | $ | 7,843 | (b) | $ | (162 | ) | $ | (23 | ) | ||||||||||||||
BlackRock Cash Funds: Treasury, | 15,884 | 13,023 | 28,907 | 28,907 | 335 | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
$ | 1,434,142 | $ | 8,178 | $ | (162 | ) | $ | (23 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Includes 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, and less fees paid to BTC as securities lending agent. |
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, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2019. 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 | $ | 49,041,636 | $ | — | $ | — | $ | 49,041,636 | ||||||||
Money Market Funds | 1,434,142 | — | — | 1,434,142 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 50,475,778 | $ | — | $ | — | $ | 50,475,778 | |||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
S C H E D U L E O F I N V E S T M E N T S | 13 |
Schedule of Investments (unaudited) February 28, 2019 | iShares® MSCI Finland ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Airlines — 0.5% | ||||||||
Finnair OYJ | 18,726 | $ | 174,531 | |||||
|
| |||||||
Auto Components — 2.6% | ||||||||
Nokian Renkaat OYJ | 24,043 | 851,449 | ||||||
|
| |||||||
Banks — 0.5% | ||||||||
Aktia Bank OYJ | 16,928 | 176,953 | ||||||
|
| |||||||
Building Products — 0.6% | ||||||||
Uponor OYJ | 17,154 | 201,779 | ||||||
|
| |||||||
Chemicals — 1.6% | ||||||||
Kemira OYJ | 24,973 | 334,416 | ||||||
Tikkurila OYJ | 12,553 | 207,265 | ||||||
|
| |||||||
541,681 | ||||||||
Commercial Services & Supplies — 0.6% | ||||||||
Caverion OYJ(a) | 32,235 | 188,852 | ||||||
|
| |||||||
Communications Equipment — 17.7% | ||||||||
Nokia OYJ | 965,363 | 5,843,663 | ||||||
|
| |||||||
Construction & Engineering — 1.2% | ||||||||
Lehto Group OYJ(b) | 22,721 | 115,132 | ||||||
YIT OYJ | 43,538 | 266,475 | ||||||
|
| |||||||
381,607 | ||||||||
Containers & Packaging — 2.4% | ||||||||
Huhtamaki OYJ | 22,161 | 803,222 | ||||||
|
| |||||||
Diversified Telecommunication Services — 4.5% | ||||||||
DNA OYJ | 14,561 | 294,140 | ||||||
Elisa OYJ | 28,217 | 1,185,302 | ||||||
|
| |||||||
1,479,442 | ||||||||
Electric Utilities — 4.5% | ||||||||
Fortum OYJ | 66,220 | 1,471,901 | ||||||
|
| |||||||
Food & Staples Retailing — 2.4% | ||||||||
Kesko OYJ, Class B | 13,384 | 799,815 | ||||||
|
| |||||||
Health Care Providers & Services — 0.5% | ||||||||
Oriola OYJ, Class B | 57,504 | 152,895 | ||||||
|
| |||||||
Insurance — 10.6% | ||||||||
Sampo OYJ, Class A | 72,316 | 3,484,894 | ||||||
|
| |||||||
IT Services — 1.2% | ||||||||
Tieto OYJ | 13,177 | 390,121 | ||||||
|
| |||||||
Leisure Products — 3.3% | ||||||||
Amer Sports OYJ | 24,348 | 1,104,845 | ||||||
|
| |||||||
Machinery — 20.3% | ||||||||
Cargotec OYJ, Class B | 9,400 | 336,527 | ||||||
Kone OYJ, Class B | 53,584 | 2,621,863 | ||||||
Konecranes OYJ | 14,729 | 517,414 | ||||||
Metso OYJ | 23,058 | 782,696 | ||||||
Outotec OYJ(a) | 50,257 | 188,680 | ||||||
Ponsse OYJ | 4,643 | 146,978 | ||||||
Valmet OYJ | 27,517 | 686,206 | ||||||
Wartsila OYJ Abp | 86,655 | 1,409,066 | ||||||
|
| |||||||
6,689,430 |
Security | Shares | Value | ||||||
Media — 0.7% | ||||||||
Sanoma OYJ | 22,059 | $ | 219,537 | |||||
|
| |||||||
Metals & Mining — 1.0% | ||||||||
Outokumpu OYJ | 79,254 | 316,134 | ||||||
|
| |||||||
Multiline Retail — 0.5% | ||||||||
Tokmanni Group Corp. | 17,595 | 174,909 | ||||||
|
| |||||||
Oil, Gas & Consumable Fuels — 4.4% | ||||||||
Neste OYJ | 14,981 | 1,441,475 | ||||||
|
| |||||||
Paper & Forest Products — 13.0% | ||||||||
Metsa Board OYJ | 47,385 | 328,330 | ||||||
Stora Enso OYJ, Class R | 107,086 | 1,437,050 | ||||||
UPM-Kymmene OYJ | 83,681 | 2,527,027 | ||||||
|
| |||||||
4,292,407 | ||||||||
Pharmaceuticals — 2.3% | ||||||||
Orion OYJ, Class B | 21,707 | 776,385 | ||||||
|
| |||||||
Real Estate Management & Development — 0.6% | ||||||||
Citycon OYJ | 108,876 | 209,769 | ||||||
|
| |||||||
Software — 0.4% | ||||||||
F-Secure OYJ | 47,793 | 128,436 | ||||||
|
| |||||||
Trading Companies & Distributors — 1.2% | ||||||||
Cramo OYJ | 11,560 | 226,542 | ||||||
Ramirent OYJ(a) | 26,468 | 180,533 | ||||||
|
| |||||||
407,075 | ||||||||
|
| |||||||
Total Common Stocks — 99.1% | 32,703,207 | |||||||
|
| |||||||
Short-Term Investments | ||||||||
Money Market Funds — 0.1% | ||||||||
BlackRock Cash Funds: Institutional, | 32,087 | 32,100 | ||||||
BlackRock Cash Funds: Treasury, | 12,294 | 12,294 | ||||||
|
| |||||||
44,394 | ||||||||
|
| |||||||
Total Short-Term Investments — 0.1% | 44,394 | |||||||
|
| |||||||
Total Investments in Securities — 99.2% | 32,747,601 | |||||||
Other Assets, Less Liabilities — 0.8% | 264,975 | |||||||
|
| |||||||
Net Assets — 100.0% | $ | 33,012,576 | ||||||
|
|
(a) | Non-income producing security. |
(b) | All or a portion of this security is on loan. |
(c) | Affiliate of the Fund. |
(d) | Annualized7-day yield as ofperiod-end. |
(e) | All or a portion of this security was purchased with cash collateral received from loaned securities. |
14 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI Finland ETF |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2019, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Affiliated Issuer | | Shares Held at 08/31/18 | | Net Activity | | Shares Held at 02/28/19 | | | Value at 02/28/19 | | Income | | Net Realized Gain (Loss) | (a) | | Change in Unrealized Appreciation (Depreciation) | | |||||||||||
BlackRock Cash Funds: Institutional, | 433,631 | (401,544 | ) | 32,087 | $ | 32,100 | $ | 3,391 | (b) | $ | 18 | $ | (75 | ) | ||||||||||||||
BlackRock Cash Funds: Treasury, | 5,022 | 7,272 | 12,294 | 12,294 | 181 | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
$ | 44,394 | $ | 3,572 | $ | 18 | $ | (75 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Includes 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, and less fees paid to BTC as securities lending agent. |
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, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2019. 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 | $ | 32,703,207 | $ | — | $ | — | $ | 32,703,207 | ||||||||
Money Market Funds | 44,394 | — | — | 44,394 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 32,747,601 | $ | — | $ | — | $ | 32,747,601 | |||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
S C H E D U L E O F I N V E S T M E N T S | 15 |
Schedule of Investments (unaudited) February 28, 2019 | iShares® MSCI Germany Small-Cap ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Aerospace & Defense — 0.1% | ||||||||
OHB SE | 1,558 | $ | 58,456 | |||||
|
| |||||||
Auto Components — 1.4% | ||||||||
EDAG Engineering Group AG(a) | 2,599 | 45,043 | ||||||
ElringKlinger AG(a) | 9,458 | 68,927 | ||||||
Leoni AG(a) | 9,826 | 268,309 | ||||||
SAF-Holland SA | 13,660 | 167,057 | ||||||
|
| |||||||
549,336 | ||||||||
Banks — 0.3% | ||||||||
comdirect bank AG | 8,454 | 99,731 | ||||||
|
| |||||||
Biotechnology — 2.4% | ||||||||
MorphoSys AG(b) | 9,563 | 983,312 | ||||||
|
| |||||||
Capital Markets — 2.5% | ||||||||
AURELIUS Equity Opportunities SE & Co KGaA(a) | 6,942 | 314,613 | ||||||
Deutsche Beteiligungs AG | 3,853 | 150,708 | ||||||
DWS Group GmbH & Co. KGaA(b)(c) | 12,032 | 357,524 | ||||||
FinTech Group AG, Registered(b) | 3,357 | 76,452 | ||||||
MLP SE | 18,008 | 92,993 | ||||||
|
| |||||||
992,290 | ||||||||
Chemicals — 2.8% | ||||||||
H&R GmbH & Co. KGaA | 3,885 | 31,542 | ||||||
K+S AG, Registered | 57,499 | 1,097,019 | ||||||
|
| |||||||
1,128,561 | ||||||||
Commercial Services & Supplies — 1.3% | ||||||||
Bilfinger SE | 9,309 | 360,830 | ||||||
Cewe Stiftung & Co. KGaA | 1,551 | 145,705 | ||||||
|
| |||||||
506,535 | ||||||||
Communications Equipment — 0.3% | ||||||||
ADVA Optical Networking SE(a)(b) | 12,789 | 123,056 | ||||||
|
| |||||||
Diversified Financial Services — 2.4% | ||||||||
GRENKE AG(a) | 7,656 | 781,995 | ||||||
Hypoport AG(a)(b) | 1,075 | 205,160 | ||||||
|
| |||||||
987,155 | ||||||||
Electrical Equipment — 1.4% | ||||||||
Nordex SE(b) | 18,956 | 242,834 | ||||||
Senvion SA(a)(b) | 6,691 | 9,143 | ||||||
SGL Carbon SE(b) | 16,600 | 134,585 | ||||||
Varta AG(b) | 4,032 | 160,326 | ||||||
|
| |||||||
546,888 | ||||||||
Electronic Equipment, Instruments & Components — 2.1% | ||||||||
Basler AG | 365 | 66,251 | ||||||
Isra Vision AG | 4,944 | 208,582 | ||||||
Jenoptik AG | 15,495 | 564,966 | ||||||
|
| |||||||
839,799 | ||||||||
Entertainment — 2.3% | ||||||||
Borussia Dortmund GmbH & Co. KGaA | 17,987 | 155,150 | ||||||
CTS Eventim AG & Co. KGaA | 17,297 | 777,996 | ||||||
|
| |||||||
933,146 | ||||||||
Equity Real Estate Investment Trusts (REITs) — 2.2% | ||||||||
alstria office REIT AG | 45,376 | 687,723 | ||||||
Hamborner REIT AG | 19,099 | 193,558 | ||||||
|
| |||||||
881,281 | ||||||||
Food Products — 1.3% | ||||||||
KWS Saat SE | 695 | 219,612 |
Security | Shares | Value | ||||||
Food Products (continued) | ||||||||
Suedzucker AG(a) | 21,495 | $ | 314,644 | |||||
|
| |||||||
534,256 | ||||||||
Health Care Equipment & Supplies — 2.9% | ||||||||
Carl Zeiss Meditec AG, Bearer | 12,090 | 1,032,517 | ||||||
Draegerwerk AG & Co. KGaA | 912 | 44,032 | ||||||
STRATEC SE | 1,450 | 101,544 | ||||||
|
| |||||||
1,178,093 | ||||||||
Health Care Providers & Services — 0.4% | ||||||||
RHOEN-KLINIKUM AG | 6,048 | 164,596 | ||||||
|
| |||||||
Health Care Technology — 1.0% | ||||||||
CompuGroup Medical SE | 7,204 | 421,644 | ||||||
|
| |||||||
Hotels, Restaurants & Leisure — 0.1% | ||||||||
bet-at-home.com AG | 846 | 57,800 | ||||||
|
| |||||||
Household Durables — 0.2% | ||||||||
Surteco Group SE | 2,310 | 67,733 | ||||||
|
| |||||||
Independent Power and Renewable Electricity Producers — 0.5% | ||||||||
Encavis AG | 27,284 | 186,410 | ||||||
|
| |||||||
Industrial Conglomerates — 4.2% | ||||||||
Indus Holding AG(a) | 5,519 | 263,006 | ||||||
MBB SE(a) | 587 | 52,070 | ||||||
Rheinmetall AG | 13,086 | 1,401,293 | ||||||
|
| |||||||
1,716,369 | ||||||||
Insurance — 0.3% | ||||||||
Wuestenrot & Wuerttembergische AG | 7,061 | 135,078 | ||||||
|
| |||||||
Interactive Media & Services — 4.9% | ||||||||
Scout24 AG(a)(c) | 32,329 | 1,704,444 | ||||||
XING SE | 846 | 289,966 | ||||||
|
| |||||||
1,994,410 | ||||||||
Internet & Direct Marketing Retail — 3.1% | ||||||||
HelloFresh SE(a)(b) | 21,915 | 239,065 | ||||||
Rocket Internet SE(b)(c) | 20,895 | 492,042 | ||||||
Shop Apotheke Europe NV(b)(c) | 2,552 | 105,196 | ||||||
Takkt AG | 9,879 | 165,364 | ||||||
zooplus AG(a)(b) | 1,826 | 241,195 | ||||||
|
| |||||||
1,242,862 | ||||||||
IT Services — 3.0% | ||||||||
Bechtle AG | 8,829 | 758,040 | ||||||
CANCOM SE | 10,013 | 410,237 | ||||||
GFT Technologies SE | 5,184 | 46,516 | ||||||
|
| |||||||
1,214,793 | ||||||||
Life Sciences Tools & Services — 4.0% | ||||||||
Evotec AG(b) | 38,041 | 894,936 | ||||||
Gerresheimer AG | 9,429 | 724,734 | ||||||
|
| |||||||
1,619,670 | ||||||||
Machinery — 11.4% | ||||||||
Aumann AG(a)(c) | 2,272 | 65,454 | ||||||
Deutz AG | 36,336 | 263,357 | ||||||
DMG Mori AG | 5,928 | 289,247 | ||||||
Duerr AG | 15,579 | 637,569 | ||||||
Heidelberger Druckmaschinen AG(b) | 75,561 | 135,343 | ||||||
JOST Werke AG(c) | 4,492 | 148,848 | ||||||
Koenig & Bauer AG(a) | 4,224 | 195,569 | ||||||
Krones AG | 4,738 | 396,275 | ||||||
Norma Group SE | 9,584 | 514,453 |
16 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI Germany Small-Cap ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Machinery (continued) | ||||||||
Pfeiffer Vacuum Technology AG(a) | 2,078 | $ | 317,310 | |||||
Rational AG | 1,024 | 671,633 | ||||||
SLM Solutions Group AG(a)(b) | 3,734 | 37,927 | ||||||
Stabilus SA | 7,429 | 429,738 | ||||||
Vossloh AG | 2,627 | 123,543 | ||||||
Wacker Neuson SE | 8,442 | 193,412 | ||||||
Washtec AG | 3,360 | 205,841 | ||||||
|
| |||||||
4,625,519 | ||||||||
Marine — 0.8% | ||||||||
Hapag-Lloyd AG(c) | 10,570 | 311,734 | ||||||
|
| |||||||
Media — 1.2% | ||||||||
Stroeer SE & Co. KGaA | 8,436 | 500,957 | ||||||
|
| |||||||
Metals & Mining — 2.5% | ||||||||
Aurubis AG | 11,471 | 631,811 | ||||||
Salzgitter AG | 11,751 | 359,410 | ||||||
|
| |||||||
991,221 | ||||||||
Oil, Gas & Consumable Fuels — 0.1% | ||||||||
VERBIO Vereinigte BioEnergie AG | 6,557 | 50,473 | ||||||
|
| |||||||
Professional Services — 0.7% | ||||||||
Amadeus Fire AG | 1,566 | 164,590 | ||||||
Bertrandt AG | 1,669 | 133,034 | ||||||
|
| |||||||
297,624 | ||||||||
Real Estate Management & Development — 15.9% | ||||||||
ADLER Real Estate AG | 10,421 | 147,618 | ||||||
ADO Properties SA(c) | 8,622 | 495,312 | ||||||
Consus Real Estate AG(b) | 11,204 | 92,368 | ||||||
Corestate Capital Holding SA | 3,850 | 132,397 | ||||||
Deutsche EuroShop AG(a) | 14,837 | 440,619 | ||||||
DIC Asset AG | 14,774 | 164,867 | ||||||
Grand City Properties SA | 35,084 | 826,969 | ||||||
LEG Immobilien AG | 18,985 | 2,122,045 | ||||||
PATRIZIA Immobilien AG | 13,887 | 301,240 | ||||||
TAG Immobilien AG | 37,409 | 873,252 | ||||||
TLG Immobilien AG | 27,944 | 811,406 | ||||||
|
| |||||||
6,408,093 | ||||||||
Road & Rail — 1.0% | ||||||||
Sixt Leasing SE | 3,664 | 57,826 | ||||||
Sixt SE | 3,655 | 336,702 | ||||||
|
| |||||||
394,528 | ||||||||
Semiconductors & Semiconductor Equipment — 4.4% | ||||||||
AIXTRON SE(b) | 33,962 | 303,889 | ||||||
Dialog Semiconductor PLC(b) | 22,970 | 701,241 | ||||||
Elmos Semiconductor AG | 3,302 | 91,180 | ||||||
Siltronic AG | 6,304 | 616,909 | ||||||
SMA Solar Technology AG(a) | 3,106 | 81,771 | ||||||
|
| |||||||
1,794,990 | ||||||||
Software — 3.8% | ||||||||
Nemetschek SE | 5,782 | 845,381 | ||||||
RIB Software SE | 11,652 | 169,965 | ||||||
Software AG | 14,435 | 528,454 | ||||||
|
| |||||||
1,543,800 | ||||||||
Specialty Retail — 1.2% | ||||||||
CECONOMY AG(a)(b) | 53,662 | 302,469 | ||||||
Hornbach Holding AG & Co. KGaA | 3,132 | 164,412 | ||||||
|
| |||||||
466,881 |
Security | Shares | Value | ||||||
Technology Hardware, Storage & | ||||||||
S&T AG(a) | 14,409 | $ | 347,512 | |||||
|
| |||||||
Thrifts & Mortgage Finance — 2.6% | ||||||||
Aareal Bank AG | 17,067 | 559,511 | ||||||
Deutsche Pfandbriefbank AG(c) | 40,447 | 499,258 | ||||||
|
| |||||||
1,058,769 | ||||||||
Trading Companies & Distributors — 0.7% | ||||||||
BayWa AG(a) | 4,065 | 112,943 | ||||||
Kloeckner & Co. SE | 22,508 | 166,851 | ||||||
|
| |||||||
279,794 | ||||||||
Transportation Infrastructure — 0.4% | ||||||||
Hamburger Hafen und Logistik AG | 7,377 | 161,284 | ||||||
|
| |||||||
Wireless Telecommunication Services — 2.0% | ||||||||
Freenet AG | 38,459 | 810,833 | ||||||
|
| |||||||
Total Common Stocks — 97.0% | 39,207,272 | |||||||
|
| |||||||
Preferred Stocks | ||||||||
Biotechnology — 0.4% | ||||||||
Biotest AG, Preference Shares, NVS | 5,960 | 155,075 | ||||||
|
| |||||||
Construction Materials — 0.2% | ||||||||
STO SE & Co. KGaA, Preference Shares, NVS | 757 | 73,011 | ||||||
|
| |||||||
Health Care Equipment & Supplies — 0.3% | ||||||||
Draegerwerk AG & Co. KGaA, Preference Shares, NVS | 2,293 | 128,985 | ||||||
|
| |||||||
Machinery — 1.1% | ||||||||
Jungheinrich AG, Preference Shares, NVS | 14,438 | 447,512 | ||||||
|
| |||||||
Road & Rail — 0.8% | ||||||||
Sixt SE, Preference Shares, NVS | 4,982 | 333,573 | ||||||
|
| |||||||
Total Preferred Stocks — 2.8% | 1,138,156 | |||||||
|
| |||||||
Short-Term Investments | ||||||||
Money Market Funds — 15.0% | ||||||||
BlackRock Cash Funds: Institutional, | 6,044,767 | 6,047,185 | ||||||
BlackRock Cash Funds: Treasury, | 21,394 | 21,394 | ||||||
|
| |||||||
6,068,579 | ||||||||
|
| |||||||
Total Short-Term Investments — 15.0% | 6,068,579 | |||||||
|
| |||||||
Total Investments in Securities — 114.8% | 46,414,007 | |||||||
Other Assets, Less Liabilities — (14.8)% | (5,992,117 | ) | ||||||
|
| |||||||
Net Assets — 100.0% | $ | 40,421,890 | ||||||
|
|
(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) | Annualized7-day yield as ofperiod-end. |
S C H E D U L E O F I N V E S T M E N T S | 17 |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI GermanySmall-Cap ETF |
(f) | All or a portion of this security was purchased with cash collateral received from loaned securities. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2019, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Affiliated Issuer | | Shares Held at 08/31/18 | | Net Activity | | Shares Held at 02/28/19 | | | Value at 02/28/19 | | Income | | Net Realized Gain (Loss) | (a) | | Change in Unrealized Appreciation (Depreciation) | | |||||||||||
BlackRock Cash Funds: Institutional, | 7,722,919 | (1,678,152 | ) | 6,044,767 | $ | 6,047,185 | $ | 79,674 | (b) | $ | 216 | $ | 217 | |||||||||||||||
BlackRock Cash Funds: Treasury, | 29,976 | (8,582 | ) | 21,394 | 21,394 | 357 | — | — | ||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
$ | 6,068,579 | $ | 80,031 | $ | 216 | $ | 217 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Includes 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, and less fees paid to BTC as securities lending agent. |
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, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2019. 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 | $ | 39,207,272 | $ | — | $ | — | $ | 39,207,272 | ||||||||
Preferred Stocks | 1,138,156 | — | — | 1,138,156 | ||||||||||||
Money Market Funds | 6,068,579 | — | — | 6,068,579 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 46,414,007 | $ | — | $ | — | $ | 46,414,007 | |||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
18 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) February 28, 2019 | iShares® MSCI Ireland ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Airlines — 3.1% | ||||||||
Ryanair Holdings PLC, ADR(a) | 23,808 | $ | 1,774,648 | |||||
|
| |||||||
Banks — 10.3% | ||||||||
AIB Group PLC | 574,178 | 2,704,186 | ||||||
Bank of Ireland Group PLC | 419,729 | 2,731,459 | ||||||
Permanent TSB Group Holdings PLC(a) | 316,805 | 569,979 | ||||||
|
| |||||||
6,005,624 | ||||||||
Beverages — 2.2% | ||||||||
C&C Group PLC | 360,721 | 1,256,905 | ||||||
|
| |||||||
Building Products — 4.7% | ||||||||
Kingspan Group PLC | 58,373 | 2,755,820 | ||||||
|
| |||||||
Construction Materials — 22.4% | ||||||||
CRH PLC | 410,878 | 13,025,417 | ||||||
|
| |||||||
Containers & Packaging — 4.1% | ||||||||
Smurfit Kappa Group PLC | 84,782 | 2,407,740 | ||||||
|
| |||||||
Diversified Financial Services — 0.2% | ||||||||
IFG Group PLC(a) | 52,230 | 95,159 | ||||||
|
| |||||||
Equity Real Estate Investment Trusts (REITs) — 5.8% | ||||||||
Green REIT PLC | 729,405 | 1,224,266 | ||||||
Hibernia REIT PLC | 789,828 | 1,154,801 | ||||||
Irish Residential Properties REIT PLC | 558,873 | 992,767 | ||||||
|
| |||||||
3,371,834 | ||||||||
Food & Staples Retailing — 1.7% | ||||||||
Total Produce PLC | 459,656 | 973,544 | ||||||
|
| |||||||
Food Products — 22.0% | ||||||||
Glanbia PLC | 137,142 | 2,784,399 | ||||||
Kerry Group PLC, Class A | 87,045 | 8,970,196 | ||||||
Origin Enterprises PLC | 162,795 | 1,004,731 | ||||||
|
| |||||||
12,759,326 | ||||||||
Hotels, Restaurants & Leisure — 6.9% | ||||||||
Dalata Hotel Group PLC | 206,211 | 1,425,313 | ||||||
Paddy Power Betfair PLC | 32,164 | 2,604,049 | ||||||
|
| |||||||
4,029,362 | ||||||||
Household Durables — 4.0% | ||||||||
Cairn Homes PLC(a) | 833,237 | 1,284,685 | ||||||
Glenveagh Properties PLC(a)(b) | 1,035,921 | 1,014,460 | ||||||
|
| |||||||
2,299,145 |
Security | Shares | Value | ||||||
Insurance — 0.3% | ||||||||
FBD Holdings PLC | 14,253 | $ | 145,744 | |||||
|
| |||||||
Life Sciences Tools & Services — 6.1% | ||||||||
ICON PLC(a) | 25,405 | 3,556,192 | ||||||
|
| |||||||
Marine — 2.0% | ||||||||
Irish Continental Group PLC | 199,342 | 1,134,954 | ||||||
|
| |||||||
Professional Services — 0.1% | ||||||||
CPL Resources PLC | 10,367 | 72,954 | ||||||
|
| |||||||
Software — 0.0% | ||||||||
Datalex PLC | 38,823 | 28,293 | ||||||
|
| |||||||
Specialty Retail — 1.1% | ||||||||
Applegreen PLC | 98,885 | 650,830 | ||||||
|
| |||||||
Trading Companies & Distributors — 3.6% | ||||||||
Grafton Group PLC | 195,755 | 2,080,387 | ||||||
|
| |||||||
Total Common Stocks — 100.6% | 58,423,878 | |||||||
|
| |||||||
Short-Term Investments | ||||||||
Money Market Funds — 0.0% | ||||||||
BlackRock Cash Funds: Treasury, | 23,173 | 23,173 | ||||||
|
| |||||||
Total Short-Term Investments — 0.0% | 23,173 | |||||||
|
| |||||||
Total Investments in Securities — 100.6% | 58,447,051 | |||||||
Other Assets, Less Liabilities — (0.6)% | (347,356 | ) | ||||||
|
| |||||||
Net Assets — 100.0% | $ | 58,099,695 | ||||||
|
|
(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) | Annualized7-day yield as ofperiod-end. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2019, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Affiliated Issuer | | Shares Held at 08/31/18 | Net Activity | | Shares Held at 02/28/19 | | Value at 02/28/19 | | Income | | Net Realized Gain (Loss) | (a) | | Change in Unrealized Appreciation (Depreciation) |
| |||||||||||||
BlackRock Cash Funds: Treasury, | 23,669 | (496 | ) | 23,173 | $ | 23,173 | $ | 290 | $ | — | $ | — | ||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
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, refer to the Notes to Financial Statements.
S C H E D U L E O F I N V E S T M E N T S | 19 |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI Ireland ETF |
Fair Value Measurements (continued)
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2019. 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 | $ | 58,423,878 | $ | — | $ | — | $ | 58,423,878 | ||||||||
Money Market Funds | 23,173 | — | — | 23,173 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 58,447,051 | $ | — | $ | — | $ | 58,447,051 | |||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
20 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) February 28, 2019 | iShares® MSCI New Zealand ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Airlines — 1.9% | ||||||||
Air New Zealand Ltd. | 1,832,546 | $ | 3,084,735 | |||||
|
| |||||||
Construction Materials — 4.2% | ||||||||
Fletcher Building Ltd.(a) | 2,020,739 | 6,734,185 | ||||||
|
| |||||||
Diversified Telecommunication Services — 11.2% | ||||||||
Chorus Ltd. | 1,267,099 | 4,507,617 | ||||||
Spark New Zealand Ltd. | 5,317,487 | 13,517,030 | ||||||
|
| |||||||
18,024,647 | ||||||||
Electric Utilities — 12.9% | ||||||||
Contact Energy Ltd. | 1,645,035 | 7,096,510 | ||||||
Genesis Energy Ltd.(b) | 1,714,807 | 3,272,196 | ||||||
Infratil Ltd. | 1,818,834 | 4,933,352 | ||||||
Mercury NZ Ltd. | 2,207,465 | 5,551,191 | ||||||
|
| |||||||
20,853,249 | ||||||||
Equity Real Estate Investment Trusts (REITs) — 8.8% | ||||||||
Argosy Property Ltd. | 2,979,713 | 2,497,730 | ||||||
Goodman Property Trust(b) | 3,252,558 | 3,635,255 | ||||||
Kiwi Property Group Ltd. | 4,597,134 | 4,417,456 | ||||||
Precinct Properties New Zealand Ltd. | 3,486,499 | 3,564,075 | ||||||
|
| |||||||
14,114,516 | ||||||||
Food Products — 14.1% | ||||||||
a2 Milk Co. Ltd.(a)(b) | 2,129,244 | 20,764,958 | ||||||
Synlait Milk Ltd.(a)(b) | 281,950 | 2,021,407 | ||||||
|
| |||||||
22,786,365 | ||||||||
Health Care Equipment & Supplies — 10.3% | ||||||||
Fisher & Paykel Healthcare Corp. Ltd. | 1,659,194 | 16,621,894 | ||||||
|
| |||||||
Health Care Providers & Services — 8.5% | ||||||||
Metlifecare Ltd. | 599,300 | 2,078,873 | ||||||
Ryman Healthcare Ltd. | 1,142,159 | 8,562,197 | ||||||
Summerset Group Holdings Ltd.(b) | 706,333 | 3,128,880 | ||||||
|
| |||||||
13,769,950 | ||||||||
Hotels, Restaurants & Leisure — 4.8% | ||||||||
Restaurant Brands New Zealand Ltd. | 369,374 | 2,212,693 | ||||||
SKYCITY Entertainment Group Ltd. | 2,130,653 | 5,474,193 | ||||||
|
| |||||||
7,686,886 | ||||||||
Independent Power and Renewable Electricity Producers — 4.4% | ||||||||
Meridian Energy Ltd. | 2,826,669 | 7,108,326 | ||||||
|
| |||||||
Internet & Direct Marketing Retail — 3.5% | ||||||||
Trade Me Group Ltd. | 1,288,966 | 5,613,171 | ||||||
|
|
Security | Shares | Value | ||||||
Media — 0.9% | ||||||||
Sky Network Television Ltd. | 1,390,550 | $ | 1,383,584 | |||||
|
| |||||||
Oil, Gas & Consumable Fuels — 3.6% | ||||||||
New Zealand Refining Co. Ltd. (The) | 794,709 | 1,137,348 | ||||||
Z Energy Ltd. | 1,136,313 | 4,692,849 | ||||||
|
| |||||||
5,830,197 | ||||||||
Road & Rail — 0.7% | ||||||||
Tourism Holdings Ltd. | 333,590 | 1,084,420 | ||||||
|
| |||||||
Software — 0.6% | ||||||||
Pushpay Holdings Ltd.(a)(b) | 456,120 | 1,044,442 | ||||||
|
| |||||||
Transportation Infrastructure — 9.2% | ||||||||
Auckland International Airport Ltd. | 2,791,923 | 14,783,949 | ||||||
|
| |||||||
Total Common Stocks — 99.6% | 160,524,516 | |||||||
|
| |||||||
Short-Term Investments | ||||||||
Money Market Funds — 14.2% | ||||||||
BlackRock Cash Funds: Institutional, | 22,796,072 | 22,805,190 | ||||||
BlackRock Cash Funds: Treasury, | 86,470 | 86,470 | ||||||
|
| |||||||
22,891,660 | ||||||||
|
| |||||||
Total Short-Term Investments — 14.2% | 22,891,660 | |||||||
|
| |||||||
Total Investments in Securities — 113.8% | 183,416,176 | |||||||
Other Assets, Less Liabilities — (13.8)% | (22,244,617 | ) | ||||||
|
| |||||||
Net Assets — 100.0% | $ | 161,171,559 | ||||||
|
|
(a) | Non-income producing security. |
(b) | All or a portion of this security is on loan. |
(c) | Affiliate of the Fund. |
(d) | Annualized7-day yield as ofperiod-end. |
(e) | All or a portion of this security was purchased with cash collateral received from loaned securities. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2019, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Affiliated Issuer | | Shares Held at 08/31/18 | | Net Activity | | Shares Held at 02/28/19 | | | Value at 02/28/19 | | Income | | Net Realized Gain (Loss) | (a) | | Change in Unrealized Appreciation (Depreciation) |
| |||||||||||
BlackRock Cash Funds: Institutional, | 14,452,593 | 8,343,479 | 22,796,072 | $ | 22,805,190 | $ | 37,974 | (b) | $ | (1,414 | ) | $ | (784 | ) | ||||||||||||||
BlackRock Cash Funds: Treasury, | 67,985 | 18,485 | 86,470 | 86,470 | 1,379 | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
$ | 22,891,660 | $ | 39,353 | $ | (1,414 | ) | $ | (784 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Includes 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, and less fees paid to BTC as securities lending agent. |
S C H E D U L E O F I N V E S T M E N T S | 21 |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI New Zealand ETF |
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, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2019. 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 | $ | 160,524,516 | $ | — | $ | — | $ | 160,524,516 | ||||||||
Money Market Funds | 22,891,660 | — | — | 22,891,660 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 183,416,176 | $ | — | $ | — | $ | 183,416,176 | |||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
22 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) February 28, 2019 | iShares® MSCI Norway ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Aerospace & Defense — 0.4% | ||||||||
Kongsberg Gruppen ASA | 8,943 | $ | 137,288 | |||||
|
| |||||||
Airlines — 0.2% | ||||||||
Norwegian Air Shuttle ASA(a)(b) | 9,349 | 63,534 | ||||||
|
| |||||||
Auto Components — 0.4% | ||||||||
Kongsberg Automotive ASA(a) | 133,127 | 128,510 | ||||||
|
| |||||||
Banks — 16.1% | ||||||||
DNB ASA | 206,270 | 3,958,190 | ||||||
Norwegian Finans Holding ASA(a) | 25,855 | 226,137 | ||||||
Sbanken ASA(c) | 17,238 | 161,763 | ||||||
SpareBank 1 Nord Norge | 27,303 | 222,988 | ||||||
Sparebank 1 Oestlandet | 7,350 | 74,993 | ||||||
SpareBank 1 SMN | 31,560 | 344,537 | ||||||
SpareBank 1SR-Bank ASA | 26,691 | 298,253 | ||||||
|
| |||||||
5,286,861 | ||||||||
Biotechnology — 0.1% | ||||||||
Nordic Nanovector ASA(a)(b) | 8,912 | 45,319 | ||||||
|
| |||||||
Chemicals — 5.5% | ||||||||
Borregaard ASA | 26,968 | 255,909 | ||||||
Elkem ASA(a)(c) | 15,615 | 53,817 | ||||||
Yara International ASA | 35,398 | 1,491,484 | ||||||
|
| |||||||
1,801,210 | ||||||||
Commercial Services & Supplies — 1.5% | ||||||||
Tomra Systems ASA | 19,236 | 508,675 | ||||||
|
| |||||||
Construction & Engineering — 0.3% | ||||||||
Veidekke ASA | 10,621 | 112,096 | ||||||
|
| |||||||
Consumer Finance — 0.4% | ||||||||
Axactor SE(a)(b) | 28,042 | 62,224 | ||||||
B2Holding ASA(b) | 42,817 | 66,432 | ||||||
|
| |||||||
128,656 | ||||||||
Diversified Financial Services — 1.3% | ||||||||
Aker ASA, Class A | 5,705 | 431,894 | ||||||
|
| |||||||
Diversified Telecommunication Services — 9.3% | ||||||||
Telenor ASA | 156,848 | 3,062,119 | ||||||
|
| |||||||
Electrical Equipment — 0.1% | ||||||||
NEL ASA(a) | 57,850 | 35,943 | ||||||
|
| |||||||
Energy Equipment & Services — 7.6% | ||||||||
Akastor ASA(a) | 57,863 | 92,484 | ||||||
Aker Solutions ASA(a) | 41,730 | 199,900 | ||||||
Borr Drilling Ltd.(a) | 92,181 | 252,391 | ||||||
BW Offshore Ltd.(a)(b) | 21,239 | 96,796 | ||||||
Kvaerner ASA(a) | 21,593 | 34,664 | ||||||
Northern Drilling Ltd.(a) | 8,059 | 54,127 | ||||||
Ocean Yield ASA | 18,141 | 130,331 | ||||||
Odfjell Drilling Ltd.(a) | 21,879 | 65,409 | ||||||
PetroleumGeo-Services ASA(a) | 81,443 | 172,103 | ||||||
Subsea 7 SA | 61,714 | 755,322 | ||||||
TGS NOPEC Geophysical Co. ASA | 24,129 | 656,981 | ||||||
|
| |||||||
2,510,508 | ||||||||
Food Products — 16.6% | ||||||||
Austevoll Seafood ASA | 23,416 | 283,850 | ||||||
Bakkafrost P/F | 10,037 | 514,862 |
Security | Shares | Value | ||||||
Food Products (continued) | ||||||||
Grieg Seafood ASA | 11,563 | $ | 151,126 | |||||
Leroy Seafood Group ASA | 70,796 | 534,300 | ||||||
Mowi ASA(a) | 85,492 | 1,974,647 | ||||||
Norway Royal Salmon ASA(b) | 3,047 | 71,840 | ||||||
Orkla ASA | 170,057 | 1,341,529 | ||||||
Salmar ASA | 12,015 | 576,682 | ||||||
|
| |||||||
5,448,836 | ||||||||
Hotels, Restaurants & Leisure — 0.1% | ||||||||
Gaming Innovation Group Inc.(a)(b) | 10,890 | 24,366 | ||||||
|
| |||||||
Independent Power and Renewable Electricity Producers — 0.7% | ||||||||
Scatec Solar ASA(c) | 23,323 | 226,779 | ||||||
|
| |||||||
Insurance — 5.5% | ||||||||
Gjensidige Forsikring ASA | 46,721 | 838,599 | ||||||
Protector Forsikring ASA(a)(b) | 18,848 | 115,120 | ||||||
Storebrand ASA | 108,264 | 861,663 | ||||||
|
| |||||||
1,815,382 | ||||||||
IT Services — 1.3% | ||||||||
Atea ASA | 21,311 | 302,220 | ||||||
Evry AS(c) | 34,114 | 125,337 | ||||||
|
| |||||||
427,557 | ||||||||
Marine — 0.9% | ||||||||
Golden Ocean Group Ltd.(b) | 25,635 | 129,099 | ||||||
Stolt-Nielsen Ltd. | 7,998 | 107,808 | ||||||
Wallenius Wilhelmsen ASA(a) | 24,271 | 78,097 | ||||||
|
| |||||||
315,004 | ||||||||
Media — 2.6% | ||||||||
Schibsted ASA, Class B | 22,887 | 848,916 | ||||||
|
| |||||||
Metals & Mining — 3.6% | ||||||||
Norsk Hydro ASA | 283,386 | 1,175,138 | ||||||
|
| |||||||
Multiline Retail — 0.4% | ||||||||
Europris ASA(c) | 36,437 | 122,147 | ||||||
|
| |||||||
Oil, Gas & Consumable Fuels — 22.1% | ||||||||
Aker BP ASA | 25,362 | 860,594 | ||||||
BW LPG Ltd.(a)(b)(c) | 24,382 | 79,767 | ||||||
DNO ASA | 172,370 | 367,172 | ||||||
Equinor ASA | 251,902 | 5,669,445 | ||||||
FLEX LNG Ltd.(a)(b) | 54,053 | 66,409 | ||||||
Frontline Ltd./Bermuda(a) | 23,993 | 155,108 | ||||||
Hoegh LNG Holdings Ltd.(b) | 14,838 | 69,186 | ||||||
|
| |||||||
7,267,681 | ||||||||
Real Estate Management & Development — 1.5% | ||||||||
Entra ASA(c) | 26,444 | 371,300 | ||||||
Norwegian Property ASA | 16,670 | 19,505 | ||||||
Selvaag Bolig ASA | 19,571 | 101,904 | ||||||
|
| |||||||
492,709 | ||||||||
Semiconductors & Semiconductor Equipment — 0.5% | ||||||||
Nordic Semiconductor ASA(a)(b) | 36,055 | 153,562 | ||||||
|
| |||||||
Specialty Retail — 0.3% | ||||||||
XXL ASA(b)(c) | 26,691 | 102,437 | ||||||
|
| |||||||
Total Common Stocks — 99.3% | 32,673,127 | |||||||
|
|
S C H E D U L E O F I N V E S T M E N T S | 23 |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI Norway ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Rights | ||||||||
Airlines — 0.2% | ||||||||
Norwegian Air Shuttle ASA, | 18,698 | $ | 54,695 | |||||
|
| |||||||
Biotechnology — 0.0% | ||||||||
Nordic Nanovector AS, (Expires 03/07/19)(a)(b) | 193 | — | ||||||
|
| |||||||
Total Rights — 0.2% | 54,695 | |||||||
|
| |||||||
Short-Term Investments | ||||||||
Money Market Funds — 3.6% | ||||||||
BlackRock Cash Funds: Institutional, | 1,151,445 | 1,151,906 | ||||||
BlackRock Cash Funds: Treasury, | 17,895 | 17,895 | ||||||
|
| |||||||
1,169,801 | ||||||||
|
| |||||||
Total Short-Term Investments — 3.6% | 1,169,801 | |||||||
|
| |||||||
Total Investments in Securities — 103.1% | 33,897,623 | |||||||
Other Assets, Less Liabilities — (3.1)% | (1,015,691 | ) | ||||||
|
| |||||||
Net Assets — 100.0% | $ | 32,881,932 | ||||||
|
|
(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) | Annualized7-day yield as ofperiod-end. |
(f) | All or a portion of this security was purchased with cash collateral received from loaned securities. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2019, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Affiliated Issuer | | Shares Held at 08/31/18 | | Net Activity | | Shares Held at 02/28/19 | | | Value at 02/28/19 | | Income | | Net Realized Gain (Loss) | (a) | | Change in Unrealized Appreciation (Depreciation) |
| |||||||||||
BlackRock Cash Funds: Institutional, | 965,925 | 185,520 | 1,151,445 | $ | 1,151,906 | $ | 13,161 | (b) | $ | (48 | ) | $ | 31 | |||||||||||||||
BlackRock Cash Funds: Treasury, | 3,447 | 14,448 | 17,895 | 17,895 | 247 | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
$ | 1,169,801 | $ | 13,408 | $ | (48 | ) | $ | 31 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Includes 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, and less fees paid to BTC as securities lending agent. |
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, refer to the Notes to Financial Statements.
24 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI Norway ETF |
Fair Value Measurements (continued)
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2019. 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 | $ | 32,673,127 | $ | — | $ | — | $ | 32,673,127 | ||||||||
Rights | 54,695 | 0 | (a) | — | 54,695 | |||||||||||
Money Market Funds | 1,169,801 | — | — | 1,169,801 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 33,897,623 | $ | 0 | (a) | $ | — | $ | 33,897,623 | ||||||||
|
|
|
|
|
|
|
|
(a) | Rounds to less than $1. |
See notes to financial statements.
S C H E D U L E O F I N V E S T M E N T S | 25 |
Statements of Assets and Liabilities(unaudited)
February 28, 2019
iShares MSCI Denmark ETF | iShares MSCI Finland ETF | iShares MSCI Germany ETF | iShares MSCI Ireland ETF | |||||||||||||
ASSETS | ||||||||||||||||
Investments in securities, at value (including securities on loan)(a): | ||||||||||||||||
Unaffiliated(b) | $ | 49,041,636 | $ | 32,703,207 | $ | 40,345,428 | $ | 58,423,878 | ||||||||
Affiliated(c) | 1,434,142 | 44,394 | 6,068,579 | 23,173 | ||||||||||||
Foreign currency, at value(d) | 30,474 | 24,218 | 23,846 | 45,023 | ||||||||||||
Receivables: | ||||||||||||||||
Investments sold | 615,063 | 508,553 | 37,035 | 2,009,909 | ||||||||||||
Securities lending income — Affiliated | 1,147 | 24 | 7,848 | — | ||||||||||||
Capital shares sold | — | 19,950 | — | — | ||||||||||||
Dividends | 23,467 | 97,301 | 29 | 1,019 | ||||||||||||
Tax reclaims | 538,014 | — | 28,348 | 21,886 | ||||||||||||
Foreign withholding tax claims | — | 342,085 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total assets | 51,683,943 | 33,739,732 | 46,511,113 | 60,524,888 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
LIABILITIES | ||||||||||||||||
Collateral on securities loaned, at value | 1,405,380 | 32,100 | 6,045,616 | — | ||||||||||||
Payables: | ||||||||||||||||
Investments purchased | 620,967 | 530,047 | 25,397 | 2,403,382 | ||||||||||||
Investment advisory fees | 23,569 | 12,541 | 18,210 | 21,811 | ||||||||||||
Professional fees | — | 53,421 | — | — | ||||||||||||
IRS compliance fee for foreign withholding tax claims | — | 99,047 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total liabilities | 2,049,916 | 727,156 | 6,089,223 | 2,425,193 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS | $ | 49,634,027 | $ | 33,012,576 | $ | 40,421,890 | $ | 58,099,695 | ||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS CONSIST OF: | ||||||||||||||||
Paid-in capital | $ | 55,336,354 | $ | 35,631,853 | $ | 51,108,986 | $ | 67,304,228 | ||||||||
Accumulated loss | (5,702,327 | ) | (2,619,277 | ) | (10,687,096 | ) | (9,204,533 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS | $ | 49,634,027 | $ | 33,012,576 | $ | 40,421,890 | $ | 58,099,695 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Shares outstanding | 800,000 | 850,000 | 750,000 | 1,400,000 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net asset value | $ | 62.04 | $ | 38.84 | $ | 53.90 | $ | 41.50 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Shares authorized | Unlimited | Unlimited | Unlimited | Unlimited | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Par value | None | None | None | None | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
(a) Securities loaned, at value | $ | 1,356,668 | $ | 30,403 | $ | 5,678,330 | $ | — | ||||||||
(b) Investments, at cost — Unaffiliated | $ | 53,864,000 | $ | 35,166,342 | $ | 47,440,230 | $ | 59,752,568 | ||||||||
(c) Investments, at cost — Affiliated | $ | 1,434,083 | $ | 44,394 | $ | 6,066,936 | $ | 23,173 | ||||||||
(d) Foreign currency, at cost | $ | 30,397 | $ | 24,152 | $ | 23,772 | $ | 44,651 |
See notes to financial statements.
26 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Statements of Assets and Liabilities (unaudited) (continued)
February 28, 2019
iShares MSCI New | iShares MSCI Norway ETF | |||||||
ASSETS | ||||||||
Investments in securities, at value (including securities on loan)(a): | ||||||||
Unaffiliated(b) | $ | 160,524,516 | $ | 32,727,822 | ||||
Affiliated(c) | 22,891,660 | 1,169,801 | ||||||
Foreign currency, at value(d) | 98,135 | 154,522 | ||||||
Receivables: | ||||||||
Investments sold | 1,321,959 | 142,132 | ||||||
Securities lending income — Affiliated | 4,327 | 2,107 | ||||||
Dividends | 145,306 | 19,531 | ||||||
Tax reclaims | — | 3,090 | ||||||
|
|
|
| |||||
Total assets | 184,985,903 | 34,219,005 | ||||||
|
|
|
| |||||
LIABILITIES | ||||||||
Collateral on securities loaned, at value | 22,806,686 | 1,151,537 | ||||||
Payables: | ||||||||
Investments purchased | 949,512 | 172,374 | ||||||
Investment advisory fees | 58,146 | 13,162 | ||||||
|
|
|
| |||||
Total liabilities | 23,814,344 | 1,337,073 | ||||||
|
|
|
| |||||
NET ASSETS | $ | 161,171,559 | $ | 32,881,932 | ||||
|
|
|
| |||||
NET ASSETS CONSIST OF: | ||||||||
Paid-in capital | $ | 167,793,849 | $ | 41,842,816 | ||||
Accumulated loss | (6,622,290 | ) | (8,960,884 | ) | ||||
|
|
|
| |||||
NET ASSETS | $ | 161,171,559 | $ | 32,881,932 | ||||
|
|
|
| |||||
Shares outstanding | 3,250,000 | 1,300,000 | ||||||
|
|
|
| |||||
Net asset value | $ | 49.59 | $ | 25.29 | ||||
|
|
|
| |||||
Shares authorized | Unlimited | Unlimited | ||||||
|
|
|
| |||||
Par value | None | None | ||||||
|
|
|
| |||||
(a) Securities loaned, at value | $ | 21,638,299 | $ | 1,062,234 | ||||
(b) Investments, at cost — Unaffiliated | $ | 159,366,873 | $ | 35,943,277 | ||||
(c) Investments, at cost — Affiliated | $ | 22,891,054 | $ | 1,169,590 | ||||
(d) Foreign currency, at cost | $ | 97,330 | $ | 153,956 |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S | 27 |
Statements of Operations (unaudited)
Six Months Ended February 28, 2019
iShares MSCI ETF | iShares MSCI Finland ETF | iShares MSCI | iShares MSCI Ireland ETF | |||||||||||||
INVESTMENT INCOME | ||||||||||||||||
Dividends — Unaffiliated | $ | 190,476 | (a) | $ | 180,870 | $ | 24,029 | $ | 305,292 | |||||||
Dividends — Affiliated | 335 | 181 | 357 | 290 | ||||||||||||
Securities lending income — Affiliated — net | 7,843 | 3,391 | 79,674 | — | ||||||||||||
Foreign taxes withheld | (29,347 | ) | — | (7,047 | ) | (5,537 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Total investment income | 169,307 | 184,442 | 97,013 | 300,045 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
EXPENSES | ||||||||||||||||
Investment advisory fees | 125,399 | 88,930 | 134,461 | 146,116 | ||||||||||||
Professional fees | — | 1,176 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total expenses | 125,399 | 90,106 | 134,461 | 146,116 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net investment income (loss) | 43,908 | 94,336 | (37,448 | ) | 153,929 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||
Investments — Unaffiliated | (607,867 | ) | (258,829 | ) | (1,150,784 | ) | (971,480 | ) | ||||||||
Investments — Affiliated | (162 | ) | 18 | 216 | — | |||||||||||
In-kind redemptions — Unaffiliated | 2,103,488 | 1,033,789 | (310,139 | ) | 344,228 | |||||||||||
Foreign currency transactions | 425 | 1,672 | 4,083 | (1,542 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net realized gain (loss) | 1,495,884 | 776,650 | (1,456,624 | ) | (628,794 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments — Unaffiliated | (3,398,452 | ) | (3,937,286 | ) | (7,042,368 | ) | (6,617,695 | ) | ||||||||
Investments — Affiliated | (23 | ) | (75 | ) | 217 | — | ||||||||||
Foreign currency translations | (11,976 | ) | (7,300 | ) | 147 | (1,023 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net change in unrealized appreciation (depreciation) | (3,410,451 | ) | (3,944,661 | ) | (7,042,004 | ) | (6,618,718 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net realized and unrealized loss | (1,914,567 | ) | (3,168,011 | ) | (8,498,628 | ) | (7,247,512 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | (1,870,659 | ) | $ | (3,073,675 | ) | $ | (8,536,076 | ) | $ | (7,093,583 | ) | ||||
|
|
|
|
|
|
|
|
(a) | Includes $79,838 related to a special distribution from IC Group A/S. |
See notes to financial statements.
28 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Statements of Operations (unaudited) (continued)
Six Months Ended February 28, 2019
iShares MSCI New Zealand ETF | iShares MSCI Norway ETF | |||||||
INVESTMENT INCOME | ||||||||
Dividends — Unaffiliated | $ | 3,115,399 | $ | 400,937 | ||||
Dividends — Affiliated | 1,379 | 247 | ||||||
Securities lending income — Affiliated — net | 37,974 | 13,161 | ||||||
Foreign taxes withheld | (447,828 | ) | (95,302 | ) | ||||
|
|
|
| |||||
Total investment income | 2,706,924 | 319,043 | ||||||
|
|
|
| |||||
EXPENSES | ||||||||
Investment advisory fees | 366,024 | 88,662 | ||||||
|
|
|
| |||||
Total expenses | 366,024 | 88,662 | ||||||
|
|
|
| |||||
Net investment income | 2,340,900 | 230,381 | ||||||
|
|
|
| |||||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||
Net realized gain (loss) from: | ||||||||
Investments — Unaffiliated | (2,545,218 | ) | (838,834 | ) | ||||
Investments — Affiliated | (1,414 | ) | (48 | ) | ||||
In-kind redemptions — Unaffiliated | 4,801,137 | 369,656 | ||||||
Foreign currency transactions | (22,064 | ) | (1,881 | ) | ||||
|
|
|
| |||||
Net realized gain (loss) | 2,232,441 | (471,107 | ) | |||||
|
|
|
| |||||
Net change in unrealized appreciation (depreciation) on: | ||||||||
Investments — Unaffiliated | (731,467 | ) | (3,383,660 | ) | ||||
Investments — Affiliated | (784 | ) | 31 | |||||
Foreign currency translations | 7,392 | 423 | ||||||
|
|
|
| |||||
Net change in unrealized appreciation (depreciation) | (724,859 | ) | (3,383,206 | ) | ||||
|
|
|
| |||||
Net realized and unrealized gain (loss) | 1,507,582 | (3,854,313 | ) | |||||
|
|
|
| |||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | 3,848,482 | $ | (3,623,932 | ) | |||
|
|
|
|
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S | 29 |
Statements of Changes in Net Assets
iShares MSCI Denmark ETF | iShares MSCI Finland ETF | |||||||||||||||
Six Months 02/28/19 | Year Ended 08/31/18 | Six Months 02/28/19 | Year Ended 08/31/18 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income | $ | 43,908 | $ | 771,945 | $ | 94,336 | $ | 1,584,085 | ||||||||
Net realized gain | 1,495,884 | 10,234,984 | 776,650 | 4,606,786 | ||||||||||||
Net change in unrealized appreciation (depreciation) | (3,410,451 | ) | (10,556,730 | ) | (3,944,661 | ) | (2,537,033 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | (1,870,659 | ) | 450,199 | (3,073,675 | ) | 3,653,838 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||||||||||
Decrease in net assets resulting from distributions to shareholders | (168,675 | ) | (1,199,663 | ) | (6,797 | ) | (1,829,682 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions | 11,024,496 | (26,169,111 | ) | (3,641,806 | ) | (7,842,584 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS(a) | ||||||||||||||||
Total increase (decrease) in net assets | 8,985,162 | (26,918,575 | ) | (6,722,278 | ) | (6,018,428 | ) | |||||||||
Beginning of period | 40,648,865 | 67,567,440 | 39,734,854 | 45,753,282 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 49,634,027 | $ | 40,648,865 | $ | 33,012,576 | $ | 39,734,854 | ||||||||
|
|
|
|
|
|
|
|
(a) | Prior year distribution character information and undistributed net investment income has been modified or removed to conform with current year RegulationS-X presentation changes. Refer to Note 12 for this prior year information. |
See notes to financial statements.
30 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Statements of Changes in Net Assets (continued)
iShares MSCI Germany Small-Cap ETF | iShares MSCI Ireland ETF | |||||||||||||||
Six Months Ended 02/28/19 (unaudited) | Year Ended 08/31/18 | Six Months Ended 02/28/19 (unaudited) | Year Ended 08/31/18 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income (loss) | $ | (37,448 | ) | $ | 1,339,789 | $ | 153,929 | $ | 911,702 | |||||||
Net realized gain (loss) | (1,456,624 | ) | 10,276,808 | (628,794 | ) | 1,329,069 | ||||||||||
Net change in unrealized appreciation (depreciation) | (7,042,004 | ) | (5,552,749 | ) | (6,618,718 | ) | 2,681,554 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | (8,536,076 | ) | 6,063,848 | (7,093,583 | ) | 4,922,325 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||||||||||
Decrease in net assets resulting from distributions to shareholders | (501,045 | ) | (1,210,800 | ) | (178,159 | ) | (1,127,676 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions | (10,801,060 | ) | 15,382,259 | (4,009,826 | ) | (2,296,182 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS(a) | ||||||||||||||||
Total increase (decrease) in net assets | (19,838,181 | ) | 20,235,307 | (11,281,568 | ) | 1,498,467 | ||||||||||
Beginning of period | 60,260,071 | 40,024,764 | 69,381,263 | 67,882,796 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 40,421,890 | $ | 60,260,071 | $ | 58,099,695 | $ | 69,381,263 | ||||||||
|
|
|
|
|
|
|
|
(a) | Prior year distribution character information and undistributed (distributions in excess of) net investment income has been modified or removed to conform with current yearRegulation S-X presentation changes. Refer to Note 12 for this prior year information. |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S | 31 |
Statements of Changes in Net Assets (continued)
iShares MSCI New Zealand ETF | iShares MSCI Norway ETF | |||||||||||||||
Six Months Ended 02/28/19 (unaudited) | Year Ended 08/31/18 | Six Months Ended 02/28/19 (unaudited) | Year Ended 08/31/18 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income | $ | 2,340,900 | $ | 5,407,619 | $ | 230,381 | $ | 1,007,885 | ||||||||
Net realized gain (loss) | 2,232,441 | 13,241,598 | (471,107 | ) | 2,413,217 | |||||||||||
Net change in unrealized appreciation (depreciation) | (724,859 | ) | (5,382,654 | ) | (3,383,206 | ) | 689,223 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | 3,848,482 | 13,266,563 | (3,623,932 | ) | 4,110,325 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||||||||||
Decrease in net assets resulting from distributions to shareholders | (2,583,224 | ) | (5,177,401 | ) | (201,322 | ) | (1,008,633 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions | 17,500,648 | (41,473,802 | ) | 6,273,201 | (5,256,826 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS(a) | ||||||||||||||||
Total increase (decrease) in net assets | 18,765,906 | (33,384,640 | ) | 2,447,947 | (2,155,134 | ) | ||||||||||
Beginning of period | 142,405,653 | 175,790,293 | 30,433,985 | 32,589,119 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 161,171,559 | $ | 142,405,653 | $ | 32,881,932 | $ | 30,433,985 | ||||||||
|
|
|
|
|
|
|
|
(a) | Prior year distribution character information and undistributed net investment income has been modified or removed to conform with current year RegulationS-X presentation changes. Refer to Note 12 for this prior year information. |
See notes to financial statements.
32 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
(For a share outstanding throughout each period)
iShares MSCI Denmark ETF | ||||||||||||||||||||||||
| Six Months Ended 02/28/19 (unaudited) |
| | Year Ended 08/31/18 | | | Year Ended 08/31/17 | | | Year Ended 08/31/16 | | | Year Ended 08/31/15 | | | Year Ended 08/31/14 | | |||||||
| ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 67.75 | $ | 67.57 | $ | 56.39 | $ | 53.99 | $ | 50.53 | $ | 37.64 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income(a) | 0.06 | (b) | 0.90 | 0.94 | 0.76 | 0.84 | 0.65 | |||||||||||||||||
Net realized and unrealized gain (loss)(c) | (5.55 | ) | 0.77 | 11.07 | 2.27 | 3.43 | 12.66 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net increase (decrease) from investment operations | (5.49 | ) | 1.67 | 12.01 | 3.03 | 4.27 | 13.31 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Distributions | ||||||||||||||||||||||||
From net investment income | (0.22 | ) | (1.49 | ) | (0.83 | ) | (0.63 | ) | (0.81 | ) | (0.42 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | (0.22 | ) | (1.49 | ) | (0.83 | ) | (0.63 | ) | (0.81 | ) | (0.42 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 62.04 | $ | 67.75 | $ | 67.57 | $ | 56.39 | $ | 53.99 | $ | 50.53 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | (8.07 | )%(d) | 2.58 | % | 21.43 | % | 5.63 | % | 8.43 | % | 35.33 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.53 | %(e) | 0.53 | % | 0.53 | % | 0.53 | % | 0.53 | % | 0.53 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income | 0.19 | %(b)(e) | 1.34 | % | 1.66 | % | 1.38 | % | 1.62 | % | 1.32 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 49,634 | $ | 40,649 | $ | 67,567 | $ | 47,928 | $ | 48,594 | $ | 60,635 | ||||||||||||
|
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|
|
|
|
|
|
|
|
|
| |||||||||||||
Portfolio turnover rate(f) | 5 | %(d) | 13 | % | 14 | % | 40 | % | 9 | % | 9 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Based on average shares outstanding. |
(b) | Includes aone-time special distribution from IC Group A/S. Excluding such special distribution, the net investment income would have been $(0.05) per share and (0.15)% 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. |
(f) | Portfolio turnover rate excludesin-kind transactions. |
See notes to financial statements.
F I N A N C I A L H I G H L I G H T S | 33 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares MSCI Finland ETF | ||||||||||||||||||||||||
| Six Months Ended 02/28/19 (unaudited) |
| | Year Ended 08/31/18 | | | Year Ended 08/31/17 | | | Year Ended 08/31/16 | | | Year Ended 08/31/15 | | | Year Ended 08/31/14 | | |||||||
| ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 41.83 | $ | 39.79 | $ | 33.19 | $ | 31.32 | $ | 34.52 | $ | 27.57 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income(a) | 0.11 | 1.39 | 1.02 | 1.51 | (b) | 0.56 | 1.72 | |||||||||||||||||
Net realized and unrealized gain (loss)(c) | (3.09 | ) | 2.16 | 6.74 | 1.13 | (3.25 | ) | 6.37 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net increase (decrease) from investment operations | (2.98 | ) | 3.55 | 7.76 | 2.64 | (2.69 | ) | 8.09 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Distributions | ||||||||||||||||||||||||
From net investment income | (0.01 | ) | (1.51 | ) | (1.16 | ) | (0.77 | ) | (0.51 | ) | (1.14 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | (0.01 | ) | (1.51 | ) | (1.16 | ) | (0.77 | ) | (0.51 | ) | (1.14 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 38.84 | $ | 41.83 | $ | 39.79 | $ | 33.19 | $ | 31.32 | $ | 34.52 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | (7.13 | )%(d) | 9.08 | % | 23.32 | % | 8.60 | %(b) | (7.90 | )% | 29.25 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.54 | %(e) | 0.53 | % | 0.55 | % | 0.72 | % | 0.53 | % | 0.53 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total expenses excluding professional fees for foreign withholding tax claims | 0.53 | %(e) | N/A | 0.53 | % | 0.53 | % | N/A | N/A | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income | 0.56 | %(e) | 3.38 | % | 2.84 | % | 4.72 | %(b) | 1.68 | % | 4.95 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 33,013 | $ | 39,735 | $ | 45,753 | $ | 38,168 | $ | 23,488 | $ | 36,246 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Portfolio turnover rate(f) | 4 | %(d) | 11 | % | 12 | % | 21 | % | 12 | % | 14 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Based on average shares outstanding. |
(b) | Reflects theone-time, positive effect of foreign withholding tax claims, net of the associated professional fees, which resulted in the following increases for the year ended August 31, 2016: |
• | 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. |
(f) | Portfolio turnover rate excludesin-kind transactions. |
See notes to financial statements.
34 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares MSCI GermanySmall-Cap ETF | ||||||||||||||||||||||||
| Six Months Ended 02/28/19 (unaudited) |
| | Year Ended 08/31/18 | | | Year Ended 08/31/17 | | | Year Ended 08/31/16 | | | Year Ended 08/31/15 | | | Year Ended 08/31/14 | | |||||||
| ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 63.43 | $ | 57.18 | $ | 43.23 | $ | 40.03 | $ | 38.93 | $ | 34.54 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income (loss)(a) | (0.04 | ) | 1.33 | 0.78 | 0.71 | 0.53 | 0.70 | |||||||||||||||||
Net realized and unrealized gain (loss)(b) | (8.86 | ) | 6.19 | 13.87 | 3.16 | 1.26 | 4.26 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net increase (decrease) from investment operations | (8.90 | ) | 7.52 | 14.65 | 3.87 | 1.79 | 4.96 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Distributions | ||||||||||||||||||||||||
From net investment income | (0.63 | ) | (1.27 | ) | (0.70 | ) | (0.67 | ) | (0.69 | ) | (0.57 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | (0.63 | ) | (1.27 | ) | (0.70 | ) | (0.67 | ) | (0.69 | ) | (0.57 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 53.90 | $ | 63.43 | $ | 57.18 | $ | 43.23 | $ | 40.03 | $ | 38.93 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | (13.94 | )%(c) | 13.22 | % | 34.12 | % | 9.72 | % | 4.61 | % | 14.21 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.59 | %(d) | 0.59 | % | 0.59 | % | 0.59 | % | 0.59 | % | 0.59 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income (loss) | (0.16 | )%(d) | 2.09 | % | 1.65 | % | 1.73 | % | 1.36 | % | 1.72 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 40,422 | $ | 60,260 | $ | 40,025 | $ | 23,779 | $ | 26,023 | $ | 36,983 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Portfolio turnover rate(e) | 5 | %(c) | 14 | % | 14 | % | 12 | % | 18 | % | 15 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Based on average shares outstanding. |
(b) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(c) | Not annualized. |
(d) | Annualized. |
(e) | Portfolio turnover rate excludesin-kind transactions. |
See notes to financial statements.
F I N A N C I A L H I G H L I G H T S | 35 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares MSCI Ireland ETF | ||||||||||||||||||||||||
| Six Months Ended 02/28/19 (unaudited) | | Year Ended 08/31/18 | | | Year Ended 08/31/17 | | | Year Ended 08/31/16 | | | Year Ended 08/31/15 | | | Year Ended 08/31/14 | | ||||||||
| ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 46.25 | $ | 43.80 | $ | 38.94 | $ | 40.34 | $ | 35.27 | $ | 31.16 | ||||||||||||
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Net investment income(a) | 0.11 | 0.61 | 0.47 | 0.49 | 0.52 | (b) | 0.47 | |||||||||||||||||
Net realized and unrealized gain (loss)(c) | (4.74 | ) | 2.62 | 4.94 | (1.33 | ) | 5.43 | 4.32 | ||||||||||||||||
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| |||||||||||||
Net increase (decrease) from investment operations | (4.63 | ) | 3.23 | 5.41 | (0.84 | ) | 5.95 | 4.79 | ||||||||||||||||
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Distributions | ||||||||||||||||||||||||
From net investment income | (0.12 | ) | (0.78 | ) | (0.55 | ) | (0.56 | ) | (0.62 | ) | (0.68 | ) | ||||||||||||
From net realized gain | — | — | — | — | (0.26 | ) | — | |||||||||||||||||
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| |||||||||||||
Total distributions | (0.12 | ) | (0.78 | ) | (0.55 | ) | (0.56 | ) | (0.88 | ) | (0.68 | ) | ||||||||||||
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| |||||||||||||
Net asset value, end of period | $ | 41.50 | $ | 46.25 | $ | 43.80 | $ | 38.94 | $ | 40.34 | $ | 35.27 | ||||||||||||
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| |||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | (9.99 | )%(d) | 7.38 | % | 13.99 | % | (2.12 | )% | 17.10 | % | 15.45 | % | ||||||||||||
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| |||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.49 | %(e) | 0.47 | % | 0.49 | % | 0.48 | % | 0.48 | % | 0.48 | % | ||||||||||||
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| |||||||||||||
Net investment income | 0.52 | %(e) | 1.31 | % | 1.19 | % | 1.27 | % | 1.41 | %(b) | 1.30 | % | ||||||||||||
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Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 58,100 | $ | 69,381 | $ | 67,883 | $ | 124,596 | $ | 177,496 | $ | 126,979 | ||||||||||||
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Portfolio turnover rate(f) | 10 | %(d) | 20 | % | 14 | % | 31 | % | 26 | % | 31 | % | ||||||||||||
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(a) | Based on average shares outstanding. |
(b) | Includes aone-time 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. |
(f) | Portfolio turnover rate excludesin-kind transactions. |
See notes to financial statements.
36 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares MSCI New Zealand ETF | ||||||||||||||||||||||||
| Six Months Ended 02/28/19 (unaudited) | | | Year Ended 08/31/18 | | | Year Ended 08/31/17 | | | Year Ended 08/31/16 | | | Year Ended 08/31/15 | | | Year Ended 08/31/14 | | |||||||
| ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 49.11 | $ | 46.26 | $ | 46.90 | $ | 32.17 | $ | 40.88 | $ | 34.14 | ||||||||||||
|
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|
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|
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|
|
|
| |||||||||||||
Net investment income(a) | 0.74 | 1.71 | 1.96 | 1.21 | 1.87 | 1.68 | ||||||||||||||||||
Net realized and unrealized gain (loss)(b) | 0.57 | 2.86 | (0.39 | ) | 14.76 | (8.57 | ) | 6.78 | ||||||||||||||||
|
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|
|
|
|
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| |||||||||||||
Net increase (decrease) from investment operations | 1.31 | 4.57 | 1.57 | 15.97 | (6.70 | ) | 8.46 | |||||||||||||||||
|
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| |||||||||||||
Distributions | ||||||||||||||||||||||||
From net investment income | (0.83 | ) | (1.72 | ) | (2.21 | ) | (1.24 | ) | (2.01 | ) | (1.72 | ) | ||||||||||||
|
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| |||||||||||||
Total distributions | (0.83 | ) | (1.72 | ) | (2.21 | ) | (1.24 | ) | (2.01 | ) | (1.72 | ) | ||||||||||||
|
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| |||||||||||||
Net asset value, end of period | $ | 49.59 | $ | 49.11 | $ | 46.26 | $ | 46.90 | $ | 32.17 | $ | 40.88 | ||||||||||||
|
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| |||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | 2.79 | %(c) | 10.02 | % | 3.95 | % | 50.49 | % | (17.01 | )% | 25.02 | % | ||||||||||||
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|
|
|
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|
|
| |||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.49 | %(d) | 0.47 | % | 0.49 | % | 0.48 | % | 0.48 | % | 0.48 | % | ||||||||||||
|
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|
|
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|
|
|
|
|
| |||||||||||||
Net investment income | 3.15 | %(d) | 3.58 | % | 4.45 | % | 3.05 | % | 4.83 | % | 4.17 | % | ||||||||||||
|
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| |||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 161,172 | $ | 142,406 | $ | 175,790 | $ | 171,183 | $ | 64,344 | $ | 159,446 | ||||||||||||
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| |||||||||||||
Portfolio turnover rate(e) | 5 | %(c) | 14 | % | 9 | % | 11 | % | 14 | % | 20 | % | ||||||||||||
|
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|
(a) | Based on average shares outstanding. |
(b) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(c) | Not annualized. |
(d) | Annualized. |
(e) | Portfolio turnover rate excludesin-kind transactions. |
See notes to financial statements.
F I N A N C I A L H I G H L I G H T S | 37 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares MSCI Norway ETF | ||||||||||||||||||||||||
| Six Months Ended 02/28/19 (unaudited) | | | Year Ended 08/31/18 | | | Year Ended 08/31/17 | | | Year Ended 08/31/16 | | | Year Ended 08/31/15 | | | Year Ended 08/31/14 | | |||||||
| ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 27.67 | $ | 25.07 | $ | 20.36 | $ | 20.40 | $ | 31.83 | $ | 28.33 | ||||||||||||
|
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|
|
|
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|
|
| |||||||||||||
Net investment income(a) | 0.18 | 0.72 | 0.69 | 0.64 | 0.64 | 1.09 | ||||||||||||||||||
Net realized and unrealized gain (loss)(b) | (2.42 | ) | 2.56 | 4.70 | (0.06 | ) | (11.49 | ) | 3.43 | |||||||||||||||
|
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|
|
|
|
|
|
|
|
| |||||||||||||
Net increase (decrease) from investment operations | (2.24 | ) | 3.28 | 5.39 | 0.58 | (10.85 | ) | 4.52 | ||||||||||||||||
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| |||||||||||||
Distributions | ||||||||||||||||||||||||
From net investment income | (0.14 | ) | (0.68 | ) | (0.68 | ) | (0.62 | ) | (0.58 | ) | (1.02 | ) | ||||||||||||
|
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| |||||||||||||
Total distributions | (0.14 | ) | (0.68 | ) | (0.68 | ) | (0.62 | ) | (0.58 | ) | (1.02 | ) | ||||||||||||
|
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| |||||||||||||
Net asset value, end of period | $ | 25.29 | $ | 27.67 | $ | 25.07 | $ | 20.36 | $ | 20.40 | $ | 31.83 | ||||||||||||
|
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|
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| |||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | (8.04 | )%(c) | 13.21 | % | 27.10 | % | 2.89 | % | (34.32 | )% | 15.91 | % | ||||||||||||
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|
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| |||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.53 | %(d) | 0.53 | % | 0.53 | % | 0.53 | % | 0.53 | % | 0.53 | % | ||||||||||||
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|
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| |||||||||||||
Net investment income | 1.38 | %(d) | 2.67 | % | 3.11 | % | 3.23 | % | 2.60 | % | 3.48 | % | ||||||||||||
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| |||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 32,882 | $ | 30,434 | $ | 32,589 | $ | 26,462 | $ | 30,595 | $ | 22,280 | ||||||||||||
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|
|
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| |||||||||||||
Portfolio turnover rate(e) | 6 | %(c) | 13 | % | 10 | % | 19 | % | 14 | % | 12 | % | ||||||||||||
|
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|
|
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|
|
(a) | Based on average shares outstanding. |
(b) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(c) | Not annualized. |
(d) | Annualized. |
(e) | Portfolio turnover rate excludesin-kind transactions. |
See notes to financial statements.
38 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements (unaudited)
1. ORGANIZATION
iShares Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Trust is organized as a Delaware statutory trust and is authorized to have multiple series or portfolios.
These financial statements relate only to the following funds (each, a “Fund,” and collectively, the “Funds”):
iShares ETF | Diversification Classification | |||
MSCI Denmark | Non-diversified | |||
MSCI Finland | Non-diversified | |||
MSCI GermanySmall-Cap | Diversified | |||
MSCI Ireland | Non-diversified | |||
MSCI New Zealand | Non-diversified | |||
MSCI Norway | Non-diversified |
2. 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 increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies.
Investment Transactions and Income Recognition:Investment transactions are accountedfor on trade date. Realizedgains and losses on investment transactions aredetermined using the specific identification method. Dividend income and capital gain distributions, if any, are recognized on theex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities are reflected in tax reclaims receivable. 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. Upon notification from issuers, some of the dividend income received from a real estate investment trust may bere-designated as a return of capital or capital gain.Non-cash dividends, if any, are recognized on theex-dividend date and recorded asnon-cash dividend income at fair value. Interest income is accrued daily.
Foreign Currency Translation:The accountingrecords ofthe Funds are maintained in U.S. dollars. Foreign currencies, as well as investment securities and other assetsand liabilities denominated innon-U.S. currencies are translated to U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of investments, 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 investments. Such fluctuations are reflected by the Funds as a component of net realized and unrealized gain (loss) from investments for financial reporting purposes. Each Fund reports realized currency gain (loss) 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 maybe subject toforeign taxes(a portion ofwhich maybe reclaimable)on income, stock dividends, capitalgains on investments, or certainforeign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its statement 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, 2019, if any, are disclosed in the statement of assets and liabilities.
In-kind Redemptions:Forfinancial reportingpurposes,in-kind redemptions are treated as sales ofsecurities resultingin realized capitalgains 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) topaid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or net asset value per share.
Distributions:Dividends and distributions paid byeach Fund are recorded on theex-dividend dates. Distributions are determined on a tax basis and maydiffer from netinvestment 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.
Recent Accounting Standards:In August 2018, the Financial Accounting Standards Board issued Accounting Standards Update2018-13 “Changes to the DisclosureRequirements for Fair Value Measurement” which modifies disclosure requirements for fair value measurements. The guidance is effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years. Management is currently evaluating the impact of this guidance to the Funds.
Indemnifications:In the normal course ofbusiness, each Fund enters into contracts that contain a varietyofrepresentations that providegeneral indemnification. The Funds’ maximum exposure under these arrangements is unknown because it involves future potential claims against the Funds, which cannot be predicted with any certainty.
N O T E S T O F I N A N C I A L S T A T E M E N T S | 39 |
Notes to Financial Statements (unaudited) (continued)
3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS
Investment Valuation Policies:Each Fund’s investments are valued atfair value(also referred to as “market value” within thefinancial statements)each daythat theFund’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. A fund determines the fair value of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Trustees of the Trust (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.
Fair Value Inputs and Methodologies:The followingmethods and inputs are used to establish the fair value of each Fund’s assets and liabilities:
• | Equity investments traded on a recognized securities exchange are valued at that day’s last traded price or official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price. |
• | Investments inopen-end U.S. mutual funds (including money market funds) are valued at that day’s published net asset value (“NAV”). |
If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of an investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and the cost approach. 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.
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, regular reviews 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 and large movements in market values, and reviews of any market related activity. The pricing of all Fair Valued Investments is subsequently reported to the Board on a quarterly basis.
Fair value pricing could result in a difference between the prices used to calculate a fund’s NAV and the prices used by the fund’s underlying index, which in turn could result in a difference between the fund’s performance and the performance of the fund’s underlying index.
Fair Value Hierarchy:Various inputs are used in determiningthe fair value of financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:
• | Level 1 — Unadjusted price quotations in active markets 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, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and |
• | Level 3 — Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, (including the Global Valuation Committee’s assumptions used in determining the fair value of financial instruments). |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of 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 into or out of an assigned level within the 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 a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.
4. SECURITIES AND OTHER INVESTMENTS
Securities Lending:Each Fund maylend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges andmaintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by an approved bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund or excess collateral is returned by the Fund, on the next business day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned
40 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements (unaudited) (continued)
securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.
As of February 28, 2019, 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 BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, or its affiliates and is disclosed in the schedules of investments. Anynon-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, if any, are also disclosed in its schedule of investments. The market value of any securities on loan as of February 28, 2019 and the value of the related cash collateral are disclosed in the statements of assets and liabilities.
Securities lending transactions are entered into by a fund under Master Securities Lending Agreements (each, an “MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for thenon-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the 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 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, absent an event of default, the borrower can resell orre-pledge the loaned securities, and the fund can reinvest cash collateral received in connection with loaned securities.
The following table is a summary of the securities lending agreements by counterparty which are subject to offset under an MSLA as of February 28, 2019:
iShares ETF and Counterparty | | Market Value of Securities on Loan | | | Cash Collateral Received | (a) | | Non-Cash Collateral Received | | Net Amount | ||||||
MSCI Denmark | ||||||||||||||||
Citigroup Global Markets Inc. | $ | 108,561 | $ | 108,561 | $ | — | $ | — | ||||||||
Deutsche Bank Securities Inc. | 132,511 | 131,440 | — | (1,071 | )(b) | |||||||||||
Goldman Sachs & Co. | 715,259 | 715,259 | — | — | ||||||||||||
Morgan Stanley & Co. LLC | 400,337 | 400,337 | — | — | ||||||||||||
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|
|
|
|
|
|
| |||||||||
$ | 1,356,668 | $ | 1,355,597 | $ | — | $ | (1,071 | ) | ||||||||
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|
| |||||||||
MSCI Finland | ||||||||||||||||
UBS AG | $ | 30,403 | $ | 30,403 | $ | — | $ | — | ||||||||
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|
| |||||||||
MSCI GermanySmall-Cap | ||||||||||||||||
Citigroup Global Markets Inc. | $ | 489,346 | $ | 489,346 | $ | — | $ | — | ||||||||
Credit Suisse Securities (USA) LLC | 789 | 789 | — | — | ||||||||||||
Deutsche Bank Securities Inc. | 328,908 | 328,908 | — | — | ||||||||||||
Goldman Sachs & Co. | 1,071,033 | 1,071,033 | — | — | ||||||||||||
HSBC Bank PLC | 1,161 | 1,161 | — | — | ||||||||||||
JPMorgan Securities LLC | 1,704,444 | 1,704,444 | — | — | ||||||||||||
Morgan Stanley & Co. LLC | 1,962,061 | 1,962,061 | — | — | ||||||||||||
UBS AG | 120,588 | 120,588 | — | — | ||||||||||||
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|
|
|
|
|
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| |||||||||
$ | 5,678,330 | $ | 5,678,330 | $ | — | $ | — | |||||||||
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|
|
|
|
|
|
| |||||||||
MSCI New Zealand | ||||||||||||||||
Barclays Capital Inc. | $ | 655,464 | $ | 655,464 | $ | — | $ | — | ||||||||
Deutsche Bank Securities Inc. | 21,296 | 21,296 | — | — | ||||||||||||
Goldman Sachs & Co. | 20,278,241 | 20,278,241 | — | — | ||||||||||||
Jefferies LLC | 343,299 | 343,299 | — | — | ||||||||||||
Morgan Stanley & Co. LLC | 261,039 | 261,039 | — | — | ||||||||||||
SG Americas Securities LLC | 53,048 | 52,817 | — | (231 | )(b) | |||||||||||
State Street Bank & Trust Company | 25,912 | 25,912 | — | — | ||||||||||||
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| |||||||||
$ | 21,638,299 | $ | 21,638,068 | $ | — | $ | (231 | ) | ||||||||
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| |||||||||
MSCI Norway | ||||||||||||||||
Citigroup Global Markets Inc. | $ | 360,410 | $ | 360,410 | $ | — | $ | — | ||||||||
Credit Suisse AG Dublin Branch | 79,767 | 79,767 | — | — | ||||||||||||
Credit Suisse Securities (USA) LLC | 18,501 | 10,639 | — | (7,862 | )(b) | |||||||||||
Deutsche Bank Securities Inc. | 145,048 | 145,048 | — | — | ||||||||||||
JPMorgan Securities LLC | 62,224 | 62,224 | — | — | ||||||||||||
Morgan Stanley & Co. LLC | 386,216 | 386,216 | — | — | ||||||||||||
SG Americas Securities LLC | 10,068 | 10,068 | — | — | ||||||||||||
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| |||||||||
$ | 1,062,234 | $ | 1,054,372 | $ | — | $ | (7,862 | ) | ||||||||
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|
|
(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. |
N O T E S T O F I N A N C I A L S T A T E M E N T S | 41 |
Notes to Financial Statements (unaudited) (continued)
(b) | Additional collateral is delivered to the Fund on the next business day in accordance with the MSLA. The net amount would be subject to the borrower default indemnity in the event of default by a counterparty. |
The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, each Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned 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 market value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by each Fund.
5. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
Investment Advisory Fees:Pursuant to an Investment AdvisoryAgreement with the Trust, BFA manages the investment ofeach Fund’s assets. BFA is aCaliforniacorporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent trustees).
For its investment advisory services to each of the following Funds, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, based on the average daily net assets of each Fund as follows:
iShares ETF | Investment Advisory Fee | |||
MSCI Denmark | 0.53 | % | ||
MSCI Finland | 0.53 | |||
MSCI GermanySmall-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:
Aggregate Average Daily Net Assets | Investment Advisory Fee | |||
First $7 billion | 0.59 | % | ||
Over $7 billion, up to and including $11 billion | 0.54 | |||
Over $11 billion, up to and including $24 billion | 0.49 | |||
Over $24 billion, up to and including $48 billion | 0.44 | |||
Over $48 billion, up to and including $72 billion | 0.40 | |||
Over $72 billion, up to and including $96 billion | 0.36 | |||
Over $96 billion | 0.32 |
Distributor:BlackRock Investments, LLC, an affiliate ofBFA, is the distributorfor each Fund. Pursuant to the distribution agreement, BFA is responsiblefor any feesorexpenses for distribution services provided to the Funds.
Securities Lending:The U.S. Securities and Exchange Commission(the “SEC”)has issued an exemptive order which permits BlackRock Institutional Trust Company,N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan in a money market fund managed by BFA, or its affiliates, however, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04% (the “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. Each Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.
Pursuant to the current securities lending agreement, each Fund retains 82% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees. Prior to January 1, 2019, the Fund retained 80% of securities lending income (which excludes collateral investment fees) and the amount retained was not 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 a specified threshold, each Fund, pursuant to the 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. Prior to January 1, 2019, the Fund was subject to the same terms under the previous securities lending fee arrangement.
42 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements (unaudited) (continued)
The share of securities lending income earned by each Fund is shown as securities lending income – affiliated – net in its statement of operations. For the six months ended February 28, 2019, the Funds paid BTC the following amounts for securities lending agent services:
iShares ETF | Fees Paid to BTC | |||
MSCI Denmark | $ | 1,617 | ||
MSCI Finland | 629 | |||
MSCI GermanySmall-Cap | 15,843 | |||
MSCI New Zealand | 8,918 | |||
MSCI Norway | 2,664 |
Officers and Trustees:Certain officersand/or trusteesofthe Trust are officersand/or trusteesofBlackRock or itsaffiliates.
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 byRule 17a-7.
For the six months ended February 28, 2019, transactions executed by the Funds pursuant to Rule17a-7 under the 1940 Act were as follows:
iShares ETF | Purchases | Sales | ||||||
MSCI Denmark | $ | 175,418 | $ | 1,038,175 | ||||
MSCI Finland | 41,024 | 412,599 | ||||||
MSCI GermanySmall-Cap | 1,151,011 | 6,742 | ||||||
MSCI Ireland | 1,523,966 | 251,056 | ||||||
MSCI New Zealand | 1,540,847 | — | ||||||
MSCI Norway | — | 256,067 |
Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is shown as dividends – affiliated in the statement of operations.
A fund, in order to improve its portfolio liquidity and its ability to track its underlying index, may invest in shares of other iShares funds that invest in securities in the fund’s underlying index.
6. PURCHASES AND SALES
For the six months ended February 28, 2019, purchases and sales of investments, excludingin-kind transactions and short-term investments, were as follows:
iShares ETF | Purchases | Sales | ||||||
MSCI Denmark | $ | 2,303,414 | $ | 2,259,274 | ||||
MSCI Finland | 1,350,428 | 1,389,266 | ||||||
MSCI GermanySmall-Cap | 2,871,567 | 2,188,591 | ||||||
MSCI Ireland | 6,476,289 | 5,964,254 | ||||||
MSCI New Zealand | 7,887,609 | 8,432,592 | ||||||
MSCI Norway | 2,438,132 | 1,980,703 |
For the six months ended February 28, 2019,in-kind transactions were as follows:
iShares ETF | In-kind Purchases | In-kind Sales | ||||||
MSCI Denmark | $ | 31,990,954 | $ | 21,200,122 | ||||
MSCI Finland | 7,789,161 | 11,411,772 | ||||||
MSCI GermanySmall-Cap | — | 10,726,984 | ||||||
MSCI Ireland | — | 4,003,083 | ||||||
MSCI New Zealand | 52,182,432 | 34,583,362 | ||||||
MSCI Norway | 10,420,422 | 4,651,997 |
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.
N O T E S T O F I N A N C I A L S T A T E M E N T S | 43 |
Notes to Financial Statements (unaudited) (continued)
Management has analyzed tax laws and regulations and their application to the Funds as of February 28, 2019, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.
As of August 31, 2018, the Funds had capital loss carryforwards, with no expiration dates, available to offset future realized capital gains as follows:
iShares ETF | Non-Expiring | |||
MSCI Denmark | $ | 1,837,134 | ||
MSCI Finland | 526,955 | |||
MSCI GermanySmall-Cap | 1,051,014 | |||
MSCI Ireland | 6,536,962 | |||
MSCI New Zealand | 8,176,361 | |||
MSCI Norway | 4,928,216 |
A fund may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” Such fund may elect tomark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any suchmarked-to-market gains.
As of February 28, 2019, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:
iShares ETF | Tax Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||
MSCI Denmark | $ | 55,810,835 | $ | 1,525,677 | $ | (6,860,734 | ) | $ | (5,335,057 | ) | ||||||
MSCI Finland | 35,876,508 | 1,394,258 | (4,523,165 | ) | (3,128,907 | ) | ||||||||||
MSCI GermanySmall-Cap | 54,556,827 | 2,097,269 | (10,240,089 | ) | (8,142,820 | ) | ||||||||||
MSCI Ireland | 60,639,805 | 5,218,522 | (7,411,276 | ) | (2,192,754 | ) | ||||||||||
MSCI New Zealand | 184,534,686 | 15,202,015 | (16,320,525 | ) | (1,118,510 | ) | ||||||||||
MSCI Norway | 37,516,085 | 1,474,661 | (5,093,123 | ) | (3,618,462 | ) |
8. 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 mainlyfrom uncertaintyabout future values of financial instruments influenced byprice, currencyand interest rate movements. It representsthe 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.
Investing in the securities ofnon-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.
Credit Risk:Credit risk is the risk that an issuer orguarantor of debt instruments or the counterpartyto a financial transaction, includingderivatives contracts, repurchaseagreements 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.
44 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements (unaudited) (continued)
Concentration Risk:A diversified portfolio, where this is appropriate and consistent with afund’s objectives, minimizes the risk that a price change ofa particularinvestment 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 issuers located in a single country or a limited number of countries, it assumes the risk that economic, regulatory, political and social conditions in that country or those countries may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.
When a fund concentrates its investments in securities within a single or limited number of market sectors, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.
9. CAPITAL SHARE TRANSACTIONS
Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable.
Transactions in capital shares were as follows:
Six Months Ended 02/28/19 | Year Ended 08/31/18 | |||||||||||||||
iShares ETF | Shares | Amount | Shares | Amount | ||||||||||||
MSCI Denmark | ||||||||||||||||
Shares sold | 550,000 | $ | 32,488,084 | 400,000 | $ | 26,929,995 | ||||||||||
Shares redeemed | (350,000 | ) | (21,463,588 | ) | (800,000 | ) | (53,099,106 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase(decrease) | 200,000 | $ | 11,024,496 | (400,000 | ) | $ | (26,169,111 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
MSCI Finland | ||||||||||||||||
Shares sold | 200,000 | $ | 7,844,967 | 400,000 | $ | 16,562,867 | ||||||||||
Shares redeemed | (300,000 | ) | (11,486,773 | ) | (600,000 | ) | (24,405,451 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net decrease | (100,000 | ) | $ | (3,641,806 | ) | (200,000 | ) | $ | (7,842,584 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
MSCI GermanySmall-Cap | ||||||||||||||||
Shares sold | — | $ | — | 850,000 | $ | 54,026,908 | ||||||||||
Shares redeemed | (200,000 | ) | (10,801,060 | ) | (600,000 | ) | (38,644,649 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase(decrease) | (200,000 | ) | $ | (10,801,060 | ) | 250,000 | $ | 15,382,259 | ||||||||
|
|
|
|
|
|
|
| |||||||||
MSCI Ireland | ||||||||||||||||
Shares sold | — | $ | — | 200,000 | $ | 9,429,760 | ||||||||||
Shares redeemed | (100,000 | ) | (4,009,826 | ) | (250,000 | ) | (11,725,942 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net decrease | (100,000 | ) | $ | (4,009,826 | ) | (50,000 | ) | $ | (2,296,182 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
MSCI New Zealand | ||||||||||||||||
Shares sold | 1,100,000 | $ | 52,428,407 | 1,050,000 | $ | 50,851,465 | ||||||||||
Shares redeemed | (750,000 | ) | (34,927,759 | ) | (1,950,000 | ) | (92,325,267 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase(decrease) | 350,000 | $ | 17,500,648 | (900,000 | ) | $ | (41,473,802 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
MSCI Norway | ||||||||||||||||
Shares sold | 400,000 | $ | 11,351,102 | 600,000 | $ | 15,881,621 | ||||||||||
Shares redeemed | (200,000 | ) | (5,077,901 | ) | (800,000 | ) | (21,138,447 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase(decrease) | 200,000 | $ | 6,273,201 | (200,000 | ) | $ | (5,256,826 | ) | ||||||||
|
|
|
|
|
|
|
|
The consideration for the purchase of Creation Units of a fund in the Trust generally consists of thein-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 shares sold in the table above.
10. 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 recent favorable determinations issued by the Finnish authorities. Professional fees associated with the filing of these claims that result in the recovery of foreign withholding taxes have been approved by the Board as appropriate expenses of the Fund. Withholding tax claims may be for the current year and potentially for a limited number of prior calendar years,
N O T E S T O F I N A N C I A L S T A T E M E N T S | 45 |
Notes to Financial Statements (unaudited) (continued)
depending upon statutes of limitation on taxes. The Fund continues to evaluate developments in Finland for potential impact to the receivables and payables recorded. Foreign withholding tax claims and associated payable amounts are disclosed in the statement of assets and liabilities.
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.
11. LEGAL PROCEEDINGS
On June 16, 2016, investors in certain iShares funds (iShares Core S&PSmall-Cap ETF, iShares Russell 1000 Growth ETF, iShares Core S&P 500 ETF, iShares RussellMid-Cap Growth ETF, iShares RussellMid-Cap ETF, iShares RussellMid-Cap Value ETF, iShares Select Dividend ETF, iShares MorningstarMid-Cap ETF, iShares MorningstarLarge-Cap ETF, iShares U.S. Aerospace & Defense ETF and iShares U.S. Preferred Stock ETF) filed a 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.
12. REGULATIONS-X AMENDMENTS
On August 17, 2018, the SEC adopted amendments to certain disclosure requirements in Securities Act ReleaseNo. 33-10532,Disclosure Update andSimplification. The Funds have adopted the amendments pertinent to RegulationS-X in this shareholder report. The amendments impacted certain disclosure presentation on the statement of assets and liabilities, statement of changes in net assets and notes to the financial statements.
Prior year distribution information and undistributed (distributions in excess of) net investment income in the statement of changes in net assets has been modified to conform to the current year presentation in accordance with the RegulationS-X changes.
Distributions for the year ended August 31, 2018 were classified as follows:
iShares ETF | Net Investment Income | |||
MSCI Denmark | $ | 1,199,663 | ||
MSCI Finland | 1,829,682 | |||
MSCI GermanySmall-Cap | 1,210,800 | |||
MSCI Ireland | 1,127,676 | |||
MSCI New Zealand | 5,177,401 | |||
MSCI Norway | 1,008,633 |
Undistributed (distributions in excess of) net investment income as of August 31, 2018 are as follows:
iShares ETF | Undistributed (distributions in excess of) net investment income | |||
MSCI Denmark | $ | 116,653 | ||
MSCI Finland | 165,290 | |||
MSCI GermanySmall-Cap | 256,976 | |||
MSCI Ireland | (114,496 | ) | ||
MSCI New Zealand | 468,462 | |||
MSCI Norway | 27,434 |
13. SUBSEQUENT EVENTS
Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.
46 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Supplemental Information (unaudited)
Section 19(a) Notices
The amounts and sources of distributions reported in this notice are for financial reporting purposes and are not being provided for tax reporting purposes. The actual amounts and character of the distributions for tax reporting purposes will be reported to shareholders on Form1099-DIV which is sent to shareholders shortly after calendaryear-end.
Total Cumulative Distributions for the FiscalYear-to-Date | % Breakdown of the Total CumulativeDistributions for the FiscalYear-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 GermanySmall-Cap(a) | $ | 0.594709 | $ | — | $ | 0.031597 | $ | 0.626306 | 95 | % | — | % | 5 | % | 100 | % |
(a) | The Fund estimates that it has distributed more than the amount of earned income and net realized gains; therefore, a portion of the distribution may be a return of capital. A return of capital may occur, for example, when some or all of the shareholder’s investment in the Fund is returned to the shareholder. A return of capital does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. When distributions exceed total return performance, the difference will incrementally reduce the Fund’s net asset value per share. |
SUPPLEMENTAL INFORMATION | 47 |
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 FormN-Q. The iShares Funds’ FormsN-Q are available on the SEC’s website at www.sec.gov. The iShares Funds also disclose their complete schedule of portfolio holdings on a daily basis on the iShares website at www.iShares.com.
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-free1-800-474-2737; (2) on the iShares website at www.iShares.com; and (3) on the SEC website at www.sec.gov.
48 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Glossary of Terms Used in this Report
Portfolio Abbreviations - Equity | ||
ADR | American Depositary Receipt | |
NVS | Non-Voting Shares |
GLOSSARYOF TERMS USEDINTHIS REPORT | 49 |
|
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.
©2019 BlackRock, Inc. All rights reserved.iSHARES andBLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners. |
FEBRUARY 28, 2019
2019 SEMI-ANNUAL REPORT (UNAUDITED) |
iShares Trust
▶ | iShares MSCI India ETF | INDA | Cboe BZX |
▶ | iShares MSCI India Small-Cap ETF | SMIN | Cboe BZX |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of each Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
You may elect to receive all future reports in paper free of charge. If you hold accounts through a financial intermediary, you can follow the instructions included with this disclosure, if applicable, or contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. Please note that not all financial intermediaries may offer this service. Your election to receive reports in paper will apply to all funds held with your financial intermediary.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive electronic delivery of shareholder reports and other communications by contacting your financial intermediary. Please note that not all financial intermediaries may offer this service.
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Consolidated Financial Statements | ||||
15 | ||||
16 | ||||
17 | ||||
18 | ||||
20 | ||||
26 | ||||
27 |
Fund Summary as of February 28, 2019 | iShares® MSCI India ETF |
Investment Objective
TheiShares 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.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||||||
6 Months | 1 Year | 5 Years | Since Inception | 1 Year | 5 Years | Since Inception | ||||||||||||||||||||||||||
Fund NAV | (8.28 | )% | (6.05 | )%�� | 6.93 | % | 4.31 | % | (6.05 | )% | 39.82 | % | 34.76 | % | ||||||||||||||||||
Fund Market | (7.61 | ) | (3.90 | ) | 7.11 | 4.41 | (3.90 | ) | 40.97 | 35.69 | ||||||||||||||||||||||
Index | (8.57 | ) | (5.77 | ) | 7.77 | 5.06 | (5.77 | ) | 45.35 | 41.85 |
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.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
| Beginning Account Value (09/01/18) | | | Ending Account Value (02/28/19) | | | Expenses Paid During the Period | (a) | | Beginning Account Value (09/01/18) | | | Ending Account Value (02/28/19) | | | Expenses Paid During the Period | (a) | | Annualized Expense Ratio | | ||||||
$ 1,000.00 | $ | 917.20 | $ | 3.38 | $ | 1,000.00 | $ | 1,021.30 | $ | 3.56 | 0.71 | % |
(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. |
Portfolio Information
ALLOCATION BY SECTOR
| ||||
Sector | | Percent of Total Investments(a) |
| |
Financials | 23.6% | |||
Information Technology | 18.1 | |||
Energy | 14.8 | |||
Consumer Staples | 10.9 | |||
Consumer Discretionary | 9.4 | |||
Materials | 8.2 | |||
Health Care | 5.4 | |||
Industrials | 4.0 | |||
Utilities | 3.0 | |||
Communication Services | 2.6 | |||
|
TEN LARGEST HOLDINGS
| ||||
Security | | Percent of Total Investments(a) |
| |
Reliance Industries Ltd. | 11.1% | |||
Housing Development Finance Corp. Ltd. | 9.5 | |||
Infosys Ltd. | 8.1 | |||
Tata Consultancy Services Ltd. | 5.6 | |||
Axis Bank Ltd. | 4.3 | |||
Hindustan Unilever Ltd. | 3.6 | |||
ITC Ltd. | 3.0 | |||
ICICI Bank Ltd. | 2.6 | |||
Maruti Suzuki India Ltd. | 2.3 | |||
Larsen & Toubro Ltd. | 1.9 |
(a) | Excludes money market funds. |
F U N D S U M M A R Y | 5 |
Fund Summary as of February 28, 2019 | iShares® MSCI India Small-Cap ETF |
Investment Objective
TheiShares 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.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||||||
6 Months | 1 Year | 5 Years | Since Inception | 1 Year | 5 Years | Since Inception | ||||||||||||||||||||||||||
Fund NAV | (18.82 | )% | (26.30 | )% | 12.64 | % | 6.35 | % | (26.30 | )% | 81.32 | % | 54.40 | % | ||||||||||||||||||
Fund Market | (17.99 | ) | (24.72 | ) | 13.10 | 6.49 | (24.72 | ) | 85.04 | 55.88 | ||||||||||||||||||||||
Index | (18.43 | ) | (26.17 | ) | 13.58 | 7.13 | (26.17 | ) | 88.99 | 62.60 |
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.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
| Beginning Account Value (09/01/18) | | | Ending Account Value (02/28/19) | | | Expenses Paid During the Period | (a) | | Beginning Account Value (09/01/18) | | | Ending Account Value (02/28/19) | | | Expenses Paid During the Period | (a) | | Annualized Expense Ratio | | ||||||
$ 1,000.00 | $ | 811.80 | $ | 3.41 | $ | 1,000.00 | $ | 1,021.00 | $ | 3.81 | 0.76 | % |
(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. |
Portfolio Information
ALLOCATION BY SECTOR
| ||||
Sector | | Percent of Total Investments(a) |
| |
Financials | 23.8% | |||
Consumer Discretionary | 16.6 | |||
Industrials | 14.4 | |||
Materials | 12.2 | |||
Health Care | 9.3 | |||
Information Technology | 6.4 | |||
Utilities | 5.3 | |||
Communication Services | 4.3 | |||
Consumer Staples | 4.3 | |||
Real Estate | 2.7 | |||
Energy | 0.7 |
TEN LARGEST HOLDINGS
| ||||
Security | | Percent of Total Investments(a) |
| |
| ||||
RBL Bank Ltd. | 2.6% | |||
Federal Bank Ltd. | 1.8 | |||
Info Edge India Ltd. | 1.6 | |||
Apollo Hospitals Enterprise Ltd. | 1.6 | |||
Mphasis Ltd. | 1.5 | |||
Bharat Financial Inclusion Ltd. | 1.4 | |||
Mindtree Ltd. | 1.3 | |||
IDFC First Bank Ltd. | 1.3 | |||
Jubilant Foodworks Ltd. | 1.3 | |||
AU Small Finance Bank Ltd. | 1.2 | |||
|
(a) | Excludes money market funds. |
6 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
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 ask on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not trade in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary market trading in shares of the fund, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.
As a shareholder of your Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested at the beginning of the period (or from the commencement of operations if less than 6 months) and held through the end of the period, is intended to help you understand your ongoing costs (in dollars and cents) of investing in your Fund and to compare these costs with the ongoing costs of investing in other funds.
Actual Expenses– The table provides information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. To estimate the expenses that you paid on your account over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During the Period.”
Hypothetical Example for Comparison Purposes– The table also provides information about hypothetical account values and hypothetical expenses based on your Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions 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.
A B O U T F U N D P E R F O R M A N C E / S H A R E H O L D E R E X P E N S E S | 7 |
Consolidated Schedule of Investments (unaudited) February 28, 2019 | iShares® MSCI India ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
| ||||||||
Common Stocks | ||||||||
Airlines — 0.3% | ||||||||
InterGlobe Aviation Ltd.(a) | 954,382 | $ | 15,100,104 | |||||
|
| |||||||
Auto Components — 1.3% | ||||||||
Bharat Forge Ltd. | 2,166,970 | 15,626,283 | ||||||
Bosch Ltd. | 75,775 | 20,269,842 | ||||||
Motherson Sumi Systems Ltd. | 9,799,839 | 22,403,175 | ||||||
|
| |||||||
58,299,300 | ||||||||
Automobiles — 6.7% | ||||||||
Bajaj Auto Ltd. | 868,094 | 35,401,746 | ||||||
Eicher Motors Ltd. | 138,254 | 38,621,220 | ||||||
Hero MotoCorp Ltd. | 516,511 | 19,084,973 | ||||||
Mahindra & Mahindra Ltd. | 7,716,304 | 70,072,031 | ||||||
Maruti Suzuki India Ltd. | 1,093,729 | 105,022,280 | ||||||
Tata Motors Ltd.(b) | 16,427,882 | 40,985,257 | ||||||
|
| |||||||
309,187,507 | ||||||||
Banks — 9.6% | ||||||||
Axis Bank Ltd.(b) | 19,672,941 | 196,255,747 | ||||||
ICICI Bank Ltd. | 24,646,497 | 121,333,135 | ||||||
State Bank of India(b) | 18,464,512 | 69,845,900 | ||||||
Yes Bank Ltd. | 17,698,252 | 57,516,753 | ||||||
|
| |||||||
444,951,535 | ||||||||
Beverages — 0.5% | ||||||||
United Spirits Ltd.(b) | 3,006,756 | 23,091,903 | ||||||
|
| |||||||
Chemicals — 2.7% | ||||||||
Asian Paints Ltd. | 2,976,796 | 58,810,829 | ||||||
Pidilite Industries Ltd. | 1,261,106 | 20,433,548 | ||||||
UPL Ltd. | 3,688,313 | 45,508,704 | ||||||
|
| |||||||
124,753,081 | ||||||||
Construction & Engineering — 1.9% |
| |||||||
Larsen & Toubro Ltd. | 4,931,907 | 89,653,386 | ||||||
|
| |||||||
Construction Materials — 2.8% | ||||||||
Ambuja Cements Ltd. | 6,162,297 | 18,371,770 | ||||||
Grasim Industries Ltd. | 3,401,306 | 37,159,063 | ||||||
Shree Cement Ltd. | 86,492 | 20,177,423 | ||||||
UltraTech Cement Ltd. | 994,341 | 53,494,256 | ||||||
|
| |||||||
129,202,512 | ||||||||
Consumer Finance — 2.4% | ||||||||
Bajaj Finance Ltd. | 1,793,564 | 66,798,841 | ||||||
Mahindra & Mahindra Financial Services Ltd. | 3,131,404 | 17,449,703 | ||||||
Shriram Transport Finance Co. Ltd. | 1,525,578 | 24,499,977 | ||||||
|
| |||||||
108,748,521 | ||||||||
Diversified Financial Services — 0.3% |
| |||||||
REC Ltd. | 7,150,506 | 13,707,618 | ||||||
|
| |||||||
Diversified Telecommunication Services — 0.3% |
| |||||||
Bharti Infratel Ltd. | 3,444,070 | 14,219,099 | ||||||
|
| |||||||
Electric Utilities — 1.3% | ||||||||
Power Grid Corp. of India Ltd. | 18,941,807 | 48,695,234 | ||||||
Tata Power Co. Ltd. (The) | 11,471,876 | 10,556,360 | ||||||
|
| |||||||
59,251,594 | ||||||||
Electrical Equipment — 0.6% | ||||||||
Havells India Ltd. | 2,588,142 | 26,030,156 | ||||||
|
| |||||||
Food & Staples Retailing — 0.6% | ||||||||
Avenue Supermarts Ltd.(a)(b) | 1,291,199 | 26,428,042 | ||||||
|
|
Security | Shares | Value | ||||||
| ||||||||
Food Products — 1.3% | ||||||||
Britannia Industries Ltd. | 596,647 | $ | 25,642,997 | |||||
Nestle India Ltd. | 239,375 | 35,808,020 | ||||||
|
| |||||||
61,451,017 | ||||||||
Gas Utilities — 0.9% | ||||||||
GAIL India Ltd. | 8,164,845 | 39,259,443 | ||||||
|
| |||||||
Household Products — 3.6% | ||||||||
Hindustan Unilever Ltd. | 6,717,821 | 163,647,494 | ||||||
|
| |||||||
Independent Power and Renewable Electricity Producers — 0.9% |
| |||||||
NTPC Ltd. | 20,471,329 | 40,654,122 | ||||||
|
| |||||||
Insurance — 0.8% | ||||||||
Bajaj Finserv Ltd. | 395,091 | 35,897,518 | ||||||
|
| |||||||
IT Services — 18.1% | ||||||||
HCL Technologies Ltd. | 5,611,642 | 83,149,463 | ||||||
Infosys Ltd. | 36,153,677 | 373,246,797 | ||||||
Tata Consultancy Services Ltd. | 9,316,189 | 259,794,311 | ||||||
Tech Mahindra Ltd. | 4,871,434 | 56,856,940 | ||||||
Wipro Ltd. | 11,700,190 | 60,683,645 | ||||||
|
| |||||||
833,731,156 | ||||||||
Life Sciences Tools & Services — 0.4% |
| |||||||
Divi’s Laboratories Ltd. | 823,861 | 19,161,309 | ||||||
|
| |||||||
Machinery — 0.3% | ||||||||
Ashok Leyland Ltd. | 12,146,910 | 14,772,432 | ||||||
|
| |||||||
Media — 0.7% | ||||||||
Zee Entertainment Enterprises Ltd. | 4,967,889 | 32,597,161 | ||||||
|
| |||||||
Metals & Mining — 2.7% | ||||||||
Hindalco Industries Ltd. | 12,078,543 | 33,241,944 | ||||||
JSW Steel Ltd. | 8,751,933 | 34,588,754 | ||||||
Tata Steel Ltd. | 3,612,492 | 25,417,783 | ||||||
Vedanta Ltd. | 13,458,705 | 32,054,335 | ||||||
|
| |||||||
125,302,816 | ||||||||
Oil, Gas & Consumable Fuels — 14.7% |
| |||||||
Bharat Petroleum Corp. Ltd. | 7,854,126 | 37,274,006 | ||||||
Coal India Ltd. | 7,063,545 | 22,672,464 | ||||||
Hindustan Petroleum Corp. Ltd. | 6,305,421 | 19,800,225 | ||||||
Indian Oil Corp. Ltd. | 19,477,410 | 39,597,666 | ||||||
Oil & Natural Gas Corp. Ltd. | 14,603,216 | 30,519,928 | ||||||
Petronet LNG Ltd. | 6,206,846 | 19,512,497 | ||||||
Reliance Industries Ltd. | 29,506,856 | 510,703,363 | ||||||
|
| |||||||
680,080,149 | ||||||||
Personal Products — 2.0% | ||||||||
Dabur India Ltd. | 5,481,465 | 33,759,067 | ||||||
Godrej Consumer Products Ltd. | 3,700,916 | 35,010,440 | ||||||
Marico Ltd. | 4,673,781 | 22,322,046 | ||||||
|
| |||||||
91,091,553 | ||||||||
Pharmaceuticals — 4.9% | ||||||||
Aurobindo Pharma Ltd. | 2,727,479 | 27,304,988 | ||||||
Cadila Healthcare Ltd. | 2,118,071 | 9,490,578 | ||||||
Cipla Ltd./India | 3,581,954 | 27,927,419 | ||||||
Dr. Reddy’s Laboratories Ltd. | 1,184,784 | 43,836,654 | ||||||
Glenmark Pharmaceuticals Ltd. | 1,430,289 | 11,996,118 | ||||||
Lupin Ltd. | 2,292,503 | 24,616,779 | ||||||
Piramal Enterprises Ltd. | 853,565 | 27,920,236 | ||||||
Sun Pharmaceutical Industries Ltd. | 8,686,937 | 54,367,973 | ||||||
|
| |||||||
227,460,745 |
8 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Consolidated Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI India ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
| ||||||||
Road & Rail — 0.3% | ||||||||
Container Corp. of India Ltd. | 2,143,017 | $ | 14,243,845 | |||||
|
| |||||||
Textiles, Apparel & Luxury Goods — 1.4% |
| |||||||
Page Industries Ltd. | 56,538 | 17,716,134 | ||||||
Titan Co. Ltd. | 3,214,372 | 46,331,336 | ||||||
|
| |||||||
64,047,470 | ||||||||
Thrifts & Mortgage Finance — 10.5% |
| |||||||
Housing Development Finance Corp. Ltd. | 16,894,477 | 437,336,582 | ||||||
Indiabulls Housing Finance Ltd. | 2,869,137 | 26,431,901 | ||||||
LIC Housing Finance Ltd. | 3,080,159 | 20,591,773 | ||||||
|
| |||||||
484,360,256 | ||||||||
Tobacco — 3.0% | ||||||||
ITC Ltd. | 35,468,158 | 137,656,421 | ||||||
|
| |||||||
Transportation Infrastructure — 0.5% |
| |||||||
Adani Ports & Special Economic Zone Ltd. | 5,355,866 | 24,536,777 | ||||||
|
| |||||||
Wireless Telecommunication Services — 1.6% |
| |||||||
Bharti Airtel Ltd. | 14,473,226 | 64,718,856 | ||||||
Vodafone Idea Ltd.(b) | 22,591,332 | 9,496,927 | ||||||
|
| |||||||
74,215,783 | ||||||||
|
| |||||||
Total Common Stocks — 99.9% | 4,606,791,825 | |||||||
|
|
Security | Shares | Value | ||||||
| ||||||||
Short-Term Investments | ||||||||
Money Market Funds — 0.4% | ||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 2.33%(c)(d) | 18,132,534 | $ | 18,132,534 | |||||
|
| |||||||
Total Short-Term Investments — 0.4% |
| 18,132,534 | ||||||
|
| |||||||
Total Investments in Securities — 100.3% |
| 4,624,924,359 | ||||||
Other Assets, Less Liabilities — (0.3)% |
| (11,634,043 | ) | |||||
Net Assets — 100.0% | $ | 4,613,290,316 | ||||||
|
|
(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
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2019, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
| ||||||||||||||||||||||||||||
Affiliated Issuer | | Shares Held at | | Net Activity | | Shares Held at | | | Value at 02/28/19 | | Income | | Net Realized Gain (Loss)(a) | | | Change in Unrealized Appreciation (Depreciation) |
| |||||||||||
| ||||||||||||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 40,830,082 | (22,697,548 | ) | 18,132,534 | $ | 18,132,534 | $ | 541,986 | $ | — | $ | — | ||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
Futures Contracts
| ||||||||||||||||
Description | | Number of Contracts | | | Expiration Date | | | Notional Amount (000) | | | Value/ Unrealized Appreciation (Depreciation) | | ||||
| ||||||||||||||||
Long Contracts | ||||||||||||||||
MSCI Emerging Markets E-Mini | 79 | 03/15/19 | $ | 4,134 | $ | (48,055 | ) | |||||||||
|
|
Derivative Financial Instruments Categorized by Risk Exposure
As of February 28, 2019, the fair values of derivative financial instruments located in the Consolidated Statement of Assets and Liabilities were as follows:
| ||||
| Equity Contracts |
| ||
| ||||
Liabilities — Derivative Financial Instruments | ||||
Futures contracts | ||||
Net unrealized depreciation(a) | $ | 48,055 | ||
|
|
(a) | Represents cumulative appreciation (depreciation) of futures contracts as reported in the Consolidated Schedule of Investments. Only current day’s variation margin is reported separately within the Consolidated Statement of Assets and Liabilities. |
C O N S O L I D A T E D S C H E D U L E O F I N V E S T M E N T S | 9 |
Consolidated Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI India ETF |
For the six months ended February 28, 2019, the effect of derivative financial instruments in the Consolidated Statement of Operations was as follows:
| ||||
| Equity Contracts | | ||
| ||||
Net Realized Gain (Loss) from: | ||||
Futures contracts | $(313,556 | ) | ||
|
| |||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Futures contracts | $(142,775 | ) | ||
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
| ||||
Futures contracts:
| ||||
Average notional value of contracts — long | $ | 3,759,123 | ||
|
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Consolidated Financial Statements.
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, refer to the Notes to Consolidated Financial Statements.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2019. 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 | $ | 4,606,791,825 | $ | — | $ | — | $ | 4,606,791,825 | ||||||||
Money Market Funds | 18,132,534 | — | — | 18,132,534 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 4,624,924,359 | $ | — | $ | — | $ | 4,624,924,359 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | $ | (48,055 | ) | $ | — | $ | — | $ | (48,055 | ) | ||||||
|
|
|
|
|
|
|
|
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to consolidated financial statements.
10 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Consolidated Schedule of Investments (unaudited) February 28, 2019 | iShares® MSCI India Small-Cap ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
| ||||||||
Common Stocks | ||||||||
Air Freight & Logistics — 0.2% | ||||||||
Blue Dart Express Ltd. | 12,054 | $ | 530,079 | |||||
|
| |||||||
Airlines — 0.2% | ||||||||
SpiceJet Ltd.(a) | 375,496 | 421,551 | ||||||
|
| |||||||
Auto Components — 5.7% | ||||||||
Apollo Tyres Ltd. | 670,888 | 2,051,066 | ||||||
Asahi India Glass Ltd. | 150,960 | 544,402 | ||||||
Balkrishna Industries Ltd. | 201,552 | 2,509,827 | ||||||
Ceat Ltd. | 47,328 | 725,461 | ||||||
Endurance Technologies Ltd.(b) | 73,168 | 1,335,363 | ||||||
Exide Industries Ltd. | 529,448 | 1,635,770 | ||||||
KPIT Engineering Ltd.(a) | 356,306 | 401,210 | ||||||
Mahindra CIE Automotive Ltd.(a) | 238,000 | 779,656 | ||||||
Minda Industries Ltd. | 164,560 | 744,296 | ||||||
Sundram Fasteners Ltd. | 131,920 | 962,512 | ||||||
Suprajit Engineering Ltd. | 88,944 | 239,910 | ||||||
Tube Investments of India Ltd. | 183,736 | 924,799 | ||||||
WABCO India Ltd. | 11,832 | 1,132,167 | ||||||
|
| |||||||
13,986,439 | ||||||||
Banks — 10.5% | ||||||||
Allahabad Bank(a) | 744,736 | 502,590 | ||||||
AU Small Finance Bank Ltd.(b) | 372,504 | 3,035,494 | ||||||
Canara Bank(a) | 382,296 | 1,244,019 | ||||||
City Union Bank Ltd. | 756,976 | 1,952,405 | ||||||
DCB Bank Ltd. | 392,496 | 1,002,951 | ||||||
Federal Bank Ltd. | 3,817,384 | 4,500,275 | ||||||
IDFC First Bank Ltd.(a) | 4,971,208 | 3,127,700 | ||||||
Indian Bank(a) | 250,512 | 791,058 | ||||||
Jammu & Kashmir Bank Ltd. (The)(a) | 514,624 | 278,561 | ||||||
Karnataka Bank Ltd. (The) | 363,256 | 573,283 | ||||||
Karur Vysya Bank Ltd. (The) | 830,824 | 807,739 | ||||||
RBL Bank Ltd.(b) | 775,064 | 6,296,842 | ||||||
South Indian Bank Ltd. (The) | 2,312,000 | 429,074 | ||||||
Union Bank of India(a) | 609,144 | 613,630 | ||||||
Vijaya Bank | 686,256 | 389,796 | ||||||
|
| |||||||
25,545,417 | ||||||||
Beverages — 0.8% | ||||||||
Radico Khaitan Ltd. | 138,856 | 707,689 | ||||||
Varun Beverages Ltd. | 113,152 | 1,287,166 | ||||||
|
| |||||||
1,994,855 | ||||||||
Building Products — 1.7% | ||||||||
Astral Poly Technik Ltd. | 124,576 | 1,892,646 | ||||||
Blue Star Ltd. | 60,928 | 531,789 | ||||||
Cera Sanitaryware Ltd. | 12,104 | 409,359 | ||||||
Kajaria Ceramics Ltd. | 165,648 | 1,262,163 | ||||||
|
| |||||||
4,095,957 | ||||||||
Capital Markets — 4.1% | ||||||||
BSE Ltd. | 34,086 | 272,635 | ||||||
Care Ratings Ltd. | 54,264 | 732,790 | ||||||
CRISIL Ltd. | 46,263 | 948,334 | ||||||
Edelweiss Financial Services Ltd. | 1,190,680 | 2,289,246 | ||||||
ICICI Securities Ltd.(b) | 166,056 | 468,918 | ||||||
IIFL Holdings Ltd. | 247,792 | 1,145,659 | ||||||
Indiabulls Ventures Ltd. | 408,272 | 1,604,933 | ||||||
Indian Energy Exchange Ltd.(b) | 301,920 | 650,310 | ||||||
JM Financial Ltd. | 526,320 | 574,224 | ||||||
Motilal Oswal Financial Services Ltd. | 91,256 | 722,786 |
Security | Shares | Value | ||||||
| ||||||||
Capital Markets (continued) | ||||||||
Multi Commodity Exchange of India Ltd. | 22,440 | $ | 206,334 | |||||
Tata Investment Corp. Ltd. | 34,680 | 402,037 | ||||||
|
| |||||||
10,018,206 | ||||||||
Chemicals — 7.6% | ||||||||
Aarti Industries Ltd. | 51,544 | 1,007,382 | ||||||
Akzo Nobel India Ltd. | 23,133 | 581,055 | ||||||
Atul Ltd. | 37,808 | 1,789,742 | ||||||
BASF India Ltd. | 26,442 | 490,428 | ||||||
Bayer CropScience Ltd./India | 21,352 | 1,304,633 | ||||||
Chambal Fertilizers and Chemicals Ltd. | 262,072 | 582,720 | ||||||
Coromandel International Ltd. | 181,424 | 1,127,041 | ||||||
DCM Shriram Ltd. | 84,864 | 467,892 | ||||||
EID Parry India Ltd. | 145,272 | 378,160 | ||||||
Finolex Industries Ltd. | 85,544 | 570,744 | ||||||
Gujarat Alkalies &Chemicals Ltd. | 46,413 | 289,925 | ||||||
Gujarat Fluorochemicals Ltd. | 68,816 | 880,007 | ||||||
Gujarat Narmada Valley Fertilizers & Chemicals Ltd. | 97,515 | 356,121 | ||||||
Gulf Oil Lubricants India Ltd. | 31,416 | 378,266 | ||||||
Himadri Speciality Chemical Ltd. | 219,504 | 361,693 | ||||||
Monsanto India Ltd. | 8,704 | 311,583 | ||||||
Phillips Carbon Black Ltd. | 133,416 | 291,587 | ||||||
PI Industries Ltd. | 143,616 | 1,862,281 | ||||||
Rain Industries Ltd. | 210,808 | 269,266 | ||||||
Rallis India Ltd. | 125,528 | 265,965 | ||||||
Sharda Cropchem Ltd. | 53,340 | 270,051 | ||||||
SRF Ltd. | 35,632 | 1,149,798 | ||||||
Supreme Industries Ltd. | 98,464 | 1,581,003 | ||||||
Tata Chemicals Ltd. | 159,664 | 1,248,893 | ||||||
Vinati Organics Ltd. | 32,368 | 657,292 | ||||||
|
| |||||||
18,473,528 | ||||||||
Communications Equipment — 0.4% | ||||||||
Sterlite Technologies Ltd. | 251,464 | 854,167 | ||||||
Tejas Networks Ltd.(a)(b) | 84,456 | 185,117 | ||||||
|
| |||||||
1,039,284 | ||||||||
Construction & Engineering — 4.2% | ||||||||
Ashoka Buildcon Ltd. | 177,536 | 295,784 | ||||||
Dilip Buildcon Ltd.(b) | 85,544 | 517,164 | ||||||
Engineers India Ltd. | 395,624 | 596,276 | ||||||
Gayatri Projects Ltd.(a) | 219,232 | 462,652 | ||||||
GE Power India Ltd. | 42,704 | 483,590 | ||||||
GMR Infrastructure Ltd.(a) | 3,787,328 | 862,617 | ||||||
IRB Infrastructure Developers Ltd. | 365,976 | 690,776 | ||||||
Kalpataru Power Transmission Ltd. | 97,376 | 546,597 | ||||||
KEC International Ltd. | 161,296 | 598,684 | ||||||
NBCC India Ltd. | 1,123,904 | 835,111 | ||||||
NCC Ltd./India | 1,095,208 | 1,318,076 | ||||||
PNC Infratech Ltd. | 161,840 | 290,226 | ||||||
Sadbhav Engineering Ltd. | 220,184 | 589,727 | ||||||
Voltas Ltd. | 258,672 | 2,060,429 | ||||||
|
| |||||||
10,147,709 | ||||||||
Construction Materials — 2.6% | ||||||||
Birla Corp. Ltd. | 48,688 | 317,930 | ||||||
Century Textiles & Industries Ltd. | 69,496 | 783,667 | ||||||
HeidelbergCement India Ltd. | 143,480 | 307,329 | ||||||
India Cements Ltd. (The) | 442,272 | 545,019 | ||||||
JK Cement Ltd. | 47,464 | 484,074 | ||||||
JK Lakshmi Cement Ltd. | 77,656 | 357,948 | ||||||
Odisha Cement Ltd.(a) | 118,864 | 1,927,192 | ||||||
Prism Johnson Ltd. | 320,824 | 351,378 |
C O N S O L I D A T E D S C H E D U L E O F I N V E S T M E N T S | 11 |
Consolidated Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI India Small-Cap ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
| ||||||||
Construction Materials (continued) | ||||||||
Ramco Cements Ltd. (The) | 147,560 | $ | 1,391,863 | |||||
|
| |||||||
6,466,400 | ||||||||
Consumer Finance — 4.2% | ||||||||
Bharat Financial Inclusion Ltd.(a) | 269,960 | 3,506,666 | ||||||
Equitas Holdings Ltd./India(a) | 429,080 | 686,516 | ||||||
Magma Fincorp Ltd. | 350,200 | 504,181 | ||||||
Manappuram Finance Ltd. | 1,075,216 | 1,708,978 | ||||||
Muthoot Finance Ltd. | 249,152 | 1,849,560 | ||||||
Repco Home Finance Ltd. | 80,512 | 379,150 | ||||||
Sundaram Finance Ltd. | 68,740 | 1,582,079 | ||||||
|
| |||||||
10,217,130 | ||||||||
Containers & Packaging — 0.1% | ||||||||
Time Technoplast Ltd. | 288,048 | 357,801 | ||||||
|
| |||||||
Diversified Financial Services — 1.9% | ||||||||
Cox & Kings Financial Service Ltd.(a) | 65,956 | 49,045 | ||||||
IDFC Ltd. | 1,988,592 | 1,021,888 | ||||||
IFCI Ltd.(a) | 1,557,718 | 274,854 | ||||||
Power Finance Corp. Ltd. | 1,648,592 | 2,599,457 | ||||||
Reliance Capital Ltd. | 263,296 | 639,488 | ||||||
|
| |||||||
4,584,732 | ||||||||
Diversified Telecommunication Services — 0.8% |
| |||||||
Himachal Futuristic Communications Ltd. | 1,295,536 | 385,239 | ||||||
Tata Communications Ltd. | 177,072 | 1,469,080 | ||||||
|
| |||||||
1,854,319 | ||||||||
Electric Utilities — 2.1% | ||||||||
Adani Transmissions Ltd.(a) | 716,448 | 2,053,362 | ||||||
CESC Ltd. | 155,448 | 1,470,747 | ||||||
Reliance Infrastructure Ltd. | 342,584 | 591,474 | ||||||
Torrent Power Ltd. | 300,560 | 1,026,640 | ||||||
|
| |||||||
5,142,223 | ||||||||
Electrical Equipment — 2.4% | ||||||||
Amara Raja Batteries Ltd. | 53,992 | 544,199 | ||||||
CG Power and Industrial Solutions Ltd.(a) | 979,064 | 443,238 | ||||||
Finolex Cables Ltd. | 180,200 | 1,022,530 | ||||||
GE T&D India Ltd. | 160,480 | 652,288 | ||||||
Graphite India Ltd. | 152,456 | 883,211 | ||||||
HEG Ltd. | 20,672 | 593,309 | ||||||
KEI Industries Ltd. | 92,072 | 442,844 | ||||||
Suzlon Energy Ltd.(a) | 6,999,784 | 565,878 | ||||||
V-Guard Industries Ltd. | 267,240 | 770,802 | ||||||
|
| |||||||
5,918,299 | ||||||||
Electronic Equipment, Instruments & Components — 0.3% |
| |||||||
Redington India Ltd. | 606,560 | 721,890 | ||||||
|
| |||||||
Entertainment — 0.9% | ||||||||
Chennai Super Kings Cricket Ltd. | 206,787 | 6,541 | ||||||
Inox Leisure Ltd.(a) | 114,376 | 446,159 | ||||||
PVR Ltd. | 79,152 | 1,672,151 | ||||||
|
| |||||||
2,124,851 | ||||||||
Food & Staples Retailing — 0.1% | ||||||||
Spencer’s Retail Ltd.(a)(c) | 97,020 | 194,378 | ||||||
|
| |||||||
Food Products — 2.1% | ||||||||
Avanti Feeds Ltd. | 85,408 | 401,846 | ||||||
CCL Products India Ltd. | 136,680 | 538,543 | ||||||
Future Consumer Ltd.(a) | 1,180,208 | 769,922 | ||||||
Kaveri Seed Co. Ltd. | 64,464 | 369,285 | ||||||
KRBL Ltd. | 122,808 | 607,770 |
Security | Shares | Value | ||||||
| ||||||||
Food Products (continued) | ||||||||
Tata Global Beverages Ltd. | 772,208 | $ | 2,102,975 | |||||
Venky’s India Ltd. | 8,805 | 254,960 | ||||||
|
| |||||||
5,045,301 | ||||||||
Gas Utilities — 2.1% | ||||||||
Gujarat Gas Ltd. | 428,400 | 717,049 | ||||||
Gujarat State Petronet Ltd. | 353,736 | 782,060 | ||||||
Indraprastha Gas Ltd. | 545,224 | 2,244,482 | ||||||
Mahanagar Gas Ltd. | 101,456 | 1,282,495 | ||||||
|
| |||||||
5,026,086 | ||||||||
Health Care Providers & Services — 2.8% | ||||||||
Apollo Hospitals Enterprise Ltd. | 235,280 | 3,774,007 | ||||||
Dr Lal PathLabs Ltd.(b) | 65,008 | 924,308 | ||||||
Fortis Healthcare Ltd.(a) | 1,078,072 | 2,042,428 | ||||||
|
| |||||||
6,740,743 | ||||||||
Hotels, Restaurants & Leisure — 3.5% | ||||||||
Cox & Kings Ltd. | 203,864 | 416,033 | ||||||
EIH Ltd. | 371,416 | 968,928 | ||||||
Indian Hotels Co. Ltd. (The) | 1,231,081 | 2,400,674 | ||||||
Jubilant Foodworks Ltd. | 171,904 | 3,066,423 | ||||||
Lemon Tree Hotels Ltd.(a)(b) | 493,816 | 528,001 | ||||||
Thomas Cook India Ltd. | 234,736 | 698,503 | ||||||
Westlife Development Ltd.(a) | 96,152 | 477,338 | ||||||
|
| |||||||
8,555,900 | ||||||||
Household Durables — 3.0% | ||||||||
Bajaj Electricals Ltd. | 63,920 | 407,104 | ||||||
Crompton Greaves Consumer Electricals Ltd. | 978,384 | 2,888,675 | ||||||
IFB Industries Ltd.(a) | 25,432 | 297,062 | ||||||
Johnson Controls-Hitachi Air Conditioning India Ltd. | 17,000 | 406,391 | ||||||
LA Opala RG Ltd. | 81,192 | 223,909 | ||||||
Symphony Ltd. | 44,200 | 803,851 | ||||||
TTK Prestige Ltd. | 7,344 | 782,111 | ||||||
Whirlpool of India Ltd. | 78,744 | 1,520,660 | ||||||
|
| |||||||
7,329,763 | ||||||||
Household Products — 0.2% | ||||||||
Jyothy Laboratories Ltd. | 223,856 | 564,469 | ||||||
|
| |||||||
Independent Power and Renewable Electricity Producers — 1.2% |
| |||||||
Adani Power Ltd.(a) | 2,009,400 | 1,360,294 | ||||||
JSW Energy Ltd.(a) | 856,528 | 776,130 | ||||||
PTC India Ltd. | 448,256 | 482,753 | ||||||
Reliance Power Ltd.(a) | 1,462,136 | 220,987 | ||||||
|
| |||||||
2,840,164 | ||||||||
Industrial Conglomerates — 0.6% | ||||||||
Godrej Industries Ltd. | 210,800 | 1,461,274 | ||||||
|
| |||||||
Insurance — 1.2% | ||||||||
Max Financial Services Ltd.(a) | 341,632 | 1,895,574 | ||||||
TI Financial Holdings Ltd. | 186,728 | 1,150,145 | ||||||
|
| |||||||
3,045,719 | ||||||||
Interactive Media & Services — 1.9% | ||||||||
Info Edge India Ltd. | 158,576 | 3,990,025 | ||||||
Just Dial Ltd.(a) | 93,296 | 678,672 | ||||||
|
| |||||||
4,668,697 | ||||||||
IT Services — 5.1% | ||||||||
CESC Ventures Ltd.(a) | 32,338 | 226,578 | ||||||
eClerx Services Ltd. | 50,456 | 735,279 | ||||||
Firstsource Solutions Ltd. | 433,840 | 264,112 | ||||||
Hexaware Technologies Ltd. | 232,288 | 1,158,399 | ||||||
Mindtree Ltd. | 256,768 | 3,280,796 |
12 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Consolidated Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI India Small-Cap ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
| ||||||||
IT Services (continued) | ||||||||
Mphasis Ltd. | 242,224 | $ | 3,545,859 | |||||
NIIT Technologies Ltd. | 78,744 | 1,462,149 | ||||||
Persistent Systems Ltd. | 102,408 | 943,361 | ||||||
Sonata Software Ltd. | 82,960 | 394,352 | ||||||
Vakrangee Ltd. | 796,960 | 489,652 | ||||||
|
| |||||||
12,500,537 | ||||||||
Life Sciences Tools & Services — 0.6% | ||||||||
Dishman Carbogen Amcis Ltd.(a) | 168,096 | 440,291 | ||||||
Syngene International Ltd.(b) | 124,848 | 1,035,979 | ||||||
|
| |||||||
1,476,270 | ||||||||
Machinery — 3.6% | ||||||||
AIA Engineering Ltd. | 98,192 | 2,368,163 | ||||||
Carborundum Universal Ltd. | 115,533 | 604,172 | ||||||
Cochin Shipyard Ltd.(b) | 82,530 | 404,898 | ||||||
Escorts Ltd. | 156,944 | 1,451,031 | ||||||
Greaves Cotton Ltd. | 154,375 | 272,498 | ||||||
ISGEC Heavy Engineering Ltd. | 4,432 | 289,575 | ||||||
Jain Irrigation Systems Ltd. | 776,016 | 620,256 | ||||||
Lakshmi Machine Works Ltd. | 6,818 | 549,854 | ||||||
Schaeffler India Ltd. | 10,200 | 774,326 | ||||||
Thermax Ltd. | 74,800 | 1,040,031 | ||||||
Timken India Ltd. | 47,872 | 383,979 | ||||||
|
| |||||||
8,758,783 | ||||||||
Media — 0.7% | ||||||||
Dish TV India Ltd. | 1,686,128 | 924,539 | ||||||
Jagran Prakashan Ltd. | 183,600 | 248,710 | ||||||
TV18 Broadcast Ltd.(a) | 1,164,840 | 550,270 | ||||||
|
| |||||||
1,723,519 | ||||||||
Metals & Mining — 1.7% | ||||||||
APL Apollo Tubes Ltd. | 15,096 | 254,468 | ||||||
Jindal Saw Ltd. | 292,725 | 335,007 | ||||||
Jindal Steel & Power Ltd.(a) | 1,008,848 | 2,224,746 | ||||||
MOIL Ltd. | 163,472 | 329,696 | ||||||
National Aluminium Co. Ltd. | 1,176,808 | 836,367 | ||||||
Welspun Corp. Ltd. | 138,992 | 211,538 | ||||||
|
| |||||||
4,191,822 | ||||||||
Multiline Retail — 0.5% | ||||||||
Shoppers Stop Ltd. | 54,128 | 364,677 | ||||||
V-Mart Retail Ltd. | 21,216 | 769,609 | ||||||
|
| |||||||
1,134,286 | ||||||||
Oil, Gas & Consumable Fuels — 0.7% | ||||||||
Aegis Logistics Ltd. | 209,984 | 587,207 | ||||||
Chennai Petroleum Corp. Ltd. | 93,160 | 298,958 | ||||||
Great Eastern Shipping Co. Ltd. (The) | 130,716 | 494,093 | ||||||
Gujarat Mineral Development Corp. Ltd. | 201,416 | 217,908 | ||||||
|
| |||||||
1,598,166 | ||||||||
Paper & Forest Products — 0.3% | ||||||||
Anup Engineering Ltd. (The)(a) | 12,943 | 314,582 | ||||||
Century Plyboards India Ltd. | 140,624 | 330,868 | ||||||
|
| |||||||
645,450 | ||||||||
Personal Products — 0.9% | ||||||||
Bajaj Consumer Care Ltd.(a) | 135,200 | 665,106 | ||||||
Gillette India Ltd. | 16,864 | 1,543,423 | ||||||
|
| |||||||
2,208,529 | ||||||||
Pharmaceuticals — 5.9% | ||||||||
Ajanta Pharma Ltd. | 55,080 | 758,058 | ||||||
Alembic Pharmaceuticals Ltd. | 118,456 | 924,232 | ||||||
Caplin Point Laboratories Ltd. | 47,872 | 262,492 |
Security | Shares | Value | ||||||
| ||||||||
Pharmaceuticals (continued) | ||||||||
Eris Lifesciences Ltd.(a)(b) | 90,168 | $ | 772,357 | |||||
FDC Ltd./India(a) | 111,112 | 259,712 | ||||||
Granules India Ltd. | 324,224 | 445,358 | ||||||
Ipca Laboratories Ltd. | 114,512 | 1,303,764 | ||||||
Jubilant Life Sciences Ltd. | 185,368 | 2,041,944 | ||||||
Laurus Labs Ltd.(b) | 97,240 | 455,875 | ||||||
Merck Ltd./India | 10,472 | 463,616 | ||||||
Natco Pharma Ltd. | 234,736 | 1,899,637 | ||||||
Pfizer Ltd./India | 28,288 | 1,287,564 | ||||||
Sanofi India Ltd. | 14,229 | 1,194,335 | ||||||
Shilpa Medicare Ltd. | 75,480 | 371,636 | ||||||
Strides Pharma Science Ltd. | 114,240 | 676,032 | ||||||
Sun Pharma Advanced Research Co. Ltd.(a) | 164,288 | 411,839 | ||||||
Suven Life Sciences Ltd. | 117,504 | 397,896 | ||||||
Wockhardt Ltd.(a) | 71,944 | 400,553 | ||||||
|
| |||||||
14,326,900 | ||||||||
Professional Services — 0.8% | ||||||||
Quess Corp. Ltd.(a)(b) | 95,200 | 958,341 | ||||||
TeamLease Service Ltd.(a) | 26,520 | 1,063,391 | ||||||
|
| |||||||
2,021,732 | ||||||||
Real Estate Management & Development — 2.7% | ||||||||
Godrej Properties Ltd.(a) | 142,936 | 1,425,717 | ||||||
Indiabulls Real Estate Ltd.(a) | 533,392 | 528,321 | ||||||
NESCO Ltd. | 41,717 | 252,673 | ||||||
Oberoi Realty Ltd. | 141,168 | 983,147 | ||||||
Phoenix Mills Ltd. (The) | 138,001 | 1,209,731 | ||||||
Prestige Estates Projects Ltd. | 294,168 | 851,573 | ||||||
Sobha Ltd. | 111,656 | 687,585 | ||||||
Sunteck Realty Ltd. | 133,416 | 649,764 | ||||||
|
| |||||||
6,588,511 | ||||||||
Software — 0.6% | ||||||||
Birlasoft Ltd.(a) | 361,624 | 552,658 | ||||||
Tata Elxsi Ltd. | 39,304 | 488,964 | ||||||
Zensar Technologies Ltd. | 142,477 | 404,037 | ||||||
|
| |||||||
1,445,659 | ||||||||
Specialty Retail — 0.8% | ||||||||
Arvind Fashions Ltd.(a) | 69,894 | 679,490 | ||||||
Future Lifestyle Fashions Ltd. | 125,664 | 758,123 | ||||||
PC Jeweller Ltd. | 357,816 | 355,420 | ||||||
Shankara Building Products Ltd. | 27,880 | 168,061 | ||||||
|
| |||||||
1,961,094 | ||||||||
Technology Hardware, Storage & Peripherals — 0.0% | ||||||||
Ricoh India Ltd.(a)(c) | 9,870 | — | ||||||
|
| |||||||
Textiles, Apparel & Luxury Goods — 3.1% | ||||||||
Aditya Birla Fashion and Retail Ltd.(a) | 477,632 | 1,512,950 | ||||||
Arvind Ltd. | 324,950 | 345,389 | ||||||
Bata India Ltd. | 80,104 | 1,451,476 | ||||||
KPR Mill Ltd. | 46,451 | 347,437 | ||||||
Rajesh Exports Ltd. | 192,304 | 1,568,416 | ||||||
Raymond Ltd. | 68,680 | 741,345 | ||||||
Vardhman Textiles Ltd. | 35,768 | 507,130 | ||||||
VIP Industries Ltd. | 88,536 | 507,805 | ||||||
Welspun India Ltd. | 657,560 | 476,578 | ||||||
|
| |||||||
7,458,526 | ||||||||
Thrifts & Mortgage Finance — 1.8% | ||||||||
Can Fin Homes Ltd. | 83,838 | 313,776 | ||||||
Dewan Housing Finance Corp. Ltd. | 367,880 | 658,940 | ||||||
GRUH Finance Ltd. | 456,416 | 1,588,203 |
C O N S O L I D A T E D S C H E D U L E O F I N V E S T M E N T S | 13 |
Consolidated Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI India Small-Cap ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
| ||||||||
Thrifts & Mortgage Finance (continued) | ||||||||
PNB Housing Finance Ltd.(b) | 152,592 | $ | 1,922,250 | |||||
|
| |||||||
4,483,169 | ||||||||
Tobacco — 0.2% | ||||||||
Godfrey Phillips India Ltd. | 32,776 | 408,097 | ||||||
|
| |||||||
Trading Companies & Distributors — 0.2% |
| |||||||
Adani Enterprises Ltd. | 343,858 | 622,922 | ||||||
|
| |||||||
Transportation Infrastructure — 0.3% | ||||||||
Gujarat Pipavav Port Ltd. | 571,336 | 650,649 | ||||||
|
| |||||||
Wireless Telecommunication Services — 0.1% |
| |||||||
Reliance Communications Ltd.(a) | 1,800,504 | 164,542 | ||||||
|
| |||||||
Total Common Stocks — 100.0% | 243,482,327 | |||||||
|
| |||||||
Total Investments in Securities — 100.0% |
| 243,482,327 | ||||||
Other Assets, Less Liabilities — 0.0% | 7,996 | |||||||
|
| |||||||
Net Assets — 100.0% | $ | 243,490,323 | ||||||
|
|
(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. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2019, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Affiliated Issuer | Shares Held at 08/31/18 | Net Activity | Shares Held at 02/28/19 | Value at 02/28/19 | Income | Net Realized Gain (Loss)(a) | Change in Unrealized Appreciation (Depreciation) | |||||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | — | — | — | $ | — | $ | 3,902 | $ | — | $ | — | |||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
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, refer to the Notes to Consolidated Financial Statements.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2019. 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 | $ | 242,031,459 | $ | 1,450,868 | $ | — | $ | 243,482,327 | ||||||||
|
|
|
|
|
|
|
|
See notes to consolidated financial statements.
14 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Consolidated Statements of Assets and Liabilities (unaudited) February 28, 2019 |
iShares MSCI India ETF | iShares MSCI India ETF | |||||||
| ||||||||
ASSETS | ||||||||
Investments in securities, at value: | ||||||||
Unaffiliated(a) | $ | 4,606,791,825 | $ | 243,482,327 | ||||
Affiliated(b) | 18,132,534 | — | ||||||
Cash | 31,173,693 | 155,988 | ||||||
Foreign currency, at value(c) | 137,219 | 86,190 | ||||||
Cash pledged: | ||||||||
Futures contracts | 355,000 | — | ||||||
Receivables: | ||||||||
Investments sold | 29,135,615 | 1,210,551 | ||||||
Dividends | 2,710,595 | 19,088 | ||||||
|
|
|
| |||||
Total assets | 4,688,436,481 | 244,954,144 | ||||||
|
|
|
| |||||
LIABILITIES | ||||||||
Deferred foreign capital gain tax | 43,093,872 | — | ||||||
Payables: | ||||||||
Investments purchased | 29,689,231 | 1,328,487 | ||||||
Variation margin on futures contracts | 80,567 | — | ||||||
Investment advisory fees | 2,282,495 | 135,334 | ||||||
|
|
|
| |||||
Total liabilities | 75,146,165 | 1,463,821 | ||||||
|
|
|
| |||||
NET ASSETS | $ | 4,613,290,316 | $ | 243,490,323 | ||||
|
|
|
| |||||
NET ASSETS CONSIST OF: | ||||||||
Paid-in capital | $ | 4,255,163,659 | $ | 283,616,652 | ||||
Accumulated earnings (loss) | 358,126,657 | (40,126,329 | ) | |||||
|
|
|
| |||||
NET ASSETS | $ | 4,613,290,316 | $ | 243,490,323 | ||||
|
|
|
| |||||
Shares outstanding | 142,150,000 | 6,800,000 | ||||||
|
|
|
| |||||
Net asset value | $ | 32.45 | $ | 35.81 | ||||
|
|
|
| |||||
Shares authorized | Unlimited | Unlimited | ||||||
|
|
|
| |||||
Par value | None | None | ||||||
|
|
|
| |||||
(a) Investments, at cost — Unaffiliated | $ | 3,674,303,011 | $ | 252,689,568 | ||||
(b) Investments, at cost — Affiliated | $ | 18,132,534 | $ | — | ||||
(c) Foreign currency, at cost | $ | 137,239 | $ | 86,757 |
See notes to consolidated financial statements.
C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S | 15 |
Consolidated Statements of Operations (unaudited) Six Months Ended February 28, 2019 |
iShares MSCI India ETF | iShares MSCI India ETF | |||||||
INVESTMENT INCOME | ||||||||
Dividends — Unaffiliated | $ | 24,874,461 | $ | 842,894 | ||||
Dividends — Affiliated | 541,986 | 3,902 | ||||||
Interest — Unaffiliated | 27 | — | ||||||
|
|
|
| |||||
Total investment income | 25,416,474 | 846,796 | ||||||
|
|
|
| |||||
EXPENSES | ||||||||
Investment advisory fees | 14,642,472 | 898,289 | ||||||
Mauritius income taxes | 1,355,119 | 25,533 | ||||||
|
|
|
| |||||
Total expenses | 15,997,591 | 923,822 | ||||||
|
|
|
| |||||
Net investment income (loss) | 9,418,883 | (77,026 | ) | |||||
|
|
|
| |||||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||
Net realized gain (loss) from: | ||||||||
Investments — Unaffiliated | (21,543,365 | ) | (12,275,411 | ) | ||||
Futures contracts | (313,556 | ) | — | |||||
Foreign currency transactions | (768,284 | ) | (287,075 | ) | ||||
|
|
|
| |||||
Net realized loss | (22,625,205 | ) | (12,562,486 | ) | ||||
|
|
|
| |||||
Net change in unrealized appreciation (depreciation) on: | ||||||||
Investments — Unaffiliated | (414,489,748 | ) | (39,548,893 | ) | ||||
Futures contracts | (142,775 | ) | — | |||||
Foreign currency translations | 35,316 | 14,201 | ||||||
|
|
|
| |||||
Net change in unrealized appreciation (depreciation) | (414,597,207 | ) | (39,534,692 | ) | ||||
|
|
|
| |||||
Net realized and unrealized loss | (437,222,412 | ) | (52,097,178 | ) | ||||
|
|
|
| |||||
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | (427,803,529 | ) | $ | (52,174,204 | ) | ||
|
|
|
|
See notes to consolidated financial statements.
16 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Consolidated Statements of Changes in Net Assets |
iShares MSCI India ETF | iShares MSCI India Small-Cap ETF | |||||||||||||||||||
Six Months Ended 02/28/19 (unaudited) | Year Ended 08/31/18 | Six Months Ended 02/28/19 (unaudited) | Year Ended 08/31/18 | |||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||
OPERATIONS | ||||||||||||||||||||
Net investment income (loss) | $ | 9,418,883 | $ | 37,959,625 | $ | (77,026 | ) | $ | (5,337 | ) | ||||||||||
Net realized loss | (22,625,205 | ) | (47,736,260 | ) | (12,562,486 | ) | (5,942,280 | ) | ||||||||||||
Net change in unrealized appreciation (depreciation) | (414,597,207 | ) | 248,886,635 | (39,534,692 | ) | (10,628,355 | ) | |||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Net increase (decrease) in net assets resulting from operations | (427,803,529 | ) | 239,110,000 | (52,174,204 | ) | (16,575,972 | ) | |||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||||||||||||||
From net investment income | (37,746,486 | ) | (47,283,590 | ) | — | (3,843,860 | ) | |||||||||||||
Return of capital | — | — | — | (2,942,209 | ) | |||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Decrease in net assets resulting from distributions to shareholders | (37,746,486 | ) | (47,283,590 | ) | — | (6,786,069 | ) | |||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions | (3,279,697 | ) | (373,524,895 | ) | 13,400,125 | 99,712,128 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
NET ASSETS(a) | ||||||||||||||||||||
Total increase (decrease) in net assets | (468,829,712 | ) | (181,698,485 | ) | (38,774,079 | ) | 76,350,087 | |||||||||||||
Beginning of period | 5,082,120,028 | 5,263,818,513 | 282,264,402 | 205,914,315 | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
End of period | $ | 4,613,290,316 | $ | 5,082,120,028 | $ | 243,490,323 | $ | 282,264,402 | ||||||||||||
|
|
|
|
|
|
|
|
(a) | Prior year distribution character information and undistributed (distributions in excess of) net investment income has been modified or removed to conform with current year Regulation S-X presentation changes. Refer to Note 11 for this prior year information. |
See notes to consolidated financial statements.
C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S | 17 |
Consolidated Financial Highlights (For a share outstanding throughout each period) |
iShares MSCI India ETF | ||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||
Six Months Ended | ||||||||||||||||||||||||||||
02/28/19 (unaudited) | Year Ended 08/31/18 | Year Ended 08/31/17 | Year Ended 08/31/16 | Year Ended 08/31/15 | Year Ended 08/31/14 | |||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 35.68 | $ 34.20 | $ 29.61 | $ 28.12 | $ 30.83 | $ 20.48 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Net investment income(a) | 0.07 | 0.25 | 0.26 | 0.22 | 0.45 | 0.40 | ||||||||||||||||||||||
Net realized and unrealized gain (loss)(b) | (3.03 | ) | 1.54 | 4.53 | 1.64 | (2.92 | ) | 10.12 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Net increase (decrease) from investment operations | (2.96 | ) | 1.79 | 4.79 | 1.86 | (2.47 | ) | 10.52 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Distributions | ||||||||||||||||||||||||||||
From net investment income | (0.27 | ) | (0.31 | ) | (0.20 | ) | (0.37 | ) | (0.24 | ) | (0.17 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total distributions | (0.27 | ) | (0.31 | ) | (0.20 | ) | (0.37 | ) | (0.24 | ) | (0.17 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Net asset value, end of period | $ | 32.45 | $ 35.68 | $ 34.20 | $ 29.61 | $ 28.12 | $ 30.83 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total Return | ||||||||||||||||||||||||||||
Based on net asset value | (8.28 | )%(c) | 5.26 | % | 16.27 | % | 6.73 | % | (8.05 | )% | 51.61 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||||
Total expenses | 0.71 | %(d) | 0.68 | % | 0.68 | % | 0.71 | % | 0.68 | % | 0.68 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Net investment income | 0.42 | %(d) | 0.72 | % | 0.87 | % | 0.79 | % | 1.47 | % | 1.47 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Supplemental Data | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $ | 4,613,290 | $5,082,120 | $5,263,819 | $4,112,252 | $3,583,362 | $1,456,894 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Portfolio turnover rate(e) | 4 | %(c)(f) | 10 | %(f) | 13 | %(f) | 25 | %(f) | 30 | %(f) | 22 | %(f) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
(a) Based on average shares outstanding. (b) The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. (c) Not annualized. (d) Annualized. (e) Portfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash in U.S. dollars (“cash creations”). |
| |||||||||||||||||||||||||||
(f) Portfolio turnover rate excluding cash creations was as follows: | 2 | % | 5 | % | 5 | % | 15 | % | 22 | % | 14 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
See notes to consolidated financial statements.
18 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Consolidated Financial Highlights (continued) (For a share outstanding throughout each period) |
iShares MSCI India Small-Cap ETF | ||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||
Six Months Ended | ||||||||||||||||||||||||||||
02/28/19 (unaudited) | Year Ended 08/31/18 | Year Ended 08/31/17 | Year Ended 08/31/16 | Year Ended 08/31/15 | Year Ended 08/31/14 | |||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 44.10 | $ | 46.27 | $ | 36.01 | $ | 32.24 | $ | 31.44 | $ | 15.49 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Net investment income (loss)(a) | (0.01 | ) | (0.00 | )(b) | 0.09 | 0.07 | 0.21 | 0.26 | ||||||||||||||||||||
Net realized and unrealized gain (loss)(c) | (8.28 | ) | (1.06 | ) | 10.55 | 4.36 | 0.69 | 15.84 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Net increase (decrease) from investment operations | (8.29 | ) | (1.06 | ) | 10.64 | 4.43 | 0.90 | 16.10 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Distributions | ||||||||||||||||||||||||||||
From net investment income | — | (0.63 | ) | (0.38 | ) | (0.66 | ) | (0.10 | ) | (0.15 | ) | |||||||||||||||||
Return of capital | — | (0.48 | ) | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total distributions | — | (1.11 | ) | (0.38 | ) | (0.66 | ) | (0.10 | ) | (0.15 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Net asset value, end of period | $ | 35.81 | $ | 44.10 | $ | 46.27 | $ | 36.01 | $ | 32.24 | $ | 31.44 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total Return | ||||||||||||||||||||||||||||
Based on net asset value | (18.82 | )%(d) | (2.36 | )% | 29.97 | % | 13.99 | % | 2.87 | % | 104.53 | %(e) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||||
Total expenses | 0.76 | %(f) | 0.77 | % | 0.75 | % | 0.80 | % | 0.74 | % | 0.74 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Net investment income (loss) | (0.06 | )%(f) | (0.00 | )%(g) | 0.21 | % | 0.23 | % | 0.62 | % | 1.06 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Supplemental Data | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $ | 243,490 | $ | 282,264 | $ | 205,914 | $ | 64,825 | $ | 62,874 | $ | 11,003 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Portfolio turnover rate(h) | 14 | %(d)(i) | 49 | %(i) | 38 | %(i) | 53 | %(i) | 73 | %(i) | 54 | %(i) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
(a) Based on average shares outstanding. (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) 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%. (f) Annualized. (g) Rounds to less than 0.01%. (h) Portfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash in U.S. dollars (“cash creations”). |
| |||||||||||||||||||||||||||
(i) Portfolio turnover rate excluding cash creations was as follows: | 12 | % | 31 | % | 22 | % | 25 | % | 61 | % | 28 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
See notes to consolidated financial statements.
C O N S O L I D A T E D F I N A N C I A L H I G H L I G H T S | 19 |
Notes to Consolidated Financial Statements (unaudited) |
1. | ORGANIZATION |
iShares Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust is organized as a Delaware statutory trust and is authorized to have multiple series or portfolios.
These 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 | |||
|
Basis of Consolidation:The accompanying consolidated financial statements for each Fund includes the accounts of its subsidiary in the Republic of Mauritius, which is a wholly-owned subsidiary (each, a “Subsidiary”) of the Fund that invests in Indian securities. Through this investment structure, each Fund expects to obtain certain benefits under a current tax treaty between Mauritius and India. Intercompany accounts and transactions, if any, have been eliminated.
2. | 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 increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies.
Investment Transactions and Income Recognition:Investment 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 are reflected in tax reclaims receivable. 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. 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. 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 non-U.S. currencies are translated to U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of investments, 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 investments. Such fluctuations are reflected by the Funds as a component of net realized and unrealized gain (loss) from investments for financial reporting purposes. Each Fund reports realized currency gain (loss) 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 each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its consolidated statement 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, 2019, if any, are disclosed in the consolidated statement of assets and liabilities.
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 each Subsidiary and are disclosed in its consolidated statement 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.
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Notes to Consolidated Financial Statements (unaudited) (continued) |
Distributions:Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds.
Recent Accounting Standards:In August 2018, the Financial Accounting Standards Board issued Accounting Standards Update 2018-13 “Changes to the Disclosure Requirements for Fair Value Measurement” which modifies disclosure requirements for fair value measurements. The guidance is effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years. Management is currently evaluating the impact of this guidance to the Funds.
Indemnifications:In the normal course of business, each Fund enters into contracts that contain a variety of representations that provide general indemnification. The Funds’ maximum exposure under these arrangements is unknown because it involves future potential claims against the Funds, which cannot be predicted with any certainty.
3. | INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS |
Investment Valuation Policies:Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date 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. A fund determines the fair value of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Trustees of the Trust (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.
Fair Value Inputs and Methodologies:The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:
• | Equity investments traded on a recognized securities exchange are valued at that day’s last traded price or official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price. |
• | Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published 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. |
If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of an investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and the cost approach. 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.
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, regular reviews 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 and large movements in market values, and reviews of any market related activity. The pricing of all Fair Valued Investments is subsequently reported to the Board on a quarterly basis.
Fair value pricing could result in a difference between the prices used to calculate a fund’s NAV and the prices used by the fund’s underlying index, which in turn could result in a difference between the fund’s performance and the performance of the fund’s underlying index.
Fair Value Hierarchy:Various inputs are used in determining the fair value of financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:
• | Level 1 — Unadjusted price quotations in active markets 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, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and |
• | Level 3 — Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, (including the Global Valuation Committee’s assumptions used in determining the fair value of financial instruments). |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgement exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value mayfall 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.
N O T E S T O C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S | 21 |
Notes to Consolidated Financial Statements (unaudited) (continued) |
Changes in valuation techniques may result in transfers into or out of an assigned level within the 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 a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.
4. | DERIVATIVE FINANCIAL INSTRUMENTS |
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 specific quantity of an underlying instrument at a set price on a future date. Depending on the terms of a contract, a futures contract is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date.
Upon entering into a futures contract, 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. Securities deposited as initial margin, if any, are designated in the consolidated schedule of investments and cash deposited, if any, is shown as cash pledged for futures contracts in the consolidated statement of assets and liabilities.
Pursuant to the contract, a 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 (“variation margin”). Variation margin is recorded as unrealized appreciation or depreciation and, if any, shown as variation margin receivable or payable on futures contracts in the consolidated statement of assets and liabilities. When the contract is closed, a realized gain or loss is recorded in the consolidated statement of operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. 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 involves the risk of an imperfect correlation in the movements in the price of futures contracts and the assets underlying such contracts.
5. | INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES |
Investment Advisory Fees: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).
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:
Aggregate Average Daily Net Assets | Investment Advisory Fee | |||
First $4 billion | 0.6500 | % | ||
Over $4 billion, up to and including $6 billion | 0.6175 | |||
Over $6 billion, up to and including $8 billion | 0.5867 | |||
Over $8 billion | 0.5573 |
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.
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.
Distributor:BlackRock Investments, LLC, an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.
Officers and Trustees:Certain officers and/or trustees of the Trust are officers and/or trustees of BlackRock or its affiliates.
Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is shown as dividends — affiliated in the consolidated statement of operations.
A fund, in order to improve its portfolio liquidity and its ability to track its underlying index, may invest in shares of other iShares funds that invest in securities in the fund’s underlying index.
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Notes to Consolidated Financial Statements (unaudited) (continued) |
6. | PURCHASES AND SALES |
For the six months ended February 28, 2019, purchases and sales of investments, excluding in-kind transactions and short-term investments, were as follows:
iShares ETF | Purchases | Sales | ||||||
MSCI India | $ | 168,056,993 | $ | 164,668,475 | ||||
MSCI India Small-Cap | 49,949,944 | 35,795,457 |
There were no in-kind transactions for the six months ended February 28, 2019.
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.
Management has analyzed tax laws and regulations and their application to the Funds as of February 28, 2019, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ consolidated financial statements.
As of August 31, 2018, the Funds had capital loss carryforwards, with no expiration dates, available to offset future realized capital gains as follows:
iShares ETF | Non-Expiring | |||
MSCI India | $ | 313,824,438 | ||
MSCI India Small-Cap | 9,964,106 |
A fund may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” Such fund 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, 2019, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:
iShares ETF | Tax Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||
MSCI India | $ | 3,888,954,915 | $ | 1,282,708,490 | $ | (546,787,101 | ) | $ | 735,921,389 | |||||||
MSCI India Small-Cap | 261,633,087 | 27,378,627 | (45,529,387 | ) | (18,150,760 | ) |
8. | 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 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.
N O T E S T O C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S | 23 |
Notes to Consolidated Financial Statements (unaudited) (continued) |
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.
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 consolidated statement of assets and liabilities.
Concentration Risk:A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its consolidated schedule of investments.
When a fund concentrates its investments in issuers located in a single country or a limited number of countries, it assumes the risk that economic, regulatory, political and social conditions in that country or those countries may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.
9. | CAPITAL SHARE TRANSACTIONS |
Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable.
Transactions in capital shares were as follows:
Six Months Ended 02/28/19 | Year Ended 08/31/18 | |||||||||||||||||||
iShares ETF | Shares | Amount | Shares | Amount | ||||||||||||||||
MSCI India | ||||||||||||||||||||
Shares sold | 2,200,000 | $ | 73,716,850 | 4,150,000 | $ | 154,495,054 | ||||||||||||||
Shares redeemed | (2,500,000 | ) | (76,996,547 | ) | (15,600,000 | ) | (528,019,949 | ) | ||||||||||||
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Net decrease | (300,000 | ) | $ | (3,279,697 | ) | (11,450,000 | ) | $ | (373,524,895 | ) | ||||||||||
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MSCI India Small-Cap | ||||||||||||||||||||
Shares sold | 550,000 | $ | 19,748,004 | 3,000,000 | $ | 149,328,288 | ||||||||||||||
Shares redeemed | (150,000 | ) | (6,347,879 | ) | (1,050,000 | ) | (49,616,160 | ) | ||||||||||||
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Net increase | 400,000 | $ | 13,400,125 | 1,950,000 | $ | 99,712,128 | ||||||||||||||
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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 shares sold in the table above.
10. | LEGAL PROCEEDINGS |
On June 16, 2016, investors 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 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.
11. | REGULATION S-X AMENDMENTS |
On August 17, 2018, the SEC adopted amendments to certain disclosure requirements in Securities Act Release No. 33-10532,Disclosure Update and Simplification. The Funds have adopted the amendments pertinent to Regulation S-X in this shareholder report. The amendments impacted certain disclosure presentation on the consolidated statement of assets and liabilities, consolidated statement of changes in net assets and notes to the consolidated financial statements.
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Notes to Consolidated Financial Statements (unaudited) (continued) |
Prior year distribution information and undistributed (distributions in excess of) net investment income in the consolidated statement of changes in net assets has been modified to conform to the current year presentation in accordance with the Regulation S-X changes.
Distributions for the year ended August 31, 2018 were classified as follows:
iShares ETF | Net Investment Income | Return of capital | ||||||
MSCI India | $ | 47,283,590 | $ | — | ||||
MSCI India Small-Cap | 3,843,860 | 2,942,209 |
Undistributed (distributions in excess of) net investment income as of August 31, 2018 are as follows:
iShares ETF | Undistributed (distributions in excess of) net investment income | |||
MSCI India | $ | 28,262,202 | ||
MSCI India Small-Cap | (785,842 | ) |
12. | 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 additional disclosure in the consolidated financial statements.
N O T E S T O C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S | 25 |
Supplemental Information (unaudited) |
Section 19(a) Notices
The amounts and sources of distributions reported in this notice are for financial reporting purposes and are not being provided for tax reporting purposes. The actual amounts and character of the distributions for tax reporting purposes will be reported to shareholders on Form 1099-DIV which is sent to shareholders shortly after calendar year-end.
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 | | | 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(a) | $ | — | $ | — | $ | 0.268475 | $ | 0.268475 | — | % | — | % | 100 | % | 100 | % |
(a) | The Fund estimates that it has distributed more than the amount of earned income and net realized gains; therefore, a portion of the distribution may be a return of capital. A return of capital may occur, for example, when some or all of the shareholder’s investment in the Fund is returned to the shareholder. A return of capital does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. When distributions exceed total return performance, the difference will incrementally reduce the Fund’s net asset value per share. |
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General Information |
Electronic Delivery
Shareholders can sign up for email notifications announcing that the shareholder report or prospectus has been posted on the iShares website at 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. House holding 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 at www.sec.gov. The iShares Funds also disclose their complete schedule of portfolio holdings on a daily basis on the iShares website at www.iShares.com.
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.
G E N E R A L I N F O R M A T I O N | 27 |
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.
©2019 BlackRock, Inc. All rights reserved.iSHARESandBLACKROCKare registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.
iS-SAR-809-0219
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FEBRUARY 28, 2019
2019 SEMI-ANNUAL REPORT (UNAUDITED) |
iShares Trust
▶ | iShares Currency Hedged MSCI United Kingdom ETF | HEWU | NYSE Arca |
▶ | iShares MSCI United Kingdom ETF | EWU | NYSE Arca |
▶ | iShares MSCI United KingdomSmall-Cap ETF | EWUS | Cboe BZX |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of each Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
You may elect to receive all future reports in paper free of charge. If you hold accounts through a financial intermediary, you can follow the instructions included with this disclosure, if applicable, or contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. Please note that not all financial intermediaries may offer this service. Your election to receive reports in paper will apply to all funds held with your financial intermediary.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive electronic delivery of shareholder reports and other communications by contacting your financial intermediary. Please note that not all financial intermediaries may offer this service.
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Fund Summary as of February 28, 2019 | iShares® Currency Hedged MSCI United Kingdom ETF |
Investment Objective
TheiShares Currency Hedged MSCI United Kingdom ETF(the “Fund”) seeks to track the investment results of an index composed of large- andmid-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.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||
6 Months | 1 Year | Since Inception | 1 Year | Since Inception | ||||||||||||||||||||
Fund NAV | (1.95 | )% | 3.78 | % | 6.29 | % | 3.78 | % | 25.08 | % | ||||||||||||||
Fund Market | (2.16 | ) | 3.64 | 6.25 | 3.64 | 24.91 | ||||||||||||||||||
Index | (1.78 | ) | 3.89 | 6.59 | 3.89 | 26.40 |
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.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
| Beginning Account Value (09/01/18) | | | Ending Account Value (02/28/19) | | | Expenses Paid During the Period | (a)(b) | | Beginning Account Value (09/01/18) | | | Ending Account Value (02/28/19) | | | Expenses Paid During the Period | (a)(b) | | Annualized Expense Ratio | (a) | ||||||||||
$ 1,000.00 | $ | 980.50 | $ | 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. |
Portfolio Information
Tables shown are for the underlying fund in which the Fund invests.
ALLOCATION BY SECTOR
Sector | Percent of Total Investments(a) | |||
Financials | 20.7% | |||
Energy | 17.5 | |||
Consumer Staples | 16.4 | |||
Health Care | 9.7 | |||
Materials | 9.6 | |||
Industrials | 9.1 | |||
Consumer Discretionary | 6.3 | |||
Communication Services | 5.1 | |||
Utilities | 3.4 | |||
Real Estate | 1.3 | |||
Information Technology | 0.9 |
TEN LARGEST HOLDINGS
Security | Percent of Total Investments(a) | |||
HSBC Holdings PLC | 7.0% | |||
BP PLC | 6.2 | |||
Royal Dutch Shell PLC, Class A | 6.1 | |||
Royal Dutch Shell PLC, Class B | 5.1 | |||
AstraZeneca PLC | 4.5 | |||
GlaxoSmithKline PLC | 4.3 | |||
Diageo PLC | 4.1 | |||
British American Tobacco PLC | 3.6 | |||
Rio Tinto PLC | 2.9 | |||
Lloyds Banking Group PLC | 2.6 |
(a) | Excludes money market funds. |
F U N D S U M M A R Y | 5 |
Fund Summary as of February 28, 2019 | iShares® MSCI United Kingdom ETF |
Investment Objective
TheiShares 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.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||||||
6 Months | 1 Year | 5 Years | 10 Years | 1 Year | 5 Years | 10 Years | ||||||||||||||||||||||||||
Fund NAV | (0.88 | )% | (1.98 | )% | (0.67 | )% | 8.93 | % | (1.98 | )% | (3.31 | )% | 135.30 | % | ||||||||||||||||||
Fund Market | (0.89 | ) | (1.72 | ) | (0.73 | ) | 9.01 | (1.72 | ) | (3.62 | ) | 136.95 | ||||||||||||||||||||
Index | (0.61 | ) | (1.46 | ) | (0.17 | ) | 9.56 | (1.46 | ) | (0.84 | ) | 149.11 |
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.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
Beginning Account Value (09/01/18) | Ending Account Value (02/28/19) | Expenses Paid During the Period (a) | Beginning Account Value (09/01/18) | Ending Account Value (02/28/19) | Expenses Paid During the Period (a) | Annualized Expense Ratio | ||||||||||||||||||||||||
$ | 1,000.00 | $ | 991.20 | $ | 2.42 | $ | 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. |
Portfolio Information
ALLOCATION BY SECTOR
Sector | Percent of Total Investments(a) | |||
Financials | 20.7% | |||
Energy | 17.5 | |||
Consumer Staples | 16.4 | |||
Health Care | 9.7 | |||
Materials | 9.6 | |||
Industrials | 9.1 | |||
Consumer Discretionary | 6.3 | |||
Communication Services | 5.1 | |||
Utilities | 3.4 | |||
Real Estate | 1.3 | |||
Information Technology | 0.9 |
TEN LARGEST HOLDINGS
Security | Percent of Total Investments(a) | |||
HSBC Holdings PLC | 7.0% | |||
BP PLC | 6.2 | |||
Royal Dutch Shell PLC, Class A | 6.1 | |||
Royal Dutch Shell PLC, Class B | 5.1 | |||
AstraZeneca PLC | 4.5 | |||
GlaxoSmithKline PLC | 4.3 | |||
Diageo PLC | 4.1 | |||
British American Tobacco PLC | 3.6 | |||
Rio Tinto PLC | 2.9 | |||
Lloyds Banking Group PLC | 2.6 |
(a) | Excludes money market funds. |
6 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Fund Summary as of February 28, 2019 | iShares® MSCI United KingdomSmall-Cap ETF |
Investment Objective
TheiShares MSCI United KingdomSmall-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.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||||||
6 Months | 1 Year | 5 Years | Since Inception | 1 Year | 5 Years | Since Inception | ||||||||||||||||||||||||||
Fund NAV | (6.97 | )% | (5.75 | )% | 0.28 | % | 9.24 | % | (5.75 | )% | 1.39 | % | 87.24 | % | ||||||||||||||||||
Fund Market | (6.84 | ) | (5.73 | ) | 0.28 | 9.20 | (5.73 | ) | 1.38 | 86.71 | ||||||||||||||||||||||
Index | (6.76 | ) | (5.17 | ) | 0.86 | 9.90 | (5.17 | ) | 4.40 | 95.46 |
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.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
Beginning Account Value (09/01/18) | Ending Account Value (02/28/19) | Expenses Paid During the Period (a) | Beginning Account Value (09/01/18) | Ending Account Value (02/28/19) | Expenses Paid During the Period (a) | Annualized Expense Ratio | ||||||||||||||||||||||||
$ | 1,000.00 | $ | 930.30 | $ | 2.82 | $ | 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. |
Portfolio Information
ALLOCATION BY SECTOR
Sector | Percent of Total Investments(a) | |||
Industrials | 21.5% | |||
Consumer Discretionary | 19.5 | |||
Financials | 15.5 | |||
Real Estate | 9.7 | |||
Information Technology | 7.6 | |||
Materials | 7.3 | |||
Health Care | 5.7 | |||
Communication Services | 4.8 | |||
Consumer Staples | 4.0 | |||
Energy | 2.7 | |||
Utilities | 1.7 |
TEN LARGEST HOLDINGS
Security | Percent of Total Investments(a) | |||
Rentokil Initial PLC | 2.0% | |||
Halma PLC | 1.8 | |||
Ocado Group PLC | 1.8 | |||
Spirax-Sarco Engineering PLC | 1.5 | |||
Hiscox Ltd. | 1.4 | |||
DS Smith PLC | 1.4 | |||
Rightmove PLC | 1.3 | |||
Just Eat PLC | 1.2 | |||
Phoenix Group Holdings PLC | 1.1 | |||
Bellway PLC | 1.1 |
(a) | Excludes money market funds. |
F U N D S U M M A R Y | 7 |
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 recentmonth-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 ask on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not trade in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary market trading in shares of the fund, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.
As a shareholder of your Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested at the beginning of the period (or from the commencement of operations if less than 6 months) and held through the end of the period, is intended to help you understand your ongoing costs (in dollars and cents) of investing in your Fund and to compare these costs with the ongoing costs of investing in other funds.
Actual Expenses— The table provides information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. To estimate the expenses that you paid on your account over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During the Period.”
Hypothetical Example for Comparison Purposes— The table also provides information about hypothetical account values and hypothetical expenses based on your Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions 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 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) February 28, 2019 | iShares® Currency Hedged MSCI United Kingdom ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Investment Companies | ||||||||
Exchange-Traded Funds — 99.5% | ||||||||
iShares MSCI United Kingdom ETF(a) | 454,526 | $ | 14,803,912 | |||||
|
| |||||||
Total Investment Companies — 99.5% | ||||||||
(Cost: $15,743,242) | 14,803,912 | |||||||
|
| |||||||
Short-Term Investments | ||||||||
Money Market Funds — 0.1% | ||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 2.33%(a)(b) | 7,630 | 7,630 | ||||||
|
| |||||||
Total Short-Term Investments — 0.1% | ||||||||
(Cost: $7,630) | 7,630 | |||||||
|
| |||||||
Total Investments in Securities — 99.6% | ||||||||
(Cost: $15,750,872) | 14,811,542 | |||||||
Other Assets, Less Liabilities — 0.4% | 59,698 | |||||||
|
| |||||||
Net Assets — 100.0% | $ | 14,871,240 | ||||||
|
|
(a) | Affiliate of the Fund. |
(b) | Annualized7-day yield as ofperiod-end. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2019, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Affiliated Issuer | | Shares Held at 08/31/18 | | | Shares Purchased | | | Shares Sold | | | Shares Held at 02/28/19 | | | Value at 02/28/19 | | Income | | Net Realized | | Change in Unrealized Appreciation (Depreciation) | ||||||||||
BlackRock Cash Funds: Treasury, | 520,158 | — | (512,528 | )(b) | 7,630 | $ | 7,630 | $ | 644 | $ | — | $ — | ||||||||||||||||||
iShares MSCI United Kingdom ETF | 671,352 | 143,703 | (360,529 | ) | 454,526 | 14,803,912 | 298,995 | (195,097) | (311,480) | |||||||||||||||||||||
|
|
|
|
|
|
| ||||||||||||||||||||||||
$ | 14,811,542 | $ | 299,639 | $ | (195,097) | $ (311,480) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Net of purchases and sales. |
Forward Foreign Currency Exchange Contracts
Currency Purchased | Currency Sold | Counterparty | Settlement Date | Unrealized Appreciation (Depreciation) | ||||||||||||||||||||||
GBP | 1,030,000 | USD | 1,346,912 | MS | 03/04/19 | $ | 19,228 | |||||||||||||||||||
USD | 16,018,394 | GBP | 12,043,000 | MS | 03/04/19 | 45,165 | ||||||||||||||||||||
USD | 14,977,135 | GBP | 11,229,000 | MS | 04/02/19 | 61,192 | ||||||||||||||||||||
|
| |||||||||||||||||||||||||
125,585 | ||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||
GBP | 23,056,000 | USD | 30,685,993 | MS | 03/04/19 | (105,675 | ) | |||||||||||||||||||
USD | 15,801,866 | GBP | 12,043,000 | MS | 03/04/19 | (171,363 | ) | |||||||||||||||||||
GBP | 96,000 | USD | 127,578 | MS | 04/02/19 | (58 | ) | |||||||||||||||||||
|
| |||||||||||||||||||||||||
(277,096 | ) | |||||||||||||||||||||||||
|
| |||||||||||||||||||||||||
Net unrealized depreciation | $ | (151,511 | ) | |||||||||||||||||||||||
|
|
S C H E D U L E O F I N V E S T M E N T S | 9 |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® Currency Hedged MSCI United Kingdom ETF |
Derivative Financial Instruments Categorized by Risk Exposure
As of February 28, 2019, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:
Foreign Currency Exchange Contracts | ||
Assets — Derivative Financial Instruments | ||
Forward foreign currency exchange contracts | ||
Unrealized appreciation on forward foreign currency exchange contracts | $ 125,585 | |
| ||
Liabilities — Derivative Financial Instruments | ||
Forward foreign currency exchange contracts | ||
Unrealized depreciation on forward foreign currency exchange contracts | $ 277,096 | |
|
For the six months ended February 28, 2019, the effect of derivative financial instruments in the Statement of Operations was as follows:
Foreign Currency Exchange Contracts | ||
Net Realized Gain (Loss) from: | ||
Forward foreign currency exchange contracts | $ 191,634 | |
| ||
Net Change in Unrealized Appreciation (Depreciation) on: | ||
Forward foreign currency exchange contracts | $(352,430) | |
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Forward foreign currency exchange contracts: | ||||
Average amounts purchased — in USD | $ | 38,126,848 | ||
Average amounts sold — in USD | $ | 56,375,140 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Derivative Financial Instruments — Offsetting as of Period End
The Fund’s derivative assets and liabilities (by type) were as follows:
Assets | Liabilities | |||||||
Derivative Financial Instruments: | ||||||||
Forward foreign currency exchange contracts | $ | 125,585 | $ | 277,096 | ||||
|
|
|
| |||||
Total derivative assets and liabilities in the Statement of Assets and Liabilities | $ | 125,585 | $ | 277,096 | ||||
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”) | — | — | ||||||
|
|
|
| |||||
Total derivative assets and liabilities subject to an MNA | $ | 125,585 | $ | 277,096 | ||||
|
|
|
|
The following tables presents the Fund’s derivative assets and liabilities by counterparty net of amounts available for offset under an MNA and net of the related collateral received and pledged by the Fund:
| ||||||||||||
Counterparty | | Derivative Assets Subject to an MNA by Counterparty | | | Derivatives Available for Offset | (a) | | Net Amount of Derivative Assets |
| |||
| ||||||||||||
Morgan Stanley & Co. International PLC | $ | 125,585 | $ | (125,585 | ) | $ | — | |||||
|
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|
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|
| |||||||
| ||||||||||||
Counterparty | | Derivative Liabilities Subject to an MNA by | | | Derivatives Available for Offset | (a) | | Net Amount of Derivative Liabilities |
| |||
| ||||||||||||
Morgan Stanley & Co. International PLC | $ | 277,096 | $ | (125,585 | ) | $ | 151,511 | |||||
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|
|
10 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® Currency Hedged MSCI United Kingdom ETF |
(a) | The amount of derivatives available for offset is limited to the amount of derivatives assets and/or liabilities that are subject to an MNA. |
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, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2019. 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 | $ | 14,803,912 | $ | — | $ | — | $ | 14,803,912 | ||||||||
Money Market Funds | 7,630 | — | — | 7,630 | ||||||||||||
|
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|
|
|
|
|
| |||||||||
$ | 14,811,542 | $ | — | $ | — | $ | 14,811,542 | |||||||||
|
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|
|
|
|
| |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Assets | ||||||||||||||||
Forward Foreign Currency Exchange Contracts | $ | — | $ | 125,585 | $ | — | $ | 125,585 | ||||||||
Liabilities | ||||||||||||||||
Forward Foreign Currency Exchange Contracts | — | (277,096 | ) | — | (277,096 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | — | $ | (151,511 | ) | $ | — | $ | (151,511 | ) | |||||||
|
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|
|
|
|
|
|
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
S C H E D U L E OF I N V E S T M E N T S | 11 |
Schedule of Investments (unaudited) February 28, 2019 | iShares® MSCI United Kingdom ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Aerospace & Defense — 2.0% | ||||||||
BAE Systems PLC | 2,935,811 | $ | 18,196,942 | |||||
Meggitt PLC | 713,308 | 5,115,774 | ||||||
Rolls-Royce Holdings PLC | 1,556,568 | 19,772,239 | ||||||
|
| |||||||
43,084,955 | ||||||||
Air Freight & Logistics — 0.1% | ||||||||
Royal Mail PLC | 831,363 | 3,127,192 | ||||||
|
| |||||||
Airlines — 0.1% | ||||||||
easyJet PLC | 146,317 | 2,388,915 | ||||||
|
| |||||||
Banks — 12.8% | ||||||||
Barclays PLC | 15,721,054 | 34,326,806 | ||||||
HSBC Holdings PLC | 18,380,551 | 149,841,648 | ||||||
Lloyds Banking Group PLC | 65,299,937 | 55,187,963 | ||||||
Royal Bank of Scotland Group PLC | 4,422,504 | 15,629,467 | ||||||
Standard Chartered PLC | 2,579,823 | 20,643,443 | ||||||
|
| |||||||
275,629,327 | ||||||||
Beverages — 4.3% | ||||||||
Coca-Cola HBC AG(a) | 187,520 | 6,325,301 | ||||||
Diageo PLC | 2,228,669 | 86,366,434 | ||||||
|
| |||||||
92,691,735 | ||||||||
Capital Markets — 2.3% | ||||||||
3i Group PLC | 890,100 | 11,197,537 | ||||||
Hargreaves Lansdown PLC | 261,397 | 6,056,659 | ||||||
Investec PLC | 624,145 | 4,091,105 | ||||||
London Stock Exchange Group PLC | 287,510 | 17,235,540 | ||||||
Schroders PLC | 113,014 | 4,111,251 | ||||||
St. James’s Place PLC | 485,631 | 6,281,101 | ||||||
|
| |||||||
48,973,193 | ||||||||
Chemicals — 0.7% | ||||||||
Croda International PLC | 121,093 | 7,748,877 | ||||||
Johnson Matthey PLC | 177,433 | 7,299,594 | ||||||
|
| |||||||
15,048,471 | ||||||||
Commercial Services & Supplies — 0.3% | ||||||||
Babcock International Group PLC | 230,436 | 1,658,181 | ||||||
G4S PLC | 1,415,725 | 3,952,535 | ||||||
|
| |||||||
5,610,716 | ||||||||
Diversified Financial Services — 0.3% | ||||||||
Standard Life Aberdeen PLC | 2,287,670 | 7,508,184 | ||||||
|
| |||||||
Diversified Telecommunication Services — 1.0% | ||||||||
BT Group PLC | 7,739,637 | 22,102,278 | ||||||
|
| |||||||
Electric Utilities — 0.7% | ||||||||
SSE PLC | 941,550 | 14,884,250 | ||||||
|
| |||||||
Electrical Equipment — 0.5% | ||||||||
Melrose Industries PLC | 4,467,144 | 10,332,703 | ||||||
|
| |||||||
Energy Equipment & Services — 0.2% | ||||||||
John Wood Group PLC | 627,195 | 4,341,345 | ||||||
|
| |||||||
Equity Real Estate Investment Trusts (REITs) — 1.3% | ||||||||
British Land Co. PLC (The) | 853,309 | 6,857,589 | ||||||
Hammerson PLC | 712,998 | 3,619,886 | ||||||
Land Securities Group PLC | 680,088 | 8,137,649 | ||||||
Segro PLC | 991,499 | 8,717,222 | ||||||
|
| |||||||
27,332,346 |
Security | Shares | Value | ||||||
Food & Staples Retailing — 1.8% | ||||||||
J Sainsbury PLC | 1,618,033 | $ | 4,928,415 | |||||
Tesco PLC | 8,987,499 | 27,016,662 | ||||||
Wm Morrison Supermarkets PLC | 2,061,470 | 6,309,254 | ||||||
|
| |||||||
38,254,331 | ||||||||
Food Products — 0.5% | ||||||||
Associated British Foods PLC | 327,611 | 9,773,996 | ||||||
|
| |||||||
Health Care Equipment & Supplies — 0.8% | ||||||||
ConvaTec Group PLC(b) | 1,241,108 | 2,189,784 | ||||||
Smith & Nephew PLC | 802,515 | 15,333,566 | ||||||
|
| |||||||
17,523,350 | ||||||||
Health Care Providers & Services — 0.2% | ||||||||
NMC Health PLC | 95,602 | 3,438,413 | ||||||
|
| |||||||
Hotels, Restaurants & Leisure — 3.4% | ||||||||
Carnival PLC | 156,330 | 8,766,522 | ||||||
Compass Group PLC | 1,455,337 | 32,230,141 | ||||||
GVC Holdings PLC | 509,549 | 4,449,437 | ||||||
InterContinental Hotels Group PLC | 157,411 | 9,441,649 | ||||||
Merlin Entertainments PLC(b) | 649,243 | 3,122,627 | ||||||
TUIAG | 403,783 | 4,297,649 | ||||||
Whitbread PLC | 168,599 | 10,883,026 | ||||||
|
| |||||||
73,191,051 | ||||||||
Household Durables — 1.4% | ||||||||
Barratt Developments PLC | 929,217 | 7,403,351 | ||||||
Berkeley Group Holdings PLC | 112,620 | 5,916,938 | ||||||
Persimmon PLC | 289,849 | 9,379,902 | ||||||
Taylor Wimpey PLC | 3,004,285 | 7,248,745 | ||||||
|
| |||||||
29,948,936 | ||||||||
Household Products — 2.2% | ||||||||
Reckitt Benckiser Group PLC | 616,656 | 47,301,761 | ||||||
|
| |||||||
Industrial Conglomerates — 0.7% | ||||||||
DCC PLC | 89,950 | 7,806,675 | ||||||
Smiths Group PLC | 362,822 | 6,903,445 | ||||||
|
| |||||||
14,710,120 | ||||||||
Insurance — 5.1% | ||||||||
Admiral Group PLC | 186,485 | 5,412,315 | ||||||
Aviva PLC | 3,579,447 | 20,148,652 | ||||||
Direct Line Insurance Group PLC | 1,255,538 | 5,956,860 | ||||||
Legal & General Group PLC | 5,469,812 | 20,414,768 | ||||||
Prudential PLC | 2,378,759 | 50,307,410 | ||||||
RSA Insurance Group PLC | 941,719 | 6,400,687 | ||||||
|
| |||||||
108,640,692 | ||||||||
Interactive Media & Services — 0.3% | ||||||||
Auto Trader Group PLC(b) | 862,880 | 5,459,689 | ||||||
|
| |||||||
Machinery — 0.2% | ||||||||
Weir Group PLC(The) | 227,017 | 4,952,068 | ||||||
|
| |||||||
Media — 1.7% | ||||||||
Informa PLC | 1,145,382 | 10,743,531 | ||||||
ITV PLC | 3,323,971 | 5,796,213 | ||||||
Pearson PLC | 714,862 | 8,044,091 | ||||||
WPP PLC | 1,157,860 | 12,717,897 | ||||||
|
| |||||||
37,301,732 | ||||||||
Metals & Mining — 8.4% | ||||||||
Anglo American PLC | 966,968 | 25,768,304 | ||||||
Antofagasta PLC | 358,643 | 4,468,828 | ||||||
BHP Group PLC . | 1,938,278 | 45,013,699 |
12 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI United Kingdom ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Metals & Mining (continued) | ||||||||
Fresnillo PLC | 202,249 | $ | 2,313,499 | |||||
Glencore PLC | 10,339,908 | 41,802,592 | ||||||
Rio Tinto PLC | 1,061,316 | 61,209,436 | ||||||
|
| |||||||
180,576,358 | ||||||||
Multi-Utilities — 2.0% | ||||||||
Centrica PLC | 5,225,538 | 8,653,359 | ||||||
National Grid PLC | 3,118,999 | 35,175,823 | ||||||
|
| |||||||
43,829,182 | ||||||||
Multiline Retail — 0.7% | ||||||||
Marks & Spencer Group PLC | 1,491,576 | 5,416,172 | ||||||
Next PLC | 127,806 | 8,649,335 | ||||||
|
| |||||||
14,065,507 | ||||||||
Oil, Gas & Consumable Fuels — 17.2% | ||||||||
BP PLC | 18,403,008 | 130,809,612 | ||||||
Royal Dutch Shell PLC, Class A | 4,138,925 | 129,344,331 | ||||||
Royal Dutch Shell PLC, Class B | 3,437,163 | 108,099,538 | ||||||
|
| |||||||
368,253,481 | ||||||||
Paper & Forest Products — 0.4% | ||||||||
Mondi PLC | 336,592 | 7,738,514 | ||||||
|
| |||||||
Personal Products — 2.5% | ||||||||
Unilever PLC | 1,019,840 | 54,368,099 | ||||||
|
| |||||||
Pharmaceuticals — 8.6% | ||||||||
AstraZeneca PLC | 1,162,554 | 94,928,181 | ||||||
GlaxoSmithKline PLC | 4,552,876 | 90,679,276 | ||||||
|
| |||||||
185,607,457 | ||||||||
Professional Services — 3.4% | ||||||||
Experian PLC | 838,438 | 21,897,082 | ||||||
Intertek Group PLC | 148,412 | 10,039,909 | ||||||
RELX PLC | 1,809,352 | 41,610,454 | ||||||
|
| |||||||
73,547,445 | ||||||||
Software — 0.9% | ||||||||
Micro Focus International PLC | 391,229 | 9,738,796 | ||||||
Sage Group PLC(The) | 997,683 | 8,771,592 | ||||||
|
| |||||||
18,510,388 | ||||||||
Specialty Retail — 0.3% | ||||||||
Kingfisher PLC | 1,953,899 | 6,291,892 | ||||||
|
| |||||||
Textiles, Apparel & Luxury Goods — 0.4% | ||||||||
Burberry Group PLC | 378,631 | 9,515,847 | ||||||
|
|
Security | Shares | Value | ||||||
Tobacco — 5.0% | ||||||||
British American Tobacco PLC | 2,104,978 | $ | 77,233,362 | |||||
Imperial Brands PLC | 875,251 | 29,226,529 | ||||||
|
| |||||||
106,459,891 | ||||||||
Trading Companies & Distributors — 1.7% | ||||||||
Ashtead Group PLC | 443,932 | 11,827,196 | ||||||
Bunzl PLC | 308,254 | 9,729,507 | ||||||
Ferguson PLC | 212,735 | 14,773,284 | ||||||
|
| |||||||
36,329,987 | ||||||||
Water Utilities — 0.6% | ||||||||
Severn Trent PLC. | 216,511 | 5,814,343 | ||||||
United Utilities Group PLC | 622,586 | 6,957,712 | ||||||
|
| |||||||
12,772,055 | ||||||||
Wireless Telecommunication Services — 2.0% | ||||||||
Vodafone Group PLC | 24,520,609 | 43,795,247 | ||||||
|
| |||||||
Total Common Stocks — 99.0% | ||||||||
(Cost: $2,570,624,690) | 2,125,213,099 | |||||||
|
| |||||||
Short-Term Investments | ||||||||
Money Market Funds — 0.1% | ||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 2.33%(c)(d) | 1,363,199 | 1,363,199 | ||||||
|
| |||||||
Total Short-Term Investments — 0.1% | ||||||||
(Cost: $1,363,199) | 1,363,199 | |||||||
|
| |||||||
Total Investments in Securities — 99.1% | ||||||||
(Cost: $2,571,987,889) | 2,126,576,298 | |||||||
Other Assets, Less Liabilities — 0.9% | 19,199,737 | |||||||
|
| |||||||
Net Assets — 100.0% | $ | 2,145,776,035 | ||||||
|
|
(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) | Annualized7-day yield as ofperiod-end. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2019, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
| ||||||||||||||||||||||||||||
Affiliated Issuer | | Shares Held at 08/31/18 | | Net Activity | | Shares Held at 02/28/19 | | | Value at 02/28/19 | | Income | | Net Realized Gain (Loss) | (a) | | Change in Unrealized Appreciation (Depreciation) |
| |||||||||||
| ||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | — | — | — | $ | — | $ | 1,815 | (b) | $ | — | $ | — | ||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 644,144 | 719,055 | 1,363,199 | 1,363,199 | 16,779 | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
$ | 1,363,199 | $ | 18,594 | $ | — | $ | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Includes 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, and less fees paid to BTC as securities lending agent. |
S C H E D U L E O F I N V E S T M E N T S | 13 |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI United Kingdom ETF |
Futures Contracts
Description | Number of Contracts | Expiration Date | Notional Amount (000) | Value/ Unrealized Appreciation (Depreciation) | ||||||||||
Long Contracts | ||||||||||||||
FTSE100 Index | 213 | 03/15/19 | $20,046 | $ | 188,372 | |||||||||
|
|
Derivative Financial Instruments Categorized by Risk Exposure
As of February 28, 2019, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:
Equity Contracts | ||||
Assets — Derivative Financial Instruments | ||||
Futures contracts | ||||
Net unrealized appreciation(a) | $ | 188,372 | ||
|
|
(a) | Represents cumulative appreciation (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. |
For the six months ended February 28, 2019, the effect of derivative financial instruments in the Statement of Operations was as follows:
Equity Contracts | ||||
Net Realized Gain (Loss) from: | ||||
Futures contracts | $ | (1,183,415 | ) | |
|
| |||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Futures contracts | $ | 729,028 | ||
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: | ||||
Average notional value of contracts — long | $ | 17,534,219 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
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, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2019. 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 | $ | 2,125,213,099 | $ | — | $ | — | $ | 2,125,213,099 | ||||||||
Money Market Funds | 1,363,199 | — | — | 1,363,199 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 2,126,576,298 | $ | — | $ | — | $ | 2,126,576,298 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $ | 188,372 | $ | — | $ | — | $ | 188,372 | ||||||||
|
|
|
|
|
|
|
|
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
14 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) February 28, 2019 | iShares® MSCI United Kingdom Small-Cap ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
| |||||||
Aerospace & Defense — 2.1% | ||||||||
Chemring Group PLC | 43,475 | $ | 86,739 | |||||
Cobham PLC(a) | 373,112 | 583,869 | ||||||
QinetiQ Group PLC | 88,748 | 362,158 | ||||||
Senior PLC | 65,324 | 198,973 | ||||||
Ultra Electronics Holdings PLC | 11,325 | 186,786 | ||||||
|
| |||||||
1,418,525 | ||||||||
Airlines — 0.4% | ||||||||
Dart Group PLC | 15,108 | 161,666 | ||||||
Stobart Group Ltd. | 49,893 | 100,473 | ||||||
|
| |||||||
262,139 | ||||||||
Banks — 1.2% | ||||||||
Bank of Georgia Group PLC | 5,926 | 132,011 | ||||||
CYBG PLC | 200,327 | 523,317 | ||||||
Metro Bank PLC(a)(b) | 13,652 | 161,520 | ||||||
|
| |||||||
816,848 | ||||||||
Beverages — 1.7% | ||||||||
Britvic PLC | 41,284 | 504,640 | ||||||
Fevertree Drinks PLC | 15,402 | 548,621 | ||||||
Stock Spirits Group PLC | 27,811 | 84,895 | ||||||
|
| |||||||
1,138,156 | ||||||||
Biotechnology — 1.2% | ||||||||
Abcam PLC | 28,792 | 492,107 | ||||||
Genus PLC | 9,576 | 278,941 | ||||||
Oxford Biomedica PLC(a) | 7,649 | 68,115 | ||||||
|
| |||||||
839,163 | ||||||||
Building Products — 0.2% | ||||||||
Polypipe Group PLC | 31,269 | 172,852 | ||||||
|
| |||||||
Capital Markets — 7.7% | ||||||||
Ashmore Group PLC | 61,075 | 342,815 | ||||||
Brewin Dolphin Holdings PLC | 44,311 | 185,066 | ||||||
Burford Capital Ltd. | 32,362 | 761,891 | ||||||
Close Brothers Group PLC | 23,568 | 473,352 | ||||||
CMC Markets PLC(c) | 18,378 | 20,411 | ||||||
Georgia Capital PLC(a) | 6,035 | 88,459 | ||||||
IG Group Holdings PLC | 57,562 | 432,200 | ||||||
IntegraFin Holdings PLC | 31,087 | 147,243 | ||||||
Intermediate Capital Group PLC | 45,204 | 630,119 | ||||||
Jupiter Fund Management PLC | 67,698 | 304,983 | ||||||
Man Group PLC | 244,029 | 448,412 | ||||||
Numis Corp. PLC | 10,909 | 37,726 | ||||||
P2P Global Investments PLC/Fund | 11,925 | 129,112 | ||||||
Quilter PLC(c) | 296,124 | 511,958 | ||||||
Rathbone Brothers PLC | 7,739 | 237,166 | ||||||
Sanne Group PLC | 21,527 | 147,460 | ||||||
TP ICAP PLC | 87,696 | 370,113 | ||||||
|
| |||||||
5,268,486 | ||||||||
Chemicals — 1.9% | ||||||||
Elementis PLC | 90,325 | 215,654 | ||||||
Essentra PLC | 40,953 | 205,249 | ||||||
Scapa Group PLC | 21,468 | 84,407 | ||||||
Sirius Minerals PLC(a)(b) | 672,643 | 178,757 | ||||||
Synthomer PLC | 42,354 | 214,299 | ||||||
Victrex PLC | 13,411 | 418,479 | ||||||
|
| |||||||
1,316,845 | ||||||||
Commercial Services & Supplies — 5.0% | ||||||||
Aggreko PLC | 39,870 | 380,021 |
Security | Shares | Value | ||||||
Commercial Services & Supplies (continued) | ||||||||
Biffa PLC(c) | 36,863 | $ | 88,159 | |||||
De La Rue PLC | 16,176 | 91,227 | ||||||
HomeServe PLC | 46,599 | 590,682 | ||||||
IWG PLC | 104,799 | 321,022 | ||||||
Mitie Group PLC | 57,557 | 98,681 | ||||||
Renewi PLC | 125,709 | 42,052 | ||||||
Rentokil Initial PLC | 287,496 | 1,342,219 | ||||||
Restore PLC | 17,298 | 65,573 | ||||||
RPS Group PLC | 34,884 | 85,839 | ||||||
Serco Group PLC(a) | 171,056 | 294,185 | ||||||
|
| |||||||
3,399,660 | ||||||||
Construction & Engineering — 2.1% | ||||||||
Balfour Beatty PLC | 107,734 | 412,695 | ||||||
Costain Group PLC | 16,521 | 81,745 | ||||||
Galliford Try PLC | 17,365 | 170,804 | ||||||
John Laing Group PLC(c) | 76,377 | 390,102 | ||||||
Keller Group PLC | 11,318 | 79,787 | ||||||
Kier Group PLC(b) | 25,354 | 175,867 | ||||||
Morgan Sindall Group PLC | 5,974 | 106,159 | ||||||
|
| |||||||
1,417,159 | ||||||||
Construction Materials — 1.1% | ||||||||
Forterra PLC(c) | 31,117 | 116,923 | ||||||
Ibstock PLC(c) | 63,318 | 212,401 | ||||||
Marshalls PLC | 31,131 | 224,635 | ||||||
Rhi Magnesita NV | 3,491 | 204,866 | ||||||
|
| |||||||
758,825 | ||||||||
Consumer Finance — 0.8% | ||||||||
Amigo Holdings PLC(b)(c) | 18,701 | 58,094 | ||||||
Arrow Global Group PLC | 25,960 | 66,987 | ||||||
International Personal Finance PLC | 34,709 | 92,702 | ||||||
Provident Financial PLC(a) | 39,451 | 315,892 | ||||||
|
| |||||||
533,675 | ||||||||
Containers & Packaging — 2.4% | ||||||||
DS Smith PLC | 213,325 | 951,960 | ||||||
RPC Group PLC | 63,323 | 667,069 | ||||||
|
| |||||||
1,619,029 | ||||||||
Distributors — 0.8% | ||||||||
Inchcape PLC | 64,770 | 486,751 | ||||||
John Menzies PLC | 12,340 | 94,377 | ||||||
|
| |||||||
581,128 | ||||||||
Diversified Consumer Services — 0.3% | ||||||||
AA PLC | 94,937 | 113,901 | ||||||
Dignity PLC | 7,855 | 76,897 | ||||||
|
| |||||||
190,798 | ||||||||
Diversified Financial Services — 0.2% | ||||||||
Plus500 Ltd. | 12,425 | 130,146 | ||||||
|
| |||||||
Diversified Telecommunication Services — 0.9% | ||||||||
Inmarsat PLC | 72,118 | 383,505 | ||||||
KCOM Group PLC | 73,115 | 69,534 | ||||||
TalkTalk Telecom Group PLC(b) | 107,697 | 143,677 | ||||||
|
| |||||||
596,716 | ||||||||
Electronic Equipment, Instruments & Components — 4.2% | ||||||||
accesso Technology Group PLC(a)(b) | 3,978 | 44,657 | ||||||
Electrocomponents PLC | 69,058 | 508,688 | ||||||
Halma PLC | 59,149 | 1,222,595 | ||||||
Renishaw PLC | 5,670 | 319,767 | ||||||
Smart Metering Systems PLC | 15,701 | 132,404 |
S C H E D U L E O F I N V E S T M E N T S | 15 |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI United Kingdom Small-Cap ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Electronic Equipment, Instruments & Components (continued) | ||||||||
Spectris PLC | 17,997 | $ | 631,719 | |||||
|
| |||||||
2,859,830 | ||||||||
Energy Equipment & Services — 0.6% | ||||||||
Hunting PLC | 21,877 | 159,315 | ||||||
Petrofac Ltd. | 40,398 | 229,871 | ||||||
|
| |||||||
389,186 | ||||||||
Entertainment — 1.3% | ||||||||
Cineworld Group PLC | 149,789 | 555,864 | ||||||
Entertainment One Ltd. | 57,647 | 322,347 | ||||||
Frontier Developments PLC(a)(b) | 3,035 | 36,332 | ||||||
|
| |||||||
914,543 | ||||||||
Equity Real Estate Investment Trusts (REITs) — 7.5% | ||||||||
Assura PLC | 373,858 | 286,924 | ||||||
Big Yellow Group PLC | 24,668 | 321,711 | ||||||
Capital & Regional PLC | 67,327 | 28,254 | ||||||
Civitas Social Housing PLC | 96,979 | 126,670 | ||||||
Derwent London PLC | 16,510 | 717,212 | ||||||
Empiric Student Property PLC | 93,731 | 120,433 | ||||||
GCP Student Living PLC | 63,968 | 129,498 | ||||||
Great Portland Estates PLC | 39,453 | 399,766 | ||||||
Hansteen Holdings PLC | 64,128 | 83,591 | ||||||
Intu Properties PLC(b) | 137,517 | 210,531 | ||||||
LondonMetric Property PLC | 108,795 | 278,563 | ||||||
NewRiver REIT PLC | 47,090 | 137,169 | ||||||
Primary Health Properties PLC | 115,063 | 188,246 | ||||||
RDI REIT PLC | 44,871 | 82,064 | ||||||
Regional REIT Ltd.(c) | 49,948 | 67,499 | ||||||
Safestore Holdings PLC | 32,761 | 266,899 | ||||||
Schroder REIT Ltd. | 80,067 | 61,342 | ||||||
Shaftesbury PLC | 26,401 | 309,196 | ||||||
Standard Life Investment Property Income | 60,673 | 70,614 | ||||||
Tritax Big Box REIT PLC | 259,817 | 491,764 | ||||||
UNITE Group PLC (The) | 41,097 | 500,441 | ||||||
Workspace Group PLC | 21,051 | 274,819 | ||||||
|
| |||||||
5,153,206 | ||||||||
Food & Staples Retailing — 0.0% | ||||||||
Majestic Wine PLC | 8,583 | 33,507 | ||||||
|
| |||||||
Food Products — 2.1% | ||||||||
Bakkavor Group PLC(c) | 22,686 | 43,753 | ||||||
Cranswick PLC | 8,022 | 263,764 | ||||||
Dairy Crest Group PLC | 24,131 | 202,209 | ||||||
Greencore Group PLC | 69,184 | 180,363 | ||||||
Hotel Chocolat Group Ltd. | 6,171 | 26,266 | ||||||
Premier Foods PLC(a)(b) | 98,499 | 51,554 | ||||||
Tate & Lyle PLC | 72,877 | 673,689 | ||||||
|
| |||||||
1,441,598 | ||||||||
Health Care Equipment & Supplies — 0.2% | ||||||||
Advanced Medical Solutions Group PLC | 29,894 | 121,274 | ||||||
|
| |||||||
Health Care Providers & Services — 1.0% | ||||||||
CVS Group PLC(b) | 10,366 | 65,437 | ||||||
Mediclinic International PLC | 63,144 | 266,998 | ||||||
Spire Healthcare Group PLC(c) | 44,182 | 74,927 | ||||||
UDG Healthcare PLC | 38,723 | 297,959 | ||||||
|
| |||||||
705,321 | ||||||||
Health Care Technology — 0.1% | ||||||||
EMIS Group PLC | 8,350 | 105,510 | ||||||
|
|
Security | Shares | Value | ||||||
Hotels, Restaurants & Leisure — 4.9% | ||||||||
888 Holdings PLC | 55,803 | $ | 131,450 | |||||
Domino’s Pizza Group PLC | 73,448 | 228,211 | ||||||
EI Group PLC(a) | 72,773 | 196,011 | ||||||
Greene King PLC | 48,418 | 425,045 | ||||||
Greggs PLC | 15,805 | 376,298 | ||||||
J D Wetherspoon PLC(b) | 10,685 | 186,463 | ||||||
JPJ Group PLC(a) | 9,346 | 87,888 | ||||||
Marston’s PLC | 98,385 | 129,292 | ||||||
Mitchells & Butlers PLC(a) | 33,506 | 127,816 | ||||||
Patisserie Holdings PLC(a)(d) | 6,053 | — | ||||||
Playtech PLC | 46,943 | 263,742 | ||||||
Restaurant Group PLC (The) | 76,954 | 129,686 | ||||||
SSP Group PLC | 72,384 | 639,286 | ||||||
Thomas Cook Group PLC | 217,199 | 87,709 | ||||||
William Hill PLC | 133,952 | 334,157 | ||||||
|
| |||||||
3,343,054 | ||||||||
Household Durables — 3.3% | ||||||||
Bellway PLC | 19,152 | 770,591 | ||||||
Bovis Homes Group PLC | 20,977 | 301,755 | ||||||
Countryside Properties PLC(c) | 63,055 | 273,414 | ||||||
Crest Nicholson Holdings PLC | 40,009 | 207,968 | ||||||
DFS Furniture PLC | 32,877 | 99,922 | ||||||
IG Design Group PLC | 7,217 | 52,988 | ||||||
McCarthy & Stone PLC(c) | 70,900 | 116,560 | ||||||
Redrow PLC | 37,405 | 309,709 | ||||||
Telford Homes PLC | 10,016 | 37,103 | ||||||
Victoria PLC(a)(b) | 15,657 | 70,598 | ||||||
|
| |||||||
2,240,608 | ||||||||
Household Products — 0.2% | ||||||||
PZ Cussons PLC | 43,687 | 110,754 | ||||||
|
| |||||||
Independent Power and Renewable Electricity Producers — 0.4% | ||||||||
Drax Group PLC | 61,593 | 298,862 | ||||||
|
| |||||||
Insurance — 4.9% | ||||||||
Beazley PLC | 82,310 | 599,406 | ||||||
Hastings Group Holdings PLC(c) | 51,434 | 153,107 | ||||||
Hiscox Ltd. | 44,841 | 953,692 | ||||||
Just Group PLC | 146,687 | 201,157 | ||||||
Lancashire Holdings Ltd. | 29,857 | 263,097 | ||||||
Phoenix Group Holdings PLC | 84,271 | 783,501 | ||||||
Sabre Insurance Group PLC(c) | 36,932 | 132,142 | ||||||
Saga PLC | 174,721 | 281,432 | ||||||
|
| |||||||
3,367,534 | ||||||||
Interactive Media & Services — 1.3% | ||||||||
Rightmove PLC | 139,499 | 894,525 | ||||||
|
| |||||||
Internet & Direct Marketing Retail — 4.8% | ||||||||
AO World PLC(a)(b) | 35,498 | 47,594 | ||||||
ASOS PLC(a)(b) | 8,490 | 360,910 | ||||||
boohoo Group PLC(a) | 116,359 | 271,156 | ||||||
Gocompare.Com Group PLC | 49,465 | 43,161 | ||||||
Just Eat PLC(a) | 84,932 | 843,194 | ||||||
Moneysupermarket.com Group PLC | 83,455 | 382,629 | ||||||
N Brown Group PLC | 24,551 | 33,112 | ||||||
Ocado Group PLC(a) | 87,087 | 1,198,307 | ||||||
On the Beach Group PLC(c) | 17,278 | 96,177 | ||||||
|
| |||||||
3,276,240 | ||||||||
IT Services — 1.3% | ||||||||
Computacenter PLC | 11,598 | 171,234 |
16 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI United Kingdom Small-Cap ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
IT Services (continued) | ||||||||
Equiniti Group PLC(c) | 56,990 | $ | 151,984 | |||||
First Derivatives PLC(b) | 2,615 | 76,173 | ||||||
iomart Group PLC | 12,826 | 65,339 | ||||||
Kainos Group PLC | 10,242 | 67,161 | ||||||
Keywords Studios PLC(b) | 8,380 | 124,838 | ||||||
NCC Group PLC | 43,128 | 70,558 | ||||||
SafeCharge International Group Ltd | 6,906 | 25,261 | ||||||
Softcat PLC | 16,986 | 171,256 | ||||||
|
| |||||||
923,804 | ||||||||
Leisure Products— 0.4% | ||||||||
Games Workshop Group PLC | 4,801 | 199,876 | ||||||
Photo-Me International PLC | 41,545 | 52,662 | ||||||
|
| |||||||
252,538 | ||||||||
Life Sciences Tools & Services— 0.3% | ||||||||
Clinigen Healthcare Ltd.(a) | 18,536 | 235,823 | ||||||
|
| |||||||
Machinery— 4.0% | ||||||||
Bodycote PLC | 29,803 | 300,875 | ||||||
IMI PLC | 42,340 | 532,754 | ||||||
Morgan Advanced Materials PLC | 40,306 | 138,316 | ||||||
Rotork PLC | 135,532 | 512,871 | ||||||
Spirax-Sarco Engineering PLC | 11,461 | 1,016,031 | ||||||
Vesuvius PLC | 33,793 | 273,060 | ||||||
|
| |||||||
2,773,907 | ||||||||
Media— 1.3% | ||||||||
Ascential PLC | 59,261 | 289,911 | ||||||
Daily Mail & General Trust PLC, Class A, NVS | 44,639 | 379,402 | ||||||
Future PLC | 12,652 | 115,443 | ||||||
ITE Group PLC | 115,054 | 103,604 | ||||||
|
| |||||||
888,360 | ||||||||
Metals & Mining— 1.9% | ||||||||
Acacia Mining PLC(a) | 25,764 | 74,089 | ||||||
Centamin PLC | 180,442 | 218,933 | ||||||
Central Asia Metals PLC(b) | 26,112 | 87,176 | ||||||
Ferrexpo PLC | 46,045 | 159,174 | ||||||
Hill & Smith Holdings PLC | 12,332 | 193,553 | ||||||
Hochschild Mining PLC | 39,915 | 105,333 | ||||||
KAZ Minerals PLC | 38,369 | 338,462 | ||||||
Petra Diamonds Ltd.(a) | 133,721 | 39,557 | ||||||
SolGold PLC(a) | 129,446 | 64,824 | ||||||
|
| |||||||
1,281,101 | ||||||||
Multi-Utilities— 0.3% | ||||||||
Telecom Plus PLC | 9,751 | 183,652 | ||||||
|
| |||||||
Multiline Retail— 1.0% | ||||||||
B&M European Value Retail SA | 140,437 | 660,321 | ||||||
|
| |||||||
Oil, Gas & Consumable Fuels— 2.2% | ||||||||
Cairn Energy PLC(a) | 91,859 | 248,029 | ||||||
EnQuest PLC(a) | 253,101 | 65,445 | ||||||
Gulf Keystone Petroleum Ltd.(a) | 35,585 | 108,153 | ||||||
Hurricane Energy PLC(a)(b) | 230,268 | 131,945 | ||||||
Nostrum Oil & Gas PLC(a) | 14,609 | 19,392 | ||||||
Ophir Energy PLC(a) | 110,845 | 81,531 | ||||||
Premier Oil PLC(a)(b) | 127,129 | 125,468 | ||||||
Soco International PLC | 31,049 | 27,092 | ||||||
Sound Energy PLC(a) | 115,512 | 36,106 | ||||||
Tullow Oil PLC(a) | 216,849 | 635,990 | ||||||
|
| |||||||
1,479,151 |
Security | Shares | Value | ||||||
Pharmaceuticals— 2.7% | ||||||||
Alliance Pharma PLC | 60,809 | $ | 53,706 | |||||
BTG PLC(a) | 48,310 | 535,262 | ||||||
Dechra Pharmaceuticals PLC | 15,970 | 525,095 | ||||||
Hikma Pharmaceuticals PLC | 22,610 | 501,778 | ||||||
Indivior PLC(a) | 113,998 | 162,849 | ||||||
Vectura Group PLC(a) | 92,875 | 96,788 | ||||||
|
| |||||||
1,875,478 | ||||||||
Professional Services— 2.0% | ||||||||
Capita PLC(a) | 260,616 | 429,840 | ||||||
Hays PLC | 214,657 | 433,983 | ||||||
Pagegroup PLC | 51,044 | 305,793 | ||||||
RWS Holdings PLC | 27,796 | 174,505 | ||||||
Staffline Group PLC(d) | 2,111 | 18,813 | ||||||
|
| |||||||
1,362,934 | ||||||||
Real Estate Management & Development— 2.1% | ||||||||
Capital & Counties Properties PLC | 112,533 | 382,732 | ||||||
Grainger PLC | 95,240 | 312,897 | ||||||
Helical PLC | 16,001 | 72,362 | ||||||
Purplebricks Group PLC(a)(b) | 32,677 | 61,718 | ||||||
Savills PLC | 22,210 | 263,215 | ||||||
Sirius Real Estate Ltd. | 140,760 | 112,335 | ||||||
St. Modwen Properties PLC | 29,444 | 159,395 | ||||||
Watkin Jones PLC | 25,948 | 75,412 | ||||||
|
| |||||||
1,440,066 | ||||||||
Road & Rail— 1.7% | ||||||||
Firstgroup PLC(a) | 188,780 | 224,355 | ||||||
Go-Ahead Group PLC (The) | 6,744 | 183,351 | ||||||
National Express Group PLC | 71,655 | 404,489 | ||||||
Northgate PLC | 20,976 | 101,947 | ||||||
Redde PLC | 47,845 | 98,003 | ||||||
Stagecoach Group PLC | 67,330 | 142,752 | ||||||
|
| |||||||
1,154,897 | ||||||||
Semiconductors & Semiconductor Equipment— 0.2% | ||||||||
IQE PLC(a)(b) | 114,938 | 138,967 | ||||||
|
| |||||||
Software— 1.8% | ||||||||
Alfa Financial Software Holdings PLC(a)(c) | 14,076 | 22,954 | ||||||
Avast PLC(a)(c) | 44,569 | 182,912 | ||||||
AVEVA Group PLC | 10,035 | 401,761 | ||||||
Blue Prism Group PLC(a) | 9,470 | 182,643 | ||||||
GB Group PLC | 28,462 | 185,312 | ||||||
Learning Technologies Group PLC(b) | 62,879 | 57,876 | ||||||
Sophos Group PLC(c) | 51,744 | 225,607 | ||||||
|
| |||||||
1,259,065 | ||||||||
Specialty Retail— 3.5% | ||||||||
BCA Marketplace PLC | 117,931 | 319,210 | ||||||
Card Factory PLC | 50,371 | 130,781 | ||||||
Dixons Carphone PLC | 153,530 | 271,089 | ||||||
Dunelm Group PLC | 15,795 | 175,845 | ||||||
Halfords Group PLC | 30,919 | 97,303 | ||||||
JD Sports Fashion PLC | 68,402 | 423,701 | ||||||
Lookers PLC | 48,671 | 66,420 | ||||||
Pendragon PLC | 218,353 | 73,189 | ||||||
Pets at Home Group PLC | 77,605 | 156,279 | ||||||
Sports Direct International PLC(a) | 33,639 | 120,717 | ||||||
Superdry PLC | 8,365 | 57,634 | ||||||
WH Smith PLC | 16,895 | 471,464 | ||||||
|
| |||||||
2,363,632 |
S C H E D U L E O F I N V E S T M E N T S | 17 |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI United Kingdom Small-Cap ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Textiles, Apparel & Luxury Goods— 0.5% | ||||||||
Coats Group PLC | 222,268 | $ | 261,936 | |||||
Ted Baker PLC | 4,540 | 110,266 | ||||||
|
| |||||||
372,202 | ||||||||
Thrifts & Mortgage Finance— 0.7% | ||||||||
Charter Court Financial Services Group PLC(c) | 18,836 | 77,717 | ||||||
OneSavings Bank PLC | 34,378 | 179,429 | ||||||
Paragon Banking Group PLC | 40,600 | 234,585 | ||||||
|
| |||||||
491,731 | ||||||||
Trading Companies & Distributors— 3.3% | ||||||||
Diploma PLC | 17,625 | 316,950 | ||||||
Grafton Group PLC | 37,009 | 393,313 | ||||||
Howden Joinery Group PLC | 94,969 | 622,370 | ||||||
SIG PLC | 87,227 | 145,258 | ||||||
Travis Perkins PLC | 39,327 | 751,155 | ||||||
|
| |||||||
2,229,046 | ||||||||
Transportation Infrastructure— 0.8% | ||||||||
BBA Aviation PLC | 160,721 | 520,328 | ||||||
|
| |||||||
Water Utilities— 1.0% | ||||||||
Pennon Group PLC | 65,314 | 675,881 | ||||||
|
| |||||||
Total Common Stocks— 99.8% (Cost: $71,456,020) | 68,278,586 | |||||||
|
| |||||||
Short-Term Investments | ||||||||
Money Market Funds— 2.6% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 2.62%(e)(f)(g) | 1,726,988 | 1,727,679 |
Security | Shares | Value | ||||||
Money Market Funds (continued) | ||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 2.33%(e)(f) | 29,920 | $ | 29,920 | |||||
|
| |||||||
1,757,599 | ||||||||
|
| |||||||
Total Short-Term Investments— 2.6% (Cost: $1,757,237) | 1,757,599 | |||||||
|
| |||||||
Total Investments in Securities— 102.4% (Cost: $73,213,257) | 70,036,185 | |||||||
Other Assets, Less Liabilities— (2.4)% | (1,652,738 | ) | ||||||
|
| |||||||
Net Assets— 100.0% | $ | 68,383,447 | ||||||
|
|
(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) | Annualized7-day yield as ofperiod-end. |
(g) | All or a portion of this security was purchased with cash collateral received from loaned securities. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2019, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
| ||||||||||||||||||||||||||||
Affiliated Issuer | | Shares Held at 08/31/18 | | Net Activity | | Shares Held at 02/28/19 | | | Value at 02/28/19 | | Income | | Net Realized Gain (Loss) | (a) | | Change in Unrealized Appreciation (Depreciation) |
| |||||||||||
| ||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | 1,877,006 | (150,018 | ) | 1,726,988 | $ | 1,727,679 | $ | 30,846 | (b) | $ | 60 | $ | 250 | |||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 59,068 | (29,148 | ) | 29,920 | 29,920 | 443 | — | — | ||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
$ | 1,757,599 | $ | 31,289 | $ | 60 | $ | 250 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Includes 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, and less fees paid to BTC as securities lending agent. |
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, refer to the Notes to Financial Statements.
18 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI United Kingdom Small-Cap ETF |
Fair Value Measurements (continued)
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2019. 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 | $ | 68,259,773 | $ | — | $ | 18,813 | $68,278,586 | |||||||
Money Market Funds | 1,757,599 | — | — | 1,757,599 | ||||||||||
|
|
|
|
|
|
| ||||||||
$ | 70,017,372 | $ | — | $ | 18,813 | $70,036,185 | ||||||||
|
|
|
|
|
|
|
See notes to financial statements.
S C H E D U L E O F I N V E S T M E N T S | 19 |
Statements of Assets and Liabilities (unaudited)
February 28, 2019
iShares Currency Hedged MSCI United ETF | iShares MSCI United Kingdom ETF | iShares MSCI United ETF | ||||||||||
ASSETS | ||||||||||||
Investments in securities, at value (including securities on loan)(a): | ||||||||||||
Unaffiliated(b) | $ | — | $ | 2,125,213,099 | $ | 68,278,586 | ||||||
Affiliated(c) | 14,811,542 | 1,363,199 | 1,757,599 | |||||||||
Foreign currency, at value(d) | — | 5,190,264 | 91,631 | |||||||||
Foreign currency pledged: | ||||||||||||
Futures contracts(e) | — | 821,045 | — | |||||||||
Receivables: | ||||||||||||
Investments sold | 211,198 | 5,359,756 | 113,315 | |||||||||
Securities lending income — Affiliated | — | — | 5,384 | |||||||||
Capital shares sold | — | 5,539,827 | — | |||||||||
Dividends | 11 | 15,657,800 | 42,759 | |||||||||
Tax reclaims | — | 86,882 | 4,347 | |||||||||
Unrealized appreciation on: | ||||||||||||
Forward foreign currency exchange contracts | 125,585 | — | — | |||||||||
|
|
|
|
|
| |||||||
Total assets | 15,148,336 | 2,159,231,872 | 70,293,621 | |||||||||
|
|
|
|
|
| |||||||
LIABILITIES | ||||||||||||
Collateral on securities loaned, at value | — | — | 1,727,477 | |||||||||
Payables: | ||||||||||||
Investments purchased | — | 12,702,477 | 156,980 | |||||||||
Variation margin on futures contracts | — | 3,207 | — | |||||||||
Investment advisory fees | — | 750,153 | 25,717 | |||||||||
Unrealized depreciation on: | ||||||||||||
Forward foreign currency exchange contracts | 277,096 | — | — | |||||||||
|
|
|
|
|
| |||||||
Total liabilities | 277,096 | 13,455,837 | 1,910,174 | |||||||||
|
|
|
|
|
| |||||||
NET ASSETS | $ | 14,871,240 | $ | 2,145,776,035 | $ | 68,383,447 | ||||||
|
|
|
|
|
| |||||||
NET ASSETS CONSIST OF: | ||||||||||||
Paid-in capital | $ | 21,845,589 | $ | 2,875,299,805 | $ | 73,963,827 | ||||||
Accumulated loss | (6,974,349 | ) | (729,523,770 | ) | (5,580,380 | ) | ||||||
|
|
|
|
|
| |||||||
NET ASSETS | $ | 14,871,240 | $ | 2,145,776,035 | $ | 68,383,447 | ||||||
|
|
|
|
|
| |||||||
Shares outstanding | 650,000 | 65,800,000 | 1,750,000 | |||||||||
|
|
|
|
|
| |||||||
Net asset value | $ | 22.88 | $ | 32.61 | $ | 39.08 | ||||||
|
|
|
|
|
| |||||||
Shares authorized | Unlimited | Unlimited | Unlimited | |||||||||
|
|
|
|
|
| |||||||
Par value | None | None | None | |||||||||
|
|
|
|
|
| |||||||
(a) Securities loaned, at value | $ | — | $ | — | $ | 1,658,261 | ||||||
(b) Investments, at cost — Unaffiliated | $ | — | $ | 2,570,624,690 | $ | 71,456,020 | ||||||
(c) Investments, at cost — Affiliated | $ | 15,750,872 | $ | 1,363,199 | $ | 1,757,237 | ||||||
(d) Foreign currency, at cost | $ | — | $ | 5,092,324 | $ | 89,805 | ||||||
(e) Foreign currency collateral pledged, at cost | $ | — | $ | 797,792 | $ | — |
See notes to financial statements.
20 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Statements of Operations (unaudited)
Six Months Ended February 28, 2019
iShares Currency Hedged MSCI United Kingdom ETF | iShares MSCI United ETF | iShares MSCI United Kingdom Small-Cap ETF | ||||||||||
INVESTMENT INCOME | ||||||||||||
Dividends — Unaffiliated | $ | — | $ | 38,463,571 | $ | 611,230 | ||||||
Dividends — Affiliated | 299,639 | 16,779 | 443 | |||||||||
Interest — Unaffiliated | — | 1,092 | — | |||||||||
Securities lending income — Affiliated — net | — | 1,815 | 30,846 | |||||||||
Foreign taxes withheld | — | (612,802 | ) | (10,992 | ) | |||||||
|
|
|
|
|
| |||||||
Total investment income | 299,639 | 37,870,455 | 631,527 | |||||||||
|
|
|
|
|
| |||||||
EXPENSES | ||||||||||||
Investment advisory fees | 52,627 | 4,516,168 | 149,940 | |||||||||
|
|
|
|
|
| |||||||
Total expenses | 52,627 | 4,516,168 | 149,940 | |||||||||
Less: | ||||||||||||
Investment advisory fees waived | (52,627 | ) | — | — | ||||||||
|
|
|
|
|
| |||||||
Total expenses after fees waived | — | 4,516,168 | 149,940 | |||||||||
|
|
|
|
|
| |||||||
Net investment income | 299,639 | 33,354,287 | 481,587 | |||||||||
|
|
|
|
|
| |||||||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||
Net realized gain (loss) from: | ||||||||||||
Investments — Unaffiliated | — | (33,009,502 | ) | (887,780 | ) | |||||||
Investments — Affiliated | (197,701 | ) | — | 60 | ||||||||
In-kind redemptions — Unaffiliated | — | 1,423,363 | 238,921 | |||||||||
In-kind redemptions — Affiliated | 2,604 | — | — | |||||||||
Futures contracts | — | (1,183,415 | ) | — | ||||||||
Forward foreign currency exchange contracts | 191,634 | — | — | |||||||||
Foreign currency transactions | — | 247,227 | (3,956 | ) | ||||||||
|
|
|
|
|
| |||||||
Net realized loss | (3,463 | ) | (32,522,327 | ) | (652,755 | ) | ||||||
|
|
|
|
|
| |||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||
Investments — Unaffiliated | — | (11,974,709 | ) | (3,040,787 | ) | |||||||
Investments — Affiliated | (311,480 | ) | — | 250 | ||||||||
Futures contracts | — | 729,028 | — | |||||||||
Forward foreign currency exchange contracts | (352,430 | ) | — | — | ||||||||
Foreign currency translations | — | (2,782 | ) | 751 | ||||||||
|
|
|
|
|
| |||||||
Net change in unrealized appreciation (depreciation) | (663,910 | ) | (11,248,463 | ) | (3,039,786 | ) | ||||||
|
|
|
|
|
| |||||||
Net realized and unrealized loss | (667,373 | ) | (43,770,790 | ) | (3,692,541 | ) | ||||||
|
|
|
|
|
| |||||||
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | (367,734 | ) | $ | (10,416,503 | ) | $ | (3,210,954 | ) | |||
|
|
|
|
|
|
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S | 21 |
Statements of Changes in Net Assets
iShares Currency Hedged MSCI United Kingdom ETF | iShares MSCI United Kingdom ETF | |||||||||||||||
Six Months Ended 02/28/19 | Year Ended 08/31/18 | Six Months Ended 02/28/19 (unaudited) | Year Ended 08/31/18 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income | $ | 299,639 | $ | 799,365 | $ | 33,354,287 | $ | 85,083,388 | ||||||||
Net realized gain (loss) | (3,463 | ) | 1,439,857 | (32,522,327 | ) | 42,086,782 | ||||||||||
Net change in unrealized appreciation (depreciation) | (663,910 | ) | (1,382,765 | ) | (11,248,463 | ) | (28,540,918 | ) | ||||||||
|
|
|
|
|
|
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| |||||||||
Net increase (decrease) in net assets resulting from operations | (367,734 | ) | 856,457 | (10,416,503 | ) | 98,629,252 | ||||||||||
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| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||||||||||
Decrease in net assets resulting from distributions to shareholders | (295,517 | ) | (798,826 | ) | (37,342,616 | ) | (93,783,177 | ) | ||||||||
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| |||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions | (7,108,087 | ) | 3,512,002 | 206,564,033 | (782,620,817 | ) | ||||||||||
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| |||||||||
NET ASSETS(a) | ||||||||||||||||
Total increase (decrease) in net assets | (7,771,338 | ) | 3,569,633 | 158,804,914 | (777,774,742 | ) | ||||||||||
Beginning of period | 22,642,578 | 19,072,945 | 1,986,971,121 | 2,764,745,863 | ||||||||||||
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| |||||||||
End of period | $ | 14,871,240 | $ | 22,642,578 | $ | 2,145,776,035 | $ | 1,986,971,121 | ||||||||
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(a) | Prior year distribution character information and undistributed net investment income has been modified or removed to conform with current year RegulationS-X presentation changes. Refer to Note 12 for this prior year information. |
See notes to financial statements.
22 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Statements of Changes in Net Assets (continued)
iShares MSCI United Kingdom Small-Cap ETF | ||||||||
Six Months 02/28/19 | Year Ended 08/31/18 | |||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||
OPERATIONS | ||||||||
Net investment income | $ | 481,587 | $ | 848,766 | ||||
Net realized gain (loss) | (652,755 | ) | 3,590,893 | |||||
Net change in unrealized appreciation (depreciation) | (3,039,786 | ) | (1,751,287 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | (3,210,954 | ) | 2,688,372 | |||||
|
|
|
| |||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||
Decrease in net assets resulting from distributions to shareholders | (660,947 | ) | (838,865 | ) | ||||
|
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|
| |||||
CAPITAL SHARE TRANSACTIONS | ||||||||
Net increase in net assets derived from capital share transactions | 14,684,533 | 23,786,328 | ||||||
|
|
|
| |||||
NET ASSETS(a) | ||||||||
Total increase in net assets | 10,812,632 | 25,635,835 | ||||||
Beginning of period | 57,570,815 | 31,934,980 | ||||||
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| |||||
End of period | $ | 68,383,447 | $ | 57,570,815 | ||||
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|
|
(a) | Prior year distribution character information and undistributed net investment income has been modified or removed to conform with current year RegulationS-X presentation changes. Refer to Note 12 for this prior year information. |
See notes to financial statements.
FINANCIAL STATEMENTS | 23 |
(For a share outstanding throughout each period)
iShares Currency Hedged MSCI United Kingdom ETF | ||||||||||||||||||||
|
| |||||||||||||||||||
| Six Months Ended 02/28/19 (unaudited) | | | Year Ended 08/31/18 | | | Year Ended 08/31/17 | | | Year Ended 08/31/16 | | | Period From 06/29/15 to 08/31/15 | (a)
| ||||||
| ||||||||||||||||||||
Net asset value, beginning of period | $ | 23.83 | $ | 23.84 | $ | 24.87 | $ | 23.21 | $ | 24.35 | ||||||||||
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| |||||||||||
Net investment income (loss)(b) | 0.40 | 1.11 | 0.48 | 0.43 | (0.00 | )(c) | ||||||||||||||
Net realized and unrealized gain (loss)(d) | (0.90 | ) | (0.05 | ) | 2.39 | 2.48 | (1.14 | ) | ||||||||||||
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| |||||||||||
Net increase (decrease) from investment operations | (0.50 | ) | 1.06 | 2.87 | 2.91 | (1.14 | ) | |||||||||||||
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| |||||||||||
Distributions | ||||||||||||||||||||
From net investment income | (0.45 | ) | (1.07 | ) | (0.84 | ) | (1.01 | ) | — | |||||||||||
From net realized gain | — | — | (3.06 | ) | (0.24 | ) | — | |||||||||||||
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| |||||||||||
Total distributions | (0.45 | ) | (1.07 | ) | (3.90 | ) | (1.25 | ) | — | |||||||||||
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| |||||||||||
Net asset value, end of period | $ | 22.88 | $ | 23.83 | $ | 23.84 | $ | 24.87 | $ | 23.21 | ||||||||||
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| |||||||||||
Total Return | ||||||||||||||||||||
Based on net asset value | (1.95 | )%(e) | 4.42 | % | 13.48 | % | 12.90 | % | (4.64 | )%(e) | ||||||||||
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| |||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||
Total expenses(f) | 0.62 | %(g) | 0.62 | % | 0.62 | % | 0.62 | % | 0.62 | %(g) | ||||||||||
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Total expenses after fees waived(f) | 0.00 | %(g) | 0.00 | % | 0.00 | % | 0.00 | % | 0.01 | %(g) | ||||||||||
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| |||||||||||
Net investment income (loss) | 3.53 | %(g) | 4.62 | % | 1.99 | % | 1.80 | % | (0.01 | )%(g) | ||||||||||
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| |||||||||||
Supplemental Data | ||||||||||||||||||||
Net assets, end of period (000) | $ | 14,871 | $ | 22,643 | $ | 19,073 | $ | 114,398 | $ | 2,321 | ||||||||||
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| |||||||||||
Portfolio turnover rate(h)(i) | 6 | %(e) | 17 | % | 20 | % | 4 | % | 0 | %(e) | ||||||||||
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(a) | Commencement of operations. |
(b) | Based on average shares outstanding. |
(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) | 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. |
(h) | Portfolio turnover rate excludesin-kind transactions. |
(i) | Portfolio turnover rate excludes the portfolio activity of the underlying fund in which the Fund is invested. See the underlying fund’s financial highlights for its respective portfolio turnover rates. |
See notes to financial statements.
24 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares MSCI United Kingdom ETF | ||||||||||||||||||||||||
|
| |||||||||||||||||||||||
| Six Months Ended 02/28/19 (unaudited) | | | Year Ended 08/31/18 | | | Year Ended 08/31/17 | (a) | | Year Ended 08/31/16 | (a) | | Year Ended 08/31/15 | (a) | | Year Ended 08/31/14 | (a) | |||||||
| ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 33.62 | $ | 33.76 | $ | 31.36 | $ | 34.30 | $ | 41.05 | $ | 37.09 | ||||||||||||
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| |||||||||||||
Net investment income(b) | 0.57 | 1.29 | 1.13 | 1.22 | 1.30 | 2.76 | (c) | |||||||||||||||||
Net realized and unrealized gain (loss)(d) | (0.94 | ) | 0.06 | 2.43 | (2.73 | ) | (6.66 | ) | 3.71 | |||||||||||||||
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| |||||||||||||
Net increase (decrease) from investment operations | (0.37 | ) | 1.35 | 3.56 | (1.51 | ) | (5.36 | ) | 6.47 | |||||||||||||||
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| |||||||||||||
Distributions | ||||||||||||||||||||||||
From net investment income | (0.64 | ) | (1.49 | ) | (1.16 | ) | (1.43 | ) | (1.39 | ) | (2.51 | ) | ||||||||||||
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Total distributions | (0.64 | ) | (1.49 | ) | (1.16 | ) | (1.43 | ) | (1.39 | ) | (2.51 | ) | ||||||||||||
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Net asset value, end of period | $ | 32.61 | $ | 33.62 | $ | 33.76 | $ | 31.36 | $ | 34.30 | $ | 41.05 | ||||||||||||
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| |||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | (0.88 | )%(e) | 3.90 | % | 11.60 | % | (4.44 | )% | (13.26 | )% | 17.56 | % | ||||||||||||
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| |||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.49 | %(f) | 0.47 | % | 0.49 | % | 0.48 | % | 0.48 | % | 0.48 | % | ||||||||||||
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| |||||||||||||
Net investment income | 3.63 | %(f) | 3.66 | % | 4.07 | % | 3.80 | % | 3.46 | % | 6.71 | %(c) | ||||||||||||
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Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 2,145,776 | $ | 1,986,971 | $ | 2,764,746 | $ | 1,928,881 | $ | 3,210,826 | $ | 4,236,360 | ||||||||||||
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| |||||||||||||
Portfolio turnover rate(g) | 7 | %(e) | 5 | % | 4 | % | 5 | % | 4 | % | 10 | % | ||||||||||||
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|
|
(a) | Per share amounts reflect aone-for-two reverse stock split effective after the close of trading on November 4, 2016. |
(b) | Based on average shares outstanding. |
(c) | Includes aone-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. |
(g) | Portfolio turnover rate excludesin-kind transactions. |
See notes to financial statements.
F I N A N C I A L H I G H L I G H T S | 25 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares MSCI United KingdomSmall-Cap ETF | ||||||||||||||||||||||||
|
| |||||||||||||||||||||||
Six Months Ended 02/28/19 (unaudited) | Year Ended 08/31/18 | Year Ended 08/31/17 | Year Ended 08/31/16 | Year Ended 08/31/15 | Year Ended 08/31/14 | |||||||||||||||||||
| ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 42.65 | $ | 39.92 | $ | 35.91 | $ | 40.91 | $ | 40.82 | $ | 35.27 | ||||||||||||
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| |||||||||||||
Net investment income(a) | 0.36 | 1.15 | 0.92 | 1.02 | 1.07 | 0.95 | ||||||||||||||||||
Net realized and unrealized gain (loss)(b) | (3.42 | ) | 2.93 | 4.12 | (4.89 | ) | 0.40 | 5.26 | ||||||||||||||||
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| |||||||||||||
Net increase (decrease) from investment operations | (3.06 | ) | 4.08 | 5.04 | (3.87 | ) | 1.47 | 6.21 | ||||||||||||||||
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| |||||||||||||
Distributions | ||||||||||||||||||||||||
From net investment income | (0.51 | ) | (1.35 | ) | (1.03 | ) | (1.13 | ) | (1.38 | ) | (0.66 | ) | ||||||||||||
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| |||||||||||||
Total distributions | (0.51 | ) | (1.35 | ) | (1.03 | ) | (1.13 | ) | (1.38 | ) | (0.66 | ) | ||||||||||||
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| |||||||||||||
Net asset value, end of period | $ | 39.08 | $ | 42.65 | $ | 39.92 | $ | 35.91 | $ | 40.91 | $ | 40.82 | ||||||||||||
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| |||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | (6.97 | )%(c) | 10.22 | % | 14.40 | % | (9.66 | )% | 3.84 | % | 17.66 | % | ||||||||||||
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| |||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.59 | %(d) | 0.59 | % | 0.59 | % | 0.59 | % | 0.59 | % | 0.59 | % | ||||||||||||
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| |||||||||||||
Net investment income | 1.90 | %(d) | 2.68 | % | 2.50 | % | 2.72 | % | 2.71 | % | 2.29 | % | ||||||||||||
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Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 68,383 | $ | 57,571 | $ | 31,935 | $ | 25,135 | $ | 16,365 | $ | 32,656 | ||||||||||||
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| |||||||||||||
Portfolio turnover rate(e) | 6 | %(c) | 20 | % | 19 | % | 21 | % | 17 | % | 13 | % | ||||||||||||
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(a) | Based on average shares outstanding. |
(b) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(c) | Not annualized. |
(d) | Annualized. |
(e) | Portfolio turnover rate excludesin-kind transactions. |
See notes to financial statements.
26 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements (unaudited)
1. | ORGANIZATION |
iShares Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Trust is organized as a Delaware statutory trust and is authorized to have multiple series or portfolios.
These financial statements relate only to the following funds (each, a “Fund,” and collectively, the “Funds”):
iShares ETF | Diversification Classification | |||
Currency Hedged MSCI United Kingdom | Diversified | |||
MSCI United Kingdom | Non-diversified | |||
MSCI United KingdomSmall-Cap | Diversified |
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 “underlying fund”). The financial statements and schedule of investments for the underlying fund are included in this report and should be read in conjunction with the financial statements of the iShares Currency Hedged MSCI United Kingdom ETF.
2. | 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 increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies.
Investment Transactions and Income Recognition:Investment 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 theex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities are reflected in tax reclaims receivable. 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. Upon notification from issuers, some of the dividend income received from a real estate investment trust may bere-designated as a return of capital or capital gain.Non-cash dividends, if any, are recognized on theex-dividend date and recorded asnon-cash dividend income at fair value. 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 innon-U.S. currencies are translated to U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of investments, 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 investments. Such fluctuations are reflected by the Funds as a component of net realized and unrealized gain (loss) from investments for financial reporting purposes. Each Fund reports realized currency gain (loss) 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 currency hedged fund 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 each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its statement 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, 2019, if any, are disclosed in the statement of assets and liabilities.
In-kind Redemptions:For financial reporting purposes,in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) topaid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or net asset value per share.
Distributions:Dividends and distributions paid by each Fund are recorded on theex-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.
Recent Accounting Standards:In August 2018, the Financial Accounting Standards Board issued Accounting Standards Update2018-13 “Changes to the Disclosure Requirements for Fair Value Measurement” which modifies disclosure requirements for fair value measurements. The guidance is effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years. Management is currently evaluating the impact of this guidance to the Funds.
NOTES TO FINANCIAL STATEMENTS | 27 |
Notes to Financial Statements (unaudited) (continued)
Indemnifications:In the normal course of business, each Fund enters into contracts that contain a variety of representations that provide general indemnification. The Funds’ maximum exposure under these arrangements is unknown because it involves future potential claims against the Funds, which cannot be predicted with any certainty.
3. | INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS |
Investment Valuation Policies:Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date 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. A fund determines the fair value of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Trustees of the Trust (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.
Fair Value Inputs and Methodologies:The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:
• | Equity investments traded on a recognized securities exchange are valued at that day’s last traded price or 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. |
• | Exchange-traded funds andclosed-end funds traded on a recognized securities exchange are valued at that day’s last traded price or 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 may be valued at the last traded price. |
• | Investments inopen-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 foreign currency exchange contracts are valued based on that day’s prevailing forward exchange rate for the underlying currencies. Interpolated values are derived when the settlement date of the contract is an interim date for which quotations are not available. |
If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of an investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and the cost approach. 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.
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, regular reviews 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 and large movements in market values, and reviews of any market related activity. The pricing of all Fair Valued Investments is subsequently reported to the Board on a quarterly basis.
Fair value pricing could result in a difference between the prices used to calculate a fund’s NAV and the prices used by the fund’s underlying index, which in turn could result in a difference between the fund’s performance and the performance of the fund’s underlying index.
Fair Value Hierarchy:Various inputs are used in determining the fair value of financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:
• | Level 1 – Unadjusted price quotations in active markets 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, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and |
• | Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, (including the Global Valuation Committee’s assumptions used in determining the fair value of financial instruments). |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of 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 into or out of an assigned level within the 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 a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.
28 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements (unaudited) (continued)
4. | SECURITIES AND OTHER INVESTMENTS |
Securities Lending:Each Fund may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by an approved bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund or excess collateral is returned by the Fund, on the next business day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.
As of February 28, 2019, 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 BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, or its affiliates and is disclosed in the schedules of investments. Anynon-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, if any, are also disclosed in its schedule of investments. The market value of any securities on loan as of February 28, 2019 and the value of the related cash collateral are disclosed in the statements of assets and liabilities.
Securities lending transactions are entered into by a fund under Master Securities Lending Agreements (each, an “MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for thenon-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the 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 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, absent an event of default, the borrower can resell orre-pledge the loaned securities, and the fund can reinvest cash collateral received in connection with loaned securities.
The following table is a summary of the securities lending agreements by counterparty which are subject to offset under an MSLA as of February 28, 2019:
iShares ETF and Counterparty | | Market Value of Securities on Loan | | | Cash Collateral Received | (a) | | Non-Cash Collateral Received | | Net Amount | ||||||
MSCI United KingdomSmall-Cap | ||||||||||||||||
BNP Paribas Securities Corp. | $ | 52,176 | $ | 52,176 | $ | — | $ | — | ||||||||
Citigroup Global Markets Inc. | 850,376 | 850,376 | — | — | ||||||||||||
Deutsche Bank Securities Inc. | 72,131 | 72,131 | — | — | ||||||||||||
HSBC Bank PLC | 42,722 | 42,722 | — | — | ||||||||||||
Merrill Lynch, Pierce, Fenner & Smith | 200,604 | 200,604 | — | — | ||||||||||||
Morgan Stanley & Co. LLC | 204,115 | 204,115 | — | — | ||||||||||||
UBS AG | 236,137 | 236,137 | — | — | ||||||||||||
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$ | 1,658,261 | $ | 1,658,261 | $ | — | $ | — | |||||||||
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(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. |
The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, each Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned 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 market value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by each Fund.
5. | DERIVATIVE FINANCIAL INSTRUMENTS |
Futures Contracts: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 specific quantity of an underlying instrument at a set price on a future date. Depending on the terms of a contract, a futures contract is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date.
Upon entering into a futures contract, 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. Securities deposited as initial margin, if any, are designated in the schedule of investments and cash deposited, if any, is shown as cash pledged for futures contracts in the statement of assets and liabilities.
NOTES TO FINANCIAL STATEMENTS | 29 |
Notes to Financial Statements (unaudited) (continued)
Pursuant to the contract, a 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 (“variation margin”). Variation margin is recorded as unrealized appreciation or depreciation and, if any, shown as variation margin receivable or payable on futures contracts in the statement of assets and liabilities. When the contract is closed, a realized gain or loss is recorded in the statement of operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. 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 involves the risk of an imperfect correlation in the movements in the price of futures contracts and the assets underlying such contracts.
Forward Foreign Currency Exchange Contracts:The currency-hedged fund uses forward foreign currency exchange contracts to hedge the currency exposure ofnon-U.S. dollar-denominated securities held in its portfolio or its underlying fund’s portfolio. A forward foreign currency exchange contract is an agreement between two parties to buy and sell a currency against another currency at an agreed upon price and quantity. The contracts are tradedover-the-counter (“OTC”) and not on an organized exchange.
The contract ismarked-to-market daily and the change in market value is recorded as unrealized appreciation or depreciation in the statement of assets and liabilities. When the contract is closed, a realized gain or loss is recorded in the statement of operations equal to the difference between the value at the time it was opened and the value at the time it was closed.Non-deliverable forward foreign currency exchange contracts (“NDFs”) are settled with the counterparty in cash without the delivery of foreign currency. The use of forward foreign currency exchange contracts involves the risk that the value of a contract changes unfavorably due to movements in the value of the referenced foreign currencies. A fund’s 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 fund.
Master Netting Arrangements:In order to define its contractual rights and to secure rights that will help mitigate its counterparty risk, a fund may enter into an International Swaps and Derivatives Association, Inc. master agreement (“ISDA Master Agreement”) or similar agreement with its derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between a fund and a counterparty that governs certain OTC derivatives and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default including the bankruptcy or insolvency of the counterparty. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy, insolvency, or other events.
The collateral requirements under an ISDA Master Agreement are typically calculated by netting themark-to-market amount for each transaction under such agreement, and comparing that amount to the value of any collateral currently pledged by a fund and the counterparty. Except for NDFs, the forward foreign currency exchange contracts held by the Funds generally do not require collateral. Cash collateral pledged to the counterparty, if any, is presented as cash pledged as collateral for OTC derivatives 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 affiliated investments at value and as a liability for cash received as collateral on OTC derivatives. To the extent amounts due to the Funds from the counterparty are not fully collateralized, contractually or otherwise, each Fund bears the risk of loss from counterpartynon-performance. Each Fund attempts to mitigate counterparty risk by only entering into agreements with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties.
For financial reporting purposes, each Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements, if any, in the statement of assets and liabilities.
6. | INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES |
Investment Advisory Fees:Pursuant to an Investment Advisory Agreement with the Trust, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent trustees).
For its investment advisory services to each of the following Funds, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, based on the average daily net assets of each Fund as follows:
iShares ETF | Investment Advisory Fee | |||
Currency Hedged MSCI United Kingdom | 0.62 | % | ||
MSCI United KingdomSmall-Cap | 0.59 |
30 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements (unaudited) (continued)
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:
Aggregate Average Daily Net Assets | Investment Advisory Fee | |||
First $7 billion | 0.59 | % | ||
Over $7 billion, up to and including $11 billion | 0.54 | |||
Over $11 billion, up to and including $24 billion | 0.49 | |||
Over $24 billion, up to and including $48 billion | 0.44 | |||
Over $48 billion, up to and including $72 billion | 0.40 | |||
Over $72 billion, up to and including $96 billion | 0.36 | |||
Over $96 billion | 0.32 |
Expense Waivers:A 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.
For the iShares Currency Hedged MSCI United Kingdom ETF, 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.
Distributor:BlackRock Investments, LLC, an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.
Securities Lending:The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan in a money market fund managed by BFA, or its affiliates, however, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04% (the “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. Each Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.
Pursuant to the current securities lending agreement, each Fund retains 82% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees. Prior to January 1, 2019, the Fund retained 80% of securities lending income (which excludes collateral investment fees) and the amount retained was not 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 a specified threshold, each Fund, pursuant to the 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. Prior to January 1, 2019, the Fund was subject to the same terms under the previous securities lending fee arrangement.
The share of securities lending income earned by each Fund is shown as securities lending income – affiliated – net in its statement of operations. For the six months ended February 28, 2019, the Funds paid BTC the following amounts for securities lending agent services:
iShares ETF | Fees Paid to BTC | |||
MSCI United Kingdom | $ | 388 | ||
MSCI United KingdomSmall-Cap | 6,131 |
Officers and Trustees:Certain officers and/or trustees of the Trust are officers and/or trustees of BlackRock or its affiliates.
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 Rule17a-7.
For the six months ended February 28, 2019, transactions executed by the Funds pursuant to Rule17a-7 under the 1940 Act were as follows:
iShares ETF | Purchases | Sales | ||||||
MSCI United Kingdom | $ | 15,466,186 | $ | 12,229,839 | ||||
MSCI United KingdomSmall-Cap | 632,390 | — |
Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is shown as dividends – affiliated in the statement of operations.
N O T E S T O F I N A N C I A L S T A T E M E N T S | 31 |
Notes to Financial Statements (unaudited) (continued)
A fund, in order to improve its portfolio liquidity and its ability to track its underlying index, may invest in shares of other iShares funds that invest in securities in the fund’s underlying index.
7. | PURCHASES AND SALES |
For the six months ended February 28, 2019, purchases and sales of investments, excludingin-kind transactions and short-term investments, were as follows:
iShares ETF | Purchases | Sales | ||||||
Currency Hedged MSCI United Kingdom | $ | 1,081,790 | $ | 1,239,936 | ||||
MSCI United Kingdom | 128,345,287 | 130,487,214 | ||||||
MSCI United KingdomSmall-Cap | 3,244,273 | 3,275,008 |
For the six months ended February 28, 2019,in-kind transactions were as follows:
iShares ETF | In-kind Purchases | In-kind Sales | ||||||
Currency Hedged MSCI United Kingdom | $ | 3,398,712 | $ | 10,467,365 | ||||
MSCI United Kingdom | 340,574,227 | 135,642,734 | ||||||
MSCI United KingdomSmall-Cap | 16,560,124 | 1,903,666 |
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.
Management has analyzed tax laws and regulations and their application to the Funds as of February 28, 2019, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.
As of August 31, 2018, 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 | |||||||||
Currency Hedged MSCI United Kingdom | $ | 5,629,043 | $ | — | $ | 5,629,043 | ||||||
MSCI United Kingdom | 174,886,638 | 22,514,433 | 197,401,071 | |||||||||
MSCI United KingdomSmall-Cap | 1,281,523 | — | 1,281,523 |
(a) | Must be utilized prior to losses subject to expiration. |
A fund may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” Such fund may elect tomark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any suchmarked-to-market gains.
As of February 28, 2019, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:
iShares ETF | Tax Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||
Currency Hedged MSCI United Kingdom | $ | 15,805,616 | $ | 125,585 | $ | (1,271,170 | ) | $ | (1,145,585 | ) | ||||||
MSCI United Kingdom | 2,644,308,729 | 72,213,072 | (589,757,131 | ) | (517,544,059 | ) | ||||||||||
MSCI United KingdomSmall-Cap | 73,812,080 | 3,398,057 | (7,173,952 | ) | (3,775,895 | ) |
9. | PRINCIPAL RISKS |
In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Each Fund’s prospectus provides details of the risks to which the Fund is subject.
32 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements (unaudited) (continued)
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.
Investing in the securities ofnon-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.
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.
Concentration Risk:A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its schedule of investments.
When a fund concentrates its investments in issuers located in a single country or a limited number of countries, it assumes the risk that economic, regulatory, political and social conditions in that country or those countries may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.
10. | CAPITAL SHARE TRANSACTIONS |
Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable.
Transactions in capital shares were as follows:
Six Months Ended 02/28/19 | Year Ended 08/31/18 | |||||||||||||||
iShares ETF | Shares | Amount | Shares | Amount | ||||||||||||
Currency Hedged MSCI United Kingdom | ||||||||||||||||
Shares sold | 150,000 | $ | 3,345,896 | 650,000 | $ | 15,586,960 | ||||||||||
Shares redeemed | (450,000 | ) | (10,453,983 | ) | (500,000 | ) | (12,074,958 | ) | ||||||||
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| |||||||||
Net increase(decrease) | (300,000 | ) | $ | (7,108,087 | ) | 150,000 | $ | 3,512,002 | ||||||||
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MSCI United Kingdom | ||||||||||||||||
Shares sold | 10,900,000 | $ | 343,741,273 | 11,200,000 | $ | 402,182,910 | ||||||||||
Shares redeemed | (4,200,000 | ) | (137,177,240 | ) | (34,000,000 | ) | (1,184,803,727 | ) | ||||||||
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Net increase(decrease) | 6,700,000 | $ | 206,564,033 | (22,800,000 | ) | $ | (782,620,817 | ) | ||||||||
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MSCI United KingdomSmall-Cap | ||||||||||||||||
Shares sold | 450,000 | $ | 16,605,156 | 950,000 | $ | 41,063,300 | ||||||||||
Shares redeemed | (50,000 | ) | (1,920,623 | ) | (400,000 | ) | (17,276,972 | ) | ||||||||
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Net increase | 400,000 | $ | 14,684,533 | 550,000 | $ | 23,786,328 | ||||||||||
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The consideration for the purchase of Creation Units of a fund in the Trust generally consists of thein-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 shares sold in the table above.
NOTES TO FINANCIAL STATEMENTS | 33 |
Notes to Financial Statements (unaudited) (continued)
From time to time, settlement of securities related toin-kind contributions orin-kind redemptions may be delayed. In such cases, securities related toin-kind transactions are reflected as a receivable or a payable in the statement of assets and liabilities.
11. | LEGAL PROCEEDINGS |
On June 16, 2016, investors in certain iShares funds (iShares Core S&PSmall-Cap ETF, iShares Russell 1000 Growth ETF, iShares Core S&P 500 ETF, iShares RussellMid-Cap Growth ETF, iShares RussellMid-Cap ETF, iShares RussellMid-Cap Value ETF, iShares Select Dividend ETF, iShares MorningstarMid-Cap ETF, iShares MorningstarLarge-Cap ETF, iShares U.S. Aerospace & Defense ETF and iShares U.S. Preferred Stock ETF)filed a 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.
12. | REGULATIONS-X AMENDMENTS |
On August 17, 2018, the SEC adopted amendments to certain disclosure requirements in Securities Act ReleaseNo. 33-10532,Disclosure Update and Simplification. The Funds have adopted the amendments pertinent to RegulationS-X in this shareholder report. The amendments impacted certain disclosure presentation on the statement of assets and liabilities, statement of changes in net assets and notes to the financial statements.
Prior year distribution information and undistributed (distributions in excess of) net investment income in the statement of changes in net assets has been modified to conform to the current year presentation in accordance with the RegulationS-X changes.
Distributions for the year ended August 31, 2018 were classified as follows:
iShares ETF | Net Investment Income | |||
Currency Hedged MSCI United Kingdom | $ | 798,826 | ||
MSCI United Kingdom | 93,783,177 | |||
MSCI United KingdomSmall-Cap | 838,865 |
Undistributed (distributions in excess of) net investment income as of August 31, 2018 are as follows:
iShares ETF | Undistributed net investment income | |||
Currency Hedged MSCI United Kingdom | $ | 539 | ||
MSCI United Kingdom | 19,403,125 | |||
MSCI United KingdomSmall-Cap | 184,943 |
13. | SUBSEQUENT EVENTS |
Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.
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Supplemental Information (unaudited)
Section 19(a) Notices
The amounts and sources of distributions reported in this notice are for financial reporting purposes and are not being provided for tax reporting purposes. The actual amounts and character of the distributions for tax reporting purposes will be reported to shareholders on Form1099-DIV which is sent to shareholders shortly after calendaryear-end.
Total Cumulative Distributions for the FiscalYear-to-Date | % Breakdown of the Total Cumulative Distributions for the FiscalYear-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(a) | $ | 0.439979 | $ | — | $ | 0.014663 | $ | 0.454642 | 97 | % | — | % | 3 | % | 100 | % | ||||||||||||||||
MSCI United Kingdom(a) | 0.616989 | — | 0.020257 | 0.637246 | 97 | — | 3 | 100 |
(a) | The Fund estimates that it has distributed more than the amount of earned income and net realized gains; therefore, a portion of the distribution may be a return of capital. A return of capital may occur, for example, when some or all of the shareholder’s investment in the Fund is returned to the shareholder. A return of capital does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. When distributions exceed total return performance, the difference will incrementally reduce the Fund’s net asset value per share. |
S U P P L E M E N T A L I N F O R M A T I O N | 35 |
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 FormN-Q. The iShares Funds’ FormsN-Q are available on the SEC’s website at www.sec.gov. The iShares Funds also disclose their complete schedule of portfolio holdings on a daily basis on the iShares website at www.iShares.com.
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-free1-800-474-2737; (2) on the iShares website at www.iShares.com; and (3) on the SEC website at www.sec.gov.
36 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Glossary of Terms Used in this Report
Portfolio Abbreviations — Equity | ||
NVS | Non-Voting Shares | |
Counterparty Abbreviations | ||
MS | Morgan Stanley��& Co. International PLC | |
Currency Abbreviations | ||
GBP | British Pound | |
USD | United States Dollar |
G L O S S A R Y O F T E R M S U S E D I N T H I S R E P O R T | 37 |
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 ad-visability of investing in the iShares Funds. BlackRock is not affiliated with the company listed above.
©2019 BlackRock, Inc. All rights reserved.iSHARESandBLACKROCKare registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners. |
iS-SAR-813-0219
FEBRUARY 28, 2019
2019 SEMI-ANNUAL REPORT (UNAUDITED) |
iShares Trust
▶ | iShares Adaptive Currency Hedged MSCI Japan ETF | DEWJ | Cboe BZX |
▶ | iShares Currency Hedged MSCI Australia ETF | HAUD | NYSE Arca |
▶ | iShares Currency Hedged MSCI Canada ETF | HEWC | NYSE Arca |
▶ | iShares Currency Hedged MSCI Japan ETF | HEWJ | NYSE Arca |
▶ | iShares Currency Hedged MSCI Mexico ETF | HEWW | NYSE Arca |
▶ | iShares Currency Hedged MSCI South Korea ETF | HEWY | NYSE Arca |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of each Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
You may elect to receive all future reports in paper free of charge. If you hold accounts through a financial intermediary, you can follow the instructions included with this disclosure, if applicable, or contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. Please note that not all financial intermediaries may offer this service. Your election to receive reports in paper will apply to all funds held with your financial intermediary.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive electronic delivery of shareholder reports and other communications by contacting your financial intermediary. Please note that not all financial intermediaries may offer this service.
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54 |
Fund Summary as of February 28, 2019 | iShares® Adaptive Currency Hedged MSCI Japan ETF |
Investment Objective
TheiShares 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.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||
6 Months | 1 Year | Since Inception | 1 Year | Since Inception | ||||||||||||||||||||
Fund NAV | (6.18 | )% | (7.09 | )% | 3.99 | % | (7.09 | )% | 13.13 | % | ||||||||||||||
Fund Market | (6.22 | ) | (7.23 | ) | 3.96 | (7.23 | ) | 13.00 | ||||||||||||||||
Index | (6.57 | ) | (7.95 | ) | 4.40 | (7.95 | ) | 14.54 |
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.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
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| Beginning Account Value (09/01/18) | | | Ending Account Value (02/28/19) | | | Expenses Paid During the Period | (a)(b) | | Beginning Account Value (09/01/18) | | | Ending Account Value (02/28/19) | | | Expenses Paid During the Period | (a)(b) | | Annualized Expense Ratio | (a) | ||||||||||
$ | 1,000.00 | $ | 938.20 | $ | 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 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. |
Portfolio Information
Tables shown are for the underlying fund in which the Fund invests.
ALLOCATION BY SECTOR
Sector | | Percent of Total Investments | (a) | |
Industrials | 20.9 | % | ||
Consumer Discretionary | 18.5 | |||
Financials | 11.2 | |||
Information Technology | 10.4 | |||
Health Care | 9.3 | |||
Consumer Staples | 8.6 | |||
Communication Services | 8.3 | |||
Materials | 5.6 | |||
Real Estate | 4.1 | |||
Utilities | 2.1 | |||
Energy | 1.0 |
(a) | Excludes money market funds. |
TEN LARGEST HOLDINGS
Security | | Percent of Total Investments | (a) | |
Toyota Motor Corp. | 4.2 | % | ||
SoftBank Group Corp. | 2.3 | |||
Sony Corp. | 1.9 | |||
Mitsubishi UFJ Financial Group Inc. | 1.9 | |||
Takeda Pharmaceutical Co. Ltd. | 1.8 | |||
Keyence Corp. | 1.8 | |||
Sumitomo Mitsui Financial Group Inc. | 1.4 | |||
Honda Motor Co. Ltd. | 1.4 | |||
KDDI Corp. | 1.3 | |||
Kao Corp. | 1.2 |
F U N D S U M M A R Y | 5 |
Fund Summary as of February 28, 2019 | iShares® Currency Hedged MSCI Australia ETF |
Investment Objective
TheiShares Currency Hedged MSCI Australia ETF(the “Fund”) seeks to track the investment results of an index composed of large- andmid-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.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||
6 Months | 1 Year | Since Inception | 1 Year | Since Inception | ||||||||||||||||||||
Fund NAV | 0.06 | % | 8.61 | % | 6.85 | % | 8.61 | % | 27.54 | % | ||||||||||||||
Fund Market | (0.77 | ) | 7.63 | 6.63 | 7.63 | 26.56 | ||||||||||||||||||
Index | 0.36 | 7.82 | 7.11 | 7.82 | 28.67 |
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 11 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||
| Beginning Account Value (09/01/18) | | Ending Account Value (02/28/19) | | Expenses Paid During the Period | (a)(b) | | Beginning Account Value (09/01/18) | | | Ending Account Value (02/28/19) | | Expenses Paid During the Period | (a)(b) | | Annualized Expense Ratio | (a) | |||||||||||||
$ | 1,000.00 | $ | 1,000.60 | $ | 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. |
Portfolio Information
Tables shown are for the underlying fund in which the Fund invests.
ALLOCATION BY SECTOR
Sector | | Percent of Total Investments | (a) | |
Financials | 38.0 | % | ||
Materials | 18.8 | |||
Health Care | 8.8 | |||
Real Estate | 7.3 | |||
Energy | 6.5 | |||
Industrials | 6.0 | |||
Consumer Discretionary | 5.4 | |||
Consumer Staples | 4.9 | |||
Utilities | 2.2 | |||
Communication Services | 1.5 | |||
Information Technology | 0.6 |
TEN LARGEST HOLDINGS
Security | | Percent of Total Investments | (a) | |
Commonwealth Bank of Australia | 9.8 | % | ||
BHP Group Ltd. | 8.2 | |||
Westpac Banking Corp. | 7.0 | |||
CSL Ltd. | 6.6 | |||
Australia & New Zealand Banking Group Ltd. | 6.0 | |||
National Australia Bank Ltd. | 5.2 | |||
Macquarie Group Ltd. | 3.1 | |||
Woolworths Group Ltd. | 2.8 | |||
Wesfarmers Ltd. | 2.8 | |||
Rio Tinto Ltd. | 2.7 |
(a) | Excludes money market funds. |
6 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Fund Summary as of February 28, 2019 | iShares® Currency Hedged MSCI Canada ETF |
Investment Objective
TheiShares Currency Hedged MSCI Canada ETF(the “Fund”) seeks to track the investment results of an index composed of large- andmid-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.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||
6 Months | 1 Year | Since Inception | 1 Year | Since Inception | ||||||||||||||||||||
Fund NAV | 0.02 | % | 6.62 | % | 5.56 | % | 6.62 | % | 21.96 | % | ||||||||||||||
Fund Market | (0.16 | ) | 6.60 | 5.53 | 6.60 | 21.83 | ||||||||||||||||||
Index | 0.31 | 7.18 | 5.86 | 7.18 | 23.24 |
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.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||
| Beginning Account Value (09/01/18) | | | Ending Account Value (02/28/19) | | | Expenses Paid During the Period | (a)(b) | | Beginning Account Value (09/01/18) | | | Ending Account Value (02/28/19) | | | Expenses Paid During the Period | (a)(b) | | Annualized Expense Ratio | (a) | ||||||||||
$ | 1,000.00 | $ | 1,000.20 | $ | 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. |
Portfolio Information
Tables shown are for the underlying fund in which the Fund invests.
ALLOCATION BY SECTOR
Sector | | Percent of Total Investments | (a) | |
Financials | 39.4 | % | ||
Energy | 20.3 | |||
Materials | 10.3 | |||
Industrials | 9.2 | |||
Information Technology | 4.8 | |||
Consumer Staples | 4.4 | |||
Consumer Discretionary | 4.2 | |||
Communication Services | 3.2 | |||
Utilities | 2.3 | |||
Health Care | 1.2 | |||
Real Estate | 0.7 |
TEN LARGEST HOLDINGS
Security | | Percent of Total Investments | (a) | |
Royal Bank of Canada | 8.2 | % | ||
Toronto-Dominion Bank (The) | 7.6 | |||
Enbridge Inc. | 4.8 | |||
Bank of Nova Scotia (The) | 4.8 | |||
Canadian National Railway Co. | 4.4 | |||
Suncor Energy Inc. | 4.0 | |||
Bank of Montreal | 3.7 | |||
TransCanada Corp. | 2.9 | |||
Brookfield Asset Management Inc., Class A | 2.8 | |||
Canadian Imperial Bank of Commerce | 2.7 |
(a) | Excludes money market funds. |
F U N D S U M M A R Y | 7 |
Fund Summary as of February 28, 2019 | iShares® Currency Hedged MSCI Japan ETF |
Investment Objective
TheiShares Currency Hedged MSCI Japan ETF(the “Fund”) seeks to track the investment results of an index composed of large- andmid-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.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||||||
6 Months | 1 Year | 5 Years | Since Inception | 1 Year | 5 Years | Since Inception | ||||||||||||||||||||||||||
Fund NAV | (4.71 | )% | (3.62 | )% | 7.08 | % | 7.44 | % | (3.62 | )% | 40.81 | % | 43.98 | % | ||||||||||||||||||
Fund Market | (4.74 | ) | (3.71 | ) | 7.07 | 7.43 | (3.71 | ) | 40.72 | 43.88 | ||||||||||||||||||||||
Index | (5.05 | ) | (4.52 | ) | 7.55 | 7.33 | (4.52 | ) | 43.89 | 43.25 |
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.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||
| Beginning Account Value (09/01/18) | | Ending Account Value (02/28/19) | | Expenses Paid During the Period | (a)(b) | | Beginning Account Value (09/01/18) | | Ending Account Value (02/28/19) | | Expenses Paid During the Period | (a)(b) | | Annualized Expense Ratio | (a) | ||||||||||||||
$ 1,000.00 | $ 952.90 | $ 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 11 for more information. |
Portfolio Information
Tables shown are for the underlying fund in which the Fund invests.
ALLOCATION BY SECTOR
|
| |||
Sector | | Percent of Total Investments | (a) | |
Industrials | 20.9 | % | ||
Consumer Discretionary | 18.5 | |||
Financials | 11.2 | |||
Information Technology | 10.4 | |||
Health Care | 9.3 | |||
Consumer Staples | 8.6 | |||
Communication Services | 8.3 | |||
Materials | 5.6 | |||
Real Estate | 4.1 | |||
Utilities | 2.1 | |||
Energy | 1.0 |
(a) | Excludes money market funds. |
TEN LARGEST HOLDINGS
|
| |||
Security | | Percent of Total Investments | (a) | |
Toyota Motor Corp. | 4.2 | % | ||
SoftBank Group Corp. | 2.3 | |||
Sony Corp. | 1.9 | |||
Mitsubishi UFJ Financial Group Inc. | 1.9 | |||
Takeda Pharmaceutical Co. Ltd. | 1.8 | |||
Keyence Corp. | 1.8 | |||
Sumitomo Mitsui Financial Group Inc. | 1.4 | |||
Honda Motor Co. Ltd. | 1.4 | |||
KDDI Corp. | 1.3 | |||
Kao Corp. | 1.2 |
8 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Fund Summary as of February 28, 2019 | iShares® Currency Hedged MSCI Mexico ETF |
Investment Objective
TheiShares 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.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
6 Months | 1 Year | Since Inception | 1 Year | Since Inception | ||||||||||||||||||||||||
Fund NAV | (13.42 | )% | (12.17 | )% | (3.50 | )% | (12.17 | )% | (12.27 | )% | ||||||||||||||||||
Fund Market | (13.65 | ) | (12.54 | ) | (3.70 | ) | (12.54 | ) | (12.91 | ) | ||||||||||||||||||
Index | (13.28 | ) | (12.38 | ) | (3.33 | ) | (12.38 | ) | (11.69 | ) |
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.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||
| Beginning Account Value (09/01/18) | | Ending Account Value (02/28/19) | | Expenses Paid During the Period | (a)(b) | | Beginning Account Value (09/01/18) | | Ending Account Value (02/28/19) | | Expenses Paid During the Period | (a)(b) | | Annualized Expense Ratio | (a) | ||||||||||||||
$ | 1,000.00 | $ | 865.80 | $ | 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 11 for more information. |
Portfolio Information
Tables shown are for the underlying fund in which the Fund invests.
ALLOCATION BY SECTOR
|
| |||
Sector | | Percent of Total Investments | (a) | |
Consumer Staples | 29.2 | % | ||
Communication Services | 19.5 | |||
Financials | 16.7 | |||
Materials | 12.6 | |||
Industrials | 11.5 | |||
Real Estate | 6.4 | |||
Consumer Discretionary | 2.4 | |||
Utilities | 1.3 | |||
Health Care | 0.4 |
(a) | Excludes money market funds. |
TEN LARGEST HOLDINGS
|
| |||
Security | | Percent of Total Investments | (a) | |
America Movil SAB de CV, Series L | 14.8 | % | ||
Fomento Economico Mexicano SAB de CV | 10.6 | |||
Grupo Financiero Banorte SAB de CV, Class O | 8.5 | |||
Wal-Mart de Mexico SAB de CV | 8.0 | |||
Grupo Mexico SAB de CV, Series B | 4.9 | |||
Cemex SAB de CV | 4.1 | |||
Grupo Televisa SAB | 3.3 | |||
Fibra Uno Administracion SA de CV | 2.8 | |||
Grupo Aeroportuario del Sureste SAB de CV, Class B | 2.3 | |||
Grupo Financiero Inbursa SAB de CV, Class O | 2.3 |
F U N D S U M M A R Y | 9 |
Fund Summary as of February 28, 2019 | iShares® Currency Hedged MSCI South Korea ETF |
Investment Objective
TheiShares Currency Hedged MSCI South Korea ETF(the “Fund”) seeks to track the investment results of an index composed of large- andmid-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 ETF.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||
6 Months | 1 Year | Since Inception | 1 Year | Since Inception | ||||||||||||||||||||
Fund NAV | (3.51 | )% | (6.77 | )% | 6.79 | % | (6.77 | )% | 27.27 | % | ||||||||||||||
Fund Market | (2.07 | ) | (5.62 | ) | 6.91 | (5.62 | ) | 27.79 | ||||||||||||||||
Index | (3.32 | ) | (7.09 | ) | 7.24 | (7.09 | ) | 29.23 |
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.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||
| Beginning Account Value (09/01/18) | | Ending Account Value (02/28/19) | | Expenses Paid During the Period | (a)(b) | | Beginning Account Value (09/01/18) | | Ending Account Value (02/28/19) | | Expenses Paid During the Period | (a)(b) | | Annualized Expense Ratio | (a) | ||||||||||||||
$ | 1,000.00 | $ | 964.90 | $ | 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 11 for more information. |
Portfolio Information
Tables shown are for the underlying fund in which the Fund invests.
ALLOCATION BY SECTOR |
| |||
Sector | | Percent of Total Investments | (a) | |
Information Technology | 31.8 | % | ||
Financials | 13.3 | |||
Consumer Discretionary | 12.1 | |||
Industrials | 11.0 | |||
Materials | 8.4 | |||
Consumer Staples | 6.8 | |||
Health Care | 6.3 | |||
Communication Services | 6.3 | |||
Energy | 2.6 | |||
Utilities | 1.4 |
(a) | Excludes money market funds. |
TEN LARGEST HOLDINGS |
| |||
Security | | Percent of Total Investments | (a) | |
Samsung Electronics Co. Ltd. | 22.0 | % | ||
SK Hynix Inc. | 5.2 | |||
POSCO | 2.6 | |||
Hyundai Motor Co. | 2.5 | |||
Shinhan Financial Group Co. Ltd. | 2.4 | |||
NAVER Corp. | 2.4 | |||
LG Chem Ltd. | 2.3 | |||
KB Financial Group Inc. | 2.3 | |||
Celltrion Inc. | 2.2 | |||
Hyundai Mobis Co. Ltd. | 2.0 |
10 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
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 recentmonth-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 ask on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not trade in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary market trading in shares of the fund, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.
As a shareholder of your Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested at the beginning of the period (or from the commencement of operations if less than 6 months) and held through the end of the period, is intended to help you understand your ongoing costs (in dollars and cents) of investing in your Fund and to compare these costs with the ongoing costs of investing in other funds.
Actual Expenses— The table provides information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. To estimate the expenses that you paid on your account over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During the Period.”
Hypothetical Example for Comparison Purposes— The table also provides information about hypothetical account values and hypothetical expenses based on your Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions 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.
A B O U T F U N D P E R F O R M A N C E / S H A R E H O L D E R E X P E N S E S | 11 |
Schedule of Investments (unaudited) February 28, 2019 | iShares® Adaptive Currency Hedged MSCI Japan ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
| ||||||||
Investment Companies | ||||||||
Exchange-Traded Funds — 99.6% | ||||||||
iShares MSCI Japan ETF(a) | 73,697 | $ | 4,006,169 | |||||
|
| |||||||
Total Investment Companies — 99.6% | 4,006,169 | |||||||
|
| |||||||
Short-Term Investments | ||||||||
Money Market Funds — 0.0% | ||||||||
BlackRock Cash Funds: Treasury, | 2,419 | 2,419 | ||||||
|
| |||||||
Total Short-Term Investments — 0.0% | 2,419 | |||||||
|
| |||||||
Total Investments in Securities — 99.6% | 4,008,588 | |||||||
Other Assets, Less Liabilities — 0.4% | 14,703 | |||||||
|
| |||||||
Net Assets — 100.0% | $ | 4,023,291 | ||||||
|
|
(a) | Affiliate of the Fund. |
(b) | Annualized7-day yield as ofperiod-end. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2019, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
| ||||||||||||||||||||||||||||||||
Affiliated Issuer | | Shares Held at 08/31/18 | | Shares Purchased | | Shares Sold | | Shares Held at 02/28/19 | | Value at 02/28/19 | Income | | Net Realized Gain (Loss) | (a) | | Change in Unrealized Appreciation (Depreciation) | ||||||||||||||||
| ||||||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, | — | 0 | (b) | — | — | $ | — | $ | 208 | (c) | $ | 175 | $ | — | ||||||||||||||||||
BlackRock Cash Funds: Treasury, | 2,430 | — | (11 | )(b) | 2,419 | 2,419 | 53 | — | — | |||||||||||||||||||||||
iShares MSCI Japan ETF | 74,340 | 1,817 | (2,460 | ) | 73,697 | 4,006,169 | 30,483 | (21,400 | ) | (275,302 | ) | |||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 4,008,588 | $ | 30,744 | $ | (21,225 | ) | $ | (275,302 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Net of purchases and sales. |
(c) | Includes 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, and less fees paid to BTC as securities lending agent. |
Forward Foreign Currency Exchange Contracts
Currency Purchased | Currency Sold | Counterparty | Settlement Date | Unrealized Appreciation (Depreciation) | ||||||||||||||||||
USD | 5,606,693 | JPY | 618,024,000 | MS | 03/04/19 | $ | 62,137 | |||||||||||||||
USD | 1,967,841 | JPY | 217,107,000 | MS | 04/02/19 | 15,561 | ||||||||||||||||
|
| |||||||||||||||||||||
77,698 | ||||||||||||||||||||||
|
| |||||||||||||||||||||
JPY | 618,024,000 | USD | 5,585,361 | MS | 03/04/19 | (40,805 | ) | |||||||||||||||
JPY | 105,243,000 | USD | 947,169 | MS | 04/02/19 | (798 | ) | |||||||||||||||
|
| |||||||||||||||||||||
(41,603 | ) | |||||||||||||||||||||
|
| |||||||||||||||||||||
Net unrealized appreciation | $ | 36,095 | ||||||||||||||||||||
|
|
12 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® Adaptive Currency Hedged MSCI Japan ETF |
Derivative Financial Instruments Categorized by Risk Exposure
As of February 28, 2019, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:
| ||||
Foreign Currency Exchange Contracts | ||||
| ||||
Assets — Derivative Financial Instruments | ||||
Forward foreign currency exchange contracts | ||||
Unrealized appreciation on forward foreign currency exchange contracts | $ | 77,698 | ||
|
| |||
Liabilities — Derivative Financial Instruments | ||||
Forward foreign currency exchange contracts | ||||
Unrealized depreciation on forward foreign currency exchange contracts | $ | 41,603 | ||
|
|
For the six months ended February 28, 2019, the effect of derivative financial instruments in the Statement of Operations was as follows:
| ||||
Foreign Currency Exchange Contracts | ||||
| ||||
Net Realized Gain (Loss) from: | ||||
Forward foreign currency exchange contracts | $ | (43,488 | ) | |
|
| |||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Forward foreign currency exchange contracts | $ | 38,869 | ||
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
| ||||
Forward foreign currency exchange contracts: | ||||
Average amounts purchased — in USD | $ | 5,139,610 | ||
Average amounts sold — in USD | $ | 7,249,792 | ||
|
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Derivative Financial Instruments — Offsetting as of Period End
The Fund’s derivative assets and liabilities (by type) were as follows:
| ||||||||
Assets | Liabilities | |||||||
| ||||||||
Derivative Financial Instruments: | ||||||||
Forward foreign currency exchange contracts | $ | 77,698 | $ | 41,603 | ||||
|
|
|
| |||||
Total derivative assets and liabilities in the Statement of Assets and Liabilities | $ | 77,698 | $ | 41,603 | ||||
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”) | — | — | ||||||
|
|
|
| |||||
Total derivative assets and liabilities subject to an MNA | $ | 77,698 | $ | 41,603 | ||||
|
|
|
|
The following tables presents the Fund’s derivative assets and liabilities by counterparty net of amounts available for offset under an MNA and net of the related collateral received and pledged by the Fund:
| ||||||||||||
Counterparty | | Derivative Assets | | | Derivatives | | | Net Amount of Derivative Assets | (b) | |||
| ||||||||||||
Morgan Stanley & Co. International PLC | $ | 77,698 | $ | (41,603 | ) | $ | 36,095 | |||||
|
|
|
|
|
| |||||||
| ||||||||||||
Counterparty | | Derivative Liabilities Subject to an MNA by |
| | Derivatives Available for Offset | (a) | | Net Amount of Derivative Liabilities | | |||
| ||||||||||||
Morgan Stanley & Co. International PLC | $ | 41,603 | $ | (41,603 | ) | $ | — | |||||
|
|
|
|
|
|
(a) | The amount of derivatives available for offset is limited to the amount of derivatives assets and/or liabilities that are subject to an MNA. |
(b) | Net amount represents the net amount receivable from the counterparty in the event of default. |
S C H E D U L E O F I N V E S T M E N T S | 13 |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® Adaptive Currency Hedged MSCI Japan ETF |
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, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2019. 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 | $ | 4,006,169 | $ | — | $ | — | $ | 4,006,169 | ||||||||
Money Market Funds | 2,419 | — | — | 2,419 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 4,008,588 | $ | — | $ | — | $ | 4,008,588 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Assets | ||||||||||||||||
Forward Foreign Currency Exchange Contracts | $ | — | $ | 77,698 | $ | — | $ | 77,698 | ||||||||
Liabilities | ||||||||||||||||
Forward Foreign Currency Exchange Contracts | — | (41,603 | ) | — | (41,603 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | — | $ | 36,095 | $ | — | $ | 36,095 |
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
14 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) February 28, 2019 | iShares® Currency Hedged MSCI Australia ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
| ||||||||
Investment Companies |
| |||||||
Exchange-Traded Funds — 99.1% | ||||||||
iShares MSCI Australia ETF(a)(b) | 56,736 | $ | 1,207,342 | |||||
|
| |||||||
Total Investment Companies — 99.1% |
| 1,207,342 | ||||||
|
| |||||||
Short-Term Investments |
| |||||||
Money Market Funds — 44.7% | ||||||||
BlackRock Cash Funds: Institutional, | 543,690 | 543,908 | ||||||
BlackRock Cash Funds: Treasury, | 825 825 | |||||||
|
| |||||||
544,733 | ||||||||
|
| |||||||
Total Short-Term Investments — 44.7% |
| 544,733 | ||||||
|
| |||||||
Total Investments in Securities — 143.8% |
| 1,752,075 | ||||||
Other Assets, Less Liabilities — (43.8)% |
| (534,078 | ) | |||||
|
| |||||||
Net Assets — 100.0% |
| $ | 1,217,997 | |||||
|
|
(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
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2019, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
| ||||||||||||||||||||||||||||||||
Affiliated Issuer | | Shares Held at 08/31/18 | | | Shares Purchased | | | Shares Sold | | | Shares Held at 02/28/19 | | | Value at 02/28/19 | | Income | | Net Realized | | | Change in Unrealized Appreciation (Depreciation) |
| ||||||||||
| ||||||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, | 241,752 | 301,938 | (b) | — | 543,690 | $ | 543,908 | $ | 289 | (c) | $ | 25 | $ | 134 | ||||||||||||||||||
BlackRock Cash Funds: Treasury, | 705 | 120 | (b) | — | 825 | 825 | 13 | — | — | |||||||||||||||||||||||
iShares MSCI Australia ETF | 55,268 | 6,436 | (4,968 | ) | 56,736 | 1,207,342 | 41,085 | (11,175 | ) | (52,730 | ) | |||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 1,752,075 | $ | 41,387 | $ | (11,150 | ) | $ | (52,596 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Net of purchases and sales. |
(c) | Includes 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, and less fees paid to BTC as securities lending agent. |
Forward Foreign Currency Exchange Contracts
| ||||||||||||||||||||||||||
Currency Purchased | Currency Sold | Counterparty | Settlement Date | Unrealized Appreciation (Depreciation) | ||||||||||||||||||||||
| ||||||||||||||||||||||||||
USD | 2,320,318 | AUD | 3,240,000 | MS | 03/04/19 | $ | 22,024 | |||||||||||||||||||
USD | 1,210,654 | AUD | 1,692,000 | MS | 04/02/19 | 9,828 | ||||||||||||||||||||
|
| |||||||||||||||||||||||||
31,852 | ||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||
AUD | 3,240,000 | USD | 2,311,442 | MS | 03/04/19 | (13,148 | ) | |||||||||||||||||||
|
| |||||||||||||||||||||||||
Net unrealized appreciation | $ | 18,704 | ||||||||||||||||||||||||
|
|
S C H E D U L E O F I N V E S T M E N T S | 15 |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® Currency Hedged MSCI Australia ETF |
Derivative Financial Instruments Categorized by Risk Exposure
As of February 28, 2019, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:
| ||||
Foreign Currency Exchange Contracts | ||||
| ||||
Assets — Derivative Financial Instruments | ||||
Forward foreign currency exchange contracts | ||||
Unrealized appreciation on forward foreign currency exchange contracts | $ | 31,852 | ||
|
| |||
Liabilities — Derivative Financial Instruments | ||||
Forward foreign currency exchange contracts | ||||
Unrealized depreciation on forward foreign currency exchange contracts | $ | 13,148 | ||
|
|
For the six months ended February 28, 2019, the effect of derivative financial instruments in the Statement of Operations was as follows:
| ||||
Foreign Currency Exchange Contracts | ||||
| ||||
Net Realized Gain (Loss) from: | ||||
Forward foreign currency exchange contracts | $ | 35,696 | ||
|
| |||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Forward foreign currency exchange contracts | $ | (16,619 | ) | |
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
| ||||
Forward foreign currency exchange contracts: | ||||
Average amounts purchased — in USD | $ | 2,448,375 | ||
Average amounts sold — in USD | $ | 3,654,534 | ||
|
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements
Derivative Financial Instruments — Offsetting as of Period End
The Fund’s derivative assets and liabilities (by type) were as follows:
| ||||||||
Assets | Liabilities | |||||||
| ||||||||
Derivative Financial Instruments: | �� | |||||||
Forward foreign currency exchange contracts | $ | 31,852 | $ | 13,148 | ||||
|
|
|
| |||||
Total derivative assets and liabilities in the Statement of Assets and Liabilities | $ | 31,852 | $ | 13,148 | ||||
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”) | — | — | ||||||
|
|
|
| |||||
Total derivative assets and liabilities subject to an MNA | $ | 31,852 | $ | 13,148 | ||||
|
|
|
|
The following tables presents the Fund’s derivative assets and liabilities by counterparty net of amounts available for offset under an MNA and net of the related collateral received and pledged by the Fund:
| ||||||||||||
Counterparty | | Derivative Assets Subject to an MNA by |
| | Derivatives Available for Offset | (a) | | Net Amount of Derivative Assets | (b) | |||
| ||||||||||||
Morgan Stanley & Co. International PLC | $ | 31,852 | $ | (13,148 | ) | $ | 18,704 | |||||
|
|
|
|
|
| |||||||
| ||||||||||||
Counterparty | | Derivative Liabilities Subject to an MNA by |
| | Derivatives Available for Offset | (a) | | Net Amount of Derivative Liabilities | | |||
| ||||||||||||
Morgan Stanley & Co. International PLC | $ | 13,148 | $ | (13,148 | ) | $ | — | |||||
|
|
|
|
|
|
(a) | The amount of derivatives available for offset is limited to the amount of derivatives assets and/or liabilities that are subject to an MNA. |
(b) | Net amount represents the net amount receivable from the counterparty in the event of default. |
16 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® Currency Hedged MSCI Australia ETF |
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, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2019. 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 | $ | 1,207,342 | $ | — | $ | — | $ | 1,207,342 | ||||||||
Money Market Funds | 544,733 | — | — | 544,733 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 1,752,075 | $ | — | $ | — | $ | 1,752,075 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Assets | ||||||||||||||||
Forward Foreign Currency Exchange Contracts | $ | — | $ | 31,852 | $ | — | $ | 31,852 | ||||||||
Liabilities | ||||||||||||||||
Forward Foreign Currency Exchange Contracts | — | (13,148 | ) | — | (13,148 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | — | $ | 18,704 | $ | — | $ | 18,704 | |||||||||
|
|
|
|
|
|
|
|
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
S C H E D U L E O F I N V E S T M E N T S | 17 |
Schedule of Investments (unaudited) February 28, 2019 | iShares® Currency Hedged MSCI Canada ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Investment Companies | ||||||||
Exchange-Traded Funds — 99.8% | ||||||||
iShares MSCI Canada ETF(a)(b) | 1,333,444 | $ | 37,136,415 | |||||
|
| |||||||
Total Investment Companies — 99.8% |
| 37,136,415 | ||||||
|
| |||||||
Short-Term Investments | ||||||||
Money Market Funds — 34.3% | ||||||||
BlackRock Cash Funds: Institutional, | 12,718,197 | 12,723,285 | ||||||
BlackRock Cash Funds: Treasury, | 17,914 | 17,914 | ||||||
|
| |||||||
12,741,199 | ||||||||
|
| |||||||
Total Short-Term Investments — 34.3% | 12,741,199 | |||||||
|
| |||||||
Total Investments in Securities — 134.1% | 49,877,614 | |||||||
Other Assets, Less Liabilities — (34.1)% | (12,677,771 | ) | ||||||
|
| |||||||
Net Assets — 100.0% | $ | 37,199,843 | ||||||
|
|
(a) | Affiliate of the Fund. |
(b) | All or a portion of this security is on loan. |
(c) | Annualized7-day yield as ofperiod-end. |
(d) | All or a portion of this security was purchased with cash collateral received from loaned securities. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2019, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
| ||||||||||||||||||||||||||||||||
Affiliated Issuer | | Shares Held at 08/31/18 | | | Shares Purchased | | | Shares Sold | | | Shares Held at 02/28/19 | | | Value at 02/28/19 | | Income | | Net Realized Gain (Loss) | (a) | | Change in Unrealized Appreciation (Depreciation) | | ||||||||||
| ||||||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, | 2,342,477 | 10,375,720 | (b) | — | 12,718,197 | $ | 12,723,285 | $ | 2,670 | (c) | $ | 600 | $ | 1,229 | ||||||||||||||||||
BlackRock Cash Funds: Treasury, | 2,881 | 15,033 | (b) | — | 17,914 | 17,914 | 355 | — | — | |||||||||||||||||||||||
iShares MSCI Canada ETF | 184,171 | 1,663,123 | (513,850) | 1,333,444 | 37,136,415 | 436,120 | (1,024,563) | 305,734 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 49,877,614 | $ | 439,145 | $ | (1,023,963) | $ | 306,963 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Net of purchases and sales. |
(c) | Includes 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, and less fees paid to BTC as securities lending agent. |
Forward Foreign Currency Exchange Contracts
Currency Purchased | Currency Sold | Counterparty | Settlement Date | Unrealized Appreciation (Depreciation) | ||||||||||||||||||||
USD | 2,297,136 | CAD | 3,015,000 | MS | 03/04/19 | $ | 5,858 | |||||||||||||||||
USD | 36,269,727 | CAD | 47,633,000 | MS | 04/02/19 | 44,453 | ||||||||||||||||||
|
| |||||||||||||||||||||||
50,311 | ||||||||||||||||||||||||
|
| |||||||||||||||||||||||
CAD | 47,633,000 | USD | 36,244,538 | MS | 03/04/19 | (45,399 | ) | |||||||||||||||||
USD | 33,777,929 | CAD | 44,618,000 | MS | 03/04/19 | (129,933 | ) | |||||||||||||||||
CAD | 81,000 | USD | 61,618 | MS | 04/02/19 | (17 | ) | |||||||||||||||||
USD | 1,124,625 | CAD | 1,480,000 | MS | 04/02/19 | (926 | ) | |||||||||||||||||
|
| |||||||||||||||||||||||
(176,275 | ) | |||||||||||||||||||||||
|
| |||||||||||||||||||||||
Net unrealized depreciation | $ | (125,964 | ) | |||||||||||||||||||||
|
|
18 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® Currency Hedged MSCI Canada ETF |
Derivative Financial Instruments Categorized by Risk Exposure
As of February 28, 2019, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:
| ||||
Foreign Currency Exchange Contracts | ||||
| ||||
Assets — Derivative Financial Instruments | ||||
Forward foreign currency exchange contracts | ||||
Unrealized appreciation on forward foreign currency exchange contracts | $ | 50,311 | ||
|
| |||
Liabilities — Derivative Financial Instruments | ||||
Forward foreign currency exchange contracts | ||||
Unrealized depreciation on forward foreign currency exchange contracts | $ | 176,275 | ||
|
|
For the six months ended February 28, 2019, the effect of derivative financial instruments in the Statement of Operations was as follows:
| ||||
Foreign Currency Exchange Contracts | ||||
| ||||
Net Realized Gain (Loss) from: | ||||
Forward foreign currency exchange contracts | $ | 917,795 | ||
|
| |||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Forward foreign currency exchange contracts | $ | (122,853 | ) | |
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Forward foreign currency exchange contracts: | ||||
Average amounts purchased — in USD | $ | 27,966,570 | ||
Average amounts sold — in USD | $ | 54,932,341 | ||
|
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Derivative Financial Instruments — Offsetting as of Period End
The Fund’s derivative assets and liabilities (by type) were as follows:
| ||||||||
Assets | Liabilities | |||||||
| ||||||||
Derivative Financial Instruments: | ||||||||
Forward foreign currency exchange contracts | $ | 50,311 | $ | 176,275 | ||||
|
|
|
| |||||
Total derivative assets and liabilities in the Statement of Assets and Liabilities | $ | 50,311 | $ | 176,275 | ||||
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”) | — | — | ||||||
|
|
|
| |||||
Total derivative assets and liabilities subject to an MNA | $ | 50,311 | $ | 176,275 | ||||
|
|
|
|
The following tables presents the Fund’s derivative assets and liabilities by counterparty net of amounts available for offset under an MNA and net of the related collateral received and pledged by the Fund:
| ||||||||||||
Counterparty | | Derivative Assets Subject to an MNA by Counterparty | | Derivatives Available for Offset | (a) | | Net Amount of Derivative Assets | |||||
| ||||||||||||
Morgan Stanley & Co. International PLC | $ | 50,311 | $ | (50,311 | ) | $ | — | |||||
|
|
|
|
|
| |||||||
| ||||||||||||
Counterparty | | Derivative Liabilities Subject to an MNA by Counterparty | | | Derivatives Available for Offset | (a) | | Net Amount of Derivative Liabilities | (b) | |||
| ||||||||||||
Morgan Stanley & Co. International PLC | $ | 176,275 | $ | (50,311 | ) | $ | 125,964 | |||||
|
|
|
|
|
|
(a) | The amount of derivatives available for offset is limited to the amount of derivatives assets and/or liabilities that are subject to an MNA. |
(b) | Net amount represents the net amount payable due to the counterparty in the event of default. |
S C H E D U L E O F I N V E S T M E N T S | 19 |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® Currency Hedged MSCI Canada ETF |
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, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2019. 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 | $ | 37,136,415 | $ | — | $ | — | $ | 37,136,415 | ||||||||
Money Market Funds | 12,741,199 | — | — | 12,741,199 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 49,877,614 | $ | — | $ | — | $ | 49,877,614 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Assets | ||||||||||||||||
Forward Foreign Currency Exchange Contracts | $ | — | $ | 50,311 | $ | — | $ | 50,311 | ||||||||
Liabilities | ||||||||||||||||
Forward Foreign Currency Exchange Contracts | — | (176,275 | ) | — | (176,275 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | — | $ | (125,964 | ) | $ | — | $ | (125,964 | ) | |||||||
|
|
|
|
|
|
|
|
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
20 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) | iShares® Currency Hedged MSCI Japan ETF (Percentages shown are based on Net Assets) | |
February 28, 2019 |
Security | Shares | Value | ||||||
Investment Companies | ||||||||
Exchange-Traded Funds — 99.1% | ||||||||
iShares MSCI Japan ETF(a) | 13,045,161 | $ | 709,134,952 | |||||
|
| |||||||
Total Investment Companies — 99.1% | 709,134,952 | |||||||
|
| |||||||
Short-Term Investments | ||||||||
Money Market Funds — 0.2% | ||||||||
BlackRock Cash Funds: Treasury, | 1,355,217 | 1,355,217 | ||||||
|
| |||||||
Total Short-Term Investments — 0.2% | 1,355,217 | |||||||
|
| |||||||
Total Investments in Securities — 99.3% | 710,490,169 | |||||||
Other Assets, Less Liabilities — 0.7% | 5,056,396 | |||||||
|
| |||||||
Net Assets — 100.0% | $ | 715,546,565 | ||||||
|
|
(a) | Affiliate of the Fund. |
(b) | Annualized7-day yield as ofperiod-end. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2019, for purposes of
Section 2(a)(3) of the 1940 Act, were as follows:
| ||||||||||||||||||||||||||||||||
Affiliated Issuer | | Shares Held at 08/31/18 | | | Shares Purchased | | | Shares Sold | | Shares Held at 02/28/19 | | | Value at 02/28/19 | | Income | | Net Realized Gain (Loss | )(a) | | Change in Unrealized Appreciation (Depreciation) | | |||||||||||
| ||||||||||||||||||||||||||||||||
BlackRock Cash Funds: Treasury, | 1,023,195 | 332,022 | (b) | — | 1,355,217 | $ | 1,355,217 | $ | 8,620 | $ | — | $ | — | |||||||||||||||||||
iShares MSCI Japan ETF | 17,310,986 | 7,180,796 | (11,446,621 | ) | 13,045,161 | 709,134,952 | 6,572,962 | 5,937,931 | (92,408,822 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 710,490,169 | $ | 6,581,582 | $ | 5,937,931 | $ | (92,408,822 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Net of purchases and sales. |
Forward Foreign Currency Exchange Contracts
Currency Purchased | Currency Sold | Counterparty | Settlement Date | Unrealized Appreciation (Depreciation) | ||||||||||||||||||||
USD | 7,749,818 | JPY | 856,608,000 | BNP | 03/04/19 | $ | 64,823 | |||||||||||||||||
USD | 39,314,181 | JPY | 4,269,444,000 | CITI | 03/04/19 | 1,011,180 | ||||||||||||||||||
USD | 1,533,720 | JPY | 169,702,000 | HSBC | 03/04/19 | 11,251 | ||||||||||||||||||
USD | 166,299,033 | JPY | 18,301,251,700 | MS | 03/04/19 | 2,110,707 | ||||||||||||||||||
USD | 603,043,010 | JPY | 65,906,449,900 | SSB | 03/04/19 | 11,768,170 | ||||||||||||||||||
USD | 27,645,669 | JPY | 3,070,516,000 | CITI | 04/02/19 | 34,820 | ||||||||||||||||||
USD | 6,137,745 | JPY | 682,523,000 | JPM | 04/02/19 | 328 | ||||||||||||||||||
USD | 69,386,559 | JPY | 7,655,245,600 | MS | 04/02/19 | 548,673 | ||||||||||||||||||
USD | 617,747,679 | JPY | 68,116,627,400 | SSB | 04/02/19 | 5,225,905 | ||||||||||||||||||
|
| |||||||||||||||||||||||
20,775,857 | ||||||||||||||||||||||||
|
| |||||||||||||||||||||||
JPY | 700,604,000 | USD | 6,312,538 | CITI | 03/04/19 | (27,121 | ) | |||||||||||||||||
JPY | 1,283,947,000 | USD | 11,650,198 | JPM | 03/04/19 | (131,363 | ) | |||||||||||||||||
JPY | 15,310,491,200 | USD | 137,992,917 | MS | 03/04/19 | (635,979 | ) | |||||||||||||||||
JPY | 652,461,000 | USD | 6,005,412 | NAB | 03/04/19 | (151,907 | ) | |||||||||||||||||
JPY | 2,434,767,000 | USD | 22,283,321 | RBS | 03/04/19 | (439,988 | ) |
S C H E D U L E O F I N V E S T M E N T S | 21 |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® Currency Hedged MSCI Japan ETF |
Forward Foreign Currency Exchange Contracts (continued)
| ||||||||||||||||||||||||||
Currency Purchased | Currency Sold | Counterparty | Settlement Date | Unrealized Appreciation (Depreciation) | ||||||||||||||||||||||
| ||||||||||||||||||||||||||
JPY | 68,116,627,400 | USD | 616,272,753 | SSB | 03/04/19 | $ | (5,169,470 | ) | ||||||||||||||||||
JPY | 672,725,000 | USD | 6,086,621 | UBS | 03/04/19 | (51,318 | ) | |||||||||||||||||||
JPY | 331,833,000 | USD | 3,023,329 | Westpac Banking Corp. | 03/04/19 | (46,313 | ) | |||||||||||||||||||
JPY | 307,387,000 | USD | 2,766,800 | CITI | 04/02/19 | (2,700 | ) | |||||||||||||||||||
|
| |||||||||||||||||||||||||
(6,656,159 | ) | |||||||||||||||||||||||||
|
| |||||||||||||||||||||||||
Net unrealized appreciation | $ | 14,119,698 | ||||||||||||||||||||||||
|
|
Derivative Financial Instruments Categorized by Risk Exposure
As of February 28, 2019, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:
| ||||
Foreign Currency Exchange Contracts | ||||
| ||||
Assets — Derivative Financial Instruments | ||||
Forward foreign currency exchange contracts | ||||
Unrealized appreciation on forward foreign currency exchange contracts | $ | 20,775,857 | ||
|
| |||
Liabilities — Derivative Financial Instruments | ||||
Forward foreign currency exchange contracts | ||||
Unrealized depreciation on forward foreign currency exchange contracts | $ | 6,656,159 | ||
|
|
For the six months ended February 28, 2019, the effect of derivative financial instruments in the Statement of Operations was as follows:
| ||||
Foreign Currency Exchange Contracts | ||||
| ||||
Net Realized Gain (Loss) from: | ||||
Forward foreign currency exchange contracts | $ | 1,353,729 | ||
|
| |||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Forward foreign currency exchange contracts | $ | 11,779,900 | ||
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Forward foreign currency exchange contracts: | ||||
Average amounts purchased — in USD | $ | 1,135,763,410 | ||
Average amounts sold — in USD | $ | 2,064,541,545 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Derivative Financial Instruments — Offsetting as of Period End
The Fund’s derivative assets and liabilities (by type) were as follows:
| ||||||||
Assets | Liabilities | |||||||
| ||||||||
Derivative Financial Instruments: | ||||||||
Forward foreign currency exchange contracts | $ | 20,775,857 | $ | 6,656,159 | ||||
|
|
|
| |||||
Total derivative assets and liabilities in the Statement of Assets and Liabilities | $ | 20,775,857 | $ | 6,656,159 | ||||
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”) | — | — | ||||||
|
|
|
| |||||
Total derivative assets and liabilities subject to an MNA | $ | 20,775,857 | $ | 6,656,159 | ||||
|
|
|
|
22 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® Currency Hedged MSCI Japan ETF |
The following tables presents the Fund’s derivative assets and liabilities by counterparty net of amounts available for offset under an MNA and net of the related collateral received and pledged by the Fund:
| ||||||||||||||||
Counterparty | | Derivative Assets Subject to an MNA by Counterparty | | | Derivatives Available for Offset | (a) | | Cash Collateral Received | | | Net Amount of Derivative Assets | (b) | ||||
| ||||||||||||||||
BNP Paribas SA | $ | 64,823 | $ | — | $ | — | $ | 64,823 | ||||||||
Citibank N.A. | 1,046,000 | (29,821 | ) | — | 1,016,179 | |||||||||||
HSBC Bank PLC | 11,251 | — | — | 11,251 | ||||||||||||
JPMorgan Chase Bank N.A. | 328 | (328 | ) | — | — | |||||||||||
Morgan Stanley & Co. International PLC | 2,659,380 | (635,979 | ) | (1,000,000 | ) | 1,023,401 | ||||||||||
State Street Bank and Trust Co. | 16,994,075 | (5,169,470 | ) | — | 11,824,605 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 20,775,857 | $ | (5,835,598 | ) | $ | (1,000,000 | ) | $ | 13,940,259 | |||||||
|
|
|
|
|
|
|
| |||||||||
| ||||||||||||||||
Counterparty | | Derivative Liabilities Subject to an MNA by Counterparty | | | Derivatives Available for Offset | (a) | | Cash Collateral Pledged | | | Net Amount of Derivative Liabilities | (c) | ||||
| ||||||||||||||||
Citibank N.A. | $ | 29,821 | $ | (29,821 | ) | $ | — | $ | — | |||||||
JPMorgan Chase Bank N.A. | 131,363 | (328 | ) | — | 131,035 | |||||||||||
Morgan Stanley & Co. International PLC | 635,979 | (635,979 | ) | — | — | |||||||||||
National Australia Bank Limited | 151,907 | — | — | 151,907 | ||||||||||||
Royal Bank of Scotland PLC | 439,988 | — | — | 439,988 | ||||||||||||
State Street Bank and Trust Co. | 5,169,470 | (5,169,470 | ) | — | — | |||||||||||
UBS AG | 51,318 | — | — | 51,318 | ||||||||||||
Westpac Banking Corp. | 46,313 | — | — | 46,313 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 6,656,159 | $ | (5,835,598 | ) | $ | — | $ | 820,561 | ||||||||
|
|
|
|
|
|
|
|
(a) | The amount of derivatives available for offset is limited to the amount of derivatives assets and/or liabilities that are subject to an MNA. |
(b) | Net amount represents the net amount receivable from the counterparty in the event of default. |
(c)�� | Net amount represents the net amount payable due to the counterparty in the event of default. |
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, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2019. 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 | $ | 709,134,952 | $ | — | $ | — | $ | 709,134,952 | ||||||||
Money Market Funds | 1,355,217 | — | — | 1,355,217 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 710,490,169 | $ | — | $ | — | $ | 710,490,169 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Assets | ||||||||||||||||
Forward Foreign Currency Exchange Contracts | $ | — | $ | 20,775,857 | $ | — | $ | 20,775,857 | ||||||||
Liabilities | ||||||||||||||||
Forward Foreign Currency Exchange Contracts | — | (6,656,159 | ) | — | (6,656,159 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | — | $ | 14,119,698 | $ | — | $ | 14,119,698 | |||||||||
|
|
|
|
|
|
|
|
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
S C H E D U L E O F I N V E S T M E N T S | 23 |
Schedule of Investments (unaudited) February 28, 2019 | iShares® Currency Hedged MSCI Mexico ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
| ||||||||
Investment Companies | ||||||||
Exchange-Traded Funds — 99.3% | ||||||||
iShares MSCI Mexico ETF(a) | 19,110 | $ | 832,432 | |||||
|
| |||||||
Total Investment Companies — 99.3% | 832,432 | |||||||
|
| |||||||
Short-Term Investments | ||||||||
Money Market Funds — 0.1% | ||||||||
BlackRock Cash Funds: Treasury, | 641 | 641 | ||||||
|
| |||||||
Total Short-Term Investments — 0.1% | 641 | |||||||
|
| |||||||
Total Investments in Securities — 99.4% | 833,073 | |||||||
Other Assets, Less Liabilities — 0.6% | 4,934 | |||||||
|
| |||||||
Net Assets — 100.0% | $ | 838,007 | ||||||
|
|
(a) | Affiliate of the Fund. |
(b) | Annualized7-day yield as ofperiod-end. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2019, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
| ||||||||||||||||||||||||||||||||
Affiliated Issuer | | Shares Held at 08/31/18 | | | Shares Purchased | | | Shares Sold | | | Shares Held at 02/28/19 | | | Value at 02/28/19 | | Income | | Net Realized Gain (Loss) | (a) | | Change in Unrealized Appreciation (Depreciation) |
| ||||||||||
| ||||||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, | — | 0 | (b) | — | — | $ | — | $ | 1,765 | (c) | $ | 75 | $ | — | ||||||||||||||||||
BlackRock Cash Funds: Treasury, | 545 | 96 | (b) | — | 641 | 641 | 19 | — | — | |||||||||||||||||||||||
iShares MSCI Mexico ETF | 19,342 | 22,729 | (22,961 | ) | 19,110 | 832,432 | 7,547 | 74,074 | (106,204 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 833,073 | $ | 9,331 | $ | 74,149 | $ | (106,204 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Net of purchases and sales. |
(c) | Includes 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, and less fees paid to BTC as securities lending agent. |
Forward Foreign Currency Exchange Contracts
Currency Purchased | Currency Sold | Counterparty | Settlement Date | Unrealized Appreciation | ||||||||||||||||||||||
USD | 1,707,792 | MXN | 32,882,000 | MS | 03/04/19 | $ | 2,417 | |||||||||||||||||||
USD | 854,063 | MXN | 16,441,000 | MS | 04/02/19 | 5,237 | ||||||||||||||||||||
|
| |||||||||||||||||||||||||
7,654 | ||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||
MXN | 32,882,000 | USD | 1,711,223 | MS | 03/04/19 | (5,849 | ) | |||||||||||||||||||
MXN | 160,000 | USD | 8,270 | MS | 04/02/19 | (9 | ) | |||||||||||||||||||
|
| |||||||||||||||||||||||||
(5,858 | ) | |||||||||||||||||||||||||
|
| |||||||||||||||||||||||||
Net unrealized appreciation | $ | 1,796 | ||||||||||||||||||||||||
|
|
24 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) | iShares® Currency Hedged MSCI Mexico ETF | |
February 28, 2019 |
Derivative Financial Instruments Categorized by Risk Exposure
As of February 28, 2019, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:
| ||||
Foreign Currency Exchange Contracts | ||||
| ||||
Assets — Derivative Financial Instruments | ||||
Forward foreign currency exchange contracts | ||||
Unrealized appreciation on forward foreign currency exchange contracts | $ | 7,654 | ||
|
| |||
Liabilities — Derivative Financial Instruments | ||||
Forward foreign currency exchange contracts | ||||
Unrealized depreciation on forward foreign currency exchange contracts | $ | 5,858 | ||
|
|
For the six months ended February 28, 2019, the effect of derivative financial instruments in the Statement of Operations was as follows:
| ||||
Foreign Currency Exchange Contracts | ||||
| ||||
Net Realized Gain (Loss) from: | ||||
Forward foreign currency exchange contracts | $ | (39,349 | ) | |
|
| |||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Forward foreign currency exchange contracts | $ | (20,085 | ) | |
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
| ||||
Forward foreign currency exchange contracts: | ||||
Average amounts purchased — in USD | $ | 1,563,870 | ||
Average amounts sold — in USD | $ | 2,455,537 | ||
|
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Derivative Financial Instruments — Offsetting as of Period End
The Fund’s derivative assets and liabilities (by type) were as follows:
| ||||||||
Assets | Liabilities | |||||||
| ||||||||
Derivative Financial Instruments: | ||||||||
Forward foreign currency exchange contracts | $ | 7,654 | $ | 5,858 | ||||
|
|
|
| |||||
Total derivative assets and liabilities in the Statement of Assets and Liabilities | $ | 7,654 | $ | 5,858 | ||||
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”) | — | — | ||||||
|
|
|
| |||||
Total derivative assets and liabilities subject to an MNA | $ | 7,654 | $ | 5,858 | ||||
|
|
|
|
The following tables presents the Fund’s derivative assets and liabilities by counterparty net of amounts available for offset under an MNA and net of the related collateral received and pledged by the Fund:
| ||||||||||||
Counterparty | | Derivative Assets Subject to an MNA by Counterparty | | | Derivatives Available for Offset | (a) | | Net Amount of Derivative Assets | (b) | |||
| ||||||||||||
Morgan Stanley & Co. International PLC | $ | 7,654 | $ | (5,858 | ) | $ | 1,796 | |||||
|
|
|
|
|
| |||||||
| ||||||||||||
Counterparty | | Derivative Liabilities Subject to an MNA by Counterparty | | | Derivatives Available for Offset | (a) | | Net Amount of Derivative Liabilities | | |||
| ||||||||||||
Morgan Stanley & Co. International PLC | $ | 5,858 | $ | (5,858 | ) | $ | — | |||||
|
|
|
|
|
|
S C H E D U L E O F I N V E S T M E N T S | 25 |
Schedule of Investments (unaudited) (continued) | iShares® Currency Hedged MSCI Mexico ETF | |
February 28, 2019 |
(a) | The amount of derivatives available for offset is limited to the amount of derivatives assets and/or liabilities that are subject to an MNA. |
(b) | Net amount represents the net amount receivable from the counterparty in the event of default. |
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, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2019. 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 | $ | 832,432 | $ | — | $ | — | $ | 832,432 | ||||||||
Money Market Funds | 641 | — | — | 641 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 833,073 | $ | — | $ | — | $ | 833,073 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Assets | ||||||||||||||||
Forward Foreign Currency Exchange Contracts | $ | — | $ | 7,654 | $ | — | $ | 7,654 | ||||||||
Liabilities | ||||||||||||||||
Forward Foreign Currency Exchange Contracts | — | (5,858 | ) | — | (5,858 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | — | $ | 1,796 | $ | — | $ | 1,796 | |||||||||
|
|
|
|
|
|
|
|
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
26 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) February 28, 2019 |
iShares® Currency Hedged MSCI South Korea ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
| ||||||||
Investment Companies | ||||||||
Exchange-Traded Funds — 99.4% | ||||||||
iShares MSCI South Korea ETF(a)(b) | 476,710 | $ | 30,018,429 | |||||
|
| |||||||
Total Investment Companies — 99.4% | 30,018,429 | |||||||
|
| |||||||
Short-Term Investments | ||||||||
Money Market Funds — 8.8% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 2.62%(a)(c)(d) | 2,638,944 | 2,640,000 | ||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 2.33%(a)(c) | 19,189 | 19,189 | ||||||
|
| |||||||
2,659,189 | ||||||||
|
| |||||||
Total Short-Term Investments — 8.8% | 2,659,189 | |||||||
|
| |||||||
Total Investments in Securities — 108.2% | 32,677,618 | |||||||
Other Assets, Less Liabilities — (8.2)% | (2,462,931 | ) | ||||||
|
| |||||||
Net Assets — 100.0% | $ | 30,214,687 | ||||||
|
|
(a) | Affiliate of the Fund. |
(b) | All or a portion of this security is on loan. |
(c) | Annualized7-day yield as ofperiod-end. |
(d) | All or a portion of this security was purchased with cash collateral received from loaned securities. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2019, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
| ||||||||||||||||||||||||||||||||
Affiliated Issuer | | Shares Held at 08/31/18 | | | Shares Purchased | | | Shares Sold | | | Shares Held at 02/28/19 | | | Value at 02/28/19 | | Income | | Net Realized Gain (Loss) | (a) | | Change in Unrealized Appreciation (Depreciation | ) | ||||||||||
| ||||||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | — | 2,638,944 | (b) | — | 2,638,944 | $ | 2,640,000 | $ | 2,976 | (c) | $ | 2,477 | $ | — | ||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 770 | 18,419 | (b) | — | 19,189 | 19,189 | 182 | — | — | |||||||||||||||||||||||
iShares MSCI South Korea ETF | 21,273 | 635,930 | (180,493 | ) | 476,710 | 30,018,429 | 295,606 | (778,210 | ) | (1,447,840 | ) | |||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 32,677,618 | $ | 298,764 | $ | (775,733 | ) | $ | (1,447,840 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Net of purchases and sales. |
(c) | Includes 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, and less fees paid to BTC as securities lending agent. |
Forward Foreign Currency Exchange Contracts
Currency Purchased | Currency Sold | Counterparty | Settlement Date | Unrealized Appreciation (Depreciation) | ||||||||||||||||||||||
USD | 61,950,192 | KRW | 69,295,116,000 | MS | 03/05/19 | $ | 338,103 | |||||||||||||||||||
USD | 30,986,059 | KRW | 34,647,558,000 | MS | 04/02/19 | 179,707 | ||||||||||||||||||||
|
| |||||||||||||||||||||||||
517,810 | ||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||
KRW | 69,295,116,000 | USD | 61,903,814 | MS | 03/05/19 | (291,726 | ) | |||||||||||||||||||
KRW | 345,422,000 | USD | 307,270 | MS | 04/02/19 | (143 | ) | |||||||||||||||||||
|
| |||||||||||||||||||||||||
(291,869 | ) | |||||||||||||||||||||||||
|
| |||||||||||||||||||||||||
Net unrealized appreciation | $ | 225,941 | ||||||||||||||||||||||||
|
|
S C H E D U L E O F I N V E S T M E N T S | 27 |
Schedule of Investments (unaudited) (continued) February 28, 2019 |
iShares® Currency Hedged MSCI South Korea ETF |
Derivative Financial Instruments Categorized by Risk Exposure
As of February 28, 2019, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:
| ||||
Foreign Currency Exchange Contracts | ||||
| ||||
Assets — Derivative Financial Instruments | ||||
Forward foreign currency exchange contracts | ||||
Unrealized appreciation on forward foreign currency exchange contracts | $ | 517,810 | ||
|
| |||
Liabilities — Derivative Financial Instruments | ||||
Forward foreign currency exchange contracts | ||||
Unrealized depreciation on forward foreign currency exchange contracts | $ | 291,869 | ||
|
|
For the six months ended February 28, 2019, the effect of derivative financial instruments in the Statement of Operations was as follows:
| ||||
Foreign Currency Exchange Contracts | ||||
| ||||
Net Realized Gain (Loss) from: | ||||
Forward foreign currency exchange contracts | $ | 296,631 | ||
|
| |||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Forward foreign currency exchange contracts | $ | 227,901 | ||
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Forward foreign currency exchange contracts: | ||||
Average amounts purchased — in USD | $ | 45,301,701 | ||
Average amounts sold — in USD | $ | 65,992,961 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Derivative Financial Instruments — Offsetting as of Period End
The Fund’s derivative assets and liabilities (by type) were as follows:
| ||||||||
Assets | Liabilities | |||||||
| ||||||||
Derivative Financial Instruments: | ||||||||
Forward foreign currency exchange contracts | $ | 517,810 | $ | 291,869 | ||||
|
|
|
| |||||
Total derivative assets and liabilities in the Statement of Assets and Liabilities | $ | 517,810 | $ | 291,869 | ||||
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”) | — | — | ||||||
|
|
|
| |||||
Total derivative assets and liabilities subject to an MNA | $ | 517,810 | $ | 291,869 | ||||
|
|
|
|
The following tables presents the Fund’s derivative assets and liabilities by counterparty net of amounts available for offset under an MNA and net of the related collateral received and pledged by the Fund:
| ||||||||||||
Counterparty | | Derivative Assets Subject to an MNA by Counterparty | | | Derivatives Available for Offset | (a) | | Net Amount of Derivative Assets | (b) | |||
| ||||||||||||
Morgan Stanley & Co. International PLC | $ | 517,810 | $ | (291,869 | ) | $ | 225,941 | |||||
|
|
|
|
|
| |||||||
| ||||||||||||
Counterparty | | Derivative Liabilities Subject to an MNA by Counterparty | | | Derivatives Available for Offset | (a) | | Net Amount of Derivative Liabilities | | |||
| ||||||||||||
Morgan Stanley & Co. International PLC | $ | 291,869 | $ | (291,869 | ) | $ | — | |||||
|
|
|
|
|
|
28 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) February 28, 2019 |
iShares® Currency Hedged MSCI South Korea ETF |
(a) | The amount of derivatives available for offset is limited to the amount of derivatives assets and/or liabilities that are subject to an MNA. |
(b) | Net amount represents the net amount receivable from the counterparty in the event of default. |
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, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2019. 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 | $ | 30,018,429 | $ | — | $ | — | $ | 30,018,429 | ||||||||
Money Market Funds | 2,659,189 | — | — | 2,659,189 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 32,677,618 | $ | — | $ | — | $ | 32,677,618 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Assets | ||||||||||||||||
Forward Foreign Currency Exchange Contracts | $ | — | $ | 517,810 | $ | — | $ | 517,810 | ||||||||
Liabilities | ||||||||||||||||
Forward Foreign Currency Exchange Contracts | — | (291,869 | ) | — | (291,869 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | — | $ | 225,941 | $ | — | $ | 225,941 | |||||||||
|
|
|
|
|
|
|
|
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
S C H E D U L E O F I N V E S T M E N T S | 29 |
Statements of Assets and Liabilities (unaudited)
February 28, 2019
iShares Adaptive Currency Hedged MSCI Japan ETF | iShares Currency Hedged MSCI Australia ETF | iShares MSCI | iShares Currency Hedged MSCI Japan ETF | |||||||||||||
| ||||||||||||||||
ASSETS | ||||||||||||||||
Investments in securities, at value (including securities on loan)(a): | ||||||||||||||||
Affiliated(b) | $ | 4,008,588 | $ | 1,752,075 | $ | 49,877,614 | $ | 710,490,169 | ||||||||
Receivables: | ||||||||||||||||
Investments sold | — | — | 168,642 | — | ||||||||||||
Securities lending income — Affiliated | 23 | 125 | 2,249 | — | ||||||||||||
Capital shares sold | — | — | — | 125,191 | ||||||||||||
Dividends | 4 | 1 | 20 | 1,653 | ||||||||||||
Unrealized appreciation on: | ||||||||||||||||
Forward foreign currency exchange contracts | 77,698 | 31,852 | 50,311 | 20,775,857 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total assets | 4,086,313 | 1,784,053 | 50,098,836 | 731,392,870 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
LIABILITIES | ||||||||||||||||
Cash received: | ||||||||||||||||
Collateral — forward foreign currency exchange contracts | — | — | — | 1,000,000 | ||||||||||||
Collateral on securities loaned, at value | — | 543,750 | 12,721,875 | — | ||||||||||||
Payables: | ||||||||||||||||
Investments purchased | 21,419 | 9,130 | — | 8,190,146 | ||||||||||||
Investment advisory fees | — | 28 | 843 | — | ||||||||||||
Unrealized depreciation on: | ||||||||||||||||
Forward foreign currency exchange contracts | 41,603 | 13,148 | 176,275 | 6,656,159 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total liabilities | 63,022 | 566,056 | 12,898,993 | 15,846,305 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS | $ | 4,023,291 | $ | 1,217,997 | $ | 37,199,843 | $ | 715,546,565 | ||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS CONSIST OF: | ||||||||||||||||
Paid-in capital | $ | 3,734,840 | $ | 1,717,994 | $ | 37,803,718 | $ | 821,753,095 | ||||||||
Accumulated earnings (loss) | 288,451 | (499,997 | ) | (603,875 | ) | (106,206,530 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS | $ | 4,023,291 | $ | 1,217,997 | $ | 37,199,843 | $ | 715,546,565 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Shares outstanding | 150,000 | 50,000 | 1,450,000 | 23,300,000 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net asset value | $ | 26.82 | $ | 24.36 | $ | 25.66 | $ | 30.71 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Shares authorized | Unlimited | Unlimited | Unlimited | Unlimited | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Par value | None | None | None | None | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
(a) Securities loaned, at value | $ | — | $ | 532,000 | $ | 12,323,625 | $ | — | ||||||||
(b) Investments, at cost — Affiliated | $ | 3,639,713 | $ | 1,696,768 | $ | 49,501,073 | $ | 768,867,995 |
See notes to financial statements.
30 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Statements of Assets and Liabilities (unaudited) (continued)
February 28, 2019
iShares Currency Hedged MSCI Mexico ETF | iShares Currency Hedged | |||||||
| ||||||||
ASSETS | ||||||||
Investments in securities, at value (including securities on loan)(a): | ||||||||
Affiliated(b) | $ | 833,073 | $ | 32,677,618 | ||||
Receivables: | ||||||||
Investments sold | 2,875 | — | ||||||
Securities lending income — Affiliated | 278 | 959 | ||||||
Dividends | 5 | 46 | ||||||
Unrealized appreciation on: | ||||||||
Forward foreign currency exchange contracts | 7,654 | 517,810 | ||||||
|
|
|
| |||||
Total assets | 843,885 | 33,196,433 | ||||||
|
|
|
| |||||
LIABILITIES | ||||||||
Collateral on securities loaned, at value | — | 2,640,000 | ||||||
Payables: | ||||||||
Investments purchased | — | 49,877 | ||||||
Investment advisory fees | 20 | — | ||||||
Unrealized depreciation on: | ||||||||
Forward foreign currency exchange contracts | 5,858 | 291,869 | ||||||
|
|
|
| |||||
Total liabilities | 5,878 | 2,981,746 | ||||||
|
|
|
| |||||
NET ASSETS | $ | 838,007 | $ | 30,214,687 | ||||
|
|
|
| |||||
NET ASSETS CONSIST OF: | ||||||||
Paid-in capital | $ | 1,256,096 | $ | 32,655,974 | ||||
Accumulated loss | (418,089 | ) | (2,441,287 | ) | ||||
|
|
|
| |||||
NET ASSETS | $ | 838,007 | $ | 30,214,687 | ||||
|
|
|
| |||||
Shares outstanding | 50,000 | 1,150,000 | ||||||
|
|
|
| |||||
Net asset value | $ | 16.76 | $ | 26.27 | ||||
|
|
|
| |||||
Shares authorized | Unlimited | Unlimited | ||||||
|
|
|
| |||||
Par value | None | None | ||||||
|
|
|
| |||||
(a) Securities loaned, at value | $ | — | $ | 2,518,800 | ||||
(b) Investments, at cost — Affiliated | $ | 890,000 | $ | 33,929,618 |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S | 31 |
Statements of Operations (unaudited)
Six Months Ended February 28, 2019
iShares MSCI | iShares Currency Hedged MSCI Australia ETF | iShares MSCI Canada ETF | iShares Currency Hedged ETF | |||||||||||||
| ||||||||||||||||
INVESTMENT INCOME | ||||||||||||||||
Dividends — Affiliated | $ | 30,536 | $ | 41,098 | $ | 436,475 | $ | 6,581,582 | ||||||||
Securities lending income — Affiliated — net | 208 | 289 | 2,670 | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total investment income | 30,744 | 41,387 | 439,145 | 6,581,582 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
EXPENSES | ||||||||||||||||
Investment advisory fees | 12,572 | 3,610 | 92,150 | 2,430,189 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total expenses | 12,572 | 3,610 | 92,150 | 2,430,189 | ||||||||||||
Less: | ||||||||||||||||
Investment advisory fees waived | (12,572 | ) | (3,435 | ) | (87,691 | ) | (2,423,644 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total expenses after fees waived | — | 175 | 4,459 | 6,545 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net investment income | 30,744 | 41,212 | 434,686 | 6,575,037 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||
Investments — Affiliated | (21,225 | ) | (11,150 | ) | (260,297 | ) | (6,147,360 | ) | ||||||||
In-kind redemptions — Affiliated | — | — | (763,666 | ) | 12,085,291 | |||||||||||
Forward foreign currency exchange contracts | (43,488 | ) | 35,696 | 917,795 | 1,353,729 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net realized gain (loss) | (64,713 | ) | 24,546 | (106,168 | ) | 7,291,660 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments — Affiliated | (275,302 | ) | (52,596 | ) | 306,963 | (92,408,822 | ) | |||||||||
Forward foreign currency exchange contracts | 38,869 | (16,619 | ) | (122,853 | ) | 11,779,900 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net change in unrealized appreciation (depreciation) | (236,433 | ) | (69,215 | ) | 184,110 | (80,628,922 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net realized and unrealized gain (loss) | (301,146 | ) | (44,669 | ) | 77,942 | (73,337,262 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | (270,402 | ) | $ | (3,457 | ) | $ | 512,628 | $ | (66,762,225 | ) | |||||
|
|
|
|
|
|
|
|
See notes to financial statements.
32 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Statements of Operations (unaudited) (continued)
Six Months Ended February 28, 2019
iShares ETF | iShares Currency Hedged MSCI South Korea ETF | |||||||
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INVESTMENT INCOME | ||||||||
Dividends — Affiliated | $ | 7,566 | $ | 295,788 | ||||
Securities lending income — Affiliated — net | 1,765 | 2,976 | ||||||
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Total investment income | 9,331 | 298,764 | ||||||
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EXPENSES | ||||||||
Investment advisory fees | 3,033 | 92,570 | ||||||
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Total expenses | 3,033 | 92,570 | ||||||
Less: | ||||||||
Investment advisory fees waived | (2,886 | ) | (92,570 | ) | ||||
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Total expenses after fees waived | 147 | — | ||||||
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Net investment income | 9,184 | 298,764 | ||||||
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REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||
Net realized gain (loss) from: | ||||||||
Investments — Affiliated | (20,466 | ) | (221,937 | ) | ||||
In-kind redemptions — Affiliated | 94,615 | (553,796 | ) | |||||
Forward foreign currency exchange contracts | (39,349 | ) | 296,631 | |||||
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Net realized gain (loss) | 34,800 | (479,102 | ) | |||||
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Net change in unrealized appreciation (depreciation) on: | ||||||||
Investments — Affiliated | (106,204 | ) | (1,447,840 | ) | ||||
Forward foreign currency exchange contracts | (20,085 | ) | 227,901 | |||||
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Net change in unrealized appreciation (depreciation) | (126,289 | ) | (1,219,939 | ) | ||||
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Net realized and unrealized loss | (91,489 | ) | (1,699,041 | ) | ||||
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NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | (82,305 | ) | $ | (1,400,277 | ) | ||
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See notes to financial statements.
F I N A N C I A L S T A T E M E N T S | 33 |
Statements of Changes in Net Assets
iShares Adaptive Currency Hedged MSCI Japan ETF | iShares Currency Hedged MSCI Australia ETF | |||||||||||||||
Six Months 02/28/19 | Year Ended 08/31/18 | Six Months 02/28/19 | Year Ended 08/31/18 | |||||||||||||
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INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income | $ | 30,744 | $ | 64,889 | $ | 41,212 | $ | 52,746 | ||||||||
Net realized gain (loss) | (64,713 | ) | 311,246 | 24,546 | 96,442 | |||||||||||
Net change in unrealized appreciation (depreciation) | (236,433 | ) | 82,887 | (69,215 | ) | 12,831 | ||||||||||
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Net increase (decrease) in net assets resulting from operations | (270,402 | ) | 459,022 | (3,457 | ) | 162,019 | ||||||||||
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DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||||||||||
Decrease in net assets resulting from distributions to shareholders | (30,257 | ) | (64,888 | ) | (40,749 | ) | (52,659 | ) | ||||||||
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CAPITAL SHARE TRANSACTIONS | ||||||||||||||||
Net decrease in net assets derived from capital share transactions | — | (1,379,179 | ) | — | — | |||||||||||
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NET ASSETS(a) | ||||||||||||||||
Total increase (decrease) in net assets | (300,659 | ) | (985,045 | ) | (44,206 | ) | 109,360 | |||||||||
Beginning of period | 4,323,950 | 5,308,995 | 1,262,203 | 1,152,843 | ||||||||||||
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End of period | $ | 4,023,291 | $ | 4,323,950 | $ | 1,217,997 | $ | 1,262,203 | ||||||||
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(a) | Prior year distribution character information and undistributed net investment income has been modified or removed to conform with current year RegulationS-X presentation changes. Refer to Note 12 for this prior year information. |
See notes to financial statements.
34 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Statements of Changes in Net Assets (continued)
iShares Currency Hedged MSCI Canada ETF | iShares Currency Hedged MSCI Japan ETF | |||||||||||||||
Six Months Ended 02/28/19 (unaudited) | Year Ended 08/31/18 | Six Months (unaudited) | Year Ended 08/31/18 | |||||||||||||
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INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income | $ | 434,686 | $ | 128,500 | $ | 6,575,037 | $ | 15,322,646 | ||||||||
Net realized gain (loss) | (106,168 | ) | 624,771 | 7,291,660 | 126,206,935 | |||||||||||
Net change in unrealized appreciation (depreciation) | 184,110 | (87,910 | ) | (80,628,922 | ) | (14,801,877 | ) | |||||||||
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Net increase (decrease) in net assets resulting from operations | 512,628 | 665,361 | (66,762,225 | ) | 126,727,704 | |||||||||||
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DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||||||||||
Decrease in net assets resulting from distributions to shareholders | (1,203,662 | ) | (128,454 | ) | (3,309,996 | ) | (15,325,665 | ) | ||||||||
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CAPITAL SHARE TRANSACTIONS | ||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions | 32,533,387 | 2,350,148 | (219,215,435 | ) | (305,294,147 | ) | ||||||||||
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NET ASSETS(a) | ||||||||||||||||
Total increase (decrease) in net assets | 31,842,353 | 2,887,055 | (289,287,656 | ) | (193,892,108 | ) | ||||||||||
Beginning of period | 5,357,490 | 2,470,435 | 1,004,834,221 | 1,198,726,329 | ||||||||||||
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End of period | $ | 37,199,843 | $ | 5,357,490 | $ | 715,546,565 | $ | 1,004,834,221 | ||||||||
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(a) | Prior year distribution character information and undistributed net investment income has been modified or removed to conform with current year RegulationS-X presentation changes. Refer to Note 12 for this prior year information. |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S | 35 |
Statements of Changes in Net Assets (continued)
iShares Currency Hedged MSCI Mexico ETF | iShares Currency Hedged MSCI South Korea ETF | |||||||||||||||
Six Months Ended 02/28/19 (unaudited) | Year Ended 08/31/18 | Six Months Ended 02/28/19 (unaudited) | Year Ended 08/31/18 | |||||||||||||
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INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income | $ | 9,184 | $ | 37,102 | $ | 298,764 | $ | 44,727 | ||||||||
Net realized gain (loss) | 34,800 | 138,810 | (479,102 | ) | 10,429 | |||||||||||
Net change in unrealized appreciation (depreciation) | (126,289 | ) | (408,143 | ) | (1,219,939 | ) | (36,845 | ) | ||||||||
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Net increase (decrease) in net assets resulting from operations | (82,305 | ) | (232,231 | ) | (1,400,277 | ) | 18,311 | |||||||||
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DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||||||||||
Decrease in net assets resulting from distributions to shareholders | (7,699 | ) | (36,807 | ) | (1,244,648 | ) | (44,724 | ) | ||||||||
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CAPITAL SHARE TRANSACTIONS | ||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions | (44,352 | ) | (1,986,543 | ) | 31,420,759 | — | ||||||||||
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NET ASSETS(a) | ||||||||||||||||
Total increase (decrease) in net assets | (134,356 | ) | (2,255,581 | ) | 28,775,834 | (26,413 | ) | |||||||||
Beginning of period | 972,363 | 3,227,944 | 1,438,853 | 1,465,266 | ||||||||||||
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End of period | $ | 838,007 | $ | 972,363 | $ | 30,214,687 | $ | 1,438,853 | ||||||||
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(a) | Prior year distribution character information and undistributed net investment income has been modified or removed to conform with current year RegulationS-X presentation changes. Refer to Note 12 for this prior year information. |
See notes to financial statements.
36 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
(For a share outstanding throughout each period)
iShares Adaptive Currency Hedged MSCI Japan ETF | ||||||||||||||||
| Six Months Ended 02/28/19 (unaudited) | | | Year Ended 08/31/18 | | | Year Ended 08/31/17 | | | Period From 01/05/16 to 08/31/16 | (a)
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Net asset value, beginning of period | $ | 28.83 | $ | 26.54 | $ | 23.46 | $ | 24.92 | ||||||||
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Net investment income(b) | 0.21 | 0.42 | 0.44 | 0.23 | ||||||||||||
Net realized and unrealized gain (loss)(c) | (2.02 | ) | 2.30 | 3.10 | (1.51 | ) | ||||||||||
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Net increase (decrease) from investment operations | (1.81 | ) | 2.72 | 3.54 | (1.28 | ) | ||||||||||
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Distributions | ||||||||||||||||
From net investment income | (0.20 | ) | (0.43 | ) | (0.46 | ) | (0.18 | ) | ||||||||
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Total distributions | (0.20 | ) | (0.43 | ) | (0.46 | ) | (0.18 | ) | ||||||||
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Net asset value, end of period | $ | 26.82 | $ | 28.83 | $ | 26.54 | $ | 23.46 | ||||||||
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Total Return | ||||||||||||||||
Based on net asset value | (6.18 | )%(d) | 10.22 | % | 15.24 | % | (5.06 | )%(d) | ||||||||
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Ratios to Average Net Assets | ||||||||||||||||
Total expenses(e) | 0.62 | %(f) | 0.62 | % | 0.62 | % | 0.62 | %(f) | ||||||||
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Total expenses after fees waived(e) | 0.00 | %(f) | 0.00 | % | 0.00 | % | 0.00 | %(f) | ||||||||
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Net investment income | 1.52 | %(f) | 1.45 | % | 1.72 | % | 1.57 | %(f) | ||||||||
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Supplemental Data | ||||||||||||||||
Net assets, end of period (000) | $ | 4,023 | $ | 4,324 | $ | 5,309 | $ | 3,520 | ||||||||
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Portfolio turnover rate(g)(h) | 2 | %(d) | 5 | % | 8 | % | 2 | %(d) | ||||||||
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(a) | Commencement of operations. |
(b) | Based on average shares outstanding. |
(c) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) | Not annualized. |
(e) | 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. |
(f) | Annualized. |
(g) | Portfolio turnover rate excludesin-kind transactions. |
(h) | Portfolio turnover rate excludes the portfolio activity of the underlying fund in which the Fund is invested. See the underlying fund’s financial highlights for its respective portfolio turnover rates. |
See notes to financial statements.
F I N A N C I A L H I G H L I G H T S | 37 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Currency Hedged MSCI Australia ETF | ||||||||||||||||||||
| Six Months Ended 02/28/19 (unaudited) | | | Year Ended 08/31/18 | | | Year Ended 08/31/17 | | | Year Ended 08/31/16 | | | Period From 06/29/15 to 08/31/15 | (a) | ||||||
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Net asset value, beginning of period | $ | 25.24 | $ | 23.06 | $ | 22.02 | $ | 23.52 | $ | 24.48 | ||||||||||
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Net investment income (loss)(b) | 0.82 | 1.05 | 0.75 | 0.72 | (0.00 | )(c) | ||||||||||||||
Net realized and unrealized gain (loss)(d) | (0.88 | ) | 2.18 | 1.40 | 0.49 | (0.96 | ) | |||||||||||||
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Net increase (decrease) from investment operations | (0.06 | ) | 3.23 | 2.15 | 1.21 | (0.96 | ) | |||||||||||||
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Distributions | ||||||||||||||||||||
From net investment income | (0.82 | ) | (1.05 | ) | (1.11 | ) | (0.90 | ) | — | |||||||||||
In excess of net investment income | — | — | — | (1.81 | ) | — | ||||||||||||||
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Total distributions | (0.82 | ) | (1.05 | ) | (1.11 | ) | (2.71 | ) | — | |||||||||||
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Net asset value, end of period | $ | 24.36 | $ | 25.24 | $ | 23.06 | $ | 22.02 | $ | 23.52 | ||||||||||
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Total Return | ||||||||||||||||||||
Based on net asset value | 0.06 | %(e) | 14.25 | % | 9.86 | % | 5.70 | % | (3.92 | )%(e) | ||||||||||
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Ratios to Average Net Assets | ||||||||||||||||||||
Total expenses(f) | 0.62 | %(g) | 0.62 | % | 0.62 | % | 0.62 | % | 0.62 | %(g) | ||||||||||
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Total expenses after fees waived(f) | 0.03 | %(g) | 0.03 | % | 0.03 | % | 0.03 | % | 0.04 | %(g) | ||||||||||
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Net investment income (loss) | 7.08 | %(g) | 4.38 | % | 3.31 | % | 3.33 | % | (0.04 | )%(g) | ||||||||||
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Supplemental Data | ||||||||||||||||||||
Net assets, end of period (000) | $ | 1,218 | $ | 1,262 | $ | 1,153 | $ | 9,910 | $ | 2,352 | ||||||||||
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Portfolio turnover rate(h)(i) | 8 | %(e) | 12 | % | 13 | % | 15 | % | 0 | %(e)(j) | ||||||||||
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(a) | Commencement of operations. |
(b) | Based on average shares outstanding. |
(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) | 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. |
(h) | Portfolio turnover rate excludesin-kind transactions. |
(i) | Portfolio turnover rate excludes the portfolio activity of the underlying fund in which the Fund is invested. See the underlying fund’s financial highlights for its respective portfolio turnover rates. |
(j) | Rounds to less than 1%. |
See notes to financial statements.
38 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Currency Hedged MSCI Canada ETF | ||||||||||||||||||||
| Six Months Ended 02/28/19 (unaudited) | | | Year Ended 08/31/18 | | | Year Ended 08/31/17 | | | Year Ended 08/31/16 | | | Period From 06/29/15 to 08/31/15 | (a) | ||||||
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Net asset value, beginning of period | $ | 26.79 | $ | 24.70 | $ | 23.54 | $ | 23.47 | $ | 24.36 | ||||||||||
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Net investment income (loss)(b) | 0.36 | 0.56 | 0.24 | 0.41 | (0.00 | )(c) | ||||||||||||||
Net realized and unrealized gain (loss)(d) | (0.45 | ) | 2.10 | 1.38 | 1.07 | (0.89 | ) | |||||||||||||
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Net increase (decrease) from investment operations | (0.09 | ) | 2.66 | 1.62 | 1.48 | (0.89 | ) | |||||||||||||
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Distributions | ||||||||||||||||||||
From net investment income | (0.41 | ) | (0.57 | ) | (0.46 | ) | (0.46 | ) | — | |||||||||||
From net realized gain | (0.63 | ) | — | — | (0.95 | ) | — | |||||||||||||
Return of capital | — | — | — | (0.00 | )(c) | — | ||||||||||||||
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Total distributions | (1.04 | ) | (0.57 | ) | (0.46 | ) | (1.41 | ) | — | |||||||||||
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Net asset value, end of period | $ | 25.66 | $ | 26.79 | $ | 24.70 | $ | 23.54 | $ | 23.47 | ||||||||||
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Total Return | ||||||||||||||||||||
Based on net asset value | 0.02 | %(e) | 10.82 | % | 6.86 | % | 6.92 | % | (3.69 | )%(e) | ||||||||||
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Ratios to Average Net Assets | ||||||||||||||||||||
Total expenses(f) | 0.62 | %(g) | 0.62 | % | 0.62 | % | 0.62 | % | 0.62 | %(g) | ||||||||||
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Total expenses after fees waived(f) | 0.03 | %(g) | 0.03 | % | 0.03 | % | 0.03 | % | 0.05 | %(g) | ||||||||||
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Net investment income (loss) | 2.92 | %(g) | 2.12 | % | 0.98 | % | 1.84 | % | (0.05 | )%(g) | ||||||||||
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Supplemental Data | ||||||||||||||||||||
Net assets, end of period (000) | $ | 37,200 | $ | 5,357 | $ | 2,470 | $ | 10,593 | $ | 2,347 | ||||||||||
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Portfolio turnover rate(h)(i) | 9 | %(e) | 10 | % | 8 | % | 13 | % | 0 | %(e) | ||||||||||
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(a) | Commencement of operations. |
(b) | Based on average shares outstanding. |
(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) | 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. |
(h) | Portfolio turnover rate excludesin-kind transactions. |
(i) | Portfolio turnover rate excludes the portfolio activity of the underlying fund in which the Fund is invested. See the underlying fund’s financial highlights for its respective portfolio turnover rates. |
See notes to financial statements.
F I N A N C I A L H I G H L I G H T S | 39 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Currency Hedged MSCI Japan ETF | ||||||||||||||||||||||||
| Six Months Ended 02/28/19 (unaudited) | | | Year Ended 08/31/18 | | | Year Ended 08/31/17 | | | Year Ended 08/31/16 | | | Year Ended 08/31/15 | | | Period From 01/31/14 to 08/31/14 | (a) | |||||||
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Net asset value, beginning of period | $ | 32.36 | $ | 29.56 | $ | 24.73 | $ | 29.46 | $ | 25.02 | $ | 23.53 | ||||||||||||
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Net investment income(b) | 0.22 | 0.46 | 0.52 | 0.41 | 0.43 | 0.13 | ||||||||||||||||||
Net realized and unrealized gain (loss)(c) | (1.75 | ) | 2.81 | 4.78 | (4.11 | ) | 4.58 | 1.53 | ||||||||||||||||
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Net increase (decrease) from investment operations | (1.53 | ) | 3.27 | 5.30 | (3.70 | ) | 5.01 | 1.66 | ||||||||||||||||
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| |||||||||||||
Distributions | ||||||||||||||||||||||||
From net investment income | (0.12 | ) | (0.47 | ) | (0.47 | ) | (0.44 | ) | (0.32 | ) | (0.17 | ) | ||||||||||||
From net realized gain | — | — | — | (0.59 | ) | (0.25 | ) | (0.00 | )(d) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | (0.12 | ) | (0.47 | ) | (0.47 | ) | (1.03 | ) | (0.57 | ) | (0.17 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 30.71 | $ | 32.36 | $ | 29.56 | $ | 24.73 | $ | 29.46 | $ | 25.02 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | (4.71 | )%(e) | 11.07 | % | 21.50 | % | (12.91 | )% | 20.08 | % | 7.05 | %(e) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses(f) | 0.53 | %(g) | 0.53 | % | 0.53 | % | 0.53 | % | 0.53 | % | 0.53 | %(g) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total expenses after fees waived(f) | 0.00 | %(g)(h) | 0.01 | % | 0.00 | %(h) | 0.00 | %(h) | 0.01 | % | 0.01 | %(g) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income | 1.43 | %(g) | 1.41 | % | 1.84 | % | 1.57 | % | 1.39 | % | 0.94 | %(g) | ||||||||||||
|
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|
|
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| |||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 715,547 | $ | 1,004,834 | $ | 1,198,726 | $ | 476,015 | $ | 735,081 | $ | 32,531 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Portfolio turnover rate(i)(j) | 3 | %(e) | 9 | % | 11 | % | 11 | % | 12 | % | 1 | %(e) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Commencement of operations. |
(b) | Based on average shares outstanding. |
(c) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) | 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. |
(h) | Rounds to less than 0.01%. |
(i) | Portfolio turnover rate excludesin-kind transactions. |
(j) | Portfolio turnover rate excludes the portfolio activity of the underlying fund in which the Fund is invested. See the underlying fund’s financial highlights for its respective portfolio turnover rates. |
See notes to financial statements.
40 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Currency Hedged MSCI Mexico ETF | ||||||||||||||||||||
| Six Months Ended 02/28/19 (unaudited) | | | Year Ended 08/31/18 | | | Year Ended 08/31/17 | | | Year Ended 08/31/16 | | | Period From 06/29/15 to 08/31/15 | (a) | ||||||
| ||||||||||||||||||||
Net asset value, beginning of period | $ | 19.45 | $ | 21.52 | $ | 23.54 | $ | 24.03 | $ | 24.43 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net investment income (loss)(b) | 0.16 | 0.41 | 0.43 | 0.49 | (0.00 | )(c) | ||||||||||||||
Net realized and unrealized gain (loss)(d) | (2.77 | ) | (1.95 | ) | 0.09 | 1.15 | (0.40 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net increase (decrease) from investment operations | (2.61 | ) | (1.54 | ) | 0.52 | 1.64 | (0.40 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Distributions | ||||||||||||||||||||
From net investment income | (0.08 | ) | (0.53 | ) | (0.33 | ) | (0.71 | ) | — | |||||||||||
In excess of net investment income | — | — | (2.21 | ) | (1.42 | ) | — | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total distributions | (0.08 | ) | (0.53 | ) | (2.54 | ) | (2.13 | ) | — | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net asset value, end of period | $ | 16.76 | $ | 19.45 | $ | 21.52 | $ | 23.54 | $ | 24.03 | ||||||||||
|
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|
|
|
|
|
| |||||||||||
Total Return | ||||||||||||||||||||
Based on net asset value | (13.42 | )%(e) | (7.10 | )% | 3.24 | % | 7.41 | % | (1.64 | )%(e) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||
Total expenses(f) | 0.62 | %(g) | 0.62 | % | 0.62 | % | 0.62 | % | 0.62 | %(g) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total expenses after fees waived(f) | 0.03 | %(g) | 0.03 | % | 0.03 | % | 0.03 | % | 0.04 | %(g) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net investment income (loss) | 1.88 | %(g) | 2.05 | % | 2.03 | % | 2.11 | % | (0.04 | )%(g) | ||||||||||
|
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|
|
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| |||||||||||
Supplemental Data | ||||||||||||||||||||
Net assets, end of period (000) | $ | 838 | $ | 972 | $ | 3,228 | $ | 1,177 | $ | 2,403 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Portfolio turnover rate(h)(i) | 10 | %(e) | 23 | % | 12 | % | 22 | % | 0 | %(e)(j) | ||||||||||
|
|
|
|
|
|
|
|
|
|
(a) | Commencement of operations. |
(b) | Based on average shares outstanding. |
(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) | 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. |
(h) | Portfolio turnover rate excludesin-kind transactions. |
(i) | Portfolio turnover rate excludes the portfolio activity of the underlying fund in which the Fund is invested. See the underlying fund’s financial highlights for its respective portfolio turnover rates. |
(j) | Rounds to less than 1%. |
See notes to financial statements.
F I N A N C I A L H I G H L I G H T S | 41 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Currency Hedged MSCI South Korea ETF | ||||||||||||||||||||
| Six Months Ended 02/28/19 (unaudited) | | | Year Ended 08/31/18 | | | Year Ended 08/31/17 | | | Year Ended 08/31/16 | | | Period From 06/29/15 to 08/31/15 | (a) | ||||||
| ||||||||||||||||||||
Net asset value, beginning of period | $ | 28.78 | $ | 29.31 | $ | 24.71 | $ | 22.70 | $ | 24.64 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net investment income (loss)(b) | 0.32 | 0.89 | 0.51 | 2.12 | (0.00 | )(c) | ||||||||||||||
Net realized and unrealized gain (loss)(d) | (1.43 | ) | (0.53 | ) | 5.29 | 0.92 | (1.94 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net increase (decrease) from investment operations | (1.11 | ) | 0.36 | 5.80 | 3.04 | (1.94 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Distributions | ||||||||||||||||||||
From net investment income | (0.35 | ) | (0.89 | ) | (0.35 | ) | (0.55 | ) | — | |||||||||||
From net realized gain | (1.05 | ) | — | (0.85 | ) | (0.48 | ) | — | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total distributions | (1.40 | ) | (0.89 | ) | (1.20 | ) | (1.03 | ) | — | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net asset value, end of period | $ | 26.27 | $ | 28.78 | $ | 29.31 | $ | 24.71 | $ | 22.70 | ||||||||||
|
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|
|
|
|
|
|
| |||||||||||
Total Return | ||||||||||||||||||||
Based on net asset value | (3.51 | )%(e) | 1.09 | % | 24.59 | % | 13.67 | % | (7.87 | )%(e) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||
Total expenses(f) | 0.77 | %(g) | 0.77 | % | 0.77 | % | 0.77 | % | 0.77 | %(g) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total expenses after fees waived(f) | 0.00 | %(g) | 0.00 | % | 0.00 | % | 0.00 | % | 0.02 | %(g) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net investment income (loss) | 2.49 | %(g) | 2.96 | % | 2.01 | % | 9.13 | % | (0.02 | )%(g) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Supplemental Data | ||||||||||||||||||||
Net assets, end of period (000) | $ | 30,215 | $ | 1,439 | $ | 1,465 | $ | 12,353 | $ | 2,270 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Portfolio turnover rate(h)(i) | 6 | %(e) | 11 | % | 25 | % | 21 | % | 2 | %(e) | ||||||||||
|
|
|
|
|
|
|
|
|
|
(a) | Commencement of operations. |
(b) | Based on average shares outstanding. |
(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) | 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. |
(h) | Portfolio turnover rate excludesin-kind transactions. |
(i) | Portfolio turnover rate excludes the portfolio activity of the underlying fund in which the Fund is invested. See the underlying fund’s financial highlights for its respective portfolio turnover rates. |
See notes to financial statements.
42 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements (unaudited)
1. | ORGANIZATION |
iShares Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Trust is organized as a Delaware statutory trust and is authorized to have multiple series or portfolios.
These financial statements relate only to the following funds (each, a “Fund,” and collectively, the “Funds”):
iShares ETF | Diversification Classification | |
Adaptive Currency Hedged MSCI Japan | Diversified(a) | |
Currency Hedged MSCI Australia | Diversified | |
Currency Hedged MSCI Canada | Diversified | |
Currency Hedged MSCI Japan | Diversified | |
Currency Hedged MSCI Mexico | Diversified | |
Currency Hedged MSCI South Korea | Diversified |
(a) | The Fund’s classification changed fromnon-diversified to diversified during the reporting period. |
Currently each Fund seeks to achieve its investment objective by investing a substantial portion of its assets in an iShares fund (an “underlying fund”). The financial statements and schedules of investments for the underlying funds should be read in conjunction with the Funds’ financial statements.
2. | 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 increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies.
Investment Transactions and Income Recognition:Investment 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 from the underlying funds, if any, are recognized on theex-dividend date. 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 innon-U.S. currencies are translated to U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of investments, 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 investments. Such fluctuations are reflected by the Funds as a component of net realized and unrealized gain (loss) from investments for financial reporting purposes. Each Fund reports realized currency gain (loss) 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, each Fund 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 each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its statement 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, 2019, if any, are disclosed in the statement of assets and liabilities.
In-kind Redemptions:For financial reporting purposes,in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) topaid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or net asset value per share.
Distributions:Dividends and distributions paid by each Fund are recorded on theex-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.
Recent Accounting Standards:In August 2018, the Financial Accounting Standards Board issued Accounting Standards Update2018-13 “Changes to the Disclosure Requirements for Fair Value Measurement” which modifies disclosure requirements for fair value measurements. The guidance is effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years. Management is currently evaluating the impact of this guidance to the Funds.
N O T E S T O F I N A N C I A L S T A T E M E N T S | 43 |
Notes to Financial Statements (unaudited) (continued)
Indemnifications:In the normal course of business, each Fund enters into contracts that contain a variety of representations that provide general indemnification. The Funds’ maximum exposure under these arrangements is unknown because it involves future potential claims against the Funds, which cannot be predicted with any certainty.
3. | INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS |
Investment Valuation Policies:Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date 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. A fund determines the fair value of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Trustees of the Trust (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.
Fair Value Inputs and Methodologies:The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:
• | Exchange-traded funds andclosed-end funds traded on a recognized securities exchange are valued at that day’s last traded price or 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 may be valued at the last traded price. |
• | Investments inopen-end U.S. mutual funds (including money market funds) are valued at that day’s published net asset value (“NAV”). |
• | Forward foreign currency exchange contracts are valued based on that day’s prevailing forward exchange rate for the underlying currencies. Interpolated values are derived when the settlement date of the contract is an interim date for which quotations are not available. |
If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of an investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and the cost approach. 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.
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, regular reviews 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 and large movements in market values, and reviews of any market related activity. The pricing of all Fair Valued Investments is subsequently reported to the Board on a quarterly basis.
Fair value pricing could result in a difference between the prices used to calculate a fund’s NAV and the prices used by the fund’s underlying index, which in turn could result in a difference between the fund’s performance and the performance of the fund’s underlying index.
Fair Value Hierarchy:Various inputs are used in determining the fair value of financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:
• | Level 1 — Unadjusted price quotations in active markets 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, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and |
• | Level 3 — Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, (including the Global Valuation Committee’s assumptions used in determining the fair value of financial instruments). |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of 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 into or out of an assigned level within the 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 a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.
44 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements (unaudited) (continued)
4. | SECURITIES AND OTHER INVESTMENTS |
Securities Lending:Each Fund may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by an approved bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund or excess collateral is returned by the Fund, on the next business day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.
As of February 28, 2019, 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 BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, or its affiliates and is disclosed in the schedules of investments. Anynon-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, if any, are also disclosed in its schedule of investments. The market value of any securities on loan as of February 28, 2019 and the value of the related cash collateral are disclosed in the statements of assets and liabilities.
Securities lending transactions are entered into by a fund under Master Securities Lending Agreements (each, an “MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for thenon-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the 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 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, absent an event of default, the borrower can resell orre-pledge the loaned securities, and the fund can reinvest cash collateral received in connection with loaned securities.
The following table is a summary of the securities lending agreements by counterparty which are subject to offset under an MSLA as of February 28, 2019:
iShares ETF and Counterparty | | Market Value of Securities on Loan | | | Cash Collateral Received | (a) | | Non-Cash Collateral Received | | Net Amount | ||||||
Currency Hedged MSCI Australia Barclays | $ | 532,000 | $ | 532,000 | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
| |||||||||
Currency Hedged MSCI Canada BNP Paribas Securities Corp. | $ | 12,323,625 | $ | 12,323,625 | $ | — | $ | — | ||||||||
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|
|
|
|
|
|
| |||||||||
Currency Hedged MSCI South Korea UBS AG | $ | 2,518,800 | $ | 2,518,800 | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
|
(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. |
The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, each Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned 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 market value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by each Fund.
5. | DERIVATIVE FINANCIAL INSTRUMENTS |
Forward Foreign Currency Exchange Contracts:Each Fund uses forward foreign currency exchange contracts to hedge the currency exposure ofnon-U.S. dollar-denominated securities held in its portfolio or its underlying fund’s portfolio. A forward foreign currency exchange contract is an agreement between two parties to buy and sell a currency against another currency at an agreed upon price and quantity. The contracts are tradedover-the-counter (“OTC”) and not on an organized exchange.
The contract ismarked-to-market daily and the change in market value is recorded as unrealized appreciation or depreciation in the statement of assets and liabilities. When the contract is closed, a realized gain or loss is recorded in the statement of operations equal to the difference between the value at the time it was opened and the value at the time it was closed.Non-deliverable forward foreign currency exchange contracts (“NDFs”) are settled with the counterparty in cash without the delivery of foreign currency. The use of forward foreign currency exchange contracts involves the risk that the value of a contract changes unfavorably due to movements in the value of the referenced foreign currencies. A fund’s 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 fund.
Master Netting Arrangements:In order to define its contractual rights and to secure rights that will help mitigate its counterparty risk, a fund may enter into an International Swaps and Derivatives Association, Inc. master agreement (“ISDA Master Agreement”) or similar agreement with its derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between a fund and a counterparty that governs certain OTC derivatives and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default including the bankruptcy or insolvency of the counterparty. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy, insolvency, or other events.
N O T E S T O F I N A N C I A L S T A T E M E N T S | 45 |
Notes to Financial Statements (unaudited) (continued)
The collateral requirements under an ISDA Master Agreement are typically calculated by netting themark-to-market amount for each transaction under such agreement, and comparing that amount to the value of any collateral currently pledged by a fund and the counterparty. Except for NDFs, the forward foreign currency exchange contracts held by the Funds generally do not require collateral. Cash collateral pledged to the counterparty, if any, is presented as cash pledged as collateral for OTC derivatives 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 affiliated investments at value and as a liability for cash received as collateral on OTC derivatives. To the extent amounts due to the Funds from the counterparty are not fully collateralized, contractually or otherwise, each Fund bears the risk of loss from counterpartynon-performance. Each Fund attempts to mitigate counterparty risk by only entering into agreements with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties.
For financial reporting purposes, each Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements, if any, in the statement of assets and liabilities.
6. | INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES |
Investment Advisory Fees:Pursuant to an Investment Advisory Agreement with the Trust, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent trustees).
For its investment advisory services to each Fund, 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 | |||
Adaptive Currency Hedged MSCI Japan | 0.62 | % | ||
Currency Hedged MSCI Australia | 0.62 | |||
Currency Hedged MSCI Canada | 0.62 | |||
Currency Hedged MSCI Japan | 0.53 | |||
Currency Hedged MSCI Mexico | 0.62 | |||
Currency Hedged MSCI South Korea | 0.77 |
Expense Waivers:A 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 is a fund’s total annual operating expenses.
For the iShares Adaptive Currency Hedged MSCI Japan ETF, 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 the iShares Currency Hedged MSCI Australia ETF, 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 the iShares Currency Hedged MSCI Canada ETF, 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 the iShares Currency Hedged MSCI Japan ETF, 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 the iShares Currency Hedged MSCI Mexico ETF, 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%.
For the iShares Currency Hedged MSCI South Korea ETF, 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.
46 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements (unaudited) (continued)
Distributor:BlackRock Investments, LLC, an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.
Securities Lending:The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan in a money market fund managed by BFA, or its affiliates, however, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04% (the “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. Each Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.
Pursuant to the current securities lending agreement, each Fund retains 82% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees. Prior to January 1, 2019, the Fund retained 80% of securities lending income (which excludes collateral investment fees) and the amount retained was not 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 a specified threshold, each Fund, pursuant to the 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. Prior to January 1, 2019, the Fund was subject to the same terms under the previous securities lending fee arrangement.
The share of securities lending income earned by each Fund is shown as securities lending income – affiliated – net in its statement of operations. For the six months ended February 28, 2019, the Funds paid BTC the following amounts for securities lending agent services:
iShares ETF | Fees Paid to BTC | |||
Adaptive Currency Hedged MSCI Japan | $ | 74 | ||
Currency Hedged MSCI Australia | 95 | |||
Currency Hedged MSCI Canada | 925 | |||
Currency Hedged MSCI Mexico | 395 | |||
Currency Hedged MSCI South Korea | 976 |
Officers and Trustees:Certain officers and/or trustees of the Trust are officers and/or trustees of BlackRock or its affiliates.
Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is shown as dividends – affiliated in the statement of operations.
7. | PURCHASES AND SALES |
For the six months ended February 28, 2019, purchases and sales of investments, excludingin-kind transactions and short-term investments, were as follows:
iShares ETF | Purchases | Sales | ||||||
Adaptive Currency Hedged MSCI Japan | $ | 100,723 | $ | 125,927 | ||||
Currency Hedged MSCI Australia | 127,903 | 99,634 | ||||||
Currency Hedged MSCI Canada | 2,257,329 | 2,325,745 | ||||||
Currency Hedged MSCI Japan | 41,798,482 | 32,513,982 | ||||||
Currency Hedged MSCI Mexico | 96,230 | 140,486 | ||||||
Currency Hedged MSCI South Korea | 1,304,519 | 1,796,750 |
For the six months ended February 28, 2019,in-kind transactions were as follows:
iShares ETF | In-kind Purchases | In-kind Sales | ||||||
Currency Hedged MSCI Canada | $ | 43,804,680 | $ | 11,185,145 | ||||
Currency Hedged MSCI Japan | 364,988,994 | 586,513,258 | ||||||
Currency Hedged MSCI Mexico | 828,085 | 892,943 | ||||||
Currency Hedged MSCI South Korea | 40,605,486 | 9,300,875 |
N O T E S T O F I N A N C I A L S T A T E M E N T S | 47 |
Notes to Financial Statements (unaudited) (continued)
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.
Management has analyzed tax laws and regulations and their application to the Funds as of February 28, 2019, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.
As of August 31, 2018, the Funds had capital loss carryforwards, with no expiration dates, available to offset future realized capital gains as follows:
iShares ETF | Non-Expiring | |||
Adaptive Currency Hedged MSCI Japan | $ | 52,617 | ||
Currency Hedged MSCI Australia | 560,062 | |||
Currency Hedged MSCI Japan | 68,046,267 | |||
Currency Hedged MSCI Mexico | 352,826 |
As of February 28, 2019, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:
iShares ETF | Tax Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||
Adaptive Currency Hedged MSCI Japan | $ | 3,642,169 | $ | 446,573 | $ | (44,059 | ) | $ | 402,514 | |||||||
Currency Hedged MSCI Australia | 1,700,487 | 87,159 | (16,867 | ) | 70,292 | |||||||||||
Currency Hedged MSCI Canada | 49,504,899 | 426,852 | (180,101 | ) | 246,751 | |||||||||||
Currency Hedged MSCI Japan | 770,987,033 | 20,775,857 | (67,153,023 | ) | (46,377,166) | |||||||||||
Currency Hedged MSCI Mexico | 914,943 | 7,654 | (87,728 | ) | (80,074) | |||||||||||
Currency Hedged MSCI South Korea | 33,930,806 | 517,810 | (1,545,057 | ) | (1,027,247) |
9. | PRINCIPAL RISKS |
In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. 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.
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.
Concentration Risk:A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its schedule of investments.
48 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements (unaudited) (continued)
10. | CAPITAL SHARE TRANSACTIONS |
Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable.
Transactions in capital shares were as follows:
| ||||||||||||||||
Six Months Ended 02/28/19 | Year Ended 08/31/18 | |||||||||||||||
iShares ETF | Shares | Amount | Shares | Amount | ||||||||||||
| ||||||||||||||||
Adaptive Currency Hedged MSCI Japan | ||||||||||||||||
Shares redeemed | — | $ | — | (50,000 | ) | $ | (1,379,179 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Currency Hedged MSCI Canada | ||||||||||||||||
Shares sold | 1,700,000 | $ | 43,728,042 | 300,000 | $ | 7,634,766 | ||||||||||
Shares redeemed | (450,000 | ) | (11,194,655 | ) | (200,000 | ) | (5,284,618 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase | 1,250,000 | $ | 32,533,387 | 100,000 | $ | 2,350,148 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Currency Hedged MSCI Japan | ||||||||||||||||
Shares sold | 11,450,000 | $ | 365,664,393 | 16,950,000 | $ | 549,525,697 | ||||||||||
Shares redeemed | (19,200,000 | ) | (584,879,828 | ) | (26,450,000 | ) | (854,819,844 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net decrease | (7,750,000 | ) | $ | (219,215,435 | ) | (9,500,000 | ) | $ | (305,294,147 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Currency Hedged MSCI Mexico | ||||||||||||||||
Shares sold | 50,000 | $ | 814,287 | — | $ | — | ||||||||||
Shares redeemed | (50,000 | ) | (858,639 | ) | (100,000 | ) | (1,986,543 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net decrease | — | $ | (44,352 | ) | (100,000 | ) | $ | (1,986,543 | ) | |||||||
|
|
|
|
|
|
|
| |||||||||
Currency Hedged MSCI South Korea | ||||||||||||||||
Shares sold | 1,450,000 | $ | 40,636,320 | — | $ | — | ||||||||||
Shares redeemed | (350,000 | ) | (9,215,561 | ) | — | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase | 1,100,000 | $ | 31,420,759 | — | $ | — | ||||||||||
|
|
|
|
|
|
|
|
The consideration for the purchase of Creation Units of a fund in the Trust generally consists of thein-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 shares sold in the table above.
11. | LEGAL PROCEEDINGS |
On June 16, 2016, investors in certain iShares funds (iShares Core S&PSmall-Cap ETF, iShares Russell 1000 Growth ETF, iShares Core S&P 500 ETF, iShares RussellMid-Cap Growth ETF, iShares RussellMid-Cap ETF, iShares RussellMid-Cap Value ETF, iShares Select Dividend ETF, iShares MorningstarMid-Cap ETF, iShares MorningstarLarge-Cap ETF, iShares U.S. Aerospace & Defense ETF and iShares U.S. Preferred Stock ETF) filed a 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.
12. | REGULATIONS-X AMENDMENTS |
On August 17, 2018, the SEC adopted amendments to certain disclosure requirements in Securities Act ReleaseNo. 33-10532,Disclosure Update and Simplification.The Funds have adopted the amendments pertinent to RegulationS-X in this shareholder report. The amendments impacted certain disclosure presentation on the statement of assets and liabilities, statement of changes in net assets and notes to the financial statements.
Prior year distribution information and undistributed (distributions in excess of) net investment income in the statement of changes in net assets has been modified to conform to the current year presentation in accordance with the RegulationS-X changes.
N O T E S T O F I N A N C I A L S T A T E M E N T S | 49 |
Notes to Financial Statements (unaudited) (continued)
Distributions for the year ended August 31, 2018 were classified as follows:
iShares ETF | Net Investment Income | |||
Adaptive Currency Hedged MSCI Japan | $ | 64,888 | ||
Currency Hedged MSCI Australia | 52,659 | |||
Currency Hedged MSCI Canada | 128,454 | |||
Currency Hedged MSCI Japan | 15,325,665 | |||
Currency Hedged MSCI Mexico | 36,807 | |||
Currency Hedged MSCI South Korea | 44,724 |
Undistributed net investment income as of August 31, 2018 are as follows:
iShares ETF | Undistributed net investment income | |||
Adaptive Currency Hedged MSCI Japan | $ | 6 | ||
Currency Hedged MSCI Australia | 87 | |||
Currency Hedged MSCI Canada | 46 | |||
Currency Hedged MSCI Japan | — | |||
Currency Hedged MSCI Mexico | 407 | |||
Currency Hedged MSCI South Korea | 3 |
13. | SUBSEQUENT EVENTS |
Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.
50 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Supplemental Information (unaudited)
Section 19(a) Notices
The amounts and sources of distributions reported in this notice are for financial reporting purposes and are not being provided for tax reporting purposes. The actual amounts and character of the distributions for tax reporting purposes will be reported to shareholders on Form1099-DIV which is sent to shareholders shortly after calendaryear-end.
Total Cumulative Distributions for the FiscalYear-to-Date | % Breakdown of the Total Cumulative Distributions for the FiscalYear-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 Australia(a) | $ | 0.554422 | $ | — | $ | 0.260558 | $ | 0.814980 | 68 | % | — | % | 32 | % | 100 | % | ||||||||||||||||
Currency Hedged MSCI Canada(a) | 0.283245 | 0.631040 | 0.122586 | 1.036871 | 27 | 61 | 12 | 100 | ||||||||||||||||||||||||
Currency Hedged MSCI South Korea(a) | 0.141820 | 1.053044 | 0.207484 | 1.402348 | 10 | 75 | 15 | 100 |
(a) | The Fund estimates that it has distributed more than the amount of earned income and net realized gains; therefore, a portion of the distribution may be a return of capital. A return of capital may occur, for example, when some or all of the shareholder’s investment in the Fund is returned to the shareholder. A return of capital does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. When distributions exceed total return performance, the difference will incrementally reduce the Fund’s net asset value per share. |
S U P P L E M E N T A L I N F O R M A T I O N | 51 |
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 FormN-Q. The iShares Funds’ FormsN-Q are available on the SEC’s website at www.sec.gov. The iShares Funds also disclose their complete schedule of portfolio holdings on a daily basis on the iShares website at www.iShares.com.
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-free1-800-474-2737; (2) on the iShares website at www.iShares.com; and (3) on the SEC website at www.sec.gov.
52 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Glossary of Terms Used in this Report
Counterparty Abbreviations | ||
BNP | BNP Paribas SA | |
CITI | Citibank N.A. | |
HSBC | HSBC Bank PLC | |
JPM | JPMorgan Chase Bank N.A. | |
MS | Morgan Stanley & Co. International PLC | |
NAB | National Australia Bank Limited | |
RBS | Royal Bank of Scotland PLC | |
SSB | State Street Bank and Trust Co. | |
UBS | UBS AG | |
Currency Abbreviations | ||
AUD | Australian Dollar | |
CAD | Canadian Dollar | |
JPY | Japanese Yen | |
KRW | South Korean Won | |
MXN | Mexican Peso | |
USD | United States Dollar |
G L O S S A R Y O F T E R M S U S E D I N T H I S R E P O R T | 53 |
Additional Financial Information
February 28, 2019
iShares, Inc.
iShares MSCI Australia ETF | EWA | NYSE Arca
iShares MSCI Canada ETF | EWC | NYSE Arca
iShares MSCI Japan ETF | EWJ | NYSE Arca
iShares MSCI Mexico ETF | EWW | NYSE Arca
iShares MSCI South Korea ETF | EWY | NYSE Arca
Schedule of Investments (unaudited) February 28, 2019 | iShares® MSCI Australia ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Banks— 28.3% | ||||||||
Australia & New Zealand Banking Group Ltd. | 3,677,072 | $ | 73,249,488 | |||||
Bank of Queensland Ltd. | 506,501 | 3,246,755 | ||||||
Bendigo & Adelaide Bank Ltd. | 622,437 | 4,366,332 | ||||||
Commonwealth Bank of Australia | 2,270,334 | 119,446,207 | ||||||
National Australia Bank Ltd. | 3,506,465 | 62,691,178 | ||||||
Westpac Banking Corp. | 4,405,089 | 84,492,665 | ||||||
|
| |||||||
347,492,625 | ||||||||
Beverages— 1.1% | ||||||||
Coca-Cola Amatil Ltd. | 651,837 | 3,696,083 | ||||||
Treasury Wine Estates Ltd. | 922,577 | 9,832,385 | ||||||
|
| |||||||
13,528,468 | ||||||||
Biotechnology— 6.5% | ||||||||
CSL Ltd. | 580,193 | 79,979,934 | ||||||
|
| |||||||
Capital Markets— 4.1% | ||||||||
ASX Ltd. | 248,356 | 12,327,863 | ||||||
Macquarie Group Ltd. | 414,702 | 37,953,916 | ||||||
|
| |||||||
50,281,779 | ||||||||
Chemicals— 0.9% | ||||||||
Incitec Pivot Ltd. | 2,099,206 | 5,033,029 | ||||||
Orica Ltd. | 486,146 | 6,104,581 | ||||||
|
| |||||||
11,137,610 | ||||||||
Commercial Services &Supplies— 1.4% | ||||||||
Brambles Ltd. | 2,041,727 | 17,082,421 | ||||||
|
| |||||||
Construction & Engineering— 0.4% | ||||||||
CIMIC Group Ltd. | 125,092 | 4,463,185 | ||||||
|
| |||||||
Construction Materials— 1.0% | ||||||||
Boral Ltd. | 1,504,530 | 5,330,582 | ||||||
James Hardie Industries PLC | 566,009 | 7,103,401 | ||||||
|
| |||||||
12,433,983 | ||||||||
Containers & Packaging— 1.3% | ||||||||
Amcor Ltd./Australia | 1,485,302 | 15,903,609 | ||||||
|
| |||||||
Diversified Financial Services— 0.8% | ||||||||
AMP Ltd. | 3,739,807 | 6,279,219 | ||||||
Challenger Ltd./Australia | 707,601 | 4,052,553 | ||||||
|
| |||||||
10,331,772 | ||||||||
Diversified Telecommunication Services— 1.1% | ||||||||
Telstra Corp. Ltd. | 5,338,557 | 11,888,106 | ||||||
TPG Telecom Ltd. | 474,514 | 2,248,369 | ||||||
|
| |||||||
14,136,475 | ||||||||
Electric Utilities— 0.2% | ||||||||
AusNet Services | 2,304,359 | 2,844,422 | ||||||
|
| |||||||
Energy Equipment &Services— 0.4% | ||||||||
WorleyParsons Ltd. | 412,976 | 4,380,734 | ||||||
|
| |||||||
Equity Real Estate Investment Trusts (REITs)— 6.7% | ||||||||
BGP Holdings PLC(a)(b) | 18,888,372 | 215 | ||||||
Dexus | 1,304,538 | 11,155,926 | ||||||
Goodman Group | 2,093,651 | 19,065,960 | ||||||
GPT Group (The) | 2,315,235 | 9,635,969 | ||||||
Mirvac Group | 4,693,766 | 8,582,207 | ||||||
Scentre Group | 6,818,996 | 18,774,822 | ||||||
Stockland | 3,086,215 | 7,684,908 |
Security | Shares | Value | ||||||
Equity Real Estate Investment Trusts (REITs) (continued) | ||||||||
Vicinity Centres | 4,212,025 | $ | 7,371,748 | |||||
|
| |||||||
82,271,755 | ||||||||
Food &Staples Retailing— 3.7% | ||||||||
Coles Group Ltd.(b) | 1,454,138 | 11,721,413 | ||||||
Woolworths Group Ltd. | 1,684,322 | 34,355,577 | ||||||
|
| |||||||
46,076,990 | ||||||||
Gas Utilities— 0.9% | ||||||||
APA Group | 1,514,880 | 10,788,393 | ||||||
|
| |||||||
Health Care Equipment &Supplies— 0.7% | ||||||||
Cochlear Ltd. | 74,061 | 8,983,765 | ||||||
|
| |||||||
Health Care Providers &Services— 1.5% | ||||||||
Ramsay Health Care Ltd. | 181,175 | 8,349,946 | ||||||
Sonic Healthcare Ltd. | 554,708 | 9,518,887 | ||||||
|
| |||||||
17,868,833 | ||||||||
Hotels, Restaurants & Leisure— 2.4% | ||||||||
Aristocrat Leisure Ltd. | 737,033 | 12,909,797 | ||||||
Crown Resorts Ltd. | 486,098 | 3,963,263 | ||||||
Domino’s Pizza Enterprises Ltd.(c) | 76,408 | 2,242,370 | ||||||
Flight Centre Travel Group Ltd. | 71,077 | 2,314,485 | ||||||
Tabcorp Holdings Ltd. | 2,448,648 | 8,222,669 | ||||||
|
| |||||||
29,652,584 | ||||||||
Insurance— 4.4% | ||||||||
Insurance Australia Group Ltd. | 2,963,448 | 15,496,338 | ||||||
Medibank Pvt Ltd. | 3,529,363 | 7,131,142 | ||||||
QBE Insurance Group Ltd. | 1,703,054 | 14,963,728 | ||||||
Suncorp Group Ltd. | 1,665,315 | 16,053,884 | ||||||
|
| |||||||
53,645,092 | ||||||||
Interactive Media &Services— 0.3% | ||||||||
REA Group Ltd. | 67,815 | 3,934,059 | ||||||
|
| |||||||
IT Services— 0.6% | ||||||||
Computershare Ltd. | 591,085 | 7,254,099 | ||||||
|
| |||||||
Metals & Mining— 15.4% | ||||||||
Alumina Ltd. | 3,141,038 | 5,698,464 | ||||||
BHP Group Ltd. | 3,778,024 | 100,069,604 | ||||||
BlueScope Steel Ltd. | 697,553 | 6,679,850 | ||||||
Fortescue Metals Group Ltd. | 1,995,986 | 8,605,469 | ||||||
Newcrest Mining Ltd. | 984,615 | 17,036,267 | ||||||
Rio Tinto Ltd. | 476,018 | 32,565,838 | ||||||
South32 Ltd. | 6,513,924 | 18,120,237 | ||||||
|
| |||||||
188,775,729 | ||||||||
Multi-Utilities— 1.0% | ||||||||
AGL Energy Ltd. | 841,085 | 12,691,852 | ||||||
|
| |||||||
Multiline Retail— 3.0% | ||||||||
Harvey Norman Holdings Ltd. | 757,083 | 1,939,056 | ||||||
Wesfarmers Ltd. | 1,454,138 | 34,326,256 | ||||||
|
| |||||||
36,265,312 | ||||||||
Oil, Gas &Consumable Fuels— 6.0% | ||||||||
Caltex Australia Ltd. | 334,483 | 6,805,884 | ||||||
Oil Search Ltd. | 1,754,903 | 10,450,162 | ||||||
Origin Energy Ltd.(b) | 2,257,204 | 11,819,335 | ||||||
Santos Ltd. | 2,273,703 | 11,193,973 | ||||||
Washington H Soul Pattinson & Co. Ltd. | 137,728 | 2,883,745 | ||||||
Woodside Petroleum Ltd. | 1,200,598 | 30,963,501 | ||||||
|
| |||||||
74,116,600 |
2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI Australia ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Professional Services — 0.5% | ||||||||
Seek Ltd. | 428,092 | $ | 5,610,107 | |||||
|
| |||||||
Real Estate Management & Development — 0.5% | ||||||||
Lendlease Group | 735,976 | 6,744,099 | ||||||
|
| |||||||
Road & Rail — 0.7% | ||||||||
Aurizon Holdings Ltd. | 2,548,037 | 8,193,861 | ||||||
|
| |||||||
Transportation Infrastructure — 3.1% | ||||||||
Sydney Airport | 1,415,386 | 7,250,231 | ||||||
Transurban Group | 3,427,989 | 30,412,373 | ||||||
|
| |||||||
37,662,604 | ||||||||
|
| |||||||
Total Common Stocks — 98.9% | 1,214,532,751 | |||||||
|
| |||||||
Short-Term Investments | ||||||||
Money Market Funds — 0.2% | ||||||||
BlackRock Cash Funds: Institutional, | 2,223,435 | 2,224,325 |
Security | Shares | Value | ||||||
Money Market Funds (continued) | ||||||||
BlackRock Cash Funds: Treasury, | 663,873 | $ | 663,873 | |||||
|
| |||||||
2,888,198 | ||||||||
|
| |||||||
Total Short-Term Investments — 0.2% | 2,888,198 | |||||||
|
| |||||||
Total Investments in Securities — 99.1% | 1,217,420,949 | |||||||
Other Assets, Less Liabilities — 0.9% | 11,285,700 | |||||||
|
| |||||||
Net Assets — 100.0% | $ | 1,228,706,649 | ||||||
|
|
(a) | Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. |
(b) | Non-income producing security. |
(c) | All or a portion of this security is on loan. |
(d) | Affiliate of the Fund. |
(e) | Annualized7-day yield as ofperiod-end. |
(f) | All or a portion of this security was purchased with cash collateral received from loaned securities. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2019, for purposes of
Section 2(a)(3) of the 1940 Act, were as follows:
| ||||||||||||||||||||||||||||
Affiliated Issuer | | Shares Held at 08/31/18 | | | Net Activity | | | Shares Held at 02/28/19 | | | Value at 02/28/19 | | Income | | Net Realized Gain (Loss) | (a) | | Change in Unrealized Appreciation (Depreciation) | | |||||||||
| ||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, | 5,082,269 | (2,858,834 | ) | 2,223,435 | $ | 2,224,325 | $ | 14,720 | (b) | $ | 663 | $ | (261 | ) | ||||||||||||||
BlackRock Cash Funds: Treasury, | 358,813 | 305,060 | 663,873 | 663,873 | 16,217 | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
$ | 2,888,198 | $ | 30,937 | $ | 663 | $ | (261 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Includes 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, and less fees paid to BTC as securities lending agent. |
Futures Contracts
| ||||||||||||||||
Description | | Number of Contracts | | | Expiration Date | | | Notional Amount (000) | | | Value/ Unrealized Appreciation (Depreciation) | | ||||
| ||||||||||||||||
Long Contracts | ||||||||||||||||
ASX SPI 200 Index | 128 | 03/21/19 | $13,999 | $ | 456,706 | |||||||||||
|
|
Derivative Financial Instruments Categorized by Risk Exposure
As of February 28, 2019, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:
| ||||
| Equity Contracts | | ||
| ||||
Assets — Derivative Financial Instruments | ||||
Futures contracts | ||||
Net unrealized appreciation(a) | $456,706 | |||
|
|
(a) | Represents cumulative appreciation (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. |
S C H E D U L E O F I N V E S T M E N T S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI Australia ETF |
For the six months ended February 28, 2019, the effect of derivative financial instruments in the Statement of Operations was as follows:
| ||||
Equity Contracts | ||||
| ||||
Net Realized Gain (Loss) from: | ||||
Futures contracts | $ | (1,080,414 | ) | |
|
| |||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Futures contracts | $ | 276,271 | ||
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: | ||||
Average notional value of contracts — long | $ | 13,555,449 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
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, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2019. 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 | $ | 1,214,532,536 | $ | — | $ | 215 | $ | 1,214,532,751 | ||||||||
Money Market Funds | 2,888,198 | — | — | 2,888,198 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 1,217,420,734 | $ | — | $ | 215 | $ | 1,217,420,949 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $ | 456,706 | $ | — | $ | — | $ | 456,706 | ||||||||
|
|
|
|
|
|
|
|
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
The Fund had transfers from Level 2 to Level 1 during the six months ended February 28, 2019 in the amount of $ 26,380,384 (the value of the securities as of the beginning of the period), resulting in a difference of valuation methodology, due to a resumption of trading.
See notes to financial statements.
2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) February 28, 2019 | iShares® MSCI Canada ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Aerospace & Defense — 0.8% | ||||||||
Bombardier Inc., Class B(a) | 4,145,489 | $ | 8,813,492 | |||||
CAE Inc. | 522,879 | 11,017,382 | ||||||
|
| |||||||
19,830,874 | ||||||||
Auto Components — 1.3% | ||||||||
Magna International Inc. | 660,431 | 34,821,814 | ||||||
|
| |||||||
Banks — 28.0% | ||||||||
Bank of Montreal | 1,237,543 | 96,428,749 | ||||||
Bank of Nova Scotia (The) | 2,262,876 | 125,669,514 | ||||||
Canadian Imperial Bank of Commerce | 842,382 | 71,400,989 | ||||||
National Bank of Canada | 657,389 | 30,992,622 | ||||||
Royal Bank of Canada | 2,763,712 | 215,829,749 | ||||||
Toronto-Dominion Bank (The) | 3,524,218 | 201,926,720 | ||||||
|
| |||||||
742,248,343 | ||||||||
Capital Markets — 3.2% | ||||||||
Brookfield Asset Management Inc., Class A | 1,612,399 | 72,772,207 | ||||||
CI Financial Corp. | 532,098 | 7,514,824 | ||||||
IGM Financial Inc. | 167,510 | 4,372,812 | ||||||
|
| |||||||
84,659,843 | ||||||||
Chemicals — 2.8% | ||||||||
Methanex Corp. | 130,717 | 7,351,715 | ||||||
Nutrien Ltd. | 1,237,265 | 67,293,312 | ||||||
|
| |||||||
74,645,027 | ||||||||
Construction & Engineering — 0.8% | ||||||||
SNC-Lavalin Group Inc. | 340,765 | 9,405,321 | ||||||
WSP Global Inc. | 201,696 | 10,672,888 | ||||||
|
| |||||||
20,078,209 | ||||||||
Containers & Packaging — 0.4% | ||||||||
CCL Industries Inc., Class B, NVS | 288,107 | 11,760,541 | ||||||
|
| |||||||
Diversified Financial Services — 0.4% | ||||||||
Onex Corp. | 167,701 | 10,078,614 | ||||||
|
| |||||||
Diversified Telecommunication Services — 1.0% | ||||||||
BCE Inc. | 297,007 | 13,197,304 | ||||||
TELUS Corp. | 380,465 | 13,808,829 | ||||||
|
| |||||||
27,006,133 | ||||||||
Electric Utilities — 1.6% | ||||||||
Emera Inc. | 114,634 | 4,075,295 | ||||||
Fortis Inc./Canada | 810,876 | 29,214,933 | ||||||
Hydro One Ltd.(b) | 635,333 | 9,961,751 | ||||||
|
| |||||||
43,251,979 | ||||||||
Equity Real Estate Investment Trusts (REITs) — 0.5% | ||||||||
H&R Real Estate Investment Trust | 280,533 | 4,837,437 | ||||||
RioCan REIT | 307,313 | 5,866,248 | ||||||
SmartCentres Real Estate Investment Trust | 131,954 | 3,382,511 | ||||||
|
| |||||||
14,086,196 | ||||||||
Food & Staples Retailing — 3.8% | ||||||||
Alimentation Couche-Tard Inc., Class B | 830,849 | 46,791,245 | ||||||
Empire Co. Ltd., Class A, NVS | 339,440 | 7,879,029 | ||||||
George Weston Ltd. | 149,360 | 10,637,789 | ||||||
Loblaw Companies Ltd. | 370,776 | 18,451,525 | ||||||
Metro Inc. | 470,264 | 17,660,788 | ||||||
|
| |||||||
101,420,376 | ||||||||
Food Products — 0.6% | ||||||||
Saputo Inc. | 449,388 | 14,634,967 | ||||||
|
|
Security | Shares | Value | ||||||
Gas Utilities — 0.3% | ||||||||
AltaGas Ltd. | 519,872 | $ | 6,978,995 | |||||
|
| |||||||
Hotels, Restaurants & Leisure — 1.2% | ||||||||
Restaurant Brands International Inc. | 446,321 | 28,202,607 | ||||||
Stars Group Inc. (The)(a)(c) | 197,192 | 3,285,036 | ||||||
|
| |||||||
31,487,643 | ||||||||
Insurance — 7.7% | ||||||||
Fairfax Financial Holdings Ltd. | 53,701 | 26,566,296 | ||||||
Great-West Lifeco Inc. | 573,104 | 13,167,902 | ||||||
IA Financial Corp. Inc.(a) | 208,327 | 7,986,659 | ||||||
Intact Financial Corp. | 268,583 | 22,432,901 | ||||||
Manulife Financial Corp. | 3,807,009 | 64,288,444 | ||||||
Power Corp. of Canada | 682,507 | 14,557,040 | ||||||
Power Financial Corp. | 485,531 | 10,827,673 | ||||||
Sun Life Financial Inc. | 1,174,868 | 44,443,374 | ||||||
|
| |||||||
204,270,289 | ||||||||
IT Services — 2.5% | ||||||||
CGI Inc.(a). | 491,137 | 32,902,823 | ||||||
Shopify Inc., Class A(a)(c) | 168,774 | 31,945,317 | ||||||
|
| |||||||
64,848,140 | ||||||||
Media — 0.7% | ||||||||
Shaw Communications Inc., Class B, NVS | 875,783 | 18,047,647 | ||||||
|
| |||||||
Metals & Mining — 6.8% | ||||||||
Agnico Eagle Mines Ltd. | 450,037 | 19,125,718 | ||||||
Barrick Gold Corp. | 3,358,864 | 42,336,479 | ||||||
First Quantum Minerals Ltd. | 1,338,041 | 15,331,085 | ||||||
Franco-Nevada Corp. | 357,628 | 26,921,215 | ||||||
Goldcorp Inc. | 1,673,870 | 17,666,509 | ||||||
Kinross Gold Corp.(a) | 2,428,568 | 8,095,227 | ||||||
Lundin Mining Corp. | 1,291,044 | 6,548,348 | ||||||
Teck Resources Ltd., Class B | 990,928 | 22,188,661 | ||||||
Turquoise Hill Resources Ltd.(a) | 1,982,060 | 3,416,307 | ||||||
Wheaton Precious Metals Corp. | 855,010 | 18,580,399 | ||||||
|
| |||||||
180,209,948 | ||||||||
Multi-Utilities — 0.4% | ||||||||
Atco Ltd./Canada, Class I, NVS | 151,339 | 5,089,449 | ||||||
Canadian Utilities Ltd., Class A, NVS | 254,491 | 6,761,306 | ||||||
|
| |||||||
11,850,755 | ||||||||
Multiline Retail — 1.1% | ||||||||
Canadian Tire Corp. Ltd., Class A, NVS | 121,543 | 13,400,185 | ||||||
Dollarama Inc. | 601,574 | 16,270,361 | ||||||
|
| |||||||
29,670,546 | ||||||||
Oil, Gas & Consumable Fuels — 20.2% | ||||||||
ARC Resources Ltd. | 703,742 | 5,311,463 | ||||||
Cameco Corp. | 771,596 | 8,946,295 | ||||||
Canadian Natural Resources Ltd. | 2,338,043 | 66,359,945 | ||||||
Cenovus Energy Inc. | 2,018,655 | 18,485,178 | ||||||
Enbridge Inc. | 3,452,188 | 127,602,515 | ||||||
Encana Corp. | 2,935,777 | 21,533,490 | ||||||
Husky Energy Inc. | 689,597 | 7,660,444 | ||||||
Imperial Oil Ltd. | 563,252 | 15,238,169 | ||||||
Inter Pipeline Ltd. | 742,217 | 11,925,066 | ||||||
Keyera Corp. | 401,646 | 9,853,593 | ||||||
Pembina Pipeline Corp. | 966,862 | 35,356,168 | ||||||
PrairieSky Royalty Ltd. | 419,450 | 6,105,434 | ||||||
Seven Generations Energy Ltd., Class A(a) | 533,790 | 3,899,058 | ||||||
Suncor Energy Inc. | 3,102,223 | 106,846,496 | ||||||
Tourmaline Oil Corp. | 506,215 | 7,675,864 |
S C H E D U L E O F I N V E S T M E N T S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI Canada ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
| ||||||||
Oil, Gas & Consumable Fuels (continued) | ||||||||
TransCanada Corp. | 1,690,455 | $ | 75,537,796 | |||||
Vermilion Energy Inc. | 284,287 | 7,265,832 | ||||||
|
| |||||||
535,602,806 | ||||||||
Paper & Forest Products — 0.2% | ||||||||
West Fraser Timber Co. Ltd. | 118,646 | 5,835,005 | ||||||
|
| |||||||
Pharmaceuticals — 1.2% | ||||||||
Aurora Cannabis Inc.(a)(c) | 591,594 | 4,456,046 | ||||||
Bausch Health Companies Inc.(a) | 605,950 | 14,382,686 | ||||||
Canopy Growth Corp.(a)(c) | 251,553 | 11,914,864 | ||||||
|
| |||||||
30,753,596 | ||||||||
Professional Services — 0.8% | ||||||||
Thomson Reuters Corp. | 394,256 | 21,422,141 | ||||||
|
| |||||||
Real Estate Management & Development — 0.2% | ||||||||
First Capital Realty Inc. | 332,524 | 5,408,249 | ||||||
|
| |||||||
Road & Rail — 6.6% | ||||||||
Canadian National Railway Co. | 1,370,136 | 117,475,898 | ||||||
Canadian Pacific Railway Ltd. | 277,129 | 57,218,616 | ||||||
|
| |||||||
174,694,514 | ||||||||
Software — 2.3% | ||||||||
BlackBerry Ltd.(a) | 997,688 | 8,666,325 | ||||||
Constellation Software Inc./Canada | 38,805 | 33,110,359 | ||||||
Open Text Corp. | 513,257 | 19,439,073 | ||||||
|
| |||||||
61,215,757 | ||||||||
Textiles, Apparel & Luxury Goods — 0.6% | ||||||||
Gildan Activewear Inc. | 425,784 | 15,214,423 | ||||||
|
| |||||||
Trading Companies & Distributors — 0.2% | ||||||||
Finning International Inc. | 328,663 | 6,121,567 | ||||||
|
|
Security | Shares | Value | ||||||
| ||||||||
Wireless Telecommunication Services — 1.5% | ||||||||
Rogers Communications Inc., Class B, NVS | 696,450 | $ | 38,450,174 | |||||
|
| |||||||
Total Common Stocks — 99.7% |
| 2,640,605,111 | ||||||
|
| |||||||
Short-Term Investments |
| |||||||
Money Market Funds — 1.5% | ||||||||
BlackRock Cash Funds: Institutional, | 40,196,185 | 40,212,263 | ||||||
BlackRock Cash Funds: Treasury, | 1,384,636 | 1,384,636 | ||||||
|
| |||||||
41,596,899 | ||||||||
|
| |||||||
Total Short-Term Investments — 1.5% |
| 41,596,899 | ||||||
|
| |||||||
Total Investments in Securities — 101.2% |
| 2,682,202,010 | ||||||
Other Assets, Less Liabilities — (1.2)% |
| (32,914,482 | ) | |||||
|
| |||||||
Net Assets — 100.0% | $ | 2,649,287,528 | ||||||
|
|
(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) | Annualized7-day yield as ofperiod-end. |
(f) | All or a portion of this security was purchased with cash collateral received from loaned securities. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2019, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
| ||||||||||||||||||||||||||||
Affiliated Issuer | | Shares Held at 08/31/18 | | Net Activity | | Shares Held at 02/28/19 | | | Value at 02/28/19 | | Income | | Net Realized Gain (Loss) | (a) | | Change in Unrealized Appreciation (Depreciation) |
| |||||||||||
| ||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, | 13,326,671 | 26,869,514 | 40,196,185 | $ | 40,212,263 | $ | 334,564 | (b) | $ | (2,418 | ) | $ | 6,308 | |||||||||||||||
BlackRock Cash Funds: Treasury, | 840,722 | 543,914 | 1,384,636 | 1,384,636 | 22,040 | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
$ | 41,596,899 | $ | 356,604 | $ | (2,418 | ) | $ | 6,308 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Includes 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, and less fees paid to BTC as securities lending agent. |
Futures Contracts
| ||||||||||||||||
Description | Number of Contracts | Expiration Date | Notional Amount (000) | Value/ Unrealized Appreciation (Depreciation) | ||||||||||||
| ||||||||||||||||
Long Contracts | ||||||||||||||||
S&P/TSX 60 Index | 53 | 03/14/19 | $ | 7,665 | $ | 400,683 | ||||||||||
|
|
2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI Canada ETF |
Derivative Financial Instruments Categorized by Risk Exposure
As of February 28, 2019, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:
| ||||
Equity Contracts | ||||
| ||||
Assets — Derivative Financial Instruments | ||||
Futures contracts | ||||
Net unrealized appreciation(a) | $ | 400,683 | ||
|
|
(a) | Represents cumulative appreciation (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. |
For the six months ended February 28, 2019, the effect of derivative financial instruments in the Statement of Operations was as follows:
| ||||
Equity Contracts | ||||
| ||||
Net Realized Gain (Loss) from: | ||||
Futures contracts | $ | (617,089 | ) | |
|
| |||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Futures contracts | $ | 388,785 | ||
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: | ||||
Average notional value of contracts — long | $ | 10,028,165 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
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, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2019. 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 | $ | 2,640,605,111 | $ | — | $ | — | $ | 2,640,605,111 | ||||||||
Money Market Funds | 41,596,899 | — | — | 41,596,899 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 2,682,202,010 | $ | — | $ | — | $ | 2,682,202,010 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $ | 400,683 | $ | — | $ | — | $ | 400,683 | ||||||||
|
|
|
|
|
|
|
|
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
S C H E D U L E O F I N V E S T M E N T S |
Schedule of Investments (unaudited) February 28, 2019 | iShares® MSCI Japan ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
| |||||||
Air Freight & Logistics — 0.3% | ||||||||
SG Holdings Co. Ltd. | 413,600 | $ | 12,112,253 | |||||
Yamato Holdings Co. Ltd. | 1,490,600 | 38,818,266 | ||||||
|
| |||||||
50,930,519 | ||||||||
Airlines — 0.3% | ||||||||
ANA Holdings Inc. | 572,400 | 21,246,468 | ||||||
Japan Airlines Co. Ltd. | 572,400 | 20,901,958 | ||||||
|
| |||||||
42,148,426 | ||||||||
Auto Components — 2.7% | ||||||||
Aisin Seiki Co. Ltd. | 769,000 | 30,015,316 | ||||||
Bridgestone Corp. | 2,888,700 | 113,996,219 | ||||||
Denso Corp. | 2,098,800 | 90,158,656 | ||||||
Koito Manufacturing Co. Ltd. | 520,400 | 30,105,785 | ||||||
NGK Spark Plug Co. Ltd. | 758,300 | 16,116,940 | ||||||
Stanley Electric Co. Ltd. | 573,400 | 16,482,932 | ||||||
Sumitomo Electric Industries Ltd. | 3,434,400 | 47,789,127 | ||||||
Sumitomo Rubber Industries Ltd. | 765,100 | 9,835,233 | ||||||
Toyoda Gosei Co. Ltd. | 348,100 | 7,886,348 | ||||||
Toyota Industries Corp. | 763,200 | 39,147,251 | ||||||
Yokohama Rubber Co. Ltd. (The) | 572,400 | 11,677,330 | ||||||
|
| |||||||
413,211,137 | ||||||||
Automobiles — 7.9% | ||||||||
Honda Motor Co. Ltd. | 7,632,000 | 216,166,870 | ||||||
Isuzu Motors Ltd. | 2,480,400 | 35,550,469 | ||||||
Mazda Motor Corp. | 2,666,800 | 31,322,682 | ||||||
Mitsubishi Motors Corp. | 3,017,700 | 16,942,710 | ||||||
Nissan Motor Co. Ltd. | 10,862,200 | 93,907,485 | ||||||
Subaru Corp. | 2,928,100 | 74,346,700 | ||||||
Suzuki Motor Corp. | 1,639,900 | 83,983,740 | ||||||
Toyota Motor Corp. | 10,735,200 | 645,828,552 | ||||||
Yamaha Motor Co. Ltd. | 1,331,800 | 27,002,090 | ||||||
|
| |||||||
1,225,051,298 | ||||||||
Banks — 6.1% | ||||||||
Aozora Bank Ltd. | 572,400 | 16,505,605 | ||||||
Bank of Kyoto Ltd. (The) | 262,100 | 11,737,051 | ||||||
Chiba Bank Ltd. (The) | 2,864,400 | 17,394,308 | ||||||
Concordia Financial Group Ltd. | 5,151,600 | 20,871,107 | ||||||
Fukuoka Financial Group Inc. | 729,500 | 15,780,057 | ||||||
Japan Post Bank Co. Ltd. | 1,718,200 | 19,185,435 | ||||||
Mebuki Financial Group Inc. | 3,625,280 | 9,802,455 | ||||||
Mitsubishi UFJ Financial Group Inc. | 55,332,180 | 286,651,709 | ||||||
Mizuho Financial Group Inc. | 112,953,780 | 177,771,310 | ||||||
Resona Holdings Inc. | 9,541,000 | 43,136,771 | ||||||
Seven Bank Ltd. | 2,657,600 | 7,758,893 | ||||||
Shinsei Bank Ltd. | 755,500 | 10,376,927 | ||||||
Shizuoka Bank Ltd. (The) | 2,077,000 | 16,400,314 | ||||||
Sumitomo Mitsui Financial Group Inc. | 6,296,400 | 222,964,506 | ||||||
Sumitomo Mitsui Trust Holdings Inc. | 1,555,232 | 58,942,902 | ||||||
Yamaguchi Financial Group Inc. | 839,400 | 7,826,960 | ||||||
|
| |||||||
943,106,310 | ||||||||
Beverages — 1.3% | ||||||||
Asahi Group Holdings Ltd. | 1,717,200 | 74,151,818 | ||||||
Coca-Cola Bottlers Japan Holdings Inc. | 629,500 | 16,218,164 | ||||||
Kirin Holdings Co. Ltd. | 3,939,300 | 88,078,672 | ||||||
Suntory Beverage & Food Ltd. | 638,700 | 28,171,191 | ||||||
|
| |||||||
206,619,845 | ||||||||
Building Products — 1.3% | ||||||||
AGC Inc./Japan | 917,400 | 31,810,672 |
Security | Shares | Value | ||||||
Building Products (continued) | ||||||||
Daikin Industries Ltd. | 1,179,500 | $ | 128,100,566 | |||||
LIXIL Group Corp. | 1,286,200 | 17,435,104 | ||||||
TOTO Ltd. | 674,300 | 25,531,571 | ||||||
|
| |||||||
202,877,913 | ||||||||
Capital Markets — 1.1% | ||||||||
Daiwa Securities Group Inc. | 7,552,300 | 38,365,304 | ||||||
Japan Exchange Group Inc. | 2,264,400 | 39,970,769 | ||||||
Nomura Holdings Inc. | 16,245,200 | 62,838,512 | ||||||
SBI Holdings Inc./Japan | 1,087,110 | 22,890,638 | ||||||
|
| |||||||
164,065,223 | ||||||||
Chemicals — 4.0% | ||||||||
Air Water Inc. | 756,900 | 12,075,588 | ||||||
Asahi Kasei Corp. | 5,842,900 | 63,719,732 | ||||||
Daicel Corp. | 1,144,800 | 12,052,691 | ||||||
Hitachi Chemical Co. Ltd. | 403,100 | 7,321,849 | ||||||
JSR Corp. | 941,500 | 15,612,729 | ||||||
Kaneka Corp. | 248,000 | 9,702,120 | ||||||
Kansai Paint Co. Ltd. | 786,900 | 14,469,856 | ||||||
Kuraray Co. Ltd. | 1,521,200 | 20,415,674 | ||||||
Mitsubishi Chemical Holdings Corp. | 5,874,800 | 43,374,938 | ||||||
Mitsubishi Gas Chemical Co. Inc. | 779,500 | 11,917,975 | ||||||
Mitsui Chemicals Inc. | 844,500 | 20,581,463 | ||||||
Nippon Paint Holdings Co. Ltd.(a) | 724,900 | 27,870,751 | ||||||
Nissan Chemical Corp. | 582,900 | 29,427,758 | ||||||
Nitto Denko Corp. | 779,600 | 41,613,216 | ||||||
Shin-Etsu Chemical Co. Ltd. | 1,735,100 | 144,503,343 | ||||||
Showa Denko KK | 637,100 | 23,722,417 | ||||||
Sumitomo Chemical Co. Ltd. | 6,679,000 | 33,119,008 | ||||||
Taiyo Nippon Sanso Corp. | 583,000 | 8,238,044 | ||||||
Teijin Ltd. | 732,400 | 12,283,424 | ||||||
Toray Industries Inc. | 6,487,200 | 45,192,451 | ||||||
Tosoh Corp. | 1,285,400 | 18,971,543 | ||||||
|
| |||||||
616,186,570 | ||||||||
Commercial Services & Supplies — 1.0% | ||||||||
Dai Nippon Printing Co. Ltd. | 1,159,400 | 26,849,921 | ||||||
Park24 Co. Ltd. | 572,400 | 13,749,529 | ||||||
Secom Co. Ltd. | 963,100 | 83,228,728 | ||||||
Sohgo Security Services Co. Ltd. | 381,600 | 16,488,466 | ||||||
Toppan Printing Co. Ltd. | 1,194,100 | 19,007,772 | ||||||
|
| |||||||
159,324,416 | ||||||||
Construction & Engineering — 0.9% | ||||||||
JGC Corp. | 953,000 | 13,860,106 | ||||||
Kajima Corp. | 2,100,400 | 31,094,675 | ||||||
Obayashi Corp. | 3,050,100 | 29,728,337 | ||||||
Shimizu Corp. | 2,480,400 | 21,791,513 | ||||||
Taisei Corp. | 999,500 | 47,227,542 | ||||||
|
| |||||||
143,702,173 | ||||||||
Construction Materials — 0.1% | ||||||||
Taiheiyo Cement Corp. | 572,400 | 19,565,056 | ||||||
|
| |||||||
Consumer Finance — 0.2% | ||||||||
Acom Co. Ltd. | 1,529,600 | 5,235,157 | ||||||
AEON Financial Service Co. Ltd. | 572,470 | 11,257,068 | ||||||
Credit Saison Co. Ltd. | 764,400 | 11,096,572 | ||||||
|
| |||||||
27,588,797 | ||||||||
Containers & Packaging — 0.1% | ||||||||
Toyo Seikan Group Holdings Ltd. | 756,900 | 15,998,794 | ||||||
|
|
2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI Japan ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Diversified Consumer Services — 0.1% | ||||||||
Benesse Holdings Inc. | 381,600 | $ | 10,369,565 | |||||
|
| |||||||
Diversified Financial Services — 0.7% | ||||||||
Mitsubishi UFJ Lease & Finance Co. Ltd. | 1,889,000 | 9,621,479 | ||||||
ORIX Corp. | 6,105,600 | 88,413,827 | ||||||
Tokyo Century Corp. | 196,200 | 8,750,745 | ||||||
|
| |||||||
106,786,051 | ||||||||
Diversified Telecommunication Services — 0.8% | ||||||||
Nippon Telegraph & Telephone Corp. | 2,972,800 | 128,210,679 | ||||||
|
| |||||||
Electric Utilities — 1.3% | ||||||||
Chubu Electric Power Co. Inc. | 2,847,000 | 44,820,046 | ||||||
Chugoku Electric Power Co. Inc. (The) | 1,331,800 | 17,311,486 | ||||||
Kansai Electric Power Co. Inc. (The) | 3,384,700 | 50,639,758 | ||||||
Kyushu Electric Power Co. Inc. | 1,710,600 | 20,345,261 | ||||||
Tohoku Electric Power Co. Inc. | 2,081,600 | 27,300,898 | ||||||
Tokyo Electric Power Co. Holdings Inc.(b) | 6,740,000 | 42,019,044 | ||||||
|
| |||||||
202,436,493 | ||||||||
Electrical Equipment — 1.6% | ||||||||
Fuji Electric Co. Ltd. | 572,400 | 17,996,766 | ||||||
Mitsubishi Electric Corp. | 8,315,500 | 104,130,498 | ||||||
Nidec Corp. | 1,074,200 | 130,029,150 | ||||||
|
| |||||||
252,156,414 | ||||||||
Electronic Equipment, Instruments & Components — 5.6% | ||||||||
Alps Alpine Co. Ltd. | 1,032,100 | 20,276,704 | ||||||
Hamamatsu Photonics KK | 583,200 | 20,536,687 | ||||||
Hirose Electric Co. Ltd. | 167,658 | 17,244,737 | ||||||
Hitachi High-Technologies Corp. | 347,000 | 13,201,087 | ||||||
Hitachi Ltd. | 4,581,200 | 137,246,694 | ||||||
Keyence Corp. | 466,152 | 271,894,083 | ||||||
Kyocera Corp. | 1,526,400 | 84,204,298 | ||||||
Murata Manufacturing Co. Ltd. | 862,900 | 134,295,208 | ||||||
Nippon Electric Glass Co. Ltd. | 385,700 | 10,429,006 | ||||||
Omron Corp. | 954,000 | 41,178,315 | ||||||
Shimadzu Corp. | 1,090,100 | 26,880,385 | ||||||
TDK Corp. | 612,100 | 47,837,496 | ||||||
Yaskawa Electric Corp. | 1,142,400 | 32,480,201 | ||||||
Yokogawa Electric Corp. | 926,200 | 17,838,419 | ||||||
|
| |||||||
875,543,320 | ||||||||
Entertainment — 1.5% | ||||||||
DeNA Co. Ltd. | 557,300 | 8,585,784 | ||||||
Konami Holdings Corp. | 431,700 | 17,819,453 | ||||||
Nexon Co. Ltd.(b) | 2,101,200 | 33,352,681 | ||||||
Nintendo Co. Ltd. | 544,300 | 148,836,615 | ||||||
Toho Co. Ltd./Tokyo | 572,400 | 20,464,894 | ||||||
|
| |||||||
229,059,427 | ||||||||
Equity Real Estate Investment Trusts (REITs) — 1.3% | ||||||||
Daiwa House REIT Investment Corp. | 7,644 | 17,056,860 | ||||||
Japan Prime Realty Investment Corp. | 3,816 | 14,980,165 | ||||||
Japan Real Estate Investment Corp. | 6,036 | 34,973,230 | ||||||
Japan Retail Fund Investment Corp. | 11,448 | 23,076,996 | ||||||
Nippon Building Fund Inc. | 6,259 | 40,763,340 | ||||||
Nippon Prologis REIT Inc. | 7,644 | 16,260,324 | ||||||
Nomura Real Estate Master Fund Inc. | 19,068 | 26,138,850 | ||||||
United Urban Investment Corp. | 13,247 | 20,539,276 | ||||||
|
| |||||||
193,789,041 | ||||||||
Food & Staples Retailing — 1.9% | ||||||||
Aeon Co. Ltd. | 2,671,200 | 56,293,884 | ||||||
FamilyMart UNY Holdings Co. Ltd. | 1,218,800 | 34,761,858 |
Security | Shares | Value | ||||||
Food & Staples Retailing (continued) | ||||||||
Lawson Inc. | 233,400 | $ | 14,152,443 | |||||
Seven & i Holdings Co. Ltd. | 3,625,280 | 159,379,449 | ||||||
Sundrug Co. Ltd. | 365,700 | 11,202,273 | ||||||
Tsuruha Holdings Inc. | 190,800 | 16,899,820 | ||||||
Welcia Holdings Co. Ltd. | 202,500 | 7,185,367 | ||||||
|
| |||||||
299,875,094 | ||||||||
Food Products — 1.5% | ||||||||
Ajinomoto Co. Inc. | 2,098,800 | 31,749,723 | ||||||
Calbee Inc. | 382,600 | 10,602,956 | ||||||
Kikkoman Corp. | 714,600 | 35,563,097 | ||||||
MEIJI Holdings Co. Ltd. | 580,056 | 45,958,443 | ||||||
NH Foods Ltd. | 442,700 | 16,165,788 | ||||||
Nisshin Seifun Group Inc. | 763,275 | 16,373,524 | ||||||
Nissin Foods Holdings Co. Ltd. | 281,500 | 19,547,206 | ||||||
Toyo Suisan Kaisha Ltd. | 387,900 | 14,391,188 | ||||||
Yakult Honsha Co. Ltd. | 572,400 | 38,410,241 | ||||||
Yamazaki Baking Co. Ltd. | 575,000 | 9,845,041 | ||||||
|
| |||||||
238,607,207 | ||||||||
Gas Utilities — 0.6% | ||||||||
Osaka Gas Co. Ltd. | 1,725,700 | 35,344,916 | ||||||
Toho Gas Co. Ltd. | 381,600 | 17,345,455 | ||||||
Tokyo Gas Co. Ltd. | 1,717,200 | 47,280,075 | ||||||
|
| |||||||
99,970,446 | ||||||||
Health Care Equipment & Supplies — 2.1% | ||||||||
Asahi Intecc Co. Ltd. | 442,100 | 21,247,170 | ||||||
Hoya Corp. | 1,835,100 | 112,179,802 | ||||||
Olympus Corp. | 1,352,300 | 59,828,221 | ||||||
Sysmex Corp. | 793,200 | 47,733,083 | ||||||
Terumo Corp. | 1,470,600 | 90,096,047 | ||||||
|
| |||||||
331,084,323 | ||||||||
Health Care Providers & Services — 0.4% | ||||||||
Alfresa Holdings Corp. | 933,100 | 27,032,407 | ||||||
Medipal Holdings Corp. | 764,400 | 17,825,929 | ||||||
Suzuken Co. Ltd./Aichi Japan | 381,640 | 20,912,720 | ||||||
|
| |||||||
65,771,056 | ||||||||
Health Care Technology — 0.2% | ||||||||
M3 Inc. | 1,836,500 | 30,454,357 | ||||||
|
| |||||||
Hotels, Restaurants & Leisure — 0.8% | ||||||||
McDonald’s Holdings Co. Japan Ltd. | 381,600 | 17,105,497 | ||||||
Oriental Land Co. Ltd./Japan(a) | 954,000 | 104,809,738 | ||||||
|
| |||||||
121,915,235 | ||||||||
Household Durables — 3.4% | ||||||||
Casio Computer Co. Ltd. | 753,600 | 10,228,976 | ||||||
Iida Group Holdings Co. Ltd. | 745,780 | 13,626,631 | ||||||
Nikon Corp. | 1,521,200 | 23,039,375 | ||||||
Panasonic Corp. | 10,113,415 | 93,121,185 | ||||||
Rinnai Corp. | 190,800 | 12,837,693 | ||||||
Sekisui Chemical Co. Ltd. | 1,710,600 | 26,845,295 | ||||||
Sekisui House Ltd. | 2,906,200 | 43,689,595 | ||||||
Sharp Corp./Japan | 988,600 | 11,562,677 | ||||||
Sony Corp. | 6,053,300 | 290,430,069 | ||||||
|
| |||||||
525,381,496 | ||||||||
Household Products — 0.7% | ||||||||
Lion Corp. | 1,106,300 | 22,688,492 | ||||||
Pigeon Corp. | 572,400 | 23,344,377 | ||||||
Unicharm Corp. | 1,908,400 | 60,773,248 | ||||||
|
| |||||||
106,806,117 |
S C H E D U L E O F I N V E S T M E N T S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI Japan ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Independent Power and Renewable Electricity Producers — 0.1% | ||||||||
Electric Power Development Co. Ltd. | 741,700 | $ | 18,549,163 | |||||
|
| |||||||
Industrial Conglomerates — 0.7% | ||||||||
Keihan Holdings Co. Ltd. | 381,600 | 15,802,874 | ||||||
Toshiba Corp. | 3,104,500 | 97,329,366 | ||||||
|
| |||||||
113,132,240 | ||||||||
Insurance — 3.2% | ||||||||
Dai-ichi Life Holdings Inc. | 5,140,600 | 77,834,004 | ||||||
Japan Post Holdings Co. Ltd. | 7,338,800 | 89,328,728 | ||||||
MS&AD Insurance Group Holdings Inc. | 2,270,140 | 68,173,536 | ||||||
Sompo Holdings Inc. | 1,526,450 | 57,001,910 | ||||||
Sony Financial Holdings Inc. | 782,500 | 14,796,645 | ||||||
T&D Holdings Inc. | 2,657,000 | 31,899,753 | ||||||
Tokio Marine Holdings Inc. | 3,174,800 | 154,747,258 | ||||||
|
| |||||||
493,781,834 | ||||||||
Interactive Media & Services — 0.4% | ||||||||
Kakaku.com Inc. | 575,000 | 11,058,884 | ||||||
LINE Corp.(a)(b) | 357,100 | 13,184,342 | ||||||
Yahoo Japan Corp. | 12,975,400 | 34,734,722 | ||||||
|
| |||||||
58,977,948 | ||||||||
Internet & Direct Marketing Retail — 0.3% | ||||||||
Rakuten Inc.(a) | 4,006,800 | 31,530,334 | ||||||
ZOZO Inc. | 959,000 | 18,056,630 | ||||||
|
| |||||||
49,586,964 | ||||||||
IT Services — 1.1% | ||||||||
Fujitsu Ltd. | 954,000 | 64,351,294 | ||||||
Nomura Research Institute Ltd. | 572,404 | 23,293,120 | ||||||
NTT Data Corp. | 2,862,000 | 31,288,663 | ||||||
Obic Co. Ltd. | 343,000 | 32,753,234 | ||||||
Otsuka Corp. | 434,900 | 15,646,555 | ||||||
|
| |||||||
167,332,866 | ||||||||
Leisure Products — 0.9% | ||||||||
Bandai Namco Holdings Inc. | 954,098 | 40,625,445 | ||||||
Sankyo Co. Ltd. | 190,800 | 7,027,309 | ||||||
Sega Sammy Holdings Inc. | 775,000 | 9,022,637 | ||||||
Shimano Inc. | 368,300 | 55,946,398 | ||||||
Yamaha Corp. | 611,500 | 30,102,587 | ||||||
|
| |||||||
142,724,376 | ||||||||
Machinery — 5.1% | ||||||||
Amada Holdings Co. Ltd. | 1,531,700 | 16,112,295 | ||||||
Daifuku Co. Ltd. | 478,800 | 23,484,082 | ||||||
FANUC Corp. | 930,200 | 154,086,310 | ||||||
Hino Motors Ltd. | 1,146,400 | 10,535,099 | ||||||
Hitachi Construction Machinery Co. Ltd. | 537,100 | 13,408,201 | ||||||
Hoshizaki Corp. | 256,400 | 17,366,655 | ||||||
IHI Corp. | 719,500 | 18,976,392 | ||||||
JTEKT Corp. | 953,000 | 11,814,050 | ||||||
Kawasaki Heavy Industries Ltd. | 715,100 | 18,372,134 | ||||||
Komatsu Ltd. | 4,388,700 | 107,667,442 | ||||||
Kubota Corp. | 4,538,300 | 61,254,004 | ||||||
Kurita Water Industries Ltd. | 385,600 | 9,712,742 | ||||||
Makita Corp. | 1,091,300 | 38,673,900 | ||||||
MINEBEA MITSUMI Inc. | 1,717,200 | 27,550,478 | ||||||
MISUMI Group Inc. | 1,331,800 | 32,313,976 | ||||||
Mitsubishi Heavy Industries Ltd. | 1,470,000 | 59,832,645 | ||||||
Nabtesco Corp. | 557,000 | 14,705,560 | ||||||
NGK Insulators Ltd. | 1,142,400 | 17,435,659 | ||||||
NSK Ltd. | 1,699,100 | 15,614,259 | ||||||
SMC Corp./Japan | 275,600 | 95,935,142 |
Security | Shares | Value | ||||||
Machinery (continued) | ||||||||
Sumitomo Heavy Industries Ltd. | 557,400 | $ | 19,077,380 | |||||
THK Co. Ltd. | 572,400 | 14,068,329 | ||||||
|
| |||||||
797,996,734 | ||||||||
Marine — 0.2% | ||||||||
Mitsui OSK Lines Ltd. | 563,300 | 13,207,088 | ||||||
Nippon Yusen KK | 751,400 | 11,846,092 | ||||||
|
| |||||||
25,053,180 | ||||||||
Media — 0.5% | ||||||||
CyberAgent Inc. | 485,600 | 15,115,020 | ||||||
Dentsu Inc. | 1,022,400 | 42,707,150 | ||||||
Hakuhodo DY Holdings Inc. | 954,000 | 14,628,800 | ||||||
|
| |||||||
72,450,970 | ||||||||
Metals & Mining — 1.2% | ||||||||
Hitachi Metals Ltd. | 976,600 | 9,948,476 | ||||||
JFE Holdings Inc. | 2,345,650 | 40,909,805 | ||||||
Kobe Steel Ltd. | 1,494,600 | 11,828,446 | ||||||
Maruichi Steel Tube Ltd. | 247,200 | 7,439,095 | ||||||
Mitsubishi Materials Corp. | 535,100 | 14,709,001 | ||||||
Nippon Steel & Sumitomo Metal Corp. | 3,859,470 | 69,461,446 | ||||||
Sumitomo Metal Mining Co. Ltd. | 1,128,500 | 33,088,609 | ||||||
|
| |||||||
187,384,878 | ||||||||
Multiline Retail — 0.7% | ||||||||
Isetan Mitsukoshi Holdings Ltd. | 1,534,960 | 15,250,321 | ||||||
J Front Retailing Co. Ltd. | 1,129,500 | 12,510,542 | ||||||
Marui Group Co. Ltd. | 763,200 | 13,430,729 | ||||||
Pan Pacific International Holdings Corp.(a) | 572,400 | 34,142,436 | ||||||
Ryohin Keikaku Co. Ltd. | 119,600 | 28,385,124 | ||||||
Takashimaya Co. Ltd. | 706,000 | 9,291,143 | ||||||
|
| |||||||
113,010,295 | ||||||||
Oil, Gas & Consumable Fuels — 1.0% | ||||||||
Idemitsu Kosan Co. Ltd. | 646,400 | 22,936,400 | ||||||
Inpex Corp. | 4,896,800 | 47,639,547 | ||||||
JXTG Holdings Inc. | 15,264,095 | 71,397,900 | ||||||
Showa Shell Sekiyu KK | 918,500 | 13,779,150 | ||||||
|
| |||||||
155,752,997 | ||||||||
Paper & Forest Products — 0.2% | ||||||||
Oji Holdings Corp. | 3,963,200 | 23,568,437 | ||||||
|
| |||||||
Personal Products — 2.3% | ||||||||
Kao Corp. | 2,364,400 | 178,922,975 | ||||||
Kobayashi Pharmaceutical Co. Ltd. | 222,600 | 17,956,773 | ||||||
Kose Corp. | 148,000 | 23,957,600 | ||||||
Pola Orbis Holdings Inc. | 409,500 | 11,495,576 | ||||||
Shiseido Co. Ltd. | 1,814,200 | 119,751,541 | ||||||
|
| |||||||
352,084,465 | ||||||||
Pharmaceuticals — 6.5% | ||||||||
Astellas Pharma Inc. | 8,587,050 | 132,562,392 | ||||||
Chugai Pharmaceutical Co. Ltd. | 1,086,200 | 73,863,942 | ||||||
Daiichi Sankyo Co. Ltd. | 2,694,069 | 100,846,079 | ||||||
Eisai Co. Ltd. | 1,203,400 | 99,400,494 | ||||||
Hisamitsu Pharmaceutical Co. Inc. | 258,000 | 12,747,036 | ||||||
Kyowa Hakko Kirin Co. Ltd. | 1,172,600 | 22,394,427 | ||||||
Mitsubishi Tanabe Pharma Corp. | 1,142,400 | 16,481,265 | ||||||
Ono Pharmaceutical Co. Ltd. | 1,830,200 | 37,624,979 | ||||||
Otsuka Holdings Co. Ltd. | 1,908,000 | 79,562,846 | ||||||
Santen Pharmaceutical Co. Ltd. | 1,518,600 | 23,668,442 | ||||||
Shionogi & Co. Ltd. | 1,335,600 | 85,376,658 | ||||||
Sumitomo Dainippon Pharma Co. Ltd. | 764,400 | 18,862,799 |
2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI Japan ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Pharmaceuticals (continued) | ||||||||
Taisho Pharmaceutical Holdings Co. Ltd. | 190,800 | $ | 19,316,529 | |||||
Takeda Pharmaceutical Co. Ltd. | 7,059,600 | 283,411,358 | ||||||
|
| |||||||
1,006,119,246 | ||||||||
Professional Services — 1.0% | ||||||||
Persol Holdings Co. Ltd. | 810,000 | 13,883,219 | ||||||
Recruit Holdings Co. Ltd. | 5,151,600 | 144,107,819 | ||||||
|
| |||||||
157,991,038 | ||||||||
Real Estate Management & Development — 2.8% | ||||||||
Aeon Mall Co. Ltd. | 535,200 | 8,730,895 | ||||||
Daito Trust Construction Co. Ltd. | 352,900 | 48,931,113 | ||||||
Daiwa House Industry Co. Ltd. | 2,682,400 | 83,011,750 | ||||||
Hulic Co. Ltd. | 1,331,800 | 12,238,874 | ||||||
Mitsubishi Estate Co. Ltd. | 5,343,400 | 91,824,687 | ||||||
Mitsui Fudosan Co. Ltd. | 4,227,000 | 100,150,130 | ||||||
Nomura Real Estate Holdings Inc. | 575,000 | 10,893,595 | ||||||
Sumitomo Realty & Development Co. Ltd. | 1,717,200 | 64,233,029 | ||||||
Tokyu Fudosan Holdings Corp. | 2,739,200 | 15,133,022 | ||||||
|
| |||||||
435,147,095 | ||||||||
Road & Rail — 4.4% | ||||||||
Central Japan Railway Co. | 686,500 | 154,018,483 | ||||||
East Japan Railway Co. | 1,480,200 | 141,743,909 | ||||||
Hankyu Hanshin Holdings Inc. | 1,130,200 | 41,016,960 | ||||||
Keikyu Corp.(a) | 1,101,000 | 18,257,690 | ||||||
Keio Corp. | 532,000 | 31,254,761 | ||||||
Keisei Electric Railway Co. Ltd. | 590,500 | 20,157,204 | ||||||
Kintetsu Group Holdings Co. Ltd. | 825,100 | 37,282,187 | ||||||
Kyushu Railway Co. | 764,400 | 26,162,091 | ||||||
Nagoya Railroad Co. Ltd. | 877,600 | 24,163,169 | ||||||
Nippon Express Co. Ltd. | 381,600 | 22,521,667 | ||||||
Odakyu Electric Railway Co. Ltd. | 1,331,800 | 31,117,605 | ||||||
Seibu Holdings Inc. | 1,113,400 | 19,783,554 | ||||||
Tobu Railway Co. Ltd. | 953,000 | 26,624,416 | ||||||
Tokyu Corp. | 2,297,600 | 38,946,921 | ||||||
West Japan Railway Co. | 763,200 | 57,527,948 | ||||||
|
| |||||||
690,578,565 | ||||||||
Semiconductors & Semiconductor Equipment — 1.2% | ||||||||
Disco Corp. | 142,300 | 19,609,073 | ||||||
Renesas Electronics Corp.(b) | 3,816,000 | 22,350,269 | ||||||
Rohm Co. Ltd. | 440,800 | 27,837,082 | ||||||
SUMCO Corp. | 1,123,700 | 14,263,278 | ||||||
Tokyo Electron Ltd. | 763,252 | 103,874,127 | ||||||
|
| |||||||
187,933,829 | ||||||||
Software — 0.3% | ||||||||
Oracle Corp. Japan | 190,800 | 14,243,155 | ||||||
Trend Micro Inc./Japan | 572,400 | 28,229,213 | ||||||
|
| |||||||
42,472,368 | ||||||||
Specialty Retail — 1.6% | ||||||||
ABC-Mart Inc. | 190,800 | 10,935,178 | ||||||
Fast Retailing Co. Ltd. | 281,000 | 131,665,110 | ||||||
Hikari Tsushin Inc. | 99,600 | 17,849,623 | ||||||
Nitori Holdings Co. Ltd. | 381,600 | 47,597,161 | ||||||
Shimamura Co. Ltd. | 108,100 | 9,137,810 | ||||||
USS Co. Ltd. | 953,100 | 17,363,338 | ||||||
Yamada Denki Co. Ltd.(a) | 2,654,800 | 12,830,420 | ||||||
|
| |||||||
247,378,640 | ||||||||
Technology Hardware, Storage & Peripherals — 2.2% | ||||||||
Brother Industries Ltd. | 954,000 | 17,439,723 |
Security | Shares | Value | ||||||
Technology Hardware, Storage & Peripherals (continued) | ||||||||
Canon Inc. | 4,579,250 | $ | 131,676,062 | |||||
FUJIFILM Holdings Corp. | 1,860,500 | 83,414,979 | ||||||
Konica Minolta Inc. | 2,089,400 | 20,270,859 | ||||||
NEC Corp. | 1,270,200 | 42,389,445 | ||||||
Ricoh Co. Ltd. | 3,052,800 | 30,988,717 | ||||||
Seiko Epson Corp. | 1,331,800 | 19,692,264 | ||||||
|
| |||||||
345,872,049 | ||||||||
Textiles, Apparel & Luxury Goods — 0.1% | ||||||||
Asics Corp. | 764,400 | 10,176,435 | ||||||
|
| |||||||
Tobacco — 0.8% | ||||||||
Japan Tobacco Inc. | 5,151,600 | 131,103,870 | ||||||
|
| |||||||
Trading Companies & Distributors — 3.8% | ||||||||
ITOCHU Corp. | 6,487,200 | 116,433,935 | ||||||
Marubeni Corp. | 7,251,400 | 51,766,866 | ||||||
Mitsubishi Corp. | 6,296,400 | 177,545,810 | ||||||
Mitsui & Co. Ltd. | 7,822,800 | 122,977,902 | ||||||
MonotaRO Co. Ltd.(a) | 574,400 | 13,549,896 | ||||||
Sumitomo Corp. | 5,117,200 | 73,572,391 | ||||||
Toyota Tsusho Corp. | 981,000 | 31,151,949 | ||||||
|
| |||||||
586,998,749 | ||||||||
Transportation Infrastructure — 0.1% | ||||||||
Japan Airport Terminal Co. Ltd. | 190,800 | 7,575,782 | ||||||
Kamigumi Co. Ltd. | 381,600 | 8,847,553 | ||||||
|
| |||||||
16,423,335 | ||||||||
Wireless Telecommunication Services — 5.2% | ||||||||
KDDI Corp. | 8,205,400 | 198,169,403 | ||||||
NTT DOCOMO Inc. | 6,105,600 | 142,136,744 | ||||||
Softbank Corp.(b) | 7,872,000 | 98,293,927 | ||||||
SoftBank Group Corp. | 3,935,900 | 363,466,152 | ||||||
|
| |||||||
802,066,226 | ||||||||
|
| |||||||
Total Common Stocks — 99.7% |
| 15,480,241,590 | ||||||
|
| |||||||
Short-Term Investments | ||||||||
Money Market Funds — 0.2% | ||||||||
BlackRock Cash Funds: Institutional, | 31,785,538 | 31,798,253 | ||||||
BlackRock Cash Funds: Treasury, | 8,014,536 | 8,014,536 | ||||||
|
| |||||||
39,812,789 | ||||||||
|
| |||||||
Total Short-Term Investments — 0.2% |
| 39,812,789 | ||||||
|
| |||||||
Total Investments in Securities — 99.9% |
| 15,520,054,379 | ||||||
Other Assets, Less Liabilities — 0.1% |
| 11,347,565 | ||||||
|
| |||||||
Net Assets — 100.0% | $ | 15,531,401,944 | ||||||
|
|
(a) | All or a portion of this security is on loan. |
(b) | Non-income producing security. |
(c) | Affiliate of the Fund. |
(d) | Annualized7-day yield as ofperiod-end. |
(e) | All or a portion of this security was purchased with cash collateral received from loaned securities. |
S C H E D U L E O F I N V E S T M E N T S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI Japan ETF |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2019, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
| ||||||||||||||||||||||||||||
Affiliated Issuer | | Shares Held at 08/31/18 | Net Activity | | Shares Held at 02/28/19 | | Value at 02/28/19 | | Income | | Net Realized Gain (Loss) | (a) | | Change in Unrealized Appreciation (Depreciation) | | |||||||||||||
| ||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | 71,651,613 | (39,866,075 | ) | 31,785,538 | $ | 31,798,253 | $ | 1,566,964 | (b) | $ | 21,130 | $ | (10,183 | ) | ||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 6,517,877 | 1,496,659 | 8,014,536 | 8,014,536 | 116,957 | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
$ | 39,812,789 | $ | 1,683,921 | $ | 21,130 | $ | (10,183 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Includes 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, and less fees paid to BTC as securities lending agent. |
Futures Contracts
Description | Number of Contracts | Expiration Date | Notional Amount (000) | Value/ Unrealized Appreciation (Depreciation) | ||||||||||||
Long Contracts | ||||||||||||||||
TOPIX Index | 323 | 03/07/19 | $ | 46,599 | $ | 1,300,486 | ||||||||||
|
|
Derivative Financial Instruments Categorized by Risk Exposure
As of February 28, 2019, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:
| ||||
Equity Contracts | ||||
| ||||
Assets — Derivative Financial Instruments | ||||
Futures contracts | ||||
Net unrealized appreciation(a) | $ | 1,300,486 | ||
|
|
(a) | Represents cumulative appreciation (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. |
For the six months ended February 28, 2019, the effect of derivative financial instruments in the Statement of Operations was as follows:
| ||||
Equity Contracts | ||||
| ||||
Net Realized Gain (Loss) from: | ||||
Futures contracts | $ | (16,223,271 | ) | |
|
| |||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Futures contracts | $ | 1,773,028 | ||
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
| ||||
Futures contracts: | ||||
Average notional value of contracts — long | $ | 79,940,938 | ||
|
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
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, refer to the Notes to Financial Statements.
2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI Japan ETF |
Fair Value Measurements (continued)
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2019. 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 | $ | 15,480,241,590 | $ | — | $ | — | $ | 15,480,241,590 | ||||||||
Money Market Funds | 39,812,789 | — | — | 39,812,789 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 15,520,054,379 | $ | — | $ | — | $ | 15,520,054,379 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $ | 1,300,486 | $ | — | $ | — | $ | 1,300,486 | ||||||||
|
|
|
|
|
|
|
|
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
S C H E D U L E O F I N V E S T M E N T S |
Schedule of Investments (unaudited) February 28, 2019 | iShares® MSCI Mexico ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
| |||||||
Airlines — 0.7% | ||||||||
Controladora Vuela Cia. de Aviacion SAB de CV, Class A(a) | 5,169,900 | $ | 4,424,164 | |||||
Grupo Aeromexico SAB de CV(a) | 2,439,443 | 2,635,723 | ||||||
|
| |||||||
7,059,887 | ||||||||
Banks — 14.2% | ||||||||
Banco del Bajio SA(b) | 5,029,330 | 9,714,376 | ||||||
Banco Santander Mexico SA Institucion de Banca Multiple Grupo Financiero Santand | 12,882,450 | 17,696,233 | ||||||
Grupo Financiero Banorte SAB de CV, Class O | 16,234,061 | 88,333,215 | ||||||
Grupo Financiero Inbursa SAB de CV, Class O | 16,096,092 | 24,023,582 | ||||||
Regional SAB de CV | 1,753,500 | 9,121,689 | ||||||
|
| |||||||
148,889,095 | ||||||||
Beverages — 13.8% | ||||||||
Arca Continental SAB de CV | 3,107,729 | 17,527,549 | ||||||
Coca-Cola Femsa SAB de CV, Series L, NVS | 2,617,547 | 15,838,771 | ||||||
Fomento Economico Mexicano SAB de CV | 12,188,210 | 110,619,918 | ||||||
|
| |||||||
143,986,238 | ||||||||
Capital Markets — 0.7% | ||||||||
Bolsa Mexicana de Valores SAB de CV | 3,404,987 | 7,103,460 | ||||||
|
| |||||||
Chemicals — 1.7% | ||||||||
Mexichem SAB de CV | 7,344,418 | 17,803,102 | ||||||
|
| |||||||
Construction Materials — 4.2% | ||||||||
Cemex SAB de CV, CPO(a) | 87,336,529 | 42,876,121 | ||||||
Grupo Cementos de Chihuahua SAB de CV | 192,100 | 1,046,656 | ||||||
|
| |||||||
43,922,777 | ||||||||
Consumer Finance — 1.1% | ||||||||
Credito Real SAB de CV SOFOM ER | 2,277,774 | 2,280,191 | ||||||
Gentera SAB de CV | 7,662,606 | 6,294,856 | ||||||
Unifin Financiera SAB de CV SOFOM ENR | 1,267,748 | 2,950,034 | ||||||
|
| |||||||
11,525,081 | ||||||||
Diversified Telecommunication Services — 0.8% | ||||||||
Axtel SAB de CV, CPO(a) | 11,530,677 | 1,663,520 | ||||||
Telesites SAB de CV(a) | 10,439,346 | 6,479,372 | ||||||
|
| |||||||
8,142,892 | ||||||||
Equity Real Estate Investment Trusts (REITs) — 5.6% | ||||||||
Concentradora Fibra Danhos SA de CV | 2,503,000 | 3,572,086 | ||||||
Concentradora Fibra Hotelera Mexicana SA de CV(b) | 7,592,490 | 4,066,234 | ||||||
Fibra Uno Administracion SA de CV | 21,128,800 | 29,254,258 | ||||||
Macquarie Mexico Real Estate Management SA de CV(b) | 6,251,800 | 7,225,264 | ||||||
PLA Administradora Industrial S. de RL de CV | 6,110,900 | 9,063,498 | ||||||
Prologis Property Mexico SA de CV | 3,027,100 | 5,559,500 | ||||||
|
| |||||||
58,740,840 | ||||||||
Food & Staples Retailing — 9.0% | ||||||||
Grupo Comercial Chedraui SA de CV | 2,840,400 | 5,561,536 | ||||||
La Comer SAB de CV(a) | 4,202,255 | 4,416,069 | ||||||
Wal-Mart de Mexico SAB de CV | 32,417,833 | 83,864,386 | ||||||
|
| |||||||
93,841,991 | ||||||||
Food Products — 4.7% | ||||||||
Gruma SAB de CV, Series B | 1,501,635 | 16,274,456 | ||||||
Grupo Bimbo SAB de CV, Series A | 11,393,604 | 22,604,445 | ||||||
Grupo Herdez SAB de CV | 2,020,744 | 4,478,879 | ||||||
Industrias Bachoco SAB de CV, Series B | 1,526,200 | 5,927,529 | ||||||
|
| |||||||
49,285,309 |
Security | Shares | Value | ||||||
Gas Utilities — 1.3% | ||||||||
Infraestructura Energetica Nova SAB de CV | 3,612,500 | $ | 13,897,295 | |||||
|
| |||||||
Hotels, Restaurants & Leisure — 1.3% | ||||||||
Alsea SAB de CV | 3,765,666 | 9,538,477 | ||||||
Hoteles City Express SAB de CV(a) | 3,499,100 | 3,991,282 | ||||||
|
| |||||||
13,529,759 | ||||||||
Household Durables — 0.2% | ||||||||
Consorcio ARA SAB de CV | 9,291,519 | 2,521,836 | ||||||
|
| |||||||
Household Products — 1.7% | ||||||||
Kimberly-Clark de Mexico SAB de CV, Class A | 10,756,754 | 17,388,724 | ||||||
|
| |||||||
Industrial Conglomerates — 3.4% | ||||||||
Alfa SAB de CV, Class A | 20,424,051 | 23,265,096 | ||||||
Grupo Carso SAB de CV, Series A1 | 3,338,879 | 12,366,443 | ||||||
|
| |||||||
35,631,539 | ||||||||
Insurance — 0.4% | ||||||||
Qualitas Controladora SAB de CV | 1,668,200 | 4,275,782 | ||||||
|
| |||||||
Machinery — 0.2% | ||||||||
Grupo Rotoplas SAB de CV | 1,892,800 | 2,018,575 | ||||||
|
| |||||||
Media — 3.8% | ||||||||
Grupo Televisa SAB, CPO | 14,490,847 | 33,953,141 | ||||||
Megacable Holdings SAB de CV, CPO | 895,700 | 4,092,798 | ||||||
TV Azteca SAB de CV, CPO | 15,645,339 | 1,883,655 | ||||||
|
| |||||||
39,929,594 | ||||||||
Metals & Mining — 6.7% | ||||||||
Grupo Mexico SAB de CV, Series B | 20,260,986 | 50,774,565 | ||||||
Industrias CH SAB de CV, Series B(a) | 1,304,983 | 5,732,036 | ||||||
Industrias Penoles SAB de CV | 1,015,358 | 13,457,628 | ||||||
|
| |||||||
69,964,229 | ||||||||
Mortgage Real Estate Investment — 0.2% | ||||||||
Concentradora Hipotecaria SAPI de CV(c) | 3,145,400 | 2,301,566 | ||||||
|
| |||||||
Multiline Retail — 0.9% | ||||||||
El Puerto de Liverpool SAB de CV, Series C1, NVS | 1,436,865 | 9,015,849 | ||||||
|
| |||||||
Pharmaceuticals — 0.4% | ||||||||
Genomma Lab Internacional SAB de CV, Class B(a) | 6,792,193 | 4,487,111 | ||||||
|
| |||||||
Real Estate Management & Development — 0.8% | ||||||||
Corp. Inmobiliaria Vesta SAB de CV | 4,626,949 | 6,689,663 | ||||||
Grupo GICSA SA de CV(a) | 5,594,566 | 1,802,962 | ||||||
|
| |||||||
8,492,625 | ||||||||
Transportation Infrastructure — 7.2% | ||||||||
Grupo Aeroportuario del Centro Norte SAB de CV | 2,051,392 | 11,694,378 | ||||||
Grupo Aeroportuario del Pacifico SAB de CV, Series B | 2,485,149 | 23,162,594 | ||||||
Grupo Aeroportuario del Sureste SAB de CV, Class B | 1,436,875 | 24,381,214 | ||||||
Promotora y Operadora de Infraestructura SAB de CV | 1,628,710 | 16,047,437 | ||||||
|
| |||||||
75,285,623 | ||||||||
Wireless Telecommunication Services — 14.8% | ||||||||
America Movil SAB de CV, Series L, NVS | 215,184,118 | 154,998,719 | ||||||
|
| |||||||
Total Common Stocks — 99.8% |
| 1,044,039,498 | ||||||
|
| |||||||
Short-Term Investments |
| |||||||
Money Market Funds — 0.0% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, | 181,348 | 181,420 |
2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI Mexico ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Money Market Funds (continued) | ||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 2.33%(d)(e) | 167,152 | $ | 167,152 | |||||
|
| |||||||
348,572 | ||||||||
|
| |||||||
Total Short-Term Investments — 0.0% | 348,572 | |||||||
|
| |||||||
Total Investments in Securities — 99.8% | 1,044,388,070 | |||||||
Other Assets, Less Liabilities — 0.2% | 2,317,527 | |||||||
|
| |||||||
Net Assets — 100.0% | $ | 1,046,705,597 | ||||||
|
|
(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) | Annualized7-day yield as ofperiod-end. |
(f) | All or a portion of this security was purchased with cash collateral received from loaned securities. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2019, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
| ||||||||||||||||||||||||||||
Affiliated Issuer | | Shares Held at 08/31/18 | | Net Activity | | Shares Held at 02/28/19 | | | Value at 02/28/19 | | Income | | Net Realized Gain (Loss) | (a) | | Change in Unrealized Appreciation (Depreciation) |
| |||||||||||
| ||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | 16,322,257 | (16,140,909 | ) | 181,348 | $ | 181,420 | $ | 78,871 | (b) | $ | (977 | ) | $ | (4,806 | ) | |||||||||||||
BlackRock Cash Funds: Treasury, | 734,154 | (567,002 | ) | 167,152 | 167,152 | 10,012 | — | — | ||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
$ | 348,572 | $ | 88,883 | $ | (977 | ) | $ | (4,806 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Includes 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, and less fees paid to BTC as securities lending agent. |
Futures Contracts
| ||||||||||||||||
Description | Number of Contracts | Expiration Date | Notional Amount (000) | Value/ Unrealized Appreciation (Depreciation) | ||||||||||||
| ||||||||||||||||
Long Contracts | ||||||||||||||||
MEX BOLSA Index | 110 | 03/15/19 | $ | 2,454 | $ | 4,456 | ||||||||||
|
|
Derivative Financial Instruments Categorized by Risk Exposure
As of February 28, 2019, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:
| ||||
Equity Contracts | ||||
| ||||
Assets — Derivative Financial Instruments | ||||
Futures contracts | ||||
Net unrealized appreciation(a) | $ | 4,456 | ||
|
|
(a) | Represents cumulative appreciation (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. |
S C H E D U L E O F I N V E S T M E N T S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI Mexico ETF |
For the six months ended February 28, 2019, the effect of derivative financial instruments in the Statement of Operations was as follows:
| ||||
Equity Contracts | ||||
| ||||
Net Realized Gain (Loss) from: | ||||
Futures contracts | $ | (465,098 | ) | |
|
| |||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Futures contracts | $ | 13,801 | ||
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
| ||||
Futures contracts: | ||||
Average notional value of contracts — long | $ | 2,536,807 | ||
|
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
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, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2019. 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 | $ | 1,044,039,498 | $ | — | $ | — | $ | 1,044,039,498 | ||||||||
Money Market Funds | 348,572 | — | — | 348,572 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 1,044,388,070 | $ | — | $ | — | $ | 1,044,388,070 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $ | 4,456 | $ | — | $ | — | $ | 4,456 | ||||||||
|
|
|
|
|
|
|
|
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) February 28, 2019 | iShares® MSCI South Korea ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Aerospace & Defense — 0.4% | ||||||||
Korea Aerospace Industries Ltd.(a) | 624,963 | $ | 20,448,687 | |||||
|
| |||||||
Air Freight & Logistics — 0.4% | ||||||||
Hyundai Glovis Co. Ltd. | 165,840 | 20,569,645 | ||||||
|
| |||||||
Airlines — 0.3% | ||||||||
Korean Air Lines Co. Ltd.(a) | 479,487 | 15,688,736 | ||||||
|
| |||||||
Auto Components — 2.8% | ||||||||
Hankook Tire Co. Ltd. | 619,103 | 23,532,189 | ||||||
Hanon Systems | 1,717,956 | 19,017,118 | ||||||
Hyundai Mobis Co. Ltd. | 498,572 | 97,746,178 | ||||||
|
| |||||||
140,295,485 | ||||||||
Automobiles — 3.8% | ||||||||
Hyundai Motor Co. | 1,116,201 | 125,544,080 | ||||||
Kia Motors Corp. | 1,989,522 | 64,654,600 | ||||||
|
| |||||||
190,198,680 | ||||||||
Banks — 8.1% | ||||||||
BNK Financial Group Inc. | 2,283,073 | 14,392,271 | ||||||
DGB Financial Group Inc. | 1,619,714 | 12,212,301 | ||||||
Hana Financial Group Inc. | 2,178,536 | 75,252,177 | ||||||
Industrial Bank of Korea | 2,045,625 | 25,372,516 | ||||||
KB Financial Group Inc. | 2,871,005 | 113,211,587 | ||||||
Shinhan Financial Group Co. Ltd. | 3,095,627 | 120,142,366 | ||||||
Woori Financial Group Inc.(a) | 3,585,971 | 47,188,024 | ||||||
|
| |||||||
407,771,242 | ||||||||
Biotechnology — 3.6% | ||||||||
Celltrion Inc.(a)(b) | 597,585 | 108,656,648 | ||||||
Medy-Tox Inc. | 36,681 | 17,807,261 | ||||||
SillaJen Inc.(a)(b) | 449,646 | 29,704,541 | ||||||
ViroMed Co. Ltd.(a) | 112,838 | 27,870,896 | ||||||
|
| |||||||
184,039,346 | ||||||||
Building Products — 0.3% | ||||||||
KCC Corp. | 53,948 | 15,325,319 | ||||||
|
| |||||||
Capital Markets — 1.5% | ||||||||
Korea Investment Holdings Co. Ltd.(a) | 342,208 | 19,625,158 | ||||||
Mirae Asset Daewoo Co. Ltd. | 3,290,518 | 22,118,179 | ||||||
NH Investment & Securities Co. Ltd.(a) | 1,282,763 | 14,884,020 | ||||||
Samsung Securities Co. Ltd. | 566,147 | 17,441,979 | ||||||
|
| |||||||
74,069,336 | ||||||||
Chemicals — 4.0% | ||||||||
Hanwha Chemical Corp. | 926,881 | 19,284,267 | ||||||
Kumho Petrochemical Co. Ltd. | 167,547 | 14,256,467 | ||||||
LG Chem Ltd. | 334,928 | 116,288,240 | ||||||
Lotte Chemical Corp. | 132,445 | 37,565,533 | ||||||
OCI Co. Ltd.(a) | 158,003 | 15,172,334 | ||||||
|
| |||||||
202,566,841 | ||||||||
Commercial Services & Supplies — 0.3% | ||||||||
S-1 Corp. | 165,898 | 15,045,431 | ||||||
|
| |||||||
Construction & Engineering — 2.1% | ||||||||
Daelim Industrial Co. Ltd. | 250,035 | 20,808,461 | ||||||
Daewoo Engineering & Construction | 1,917,061 | 8,607,769 | ||||||
GS Engineering & Construction Corp. | 472,741 | 17,989,966 | ||||||
HDC Hyundai Development Co-Engineering & Construction, Class E(a) | 237,105 | 10,150,801 | ||||||
Hyundai Engineering & Construction Co. Ltd. | 618,454 | 31,453,338 |
Security | Shares | Value | ||||||
Construction & Engineering (continued) | ||||||||
Samsung Engineering Co. Ltd.(a) | 1,351,077 | $ | 18,860,059 | |||||
|
| |||||||
107,870,394 | ||||||||
Construction Materials — 0.2% | ||||||||
POSCO Chemtech Co. Ltd.(b) | 202,743 | 12,420,194 | ||||||
|
| |||||||
Consumer Finance — 0.2% | ||||||||
Samsung Card Co. Ltd. | 320,102 | 9,691,005 | ||||||
|
| |||||||
Diversified Telecommunication Services — 0.4% | ||||||||
KT Corp. | 205,716 | 5,203,717 | ||||||
LG Uplus Corp. | 940,855 | 12,548,079 | ||||||
|
| |||||||
17,751,796 | ||||||||
Electric Utilities — 1.2% | ||||||||
Korea Electric Power Corp.(a) | 1,930,832 | 59,828,839 | ||||||
|
| |||||||
Electronic Equipment, Instruments & Components — 3.4% | ||||||||
LG Display Co. Ltd.(a) | 1,840,045 | 34,765,677 | ||||||
LG Innotek Co. Ltd. | 131,483 | 12,625,735 | ||||||
Samsung Electro-Mechanics Co. Ltd.(b) | 422,281 | 40,174,328 | ||||||
Samsung SDI Co. Ltd. | 405,514 | 85,631,346 | ||||||
|
| |||||||
173,197,086 | ||||||||
Entertainment — 1.7% | ||||||||
NCSoft Corp. | 134,905 | 55,295,816 | ||||||
Netmarble Corp.(a)(b)(c) | 207,499 | 21,770,145 | ||||||
Pearl Abyss Corp.(a)(b) | 58,642 | 9,390,437 | ||||||
|
| |||||||
86,456,398 | ||||||||
Food &Staples Retailing —1.0% | ||||||||
BGF retail Co. Ltd. | 77,036 | 14,589,373 | ||||||
E-MART Inc. | 164,137 | 26,268,925 | ||||||
GS Retail Co. Ltd. | 293,285 | 10,091,695 | ||||||
|
| |||||||
50,949,993 | ||||||||
Food Products — 0.9% | ||||||||
CJ CheilJedang Corp. | 72,640 | 20,796,728 | ||||||
Orion Corp./Republic of Korea | 181,376 | 17,981,172 | ||||||
Ottogi Corp. | 13,512 | 9,178,597 | ||||||
|
| |||||||
47,956,497 | ||||||||
Gas Utilities — 0.2% | ||||||||
Korea Gas Corp. | 266,149 | 11,855,664 | ||||||
|
| |||||||
Health Care Providers & Services — 0.5% | ||||||||
Celltrion Healthcare Co. Ltd.(a)(b) | 386,449 | 23,983,409 | ||||||
|
| |||||||
Hotels, Restaurants & Leisure — 0.5% | ||||||||
Kangwon Land Inc.(a) | 986,158 | 27,093,698 | ||||||
|
| |||||||
Household Durables — 1.7% | ||||||||
Coway Co. Ltd. | 422,342 | 35,523,743 | ||||||
LG Electronics Inc. | 800,175 | 50,157,675 | ||||||
|
| |||||||
85,681,418 | ||||||||
Industrial Conglomerates — 4.1% | ||||||||
CJ Corp. | 135,868 | 15,100,471 | ||||||
Hanwha Corp. | 425,549 | 12,164,489 | ||||||
LG Corp. | 726,624 | 48,454,521 | ||||||
Lotte Corp. | 282,270 | 13,326,698 | ||||||
Samsung C&T Corp. | 569,690 | 58,503,774 | ||||||
SK Holdings Co. Ltd. | 239,191 | 57,952,830 | ||||||
|
| |||||||
205,502,783 | ||||||||
Insurance — 3.4% | ||||||||
DB Insurance Co. Ltd. | 420,644 | 27,115,400 | ||||||
Hanwha Life Insurance Co. Ltd. | 2,928,087 | 10,856,337 |
S C H E D U L E O F I N V E S T M E N T S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI South Korea ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Insurance (continued) | ||||||||
Hyundai Marine & Fire Insurance Co. Ltd. | 560,208 | $ | 18,778,200 | |||||
Orange Life Insurance Ltd.(c) | 332,772 | 10,562,781 | ||||||
Samsung Fire & Marine Insurance Co. Ltd. | 232,658 | 62,368,976 | ||||||
Samsung Life Insurance Co. Ltd. | 535,347 | 42,220,396 | ||||||
|
| |||||||
171,902,090 | ||||||||
Interactive Media & Services — 3.1% | ||||||||
Kakao Corp. | 393,644 | 36,224,908 | ||||||
NAVER Corp. | 1,013,779 | 119,883,175 | ||||||
|
| |||||||
156,108,083 | ||||||||
Internet & Direct Marketing Retail — 0.4% | ||||||||
CJ ENM Co. Ltd. | 89,673 | 18,999,801 | ||||||
|
| |||||||
IT Services — 1.1% | ||||||||
Samsung SDS Co. Ltd. | 266,302 | 54,576,875 | ||||||
|
| |||||||
Leisure Products — 0.4% | ||||||||
HLB Inc.(a)(b) | 263,979 | 21,077,011 | ||||||
|
| |||||||
Life Sciences Tools & Services — 0.8% | ||||||||
Samsung Biologics Co. Ltd.(a)(c) | 126,044 | 42,137,943 | ||||||
|
| |||||||
Machinery — 2.2% | ||||||||
Daewoo Shipbuilding & Marine Engineering Co. Ltd.(a) | 345,408 | 9,704,715 | ||||||
Doosan Bobcat Inc. | 492,107 | 13,957,689 | ||||||
Hyundai Heavy Industries Co. Ltd.(a) | 296,119 | 34,622,253 | ||||||
Hyundai Heavy Industries Holdings Co. Ltd. | 80,433 | 25,816,941 | ||||||
Samsung Heavy Industries Co. Ltd.(a) | 3,376,871 | 27,502,568 | ||||||
|
| |||||||
111,604,166 | ||||||||
Marine — 0.2% | ||||||||
Pan Ocean Co. Ltd.(a) | 2,594,668 | 9,977,718 | ||||||
|
| |||||||
Media — 0.3% | ||||||||
Cheil Worldwide Inc. | 705,714 | 15,718,090 | ||||||
|
| |||||||
Metals & Mining — 3.7% | ||||||||
Hyundai Steel Co. | 642,798 | 28,490,691 | ||||||
Korea Zinc Co. Ltd.(a) | 70,181 | 28,485,486 | ||||||
POSCO | 561,383 | 131,273,877 | ||||||
|
| |||||||
188,250,054 | ||||||||
Multiline Retail — 0.9% | ||||||||
Hyundai Department Store Co. Ltd. | 138,197 | 11,894,256 | ||||||
Lotte Shopping Co. Ltd. | 100,446 | 17,058,048 | ||||||
Shinsegae Inc. | 62,995 | 15,990,995 | ||||||
|
| |||||||
44,943,299 | ||||||||
Oil, Gas & Consumable Fuels — 2.6% | ||||||||
GS Holdings Corp. | 436,686 | 20,811,212 | ||||||
SK Innovation Co. Ltd. | 476,115 | 79,585,329 | ||||||
S-Oil Corp. | 356,478 | 31,695,385 | ||||||
|
| |||||||
132,091,926 | ||||||||
Personal Products — 2.7% | ||||||||
Amorepacific Corp. | 239,713 | 42,627,011 | ||||||
AMOREPACIFIC Group | 241,610 | 15,746,433 | ||||||
LG Household & Health Care Ltd. | 68,730 | 76,142,598 | ||||||
|
| |||||||
134,516,042 | ||||||||
Pharmaceuticals — 1.2% | ||||||||
Celltrion Pharm Inc.(a)(b) | 157,044 | 8,461,693 | ||||||
Hanmi Pharm Co. Ltd. | 54,873 | 24,101,771 | ||||||
Hanmi Science Co. Ltd.(b) | 154,999 | 11,204,249 | ||||||
Yuhan Corp. | 83,924 | 19,438,252 | ||||||
|
| |||||||
63,205,965 |
Security | Shares | Value | ||||||
Road & Rail — 0.3% | ||||||||
CJ Logistics Corp.(a) | 85,019 | $ | 14,362,594 | |||||
|
| |||||||
Semiconductors & Semiconductor Equipment — 5.1% | ||||||||
SK Hynix Inc. | 4,138,589 | 257,580,893 | ||||||
|
| |||||||
Specialty Retail — 0.4% | ||||||||
Hotel Shilla Co. Ltd. | 255,929 | 18,659,356 | ||||||
|
| |||||||
Technology Hardware, Storage & Peripherals — 21.7% | ||||||||
Samsung Electronics Co. Ltd. | 27,379,355 | 1,097,900,694 | ||||||
|
| |||||||
Textiles, Apparel & Luxury Goods — 0.4% | ||||||||
Fila Korea Ltd. | 395,688 | 19,560,997 | ||||||
|
| |||||||
Tobacco — 1.6% | ||||||||
KT&G Corp. | 861,333 | 80,795,440 | ||||||
|
| |||||||
Trading Companies & Distributors — 0.2% | ||||||||
Posco Daewoo Corp. | 549,066 | 9,251,179 | ||||||
|
| |||||||
Wireless Telecommunication Services — 0.7% | ||||||||
SK Telecom Co. Ltd. | 159,740 | 36,998,552 | ||||||
|
| |||||||
Total Common Stocks — 97.0% (Cost: $3,051,253,859) |
| |||||||
4,906,476,690 | ||||||||
|
| |||||||
Preferred Stocks | ||||||||
Automobiles — 0.7% | ||||||||
Hyundai Motor Co. | 219,822 | 14,404,625 | ||||||
Series 2, Preference Shares, NVS | 312,046 | 22,306,836 | ||||||
|
| |||||||
36,711,461 | ||||||||
Chemicals — 0.3% | ||||||||
LG Chem Ltd., Preference Shares, NVS | 75,466 | 14,761,732 | ||||||
|
| |||||||
Industrial Conglomerates — .00% | ||||||||
CJ Corp., Preference Shares | 17,539 | 421,048 | ||||||
|
| |||||||
Personal Products — 0.5% | ||||||||
Amorepacific Corp., Preference Shares, NVS | 92,172 | 9,137,706 | ||||||
LG Household & Health Care Ltd., Preference Shares, NVS | 20,480 | 13,638,766 | ||||||
|
| |||||||
22,776,472 | ||||||||
Technology Hardware, Storage & Peripherals — .00% | ||||||||
Samsung Electronics Co. Ltd., Preference | 22,352 | 715,455 | ||||||
|
| |||||||
Total Preferred Stocks — 1.5% (Cost: $57,939,949) |
| |||||||
75,386,168 | ||||||||
|
| |||||||
Short-Term Investments | ||||||||
Money Market Funds — 3.8% | ||||||||
BlackRock Cash Funds: Institutional, | 186,701,514 | 186,776,194 |
2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI South Korea ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
| ||||||||
Money Market Funds (continued) | ||||||||
BlackRock Cash Funds: Treasury, | 8,062,513 | $ | 8,062,513 | |||||
|
| |||||||
194,838,707 | ||||||||
|
| |||||||
Total Short-Term Investments — 3.8% (Cost: $194,777,913) | 194,838,707 | |||||||
|
| |||||||
Total Investments in Securities — 102.3% | 5,176,701,565 | |||||||
Other Assets, Less Liabilities — (2.3)% | (116,991,839 | ) | ||||||
|
| |||||||
Net Assets — 100.0% | $ | 5,059,709,726 | ||||||
|
|
(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) | Annualized7-day yield as ofperiod-end. |
(f) | All or a portion of this security was purchased with cash collateral received from loaned securities. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2019, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
| ||||||||||||||||||||||||||||
Affiliated Issuer | | Shares Held at 08/31/18 | Net Activity | | Shares Held at 02/28/19 | | Value at 02/28/19 | Income | | Net Realized Gain (Loss) | (a) | | Change in Unrealized Appreciation (Depreciation) | |||||||||||||||
| ||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, | 289,663,819 | (102,962,305 | ) | 186,701,514 | $ | 186,776,194 | $ | 4,207,317 | (b) | $ | 9,520 | $ | 667 | |||||||||||||||
BlackRock Cash Funds: Treasury, | 3,563,166 | 4,499,347 | 8,062,513 | 8,062,513 | 97,946 | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
$ | 194,838,707 | $ | 4,305,263 | $ | 9,520 | $ | 667 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Includes 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, and less fees paid to BTC as securities lending agent. |
Futures Contracts
| ||||||||||||||||
Description | Number of Contracts | Expiration Date | Notional Amount (000) | Value/ Unrealized Appreciation (Depreciation) | ||||||||||||
| ||||||||||||||||
Long Contracts | ||||||||||||||||
KOSPI 200 Index | 1,200 | 03/14/19 | $ | 75,714 | $ | 5,136,660 | ||||||||||
|
|
Derivative Financial Instruments Categorized by Risk Exposure
As of February 28, 2019, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:
| ||||
Equity Contracts | ||||
| ||||
Assets — Derivative Financial Instruments | ||||
Futures contracts | ||||
Net unrealized appreciation(a) | $ | 5,136,660 | ||
|
|
(a) | Represents cumulative appreciation (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. |
S C H E D U L E O F I N V E S T M E N T S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI South Korea ETF |
For the six months ended February 28, 2019, the effect of derivative financial instruments in the Statement of Operations was as follows:
| ||||
Equity Contracts | ||||
| ||||
Net Realized Gain (Loss) from: | ||||
Futures contracts | $ | (1,062,674 | ) | |
|
| |||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Futures contracts | $ | 5,128,687 | ||
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
| ||||
Futures contracts: | ||||
Average notional value of contracts — long | $ | 32,271,852 | ||
|
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
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, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2019. 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 | $ | 4,906,476,690 | $ | — | $ | — | $ | 4,906,476,690 | ||||||||
Preferred Stocks | 74,965,120 | 421,048 | — | 75,386,168 | ||||||||||||
Money Market Funds | 194,838,707 | — | — | 194,838,707 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 5,176,280,517 | $ | 421,048 | $ | — | $ | 5,176,701,565 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $ | 5,136,660 | $ | — | $ | — | $ | 5,136,660 | ||||||||
|
|
|
|
|
|
|
|
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Statements of Assets and Liabilities (unaudited)
February 28, 2019
iShares ETF | iShares MSCI Canada ETF | iShares MSCI Japan ETF | iShares MSCI Mexico ETF | |||||||||||||
| ||||||||||||||||
ASSETS | ||||||||||||||||
Investments in securities, at value (including securities on loan)(a): | ||||||||||||||||
Unaffiliated(b) | $ | 1,214,532,751 | $ | 2,640,605,111 | $ | 15,480,241,590 | $ | 1,044,039,498 | ||||||||
Affiliated(c) | 2,888,198 | 41,596,899 | 39,812,789 | 348,572 | ||||||||||||
Foreign currency, at value(d) | 2,979,791 | 4,691,056 | 5,572,635 | 2,051,323 | ||||||||||||
Foreign currency pledged: | ||||||||||||||||
Futures contracts(e) | 601,176 | 367,502 | 936,606 | 228,340 | ||||||||||||
Receivables: | ||||||||||||||||
Investments sold | 1,027,137 | 6,674,180 | 21,511,255 | 1,478,313 | ||||||||||||
Securities lending income — Affiliated | 2,920 | 110,650 | 31,146 | 2,517 | ||||||||||||
Variation margin on futures contracts | 96,180 | — | — | — | ||||||||||||
Capital shares sold | — | — | 1,645,912 | 4,239,933 | ||||||||||||
Dividends | 10,627,850 | 3,943,033 | 27,577,534 | 772,372 | ||||||||||||
Tax reclaims | — | — | 366,512 | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total assets | 1,232,756,003 | 2,697,988,431 | 15,577,695,979 | 1,053,160,868 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
LIABILITIES | ||||||||||||||||
Collateral on securities loaned, at value | 2,224,424 | 40,210,527 | 31,773,328 | 181,488 | ||||||||||||
Payables: | ||||||||||||||||
Investments purchased | 1,361,805 | 7,463,034 | 84 | 5,732,082 | ||||||||||||
Variation margin on futures contracts | — | 40,372 | 292,889 | 25,061 | ||||||||||||
Capital shares redeemed | — | — | 8,236,055 | 106,085 | ||||||||||||
Investment advisory fees | 463,125 | 986,970 | 5,991,679 | 410,555 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total liabilities | 4,049,354 | 48,700,903 | 46,294,035 | 6,455,271 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS | $ | 1,228,706,649 | $ | 2,649,287,528 | $ | 15,531,401,944 | $ | 1,046,705,597 | ||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS CONSIST OF: | ||||||||||||||||
Paid-in capital | $ | 1,727,406,941 | $ | 3,653,459,391 | $ | 17,754,743,144 | $ | 1,810,151,916 | ||||||||
Accumulated loss | (498,700,292 | ) | (1,004,171,863 | ) | (2,223,341,200 | ) | (763,446,319 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS | $ | 1,228,706,649 | $ | 2,649,287,528 | $ | 15,531,401,944 | $ | 1,046,705,597 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Shares outstanding | 57,600,000 | 95,200,000 | 286,200,000 | 24,000,000 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net asset value | $ | 21.33 | $ | 27.83 | $ | 54.27 | $ | 43.61 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Shares authorized | 627.8 million | 340.2 million | 2.5246 billion | 255 million | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Par value | $ | 0.001 | $ | 0.001 | $ | 0.001 | $ | 0.001 | ||||||||
|
|
|
|
|
|
|
| |||||||||
(a) Securities loaned, at value | $ | 2,110,601 | $ | 38,646,486 | $ | 27,245,530 | $ | 174,736 | ||||||||
(b) Investments, at cost — Unaffiliated | $ | 1,458,987,822 | $ | 3,114,137,839 | $ | 16,897,758,390 | $ | 1,478,735,388 | ||||||||
(c) Investments, at cost — Affiliated | $ | 2,887,315 | $ | 41,589,187 | $ | 39,805,137 | $ | 348,505 | ||||||||
(d) Foreign currency, at cost | $ | 2,985,715 | $ | 4,683,284 | $ | 5,562,868 | $ | 2,044,116 | ||||||||
(e) Foreign currency collateral pledged, at cost | $ | 603,548 | $ | 361,137 | $ | 948,639 | $ | 223,156 |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S |
Statements of Assets and Liabilities (unaudited) (continued)
February 28, 2019
iShares MSCI South Korea ETF | ||||
| ||||
ASSETS | ||||
Investments in securities, at value (including securities on loan)(a): | ||||
Unaffiliated(b) | $ | 4,981,862,858 | ||
Affiliated(c) | 194,838,707 | |||
Foreign currency, at value(d) | 761 | |||
Foreign currency pledged: | ||||
Futures contracts(e) | 5,324,962 | |||
Receivables: | ||||
Investments sold | 26,955,394 | |||
Securities lending income — Affiliated | 629,124 | |||
Variation margin on futures contracts | 5,139,348 | |||
Dividends | 61,139,842 | |||
|
| |||
Total assets | 5,275,890,996 | |||
|
| |||
LIABILITIES | ||||
Collateral on securities loaned, at value | 186,724,697 | |||
Payables: | ||||
Investments purchased | 27,209,594 | |||
Investment advisory fees | 2,226,474 | |||
Foreign taxes | 20,505 | |||
|
| |||
Total liabilities | 216,181,270 | |||
|
| |||
NET ASSETS | $ | 5,059,709,726 | ||
|
| |||
NET ASSETS CONSIST OF: | ||||
Paid-in capital | $ | 4,153,185,378 | ||
Accumulated earnings | 906,524,348 | |||
|
| |||
NET ASSETS | $ | 5,059,709,726 | ||
|
| |||
Shares outstanding | 80,100,000 | |||
|
| |||
Net asset value | $ | 63.17 | ||
|
| |||
Shares authorized | 200 million | |||
|
| |||
Par value | $ | 0.001 | ||
|
| |||
(a) Securities loaned, at value | $ | 176,962,653 | ||
(b) Investments, at cost — Unaffiliated | $ | 3,109,193,808 | ||
(c) Investments, at cost — Affiliated | $ | 194,777,913 | ||
(d) Foreign currency, at cost | $ | 761 | ||
(e) Foreign currency collateral pledged, at cost | $ | 5,509,139 |
See notes to financial statements.
2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Statements of Operations (unaudited)
Six Months Ended February 28, 2019
iShares MSCI Australia ETF | iShares MSCI Canada ETF | iShares MSCI Japan ETF | iShares MSCI Mexico ETF | |||||||||||||
| ||||||||||||||||
INVESTMENT INCOME | ||||||||||||||||
Dividends — Unaffiliated | $ | 33,769,598 | $ | 41,699,181 | $ | 179,097,926 | $ | 10,102,926 | ||||||||
Dividends — Affiliated | 16,217 | 22,040 | 116,957 | 10,012 | ||||||||||||
Interest — Unaffiliated | 112 | 2,688 | — | 6,597 | ||||||||||||
Securities lending income — Affiliated — net | 14,720 | 334,564 | 1,566,964 | 78,871 | ||||||||||||
Foreign taxes withheld | (271,084 | ) | (6,223,156 | ) | (17,891,709 | ) | (637,914 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total investment income | 33,529,563 | 35,835,317 | 162,890,138 | 9,560,492 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
EXPENSES | ||||||||||||||||
Investment advisory fees | 2,935,040 | 6,519,859 | 39,613,969 | 2,576,529 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total expenses | 2,935,040 | 6,519,859 | 39,613,969 | 2,576,529 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net investment income | 30,594,523 | 29,315,458 | 123,276,169 | 6,983,963 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||
Investments — Unaffiliated | (32,936,541 | ) | (74,376,071 | ) | (208,584,381 | ) | (9,725,527 | ) | ||||||||
Investments — Affiliated | 663 | (2,418 | ) | 21,130 | (977 | ) | ||||||||||
In-kind redemptions — Unaffiliated | 6,193,337 | 22,016,610 | 505,540,633 | (12,681,467 | ) | |||||||||||
Futures contracts | (1,080,414 | ) | (617,089 | ) | (16,223,271 | ) | (465,098 | ) | ||||||||
Foreign currency transactions | (268,831 | ) | 4,405 | (978,173 | ) | (299,158 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net realized gain (loss) | (28,091,786 | ) | (52,974,563 | ) | 279,775,938 | (23,172,227 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments — Unaffiliated | (33,578,577 | ) | (57,842,455 | ) | (1,515,402,672 | ) | (94,903,118 | ) | ||||||||
Investments — Affiliated | (261 | ) | 6,308 | (10,183 | ) | (4,806 | ) | |||||||||
Futures contracts | 276,271 | 388,785 | 1,773,028 | 13,801 | ||||||||||||
Foreign currency translations | 56,015 | 15,312 | (244,866 | ) | 250,647 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net change in unrealized appreciation (depreciation) | (33,246,552 | ) | (57,432,050 | ) | (1,513,884,693 | ) | (94,643,476 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net realized and unrealized loss | (61,338,338 | ) | (110,406,613 | ) | (1,234,108,755 | ) | (117,815,703 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | (30,743,815 | ) | $ | (81,091,155 | ) | $ | (1,110,832,586 | ) | $ | (110,831,740 | ) | ||||
|
|
|
|
|
|
|
|
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S |
Statements of Operations (unaudited) (continued)
Six Months Ended February 28, 2019
iShares MSCI South Korea ETF | ||||
| ||||
INVESTMENT INCOME | ||||
Dividends — Unaffiliated | $ | 80,904,715 | ||
Dividends — Affiliated | 97,946 | |||
Interest — Unaffiliated | 748 | |||
Securities lending income — Affiliated — net | 4,207,317 | |||
Foreign taxes withheld | (12,635,541 | ) | ||
Other foreign taxes | (20,722 | ) | ||
|
| |||
Total investment income | 72,554,463 | |||
|
| |||
EXPENSES | ||||
Investment advisory fees | 11,993,631 | |||
|
| |||
Total expenses | 11,993,631 | |||
|
| |||
Net investment income | 60,560,832 | |||
|
| |||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||
Net realized gain (loss) from: | ||||
Investments — Unaffiliated(a) | (27,357,198 | ) | ||
Investments — Affiliated | 9,520 | |||
Futures contracts | (1,062,674 | ) | ||
Foreign currency transactions | 81,252 | |||
|
| |||
Net realized loss | (28,329,100 | ) | ||
|
| |||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments — Unaffiliated | (176,223,786 | ) | ||
Investments — Affiliated | 667 | |||
Futures contracts | 5,128,687 | |||
Foreign currency translations | (239,818 | ) | ||
|
| |||
Net change in unrealized appreciation (depreciation) | (171,334,250 | ) | ||
|
| |||
Net realized and unrealized loss | (199,663,350 | ) | ||
|
| |||
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | (139,102,518 | ) | |
|
| |||
(a) Net of foreign capital gain tax of | $ | 155,721 |
See notes to financial statements.
2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Statements of Changes in Net Assets
iShares MSCI Australia ETF | iShares MSCI Canada ETF | |||||||||||||||
Six Months Ended 02/28/19 (unaudited) | Year Ended 08/31/18 | Six Months Ended 02/28/19 (unaudited) | Year Ended 08/31/18 | |||||||||||||
| ||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income | $ | 30,594,523 | $ | 64,332,341 | $ | 29,315,458 | $ | 59,726,961 | ||||||||
Net realized gain (loss) | (28,091,786 | ) | 50,011,791 | (52,974,563 | ) | 136,191,288 | ||||||||||
Net change in unrealized appreciation (depreciation) | (33,246,552 | ) | (43,294,526 | ) | (57,432,050 | ) | (30,882,799 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | (30,743,815 | ) | 71,049,606 | (81,091,155 | ) | 165,035,450 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||||||||||
Decrease in net assets resulting from distributions to shareholders | (43,797,886 | ) | (70,243,817 | ) | (40,528,818 | ) | (62,114,985 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||
Net decrease in net assets derived from capital share transactions | (59,521,814 | ) | (403,947,951 | ) | (223,719,461 | ) | (236,213,205 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS(a) | ||||||||||||||||
Total decrease in net assets | (134,063,515 | ) | (403,142,162 | ) | (345,339,434 | ) | (133,292,740 | ) | ||||||||
Beginning of period | 1,362,770,164 | 1,765,912,326 | 2,994,626,962 | 3,127,919,702 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 1,228,706,649 | $ | 1,362,770,164 | $ | 2,649,287,528 | $ | 2,994,626,962 | ||||||||
|
|
|
|
|
|
|
|
(a) | Prior year distribution character information and undistributed net investment income has been modified or removed to conform with current year RegulationS-X presentation changes. Refer to Note 12 for this prior year information. |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S |
Statements of Changes in Net Assets (continued)
iShares MSCI Japan ETF | iShares MSCI Mexico ETF | |||||||||||||||
Six Months Ended 02/28/19 (unaudited) | Year Ended 08/31/18 | Six Months Ended 02/28/19 (unaudited) | Year Ended 08/31/18 | |||||||||||||
| ||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income | $ | 123,276,169 | $ | 282,498,661 | $ | 6,983,963 | $ | 20,797,009 | ||||||||
Net realized gain (loss) | 279,775,938 | 941,647,734 | (23,172,227 | ) | (73,800,013 | ) | ||||||||||
Net change in unrealized appreciation (depreciation) | (1,513,884,693 | ) | 60,627,778 | (94,643,476 | ) | (90,670,280 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | (1,110,832,586 | ) | 1,284,774,173 | (110,831,740 | ) | (143,673,284 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||||||||||
Decrease in net assets resulting from distributions to shareholders | (118,844,429 | ) | (279,038,333 | ) | (9,554,874 | ) | (22,542,336 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions | (211,959,305 | ) | (50,386,475 | ) | (1,838,042 | ) | 14,504,278 | |||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS(a) | ||||||||||||||||
Total increase (decrease) in net assets | (1,441,636,320 | ) | 955,349,365 | (122,224,656 | ) | (151,711,342 | ) | |||||||||
Beginning of period | 16,973,038,264 | 16,017,688,899 | 1,168,930,253 | 1,320,641,595 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 15,531,401,944 | $ | 16,973,038,264 | $ | 1,046,705,597 | $ | 1,168,930,253 | ||||||||
|
|
|
|
|
|
|
|
(a) | Prior year distribution character information and undistributed (distributions in excess of) net investment income has been modified or removed to conform with current year RegulationS-X presentation changes. Refer to Note 12 for this prior year information. |
See notes to financial statements.
2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Statements of Changes in Net Assets (continued)
iShares MSCI South Korea ETF | ||||||||||||
Six Months Ended (unaudited) | Year Ended 08/31/18 | |||||||||||
| ||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||
OPERATIONS | ||||||||||||
Net investment income | $ | 60,560,832 | $ | 52,988,296 | ||||||||
Net realized gain (loss) | (28,329,100 | ) | 37,400,518 | |||||||||
Net change in unrealized appreciation (depreciation) | (171,334,250 | ) | (23,002,777 | ) | ||||||||
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | (139,102,518 | ) | 67,386,037 | |||||||||
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||||||
Decrease in net assets resulting from distributions to shareholders | (52,766,055 | ) | (118,169,941 | ) | ||||||||
|
|
|
| |||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||
Net increase in net assets derived from capital share transactions | 1,344,687,385 | 173,037,055 | ||||||||||
|
|
|
| |||||||||
NET ASSETS(a) | ||||||||||||
Total increase in net assets | 1,152,818,812 | 122,253,151 | ||||||||||
Beginning of period | 3,906,890,914 | 3,784,637,763 | ||||||||||
|
|
|
| |||||||||
End of period | $ | 5,059,709,726 | $ | 3,906,890,914 | ||||||||
|
|
|
|
(a) | Prior year distribution character information and distributions in excess of net investment income has been modified or removed to conform with current year RegulationS-X presentation changes. Refer to Note 12 for this prior year information. |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S |
Financial Highlights
(For a share outstanding throughout each period)
iShares MSCI Australia ETF | ||||||||||||||||||||||||
Six Months Ended 02/28/19 (unaudited) | Year Ended 08/31/18 | Year Ended 08/31/17 | Year Ended 08/31/16 | Year Ended 08/31/15 | Year Ended 08/31/14 | |||||||||||||||||||
| ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 22.56 | $ | 22.58 | $ | 20.30 | $ | 18.66 | $ | 27.15 | $ | 23.61 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income(a) | 0.53 | 0.90 | 0.84 | 0.84 | 1.23 | 1.10 | ||||||||||||||||||
Net realized and unrealized gain (loss)(b) | (1.02 | ) | 0.07 | 2.45 | 1.59 | (8.49 | ) | 3.43 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net increase (decrease) from investment operations | (0.49 | ) | 0.97 | 3.29 | 2.43 | (7.26 | ) | 4.53 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Distributions | ||||||||||||||||||||||||
From net investment income | (0.74 | ) | (0.99 | ) | (1.01 | ) | (0.79 | ) | (1.23 | ) | (0.99 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | (0.74 | ) | (0.99 | ) | (1.01 | ) | (0.79 | ) | (1.23 | ) | (0.99 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 21.33 | $ | 22.56 | $ | 22.58 | $ | 20.30 | $ | 18.66 | $ | 27.15 | ||||||||||||
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|
|
|
|
|
|
|
| |||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | (1.81 | )%(c) | 4.43 | % | 16.70 | % | 13.36 | % | (27.31 | )% | 19.76 | % | ||||||||||||
|
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|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.49 | %(d) | 0.47 | % | 0.49 | % | 0.48 | % | 0.48 | % | 0.48 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income | 5.13 | %(d) | 3.95 | % | 3.90 | % | 4.41 | % | 5.37 | % | 4.28 | % | ||||||||||||
|
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|
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|
|
|
|
|
|
| |||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 1,228,707 | $ | 1,362,770 | $ | 1,765,912 | $ | 1,668,702 | $ | 1,228,063 | $ | 2,047,113 | ||||||||||||
|
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|
|
|
|
|
|
|
|
|
| |||||||||||||
Portfolio turnover rate(e) | 4 | %(c) | 3 | % | 4 | % | 7 | % | 9 | % | 6 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Based on average shares outstanding. |
(b) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(c) | Not annualized. |
(d) | Annualized. |
(e) | Portfolio turnover rate excludesin-kind transactions. |
See notes to financial statements.
2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares MSCI Canada ETF | ||||||||||||||||||||||||
Six Months Ended 02/28/19 (unaudited) | Year Ended 08/31/18 | Year Ended 08/31/17 | Year Ended 08/31/16 | Year Ended 08/31/15 | Year Ended 08/31/14 | |||||||||||||||||||
| ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 28.79 | $ | 27.83 | $ | 25.33 | $ | 24.02 | $ | 32.93 | $ | 27.34 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income(a) | 0.29 | 0.58 | 0.51 | 0.51 | 0.54 | 0.59 | ||||||||||||||||||
Net realized and unrealized gain (loss)(b) | (0.84 | ) | 0.97 | 2.47 | 1.29 | (8.85 | ) | 5.62 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net increase (decrease) from investment operations | (0.55 | ) | 1.55 | 2.98 | 1.80 | (8.31 | ) | 6.21 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Distributions | ||||||||||||||||||||||||
From net investment income | (0.41 | ) | (0.59 | ) | (0.48 | ) | (0.49 | ) | (0.60 | ) | (0.62 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | (0.41 | ) | (0.59 | ) | (0.48 | ) | (0.49 | ) | (0.60 | ) | (0.62 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 27.83 | $ | 28.79 | $ | 27.83 | $ | 25.33 | $ | 24.02 | $ | 32.93 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | (1.72 | )%(c) | 5.61 | % | 11.88 | % | 7.73 | % | (25.48 | )% | 23.00 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.49 | %(d) | 0.47 | % | 0.49 | % | 0.48 | % | 0.48 | % | 0.48 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income | 2.21 | %(d) | 2.01 | % | 1.93 | % | 2.18 | % | 1.92 | % | 1.97 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 2,649,288 | $ | 2,994,627 | $ | 3,127,920 | $ | 3,097,794 | $ | 1,931,454 | $ | 3,786,906 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Portfolio turnover rate(e) | 4 | %(c) | 3 | % | 6 | % | 4 | % | 5 | % | 6 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Based on average shares outstanding. |
(b) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(c) | Not annualized. |
(d) | Annualized. |
(e) | Portfolio turnover rate excludesin-kind transactions. |
See notes to financial statements.
F I N A N C I A L H I G H L I G H T S |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares MSCI Japan ETF | ||||||||||||||||||||||||
| Six Months Ended 02/28/19 (unaudited) | | | Year Ended 08/31/18 | | | Year Ended 08/31/17 | (a) | | Year Ended 08/31/16 | (a) | | Year Ended 08/31/15 | (a) | | Year Ended 08/31/14 | (a) | |||||||
| ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 58.45 | $ | 54.57 | $ | 49.05 | $ | 48.61 | $ | 47.32 | $ | 43.87 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income(b) | 0.42 | 0.87 | 0.49 | 0.72 | 0.60 | 0.60 | ||||||||||||||||||
Net realized and unrealized gain (loss)(c) | (4.19 | ) | 3.87 | 5.96 | 0.44 | 1.22 | 3.53 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net increase (decrease) from investment operations | (3.77 | ) | 4.74 | 6.45 | 1.16 | 1.82 | 4.13 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Distributions | ||||||||||||||||||||||||
From net investment income | (0.41 | ) | (0.86 | ) | (0.93 | ) | (0.72 | ) | (0.53 | ) | (0.68 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | (0.41 | ) | (0.86 | ) | (0.93 | ) | (0.72 | ) | (0.53 | ) | (0.68 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 54.27 | $ | 58.45 | $ | 54.57 | $ | 49.05 | $ | 48.61 | $ | 47.32 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | (6.43 | )%(d) | 8.67 | % | 13.31 | % | 2.44 | % | 3.84 | % | 9.39 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.49 | %(e) | 0.47 | % | 0.49 | % | 0.48 | % | 0.48 | % | 0.48 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income | 1.53 | %(e) | 1.46 | % | 1.45 | % | 1.53 | % | 1.20 | % | 1.31 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 15,531,402 | $ | 16,973,038 | $ | 16,017,689 | $ | 14,015,180 | $ | 19,147,802 | $ | 14,729,189 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Portfolio turnover rate(f) | 3 | %(d) | 4 | % | 4 | % | 4 | % | 2 | % | 2 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Per share amounts reflect aone-for-four reverse stock split effective after the close of trading on November 4, 2016. |
(b) | Based on average shares outstanding. |
(c) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) | Not annualized. |
(e) | Annualized. |
(f) | Portfolio turnover rate excludesin-kind transactions. |
See notes to financial statements.
2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares MSCI Mexico ETF | ||||||||||||||||||||||||
Six Months Ended 02/28/19 (unaudited) | Year Ended 08/31/18 | Year Ended 08/31/17 | Year Ended 08/31/16 | Year Ended 08/31/15 | Year Ended 08/31/14 | |||||||||||||||||||
| ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 50.38 | $ | 56.68 | $ | 50.48 | $ | 52.70 | $ | 71.51 | $ | 61.93 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income(a) | 0.30 | 0.95 | 0.88 | 0.93 | 0.68 | 1.06 | ||||||||||||||||||
Net realized and unrealized gain (loss)(b) | (6.70 | ) | (6.17 | ) | 6.10 | (1.82 | ) | (18.56 | ) | 9.61 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net increase (decrease) from investment operations | (6.40 | ) | (5.22 | ) | 6.98 | (0.89 | ) | (17.88 | ) | 10.67 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Distributions | �� | |||||||||||||||||||||||
From net investment income | (0.37 | ) | (1.08 | ) | (0.78 | ) | (1.33 | ) | (0.93 | ) | (1.09 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | (0.37 | ) | (1.08 | ) | (0.78 | ) | (1.33 | ) | (0.93 | ) | (1.09 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 43.61 | $ | 50.38 | $ | 56.68 | $ | 50.48 | $ | 52.70 | $ | 71.51 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | (12.65 | )%(c) | (9.02 | )% | 14.03 | % | (1.68 | )% | (25.10 | )% | 17.42 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.49 | %(d) | 0.47 | % | 0.49 | % | 0.48 | % | 0.48 | % | 0.48 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income | 1.33 | %(d) | 1.87 | % | 1.79 | % | 1.82 | % | 1.10 | % | 1.61 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 1,046,706 | $ | 1,168,930 | $ | 1,320,642 | $ | 1,317,518 | $ | 1,206,942 | $ | 3,275,152 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Portfolio turnover rate(e) | 1 | %(c) | 7 | % | 8 | % | 8 | % | 13 | % | 19 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Based on average shares outstanding. |
(b) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(c) | Not annualized. |
(d) | Annualized. |
(e) | Portfolio turnover rate excludesin-kind transactions. |
See notes to financial statements.
F I N A N C I A L H I G H L I G H T S |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares MSCI South Korea ETF | ||||||||||||||||||||||||
Six Months Ended 02/28/19 (unaudited) | Year Ended 08/31/18 | Year Ended 08/31/17 | Year Ended 08/31/16 | Year Ended 08/31/15 | Year Ended 08/31/14 | |||||||||||||||||||
| ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 67.65 | $ | 68.19 | $ | 56.89 | $ | 48.15 | $ | 66.42 | $ | 57.67 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income(a) | 0.91 | 0.94 | 0.64 | 0.56 | 0.46 | 0.25 | ||||||||||||||||||
Net realized and unrealized gain (loss)(b) | (4.60 | ) | 0.70 | 11.31 | 9.38 | (18.07 | ) | 9.40 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net increase (decrease) from investment operations | (3.69 | ) | 1.64 | 11.95 | 9.94 | (17.61 | ) | 9.65 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Distributions | ||||||||||||||||||||||||
From net investment income | (0.79 | ) | (2.18 | ) | (0.65 | ) | (1.20 | ) | (0.66 | ) | (0.90 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | (0.79 | ) | (2.18 | ) | (0.65 | ) | (1.20 | ) | (0.66 | ) | (0.90 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 63.17 | $ | 67.65 | $ | 68.19 | $ | 56.89 | $ | 48.15 | $ | 66.42 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | (5.35 | )%(c) | 2.15 | % | 21.28 | % | 20.92 | % | (26.58 | )% | 16.83 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.59 | %(d) | 0.59 | % | 0.62 | % | 0.64 | % | 0.62 | % | 0.62 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income | 2.98 | %(d) | 1.31 | % | 1.05 | % | 1.09 | % | 0.81 | % | 0.39 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 5,059,710 | $ | 3,906,891 | $ | 3,784,638 | $ | 3,452,970 | $ | 3,160,954 | $ | 4,891,619 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Portfolio turnover rate(e) | 2 | %(c)(f) | 18 | %(f) | 16 | %(f) | 22 | %(f) | 24 | %(f) | 13 | %(f) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
(a) Based on average shares outstanding. | ||||||||||||||||||||||||
(b) The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
| |||||||||||||||||||||||
(c) Not annualized. | ||||||||||||||||||||||||
(d) Annualized. | ||||||||||||||||||||||||
(e) Portfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash in U.S. dollars (“cash creations”). |
| |||||||||||||||||||||||
(f) Portfolio turnover rate excluding cash creations was as follows: | 2 | % | 11 | % | 6 | % | 10 | % | 10 | % | 10 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
See notes to financial statements.
2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements (unaudited)
1. | ORGANIZATION |
iShares, Inc. (the “Company”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Company is organized as a Maryland corporation and is authorized to have multiple series or portfolios.
These financial statements relate only to the following funds (each, a “Fund,” and collectively, the “Funds”):
iShares ETF | Diversification Classification | |||
MSCI Australia | Non-diversified | |||
MSCI Canada | Diversified | |||
MSCI Japan | Diversified | |||
MSCI Mexico | Non-diversified | |||
MSCI South Korea | Non-diversified |
2. | 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 increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies.
Investment Transactions and Income Recognition:Investment 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 theex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities are reflected in tax reclaims receivable. 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. Upon notification from issuers, some of the dividend income received from a real estate investment trust may bere-designated as a return of capital or capital gain.Non-cash dividends, if any, are recognized on theex-dividend date and recorded asnon-cash dividend income at fair value. 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 innon-U.S. currencies are translated to U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of investments, 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 investments. Such fluctuations are reflected by the Funds as a component of net realized and unrealized gain (loss) from investments for financial reporting purposes. Each Fund reports realized currency gain (loss) 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 each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its statement 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, 2019, if any, are disclosed in the statement of assets and liabilities.
In-kind Redemptions:For financial reporting purposes,in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) topaid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or net asset value per share.
Distributions:Dividends and distributions paid by each Fund are recorded on theex-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.
Recent Accounting Standards:In August 2018, the Financial Accounting Standards Board issued Accounting Standards Update2018-13 “Changes to the Disclosure Requirements for Fair Value Measurement” which modifies disclosure requirements for fair value measurements. The guidance is effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years. Management is currently evaluating the impact of this guidance to the Funds.
Indemnifications:In the normal course of business, each Fund enters into contracts that contain a variety of representations that provide general indemnification. The Funds’ maximum exposure under these arrangements is unknown because it involves future potential claims against the Funds, which cannot be predicted with any certainty.
N O T E S T O F I N A N C I A L S T A T E M E N T S |
Notes to Financial Statements (unaudited) (continued)
3. | INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS |
Investment Valuation Policies:Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date 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. A fund determines the fair value of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Directors of the Company (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.
Fair Value Inputs and Methodologies:The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:
• | Equity investments traded on a recognized securities exchange are valued at that day’s last traded price or official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price. |
• | Investments inopen-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. |
If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of an investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and the cost approach. 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.
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, regular reviews 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 and large movements in market values, and reviews of any market related activity. The pricing of all Fair Valued Investments is subsequently reported to the Board on a quarterly basis.
Fair value pricing could result in a difference between the prices used to calculate a fund’s NAV and the prices used by the fund’s underlying index, which in turn could result in a difference between the fund’s performance and the performance of the fund’s underlying index.
Fair Value Hierarchy:Various inputs are used in determining the fair value of financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:
• | Level 1 – Unadjusted price quotations in active markets 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, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and |
• | Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, (including the Global Valuation Committee’s assumptions used in determining the fair value of financial instruments). |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of 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 into or out of an assigned level within the 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 a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.
4. | SECURITIES AND OTHER INVESTMENTS |
Securities Lending:Each Fund may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by an approved bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund or excess collateral is returned by the Fund, on the next business day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.
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Notes to Financial Statements (unaudited) (continued)
As of February 28, 2019, 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 BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, or its affiliates and is disclosed in the schedules of investments. Anynon-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, if any, are also disclosed in its schedule of investments. The market value of any securities on loan as of February 28, 2019 and the value of the related cash collateral are disclosed in the statements of assets and liabilities.
Securities lending transactions are entered into by a fund under Master Securities Lending Agreements (each, an “MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for thenon-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the 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 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, absent an event of default, the borrower can resell orre-pledge the loaned securities, and the fund can reinvest cash collateral received in connection with loaned securities.
The following table is a summary of the securities lending agreements by counterparty which are subject to offset under an MSLA as of February 28, 2019:
| ||||||||||||||||
iShares ETF and Counterparty | | Market Value of Securities on Loan | | | Cash Collateral Received | (a) | | Non-Cash Collateral Received | | Net Amount | ||||||
| ||||||||||||||||
MSCI Australia | ||||||||||||||||
JPMorgan Securities LLC | $ | 1,505,958 | $ | 1,505,958 | $ | — | $ | — | ||||||||
Macquarie Bank Limited | 604,643 | 604,643 | — | — | ||||||||||||
|
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|
|
|
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|
| |||||||||
$ | 2,110,601 | $ | 2,110,601 | $ | — | $ | — | |||||||||
|
|
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| |||||||||
MSCI Canada | ||||||||||||||||
BNP Paribas Securities Corp. | $ | 3,847,335 | $ | 3,847,335 | $ | — | $ | — | ||||||||
Credit Suisse Securities (USA) LLC | 158,330 | 158,330 | — | — | ||||||||||||
Goldman Sachs & Co. | 2,622,849 | 2,622,849 | — | — | ||||||||||||
JPMorgan Securities LLC | 10,405,027 | 10,405,027 | — | — | ||||||||||||
Morgan Stanley & Co. LLC | 161,401 | 161,401 | — | — | ||||||||||||
State Street Bank & Trust Company | 12,288,379 | 12,288,379 | — | — | ||||||||||||
UBS AG | 2,822,869 | 2,822,869 | — | — | ||||||||||||
Wells Fargo Securities LLC | 6,340,296 | 6,340,296 | — | — | ||||||||||||
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|
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| |||||||||
$ | 38,646,486 | $ | 38,646,486 | $ | — | $ | — | |||||||||
|
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| |||||||||
MSCI Japan | ||||||||||||||||
Barclays Capital Inc. | $ | 1,846,029 | $ | 1,846,029 | $ | — | $ | — | ||||||||
Credit Suisse Securities (USA) LLC | 2,326,985 | 2,326,985 | — | — | ||||||||||||
Goldman Sachs & Co. | 9,090,763 | 9,090,763 | — | — | ||||||||||||
Jefferies LLC | 369,206 | 369,206 | — | — | ||||||||||||
JPMorgan Securities LLC | 49,436 | 49,436 | — | — | ||||||||||||
Macquarie Bank Limited | 203,063 | 203,063 | — | — | ||||||||||||
Morgan Stanley & Co. LLC | 4,059,659 | 4,059,659 | — | — | ||||||||||||
State Street Bank & Trust Company | 3,027,488 | 3,027,488 | — | — | ||||||||||||
UBS AG | 738,412 | 738,412 | — | — | ||||||||||||
Wells Fargo Securities LLC | 5,534,489 | 5,534,489 | — | — | ||||||||||||
|
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|
|
|
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|
| |||||||||
$ | 27,245,530 | $ | 27,245,530 | $ | — | $ | — | |||||||||
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|
|
| |||||||||
MSCI Mexico | ||||||||||||||||
Deutsche Bank Securities Inc. | $ | 174,736 | $ | 174,736 | $ | — | $ | — | ||||||||
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| |||||||||
MSCI South Korea | ||||||||||||||||
Citigroup Global Markets Inc. | $ | 41,908,318 | $ | 41,908,318 | $ | — | $ | — | ||||||||
Credit Suisse Securities (USA) LLC | 7,268,838 | 7,268,838 | — | — | ||||||||||||
Goldman Sachs & Co. | 88,033,495 | 88,033,495 | — | — | ||||||||||||
Jefferies LLC | 262,292 | 262,292 | — | — | ||||||||||||
Macquarie Bank Limited | 811,139 | 811,139 | — | — | ||||||||||||
Morgan Stanley & Co. LLC | 38,678,571 | 38,678,571 | — | — | ||||||||||||
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|
|
|
|
|
|
| |||||||||
$ | 176,962,653 | $ | 176,962,653 | $ | — | $ | — | |||||||||
|
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|
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|
|
(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. |
N O T E S T O F I N A N C I A L S T A T E M E N T S |
Notes to Financial Statements (unaudited) (continued)
The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, each Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned 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 market value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by each Fund.
5. | DERIVATIVE FINANCIAL INSTRUMENTS |
Futures Contracts: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 specific quantity of an underlying instrument at a set price on a future date. Depending on the terms of a contract, a futures contract is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date.
Upon entering into a futures contract, 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. Securities deposited as initial margin, if any, are designated in the schedule of investments and cash deposited, if any, is shown as cash pledged for futures contracts in the statement of assets and liabilities.
Pursuant to the contract, a 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 (“variation margin”). Variation margin is recorded as unrealized appreciation or depreciation and, if any, shown as variation margin receivable or payable on futures contracts in the statement of assets and liabilities. When the contract is closed, a realized gain or loss is recorded in the statement of operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. 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 involves the risk of an imperfect correlation in the movements in the price of futures contracts and the assets underlying such contracts.
6. | INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES |
Investment Advisory Fees: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 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:
Aggregate Average Daily Net Assets | Investment Advisory Fee | |||
First $7 billion | 0.59 | % | ||
Over $7 billion, up to and including $11 billion | 0.54 | |||
Over $11 billion, up to and including $24 billion | 0.49 | |||
Over $24 billion, up to and including $48 billion | 0.44 | |||
Over $48 billion, up to and including $72 billion | 0.40 | |||
Over $72 billion, up to and including $96 billion | 0.36 | |||
Over $96 billion | 0.32 |
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:
Aggregate Average Daily Net Assets | Investment Advisory Fee | |||
First $2 billion | 0.74 | % | ||
Over $2 billion, up to and including $4 billion | 0.69 | |||
Over $4 billion, up to and including $8 billion | 0.64 | |||
Over $8 billion, up to and including $16 billion | 0.57 | |||
Over $16 billion, up to and including $24 billion | 0.51 | |||
Over $24 billion, up to and including $32 billion | 0.48 | |||
Over $32 billion | 0.45 |
Distributor:BlackRock Investments, LLC, an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.
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Notes to Financial Statements (unaudited) (continued)
Securities Lending:The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan in a money market fund managed by BFA, or its affiliates, however, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04% (the “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. Each Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.
Pursuant to the current securities lending agreement, each Fund retains 82% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees. Prior to January 1, 2019, the Fund retained 80% of securities lending income (which excludes collateral investment fees) and the amount retained was not 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 a specified threshold, each Fund, pursuant to the 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. Prior to January 1, 2019, the Fund was subject to the same terms under the previous securities lending fee arrangement.
The share of securities lending income earned by each Fund is shown as securities lending income – affiliated – net in its statement of operations. For the six months ended February 28, 2019, the Funds paid BTC the following amounts for securities lending agent services:
iShares ETF | Fees Paid to BTC | |||
MSCI Australia | $ | 3,726 | ||
MSCI Canada | 72,919 | |||
MSCI Japan | 328,570 | |||
MSCI Mexico | 16,947 | |||
MSCI South Korea | 837,865 |
Officers and Directors:Certain officers and/or directors of the Company are officers and/or directors of BlackRock or its affiliates.
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 Rule17a-7.
For the six months ended February 28, 2019, transactions executed by the Funds pursuant to Rule17a-7 under the 1940 Act were as follows:
iShares ETF | Purchases | Sales | ||||||
MSCI Australia | $ | 2,867,047 | $ | 3,152,007 | ||||
MSCI Japan | 6,316,752 | 41,958,385 |
Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is shown as dividends – affiliated in the statement of operations.
A fund, in order to improve its portfolio liquidity and its ability to track its underlying index, may invest in shares of other iShares funds that invest in securities in the fund’s underlying index.
7. | PURCHASES AND SALES |
For the six months ended February 28, 2019, purchases and sales of investments, excludingin-kind transactions and short-term investments, were as follows:
iShares ETF | Purchases | Sales | ||||||
MSCI Australia | $ | 48,826,568 | $ | 63,769,538 | ||||
MSCI Canada | 96,658,868 | 100,541,964 | ||||||
MSCI Japan | 515,856,970 | 449,547,961 | ||||||
MSCI Mexico | 19,877,043 | 12,846,751 | ||||||
MSCI South Korea | 1,365,563,338 | 74,136,410 |
N O T E S T O F I N A N C I A L S T A T E M E N T S |
Notes to Financial Statements (unaudited) (continued)
For the six months ended February 28, 2019,in-kind transactions were as follows:
iShares ETF | In-kind Purchases | In-kind Sales | ||||||
MSCI Australia | $ | 129,689,221 | $ | 187,109,223 | ||||
MSCI Canada | 126,252,996 | 347,630,077 | ||||||
MSCI Japan | 3,423,861,634 | 3,721,453,626 | ||||||
MSCI Mexico | 926,883,381 | 936,293,824 |
8. | 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.
Management has analyzed tax laws and regulations and their application to the Funds as of February 28, 2019, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.
As of August 31, 2018, 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 Australia | $ | 169,154,600 | $ | 12,127,364 | $ | 181,281,964 | ||||||
MSCI Canada | 408,551,036 | 14,903,919 | 423,454,955 | |||||||||
MSCI Japan | 768,834,306 | 139,228,194 | 908,062,500 | |||||||||
MSCI Mexico | 248,780,167 | 22,863,665 | 271,643,832 | |||||||||
MSCI South Korea | 328,092,540 | 78,503,704 | 406,596,244 |
(a) | Must be utilized prior to losses subject to expiration. |
A fund may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” Such fund may elect tomark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any suchmarked-to-market gains.
As of February 28, 2019, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:
iShares ETF | Tax Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||
MSCI Australia | $ | 1,508,876,269 | $ | 66,594,293 | $ | (357,592,907 | ) | $ | (290,998,614 | ) | ||||||
MSCI Canada | 3,208,747,923 | 172,274,535 | (698,419,765 | ) | (526,145,230 | ) | ||||||||||
MSCI Japan | 17,134,800,478 | 804,850,236 | (2,418,295,849 | ) | (1,613,445,613 | ) | ||||||||||
MSCI Mexico | 1,516,182,228 | 5,776,414 | (477,566,116 | ) | (471,789,702 | ) | ||||||||||
MSCI South Korea | 3,866,321,054 | 1,960,485,628 | (644,968,457 | ) | 1,315,517,171 |
9. | PRINCIPAL RISKS |
In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. 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.
2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements (unaudited) (continued)
Investing in the securities ofnon-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.
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.
Concentration Risk:A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its schedule of investments.
When a fund concentrates its investments in issuers located in a single country or a limited number of countries, it assumes the risk that economic, regulatory, political and social conditions in that country or those countries may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.
When a fund concentrates its investments in securities within a single or limited number of market sectors, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.
10. | CAPITAL SHARE TRANSACTIONS |
Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable.
Transactions in capital shares were as follows:
| ||||||||||||||||
Six Months Ended 02/28/19 | Year Ended 08/31/18 | |||||||||||||||
iShares ETF | Shares | Amount | Shares | Amount | ||||||||||||
| ||||||||||||||||
MSCI Australia | ||||||||||||||||
Shares sold | 6,400,000 | $ | 130,440,646 | 8,600,000 | $ | 194,963,106 | ||||||||||
Shares redeemed | (9,200,000 | ) | (189,962,460 | ) | (26,400,000 | ) | (598,911,057 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net decrease | (2,800,000 | ) | $ | (59,521,814 | ) | (17,800,000 | ) | $ | (403,947,951 | ) | ||||||
|
|
|
| �� |
|
|
|
| ||||||||
MSCI Canada | ||||||||||||||||
Shares sold | 4,600,000 | $ | 127,122,023 | 35,900,000 | $ | 1,032,578,219 | ||||||||||
Shares redeemed | (13,400,000 | ) | (350,841,484 | ) | (44,300,000 | ) | (1,268,791,424 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net decrease | (8,800,000 | ) | $ | (223,719,461 | ) | (8,400,000 | ) | $ | (236,213,205 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
MSCI Japan | ||||||||||||||||
Shares sold | 68,250,000 | $ | 3,734,304,291 | 99,600,000 | $ | 6,015,335,010 | ||||||||||
Shares redeemed | (72,450,000 | ) | (3,946,263,596 | ) | (102,750,000 | ) | (6,065,721,485 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net decrease | (4,200,000 | ) | $ | (211,959,305 | ) | (3,150,000 | ) | $ | (50,386,475 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
MSCI Mexico | ||||||||||||||||
Shares sold | 22,000,000 | $ | 938,736,358 | 33,200,000 | $ | 1,674,175,777 | ||||||||||
Shares redeemed | (21,200,000 | ) | (940,574,400 | ) | (33,300,000 | ) | (1,659,671,499 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase(decrease) | 800,000 | $ | (1,838,042 | ) | (100,000 | ) | $ | 14,504,278 | ||||||||
|
|
|
|
|
|
|
| |||||||||
MSCI South Korea | ||||||||||||||||
Shares sold | 22,350,000 | $ | 1,344,687,385 | 6,850,000 | $ | 492,531,534 | ||||||||||
Shares redeemed | — | — | (4,600,000 | ) | (319,494,479 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase | 22,350,000 | $ | 1,344,687,385 | 2,250,000 | $ | 173,037,055 | ||||||||||
|
|
|
|
|
|
|
|
The consideration for the purchase of Creation Units of a fund in the Company generally consists of thein-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
N O T E S T O F I N A N C I A L S T A T E M E N T S |
Notes to Financial Statements (unaudited) (continued)
and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in shares sold in the table above.
11. | LEGAL PROCEEDINGS |
On June 16, 2016, investors in certain iShares funds (iShares Core S&PSmall-Cap ETF, iShares Russell 1000 Growth ETF, iShares Core S&P 500 ETF, iShares RussellMid-Cap Growth ETF, iShares RussellMid-Cap ETF, iShares RussellMid-Cap Value ETF, iShares Select Dividend ETF, iShares MorningstarMid-Cap ETF, iShares MorningstarLarge-Cap ETF, iShares U.S. Aerospace & Defense ETF and iShares U.S. Preferred Stock ETF) filed a 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.
12. | REGULATIONS-X AMENDMENTS |
On August 17, 2018, the SEC adopted amendments to certain disclosure requirements in Securities Act ReleaseNo. 33-10532,Disclosure Update and Simplification.The Funds have adopted the amendments pertinent to RegulationS-X in this shareholder report. The amendments impacted certain disclosure presentation on the statement of assets and liabilities, statement of changes in net assets and notes to the financial statements.
Prior year distribution information and undistributed (distributions in excess of) net investment income in the statement of changes in net assets has been modified to conform to the current year presentation in accordance with the RegulationS-X changes.
Distributions for the year ended August 31, 2018 were classified as follows:
iShares ETF | Net Investment Income | |||
MSCI Australia | $ | 70,243,817 | ||
MSCI Canada | 62,114,985 | |||
MSCI Japan | 279,038,333 | |||
MSCI Mexico | 22,542,336 | |||
MSCI South Korea | 118,169,941 |
Undistributed (distributions in excess of) net investment income as of August 31, 2018 are as follows:
iShares ETF | Undistributed (distributions in excess of) net investment income | |||
MSCI Australia | $ | 5,589,658 | ||
MSCI Canada | 4,969,296 | |||
MSCI Japan | (13,175,500 | ) | ||
MSCI Mexico | 5,242,328 | |||
MSCI South Korea | (104,898,504 | ) |
13. | SUBSEQUENT EVENTS |
Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.
2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Glossary of Terms Used in this Report
Portfolio Abbreviations — Equity | ||
CPO | Certificates of Participation (Ordinary) | |
NVS | Non-Voting Shares |
G L O S S A R Y O F T E R M S U S E D I N T H I S R E P O R T |
For more information visit www.iShares.com or call1-800-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.
©2019 BlackRock, Inc. All rights reserved.iSHARESandBLACKROCKare registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners. |
FEBRUARY 28, 2019
2019 SEMI-ANNUAL REPORT (UNAUDITED) |
iShares Trust
▶ | iShares Adaptive Currency Hedged MSCI Eurozone ETF | DEZU | Cboe BZX |
▶ | iShares Currency Hedged MSCI Eurozone ETF | HEZU | NYSE Arca |
▶ | iShares Currency Hedged MSCI Germany ETF | HEWG | NASDAQ |
▶ | iShares Currency Hedged MSCI Italy ETF | HEWI | NYSE Arca |
▶ | iShares Currency Hedged MSCI Spain ETF | HEWP | NYSE Arca |
▶ | iShares Currency Hedged MSCI Switzerland ETF | HEWL | NYSE Arca |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of each Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
You may elect to receive all future reports in paper free of charge. If you hold accounts through a financial intermediary, you can follow the instructions included with this disclosure, if applicable, or contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. Please note that not all financial intermediaries may offer this service. Your election to receive reports in paper will apply to all funds held with your financial intermediary.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive electronic delivery of shareholder reports and other communications by contacting your financial intermediary. Please note that not all financial intermediaries may offer this service.
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Fund Summary as of February 28, 2019 | iShares® Adaptive Currency Hedged MSCI Eurozone ETF |
Investment Objective
TheiShares 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.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||
6 Months | 1 Year | Since Inception | 1 Year | Since Inception | ||||||||||||||||||||
Fund NAV | (2.76 | )% | (2.51 | )% | 6.92 | % | (2.51 | )% | 23.47 | % | ||||||||||||||
Fund Market | (2.82 | ) | (2.60 | ) | 6.93 | (2.60 | ) | 23.50 | ||||||||||||||||
Index | (2.73 | ) | (3.06 | ) | 7.18 | (3.06 | ) | 24.46 |
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.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||
| Beginning Account Value (09/01/18) | | Ending Account Value (02/28/19) |
| | Expenses Paid During the Period | (a)(b) | | Beginning Account Value (09/01/18) |
| | Ending Account Value (02/28/19) |
| | Expenses Paid During the Period | (a)(b) | | Annualized Expense Ratio (a) |
| |||||||||||
|
| |||||||||||||||||||||||||||||
$ 1,000.00 | $ 972.40 | $ 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. |
Portfolio Information
Tables shown are for the underlying fund in which the Fund invests.
ALLOCATION BY SECTOR
Sector | | Percent of Total Investments | (a) | |
Financials | 18.1 | % | ||
Industrials | 14.7 | |||
Consumer Discretionary | 13.2 | |||
Consumer Staples | 10.5 | |||
Information Technology | 9.0 | |||
Health Care | 7.5 | |||
Materials | 7.3 | |||
Energy | 6.0 | |||
Utilities | 6.0 | |||
Communication Services | 5.6 | |||
Real Estate | 2.1 |
(a) | Excludes money market funds. |
TEN LARGEST COUNTRIES
Country | | Percent of Total Investments | (a) | |
France | 34.9 | % | ||
Germany | 27.4 | |||
Netherlands | 11.4 | |||
Spain | 9.6 | |||
Italy | 7.1 | |||
Finland | 3.3 | |||
Belgium | 3.1 | |||
Ireland | 1.7 | |||
Austria | 0.8 | |||
Portugal | 0.5 |
F U N D S U M M A R Y | 5 |
Fund Summary as of February 28, 2019 | iShares® Currency Hedged MSCI Eurozone ETF |
Investment Objective
TheiShares 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.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||
6 Months | 1 Year | Since Inception | 1 Year | Since Inception | ||||||||||||||||||||
Fund NAV | (2.46 | )% | 0.37 | % | 5.77 | % | 0.37 | % | 29.75 | % | ||||||||||||||
Fund Market | (2.53 | ) | 0.40 | 5.75 | 0.40 | 29.65 | ||||||||||||||||||
Index | (2.28 | ) | 0.00 | (a) | 6.17 | 0.00 | (a) | 32.07 |
(a) | Rounds to less than 0.01%. |
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.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||
| Beginning Account Value (09/01/18) | | | Ending Account Value (02/28/19) | | | Expenses Paid During the Period | (a)(b) | | Beginning Account Value (09/01/18) | | | Ending Account Value (02/28/19) | | | Expenses Paid During the Period | (a)(b) | | Annualized Expense Ratio (a) | | ||||||||||
|
| |||||||||||||||||||||||||||||
$ 1,000.00 | $ 975.40 | $ 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. |
Portfolio Information
Tables shown are for the underlying fund in which the Fund invests.
ALLOCATION BY SECTOR
Sector | | Percent of Total Investments | (a) | |
Financials | 18.1 | % | ||
Industrials | 14.7 | |||
Consumer Discretionary | 13.2 | |||
Consumer Staples | 10.5 | |||
Information Technology | 9.0 | |||
Health Care | 7.5 | |||
Materials | 7.3 | |||
Energy | 6.0 | |||
Utilities | 6.0 | |||
Communication Services | 5.6 | |||
Real Estate | 2.1 |
(a) | Excludes money market funds. |
TEN LARGEST COUNTRIES
Country | | Percent of Total Investments | (a) | |
France | 34.9 | % | ||
Germany | 27.4 | |||
Netherlands | 11.4 | |||
Spain | 9.6 | |||
Italy | 7.1 | |||
Finland | 3.3 | |||
Belgium | 3.1 | |||
Ireland | 1.7 | |||
Austria | 0.8 | |||
Portugal | 0.5 |
6 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Fund Summary as of February 28, 2019 | iShares® Currency Hedged MSCI Germany ETF |
Investment Objective
TheiShares 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.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||||||
6 Months | 1 Year | 5 Years | Since Inception | 1 Year | 5 Years | Since Inception | ||||||||||||||||||||||||||
Fund NAV | (6.26 | )% | (4.79 | )% | 4.11 | % | 4.88 | % | (4.79 | )% | 22.29 | % | 27.35 | % | ||||||||||||||||||
Fund Market | (6.33 | ) | (4.83 | ) | 4.07 | 4.87 | (4.83 | ) | 22.09 | 27.29 | ||||||||||||||||||||||
Index | (6.35 | ) | (5.18 | ) | 4.33 | 5.12 | (5.18 | ) | 23.59 | 28.88 |
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.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||
| Beginning Account Value (09/01/18) | | | Ending Account Value (02/28/19) | | | Expenses Paid During the Period | (a)(b) | | Beginning Account Value (09/01/18) | | | Ending Account Value (02/28/19) | | | Expenses Paid During the Period | (a)(b) | | Annualized Expense Ratio (a) | | ||||||||||
|
| |||||||||||||||||||||||||||||
$ 1,000.00 | $ 937.40 | $ 0.19 | $ 1,000.00 | $ 1,024.60 | $ 0.20 | 0.04% | ||||||||||||||||||||||||
|
|
(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. |
Portfolio Information
Tables shown are for the underlying fund in which the Fund invests.
ALLOCATION BY SECTOR
Sector | | Percent of Total Investments | (a) | |
Consumer Discretionary | 18.0 | % | ||
Financials | 15.9 | |||
Industrials | 13.3 | |||
Health Care | 12.5 | |||
Information Technology | 12.3 | |||
Materials | 10.3 | |||
Communication Services | 6.2 | |||
Utilities | 4.1 | |||
Real Estate | 4.0 | |||
Consumer Staples | 3.4 |
(a) | Excludes money market funds. |
TEN LARGEST HOLDINGS
Security | | Percent of Total Investments | (a) | |
SAP SE | 8.9 | % | ||
Allianz SE | 8.0 | |||
Siemens AG | 7.0 | |||
Bayer AG | 6.3 | |||
BASF SE | 5.9 | |||
Deutsche Telekom AG | 4.6 | |||
Daimler AG | 4.6 | |||
adidas AG | 3.7 | |||
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen | 3.0 | |||
Volkswagen AG | 2.7 |
F U N D S U M M A R Y | 7 |
Fund Summary as of February 28, 2019 | iShares® Currency Hedged MSCI Italy ETF |
Investment Objective
TheiShares 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.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||
6 Months | 1 Year | Since Inception | 1 Year | Since Inception | ||||||||||||||||||||
Fund NAV | 5.53 | % | (0.83 | )% | 2.15 | % | (0.83 | )% | 8.11 | % | ||||||||||||||
Fund Market | 5.39 | (0.84 | ) | 2.10 | (0.84 | ) | 7.94 | |||||||||||||||||
Index | 5.51 | (1.55 | ) | 1.83 | (1.55 | ) | 6.90 |
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.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||
| Beginning Account Value (09/01/18) | | | Ending Account Value (02/28/19) | | | Expenses Paid During the Period | (a)(b) | | Beginning Account Value (09/01/18) | | | Ending Account Value (02/28/19) | | | Expenses Paid During the Period | (a)(b) | | Annualized Expense Ratio (a) | | ||||||||||
|
| |||||||||||||||||||||||||||||
$ 1,000.00 | $ 1,055.30 | $ 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 11 for more information. |
Portfolio Information
Tables shown are for the underlying fund in which the Fund invests.
ALLOCATION BY SECTOR
Sector | | Percent of Total Investments | (a) | |
Financials | 29.8 | % | ||
Energy | 19.4 | |||
Utilities | 17.8 | |||
Consumer Discretionary | 12.9 | |||
Industrials | 11.8 | |||
Communication Services | 4.2 | |||
Consumer Staples | 2.3 | |||
Health Care | 1.8 |
(a) | Excludes money market funds. |
TEN LARGEST HOLDINGS
Security | | Percent of Total Investments | (a) | |
Enel SpA | 14.5 | % | ||
Eni SpA | 12.8 | |||
Intesa Sanpaolo SpA | 10.5 | |||
UniCredit SpA | 7.5 | |||
Assicurazioni Generali SpA | 4.6 | |||
Ferrari NV | 4.5 | |||
Fiat Chrysler Automobiles NV | 4.4 | |||
Atlantia SpA | 4.3 | |||
Snam SpA | 4.1 | |||
CNH Industrial NV | 4.0 |
8 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Fund Summary as of February 28, 2019 | iShares® Currency Hedged MSCI Spain ETF |
Investment Objective
TheiShares 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.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||
6 Months | 1 Year | Since Inception | 1 Year | Since Inception | ||||||||||||||||||||
Fund NAV | 3.50 | % | 1.59 | % | 1.25 | % | 1.59 | % | 4.66 | % | ||||||||||||||
Fund Market | 3.36 | 1.44 | 1.22 | 1.44 | 4.56 | |||||||||||||||||||
Index | 3.60 | 1.32 | 1.40 | 1.32 | 5.23 |
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.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||
| Beginning Account Value (09/01/18) | | | Ending Account Value (02/28/19) | | | Expenses Paid During the Period | (a)(b) | | Beginning Account Value (09/01/18) | | | Ending Account Value (02/28/19) | | | Expenses Paid During the Period | (a)(b) | | Annualized Expense Ratio (a) | | ||||||||||
|
| |||||||||||||||||||||||||||||
$ 1,000.00 | $ 1,035.00 | $ 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. |
Portfolio Information
Tables shown are for the underlying fund in which the Fund invests.
ALLOCATION BY SECTOR
Sector | | Percent of Total Investments | (a) | |
Financials | 38.5 | % | ||
Utilities | 20.8 | |||
Industrials | 13.5 | |||
Communication Services | 8.5 | |||
Energy | 7.0 | |||
Consumer Discretionary | 4.7 | |||
Information Technology | 4.3 | |||
Health Care | 2.7 |
(a) | Excludes money market funds. |
TEN LARGEST HOLDINGS
Security | | Percent of Total Investments | (a) | |
Banco Santander SA | 17.9 | % | ||
Iberdrola SA | 11.3 | |||
Banco Bilbao Vizcaya Argentaria SA | 8.7 | |||
Telefonica SA | 8.5 | |||
Industria de Diseno Textil SA | 4.7 | |||
Repsol SA | 4.5 | |||
Amadeus IT Group SA | 4.3 | |||
CaixaBank SA | 3.9 | |||
Ferrovial SA | 3.9 | |||
ACS Actividades de Construccion y Servicios SA | 3.9 |
F U N D S U M M A R Y | 9 |
Fund Summary as of February 28, 2019 | iShares® Currency Hedged MSCI Switzerland ETF |
Investment Objective
TheiShares 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.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||
6 Months | 1 Year | Since Inception | 1 Year | Since Inception | ||||||||||||||||||||
Fund NAV | 4.06 | % | 10.60 | % | 7.63 | % | 10.60 | % | 30.99 | % | ||||||||||||||
Fund Market | 3.94 | 10.51 | 7.63 | 10.51 | 30.98 | |||||||||||||||||||
Index | 4.35 | 10.78 | 7.78 | 10.78 | 31.63 |
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.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||
| Beginning Account Value (09/01/18) | | | Ending Account Value (02/28/19) | | | Expenses Paid During the Period | (a)(b) | | Beginning Account Value (09/01/18) | | | Ending Account Value (02/28/19) | | | Expenses Paid During the Period | (a)(b) | | Annualized Expense Ratio (a) | | ||||||||||
|
| |||||||||||||||||||||||||||||
$ 1,000.00 | $ 1,040.60 | $ 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. |
Portfolio Information
Tables shown are for the underlying fund in which the Fund invests.
ALLOCATION BY SECTOR
Sector | | Percent of Total Investments | (a) | |
Health Care | 30.5 | % | ||
Consumer Staples | 22.0 | |||
Financials | 20.4 | |||
Industrials | 10.1 | |||
Materials | 7.8 | |||
Consumer Discretionary | 6.0 | |||
Communication Services | 1.3 | |||
Information Technology | 1.1 | |||
Real Estate | 0.8 |
(a) | Excludes money market funds. |
TEN LARGEST HOLDINGS
Security | | Percent of Total Investments | (a) | |
Nestle SA | 19.5 | % | ||
Novartis AG | 12.8 | |||
Roche Holding AG | 12.6 | |||
Zurich Insurance Group AG | 4.5 | |||
UBS Group AG | 4.4 | |||
Cie. Financiere Richemont SA | 3.7 | |||
ABB Ltd. | 3.4 | |||
Credit Suisse Group AG | 3.0 | |||
Swiss Re AG | 2.9 | |||
LafargeHolcim Ltd. | 2.3 |
10 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
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 ask on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not trade in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary market trading in shares of the fund, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.
As a shareholder of your Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested at the beginning of the period (or from the commencement of operations if less than 6 months) and held through the end of the period, is intended to help you understand your ongoing costs (in dollars and cents) of investing in your Fund and to compare these costs with the ongoing costs of investing in other funds.
Actual Expenses— The table provides information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. To estimate the expenses that you paid on your account over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During the Period.”
Hypothetical Example for Comparison Purposes— The table also provides information about hypothetical account values and hypothetical expenses based on your Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions 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.
A B O U T F U N D P E R F O R M A N C E / S H A R E H O L D E R E X P E N S E S | 11 |
Schedule of Investments (unaudited) February 28, 2019 | iShares® Adaptive Currency Hedged MSCI Eurozone ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Investment Companies | ||||||||
Exchange-Traded Funds — 99.9% | ||||||||
iShares MSCI Eurozone ETF(a) | 69,094 | $ | 2,661,501 | |||||
|
| |||||||
Total Investment Companies — 99.9% | 2,661,501 | |||||||
|
| |||||||
Short-Term Investments | ||||||||
Money Market Funds — 0.1% | ||||||||
BlackRock Cash Funds: Treasury, | 1,331 | 1,331 | ||||||
|
| |||||||
Total Short-Term Investments — 0.1% | 1,331 | |||||||
|
| |||||||
Total Investments in Securities — 100.0% |
| 2,662,832 | ||||||
Other Assets, Less Liabilities — 0.0% | 1,245 | |||||||
|
| |||||||
Net Assets — 100.0% | $ | 2,664,077 | ||||||
|
|
(a) | Affiliate of the Fund. |
(b) | Annualized 7-day yield as of period-end. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2019, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Shares Held at | Shares | Shares | Shares Held at | Value at | Net Realized | Change in Unrealized Appreciation | ||||||||||||||||||||||||||
Affiliated Issuer | 08/31/18 | Purchased | Sold | 02/28/19 | 02/28/19 | Income | Gain (Loss) | (a) | (Depreciation) | |||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | 1,025,692 | — | (1,025,692 | )(b) | — | $ | — | $ | 325 | (c) | $ | 113 | $ | — | ||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 1,518 | — | (187 | )(b) | 1,331 | 1,331 | 28 | — | — | |||||||||||||||||||||||
iShares MSCI Eurozone ETF | 67,550 | 3,457 | (1,913 | ) | 69,094 | 2,661,501 | 13,259 | (10,503 | ) | (170,363 | ) | |||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 2,662,832 | $ | 13,612 | $ | (10,390 | ) | $ | (170,363 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Net of purchases and sales. |
(c) | Includes 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, and less fees paid to BTC as securities lending agent. |
Forward Foreign Currency Exchange Contracts
Currency Purchased | Currency Sold | Counterparty | Settlement Date | Unrealized Appreciation (Depreciation) | ||||||||||||||||
USD | 3,581,622 | EUR | 3,134,000 | MS | 03/04/19 | $ | 16,855 | |||||||||||||
USD | 1,322,810 | EUR | 1,159,000 | MS | 04/02/19 | 1,277 | ||||||||||||||
|
| |||||||||||||||||||
18,132 | ||||||||||||||||||||
|
| |||||||||||||||||||
EUR | 3,134,000 | USD | 3,572,320 | MS | 03/04/19 | (7,553 | ) | |||||||||||||
|
| |||||||||||||||||||
Net unrealized appreciation | $ | 10,579 | ||||||||||||||||||
|
|
12 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® Adaptive Currency Hedged MSCI Eurozone ETF |
Derivative Financial Instruments Categorized by Risk Exposure
As of February 28, 2019, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:
Foreign Currency Exchange Contracts | ||||
Assets — Derivative Financial Instruments | ||||
Forward foreign currency exchange contracts | ||||
Unrealized appreciation on forward foreign currency exchange contracts | $ | 18,132 | ||
|
| |||
Liabilities — Derivative Financial Instruments | ||||
Forward foreign currency exchange contracts | ||||
Unrealized depreciation on forward foreign currency exchange contracts | $ | 7,553 | ||
|
|
For the six months ended February 28, 2019, the effect of derivative financial instruments in the Statement of Operations was as follows:
Foreign Currency Exchange Contracts | ||||
Net Realized Gain (Loss) from: | ||||
Forward foreign currency exchange contracts | $ | 100,644 | ||
|
| |||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Forward foreign currency exchange contracts | $ | (14,018 | ) | |
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Forward foreign currency exchange contracts: | ||||
Average amounts purchased — in USD | $ | 5,152,418 | ||
Average amounts sold — in USD | $ | 6,965,653 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Derivative Financial Instruments — Offsetting as of Period End
The Fund’s derivative assets and liabilities (by type) were as follows:
Assets | Liabilities | |||||||
Derivative Financial Instruments: | ||||||||
Forward foreign currency exchange contracts | $ | 18,132 | $ | 7,553 | ||||
|
|
|
| |||||
Total derivative assets and liabilities in the Statement of Assets and Liabilities | $ | 18,132 | $ | 7,553 | ||||
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”) | — | — | ||||||
|
|
|
| |||||
Total derivative assets and liabilities subject to an MNA | $ | 18,132 | $ | 7,553 | ||||
|
|
|
|
The following tables presents the Fund’s derivative assets and liabilities by counterparty net of amounts available for offset under an MNA and net of the related collateral received and pledged by the Fund:
| ||||||||||||
Derivative Assets Subject to | Derivatives Available | Net Amount of Derivative | ||||||||||
Counterparty | Counterparty | for Offset | (a) | Assets | (b) | |||||||
| ||||||||||||
Morgan Stanley & Co. International PLC | $ | 18,132 | $ | (7,553 | ) | $ | 10,579 | |||||
|
|
|
|
|
| |||||||
| ||||||||||||
| Derivative Liabilities Subject to an MNA by | | | Derivatives Available | | | Net Amount of Derivative | | ||||
Counterparty | Counterparty | for Offset | (a) | Liabilities | ||||||||
| ||||||||||||
Morgan Stanley & Co. International PLC | $ | 7,553 | $ | (7,553 | ) | $ | — | |||||
|
|
|
|
|
|
S C H E D U L E O F I N V E S T M E N T S | 13 |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® Adaptive Currency Hedged MSCI Eurozone ETF |
(a) | The amount of derivatives available for offset is limited to the amount of derivatives assets and/or liabilities that are subject to an MNA. |
(b) | Net amount represents the net amount receivable from the counterparty in the event of default. |
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, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2019. 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 | $ | 2,661,501 | $ | — | $ | — | $ | 2,661,501 | ||||||||
Money Market Funds | 1,331 | — | — | 1,331 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 2,662,832 | $ | — | $ | — | $ | 2,662,832 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Assets | ||||||||||||||||
Forward Foreign Currency Exchange Contracts | $ | — | $ | 18,132 | $ | — | $ | 18,132 | ||||||||
Liabilities | ||||||||||||||||
Forward Foreign Currency Exchange Contracts | — | (7,553 | ) | — | (7,553 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | — | $ | 10,579 | $ | — | $ | 10,579 | |||||||||
|
|
|
|
|
|
|
|
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
14 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) February 28, 2019 | iShares® Currency Hedged MSCI Eurozone ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Investment Companies | ||||||||
Exchange-Traded Funds — 99.7% | ||||||||
iShares MSCI Eurozone ETF(a) | 26,231,183 | $ | 1,010,425,169 | |||||
|
| |||||||
Total Investment Companies — 99.7% | 1,010,425,169 | |||||||
|
| |||||||
Short-Term Investments | ||||||||
Money Market Funds — 0.2% | ||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 2.33%(a)(b) | 1,481,368 | 1,481,368 | ||||||
|
| |||||||
Total Short-Term Investments — 0.2% | 1,481,368 | |||||||
|
| |||||||
Total Investments in Securities — 99.9% |
| 1,011,906,537 | ||||||
Other Assets, Less Liabilities — 0.1% | 1,312,352 | |||||||
|
| |||||||
Net Assets — 100.0% | $ | 1,013,218,889 | ||||||
|
|
(a) | Affiliate of the Fund. |
(b) | Annualized 7-day yield as of period-end. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2019, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Shares Held at | Shares | Shares | Shares Held at | Value at | Net Realized | Change in Unrealized Appreciation | ||||||||||||||||||||||||||
Affiliated Issuer | 08/31/18 | Purchased | Sold | 02/28/19 | 02/28/19 | Income | Gain (Loss) | (a) | (Depreciation) | |||||||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 1,253,799 | 227,569 | (b) | — | 1,481,368 | $ | 1,481,368 | $ | 18,688 | $ | — | $ | — | |||||||||||||||||||
iShares MSCI Eurozone ETF | 40,003,101 | 6,715,791 | (20,487,709 | ) | 26,231,183 | 1,010,425,169 | 7,031,139 | (60,354,493 | ) | (81,912,864 | ) | |||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 1,011,906,537 | $ | 7,049,827 | $ | (60,354,493 | ) | $ | (81,912,864 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Net of purchases and sales. |
Forward Foreign Currency Exchange Contracts
Currency Purchased | Currency Sold | Counterparty | Settlement Date | Unrealized Appreciation (Depreciation) | ||||||||||||||||||
EUR | 183,000 | USD | 207,476 | BOA | 03/04/19 | $ | 677 | |||||||||||||||
EUR | 14,847,000 | USD | 16,835,039 | DB | 03/04/19 | 52,672 | ||||||||||||||||
EUR | 12,019,000 | USD | 13,575,244 | UBS | 03/04/19 | 95,760 | ||||||||||||||||
USD | 810,737,438 | EUR | 707,471,810 | BBP | 03/04/19 | 6,024,063 | ||||||||||||||||
USD | 72,933,519 | EUR | 63,414,000 | BOA | 03/04/19 | 803,304 | ||||||||||||||||
USD | 8,856,978 | EUR | 7,720,000 | DB | 03/04/19 | 75,869 | ||||||||||||||||
USD | 39,685,475 | EUR | 34,632,500 | JPM | 03/04/19 | 292,760 | ||||||||||||||||
USD | 188,466,049 | EUR | 164,912,070 | MS | 03/04/19 | 886,916 | ||||||||||||||||
USD | 871,243,741 | EUR | 762,168,310 | DB | 04/02/19 | 2,192,233 | ||||||||||||||||
USD | 35,352,804 | EUR | 30,972,000 | JPM | 04/02/19 | 37,424 | ||||||||||||||||
USD | 94,111,608 | EUR | 82,456,035 | MS | 04/02/19 | 92,294 | ||||||||||||||||
|
| |||||||||||||||||||||
10,553,972 | ||||||||||||||||||||||
|
| |||||||||||||||||||||
EUR | 762,168,310 | USD | 869,137,870 | DB | 03/04/19 | (2,209,996 | ) | |||||||||||||||
EUR | 7,156,000 | USD | 8,219,488 | JPM | 03/04/19 | (79,900 | ) | |||||||||||||||
EUR | 164,912,070 | USD | 187,780,427 | MS | 03/04/19 | (201,294 | ) |
S C H E D U L E O F I N V E S T M E N T S | 15 |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® Currency Hedged MSCI Eurozone ETF |
Forward Foreign Currency Exchange Contracts (continued)
Currency Purchased | Currency Sold | Counterparty | Settlement Date | Unrealized Appreciation (Depreciation) | ||||||||||||||||||
EUR | 5,965,000 | USD | 6,865,724 | NAB | 03/04/19 | $ | (80,838 | ) | ||||||||||||||
EUR | 161,000 | USD | 183,138 | SSB | 03/04/19 | (9 | ) | |||||||||||||||
EUR | 10,739,000 | USD | 12,306,099 | UBS | 03/04/19 | (91,030 | ) | |||||||||||||||
EUR | 5,033,000 | USD | 5,740,573 | JPM | 04/02/19 | (1,767 | ) | |||||||||||||||
|
| |||||||||||||||||||||
(2,664,834 | ) | |||||||||||||||||||||
|
| |||||||||||||||||||||
Net unrealized appreciation | $ | 7,889,138 | ||||||||||||||||||||
|
|
Derivative Financial Instruments Categorized by Risk Exposure
As of February 28, 2019, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:
Foreign Currency Exchange Contracts | ||||
Assets — Derivative Financial Instruments | ||||
Forward foreign currency exchange contracts | ||||
Unrealized appreciation on forward foreign currency exchange contracts | $ | 10,553,972 | ||
|
| |||
Liabilities — Derivative Financial Instruments | ||||
Forward foreign currency exchange contracts | ||||
Unrealized depreciation on forward foreign currency exchange contracts | $ | 2,664,834 | ||
|
|
For the six months ended February 28, 2019, the effect of derivative financial instruments in the Statement of Operations was as follows:
Foreign Currency Exchange Contracts | ||||
Net Realized Gain (Loss) from: | ||||
Forward foreign currency exchange contracts | $ | 52,660,842 | ||
|
| |||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Forward foreign currency exchange contracts | $ | (1,779,268 | ) | |
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Forward foreign currency exchange contracts: | ||||
Average amounts purchased — in USD | $ | 1,600,946,351 | ||
Average amounts sold — in USD | $ | 2,964,334,643 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Derivative Financial Instruments — Offsetting as of Period End
The Fund’s derivative assets and liabilities (by type) were as follows:
Assets | Liabilities | |||||||
Derivative Financial Instruments: | ||||||||
Forward foreign currency exchange contracts | $ | 10,553,972 | $ | 2,664,834 | ||||
|
|
|
| |||||
Total derivative assets and liabilities in the Statement of Assets and Liabilities | $ | 10,553,972 | $ | 2,664,834 | ||||
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”) | — | — | ||||||
|
|
|
| |||||
Total derivative assets and liabilities subject to an MNA | $ | 10,553,972 | $ | 2,664,834 | ||||
|
|
|
|
16 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® Currency Hedged MSCI Eurozone ETF |
The following tables presents the Fund’s derivative assets and liabilities by counterparty net of amounts available for offset under an MNA and net of the related collateral received and pledged by the Fund:
| ||||||||||||||||
Derivative Assets Subject to an MNA by | Derivatives Available | Cash Collateral | Net Amount of Derivative | |||||||||||||
Counterparty | Counterparty | for Offset | (a) | Received | (b) | Assets | (c)(d) | |||||||||
| ||||||||||||||||
Bank of America N.A. | $ | 803,981 | $ | — | $ | — | $ | 803,981 | ||||||||
Barclays Bank PLC Wholesale | 6,024,063 | — | — | 6,024,063 | ||||||||||||
Deutsche Bank AG London | 2,320,774 | (2,209,996 | ) | — | 110,778 | |||||||||||
JPMorgan Chase Bank N.A. | 330,184 | (81,667 | ) | — | 248,517 | |||||||||||
Morgan Stanley & Co. International PLC | 979,210 | (201,294 | ) | (777,916 | ) | — | ||||||||||
UBS AG | 95,760 | (91,030 | ) | — | 4,730 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 10,553,972 | $ | (2,583,987 | ) | $ | (777,916 | ) | $ | 7,192,069 | |||||||
|
|
|
|
|
|
|
| |||||||||
| ||||||||||||||||
Derivative Liabilities Subject to an MNA by | Derivatives Available | Cash Collateral | Net Amount of Derivative | |||||||||||||
Counterparty | Counterparty | for Offset | (a) | Pledged | Liabilities | (d)(e) | ||||||||||
| ||||||||||||||||
Deutsche Bank AG London | $ | 2,209,996 | $ | (2,209,996 | ) | $ | — | $ | — | |||||||
JPMorgan Chase Bank N.A. | 81,667 | (81,667 | ) | — | — | |||||||||||
Morgan Stanley & Co. International PLC | 201,294 | (201,294 | ) | — | — | |||||||||||
National Australia Bank Limited | 80,838 | — | — | 80,838 | ||||||||||||
State Street Bank and Trust Co. | 9 | — | — | 9 | ||||||||||||
UBS AG | 91,030 | (91,030 | ) | — | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 2,664,834 | $ | (2,583,987 | ) | $ | — | $ | 80,847 | ||||||||
|
|
|
|
|
|
|
|
(a) | The amount of derivatives available for offset is limited to the amount of derivatives assets and/or liabilities that are subject to an MNA. |
(b) | Excess of collateral received from the individual counterparty is not shown for financial reporting purposes. |
(c) | Net amount represents the net amount receivable from the counterparty in the event of default. |
(d) | Net amount may also include forward foreign currency exchange contracts that are not required to be collateralized. |
(e) | Net amount represents the net amount payable due to the counterparty in the event of default. |
Fair Value 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, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2019. 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 | $ | 1,010,425,169 | $ | — | $ | — | $ | 1,010,425,169 | ||||||||
Money Market Funds | 1,481,368 | — | — | 1,481,368 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 1,011,906,537 | $ | — | $ | — | $ | 1,011,906,537 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Assets | ||||||||||||||||
Forward Foreign Currency Exchange Contracts | $ | — | $ | 10,553,972 | $ | — | $ | 10,553,972 | ||||||||
Liabilities | ||||||||||||||||
Forward Foreign Currency Exchange Contracts | — | (2,664,834 | ) | — | (2,664,834 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | — | $ | 7,889,138 | $ | — | $ | 7,889,138 | |||||||||
|
|
|
|
|
|
|
|
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
S C H E D U L E O F I N V E S T M E N T S | 17 |
Schedule of Investments (unaudited) February 28, 2019 | iShares® Currency Hedged MSCI Germany ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Investment Companies | ||||||||
Exchange-Traded Funds — 99.7% | ||||||||
iShares MSCI Germany ETF(a) | 7,804,178 | $ | 213,054,059 | |||||
|
| |||||||
Total Investment Companies — 99.7% | 213,054,059 | |||||||
|
| |||||||
Short-Term Investments | ||||||||
Money Market Funds — 0.0% | ||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 2.33%(a)(b) | 89,255 | 89,255 | ||||||
|
| |||||||
Total Short-Term Investments — 0.0% | 89,255 | |||||||
|
| |||||||
Total Investments in Securities — 99.7% |
| 213,143,314 | ||||||
Other Assets, Less Liabilities — 0.3% | 639,907 | |||||||
|
| |||||||
Net Assets — 100.0% | $ | 213,783,221 | ||||||
|
|
(a) | Affiliate of the Fund. |
(b) | Annualized 7-day yield as of period-end. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2019, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Shares Held at | Shares | Shares | Shares Held at | Value at | Net Realized | Change in Unrealized Appreciation | ||||||||||||||||||||||||||
Affiliated Issuer | 08/31/18 | Purchased | Sold | 02/28/19 | 02/28/19 | Income | Gain (Loss) | (a) | (Depreciation) | |||||||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 217,433 | — | (128,178 | )(b) | 89,255 | $ | 89,255 | $ | 446 | $ | — | $ | — | |||||||||||||||||||
iShares MSCI Germany ETF | 10,830,959 | 2,573,324 | (5,600,105 | ) | 7,804,178 | 213,054,059 | — | (14,155,046 | ) | (20,535,705 | ) | |||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 213,143,314 | $ | 446 | $ | (14,155,046 | ) | $ | (20,535,705 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Net of purchases and sales. |
Forward Foreign Currency Exchange Contracts
Currency Purchased | Currency Sold | Counterparty | Settlement Date | Unrealized Appreciation (Depreciation) | ||||||||||||||||||
EUR | 63,000 | USD | 71,509 | CITI | 03/04/19 | $ | 150 | |||||||||||||||
EUR | 5,658,000 | USD | 6,418,230 | HSBC | 03/04/19 | 17,458 | ||||||||||||||||
EUR | 4,519,000 | USD | 5,130,290 | RBS | 03/04/19 | 9,844 | ||||||||||||||||
USD | 15,207,997 | EUR | 13,223,000 | BOA | 03/04/19 | 167,504 | ||||||||||||||||
USD | 38,641,741 | EUR | 33,812,400 | MS | 03/04/19 | 181,847 | ||||||||||||||||
USD | 983,172 | EUR | 857,000 | NAB | 03/04/19 | 8,378 | ||||||||||||||||
USD | 168,633,458 | EUR | 147,155,200 | SSB | 03/04/19 | 1,251,866 | ||||||||||||||||
USD | 5,729,727 | EUR | 5,000,600 | TDB | 03/04/19 | 41,798 | ||||||||||||||||
USD | 168,199,091 | EUR | 147,140,800 | BNP | 04/02/19 | 423,900 | ||||||||||||||||
USD | 4,525,825 | EUR | 3,965,000 | JPM | 04/02/19 | 4,791 | ||||||||||||||||
USD | 19,295,976 | EUR | 16,906,200 | MS | 04/02/19 | 18,923 | ||||||||||||||||
USD | 9,015,070 | EUR | 7,906,000 | RBS | 04/02/19 | 366 | ||||||||||||||||
|
| |||||||||||||||||||||
2,126,825 | ||||||||||||||||||||||
|
| |||||||||||||||||||||
EUR | 147,140,800 | USD | 167,791,879 | BNP | 03/04/19 | (426,666 | ) | |||||||||||||||
EUR | 4,382,000 | USD | 5,033,230 | JPM | 03/04/19 | (48,927 | ) |
18 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® Currency Hedged MSCI Germany ETF |
Forward Foreign Currency Exchange Contracts (continued)
Currency Purchased | Currency Sold | Counterparty | Settlement Date | Unrealized Appreciation (Depreciation) | ||||||||||||||||||
EUR | 33,812,400 | USD | 38,501,165 | MS | 03/04/19 | $ | (41,272 | ) | ||||||||||||||
EUR | 3,308,000 | USD | 3,783,006 | RBS | 03/04/19 | (20,323 | ) | |||||||||||||||
EUR | 45,000 | USD | 51,188 | SSB | 03/04/19 | (3 | ) | |||||||||||||||
EUR | 1,120,000 | USD | 1,275,482 | UBS | 03/04/19 | (1,538 | ) | |||||||||||||||
EUR | 1,323,000 | USD | 1,509,005 | RBS | 04/02/19 | (473 | ) | |||||||||||||||
USD | 12,949,149 | EUR | 11,358,000 | CITI | 04/02/19 | (1,648 | ) | |||||||||||||||
|
| |||||||||||||||||||||
(540,850 | ) | |||||||||||||||||||||
|
| |||||||||||||||||||||
Net unrealized appreciation | $ | 1,585,975 | ||||||||||||||||||||
|
|
Derivative Financial Instruments Categorized by Risk Exposure
As of February 28, 2019, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:
Foreign Currency Exchange Contracts | ||||
Assets — Derivative Financial Instruments | ||||
Forward foreign currency exchange contracts | ||||
Unrealized appreciation on forward foreign currency exchange contracts | $ | 2,126,825 | ||
|
| |||
Liabilities — Derivative Financial Instruments | ||||
Forward foreign currency exchange contracts | ||||
Unrealized depreciation on forward foreign currency exchange contracts | $ | 540,850 | ||
|
|
For the six months ended February 28, 2019, the effect of derivative financial instruments in the Statement of Operations was as follows:
Foreign Currency Exchange Contracts | ||||
Net Realized Gain (Loss) from: | ||||
Forward foreign currency exchange contracts | $ | 11,688,880 | ||
|
| |||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Forward foreign currency exchange contracts | $ | (1,616,972 | ) | |
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Forward foreign currency exchange contracts: | ||||
Average amounts purchased — in USD | $ | 336,502,209 | ||
Average amounts sold — in USD | $ | 610,042,599 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Derivative Financial Instruments — Offsetting as of Period End
The Fund’s derivative assets and liabilities (by type) were as follows:
Assets | Liabilities | |||||||
Derivative Financial Instruments: | ||||||||
Forward foreign currency exchange contracts | $ | 2,126,825 | $ | 540,850 | ||||
|
|
|
| |||||
Total derivative assets and liabilities in the Statement of Assets and Liabilities | $ | 2,126,825 | $ | 540,850 | ||||
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”) | — | — | ||||||
|
|
|
| |||||
Total derivative assets and liabilities subject to an MNA | $ | 2,126,825 | $ | 540,850 | ||||
|
|
|
|
S C H E D U L E O F I N V E S T M E N T S | 19 |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® Currency Hedged MSCI Germany ETF |
The following tables presents the Fund’s derivative assets and liabilities by counterparty net of amounts available for offset under an MNA and net of the related collateral received and pledged by the Fund:
| ||||||||||||
Derivative Assets Subject to an MNA by | Derivatives Available | Net Amount of Derivative | ||||||||||
Counterparty | Counterparty | for Offset | (a) | Assets | (b) | |||||||
| ||||||||||||
Bank of America N.A. | $ | 167,504 | $ | — | $ | 167,504 | ||||||
BNP Paribas SA | 423,900 | (423,900 | ) | — | ||||||||
Citibank N.A. | 150 | (150 | ) | — | ||||||||
HSBC Bank PLC | 17,458 | — | 17,458 | |||||||||
JPMorgan Chase Bank N.A. | 4,791 | (4,791 | ) | — | ||||||||
Morgan Stanley & Co. International PLC | 200,770 | (41,272 | ) | 159,498 | ||||||||
National Australia Bank Limited | 8,378 | — | 8,378 | |||||||||
Royal Bank of Scotland PLC | 10,210 | (10,210 | ) | — | ||||||||
State Street Bank and Trust Co. | 1,251,866 | (3 | ) | 1,251,863 | ||||||||
Toronto Dominion Bank | 41,798 | — | 41,798 | |||||||||
|
|
|
|
|
| |||||||
$ | 2,126,825 | $ | (480,326 | ) | $ | 1,646,499 | ||||||
|
|
|
|
|
| |||||||
| ||||||||||||
Derivative Liabilities Subject to an MNA by | Derivatives Available | Net Amount of Derivative | ||||||||||
Counterparty | Counterparty | for Offset | (a) | Liabilities | (c) | |||||||
| ||||||||||||
BNP Paribas SA | $ | 426,666 | $ | (423,900 | ) | $ | 2,766 | |||||
Citibank N.A. | 1,648 | (150 | ) | 1,498 | ||||||||
JPMorgan Chase Bank N.A. | 48,927 | (4,791 | ) | 44,136 | ||||||||
Morgan Stanley & Co. International PLC | 41,272 | (41,272 | ) | — | ||||||||
Royal Bank of Scotland PLC | 20,796 | (10,210 | ) | 10,586 | ||||||||
State Street Bank and Trust Co. | 3 | (3 | ) | — | ||||||||
UBS AG | 1,538 | — | 1,538 | |||||||||
|
|
|
|
|
| |||||||
$ | 540,850 | $ | (480,326 | ) | $ | 60,524 | ||||||
|
|
|
|
|
|
(a) | The amount of derivatives available for offset is limited to the amount of derivatives assets and/or liabilities that are subject to an MNA. |
(b) | Net amount represents the net amount receivable from the counterparty in the event of default. |
(c) | Net amount represents the net amount payable due to the counterparty in the event of default. |
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, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2019. 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 | $ | 213,054,059 | $ | — | $ | — | $ | 213,054,059 | ||||||||
Money Market Funds | 89,255 | — | — | 89,255 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 213,143,314 | $ | — | $ | — | $ | 213,143,314 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Assets | ||||||||||||||||
Forward Foreign Currency Exchange Contracts | $ | — | $ | 2,126,825 | $ | — | $ | 2,126,825 | ||||||||
Liabilities | ||||||||||||||||
Forward Foreign Currency Exchange Contracts | — | (540,850 | ) | — | (540,850 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | — | $ | 1,585,975 | $ | — | $ | 1,585,975 | |||||||||
|
|
|
|
|
|
|
|
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
20 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) February 28, 2019 | iShares® Currency Hedged MSCI Italy ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Investment Companies | ||||||||
Exchange-Traded Funds — 99.9% | ||||||||
iShares MSCI Italy ETF(a)(b) | 60,074 | $ | 1,631,009 | |||||
|
| |||||||
Total Investment Companies — 99.9% | 1,631,009 | |||||||
|
| |||||||
Short-Term Investments | ||||||||
Money Market Funds — 10.3% | ||||||||
BlackRock Cash Funds: Institutional, | 167,683 | 167,750 | ||||||
BlackRock Cash Funds: Treasury, | 726 | 726 | ||||||
|
| |||||||
168,476 | ||||||||
|
| |||||||
Total Short-Term Investments — 10.3% | 168,476 | |||||||
|
| |||||||
Total Investments in Securities — 110.2% |
| 1,799,485 | ||||||
Other Assets, Less Liabilities — (10.2)% | (166,172 | ) | ||||||
|
| |||||||
Net Assets — 100.0% | $ | 1,633,313 | ||||||
|
|
(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
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2019, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Shares Held at | Shares | Shares | Shares Held at | Value at | Net Realized | Change in Unrealized Appreciation | ||||||||||||||||||||||||||
Affiliated Issuer | 08/31/18 | Purchased | Sold | 02/28/19 | 02/28/19 | Income | Gain (Loss) | (a) | (Depreciation) | |||||||||||||||||||||||
BlackRock Cash Funds: Institutional, | 564,877 | — | (397,194 | )(b) | 167,683 | $ | 167,750 | $ | 4,652 | (c) | $ | (3 | ) | $ | (40 | ) | ||||||||||||||||
BlackRock Cash Funds: Treasury, | 1,482 | — | (756 | )(b) | 726 | 726 | 15 | — | — | |||||||||||||||||||||||
iShares MSCI Italy ETF | 87,201 | 5,573 | (32,700 | ) | 60,074 | 1,631,009 | 28,603 | (148,516 | ) | 75,700 | ||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 1,799,485 | $ | 33,270 | $ | (148,519 | ) | $ | 75,660 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Net of purchases and sales. |
(c) | Includes 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, and less fees paid to BTC as securities lending agent. |
Forward Foreign Currency Exchange Contracts
Currency Purchased | Currency Sold | Counterparty | Settlement Date | Unrealized Appreciation (Depreciation) | ||||||||||||||||||
USD | 3,127,111 | EUR | 2,736,000 | MS | 03/04/19 | $ | 15,050 | |||||||||||||||
USD | 1,619,588 | EUR | 1,419,000 | MS | 04/02/19 | 1,593 | ||||||||||||||||
|
| |||||||||||||||||||||
16,643 | ||||||||||||||||||||||
|
| |||||||||||||||||||||
EUR | 2,736,000 | USD | 3,115,401 | MS | 03/04/19 | (3,340 | ) | |||||||||||||||
EUR | 3,000 | USD | 3,422 | MS | 04/02/19 | (1 | ) | |||||||||||||||
|
| |||||||||||||||||||||
(3,341 | ) | |||||||||||||||||||||
|
| |||||||||||||||||||||
Net unrealized appreciation | $ | 13,302 | ||||||||||||||||||||
|
|
S C H E D U L E O F I N V E S T M E N T S | 21 |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® Currency Hedged MSCI Italy ETF |
Derivative Financial Instruments Categorized by Risk Exposure
As of February 28, 2019, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:
Foreign Currency Exchange Contracts | ||||
Assets — Derivative Financial Instruments | ||||
Forward foreign currency exchange contracts | ||||
Unrealized appreciation on forward foreign currency exchange contracts | $ | 16,643 | ||
|
| |||
Liabilities — Derivative Financial Instruments | ||||
Forward foreign currency exchange contracts | ||||
Unrealized depreciation on forward foreign currency exchange contracts | $ | 3,341 | ||
|
|
For the six months ended February 28, 2019, the effect of derivative financial instruments in the Statement of Operations was as follows:
Foreign Currency Exchange Contracts | ||||
Net Realized Gain (Loss) from: | ||||
Forward foreign currency exchange contracts | $ | 83,849 | ||
|
| |||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Forward foreign currency exchange contracts | $ | (8,879 | ) | |
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Forward foreign currency exchange contracts: | ||||
Average amounts purchased — in USD | $ | 4,441,689 | ||
Average amounts sold — in USD | $ | 6,557,403 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Derivative Financial Instruments — Offsetting as of Period End
The Fund’s derivative assets and liabilities (by type) were as follows:
Assets | Liabilities | |||||||
Derivative Financial Instruments: | ||||||||
Forward foreign currency exchange contracts | $ | 16,643 | $ | 3,341 | ||||
|
|
|
| |||||
Total derivative assets and liabilities in the Statement of Assets and Liabilities | $ | 16,643 | $ | 3,341 | ||||
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”) | — | — | ||||||
|
|
|
| |||||
Total derivative assets and liabilities subject to an MNA | $ | 16,643 | $ | 3,341 | ||||
|
|
|
|
The following tables presents the Fund’s derivative assets and liabilities by counterparty net of amounts available for offset under an MNA and net of the related collateral received and pledged by the Fund:
| ||||||||||||
Derivative Assets Subject to an MNA by | Derivatives Available | Net Amount of Derivative | ||||||||||
Counterparty | Counterparty | for Offset | (a) | Assets | (b) | |||||||
| ||||||||||||
Morgan Stanley & Co. International PLC | $ | 16,643 | $ | (3,341 | ) | $ | 13,302 | |||||
|
|
|
|
|
| |||||||
| ||||||||||||
Derivative Liabilities Subject to an MNA by | Derivatives Available | Net Amount of Derivative | ||||||||||
Counterparty | Counterparty | for Offset | (a) | Liabilities | ||||||||
| ||||||||||||
Morgan Stanley & Co. International PLC | $ | 3,341 | $ | (3,341 | ) | $ | — | |||||
|
|
|
|
|
|
22 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® Currency Hedged MSCI Italy ETF |
(a) | The amount of derivatives available for offset is limited to the amount of derivatives assets and/or liabilities that are subject to an MNA. |
(b) | Net amount represents the net amount receivable from the counterparty in the event of default. |
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, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2019. 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 | $ | 1,631,009 | $ | — | $ | — | $ | 1,631,009 | ||||||||
Money Market Funds | 168,476 | — | — | 168,476 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 1,799,485 | $ | — | $ | — | $ | 1,799,485 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Assets | ||||||||||||||||
Forward Foreign Currency Exchange Contracts | $ | — | $ | 16,643 | $ | — | $ | 16,643 | ||||||||
Liabilities | ||||||||||||||||
Forward Foreign Currency Exchange Contracts | — | (3,341 | ) | — | (3,341 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | — | $ | 13,302 | $ | — | $ | 13,302 | |||||||||
|
|
|
|
|
|
|
|
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
S C H E D U L E O F I N V E S T M E N T S | 23 |
Schedule of Investments (unaudited) February 28, 2019 | iShares® Currency Hedged MSCI Spain ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Investment Companies |
| |||||||
Exchange-Traded Funds — 99.8% | ||||||||
iShares MSCI Spain ETF(a)(b) | 441,979 | $ | 12,852,749 | |||||
|
| |||||||
Total Investment Companies — 99.8% | 12,852,749 | |||||||
|
| |||||||
Short-Term Investments |
| |||||||
Money Market Funds — 45.6% | ||||||||
BlackRock Cash Funds: Institutional, | 5,857,108 | 5,859,451 | ||||||
BlackRock Cash Funds: Treasury, | 7,002 | 7,002 | ||||||
|
| |||||||
5,866,453 | ||||||||
|
| |||||||
Total Short-Term Investments — 45.6% |
| 5,866,453 | ||||||
|
| |||||||
Total Investments in Securities — 145.4% |
| 18,719,202 | ||||||
Other Assets, Less Liabilities — (45.4)% |
| (5,846,521 | ) | |||||
|
| |||||||
Net Assets — 100.0% |
| $ | 12,872,681 | |||||
|
|
(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
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2019, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Affiliated Issuer | | Shares Held at 08/31/18 | | | Shares Purchased | | | Shares Sold | | | Shares Held at 02/28/19 | | | Value at 02/28/19 | | Income | | Net Realized Gain (Loss) |
(a) | | Change in Unrealized Appreciation (Depreciation) |
| ||||||||||
BlackRock Cash Funds: Institutional, | 2,037,735 | 3,819,373 | (b) | — | 5,857,108 | $ | 5,859,451 | $ | 26,680 | (c) | $ | (63 | ) | $ | 450 | |||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 10,424 | — | (3,422 | )(b) | 7,002 | 7,002 | 415 | — | — | |||||||||||||||||||||||
iShares MSCI Spain ETF | 530,838 | 36,956 | (125,815 | ) | 441,979 | 12,852,749 | 285,516 | (548,789 | ) | 30,419 | ||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 18,719,202 | $ | 312,611 | $ | (548,852 | ) | $ | 30,869 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Net of purchases and sales. |
(c) | Includes 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, and less fees paid to BTC as securities lending agent. |
Forward Foreign Currency Exchange Contracts
Currency Purchased | Currency Sold | Counterparty | Settlement Date | Unrealized Appreciation (Depreciation) | ||||||||||||||||||||||
USD | 25,215,921 | EUR | 22,062,000 | MS | 03/04/19 | $ | 121,513 | |||||||||||||||||||
USD | 12,804,880 | EUR | 11,219,000 | MS | 04/02/19 | 12,576 | ||||||||||||||||||||
|
| |||||||||||||||||||||||||
134,089 | ||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||
EUR | 22,062,000 | USD | 25,121,338 | MS | 03/04/19 | (26,929 | ) | |||||||||||||||||||
EUR | 62,000 | USD | 70,716 | MS | 04/02/19 | (22 | ) | |||||||||||||||||||
|
| |||||||||||||||||||||||||
(26,951 | ) | |||||||||||||||||||||||||
|
| |||||||||||||||||||||||||
Net unrealized appreciation | $ | 107,138 | ||||||||||||||||||||||||
|
|
24 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® Currency Hedged MSCI Spain ETF |
Derivative Financial Instruments Categorized by Risk Exposure
As of February 28, 2019, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:
Foreign Currency Exchange Contracts | ||||
Assets — Derivative Financial Instruments | ||||
Forward foreign currency exchange contracts | ||||
Unrealized appreciation on forward foreign currency exchange contracts | $ | 134,089 | ||
|
| |||
Liabilities — Derivative Financial Instruments | ||||
Forward foreign currency exchange contracts | ||||
Unrealized depreciation on forward foreign currency exchange contracts | $ | 26,951 | ||
|
|
For the six months ended February 28, 2019, the effect of derivative financial instruments in the Statement of Operations was as follows:
Foreign Currency Exchange Contracts | ||||
Net Realized Gain (Loss) from: | ||||
Forward foreign currency exchange contracts | $ | 575,061 | ||
|
| |||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Forward foreign currency exchange contracts | $ | (38,169 | ) | |
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Forward foreign currency exchange contracts: | ||||
Average amounts purchased — in USD | $ | 30,238,211 | ||
Average amounts sold — in USD | $ | 45,134,638 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Derivative Financial Instruments — Offsetting as of Period End
The Fund’s derivative assets and liabilities (by type) were as follows:
Assets | Liabilities | |||||||
Derivative Financial Instruments: | ||||||||
Forward foreign currency exchange contracts | $ | 134,089 | $ | 26,951 | ||||
|
|
|
| |||||
Total derivative assets and liabilities in the Statement of Assets and Liabilities | $ | 134,089 | $ | 26,951 | ||||
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”) | — | — | ||||||
|
|
|
| |||||
Total derivative assets and liabilities subject to an MNA | $ | 134,089 | $ | 26,951 | ||||
|
|
|
|
The following tables presents the Fund’s derivative assets and liabilities by counterparty net of amounts available for offset under an MNA and net of the related collateral received and pledged by the Fund:
Counterparty | Derivative Assets Subject to an MNA by Counterparty | Derivatives Available for Offset(a) | Net Amount of Derivative Assets(b) | |||||||||
Morgan Stanley & Co. International PLC | $ | 134,089 | $ | (26,951 | ) | $ | 107,138 | |||||
|
|
|
|
|
| |||||||
Counterparty | Derivative Liabilities Subject to an MNA by Counterparty | Derivatives Available for Offset(a) | Net Amount of Derivative Liabilities | |||||||||
Morgan Stanley & Co. International PLC | $ | 26,951 | $ | (26,951 | ) | $ | — | |||||
|
|
|
|
|
|
S C H E D U L E O F I N V E S T M E N T S | 25 |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® Currency Hedged MSCI Spain ETF |
(a) | The amount of derivatives available for offset is limited to the amount of derivatives assets and/or liabilities that are subject to an MNA. |
(b) | Net amount represents the net amount receivable from the counterparty in the event of default. |
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, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2019. 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 | $ | 12,852,749 | $ | — | $ | — | $ | 12,852,749 | ||||||||
Money Market Funds | 5,866,453 | — | — | 5,866,453 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 18,719,202 | $ | — | $ | — | $ | 18,719,202 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Assets | ||||||||||||||||
Forward Foreign Currency Exchange Contracts | $ | — | $ | 134,089 | $ | — | $ | 134,089 | ||||||||
Liabilities | ||||||||||||||||
Forward Foreign Currency Exchange Contracts | — | (26,951 | ) | — | (26,951 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | — | $ | 107,138 | $ | — | $ | 107,138 | |||||||||
|
|
|
|
|
|
|
|
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
26 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) February 28, 2019 | iShares® Currency Hedged MSCI Switzerland ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Investment Companies |
| |||||||
Exchange-Traded Funds — 99.9% | ||||||||
iShares MSCI Switzerland ETF(a)(b) | 194,013 | $ | 6,707,029 | |||||
|
| |||||||
Total Investment Companies — 99.9% | 6,707,029 | |||||||
|
| |||||||
Short-Term Investments |
| |||||||
Money Market Funds — 21.6% | ||||||||
BlackRock Cash Funds: Institutional, | 1,448,683 | 1,449,263 | ||||||
BlackRock Cash Funds: Treasury, | 2,695 | 2,695 | ||||||
|
| |||||||
1,451,958 | ||||||||
|
| |||||||
Total Short-Term Investments — 21.6% |
| 1,451,958 | ||||||
|
| |||||||
Total Investments in Securities — 121.5% |
| 8,158,987 | ||||||
Other Assets, Less Liabilities — (21.5)% |
| (1,443,801 | ) | |||||
|
| |||||||
Net Assets — 100.0% |
| $ | 6,715,186 | |||||
|
|
(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
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2019, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Affiliated Issuer | | Shares Held at 08/31/18 | | | Shares Purchased | | | Shares Sold | | | Shares Held at 02/28/19 | | | Value at 02/28/19 | | Income | | Net Realized Gain (Loss) |
(a) | | Change in Unrealized Appreciation (Depreciation) | | ||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | — | 1,448,683 | (b) | — | 1,448,683 | $ | 1,449,263 | $ | 1,361 | (c) | $ | 209 | $ | 418 | ||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 2,839 | — | (144 | )(b) | 2,695 | 2,695 | 76 | — | — | |||||||||||||||||||||||
iShares MSCI Switzerland ETF | 154,079 | 48,403 | (8,469 | ) | 194,013 | 6,707,029 | — | (19,116 | ) | 84,147 | ||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 8,158,987 | $ | 1,437 | $ | (18,907 | ) | $ | 84,565 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Net of purchases and sales. |
(c) | Includes 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, and less fees paid to BTC as securities lending agent. |
Forward Foreign Currency Exchange Contracts
Currency Purchased | Currency Sold | Counterparty | Settlement Date | Unrealized Appreciation (Depreciation) | ||||||||||||||||||||||
USD | 12,878,695 | CHF | 12,814,000 | MS | 03/04/19 | $ | 39,659 | |||||||||||||||||||
USD | 6,773,469 | CHF | 6,738,000 | MS | 04/02/19 | 3,719 | ||||||||||||||||||||
|
| |||||||||||||||||||||||||
43,378 | ||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||
CHF | 12,814,000 | USD | 12,854,381 | MS | 03/04/19 | (15,345 | ) | |||||||||||||||||||
CHF | 53,000 | USD | 53,269 | MS | 04/02/19 | (19 | ) | |||||||||||||||||||
|
| |||||||||||||||||||||||||
(15,364 | ) | |||||||||||||||||||||||||
|
| |||||||||||||||||||||||||
Net unrealized appreciation | $ | 28,014 | ||||||||||||||||||||||||
|
|
S C H E D U L E O F I N V E S T M E N T S | 27 |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® Currency Hedged MSCI Switzerland ETF |
Derivative Financial Instruments Categorized by Risk Exposure
As of February 28, 2019, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:
Foreign Currency Exchange Contracts | ||||
Assets — Derivative Financial Instruments | ||||
Forward foreign currency exchange contracts | ||||
Unrealized appreciation on forward foreign currency exchange contracts | $ | 43,378 | ||
|
| |||
Liabilities — Derivative Financial Instruments | ||||
Forward foreign currency exchange contracts | ||||
Unrealized depreciation on forward foreign currency exchange contracts | $ | 15,364 | ||
|
|
For the six months ended February 28, 2019, the effect of derivative financial instruments in the Statement of Operations was as follows:
Foreign Currency Exchange Contracts | ||||
Net Realized Gain (Loss) from: | ||||
Forward foreign currency exchange contracts | $ | 126,631 | ||
|
| |||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Forward foreign currency exchange contracts | $ | 143,029 | ||
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Forward foreign currency exchange contracts: | ||||
Average amounts purchased — in USD | $ | 11,644,903 | ||
Average amounts sold — in USD | $ | 17,412,114 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Derivative Financial Instruments — Offsetting as of Period End
The Fund’s derivative assets and liabilities (by type) were as follows:
Assets | Liabilities | |||||||
Derivative Financial Instruments: | ||||||||
Forward foreign currency exchange contracts | $ | 43,378 | $ | 15,364 | ||||
|
|
|
| |||||
Total derivative assets and liabilities in the Statement of Assets and Liabilities | $ | 43,378 | $ | 15,364 | ||||
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”) | — | — | ||||||
|
|
|
| |||||
Total derivative assets and liabilities subject to an MNA | $ | 43,378 | $ | 15,364 | ||||
|
|
|
|
The following tables presents the Fund’s derivative assets and liabilities by counterparty net of amounts available for offset under an MNA and net of the related collateral received and pledged by the Fund:
Counterparty | | Derivative Assets Subject to an MNA by Counterparty |
| | Derivatives Available for Offset |
(a) | | Net Amount of Derivative Assets |
(b) | |||
Morgan Stanley & Co. International PLC | $ | 43,378 | $ | (15,364 | ) | $ | 28,014 | |||||
|
|
|
|
|
| |||||||
Counterparty | | Derivative Liabilities Subject to an MNA by Counterparty | | | Derivatives Available for Offset |
(a) | | Net Amount of Derivative | | |||
Morgan Stanley & Co. International PLC | $ | 15,364 | $ | (15,364 | ) | $ | — | |||||
|
|
|
|
|
|
28 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® Currency Hedged MSCI Switzerland ETF |
(a) | The amount of derivatives available for offset is limited to the amount of derivatives assets and/or liabilities that are subject to an MNA. |
(b) | Net amount represents the net amount receivable from the counterparty in the event of default. |
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, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2019. 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 | $ | 6,707,029 | $ | — | $ | — | $ | 6,707,029 | ||||||||
Money Market Funds | 1,451,958 | — | — | 1,451,958 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 8,158,987 | $ | — | $ | — | $ | 8,158,987 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Assets | ||||||||||||||||
Forward Foreign Currency Exchange Contracts | $ | — | $ | 43,378 | $ | — | $ | 43,378 | ||||||||
Liabilities | ||||||||||||||||
Forward Foreign Currency Exchange Contracts | — | (15,364 | ) | — | (15,364 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | — | $ | 28,014 | $ | — | $ | 28,014 | |||||||||
|
|
|
|
|
|
|
|
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
S C H E D U L E O F I N V E S T M E N T S | 29 |
Statements of Assets and Liabilities (unaudited)
February 28, 2019
iShares Adaptive Currency Hedged MSCI Eurozone ETF | iShares Currency Hedged MSCI Eurozone ETF | iShares MSCI Germany ETF | iShares ETF | |||||||||||||
ASSETS | ||||||||||||||||
Investments in securities, at value (including securities on loan)(a): | ||||||||||||||||
Affiliated(b) | $ | 2,662,832 | $ | 1,011,906,537 | $ | 213,143,314 | $ | 1,799,485 | ||||||||
Receivables: | ||||||||||||||||
Securities lending income — Affiliated | 85 | — | — | 357 | ||||||||||||
Capital shares sold | — | — | 192,739 | — | ||||||||||||
Dividends | 2 | 2,602 | 169 | 2 | ||||||||||||
Unrealized appreciation on: | ||||||||||||||||
Forward foreign currency exchange contracts | 18,132 | 10,553,972 | 2,126,825 | 16,643 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total assets | 2,681,051 | 1,022,463,111 | 215,463,047 | 1,816,487 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
LIABILITIES | ||||||||||||||||
Cash received: | ||||||||||||||||
Collateral — forward foreign currency exchange contracts | — | 1,030,000 | — | — | ||||||||||||
Collateral on securities loaned, at value | — | — | — | 167,750 | ||||||||||||
Payables: | ||||||||||||||||
Investments purchased | 9,361 | 5,526,168 | 1,132,890 | 12,083 | ||||||||||||
Capital shares redeemed | — | 4 | — | — | ||||||||||||
Investment advisory fees | 60 | 23,216 | 6,086 | — | ||||||||||||
Unrealized depreciation on: | ||||||||||||||||
Forward foreign currency exchange contracts | 7,553 | 2,664,834 | 540,850 | 3,341 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total liabilities | 16,974 | 9,244,222 | 1,679,826 | 183,174 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS | $ | 2,664,077 | $ | 1,013,218,889 | $ | 213,783,221 | $ | 1,633,313 | ||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS CONSIST OF: | ||||||||||||||||
Paid-in capital | $ | 2,385,926 | $ | 1,221,707,312 | $ | 306,957,628 | $ | 2,388,312 | ||||||||
Accumulated earnings (loss) | 278,151 | (208,488,423 | ) | (93,174,407 | ) | (754,999 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS | $ | 2,664,077 | $ | 1,013,218,889 | $ | 213,783,221 | $ | 1,633,313 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Shares outstanding | 100,000 | 35,100,000 | 8,250,000 | 100,000 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net asset value | $ | 26.64 | $ | 28.87 | $ | 25.91 | $ | 16.33 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Shares authorized | Unlimited | Unlimited | Unlimited | Unlimited | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Par value | None | None | None | None | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
(a) Securities loaned, at value | $ | — | $ | — | $ | — | $ | 165,615 | ||||||||
(b) Investments, at cost — Affiliated | $ | 2,375,644 | $ | 1,129,016,934 | $ | 243,251,608 | $ | 1,966,419 |
See notes to financial statements.
30 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Statements of Assets and Liabilities (unaudited) (continued)
February 28, 2019
iShares MSCI Spain | iShares Currency Hedged MSCI Switzerland ETF | |||||||
ASSETS | ||||||||
Investments in securities, at value (including securities on loan)(a): | ||||||||
Affiliated(b) | $ | 18,719,202 | $ | 8,158,987 | ||||
Receivables: | ||||||||
Securities lending income — Affiliated | 3,333 | 621 | ||||||
Dividends | 10 | 5 | ||||||
Unrealized appreciation on: | ||||||||
Forward foreign currency exchange contracts | 134,089 | 43,378 | ||||||
|
|
|
| |||||
Total assets | 18,856,634 | 8,202,991 | ||||||
|
|
|
| |||||
LIABILITIES | ||||||||
Collateral on securities loaned, at value | 5,858,850 | 1,448,400 | ||||||
Payables: | ||||||||
Investments purchased | 97,863 | 23,890 | ||||||
Investment advisory fees | 289 | 151 | ||||||
Unrealized depreciation on: | ||||||||
Forward foreign currency exchange contracts | 26,951 | 15,364 | ||||||
|
|
|
| |||||
Total liabilities | 5,983,953 | 1,487,805 | ||||||
|
|
|
| |||||
NET ASSETS | $ | 12,872,681 | $ | 6,715,186 | ||||
|
|
|
| |||||
NET ASSETS CONSIST OF: | ||||||||
Paid-in capital | $ | 19,693,331 | $ | 6,429,855 | ||||
Accumulated earnings (loss) | (6,820,650 | ) | 285,331 | |||||
|
|
|
| |||||
NET ASSETS | $ | 12,872,681 | $ | 6,715,186 | ||||
|
|
|
| |||||
Shares outstanding | 600,000 | 250,000 | ||||||
|
|
|
| |||||
Net asset value | $ | 21.45 | $ | 26.86 | ||||
|
|
|
| |||||
Shares authorized | Unlimited | Unlimited | ||||||
|
|
|
| |||||
Par value | None | None | ||||||
|
|
|
| |||||
(a) Securities loaned, at value | $ | 5,786,920 | $ | 1,410,456 | ||||
(b) Investments, at cost — Affiliated | $ | 20,541,509 | $ | 7,875,338 |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S | 31 |
Statements of Operations (unaudited)
Six Months Ended February 28, 2019
iShares Adaptive Currency Hedged MSCI Eurozone ETF | iShares MSCI ETF | iShares MSCI ETF | iShares Currency Hedged MSCI Italy ETF | |||||||||||||
INVESTMENT INCOME | ||||||||||||||||
Dividends — Affiliated | $ | 13,287 | $ | 7,049,827 | $ | 446 | $ | 28,618 | ||||||||
Securities lending income — Affiliated — net | 325 | — | — | 4,652 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total investment income | 13,612 | 7,049,827 | 446 | 33,270 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
EXPENSES | ||||||||||||||||
Investment advisory fees | 8,019 | 4,173,347 | 692,151 | 6,253 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total expenses | 8,019 | 4,173,347 | 692,151 | 6,253 | ||||||||||||
Less: | ||||||||||||||||
Investment advisory fees waived | (7,631 | ) | (3,971,411 | ) | (636,797 | ) | (6,253 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total expenses after fees waived | 388 | 201,936 | 55,354 | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net investment income (loss) | 13,224 | 6,847,891 | (54,908 | ) | 33,270 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||
Investments — Affiliated | (10,390 | ) | (4,737,478 | ) | (722,285 | ) | (12,227 | ) | ||||||||
In-kind redemptions — Affiliated | — | (55,617,015 | ) | (13,432,761 | ) | (136,292 | ) | |||||||||
Forward foreign currency exchange contracts | 100,644 | 52,660,842 | 11,688,880 | 83,849 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net realized gain (loss) | 90,254 | (7,693,651 | ) | (2,466,166 | ) | (64,670 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments — Affiliated | (170,363 | ) | (81,912,864 | ) | (20,535,705 | ) | 75,660 | |||||||||
Forward foreign currency exchange contracts | (14,018 | ) | (1,779,268 | ) | (1,616,972 | ) | (8,879 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net change in unrealized appreciation (depreciation) | (184,381 | ) | (83,692,132 | ) | (22,152,677 | ) | 66,781 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net realized and unrealized gain (loss) | (94,127 | ) | (91,385,783 | ) | (24,618,843 | ) | 2,111 | |||||||||
|
|
|
|
|
|
|
| |||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | (80,903 | ) | $ | (84,537,892 | ) | $ | (24,673,751 | ) | $ | 35,381 | |||||
|
|
|
|
|
|
|
|
See notes to financial statements.
32 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Statements of Operations (unaudited) (continued)
Six Months Ended February 28, 2019
iShares Currency Hedged MSCI Spain ETF | iShares Currency Hedged MSCI Switzerland ETF | |||||||
INVESTMENT INCOME | ||||||||
Dividends — Affiliated | $ | 285,931 | $ | 76 | ||||
Securities lending income — Affiliated — net | 26,680 | 1,361 | ||||||
|
|
|
| |||||
Total investment income | 312,611 | 1,437 | ||||||
|
|
|
| |||||
EXPENSES | ||||||||
Investment advisory fees | 44,918 | 17,033 | ||||||
|
|
|
| |||||
Total expenses | 44,918 | 17,033 | ||||||
Less: | ||||||||
Investment advisory fees waived | (42,744 | ) | (16,209 | ) | ||||
|
|
|
| |||||
Total expenses after fees waived | 2,174 | 824 | ||||||
|
|
|
| |||||
Net investment income | 310,437 | 613 | ||||||
|
|
|
| |||||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||
Net realized gain (loss) from: | ||||||||
Investments — Affiliated | (114,589 | ) | (18,907 | ) | ||||
In-kind redemptions — Affiliated | (434,263 | ) | — | |||||
Forward foreign currency exchange contracts | 575,061 | 126,631 | ||||||
|
|
|
| |||||
Net realized gain | 26,209 | 107,724 | ||||||
|
|
|
| |||||
Net change in unrealized appreciation (depreciation) on: | ||||||||
Investments — Affiliated | 30,869 | 84,565 | ||||||
Forward foreign currency exchange contracts | (38,169 | ) | 143,029 | |||||
|
|
|
| |||||
Net change in unrealized appreciation (depreciation) | (7,300 | ) | 227,594 | |||||
|
|
|
| |||||
Net realized and unrealized gain | 18,909 | 335,318 | ||||||
|
|
|
| |||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 329,346 | $ | 335,931 | ||||
|
|
|
|
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S | 33 |
Statements of Changes in Net Assets
iShares Adaptive Currency Hedged MSCI Eurozone ETF | iShares Currency Hedged MSCI Eurozone ETF | |||||||||||||||||||
Six Months Ended 02/28/19 (unaudited) | Year Ended 08/31/18 | Six Months Ended 02/28/19 (unaudited) | Year Ended 08/31/18 | |||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS |
| |||||||||||||||||||
OPERATIONS | ||||||||||||||||||||
Net investment income | $ | 13,224 | $ | 81,406 | $ | 6,847,891 | $ | 47,460,966 | ||||||||||||
Net realized gain (loss) | 90,254 | 52,955 | (7,693,651 | ) | 179,563,604 | |||||||||||||||
Net change in unrealized appreciation (depreciation) | (184,381 | ) | (17,211 | ) | (83,692,132 | ) | (116,998,794 | ) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Net increase (decrease) in net assets resulting from operations | (80,903 | ) | 117,150 | (84,537,892 | ) | 110,025,776 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||||||||||||||
Decrease in net assets resulting from distributions to shareholders | (58,644 | ) | (81,282 | ) | (6,896,783 | ) | (47,537,786 | ) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||||||
Net decrease in net assets derived from capital share transactions | — | — | (555,794,510 | ) | (193,713,051 | ) | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
NET ASSETS(a) | ||||||||||||||||||||
Total increase (decrease) in net assets | (139,547 | ) | 35,868 | (647,229,185 | ) | (131,225,061 | ) | |||||||||||||
Beginning of period | 2,803,624 | 2,767,756 | 1,660,448,074 | 1,791,673,135 | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
End of period | $ | 2,664,077 | $ | 2,803,624 | $ | 1,013,218,889 | $ | 1,660,448,074 | ||||||||||||
|
|
|
|
|
|
|
|
(a) | Prior year distribution character information and undistributed net investment income has been modified or removed to conform with current year Regulation S-X presentation changes. Refer to Note 12 for this prior year information. |
See notes to financial statements.
34 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Statements of Changes in Net Assets (continued)
iShares Currency Hedged MSCI Germany ETF | iShares Currency Hedged MSCI Italy ETF | |||||||||||||||||||
Six Months 02/28/19 | Year Ended 08/31/18 | Six Months Ended 02/28/19 (unaudited) | Year Ended 08/31/18 | |||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS |
| |||||||||||||||||||
OPERATIONS | ||||||||||||||||||||
Net investment income (loss) | $ | (54,908 | ) | $ | 10,793,928 | $ | 33,270 | $ | 123,180 | |||||||||||
Net realized gain (loss) | (2,466,166 | ) | 58,942,887 | (64,670 | ) | 810,046 | ||||||||||||||
Net change in unrealized appreciation (depreciation) | (22,152,677 | ) | (23,207,180 | ) | 66,781 | (850,366 | ) | |||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Net increase (decrease) in net assets resulting from operations | (24,673,751 | ) | 46,529,635 | 35,381 | 82,860 | |||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||||||||||||||
Decrease in net assets resulting from distributions to shareholders | — | (10,823,452 | ) | (38,486 | ) | (120,078 | ) | |||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||||||
Net decrease in net assets derived from capital share transactions | (91,889,025 | ) | (496,411,576 | ) | (746,187 | ) | (3,465,283 | ) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
NET ASSETS(a) | ||||||||||||||||||||
Total decrease in net assets | (116,562,776 | ) | (460,705,393 | ) | (749,292 | ) | (3,502,501 | ) | ||||||||||||
Beginning of period | 330,345,997 | 791,051,390 | 2,382,605 | 5,885,106 | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
End of period | $ | 213,783,221 | $ | 330,345,997 | $ | 1,633,313 | $ | 2,382,605 | ||||||||||||
|
|
|
|
|
|
|
|
(a) | Prior year distribution character information and undistributed net investment income has been modified or removed to conform with current year Regulation S-X presentation changes. Refer to Note 12 for this prior year information. |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S | 35 |
Statements of Changes in Net Assets (continued)
iShares Currency Hedged MSCI Spain ETF | iShares Currency Hedged MSCI Switzerland ETF | |||||||||||||||||||
Six Months Ended 02/28/19 (unaudited) | Year Ended 08/31/18 | Six Months Ended 02/28/19 (unaudited) | Year Ended 08/31/18 | |||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS |
| |||||||||||||||||||
OPERATIONS | ||||||||||||||||||||
Net investment income | $ | 310,437 | $ | 891,817 | $ | 613 | $ | 125,437 | ||||||||||||
Net realized gain | 26,209 | 9,280,725 | 107,724 | 438,831 | ||||||||||||||||
Net change in unrealized appreciation (depreciation) | (7,300 | ) | (10,855,047 | ) | 227,594 | (105,353 | ) | |||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Net increase (decrease) in net assets resulting from operations | 329,346 | (682,505 | ) | 335,931 | 458,915 | |||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||||||||||||||
Decrease in net assets resulting from distributions to shareholders | (320,333 | ) | (885,044 | ) | (190,952 | ) | (290,057 | ) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions | (3,040,049 | ) | (36,120,268 | ) | 1,214,499 | (1,371,401 | ) | |||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
NET ASSETS(a) | ||||||||||||||||||||
Total increase (decrease) in net assets | (3,031,036 | ) | (37,687,817 | ) | 1,359,478 | (1,202,543 | ) | |||||||||||||
Beginning of period | 15,903,717 | 53,591,534 | 5,355,708 | 6,558,251 | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
End of period | $ | 12,872,681 | $ | 15,903,717 | $ | 6,715,186 | $ | 5,355,708 | ||||||||||||
|
|
|
|
|
|
|
|
(a) | Prior year distribution character information and undistributed net investment income has been modified or removed to conform with current year Regulation S-X presentation changes. Refer to Note 12 for this prior year information. |
See notes to financial statements.
36 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
(For a share outstanding throughout each period)
iShares Adaptive Currency Hedged MSCI Eurozone ETF | ||||||||||||||||
| Six Months Ended 02/28/19 (unaudited) | | | Year Ended 08/31/18 | | | Year Ended 08/31/17 | | | Period From 01/05/16 to 08/31/16 | (a)
| |||||
| ||||||||||||||||
Net asset value, beginning of period | $ | 28.04 | $ | 27.68 | $ | 23.06 | $ | 23.86 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net investment income(b) | 0.13 | 0.81 | 0.57 | 0.56 | ||||||||||||
Net realized and unrealized gain (loss)(c) | (0.94 | ) | 0.36 | 4.63 | (0.80 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) from investment operations | (0.81 | ) | 1.17 | 5.20 | (0.24 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Distributions | ||||||||||||||||
From net investment income | (0.13 | ) | (0.81 | ) | (0.58 | ) | (0.56 | ) | ||||||||
From net realized gain | (0.46 | ) | — | — | — | |||||||||||
Return of capital | — | — | (0.00 | )(d) | (0.00 | )(d) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions | (0.59 | ) | (0.81 | ) | (0.58 | ) | (0.56 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net asset value, end of period | $ | 26.64 | $ | 28.04 | $ | 27.68 | $ | 23.06 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total Return | ||||||||||||||||
Based on net asset value | (2.76 | )%(e) | 4.23 | % | 22.75 | % | (0.75 | )%(e) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Ratios to Average Net Assets | ||||||||||||||||
Total expenses(f) | 0.62 | %(g) | 0.62 | % | 0.62 | % | 0.62 | %(g) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total expenses after fees waived(f) | 0.03 | %(g) | 0.03 | % | 0.03 | % | 0.03 | %(g) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net investment income | 1.02 | %(g) | 2.82 | % | 2.28 | % | 3.79 | %(g) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Supplemental Data | ||||||||||||||||
Net assets, end of period (000) | $ | 2,664 | $ | 2,804 | $ | 2,768 | $ | 2,306 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Portfolio turnover rate(h)(i) | 3 | %(e) | 7 | % | 6 | % | 4 | %(e) | ||||||||
|
|
|
|
|
|
|
|
(a) | Commencement of operations. |
(b) | Based on average shares outstanding. |
(c) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) | 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. |
(h) | Portfolio turnover rate excludes in-kind transactions. |
(i) | Portfolio turnover rate excludes the portfolio activity of the underlying fund in which the Fund is invested. See the underlying fund’s financial highlights for its respective portfolio turnover rates. |
See notes to financial statements.
F I N A N C I A L H I G H L I G H T S | 37 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Currency Hedged MSCI Eurozone ETF | ||||||||||||||||||||||||
| Six Months Ended 02/28/19 (unaudited) |
| | Year Ended 08/31/18 |
| | Year Ended 08/31/17 |
| | Year Ended 08/31/16 |
| | Year Ended 08/31/15 |
| | Period From 07/09/14 to 08/31/14 | (a)
| |||||||
| ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 29.76 | $ | 28.83 | $ | 24.73 | $ | 25.90 | $ | 24.87 | $ | 25.14 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income (loss)(b) | 0.14 | 0.79 | 0.64 | 0.60 | 1.17 | (0.00 | )(c) | |||||||||||||||||
Net realized and unrealized gain (loss)(d) | (0.89 | ) | 1.03 | 4.07 | (0.93 | ) | 0.65 | (0.27 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net increase (decrease) from investment operations | (0.75 | ) | 1.82 | 4.71 | (0.33 | ) | 1.82 | (0.27 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Distributions | ||||||||||||||||||||||||
From net investment income | (0.14 | ) | (0.89 | ) | (0.61 | ) | (0.71 | ) | (0.63 | ) | — | |||||||||||||
From net realized gain | — | — | — | (0.13 | ) | (0.16 | ) | — | ||||||||||||||||
Return of capital | — | — | (0.00 | )(c) | (0.00 | )(c) | (0.00 | )(c) | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | (0.14 | ) | (0.89 | ) | (0.61 | ) | (0.84 | ) | (0.79 | ) | — | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 28.87 | $ | 29.76 | $ | 28.83 | $ | 24.73 | $ | 25.90 | $ | 24.87 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | (2.46 | )%(e) | 6.36 | % | 19.13 | % | (1.02 | )% | 7.27 | % | (1.11 | )%(e) | ||||||||||||
|
|
|
|
|
| �� |
|
|
|
|
|
| ||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses(f) | 0.62 | %(g) | 0.62 | % | 0.62 | % | 0.62 | % | 0.62 | % | 0.62 | %(g) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total expenses after fees waived(f) | 0.03 | %(g) | 0.03 | % | 0.03 | % | 0.03 | % | 0.03 | % | 0.04 | %(g) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income (loss) | 1.02 | %(g) | 2.61 | % | 2.32 | % | 2.42 | % | 4.15 | % | (0.04 | )%(g) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 1,013,219 | $ | 1,660,448 | $ | 1,791,673 | $ | 1,345,405 | $ | 1,562,767 | $ | 3,730 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Portfolio turnover rate(h)(i) | 1 | %(e) | 11 | % | 9 | % | 12 | % | 21 | % | 0 | %(e) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Commencement of operations. |
(b) | Based on average shares outstanding. |
(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) | 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. |
(h) | Portfolio turnover rate excludes in-kind transactions. |
(i) | Portfolio turnover rate excludes the portfolio activity of the underlying fund in which the Fund is invested. See the underlying fund’s financial highlights for its respective portfolio turnover rates. |
See notes to financial statements.
38 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Currency Hedged MSCI Germany ETF | ||||||||||||||||||||||||
| Six Months Ended 02/28/19 (unaudited) |
| | Year Ended 08/31/18 |
| | Year Ended 08/31/17 |
| | Year Ended 08/31/16 |
| | Year Ended 08/31/15 |
| | Period From 01/31/14 to 08/31/14 | (a)
| |||||||
| ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 27.64 | $ | 26.82 | $ | 24.03 | $ | 24.01 | $ | 23.63 | $ | 23.68 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income (loss)(b) | (0.01 | ) | 0.53 | 0.74 | 0.31 | 0.99 | 1.04 | |||||||||||||||||
Net realized and unrealized gain (loss)(c) | (1.72 | ) | 1.02 | 2.62 | 0.46 | 0.68 | (0.59 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net increase (decrease) from investment operations | (1.73 | ) | 1.55 | 3.36 | 0.77 | 1.67 | 0.45 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Distributions | ||||||||||||||||||||||||
From net investment income | — | (0.73 | ) | (0.57 | ) | (0.54 | ) | (0.46 | ) | (0.50 | ) | |||||||||||||
From net realized gain | — | — | — | (0.21 | ) | (0.83 | ) | (0.00 | )(d) | |||||||||||||||
Return of capital | — | — | — | — | (0.00 | )(d) | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | — | (0.73 | ) | (0.57 | ) | (0.75 | ) | (1.29 | ) | (0.50 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 25.91 | $ | 27.64 | $ | 26.82 | $ | 24.03 | $ | 24.01 | $ | 23.63 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | (6.26 | )%(e) | 5.83 | % | 13.88 | % | 3.50 | % | 7.00 | % | 1.79 | %(e) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses(f) | 0.53 | %(g) | 0.53 | % | 0.53 | % | 0.53 | % | 0.53 | % | 0.53 | %(g) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total expenses after fees waived(f) | 0.04 | %(g) | 0.06 | % | 0.05 | % | 0.05 | % | 0.05 | % | 0.06 | %(g) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income (loss) | (0.04 | )%(g) | 1.87 | % | 2.75 | % | 1.33 | % | 3.69 | % | 7.36 | %(g) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 213,783 | $ | 330,346 | $ | 791,051 | $ | 492,701 | $ | 1,746,987 | $ | 51,995 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Portfolio turnover rate(h)(i) | 1 | %(e) | 11 | % | 9 | % | 11 | % | 21 | % | 4 | %(e) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Commencement of operations. |
(b) | Based on average shares outstanding. |
(c) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) | 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. |
(h) | Portfolio turnover rate excludes in-kind transactions. |
(i) | Portfolio turnover rate excludes the portfolio activity of the underlying fund in which the Fund is invested. See the underlying fund’s financial highlights for its respective portfolio turnover rates. |
See notes to financial statements.
F I N A N C I A L H I G H L I G H T S | 39 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Currency Hedged MSCI Italy ETF | ||||||||||||||||||||
| Six Months Ended 02/28/19 (unaudited) |
| | Year Ended 08/31/18 |
| | Year Ended 08/31/17 |
| | Year Ended 08/31/16 |
| | Period From 06/29/15 to 08/31/15 | (a)
| ||||||
| ||||||||||||||||||||
Net asset value, beginning of period | $ | 15.88 | $ | 16.81 | $ | 17.55 | $ | 23.52 | $ | 23.65 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net investment income (loss)(b) | 0.25 | 0.51 | 0.51 | 0.41 | (0.00 | )(c) | ||||||||||||||
Net realized and unrealized gain (loss)(d) | 0.58 | (0.87 | ) | 3.71 | (4.93 | ) | (0.13 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net increase (decrease) from investment operations | 0.83 | (0.36 | ) | 4.22 | (4.52 | ) | (0.13 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Distributions | ||||||||||||||||||||
From net investment income | (0.38 | ) | (0.57 | ) | (0.48 | ) | (0.70 | ) | — | |||||||||||
From net realized gain | — | — | (4.48 | ) | (0.75 | ) | — | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total distributions | (0.38 | ) | (0.57 | ) | (4.96 | ) | (1.45 | ) | — | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net asset value, end of period | $ | 16.33 | $ | 15.88 | $ | 16.81 | $ | 17.55 | $ | 23.52 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Return | ||||||||||||||||||||
Based on net asset value | 5.53 | %(e) | (2.25 | )% | 31.21 | % | (19.68 | )% | (0.55 | )%(e) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||
Total expenses(f) | 0.62 | %(g) | 0.62 | % | 0.62 | % | 0.62 | % | 0.62 | %(g) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total expenses after fees waived(f) | 0.00 | %(g) | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | %(g)(h) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net investment income (loss) | 3.30 | %(g) | 2.92 | % | 3.15 | % | 1.90 | % | (0.00 | )%(g)(h) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Supplemental Data | ||||||||||||||||||||
Net assets, end of period (000) | $ | 1,633 | $ | 2,383 | $ | 5,885 | $ | 7,021 | $ | 85,845 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Portfolio turnover rate(i)(j) | 3 | %(e) | 11 | % | 12 | % | 12 | % | 0 | %(e)(k) | ||||||||||
|
|
|
|
|
|
|
|
|
|
(a) | Commencement of operations. |
(b) | Based on average shares outstanding. |
(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) | 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. |
(h) | Rounds to less than 0.01%. |
(i) | Portfolio turnover rate excludes in-kind transactions. |
(j) | Portfolio turnover rate excludes the portfolio activity of the underlying fund in which the Fund is invested. See the underlying fund’s financial highlights for its respective portfolio turnover rates. |
(k) | Rounds to less than 1%. |
See notes to financial statements.
40 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Currency Hedged MSCI Spain ETF | ||||||||||||||||||||
| Six Months Ended 02/28/19 (unaudited) | | | Year Ended 08/31/18 | | | Year Ended 08/31/17 | | | Year Ended 08/31/16 | | | Period From 06/29/15 to 08/31/15 | (a)
| ||||||
| ||||||||||||||||||||
Net asset value, beginning of period | $ | 21.20 | $ | 22.80 | $ | 18.80 | $ | 22.73 | $ | 23.77 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net investment income(b) | 0.44 | 0.67 | 0.94 | 0.80 | (0.00 | )(c) | ||||||||||||||
Net realized and unrealized gain (loss)(d) | 0.27 | (1.55 | ) | 3.81 | (3.61 | ) | (1.04 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net increase (decrease) from investment operations | 0.71 | (0.88 | ) | 4.75 | (2.81 | ) | (1.04 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Distributions | ||||||||||||||||||||
From net investment income | (0.46 | ) | (0.72 | ) | (0.75 | ) | (0.81 | ) | — | |||||||||||
From net realized gain | — | — | — | (0.31 | ) | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total distributions | (0.46 | ) | (0.72 | ) | (0.75 | ) | (1.12 | ) | — | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net asset value, end of period | $ | 21.45 | $ | 21.20 | $ | 22.80 | $ | 18.80 | $ | 22.73 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Return | ||||||||||||||||||||
Based on net asset value | 3.50 | %(e) | (3.88 | )% | 25.70 | % | (12.51 | )% | (4.33 | )%(e) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||
Total expenses(f) | 0.62 | %(g) | 0.62 | % | 0.62 | % | 0.62 | % | 0.62 | %(g) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total expenses after fees waived(f) | 0.03 | %(g) | 0.03 | % | 0.03 | % | 0.03 | % | 0.03 | %(g) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net investment income (loss) | 4.28 | %(g) | 2.98 | % | 4.29 | % | 4.02 | % | (0.03 | )%(g) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Supplemental Data | ||||||||||||||||||||
Net assets, end of period (000) | $ | 12,873 | $ | 15,904 | $ | 53,592 | $ | 15,978 | $ | 56,825 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Portfolio turnover rate(h)(i) | 3 | %(e) | 12 | % | 9 | % | 15 | % | 0 | %(e)(j) | ||||||||||
|
|
|
|
|
|
|
|
|
|
(a) | Commencement of operations. |
(b) | Based on average shares outstanding. |
(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) | 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. |
(h) | Portfolio turnover rate excludes in-kind transactions. |
(i) | Portfolio turnover rate excludes the portfolio activity of the underlying fund in which the Fund is invested. See the underlying fund’s financial highlights for its respective portfolio turnover rates. |
(j) | Rounds to less than 1%. |
See notes to financial statements.
F I N A N C I A L H I G H L I G H T S | 41 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Currency Hedged MSCI Switzerland ETF | ||||||||||||||||||||
| Six Months Ended 02/28/19 (unaudited) | | | Year Ended 08/31/18 | | | Year Ended 08/31/17 | | | Year Ended 08/31/16 | | | Period From 06/29/15 to 08/31/15 | (a)
| ||||||
| ||||||||||||||||||||
Net asset value, beginning of period | $ | 26.78 | $ | 26.23 | $ | 23.38 | $ | 24.67 | $ | 24.64 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net investment income (loss)(b) | 0.00 | (c) | 0.61 | 0.66 | 0.41 | (0.00 | )(c) | |||||||||||||
Net realized and unrealized gain (loss)(d) | 1.03 | 1.39 | 3.00 | (0.27 | ) | 0.03 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net increase from investment operations | 1.03 | 2.00 | 3.66 | 0.14 | 0.03 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Distributions | ||||||||||||||||||||
From net investment income | (0.00 | )(c) | (0.63 | ) | (0.58 | ) | (0.61 | ) | — | |||||||||||
From net realized gain | (0.95 | ) | (0.82 | ) | (0.23 | ) | (0.82 | ) | — | |||||||||||
Return of capital | — | — | (0.00 | )(c) | — | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total distributions | (0.95 | ) | (1.45 | ) | (0.81 | ) | (1.43 | ) | — | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net asset value, end of period | $ | 26.86 | $ | 26.78 | $ | 26.23 | $ | 23.38 | $ | 24.67 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Return | ||||||||||||||||||||
Based on net asset value | 4.06 | %(e) | 7.81 | % | 15.88 | % | 0.63 | % | 0.12 | %(e) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||
Total expenses(f) | 0.62 | %(g) | 0.62 | % | 0.62 | % | 0.62 | % | 0.62 | %(g) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total expenses after fees waived(f) | 0.03 | %(g) | 0.03 | % | 0.03 | % | 0.03 | % | 0.04 | %(g) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net investment income (loss) | 0.02 | %(g) | 2.28 | % | 2.65 | % | 1.72 | % | (0.04 | )%(g) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Supplemental Data | ||||||||||||||||||||
Net assets, end of period (000) | $ | 6,715 | $ | 5,356 | $ | 6,558 | $ | 4,677 | $ | 3,701 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Portfolio turnover rate(h)(i) | 5 | %(e) | 14 | % | 11 | % | 19 | % | 1 | %(e) | ||||||||||
|
|
|
|
|
|
|
|
|
|
(a) | Commencement of operations. |
(b) | Based on average shares outstanding. |
(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) | 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. |
(h) | Portfolio turnover rate excludes in-kind transactions. |
(i) | Portfolio turnover rate excludes the portfolio activity of the underlying fund in which the Fund is invested. See the underlying fund’s financial highlights for its respective portfolio turnover rates. |
See notes to financial statements.
42 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements (unaudited)
1. | ORGANIZATION |
iShares Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust is organized as a Delaware statutory trust and is authorized to have multiple series or portfolios.
These financial statements relate only to the following funds (each, a “Fund,” and collectively, the “Funds”):
iShares ETF | Diversification Classification | |||
Adaptive Currency Hedged MSCI Eurozone | Diversified | (a) | ||
Currency Hedged MSCI Eurozone | Diversified | |||
Currency Hedged MSCI Germany | Diversified | |||
Currency Hedged MSCI Italy | Diversified | |||
Currency Hedged MSCI Spain | Diversified | |||
Currency Hedged MSCI Switzerland | Diversified |
(a) | The Fund’s classification changed from non-diversified to diversified during the reporting period. |
Currently each Fund seeks to achieve its investment objective by investing a substantial portion of its assets in an iShares fund (an “underlying fund”). The financial statements and schedules of investments for the underlying funds should be read in conjunction with the Funds’ financial statements.
2. | 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 increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies.
Investment Transactions and Income Recognition:Investment 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 from the underlying funds, if any, are recognized on the ex-dividend date. 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 non-U.S. currencies are translated to U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of investments, 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 investments. Such fluctuations are reflected by the Funds as a component of net realized and unrealized gain (loss) from investments for financial reporting purposes. Each Fund reports realized currency gain (loss) 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, each Fund 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 each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its statement 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, 2019, if any, are disclosed in the statement of assets and liabilities.
In-kind Redemptions:For financial reporting purposes, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or net asset value per share.
Distributions:Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds.
Recent Accounting Standards:In August 2018, the Financial Accounting Standards Board issued Accounting StandardsUpdate 2018-13 “Changes to the Disclosure Requirements for Fair Value Measurement” which modifies disclosure requirements for fair value measurements. The guidance is effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years. Management is currently evaluating the impact of this guidance to the Funds.
N O T E S T O F I N A N C I A L S T A T E M E N T S | 43 |
Notes to Financial Statements (unaudited) (continued)
Indemnifications:In the normal course of business, each Fund enters into contracts that contain a variety of representations that provide general indemnification. The Funds’ maximum exposure under these arrangements is unknown because it involves future potential claims against the Funds, which cannot be predicted with any certainty.
3. | INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS |
Investment Valuation Policies:Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date 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. A fund determines the fair value of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Trustees of the Trust (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.
Fair Value Inputs and Methodologies:The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:
• | Exchange-traded funds and closed-end funds traded on a recognized securities exchange are valued at that day’s last traded price or 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 may be valued at the last traded price. |
• | Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published net asset value (“NAV”). |
• | Forward foreign currency exchange contracts are valued based on that day’s prevailing forward exchange rate for the underlying currencies. Interpolated values are derived when the settlement date of the contract is an interim date for which quotations are not available. |
If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of an investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board as reflecting fair value (“Fair Valued Investments”).The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and the cost approach. 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.
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, regular reviews 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 and large movements in market values, and reviews of any market related activity. The pricing of all Fair Valued Investments is subsequently reported to the Board on a quarterly basis.
Fair value pricing could result in a difference between the prices used to calculate a fund’s NAV and the prices used by the fund’s underlying index, which in turn could result in a difference between the fund’s performance and the performance of the fund’s underlying index.
Fair Value Hierarchy:Various inputs are used in determining the fair value of financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:
• | Level 1 — Unadjusted price quotations in active markets 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, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and |
• | Level 3 — Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, (including the Global Valuation Committee’s assumptions used in determining the fair value of financial instruments). |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of 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 into or out of an assigned level within the 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 a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.
44 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements (unaudited) (continued)
4. | SECURITIES AND OTHER INVESTMENTS |
Securities Lending:Each Fund may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by an approved bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund or excess collateral is returned by the Fund, on the next business day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.
As of February 28, 2019, 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 BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, or its affiliates 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, if any, are also disclosed in its schedule of investments. The market value of any securities on loan as of February 28, 2019 and the value of the related cash collateral are disclosed in the statements of assets and liabilities.
Securities lending transactions are entered into by a fund under Master Securities Lending Agreements (each, an “MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the 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 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, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the fund can reinvest cash collateral received in connection with loaned securities.
The following table is a summary of the securities lending agreements by counterparty which are subject to offset under an MSLA as of February 28, 2019:
iShares ETF and Counterparty | | Market Value of Securities on Loan | | | Cash Collateral Received | (a) | | Non-Cash Collateral Received | | Net Amount | ||||||
Currency Hedged MSCI Italy | ||||||||||||||||
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending) | $ | 165,615 | $ | 165,615 | $ | — | $ | — | ||||||||
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Currency Hedged MSCI Spain | ||||||||||||||||
Barclays Bank PLC | $ | 2,224,620 | $ | 2,224,620 | $ | — | $ | — | ||||||||
Goldman Sachs &Co. | 3,387,820 | 3,387,820 | — | — | ||||||||||||
Jefferies LLC | 174,480 | 174,480 | — | — | ||||||||||||
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$ | 5,786,920 | $ | 5,786,920 | $ | — | $ | — | |||||||||
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Currency Hedged MSCI Switzerland | ||||||||||||||||
Merrill Lynch, Pierce, Fenner & Smith | $ | 1,410,456 | $ | 1,410,456 | $ | — | $ | — | ||||||||
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(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. |
The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, each Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned 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 market value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by each Fund.
5. | DERIVATIVE FINANCIAL INSTRUMENTS |
Forward Foreign Currency Exchange Contracts:Each Fund uses forward foreign currency exchange contracts to hedge the currency exposure of non-U.S. dollar-denominated securities held in its portfolio or its underlying fund’s portfolio. A forward foreign currency exchange contract is an agreement between two parties to buy and sell a currency against another currency at an agreed upon price and quantity. The 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 in the statement of assets and liabilities. When the contract is closed, a realized gain or loss is recorded in the statement of operations equal to the difference between the value at the time it was opened and the value at the time it was closed. Non-deliverable forward foreign currency exchange contracts (“NDFs”) are settled with the counterparty in cash without the delivery of foreign currency. The use of forward foreign currency exchange contracts involves the risk that the value of a contract changes unfavorably due to movements in the value of the referenced foreign currencies. A fund’s 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 fund.
N O T E S T O F I N A N C I A L S T A T E M E N T S | 45 |
Notes to Financial Statements (unaudited) (continued)
Master Netting Arrangements:In order to define its contractual rights and to secure rights that will help mitigate its counterparty risk, a fund may enter into an International Swaps and Derivatives Association, Inc. master agreement (“ISDA Master Agreement”) or similar agreement with its derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between a fund and a counterparty that governs certain OTC derivatives and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default including the bankruptcy or insolvency of the counterparty. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy, insolvency, or other events.
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 a fund and the counterparty. Except for NDFs, the forward foreign currency exchange contracts held by the Funds generally do not require collateral. Cash collateral pledged to the counterparty, if any, is presented as cash pledged as collateral for OTC derivatives 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 affiliated investments at value and as a liability for cash received as collateral on OTC derivatives. To the extent amounts due to the Funds from the counterparty are not fully collateralized, contractually or otherwise, each Fund bears the risk of loss from counterparty non-performance. Each Fund attempts to mitigate counterparty risk by only entering into agreements with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties.
For financial reporting purposes, each Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements, if any, in the statement of assets and liabilities.
6. | INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES |
Investment Advisory Fees:Pursuant to an Investment Advisory Agreement with the Trust, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent trustees).
For its investment advisory services to each Fund, 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 | |||
Adaptive Currency Hedged MSCI Eurozone | 0.62 | % | ||
Currency Hedged MSCI Eurozone | 0.62 | |||
Currency Hedged MSCI Germany | 0.53 | |||
Currency Hedged MSCI Italy | 0.62 | |||
Currency Hedged MSCI Spain | 0.62 | |||
Currency Hedged MSCI Switzerland | 0.62 |
Expense Waivers:A 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.
For each of the iShares Adaptive Currency Hedged MSCI Eurozone ETF and the iShares Currency Hedged MSCI Eurozone ETF, 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 the iShares Currency Hedged MSCI Germany ETF, 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 the iShares Currency Hedged MSCI Italy ETF, 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 the iShares Currency Hedged MSCI Spain ETF, 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 the iShares Currency Hedged MSCI Switzerland ETF, 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 Switzerland ETF (“EWL”), after taking into account any fee waivers by EWL, plus 0.03%.
Distributor:BlackRock Investments, LLC, an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.
46 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements (unaudited) (continued)
Securities Lending:The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”),an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan in a money market fund managed by BFA, or its affiliates, however, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04% (the “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. Each Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.
Pursuant to the current securities lending agreement, each Fund retains 82% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees. Prior to January 1, 2019, the Fund retained 80% of securities lending income (which excludes collateral investment fees) and the amount retained was not 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 a specified threshold, each Fund, pursuant to the 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. Prior to January 1, 2019, the Fund was subject to the same terms under the previous securities lending fee arrangement.
The share of securities lending income earned by each Fund is shown as securities lending income — affiliated — net in its statement of operations. For the six months ended February 28, 2019, the Funds paid BTC the following amounts for securities lending agent services:
iShares ETF | Fees Paid to BTC | |||
Adaptive Currency Hedged MSCI Eurozone | $ | 101 | ||
Currency Hedged MSCI Italy | 897 | |||
Currency Hedged MSCI Spain | 5,726 | |||
Currency Hedged MSCI Switzerland | 397 |
Officers and Trustees:Certain officers and/or trustees of the Trust are officers and/or trustees of BlackRock or its affiliates.
Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is shown as dividends — affiliated in the statement of operations.
7. | PURCHASES AND SALES |
For the six months ended February 28, 2019, purchases and sales of investments, excluding in-kind transactions and short-term investments, were as follows:
iShares ETF | Purchases | Sales | ||||||
Adaptive Currency Hedged MSCI Eurozone | $ | 129,363 | $ | 69,380 | ||||
Currency Hedged MSCI Eurozone | 74,736,627 | 15,278,910 | ||||||
Currency Hedged MSCI Germany | 14,295,726 | 2,571,367 | ||||||
Currency Hedged MSCI Italy | 140,480 | 50,248 | ||||||
Currency Hedged MSCI Spain | 1,031,392 | 438,748 | ||||||
Currency Hedged MSCI Switzerland | 348,294 | 277,553 |
For the six months ended February 28, 2019, in-kind transactions were as follows:
iShares ETF | In-kind Purchases | In-kind Sales | ||||||
Currency Hedged MSCI Eurozone | $ | 178,658,709 | $ | 733,151,629 | ||||
Currency Hedged MSCI Germany | 56,007,255 | 147,406,694 | ||||||
Currency Hedged MSCI Italy | — | 749,553 | ||||||
Currency Hedged MSCI Spain | — | 2,998,030 | ||||||
Currency Hedged MSCI Switzerland | 1,213,929 | — |
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.
N O T E S T O F I N A N C I A L S T A T E M E N T S | 47 |
Notes to Financial Statements (unaudited) (continued)
Management has analyzed tax laws and regulations and their application to the Funds as of February 28, 2019, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.
As of August 31, 2018, the Funds had capital loss carryforwards, with no expiration dates, available to offset future realized capital gains as follows:
iShares ETF | Non-Expiring | |||
Adaptive Currency Hedged MSCI Eurozone | $ | 34,548 | ||
Currency Hedged MSCI Eurozone | 71,669,199 | |||
Currency Hedged MSCI Germany | 56,902,919 | |||
Currency Hedged MSCI Italy | 491,913 | |||
Currency Hedged MSCI Spain | 4,926,787 |
As of February 28, 2019, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:
iShares ETF | Tax Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||
Adaptive Currency Hedged MSCI Eurozone | $ | 2,381,073 | $ | 305,320 | $ | (12,982 | ) | $ | 292,338 | |||||||
Currency Hedged MSCI Eurozone | 1,139,203,950 | 10,553,972 | (129,962,247 | ) | (119,408,275 | ) | ||||||||||
Currency Hedged MSCI Germany | 245,276,756 | 2,126,825 | (32,674,292 | ) | (30,547,467 | ) | ||||||||||
Currency Hedged MSCI Italy | 1,986,914 | 18,572 | (192,699 | ) | (174,127 | ) | ||||||||||
Currency Hedged MSCI Spain | 20,598,997 | 134,742 | (1,907,399 | ) | (1,772,657 | ) | ||||||||||
Currency Hedged MSCI Switzerland | 7,895,117 | 327,027 | (35,143 | ) | 291,884 |
9. | PRINCIPAL RISKS |
In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. 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.
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.
Concentration Risk:A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its schedule of investments.
10. | CAPITAL SHARE TRANSACTIONS |
Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable.
48 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements (unaudited) (continued)
Transactions in capital shares were as follows:
Six Months Ended 02/28/19 | Year Ended 08/31/18 | |||||||||||||||
iShares ETF | Shares | Amount | Shares | Amount | ||||||||||||
Currency Hedged MSCI Eurozone | ||||||||||||||||
Shares sold | 6,450,000 | $ | 179,877,023 | 36,600,000 | $ | 1,105,391,906 | ||||||||||
Shares redeemed | (27,150,000 | ) | (735,671,533 | ) | (42,950,000 | ) | (1,299,104,957 | ) | ||||||||
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Net decrease | (20,700,000 | ) | $ | (555,794,510 | ) | (6,350,000 | ) | $ | (193,713,051 | ) | ||||||
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Currency Hedged MSCI Germany | ||||||||||||||||
Shares sold | 2,200,000 | $ | 56,533,984 | 6,300,000 | $ | 177,359,936 | ||||||||||
Shares redeemed | (5,900,000 | ) | (148,423,009 | ) | (23,850,000 | ) | (673,771,512 | ) | ||||||||
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Net decrease | (3,700,000 | ) | $ | (91,889,025 | ) | (17,550,000 | ) | $ | (496,411,576 | ) | ||||||
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Currency Hedged MSCI Italy | ||||||||||||||||
Shares redeemed | (50,000 | ) | (746,187 | ) | (200,000 | ) | (3,465,283 | ) | ||||||||
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Currency Hedged MSCI Spain | ||||||||||||||||
Shares sold | — | $ | — | 1,050,000 | $ | 23,945,428 | ||||||||||
Shares redeemed | (150,000 | ) | (3,040,049 | ) | (2,650,000 | ) | (60,065,696 | ) | ||||||||
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Net decrease | (150,000 | ) | $ | (3,040,049 | ) | (1,600,000 | ) | $ | (36,120,268 | ) | ||||||
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Currency Hedged MSCI Switzerland | ||||||||||||||||
Shares sold | 50,000 | $ | 1,214,499 | — | $ | — | ||||||||||
Shares redeemed | — | — | (50,000 | ) | (1,371,401 | ) | ||||||||||
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|
|
| |||||||||
Net increase (decrease) | 50,000 | $ | 1,214,499 | (50,000 | ) | $ | (1,371,401 | ) | ||||||||
|
|
|
|
|
|
|
|
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 shares sold in the table above.
11. | LEGAL PROCEEDINGS |
On June 16, 2016, investors 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 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.
12. | REGULATION S-X AMENDMENTS |
On August 17, 2018, the SEC adopted amendments to certain disclosure requirements in Securities Act Release No. 33-10532,Disclosure Update and Simplification. The Funds have adopted the amendments pertinent to Regulation S-X in this shareholder report. The amendments impacted certain disclosure presentation on the statement of assets and liabilities, statement of changes in net assets and notes to the financial statements.
Prior year distribution information and undistributed (distributions in excess of) net investment income in the statement of changes in net assets has been modified to conform to the current year presentation in accordance with the Regulation S-X changes.
N O T E S T O F I N A N C I A L S T A T E M E N T S | 49 |
Notes to Financial Statements (unaudited) (continued)
Distributions for the year ended August 31, 2018 were classified as follows:
iShares ETF | Net Investment Income | Net Realized Gains | ||||||
Adaptive Currency Hedged MSCI Eurozone | $ | 81,282 | $ | — | ||||
Currency Hedged MSCI Eurozone | 47,537,786 | — | ||||||
Currency Hedged MSCI Germany | 10,823,452 | — | ||||||
Currency Hedged MSCI Italy | 120,078 | — | ||||||
Currency Hedged MSCI Spain | 885,044 | — | ||||||
Currency Hedged MSCI Switzerland | 125,036 | 165,021 |
Undistributed net investment income as of August 31, 2018 are as follows:
iShares ETF | Undistributed net investment income | |||
Adaptive Currency Hedged MSCI Eurozone | $ | 124 | ||
Currency Hedged MSCI Eurozone | — | |||
Currency Hedged MSCI Germany | — | |||
Currency Hedged MSCI Italy | 3,108 | |||
Currency Hedged MSCI Spain | 7,788 | |||
Currency Hedged MSCI Switzerland | 401 |
13. | SUBSEQUENT EVENTS |
Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.
50 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Supplemental Information (unaudited)
Section 19(a) Notices
The amounts and sources of distributions reported in this notice are for financial reporting purposes and are not being provided for tax reporting purposes. The actual amounts and character of the distributions for tax reporting purposes will be reported to shareholders on Form 1099-DIV which is sent to shareholders shortly after calendar year-end.
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(a) | $ | 0.119446 | $ | 0.460480 | $ | 0.006514 | $ | 0.586440 | 20 | % | 79 | % | 1 | % | 100 | % | ||||||||||||||||
Currency Hedged MSCI Eurozone(a) | 0.133411 | — | 0.007053 | 0.140464 | 95 | — | 5 | 100 | ||||||||||||||||||||||||
Currency Hedged MSCI Spain(a) | 0.357457 | — | 0.100162 | 0.457619 | 78 | — | 22 | 100 | ||||||||||||||||||||||||
Currency Hedged MSCI Switzerland | 0.002005 | 0.952755 | — | 0.954760 | 0 | (b) | 100 | — | 100 |
(a) | The Fund estimates that it has distributed more than the amount of earned income and net realized gains; therefore, a portion of the distribution may be a return of capital. A return of capital may occur, for example, when some or all of the shareholder’s investment in the Fund is returned to the shareholder. A return of capital does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. When distributions exceed total return performance, the difference will incrementally reduce the Fund’s net asset value per share. |
(b) | Rounds to less than 1%. |
S U P P L E M E N T A L I N F O R M A T I O N | 51 |
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 at www.sec.gov. The iShares Funds also disclose their complete schedule of portfolio holdings on a daily basis on the iShares website at www.iShares.com.
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.
Complete Schedules of Portfolio Holdings
The complete schedules of investments in securities of unaffiliated issuers for certain iShares Funds in this report are also available without charge, upon request, by calling toll-free 1-800-474-2737.
Certain Financial Information
Certain financial information required by regulations or listing exchange rules in jurisdictions outside the U.S. in which iShares Funds are cross-listed may be publicly filed in those jurisdictions. This information is available upon request by calling 1-800-474-2737.
52 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Glossary of Terms Used in this Report
Counterparty Abbreviations | ||
BBP | Barclays Bank PLC Wholesale | |
BNP | BNP Paribas SA | |
BOA | Bank of America N.A. | |
CITI | Citibank N.A. | |
DB | Deutsche Bank AG London | |
HSBC | HSBC Bank PLC | |
JPM | JPMorgan Chase Bank N.A. | |
MS | Morgan Stanley & Co. International PLC | |
NAB | National Australia Bank Limited | |
RBS | Royal Bank of Scotland PLC | |
SSB | State Street Bank and Trust Co. | |
TDB | Toronto Dominion Bank | |
UBS | UBS AG |
Currency Abbreviations | ||
CHF | Swiss Franc | |
EUR | Euro | |
USD | United States Dollar |
G L O S S A R Y O F T E R M S U S E D I N T H I S R E P O R T | 53 |
Additional Financial Information
February 28, 2019
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
Schedule of Investments (unaudited) February 28, 2019 | iShares® MSCI Eurozone ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Austria — 0.8% | ||||||||
ANDRITZ AG | 107,163 | $ | 5,356,966 | |||||
Erste Group Bank AG | 443,221 | 16,781,142 | ||||||
OMV AG | 215,871 | 11,373,741 | ||||||
Raiffeisen Bank International AG | 217,413 | 5,550,482 | ||||||
Verbund AG | 98,921 | 4,766,984 | ||||||
voestalpine AG | 166,712 | 5,167,310 | ||||||
|
| |||||||
48,996,625 | ||||||||
Belgium — 3.1% | ||||||||
Ageas | 268,601 | 13,252,745 | ||||||
Anheuser-Busch InBev SA/NV | 1,120,797 | 87,487,086 | ||||||
Colruyt SA | 87,894 | 6,275,326 | ||||||
Groupe Bruxelles Lambert SA | 118,526 | 11,415,392 | ||||||
KBC Group NV | 367,412 | 27,244,401 | ||||||
Proximus SADP | 222,757 | 5,892,371 | ||||||
Solvay SA | 109,585 | 12,281,291 | ||||||
Telenet Group Holding NV | 77,107 | 3,483,975 | ||||||
UCB SA | 187,362 | 15,719,570 | ||||||
Umicore SA | 306,914 | 13,280,360 | ||||||
|
| |||||||
196,332,517 | ||||||||
Finland — 3.3% | ||||||||
Elisa OYJ | 207,875 | 8,732,135 | ||||||
Fortum OYJ | 653,833 | 14,533,031 | ||||||
Kone OYJ, Class B | 500,725 | 24,500,456 | ||||||
Metso OYJ | 152,929 | 5,191,124 | ||||||
Neste OYJ | 188,503 | 18,137,796 | ||||||
Nokia OYJ | 8,291,576 | 50,191,664 | ||||||
Nokian Renkaat OYJ | 170,650 | 6,043,329 | ||||||
Orion OYJ, Class B | 151,377 | 5,414,238 | ||||||
Sampo OYJ, Class A | 652,320 | 31,435,175 | ||||||
Stora Enso OYJ, Class R | 810,656 | 10,878,668 | ||||||
UPM-Kymmene OYJ | 787,019 | 23,766,666 | ||||||
Wartsila OYJ Abp | 653,693 | 10,629,469 | ||||||
|
| |||||||
209,453,751 | ||||||||
France — 34.8% | ||||||||
Accor SA | 276,027 | 11,667,265 | ||||||
Aeroports de Paris | 43,421 | 8,435,064 | ||||||
Air Liquide SA | 629,762 | 78,631,149 | ||||||
Airbus SE | 855,760 | 110,698,019 | ||||||
Alstom SA | 229,072 | 9,969,474 | ||||||
Amundi SA(a) | 89,844 | 6,011,466 | ||||||
Arkema SA | 101,159 | 10,210,425 | ||||||
Atos SE | 140,942 | 13,548,628 | ||||||
AXA SA | 2,851,708 | 72,397,249 | ||||||
BioMerieux | 61,151 | 5,048,369 | ||||||
BNP Paribas SA | 1,654,526 | 84,884,056 | ||||||
Bollore SA | 1,278,062 | 5,687,429 | ||||||
Bouygues SA | 321,111 | 12,157,838 | ||||||
Bureau Veritas SA | 391,455 | 9,369,666 | ||||||
Capgemini SE | 235,271 | 28,183,419 | ||||||
Carrefour SA | 867,161 | 17,773,861 | ||||||
Casino Guichard Perrachon SA(b) | 79,221 | 4,193,816 | ||||||
Cie. de Saint-Gobain | 731,091 | 26,356,752 | ||||||
Cie. Generale des Etablissements Michelin SCA | 250,986 | 30,151,678 | ||||||
CNP Assurances | 250,307 | 5,791,702 | ||||||
Covivio | 66,827 | 6,772,539 | ||||||
Credit Agricole SA | 1,686,091 | 21,564,909 | ||||||
Danone SA | 906,498 | 68,467,801 | ||||||
Dassault Aviation SA | 3,755 | 6,328,215 |
Security | Shares | Value | ||||||
France (continued) | ||||||||
Dassault Systemes SE | 191,573 | $ | 28,064,262 | |||||
Edenred | 350,507 | 15,573,761 | ||||||
Eiffage SA | 116,069 | 11,337,357 | ||||||
Electricite de France SA | 880,484 | 12,803,299 | ||||||
Engie SA | 2,679,512 | 40,427,894 | ||||||
EssilorLuxottica SA | 423,241 | 51,303,020 | ||||||
Eurazeo SE | 67,987 | 5,117,253 | ||||||
Eurofins Scientific SE(b) | 16,774 | 7,071,029 | ||||||
Eutelsat Communications SA | 256,993 | 5,080,197 | ||||||
Faurecia SA | 112,032 | 5,350,324 | ||||||
Gecina SA | 66,836 | 9,924,247 | ||||||
Getlink SE | 688,077 | 10,170,007 | ||||||
Hermes International | 46,445 | 29,447,452 | ||||||
ICADE | 48,876 | 4,165,786 | ||||||
Iliad SA | 38,703 | 4,032,508 | ||||||
Imerys SA | 53,063 | 3,019,935 | ||||||
Ingenico Group SA | 87,901 | 5,907,484 | ||||||
Ipsen SA | 55,055 | 7,623,245 | ||||||
JCDecaux SA | 110,594 | 3,412,797 | ||||||
Kering SA | 111,395 | 60,898,548 | ||||||
Klepierre SA | 301,472 | 10,535,458 | ||||||
Legrand SA | 391,999 | 25,889,430 | ||||||
L’Oreal SA | 370,627 | 93,649,161 | ||||||
LVMH Moet Hennessy Louis Vuitton SE | 408,355 | 140,428,208 | ||||||
Natixis SA | 1,392,727 | 7,663,064 | ||||||
Orange SA | 2,933,264 | 44,891,070 | ||||||
Pernod Ricard SA | 312,237 | 53,829,429 | ||||||
Peugeot SA | 862,122 | 21,950,785 | ||||||
Publicis Groupe SA | 309,983 | 17,200,609 | ||||||
Remy Cointreau SA | 33,161 | 4,323,571 | ||||||
Renault SA | 282,046 | 19,343,824 | ||||||
Rexel SA | 446,021 | 5,566,413 | ||||||
Safran SA | 491,533 | 67,109,097 | ||||||
Sanofi | 1,656,108 | 138,607,116 | ||||||
Sartorius Stedim Biotech | 40,659 | 4,791,887 | ||||||
Schneider Electric SE | 808,114 | 62,960,075 | ||||||
SCOR SE | 240,328 | 10,834,264 | ||||||
SEB SA | 33,499 | 5,775,203 | ||||||
SES SA | 535,863 | 10,778,962 | ||||||
Societe BIC SA | 37,393 | 3,540,480 | ||||||
Societe Generale SA | 1,126,355 | 34,629,689 | ||||||
Sodexo SA | 131,408 | 14,451,687 | ||||||
STMicroelectronics NV | 1,005,978 | 16,460,946 | ||||||
Suez | 549,739 | 7,032,976 | ||||||
Teleperformance | 84,681 | 15,138,929 | ||||||
Thales SA | 155,863 | 19,212,349 | ||||||
TOTAL SA | 3,548,071 | 201,969,120 | ||||||
Ubisoft Entertainment SA(c) | 115,839 | 8,376,027 | ||||||
Unibail-Rodamco-Westfield | 203,600 | 32,921,200 | ||||||
Valeo SA | 353,158 | 11,159,419 | ||||||
Veolia Environnement SA | 789,694 | 17,355,043 | ||||||
Vinci SA | 746,655 | 71,350,166 | ||||||
Vivendi SA | 1,535,151 | 44,925,587 | ||||||
Wendel SA | 40,748 | 5,145,735 | ||||||
|
| |||||||
2,224,828,173 | ||||||||
Germany — 25.6% | ||||||||
1&1 Drillisch AG(b) | 77,938 | 3,086,657 | ||||||
adidas AG | 265,553 | 64,589,511 | ||||||
Allianz SE, Registered | 625,457 | 139,307,931 | ||||||
Aroundtown SA | 1,154,756 | 9,730,418 |
2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI Eurozone ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Germany (continued) | ||||||||
Axel Springer SE | 71,957 | $ | 4,109,164 | |||||
BASF SE | 1,350,872 | 103,046,611 | ||||||
Bayer AG, Registered | 1,371,238 | 109,737,264 | ||||||
Bayerische Motoren Werke AG | 486,731 | 41,185,638 | ||||||
Beiersdorf AG | 148,588 | 13,799,727 | ||||||
Brenntag AG | 227,461 | 11,292,835 | ||||||
Commerzbank AG(c) | 1,468,179 | 12,129,027 | ||||||
Continental AG | 161,925 | 26,551,309 | ||||||
Covestro AG(a) | 282,431 | 16,125,241 | ||||||
Daimler AG, Registered | 1,337,748 | 80,216,683 | ||||||
Delivery Hero SE(a)(c) | 138,493 | 5,374,486 | ||||||
Deutsche Bank AG, Registered(b) | 2,888,935 | 26,846,686 | ||||||
Deutsche Boerse AG | 280,080 | 35,432,818 | ||||||
Deutsche Lufthansa AG, Registered | 350,055 | 8,948,746 | ||||||
Deutsche Post AG, Registered | 1,455,866 | 45,290,971 | ||||||
Deutsche Telekom AG, Registered | 4,902,464 | 80,861,622 | ||||||
Deutsche Wohnen SE | 523,410 | 24,436,298 | ||||||
E.ON SE | 3,238,010 | 35,709,794 | ||||||
Evonik Industries AG | 240,707 | 6,783,807 | ||||||
Fraport AG Frankfurt Airport Services Worldwide | 61,359 | 4,934,186 | ||||||
Fresenius Medical Care AG & Co. KGaA | 318,178 | 24,955,876 | ||||||
Fresenius SE & Co. KGaA | 613,583 | 34,536,113 | ||||||
GEA Group AG | 238,318 | 5,717,826 | ||||||
Hannover Rueck SE | 88,135 | 13,147,078 | ||||||
HeidelbergCement AG | 217,211 | 15,987,947 | ||||||
Henkel AG & Co. KGaA | 150,886 | 14,191,834 | ||||||
HOCHTIEF AG | 30,925 | 4,908,875 | ||||||
HUGO BOSS AG | 92,597 | 6,855,725 | ||||||
Infineon Technologies AG | 1,677,673 | 36,879,638 | ||||||
Innogy SE(c) | 205,603 | 8,735,026 | ||||||
KION Group AG | 102,798 | 5,866,854 | ||||||
LANXESS AG | 128,048 | 6,947,767 | ||||||
Merck KGaA | 190,764 | 19,719,511 | ||||||
METRO AG(b) | 263,971 | 4,438,122 | ||||||
MTU Aero Engines AG | 76,142 | 16,343,504 | ||||||
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen, Registered | 219,786 | 51,831,008 | ||||||
OSRAM Licht AG | 142,988 | 6,203,462 | ||||||
ProSiebenSat.1 Media SE | 341,564 | 6,238,583 | ||||||
Puma SE | 12,185 | 6,875,095 | ||||||
QIAGEN NV(c) | 338,516 | 12,959,446 | ||||||
RTL Group SA | 56,069 | 3,165,475 | ||||||
RWE AG | 762,189 | 18,625,242 | ||||||
SAP SE | 1,444,917 | 154,989,878 | ||||||
Siemens AG, Registered | 1,124,768 | 123,120,800 | ||||||
Siemens Healthineers AG(a) | 219,579 | 8,906,237 | ||||||
Symrise AG | 180,725 | 15,944,738 | ||||||
Telefonica Deutschland Holding AG | 1,097,600 | 3,607,032 | ||||||
thyssenkrupp AG(b) | 637,980 | 9,553,057 | ||||||
Uniper SE | 295,142 | 8,606,967 | ||||||
United Internet AG, Registered(d) | 179,332 | 6,532,532 | ||||||
Volkswagen AG | 48,729 | 8,622,795 | ||||||
Vonovia SE | 723,782 | 35,142,650 | ||||||
Wirecard AG(b) | 172,038 | 23,605,922 | ||||||
Zalando SE(a)(c) | 165,422 | 6,103,062 | ||||||
|
| |||||||
1,639,393,107 | ||||||||
Ireland — 1.7% | ||||||||
AIB Group PLC | 1,182,501 | 5,569,184 | ||||||
Bank of Ireland Group PLC | 1,397,695 | 9,095,743 | ||||||
CRH PLC | 1,204,007 | 38,168,736 |
Security | Shares | Value | ||||||
Ireland (continued) | ||||||||
Irish Bank Resolution Corp. Ltd.(c)(e) | 446,666 | $ | 5 | |||||
Kerry Group PLC, Class A | 230,466 | 23,750,075 | ||||||
Kingspan Group PLC | 220,392 | 10,404,822 | ||||||
Paddy Power Betfair PLC | 120,518 | 9,757,331 | ||||||
Ryanair Holdings PLC(c) | 35,326 | 488,743 | ||||||
Ryanair Holdings PLC, ADR(c) | 28,272 | 2,107,395 | ||||||
Smurfit Kappa Group PLC | 329,950 | 9,370,313 | ||||||
|
| |||||||
108,712,347 | ||||||||
Italy — 7.0% | ||||||||
Assicurazioni Generali SpA | 1,723,101 | 30,795,098 | ||||||
Atlantia SpA | 726,204 | 17,679,740 | ||||||
CNH Industrial NV | 1,490,170 | 16,160,870 | ||||||
Davide Campari-Milano SpA | 848,347 | 8,100,021 | ||||||
Enel SpA | 11,954,219 | 72,417,308 | ||||||
Eni SpA | 3,739,406 | 64,577,794 | ||||||
Ferrari NV | 180,480 | 23,253,759 | ||||||
Fiat Chrysler Automobiles NV(c) | 1,596,973 | 23,607,430 | ||||||
Intesa Sanpaolo SpA | 21,897,815 | 54,084,133 | ||||||
Leonardo SpA | 605,803 | 6,116,017 | ||||||
Mediobanca Banca di Credito Finanziario SpA | 911,317 | 9,154,741 | ||||||
Moncler SpA | 262,025 | 10,060,969 | ||||||
Pirelli & C SpA(a)(c) | 591,561 | 3,974,304 | ||||||
Poste Italiane SpA(a) | 763,162 | 6,891,273 | ||||||
Prysmian SpA | 354,439 | 7,244,618 | ||||||
Recordati SpA | 155,529 | 5,856,729 | ||||||
Snam SpA | 3,311,592 | 16,384,611 | ||||||
Telecom Italia SpA/Milano(c) | 16,632,013 | 10,147,453 | ||||||
Tenaris SA | 694,241 | 9,272,948 | ||||||
Terna Rete Elettrica Nazionale SpA | 2,065,076 | 12,858,019 | ||||||
UniCredit SpA | 2,953,079 | 40,237,742 | ||||||
|
| |||||||
448,875,577 | ||||||||
Netherlands — 11.3% | ||||||||
ABN AMRO Group NV, CVA(a) | 622,896 | 15,122,106 | ||||||
Adyen NV(a)(c) | 10,824 | 8,134,695 | ||||||
Aegon NV | 2,610,766 | 14,055,780 | ||||||
AerCap Holdings NV(c) | 184,068 | 8,308,830 | ||||||
Akzo Nobel NV | 330,024 | 29,962,416 | ||||||
ArcelorMittal | 978,354 | 22,514,996 | ||||||
ASML Holding NV | 602,278 | 110,498,399 | ||||||
EXOR NV | 160,674 | 9,898,113 | ||||||
Heineken Holding NV | 169,270 | 16,393,204 | ||||||
Heineken NV | 381,392 | 38,478,208 | ||||||
ING Groep NV | 5,725,590 | 75,837,529 | ||||||
Koninklijke Ahold Delhaize NV | 1,744,223 | 45,035,899 | ||||||
Koninklijke DSM NV | 266,682 | 28,666,537 | ||||||
Koninklijke KPN NV | 4,946,801 | 15,276,493 | ||||||
Koninklijke Philips NV | 1,365,127 | 54,406,481 | ||||||
Koninklijke Vopak NV(b) | 102,807 | 5,032,684 | ||||||
NN Group NV | 450,791 | 19,660,001 | ||||||
NXP Semiconductors NV(b) | 506,232 | 46,229,106 | ||||||
Randstad NV | 175,759 | 9,396,426 | ||||||
Unilever NV, CVA | 2,268,884 | 122,887,958 | ||||||
Wolters Kluwer NV | 413,680 | 27,311,922 | ||||||
|
| |||||||
723,107,783 | ||||||||
Portugal — 0.5% | ||||||||
EDP — Energias de Portugal SA | 3,768,742 | 13,839,986 | ||||||
Galp Energia SGPS SA | 738,640 | 12,136,926 | ||||||
Jeronimo Martins SGPS SA | 370,428 | 5,588,937 | ||||||
|
| |||||||
31,565,849 |
S C H E D U L E O F I N V E S T M E N T S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI Eurozone ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Spain — 9.5% | ||||||||
ACS Actividades de Construccion y Servicios SA | 373,438 | $ | 16,575,624 | |||||
Aena SME SA(a) | 99,432 | 17,764,732 | ||||||
Amadeus IT Group SA | 646,881 | 48,763,169 | ||||||
Banco Bilbao Vizcaya Argentaria SA | 9,806,738 | 61,127,819 | ||||||
Banco de Sabadell SA | 8,264,615 | 9,425,038 | ||||||
Banco Santander SA | 23,879,715 | 116,816,165 | ||||||
Bankia SA | 1,786,526 | 5,462,144 | ||||||
Bankinter SA | 985,961 | 8,108,243 | ||||||
CaixaBank SA | 5,282,311 | 18,862,947 | ||||||
Enagas SA | 341,569 | 9,743,068 | ||||||
Endesa SA | 465,867 | 11,750,199 | ||||||
Ferrovial SA | 720,851 | 16,630,085 | ||||||
Grifols SA | 438,273 | 11,408,551 | ||||||
Iberdrola SA | 9,126,339 | 76,403,214 | ||||||
Industria de Diseno Textil SA | 1,606,074 | 48,537,344 | ||||||
International Consolidated Airlines Group SA | 12,147 | 96,214 | ||||||
Mapfre SA | 1,541,386 | 4,359,860 | ||||||
Naturgy Energy Group SA | 515,365 | 14,008,024 | ||||||
Red Electrica Corp. SA | 646,498 | 13,987,185 | ||||||
Repsol SA | 2,051,535 | 35,333,271 | ||||||
Siemens Gamesa Renewable Energy | 356,907 | 5,468,249 | ||||||
Telefonica SA | 6,871,171 | 59,377,901 | ||||||
|
| |||||||
610,009,046 | ||||||||
United Kingdom — 0.2% | ||||||||
Coca-Cola European Partners PLC | 320,141 | 15,091,447 | ||||||
|
| |||||||
Total Common Stocks — 97.8% | 6,256,366,222 | |||||||
|
| |||||||
Preferred Stocks | ||||||||
Germany — 1.7% | ||||||||
Bayerische Motoren Werke AG, Preference Shares, NVS | 82,164 | 6,072,057 | ||||||
Fuchs Petrolub SE, Preference Shares, NVS | 102,476 | 4,585,896 | ||||||
Henkel AG & Co. KGaA, Preference Shares, NVS | 263,311 | 26,337,277 | ||||||
Porsche Automobil Holding SE, Preference Shares, NVS | 224,538 | 14,988,052 |
Security | Shares | Value | ||||||
Germany (continued) | ||||||||
Sartorius AG, Preference Shares, NVS | 52,170 | $ | 8,281,198 | |||||
Volkswagen AG, Preference Shares, NVS | 272,725 | 46,862,313 | ||||||
|
| |||||||
107,126,793 | ||||||||
Italy — 0.1% | ||||||||
Telecom Italia SpA/Milano, Preference Shares, NVS | 8,892,677 | 4,851,412 | ||||||
|
| |||||||
Total Preferred Stocks — 1.8% | 111,978,205 | |||||||
|
| |||||||
Short-Term Investments | ||||||||
Money Market Funds — 0.7% | ||||||||
BlackRock Cash Funds: Institutional, | 46,087,418 | 46,105,854 | ||||||
BlackRock Cash Funds: Treasury, | 2,569,177 | 2,569,177 | ||||||
|
| |||||||
48,675,031 | ||||||||
|
| |||||||
Total Short-Term Investments — 0.7% | 48,675,031 | |||||||
|
| |||||||
Total Investments in Securities — 100.3% |
| 6,417,019,458 | ||||||
Other Assets, Less Liabilities — (0.3)% |
| (22,022,303 | ) | |||||
|
| |||||||
Net Assets — 100.0% | $ | 6,394,997,155 | ||||||
|
|
(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) | 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) | Annualized7-day yield as ofperiod-end. |
(h) | All or a portion of this security was purchased with cash collateral received from loaned securities. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2019, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Shares Held at | Shares Held at | Value at | Net Realized | Change in Unrealized Appreciation | ||||||||||||||||||||||||
Affiliated Issuer | 08/31/18 | Net Activity | 02/28/19 | 02/28/19 | Income | Gain (Loss) | (a) | (Depreciation) | ||||||||||||||||||||
BlackRock Cash Funds: Institutional, | 80,281,282 | (34,193,864 | ) | 46,087,418 | $ | 46,105,854 | $ | 392,841 | (b) | $ | (1,465 | ) | $ | (3,932 | ) | |||||||||||||
BlackRock Cash Funds: Treasury, | 1,873,964 | 695,213 | 2,569,177 | 2,569,177 | 36,010 | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
$ | 48,675,031 | $ | 428,851 | $ | (1,465 | ) | $ | (3,932 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Includes 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, and less fees paid to BTC as securities lending agent. |
2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI Eurozone ETF |
Futures Contracts
Description | Number of Contracts | Expiration Date | Notional Amount (000) | Value/ Unrealized Appreciation (Depreciation) | ||||||||||||
Long Contracts | ||||||||||||||||
Euro STOXX 50 Index | 679 | 03/15/19 | $ | 25,499 | $ | 1,618,025 | ||||||||||
|
|
Derivative Financial Instruments Categorized by Risk Exposure
As of February 28, 2019, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:
Equity Contracts | ||||
Assets — Derivative Financial Instruments | ||||
Futures contracts | ||||
Net unrealized appreciation(a) | $ | 1,618,025 | ||
|
|
(a) | Represents cumulative appreciation (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. |
For the six months ended February 28, 2019, the effect of derivative financial instruments in the Statement of Operations was as follows:
Equity Contracts | ||||
Net Realized Gain (Loss) from: | ||||
Futures contracts | $ | (4,464,593 | ) | |
|
| |||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Futures contracts | $ | 2,472,953 | ||
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: | ||||
Average notional value of contracts — long | $ | 30,937,373 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
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, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2019. 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 | $ | 6,256,366,217 | $ | — | $ | 5 | $ | 6,256,366,222 | ||||||||
Preferred Stocks | 111,978,205 | — | — | 111,978,205 | ||||||||||||
Money Market Funds | 48,675,031 | — | — | 48,675,031 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 6,417,019,453 | $ | — | $ | 5 | $ | 6,417,019,458 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $ | 1,618,025 | $ | — | $ | — | $ | 1,618,025 | ||||||||
|
|
|
|
|
|
|
|
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
S C H E D U L E O F I N V E S T M E N T S |
Schedule of Investments (unaudited) February 28, 2019 | iShares® MSCI Germany ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Aerospace & Defense — 0.9% | ||||||||
MTU Aero Engines AG | 102,236 | $ | 21,944,452 | |||||
|
| |||||||
Air Freight & Logistics — 2.6% | ||||||||
Deutsche Post AG, Registered | 1,944,846 | 60,502,796 | ||||||
|
| |||||||
Airlines — 0.5% | ||||||||
Deutsche Lufthansa AG, Registered | 467,296 | 11,945,874 | ||||||
|
| |||||||
Auto Components — 1.5% | ||||||||
Continental AG | 216,458 | 35,493,242 | ||||||
|
| |||||||
Automobiles — 7.4% | ||||||||
Bayerische Motoren Werke AG | 650,960 | 55,082,177 | ||||||
Daimler AG, Registered | 1,787,868 | 107,207,666 | ||||||
Volkswagen AG | 63,818 | 11,292,855 | ||||||
|
| |||||||
173,582,698 | ||||||||
Banks — 0.7% | ||||||||
Commerzbank AG(a) | 1,974,964 | 16,315,716 | ||||||
|
| |||||||
Capital Markets — 3.5% | ||||||||
Deutsche Bank AG, Registered(b) | 3,863,582 | 35,904,017 | ||||||
Deutsche Boerse AG | 373,553 | 47,258,053 | ||||||
|
| |||||||
83,162,070 | ||||||||
Chemicals — 8.5% | ||||||||
BASF SE | 1,805,792 | 137,748,614 | ||||||
Covestro AG(c) | 378,223 | 21,594,433 | ||||||
Evonik Industries AG | 321,400 | 9,057,964 | ||||||
LANXESS AG | 170,639 | 9,258,715 | ||||||
Symrise AG | 242,508 | 21,395,637 | ||||||
|
| |||||||
199,055,363 | ||||||||
Construction & Engineering — 0.3% | ||||||||
HOCHTIEF AG | 41,324 | 6,559,559 | ||||||
|
| |||||||
Construction Materials — 0.9% | ||||||||
HeidelbergCement AG | 292,729 | 21,546,495 | ||||||
|
| |||||||
Diversified Telecommunication Services — 5.2% | ||||||||
Deutsche Telekom AG, Registered | 6,552,949 | 108,084,849 | ||||||
Telefonica Deutschland Holding AG | 1,448,836 | 4,761,295 | ||||||
United Internet AG, Registered(d) | 242,312 | 8,826,707 | ||||||
|
| |||||||
121,672,851 | ||||||||
Electrical Equipment — 0.4% | ||||||||
OSRAM Licht AG(b) | 193,775 | 8,406,830 | ||||||
|
| |||||||
Food & Staples Retailing — 0.2% | ||||||||
METRO AG | 350,829 | 5,898,458 | ||||||
|
| |||||||
Health Care Equipment & Supplies — 0.5% | ||||||||
Siemens Healthineers AG(c) | 294,910 | 11,961,701 | ||||||
|
| |||||||
Health Care Providers & Services — 3.4% | ||||||||
Fresenius Medical Care AG & Co. KGaA | 425,189 | 33,349,144 | ||||||
Fresenius SE & Co. KGaA | 820,138 | 46,162,262 | ||||||
|
| |||||||
79,511,406 | ||||||||
Household Products — 0.8% | ||||||||
Henkel AG & Co. KGaA | 204,481 | 19,232,801 | ||||||
|
| |||||||
Independent Power and Renewable Electricity Producers — 0.5% | ||||||||
Uniper SE | 394,730 | 11,511,164 | ||||||
|
|
Security | Shares | Value | ||||||
Industrial Conglomerates — 7.0% | ||||||||
Siemens AG, Registered | 1,504,043 | $ | 164,637,487 | |||||
|
| |||||||
Insurance — 11.6% | ||||||||
Allianz SE, Registered | 834,517 | 185,871,829 | ||||||
Hannover Rueck SE | 118,847 | 17,728,380 | ||||||
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen, Registered | 294,003 | 69,333,224 | ||||||
|
| |||||||
272,933,433 | ||||||||
Internet & Direct Marketing Retail — 0.6% | ||||||||
Delivery Hero SE(a)(c) | 181,959 | 7,061,267 | ||||||
Zalando SE(a)(c) | 220,213 | 8,124,516 | ||||||
|
| |||||||
15,185,783 | ||||||||
IT Services — 1.3% | ||||||||
Wirecard AG(b) | 231,094 | 31,709,198 | ||||||
|
| |||||||
Life Sciences Tools & Services — 0.7% | ||||||||
QIAGEN NV(a) | 453,826 | 17,373,872 | ||||||
|
| |||||||
Machinery — 0.7% | ||||||||
GEA Group AG | 317,768 | 7,624,024 | ||||||
KION Group AG | 139,720 | 7,974,054 | ||||||
|
| |||||||
15,598,078 | ||||||||
Media — 0.8% | ||||||||
Axel Springer SE | 94,625 | 5,403,639 | ||||||
ProSiebenSat.1 Media SE | 457,789 | 8,361,405 | ||||||
RTL Group SA | 75,428 | 4,258,422 | ||||||
|
| |||||||
18,023,466 | ||||||||
Metals & Mining — 0.5% | ||||||||
thyssenkrupp AG | 853,237 | 12,776,296 | ||||||
|
| |||||||
Multi-Utilities — 3.6% | ||||||||
E.ON SE | 4,327,512 | 47,725,165 | ||||||
Innogy SE, New(c) | 26,034 | 1,204,770 | ||||||
Innogy SE(a) | 246,086 | 10,454,944 | ||||||
RWE AG | 1,019,708 | 24,918,109 | ||||||
|
| |||||||
84,302,988 | ||||||||
Personal Products — 0.8% | ||||||||
Beiersdorf AG | 198,242 | 18,411,214 | ||||||
|
| |||||||
Pharmaceuticals — 7.4% | ||||||||
Bayer AG, Registered . | 1,833,461 | 146,727,989 | ||||||
Merck KGaA | 253,758 | 26,231,278 | ||||||
|
| |||||||
172,959,267 | ||||||||
Real Estate Management & Development — 3.9% | ||||||||
Aroundtown SA | 1,541,762 | 12,991,479 | ||||||
Deutsche Wohnen SE | 702,678 | 32,805,733 | ||||||
Vonovia SE | 967,648 | 46,983,367 | ||||||
|
| |||||||
92,780,579 | ||||||||
Semiconductors & Semiconductor Equipment — 2.1% | ||||||||
Infineon Technologies AG | 2,235,469 | 49,141,453 | ||||||
|
| |||||||
Software — 8.8% | ||||||||
SAP SE | 1,932,259 | 207,264,907 | ||||||
|
| |||||||
Textiles, Apparel & Luxury Goods — 4.5% | ||||||||
adidas AG | 354,629 | 86,255,149 | ||||||
HUGO BOSS AG | 124,808 | 9,240,573 | ||||||
Puma SE | 16,361 | 9,231,304 | ||||||
|
| |||||||
104,727,026 |
2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI Germany ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Trading Companies & Distributors — 0.6% | ||||||||
Brenntag AG | 302,810 | $ | 15,033,712 | |||||
|
| |||||||
Transportation Infrastructure — 0.3% | ||||||||
Fraport AG Frankfurt Airport Services Worldwide | 82,345 | 6,621,776 | ||||||
|
| |||||||
Wireless Telecommunication Services — 0.2% | ||||||||
1&1 Drillisch AG(b) | 103,320 | 4,091,886 | ||||||
|
| |||||||
Total Common Stocks — 93.2% | 2,191,875,897 | |||||||
|
| |||||||
Preferred Stocks | ||||||||
Automobiles — 3.9% | ||||||||
Bayerische Motoren Werke AG, Preference Shares, NVS | 108,836 | 8,043,162 | ||||||
Porsche Automobil Holding SE, Preference Shares, NVS | 301,250 | 20,108,626 | ||||||
Volkswagen AG, Preference Shares, NVS | 364,873 | 62,696,096 | ||||||
|
| |||||||
90,847,884 | �� | |||||||
Chemicals — 0.2% | ||||||||
Fuchs Petrolub SE, Preference Shares, NVS | 135,446 | 6,061,335 | ||||||
|
| |||||||
Health Care Equipment & Supplies — 0.5% | ||||||||
Sartorius AG, Preference Shares, NVS | 69,942 | 11,102,233 | ||||||
|
| |||||||
Household Products — 1.5% | ||||||||
Henkel AG & Co. KGaA, Preference Shares, NVS | 350,510 | 35,059,222 | ||||||
|
| |||||||
Total Preferred Stocks — 6.1% | 143,070,674 | |||||||
|
|
Security | Shares | Value | ||||||
Short-Term Investments | ||||||||
Money Market Funds — 1.9% | ||||||||
BlackRock Cash Funds: Institutional, | 43,469,307 | $ | 43,486,695 | |||||
BlackRock Cash Funds: Treasury, | 1,270,459 | 1,270,459 | ||||||
|
| |||||||
44,757,154 | ||||||||
|
| |||||||
Total Short-Term Investments — 1.9% | 44,757,154 | |||||||
|
| |||||||
Total Investments in Securities — 101.2% |
| 2,379,703,725 | ||||||
Other Assets, Less Liabilities — (1.2)% |
| (29,334,274 | ) | |||||
|
| |||||||
Net Assets — 100.0% | $ | 2,350,369,451 | ||||||
|
|
(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) | This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933. |
(e) | Affiliate of the Fund. |
(f) | Annualized7-day yield as ofperiod-end. |
(g) | All or a portion of this security was purchased with cash collateral received from loaned securities. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2019, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Shares Held at | Shares Held at | Value at | Net Realized | Change in Unrealized Appreciation | ||||||||||||||||||||||||
Affiliated Issuer | 08/31/18 | Net Activity | 02/28/19 | 02/28/19 | Income | Gain (Loss) | (a) | (Depreciation) | ||||||||||||||||||||
BlackRock Cash Funds: Institutional, | 62,176,709 | (18,707,402 | ) | 43,469,307 | $ | 43,486,695 | $ | 202,234 | (b) | $ | 4,731 | $ | 3,762 | |||||||||||||||
BlackRock Cash Funds: Treasury, | 247,268 | 1,023,191 | 1,270,459 | 1,270,459 | 10,771 | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
$ | 44,757,154 | $ | 213,005 | $ | 4,731 | $ | 3,762 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Includes 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, and less fees paid to BTC as securities lending agent. |
Futures Contracts
Description | Number of Contracts | Expiration Date | Notional Amount (000) | Value/ Unrealized Appreciation (Depreciation) | ||||||||||||
Long Contracts | ||||||||||||||||
DAX Index | 45 | 03/15/19 | $ | 14,758 | $ | 675,529 | ||||||||||
|
|
S C H E D U L E O F I N V E S T M E N T S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI Germany ETF |
Derivative Financial Instruments Categorized by Risk Exposure
As of February 28, 2019, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:
Equity Contracts | ||||
Assets — Derivative Financial Instruments | ||||
Futures contracts | ||||
Net unrealized appreciation(a) | $ | 675,529 | ||
|
|
(a) | Represents cumulative appreciation (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. |
For the six months ended February 28, 2019, the effect of derivative financial instruments in the Statement of Operations was as follows:
Equity Contracts | ||||
Net Realized Gain (Loss) from: | ||||
Futures contracts | $ | (1,923,197 | ) | |
|
| |||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Futures contracts | $ | 1,242,439 | ||
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: | ||||
Average notional value of contracts — long | $ | 15,907,819 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
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, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2019. 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 | $ | 2,191,875,897 | $ | — | $ | — | $ | 2,191,875,897 | ||||||||
Preferred Stocks | 143,070,674 | — | — | 143,070,674 | ||||||||||||
Money Market Funds | 44,757,154 | — | — | 44,757,154 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 2,379,703,725 | $ | — | $ | — | $ | 2,379,703,725 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $ | 675,529 | $ | — | $ | — | $ | 675,529 | ||||||||
|
|
|
|
|
|
|
|
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) February 28, 2019 | iShares® MSCI Italy ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Aerospace & Defense — 1.5% | ||||||||
Leonardo SpA | 302,993 | $ | 3,058,932 | |||||
|
| |||||||
Auto Components — 1.3% | ||||||||
Pirelli & C SpA(a)(b) | 407,986 | 2,740,986 | ||||||
|
| |||||||
Automobiles — 8.9% | ||||||||
Ferrari NV | 72,066 | 9,285,269 | ||||||
Fiat Chrysler Automobiles NV(b) | 616,780 | 9,117,619 | ||||||
|
| |||||||
18,402,888 | ||||||||
Banks — 20.5% | ||||||||
Intesa Sanpaolo SpA | 8,739,848 | 21,586,039 | ||||||
Mediobanca Banca di Credito Finanziario SpA | 511,296 | 5,136,284 | ||||||
UniCredit SpA | 1,136,436 | 15,484,726 | ||||||
|
| |||||||
42,207,049 | ||||||||
Beverages — 2.3% | ||||||||
Davide Campari-Milano SpA | 486,997 | 4,649,849 | ||||||
|
| |||||||
Diversified Financial Services — 2.6% | ||||||||
EXOR NV | 86,508 | 5,329,213 | ||||||
|
| |||||||
Diversified Telecommunication Services — 2.7% | ||||||||
Telecom Italia SpA/Milano(b)(c) | 9,073,453 | 5,535,857 | ||||||
|
| |||||||
Electric Utilities — 17.8% | ||||||||
Enel SpA | 4,922,746 | 29,821,439 | ||||||
Terna Rete Elettrica Nazionale SpA | 1,098,264 | 6,838,247 | ||||||
|
| |||||||
36,659,686 | ||||||||
Electrical Equipment — 2.0% | ||||||||
Prysmian SpA | 203,893 | 4,167,507 | ||||||
|
| |||||||
Energy Equipment & Services — 2.5% | ||||||||
Tenaris SA | 380,304 | 5,079,704 | ||||||
|
| |||||||
Insurance — 6.6% | ||||||||
Assicurazioni Generali SpA | 525,495 | 9,391,597 | ||||||
Poste Italiane SpA(a) | 465,859 | 4,206,658 | ||||||
|
| |||||||
13,598,255 | ||||||||
Machinery — 4.0% | ||||||||
CNH Industrial NV | 756,837 | 8,207,885 | ||||||
|
| |||||||
Oil, Gas & Consumable Fuels — 16.9% | ||||||||
Eni SpA | 1,527,710 | 26,382,838 | ||||||
Snam SpA | 1,698,933 | 8,405,732 | ||||||
|
| |||||||
34,788,570 |
Security | Shares | Value | ||||||
Pharmaceuticals — 1.7% | ||||||||
Recordati SpA | 95,401 | $ | 3,592,499 | |||||
|
| |||||||
Textiles, Apparel & Luxury Goods — 2.6% | ||||||||
Moncler SpA | 141,849 | 5,446,574 | ||||||
|
| |||||||
Transportation Infrastructure — 4.3% | ||||||||
Atlantia SpA | 364,592 | 8,876,145 | ||||||
|
| |||||||
Total Common Stocks — 98.2% | 202,341,599 | |||||||
|
| |||||||
Preferred Stocks | ||||||||
Diversified Telecommunication Services — 1.6% | ||||||||
Telecom Italia SpA/Milano, Preference Shares, NVS | 5,792,201 | 3,159,943 | ||||||
|
| |||||||
Total Preferred Stocks — 1.6% | 3,159,943 | |||||||
|
| |||||||
Short-Term Investments | ||||||||
Money Market Funds — 2.6% | ||||||||
BlackRock Cash Funds: Institutional, | 5,243,343 | 5,245,440 | ||||||
BlackRock Cash Funds: Treasury, | 111,259 | 111,259 | ||||||
|
| |||||||
5,356,699 | ||||||||
|
| |||||||
Total Short-Term Investments — 2.6% | 5,356,699 | |||||||
|
| |||||||
Total Investments in Securities — 102.4% |
| 210,858,241 | ||||||
Other Assets, Less Liabilities — (2.4)% | (4,868,308 | ) | ||||||
|
| |||||||
Net Assets — 100.0% | $ | 205,989,933 | ||||||
|
|
(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) | All or a portion of this security is on loan. |
(d) | Affiliate of the Fund. |
(e) | Annualized7-day yield as ofperiod-end. |
(f) | All or a portion of this security was purchased with cash collateral received from loaned securities. |
S C H E D U L E O F I N V E S T M E N T S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI Italy ETF |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2019, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Affiliated Issuer | | Shares Held at 08/31/18 | | Net Activity | | Shares Held at 02/28/19 | | | Value at 02/28/19 | | Income | | Net Realized Gain (Loss) | (a) | | Change in Unrealized Appreciation (Depreciation) | | |||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | 9,072,916 | (3,829,573) | 5,243,343 | $ | 5,245,440 | $ | 8,977 | (b) | $ | (427) | $ | (180) | ||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 142,515 | (31,256) | 111,259 | 111,259 | 2,335 | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
$ | 5,356,699 | $ | 11,312 | $ | (427) | $ | (180) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Includes 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, and less fees paid to BTC as securities lending agent. |
Futures Contracts
Description | Number of Contracts | Expiration Date | Notional Amount (000) | Value/ Unrealized Appreciation (Depreciation) | ||||||||||||
Long Contracts | ||||||||||||||||
FTSE/MIB Index | 3 | 03/15/19 | $ | 353 | $ | 14,086 | ||||||||||
|
|
Derivative Financial Instruments Categorized by Risk Exposure
As of February 28, 2019, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:
Equity Contracts | ||||
Assets — Derivative Financial Instruments | ||||
Futures contracts | ||||
Net unrealized appreciation(a) | $ | 14,086 | ||
|
|
(a) | Represents cumulative appreciation (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. |
For the six months ended February 28, 2019, the effect of derivative financial instruments in the Statement of Operations was as follows:
Equity Contracts | ||||
Net Realized Gain (Loss) from: | ||||
Futures contracts | $ | (88,688 | ) | |
|
| |||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Futures contracts | $ | 44,835 | ||
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: | ||||
Average notional value of contracts — long | $ | 346,999 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
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, refer to the Notes to Financial Statements.
2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI Italy ETF |
Fair Value Measurements (continued)
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2019. 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 | $ | 202,341,599 | $ | — | $ | — | $ | 202,341,599 | ||||||||
Preferred Stocks | 3,159,943 | — | — | 3,159,943 | ||||||||||||
Money Market Funds | 5,356,699 | — | — | 5,356,699 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 210,858,241 | $ | — | $ | — | $ | 210,858,241 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $ | 14,086 | $ | — | $ | — | $ | 14,086 | ||||||||
|
|
|
|
|
|
|
|
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
S C H E D U L E O F I N V E S T M E N T S |
Schedule of Investments (unaudited) February 28, 2019 | iShares® MSCI Spain ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Airlines — 0.0% | ||||||||
International Consolidated Airlines Group SA | 45,400 | $ | 359,604 | |||||
|
| |||||||
Banks — 36.9% | ||||||||
Banco Bilbao Vizcaya Argentaria SA | 11,406,156 | 71,097,386 | ||||||
Banco de Sabadell SA | 17,090,028 | 19,489,615 | ||||||
Banco Santander SA | 29,870,654 | 146,122,986 | ||||||
Bankia SA | 4,641,603 | 14,191,288 | ||||||
Bankinter SA | 2,154,350 | 17,716,718 | ||||||
CaixaBank SA | 8,949,944 | 31,959,937 | ||||||
|
| |||||||
300,577,930 | ||||||||
Biotechnology — 2.7% | ||||||||
Grifols SA | 856,701 | 22,300,522 | ||||||
|
| |||||||
Construction & Engineering — 7.7% | ||||||||
ACS Actividades de Construccion y Servicios SA | 707,187 | 31,389,590 | ||||||
Ferrovial SA | 1,361,916 | 31,419,502 | ||||||
|
| |||||||
62,809,092 | ||||||||
Diversified Telecommunication Services — 8.5% | ||||||||
Telefonica SA | 8,024,987 | 69,348,716 | ||||||
|
| |||||||
Electric Utilities — 17.5% | ||||||||
Endesa SA | 981,750 | 24,761,912 | ||||||
Iberdrola SA | 10,977,854 | 91,903,592 | ||||||
Red Electrica Corp. SA | 1,196,960 | 25,896,601 | ||||||
|
| |||||||
142,562,105 | ||||||||
Electrical Equipment — 1.9% | ||||||||
Siemens Gamesa Renewable Energy SA(a) | 985,406 | 15,097,618 | ||||||
|
| |||||||
Gas Utilities — 3.3% | ||||||||
Naturgy Energy Group SA | 991,358 | 26,945,886 | ||||||
|
| |||||||
Insurance — 1.6% | ||||||||
Mapfre SA | 4,620,235 | 13,068,483 | ||||||
|
|
Security | Shares | Value | ||||||
IT Services — 4.3% | ||||||||
Amadeus IT Group SA | 468,457 | $ | 35,313,215 | |||||
|
| |||||||
Oil, Gas & Consumable Fuels — 7.0% | ||||||||
Enagas SA | 714,531 | 20,381,603 | ||||||
Repsol SA | 2,133,076 | 36,737,640 | ||||||
|
| |||||||
57,119,243 | ||||||||
Specialty Retail — 4.7% | ||||||||
Industria de Diseno Textil SA | 1,260,193 | 38,084,435 | ||||||
|
| |||||||
Transportation Infrastructure — 3.8% | ||||||||
Aena SME SA(b) | 175,659 | 31,383,609 | ||||||
|
| |||||||
Total Common Stocks — 99.9% | 814,970,458 | |||||||
|
| |||||||
Short-Term Investments | ||||||||
Money Market Funds — 0.1% | ||||||||
BlackRock Cash Funds: Treasury, | 1,029,847 | 1,029,847 | ||||||
|
| |||||||
Total Short-Term Investments — 0.1% | 1,029,847 | |||||||
|
| |||||||
Total Investments in Securities — 100.0% | 816,000,305 | |||||||
Other Assets, Less Liabilities — (0.0)% | (385,522 | ) | ||||||
|
| |||||||
Net Assets — 100.0% | $ | 815,614,783 | ||||||
|
|
(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) | Annualized7-day yield as ofperiod-end. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2019, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Affiliated Issuer | | Shares Held at 08/31/18 | | Net Activity | | Shares Held at 02/28/19 | | | Value at 02/28/19 | | Income | | Net Realized Gain (Loss) | (a) | | Change in Unrealized Appreciation (Depreciation) | | |||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | 19,678,549 | (19,678,549 | ) | — | $ | — | $ | 23,077 | (b) | $ | 820 | $ | (7 | ) | ||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 345,951 | 683,896 | 1,029,847 | 1,029,847 | 11,452 | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
$ | 1,029,847 | $ | 34,529 | $ | 820 | $ | (7 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Includes 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, and less fees paid to BTC as securities lending agent. |
Futures Contracts
Description | Number of Contracts | Expiration Date | Notional Amount (000) | Value/ Unrealized Appreciation (Depreciation) | ||||||||||||
Long Contracts | ||||||||||||||||
IBEX 35 Index | 11 | 03/15/19 | $ | 1,164 | $ | 11,935 | ||||||||||
|
|
2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI Spain ETF |
Derivative Financial Instruments Categorized by Risk Exposure
As of February 28, 2019, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:
Equity Contracts | ||||
Assets — Derivative Financial Instruments | ||||
Futures contracts | ||||
Net unrealized appreciation(a) | $ | 11,935 | ||
|
|
(a) | Represents cumulative appreciation (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. |
For the six months ended February 28, 2019, the effect of derivative financial instruments in the Statement of Operations was as follows:
Equity Contracts | ||||
Net Realized Gain (Loss) from: | ||||
Futures contracts | $ | (246,051 | ) | |
|
| |||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Futures contracts | $ | 36,903 | ||
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: | ||||
Average notional value of contracts — long | $ | 1,616,446 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
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, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2019. 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 | $ | 814,970,458 | $ | — | $ | — | $ | 814,970,458 | ||||||||
Money Market Funds | 1,029,847 | — | — | 1,029,847 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 816,000,305 | $ | — | $ | — | $ | 816,000,305 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $ | 11,935 | $ | — | $ | — | $ | 11,935 | ||||||||
|
|
|
|
|
|
|
|
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
S C H E D U L E O F I N V E S T M E N T S |
Schedule of Investments (unaudited) February 28, 2019 | iShares® MSCI Switzerland ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Building Products — 1.5% | ||||||||
Geberit AG, Registered | 34,708 | $ | 13,880,413 | |||||
|
| |||||||
Capital Markets — 9.8% | ||||||||
Credit Suisse Group AG, Registered | 2,140,733 | 26,528,156 | ||||||
Julius Baer Group Ltd. | 235,721 | 10,314,272 | ||||||
Partners Group Holding AG | 16,874 | 12,229,500 | ||||||
UBS Group AG, Registered | 3,049,343 | 38,874,379 | ||||||
|
| |||||||
87,946,307 | ||||||||
Chemicals — 5.4% | ||||||||
Clariant AG, Registered | 281,430 | 6,059,700 | ||||||
EMS-Chemie Holding AG, Registered | 11,097 | 6,421,823 | ||||||
Givaudan SA, Registered | 8,028 | 20,122,381 | ||||||
Sika AG, Registered | 118,141 | 16,009,873 | ||||||
|
| |||||||
48,613,777 | ||||||||
Construction Materials — 2.3% | ||||||||
LafargeHolcim Ltd., Registered | 420,437 | 20,848,813 | ||||||
|
| |||||||
Diversified Financial Services — 0.6% | ||||||||
Pargesa Holding SA, Bearer | 66,498 | 5,473,636 | ||||||
|
| |||||||
Diversified Telecommunication Services — 1.3% | ||||||||
Swisscom AG, Registered | 25,499 | 11,828,035 | ||||||
|
| |||||||
Electrical Equipment — 3.3% | ||||||||
ABB Ltd., Registered | 1,516,376 | 30,085,497 | ||||||
|
| |||||||
Food Products — 21.7% | ||||||||
Barry Callebaut AG, Registered | 3,260 | 5,625,316 | ||||||
Chocoladefabriken Lindt & Spruengli AG, Participation Certificates, NVS | 1,236 | 8,052,239 | ||||||
Chocoladefabriken Lindt & Spruengli AG, Registered | 114 | 8,445,292 | ||||||
Nestle SA, Registered | 1,916,765 | 173,859,552 | ||||||
|
| |||||||
195,982,399 | ||||||||
Health Care Equipment & Supplies — 2.3% | ||||||||
Sonova Holding AG, Registered | 58,177 | 10,900,157 | ||||||
Straumann Holding AG, Registered | 12,044 | 9,418,065 | ||||||
|
| |||||||
20,318,222 | ||||||||
Insurance — 9.9% | ||||||||
Baloise Holding AG, Registered | 54,619 | 8,936,857 | ||||||
Swiss Life Holding AG, Registered | 32,552 | 14,214,134 | ||||||
Swiss Re AG | 257,883 | 25,581,207 | ||||||
Zurich Insurance Group AG | 121,639 | 40,293,987 | ||||||
|
| |||||||
89,026,185 | ||||||||
Life Sciences Tools & Services — 2.0% | ||||||||
Lonza Group AG, Registered | 65,178 | 18,155,887 | ||||||
|
| |||||||
Machinery —1.8% | ||||||||
Schindler Holding AG, Participation Certificates, NVS | 43,436 | 9,836,540 |
Security | Shares | Value | ||||||
Machinery (continued) | ||||||||
Schindler Holding AG, Registered | 28,331 | $ | 6,296,410 | |||||
|
| |||||||
16,132,950 | ||||||||
Marine — 0.9% | ||||||||
Kuehne + Nagel International AG, Registered | 60,395 | 7,896,455 | ||||||
|
| |||||||
Pharmaceuticals — 25.9% | ||||||||
Novartis AG, Registered | 1,249,035 | 114,145,901 | ||||||
Roche Holding AG, NVS | 402,760 | 112,111,371 | ||||||
Vifor Pharma AG | 55,462 | 6,956,411 | ||||||
|
| |||||||
233,213,683 | ||||||||
Professional Services — 2.4% | ||||||||
Adecco Group AG, Registered | 172,314 | 8,970,291 | ||||||
SGS SA, Registered | 5,118 | 13,074,995 | ||||||
|
| |||||||
22,045,286 | ||||||||
Real Estate Management & Development — 0.8% | ||||||||
Swiss Prime Site AG, Registered | 89,387 | 7,559,581 | ||||||
|
| |||||||
Software — 1.1% | ||||||||
Temenos AG, Registered | 66,225 | 9,619,311 | ||||||
|
| |||||||
Specialty Retail — 0.6% | ||||||||
Dufry AG, Registered | 51,883 | 5,270,588 | ||||||
|
| |||||||
Textiles, Apparel & Luxury Goods — 5.3% | ||||||||
Cie. Financiere Richemont SA, Registered | 430,044 | 32,997,956 | ||||||
Swatch Group AG (The), Bearer | 32,997 | 9,787,807 | ||||||
Swatch Group AG (The), Registered | 90,487 | 5,186,516 | ||||||
|
| |||||||
47,972,279 | ||||||||
|
| |||||||
Total Common Stocks — 98.9% | 891,869,304 | |||||||
|
| |||||||
Short-Term Investments | ||||||||
Money Market Funds — 0.0% | ||||||||
BlackRock Cash Funds: Treasury, | 435,512 | 435,512 | ||||||
|
| |||||||
Total Short-Term Investments — 0.0% | 435,512 | |||||||
|
| |||||||
Total Investments in Securities — 98.9% | 892,304,816 | |||||||
Other Assets, Less Liabilities — 1.1% | 9,640,558 | |||||||
|
| |||||||
Net Assets — 100.0% | $ | 901,945,374 | ||||||
|
|
(a) | Affiliate of the Fund. |
(b) | Annualized7-day yield as ofperiod-end. |
2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI Switzerland ETF |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2019, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Affiliated Issuer | | Shares Held at 08/31/18 | | Net Activity | | Shares Held at 02/28/19 | | | Value at 02/28/19 | | Income | | Net Realized Gain (Loss) |
(a) | | Change in Unrealized Appreciation (Depreciation) | | |||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | 5,419,657 | (5,419,657 | ) | — | $ | — | $ | 13,124 | (b) | $ | 400 | $ | — | |||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 404,567 | 30,945 | 435,512 | 435,512 | 3,979 | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
$ | 435,512 | $ | 17,103 | $ | 400 | $ | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Includes 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, and less fees paid to BTC as securities lending agent. |
Futures Contracts
Description | Number of Contracts | Expiration Date | Notional Amount | Value/ Appreciation (Depreciation) | ||||||||||||
Long Contracts | ||||||||||||||||
Euro STOXX 50 Index | 264 | 03/15/19 | $ | 9,914 | $ | 705,560 | ||||||||||
|
|
Derivative Financial Instruments Categorized by Risk Exposure
As of February 28, 2019, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:
Equity Contracts | ||||
Assets — Derivative Financial Instruments | ||||
Futures contracts | ||||
Net unrealized appreciation(a) | $ | 705,560 | ||
|
|
(a) | Represents cumulative appreciation (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. |
For the six months ended February 28, 2019, the effect of derivative financial instruments in the Statement of Operations was as follows:
Equity Contracts | ||||
Net Realized Gain (Loss) from: | ||||
Futures contracts | $ | (1,055,323 | ) | |
|
| |||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Futures contracts | $ | 892,562 | ||
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: | ||||
Average notional value of contracts — long | $ | 9,787,466 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
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, refer to the Notes to Financial Statements.
S C H E D U L E O F I N V E S T M E N T S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI Switzerland ETF |
Fair Value Measurements (continued)
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2019. 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 | $ | 891,869,304 | $ | — | $ | — | $ | 891,869,304 | ||||||||
Money Market Funds | 435,512 | — | — | 435,512 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 892,304,816 | $ | — | $ | — | $ | 892,304,816 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative financial instruments(a) | ||||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | $ | 705,560 | $ | — | $ | — | $ | 705,560 | ||||||||
|
|
|
|
|
|
|
|
(a) | Shown at the unrealized appreciation (depreciation) on the contracts. |
See notes to financial statements.
2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Statements of Assets and Liabilities (unaudited)
February 28, 2019
iShares MSCI Eurozone ETF | iShares MSCI Germany ETF | iShares MSCI Italy ETF | iShares MSCI Spain ETF | |||||||||||||
ASSETS | ||||||||||||||||
Investments in securities, at value (including securities on loan)(a): | ||||||||||||||||
Unaffiliated(b) | $ | 6,368,344,427 | $ | 2,334,946,571 | $ | 205,501,542 | $ | 814,970,458 | ||||||||
Affiliated(c) | 48,675,031 | 44,757,154 | 5,356,699 | 1,029,847 | ||||||||||||
Foreign currency, at value(d) | 17,224,120 | 5,699,942 | 273,337 | 946,409 | ||||||||||||
Foreign currency pledged: | ||||||||||||||||
Futures contracts(e) | 2,300,175 | 1,165,118 | 23,912 | 147,234 | ||||||||||||
Receivables: | ||||||||||||||||
Investments sold | 19,733,913 | 5,881,254 | 4,545,500 | 17,703,136 | ||||||||||||
Securities lending income — Affiliated | 77,814 | 62,159 | 430 | 709 | ||||||||||||
Variation margin on futures contracts | 193,607 | 49,855 | 2,144 | 15,979 | ||||||||||||
Capital shares sold | — | — | — | 4,654,034 | ||||||||||||
Dividends | 1,826,337 | 2,049 | 173 | 840 | ||||||||||||
Tax reclaims | 8,765,179 | 9,411,556 | — | 151,961 | ||||||||||||
Foreign withholding tax claims | 3,872,489 | — | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total assets | 6,471,013,092 | 2,401,975,658 | 215,703,737 | 839,620,607 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
LIABILITIES | ||||||||||||||||
Collateral on securities loaned, at value | 46,121,636 | 43,499,779 | 5,244,916 | — | ||||||||||||
Payables: | ||||||||||||||||
Investments purchased | 27,491,283 | 7,233,686 | 4,390,751 | 23,686,706 | ||||||||||||
Investment advisory fees | 2,364,293 | 872,742 | 78,137 | 319,118 | ||||||||||||
Professional fees | 38,725 | — | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total liabilities | 76,015,937 | 51,606,207 | 9,713,804 | 24,005,824 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS | $ | 6,394,997,155 | $ | 2,350,369,451 | $ | 205,989,933 | $ | 815,614,783 | ||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS CONSIST OF: | ||||||||||||||||
Paid-in capital | $ | 8,166,113,959 | $ | 3,196,766,335 | $ | 493,846,786 | $ | 1,248,796,780 | ||||||||
Accumulated loss | (1,771,116,804 | ) | (846,396,884 | ) | (287,856,853 | ) | (433,181,997 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS | $ | 6,394,997,155 | $ | 2,350,369,451 | $ | 205,989,933 | $ | 815,614,783 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Shares outstanding | 165,800,000 | 86,100,000 | 7,575,000 | 27,975,000 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net asset value | $ | 38.57 | $ | 27.30 | $ | 27.19 | $ | 29.16 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Shares authorized | 1 billion | 482.2 million | 295.4 million | 127.8 million | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Par value | $ | 0.001 | $ | 0.001 | $ | 0.001 | $ | 0.001 | ||||||||
|
|
|
|
|
|
|
| |||||||||
(a) Securities loaned, at value | $ | 44,919,261 | $ | 42,449,091 | $ | 5,000,011 | $ | — | ||||||||
(b) Investments, at cost — Unaffiliated | $ | 7,459,451,402 | $ | 2,947,881,715 | $ | 249,804,056 | $ | 1,059,331,415 | ||||||||
(c) Investments, at cost — Affiliated | $ | 48,667,236 | $ | 44,751,600 | $ | 5,356,175 | $ | 1,029,847 | ||||||||
(d) Foreign currency, at cost | $ | 17,261,614 | $ | 5,703,785 | $ | 273,005 | $ | 943,169 | ||||||||
(e) Foreign currency collateral pledged, at cost | $ | 2,308,840 | $ | 1,171,405 | $ | 23,884 | $ | 146,770 |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S |
Statements of Assets and Liabilities (unaudited) (continued)
February 28, 2019
iShares MSCI Switzerland ETF | ||||
ASSETS | ||||
Investments in securities, at value: | ||||
Unaffiliated(a) | $ | 891,869,304 | ||
Affiliated(b) | 435,512 | |||
Foreign currency, at value(c) | 1,332,534 | |||
Foreign currency pledged: | ||||
Futures contracts(d) | 738,334 | |||
Receivables: | ||||
Investments sold | 6,848,482 | |||
Securities lending income — Affiliated | 459 | |||
Variation margin on futures contracts | 64,405 | |||
Dividends | 587 | |||
Tax reclaims | 8,380,314 | |||
|
| |||
Total assets | 909,669,931 | |||
|
| |||
LIABILITIES | ||||
Payables: | ||||
Investments purchased | 7,394,739 | |||
Investment advisory fees | 329,818 | |||
|
| |||
Total liabilities | 7,724,557 | |||
|
| |||
NET ASSETS | $ | 901,945,374 | ||
|
| |||
NET ASSETS CONSIST OF: | ||||
Paid-in capital | $ | 987,594,429 | ||
Accumulated loss | (85,649,055 | ) | ||
|
| |||
NET ASSETS | $ | 901,945,374 | ||
|
| |||
Shares outstanding | 26,000,000 | |||
|
| |||
Net asset value | $ | 34.69 | ||
|
| |||
Shares authorized | 318.625 million | |||
|
| |||
Par value | $ | 0.001 | ||
|
| |||
(a) Investments, at cost — Unaffiliated | $ | 918,892,135 | ||
(b) Investments, at cost — Affiliated | $ | 435,512 | ||
(c) Foreign currency, at cost | $ | 1,328,205 | ||
(d) Foreign currency collateral pledged, at cost | $ | 747,713 |
See notes to financial statements.
2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Statements of Operations (unaudited)
Six Months Ended February 28, 2019
iShares MSCI Eurozone ETF | iShares MSCI Germany ETF | iShares MSCI Italy ETF | iShares MSCI Spain ETF | |||||||||||||
INVESTMENT INCOME | ||||||||||||||||
Dividends — Unaffiliated | $ | 48,737,059 | $ | 8,522,889 | $ | 3,064,722 | $ | 12,843,081 | ||||||||
Dividends — Affiliated | 36,010 | 10,771 | 2,335 | 11,452 | ||||||||||||
Non-cash dividends — Unaffiliated | 7,685,188 | — | — | 6,119,459 | ||||||||||||
Securities lending income — Affiliated — net | 392,841 | 202,234 | 8,977 | 23,077 | ||||||||||||
Foreign taxes withheld | (5,914,720 | ) | (1,265,528 | ) | (452,207 | ) | (1,927,548 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total investment income | 50,936,378 | 7,470,366 | 2,623,827 | 17,069,521 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
EXPENSES | ||||||||||||||||
Investment advisory fees | 18,351,230 | 6,353,514 | 634,466 | 2,265,084 | ||||||||||||
Professional fees | 13,905 | — | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total expenses | 18,365,135 | 6,353,514 | 634,466 | 2,265,084 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net investment income | 32,571,243 | 1,116,852 | 1,989,361 | 14,804,437 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||
Investments — Unaffiliated | (12,820,504 | ) | (8,627,073 | ) | (2,732,793 | ) | (15,295,132 | ) | ||||||||
Investments — Affiliated | (1,465 | ) | 4,731 | (427 | ) | 820 | ||||||||||
In-kind redemptions — Unaffiliated | (124,915,426 | ) | (19,207,640 | ) | (42,305,168 | ) | (4,786,282 | ) | ||||||||
Futures contracts | (4,464,593 | ) | (1,923,197 | ) | (88,688 | ) | (246,051 | ) | ||||||||
Foreign currency transactions | (830,022 | ) | (315,295 | ) | (22,055 | ) | (66,489 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net realized loss | (143,032,010 | ) | (30,068,474 | ) | (45,149,131 | ) | (20,393,134 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments — Unaffiliated | (566,523,016 | ) | (298,832,200 | ) | 39,913,170 | (4,825,720 | ) | |||||||||
Investments — Affiliated | (3,932 | ) | 3,762 | (180 | ) | (7 | ) | |||||||||
Futures contracts | 2,472,953 | 1,242,439 | 44,835 | 36,903 | ||||||||||||
Foreign currency translations | (296,021 | ) | (64,222 | ) | 459 | 7,981 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net change in unrealized appreciation (depreciation) | (564,350,016 | ) | (297,650,221 | ) | 39,958,284 | (4,780,843 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net realized and unrealized loss | (707,382,026 | ) | (327,718,695 | ) | (5,190,847 | ) | (25,173,977 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | (674,810,783 | ) | $ | (326,601,843 | ) | $ | (3,201,486 | ) | $ | (10,369,540 | ) | ||||
|
|
|
|
|
|
|
|
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S |
Statements of Operations (unaudited) (continued)
Six Months Ended February 28, 2019
iShares MSCI Switzerland ETF | ||||
INVESTMENT INCOME | ||||
Dividends — Unaffiliated | $ | 993,809 | ||
Dividends — Affiliated | 3,979 | |||
Securities lending income — Affiliated — net | 13,124 | |||
Foreign taxes withheld | (200,428 | ) | ||
|
| |||
Total investment income | 810,484 | |||
|
| |||
EXPENSES | ||||
Investment advisory fees | 2,301,438 | |||
|
| |||
Total expenses | 2,301,438 | |||
|
| |||
Net investment loss | (1,490,954 | ) | ||
|
| |||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||
Net realized gain (loss) from: | ||||
Investments — Unaffiliated | (12,630,872 | ) | ||
Investments —Affiliated | 400 | |||
In-kind redemptions — Unaffiliated | 13,396,636 | |||
Futures contracts | (1,055,323 | ) | ||
Foreign currency transactions | (4,422 | ) | ||
|
| |||
Net realized loss | (293,581 | ) | ||
|
| |||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments — Unaffiliated | (16,164,644 | ) | ||
Futures contracts | 892,562 | |||
Foreign currency translations | (271,919 | ) | ||
|
| |||
Net change in unrealized appreciation (depreciation) | (15,544,001 | ) | ||
|
| |||
Net realized and unrealized loss | (15,837,582 | ) | ||
|
| |||
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | (17,328,536 | ) | |
|
|
See notes to financial statements.
2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Statements of Changes in Net Assets
iShares MSCI Eurozone ETF | iShares MSCI Germany ETF | |||||||||||||||
Six Months Ended 02/28/19 (unaudited) | Year Ended 08/31/18 | Six Months Ended 02/28/19 (unaudited) | Year Ended 08/31/18 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income | $ | 32,571,243 | $ | 324,772,803 | $ | 1,116,852 | $ | 84,698,325 | ||||||||
Net realized gain (loss) | (143,032,010 | ) | 847,344,521 | (30,068,474 | ) | 223,956,630 | ||||||||||
Net change in unrealized appreciation (depreciation). | (564,350,016 | ) | (880,284,404 | ) | (297,650,221 | ) | (168,754,739 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | (674,810,783 | ) | 291,832,920 | (326,601,843 | ) | 139,900,216 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||||||||||
Decrease in net assets resulting from distributions to shareholders | (36,393,997 | ) | (344,359,197 | ) | — | (97,497,098 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||
Net decrease in net assets derived from capital share transactions . | (2,452,032,229 | ) | (3,675,455,483 | ) | (674,256,279 | ) | (1,501,075,041 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS(a) | ||||||||||||||||
Total decrease in net assets | (3,163,237,009 | ) | (3,727,981,760 | ) | (1,000,858,122 | ) | (1,458,671,923 | ) | ||||||||
Beginning of period | 9,558,234,164 | 13,286,215,924 | 3,351,227,573 | 4,809,899,496 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 6,394,997,155 | $ | 9,558,234,164 | $ | 2,350,369,451 | $ | 3,351,227,573 | ||||||||
|
|
|
|
|
|
|
|
(a) | Prior year distribution character information and undistributed (distributions in excess of) net investment income has been modified or removed to conform with current year RegulationS-X presentation changes. Refer to Note 13 for this prior year information. |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S |
Statements of Changes in Net Assets (continued)
iShares MSCI Italy ETF | iShares MSCI Spain ETF | |||||||||||||||||||
Six Months 02/28/19 | Year Ended 08/31/18 | Six Months Ended 02/28/19 (unaudited) | Year Ended 08/31/18 | |||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS |
| |||||||||||||||||||
OPERATIONS | ||||||||||||||||||||
Net investment income | $ | 1,989,361 | $ | 18,032,993 | $ | 14,804,437 | $ | 32,625,317 | ||||||||||||
Net realized gain (loss) | (45,149,131 | ) | 49,680,629 | (20,393,134 | ) | 88,638,494 | ||||||||||||||
Net change in unrealized appreciation (depreciation) | 39,958,284 | (89,135,199 | ) | (4,780,843 | ) | (227,334,339 | ) | |||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Net decrease in net assets resulting from operations | (3,201,486 | ) | (21,421,577 | ) | (10,369,540 | ) | (106,070,528 | ) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||||||||||||||
Decrease in net assets resulting from distributions to shareholders | (2,341,637 | ) | (17,400,893 | ) | (18,939,493 | ) | (31,909,333 | ) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||||||
Net decrease in net assets derived from capital share transactions | (194,091,885 | ) | (396,183,016 | ) | (30,518,106 | ) | (515,111,708 | ) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
NET ASSETS(a) | ||||||||||||||||||||
Total decrease in net assets | (199,635,008 | ) | (435,005,486 | ) | (59,827,139 | ) | (653,091,569 | ) | ||||||||||||
Beginning of period | 405,624,941 | 840,630,427 | 875,441,922 | 1,528,533,491 | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
End of period | $ | 205,989,933 | $ | 405,624,941 | $ | 815,614,783 | $ | 875,441,922 | ||||||||||||
|
|
|
|
|
|
|
|
(a) | Prior year distribution character information and undistributed net investment income has been modified or removed to conform with current year RegulationS-X presentation changes. Refer to Note 13 for this prior year information. |
See notes to financial statements.
2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Statements of Changes in Net Assets (continued)
iShares MSCI Switzerland ETF | ||||||||
Six Months Ended 02/28/19 (unaudited) | Year Ended 08/31/18 | |||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||
OPERATIONS | ||||||||
Net investment income (loss) | $ | (1,490,954 | ) | $ | 21,969,712 | |||
Net realized gain (loss) | (293,581 | ) | 36,757,009 | |||||
Net change in unrealized appreciation (depreciation) | (15,544,001 | ) | (14,784,451 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | (17,328,536 | ) | 43,942,270 | |||||
|
|
|
| |||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||
Decrease in net assets resulting from distributions to shareholders | — | (22,803,569 | ) | |||||
|
|
|
| |||||
CAPITAL SHARE TRANSACTIONS | ||||||||
Net decrease in net assets derived from capital share transactions | (114,812,358 | ) | (246,310,096 | ) | ||||
|
|
|
| |||||
NET ASSETS(a) | ||||||||
Total decrease in net assets | (132,140,894 | ) | (225,171,395 | ) | ||||
Beginning of period | 1,034,086,268 | 1,259,257,663 | ||||||
|
|
|
| |||||
End of period | $ | 901,945,374 | $ | 1,034,086,268 | ||||
|
|
|
|
(a) | Prior year distribution character information and distributions in excess of net investment income has been modified or removed to conform with current year RegulationS-X presentation changes. Refer to Note 13 for this prior year information. |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S |
Financial Highlights
(For a share outstanding throughout each period)
iShares MSCI Eurozone ETF | ||||||||||||||||||||||||
| Six Months Ended 02/28/19 (unaudited) | | | Year Ended 08/31/18 | | | Year Ended 08/31/17 | | | Year Ended 08/31/16 | | | Year Ended 08/31/15 | | | Year Ended 08/31/14 | | |||||||
| ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 41.29 | $ | 41.71 | $ | 34.20 | $ | 36.04 | $ | 39.98 | $ | 34.64 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income(a) | 0.16 | 1.03 | 0.99 | 0.92 | (b) | 0.96 | 1.18 | |||||||||||||||||
Net realized and unrealized gain (loss)(c) | (2.69 | ) | (0.23 | ) | 7.38 | (1.84 | ) | (3.95 | ) | 5.10 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net increase (decrease) from investment operations | (2.53 | ) | 0.80 | 8.37 | (0.92 | ) | (2.99 | ) | 6.28 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Distributions | ||||||||||||||||||||||||
From net investment income | (0.19 | ) | (1.22 | ) | (0.86 | ) | (0.92 | ) | (0.95 | ) | (0.94 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | (0.19 | ) | (1.22 | ) | (0.86 | ) | (0.92 | ) | (0.95 | ) | (0.94 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 38.57 | $ | 41.29 | $ | 41.71 | $ | 34.20 | $ | 36.04 | $ | 39.98 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | (6.08 | )%(d) | 1.87 | % | 24.72 | % | (2.53 | )%(b) | (7.62 | )% | 18.02 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.49 | %(e) | 0.47 | % | 0.49 | % | 0.48 | % | 0.48 | % | 0.48 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total expenses excluding professional fees for foreign withholding tax claims | 0.49 | %(e) | N/A | 0.49 | % | 0.48 | % | N/A | N/A | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income | 0.87 | %(e) | 2.36 | % | 2.63 | % | 2.69 | %(b) | 2.50 | % | 2.89 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 6,394,997 | $ | 9,558,234 | $ | 13,286,216 | $ | 8,293,591 | $ | 10,134,616 | $ | 8,702,637 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Portfolio turnover rate(f) | 3 | %(d) | 5 | % | 4 | % | 4 | % | 5 | % | 7 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Based on average shares outstanding. |
(b) | Reflects theone-time, positive effect of foreign withholding tax claims, net of the associated professional fees, 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. |
(f) | Portfolio turnover rate excludesin-kind transactions. |
See notes to financial statements.
2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares MSCI Germany ETF | ||||||||||||||||||||||||
| Six Months Ended 02/28/19 (unaudited) | | | Year Ended 08/31/18 | | | Year Ended 08/31/17 | | | Year Ended 08/31/16 | | | Year Ended 08/31/15 | | | Year Ended 08/31/14 | | |||||||
| ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 30.36 | $ | 30.71 | $ | 26.18 | $ | 26.34 | $ | 28.97 | $ | 25.61 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income(a) | 0.01 | 0.64 | 0.59 | 0.49 | 0.58 | 0.59 | ||||||||||||||||||
Net realized and unrealized gain (loss)(b) | (3.07 | ) | (0.16 | ) | 4.54 | (0.04 | ) | (2.70 | ) | 3.40 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net increase (decrease) from investment operations | (3.06 | ) | 0.48 | 5.13 | 0.45 | (2.12 | ) | 3.99 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Distributions | ||||||||||||||||||||||||
From net investment income | — | (0.83 | ) | (0.60 | ) | (0.61 | ) | (0.51 | ) | (0.63 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | — | (0.83 | ) | (0.60 | ) | (0.61 | ) | (0.51 | ) | (0.63 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 27.30 | $ | 30.36 | $ | 30.71 | $ | 26.18 | $ | 26.34 | $ | 28.97 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | (10.08 | )%(c) | 1.52 | % | 19.63 | % | 1.81 | % | (7.50 | )% | 15.41 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.49 | %(d) | 0.47 | % | 0.49 | % | 0.48 | % | 0.48 | % | 0.48 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income | 0.09 | %(d) | 1.99 | % | 2.08 | % | 1.90 | % | 2.03 | % | 1.95 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 2,350,369 | $ | 3,351,228 | $ | 4,809,899 | $ | 3,596,902 | $ | 6,607,056 | $ | 4,797,434 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Portfolio turnover rate(e) | 5 | %(c) | 6 | % | 3 | % | 3 | % | 3 | % | 6 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Based on average shares outstanding. |
(b) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(c) | Not annualized. |
(d) | Annualized. |
(e) | Portfolio turnover rate excludesin-kind transactions. |
See notes to financial statements.
F I N A N C I A L H I G H L I G H T S |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares MSCI Italy ETF | ||||||||||||||||||||||||
| Six Months Ended 02/28/19 (unaudited) | | | Year Ended 08/31/18 | | | Year Ended 08/31/17 | (a) | | Year Ended 08/31/16 | (a) | | Year Ended 08/31/15 | (a) | | Year Ended 08/31/14 | (a) | |||||||
| ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 27.18 | $ | 30.21 | $ | 22.60 | $ | 29.50 | $ | 32.03 | $ | 26.12 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income(b) | 0.20 | 0.82 | 0.57 | 0.66 | 0.70 | 0.82 | ||||||||||||||||||
Net realized and unrealized gain (loss)(c) | 0.13 | (2.86 | ) | 7.76 | (6.82 | ) | (2.49 | ) | 5.77 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net increase (decrease) from investment operations | 0.33 | (2.04 | ) | 8.33 | (6.16 | ) | (1.79 | ) | 6.59 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Distributions | ||||||||||||||||||||||||
From net investment income | (0.32 | ) | (0.99 | ) | (0.72 | ) | (0.72 | ) | (0.74 | ) | (0.68 | ) | ||||||||||||
Return of capital | — | — | — | (0.02 | ) | — | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | (0.32 | ) | (0.99 | ) | (0.72 | ) | (0.74 | ) | (0.74 | ) | (0.68 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 27.19 | $ | 27.18 | $ | 30.21 | $ | 22.60 | $ | 29.50 | $ | 32.03 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | 1.32 | %(d) | (6.98 | )% | 37.37 | % | (20.97 | )% | (5.66 | )% | 25.20 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.49 | %(e) | 0.47 | % | 0.49 | % | 0.48 | % | 0.48 | % | 0.48 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income | 1.54 | %(e) | 2.64 | % | 2.59 | % | 2.54 | % | 2.34 | % | 2.49 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 205,990 | $ | 405,625 | $ | 840,630 | $ | 461,031 | $ | 1,077,437 | $ | 1,556,860 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Portfolio turnover rate(f) | 5 | %(d) | 10 | % | 18 | % | 16 | % | 22 | % | 24 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Per share amounts reflect aone-for-two reverse stock split effective after the close of trading on November 4, 2016. |
(b) | Based on average shares outstanding. |
(c) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) | Not annualized. |
(e) | Annualized. |
(f) | Portfolio turnover rate excludesin-kind transactions. |
See notes to financial statements.
2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares MSCI Spain ETF | ||||||||||||||||||||||||
| Six Months Ended 02/28/19 (unaudited) | | | Year Ended 08/31/18 | | | Year Ended 08/31/17 | | | Year Ended 08/31/16 | | | Year Ended 08/31/15 | | | Year Ended 08/31/14 | | |||||||
| ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 29.85 | $ | 33.63 | $ | 26.49 | $ | 31.96 | $ | 40.61 | $ | 30.44 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income(a) | 0.45 | 0.99 | 0.94 | 1.00 | 1.32 | 1.80 | ||||||||||||||||||
Net realized and unrealized gain (loss)(b) | (0.62 | ) | (3.72 | ) | 7.19 | (5.40 | ) | (8.35 | ) | 9.53 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net increase (decrease) from investment operations | (0.17 | ) | (2.73 | ) | 8.13 | (4.40 | ) | (7.03 | ) | 11.33 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Distributions | ||||||||||||||||||||||||
From net investment income | (0.52 | ) | (1.05 | ) | (0.99 | ) | (1.07 | ) | (1.62 | ) | (1.16 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | (0.52 | ) | (1.05 | ) | (0.99 | ) | (1.07 | ) | (1.62 | ) | (1.16 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 29.16 | $ | 29.85 | $ | 33.63 | $ | 26.49 | $ | 31.96 | $ | 40.61 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | (0.44 | )%(c) | (8.28 | )% | 31.48 | % | (13.82 | )% | (17.63 | )% | 37.39 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.49 | %(d) | 0.47 | % | 0.49 | % | 0.48 | % | 0.48 | % | 0.48 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income | 3.22 | %(d) | 3.02 | % | 3.10 | % | 3.53 | % | 3.70 | % | 4.48 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 815,615 | $ | 875,442 | $ | 1,528,533 | $ | 599,944 | $ | 1,666,091 | $ | 2,473,038 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Portfolio turnover rate(e) | 6 | %(c) | 21 | % | 16 | % | 9 | % | 15 | % | 15 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Based on average shares outstanding. |
(b) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(c) | Not annualized. |
(d) | Annualized. |
(e) | Portfolio turnover rate excludesin-kind transactions. |
See notes to financial statements.
F I N A N C I A L H I G H L I G H T S |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares MSCI Switzerland ETF | ||||||||||||||||||||||||
| Six Months Ended 02/28/19 (unaudited) | | | Year Ended 08/31/18 | | | Year Ended 08/31/17 | | | Year Ended 08/31/16 | | | Year Ended 08/31/15 | | | Year Ended 08/31/14 | | |||||||
| ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 34.91 | $ | 34.27 | $ | 30.22 | $ | 31.90 | $ | 33.64 | $ | 29.36 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income (loss)(a) | (0.05 | ) | 0.66 | 0.69 | 0.81 | 0.83 | 0.80 | |||||||||||||||||
Net realized and unrealized gain (loss)(b) | (0.17 | ) | 0.79 | 4.11 | (1.70 | ) | (1.77 | ) | 4.27 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net increase (decrease) from investment operations | (0.22 | ) | 1.45 | 4.80 | (0.89 | ) | (0.94 | ) | 5.07 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Distributions | ||||||||||||||||||||||||
From net investment income | — | (0.81 | ) | (0.75 | ) | (0.79 | ) | (0.80 | ) | (0.79 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | — | (0.81 | ) | (0.75 | ) | (0.79 | ) | (0.80 | ) | (0.79 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 34.69 | $ | 34.91 | $ | 34.27 | $ | 30.22 | $ | 31.90 | $ | 33.64 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | (0.63 | )%(c) | 4.43 | % | 15.90 | % | (2.76 | )% | (2.92 | )% | 17.21 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.49 | %(d) | 0.47 | % | 0.49 | % | 0.48 | % | 0.48 | % | 0.48 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income (loss) | (0.32 | )%(d) | 1.91 | % | 2.18 | % | 2.68 | % | 2.49 | % | 2.41 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 901,945 | $ | 1,034,086 | $ | 1,259,258 | $ | 1,091,735 | $ | 1,200,164 | $ | 1,072,157 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Portfolio turnover rate(e) | 5 | %(c) | 9 | % | 13 | % | 6 | % | 7 | % | 5 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Based on average shares outstanding. |
(b) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(c) | Not annualized. |
(d) | Annualized. |
(e) | Portfolio turnover rate excludesin-kind transactions. |
See notes to financial statements.
2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements (unaudited)
1. | ORGANIZATION |
iShares, Inc. (the “Company”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Company is organized as a Maryland corporation and is authorized to have multiple series or portfolios.
These financial statements relate only to the following funds (each, a “Fund,” and collectively, the “Funds”):
iShares ETF | Diversification Classification | |
MSCI Eurozone | Diversified | |
MSCI Germany | Non-diversified | |
MSCI Italy | Non-diversified | |
MSCI Spain | Non-diversified | |
MSCI Switzerland | Non-diversified |
2. | 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 increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies.
Investment Transactions and Income Recognition:Investment 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 theex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities are reflected in tax reclaims receivable. 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. Upon notification from issuers, some of the dividend income received from a real estate investment trust may bere-designated as a return of capital or capital gain.Non-cash dividends, if any, are recognized on theex-dividend date and recorded asnon-cash dividend income at fair value. 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 innon-U.S. currencies are translated to U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of investments, 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 investments. Such fluctuations are reflected by the Funds as a component of net realized and unrealized gain (loss) from investments for financial reporting purposes. Each Fund reports realized currency gain (loss) 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 each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its statement 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, 2019, if any, are disclosed in the statement of assets and liabilities.
In-kind Redemptions:For financial reporting purposes,in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) topaid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or net asset value per share.
Distributions:Dividends and distributions paid by each Fund are recorded on theex-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.
Recent Accounting Standards:In August 2018, the Financial Accounting Standards Board issued Accounting Standards Update2018-13 “Changes to the Disclosure Requirements for Fair Value Measurement” which modifies disclosure requirements for fair value measurements. The guidance is effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years. Management is currently evaluating the impact of this guidance to the Funds.
Indemnifications:In the normal course of business, each Fund enters into contracts that contain a variety of representations that provide general indemnification. The Funds’ maximum exposure under these arrangements is unknown because it involves future potential claims against the Funds, which cannot be predicted with any certainty.
N O T E S T O F I N A N C I A L S T A T E M E N T S |
Notes to Financial Statements (unaudited) (continued)
3. | INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS |
Investment Valuation Policies:Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date 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. A fund determines the fair value of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Directors of the Company (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.
Fair Value Inputs and Methodologies:The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:
• | Equity investments traded on a recognized securities exchange are valued at that day’s last traded price or official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price. |
• | Investments inopen-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. |
If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of an investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and the cost approach. 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.
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, regular reviews 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 and large movements in market values, and reviews of any market related activity. The pricing of all Fair Valued Investments is subsequently reported to the Board on a quarterly basis.
Fair value pricing could result in a difference between the prices used to calculate a fund’s NAV and the prices used by the fund’s underlying index, which in turn could result in a difference between the fund’s performance and the performance of the fund’s underlying index.
Fair Value Hierarchy:Various inputs are used in determining the fair value of financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:
• | Level 1 — Unadjusted price quotations in active markets 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, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and |
• | Level 3 — Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, (including the Global Valuation Committee’s assumptions used in determining the fair value of financial instruments). |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of 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 into or out of an assigned level within the 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 a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.
4. | SECURITIES AND OTHER INVESTMENTS |
Securities Lending:Each Fund may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by an approved bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund or excess collateral is returned by the Fund, on the next business day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned
2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements (unaudited) (continued)
securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.
As of February 28, 2019, 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 BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, or its affiliates and is disclosed in the schedules of investments. Anynon-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, if any, are also disclosed in its schedule of investments. The market value of any securities on loan as of February 28, 2019 and the value of the related cash collateral are disclosed in the statements of assets and liabilities.
Securities lending transactions are entered into by a fund under Master Securities Lending Agreements (each, an “MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for thenon-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the 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 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, absent an event of default, the borrower can resell orre-pledge the loaned securities, and the fund can reinvest cash collateral received in connection with loaned securities.
The following table is a summary of the securities lending agreements by counterparty which are subject to offset under an MSLA as of February 28, 2019:
iShares ETF and Counterparty | | Market Value of Securities on Loan |
| | Cash Collateral Received | (a) | | Non-Cash Collateral Received |
| Net Amount | ||||||
MSCI Eurozone | ||||||||||||||||
Goldman Sachs & Co. | $ | 4,193,816 | $ | 4,193,816 | $ | — | $ | — | ||||||||
Jefferies LLC | 2,831,581 | 2,831,581 | — | — | ||||||||||||
JPMorgan Securities LLC | 11,643,966 | 11,643,966 | — | — | ||||||||||||
Morgan Stanley & Co. LLC | 25,582,330 | 25,582,330 | — | — | ||||||||||||
State Street Bank & Trust Company | 667,568 | 667,568 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 44,919,261 | $ | 44,919,261 | $ | — | $ | — | |||||||||
|
|
|
|
|
|
|
| |||||||||
MSCI Germany | ||||||||||||||||
Goldman Sachs & Co. | $ | 35,074,541 | $ | 35,074,541 | $ | — | $ | — | ||||||||
Merrill Lynch, Pierce, Fenner & Smith | 585,585 | 585,585 | — | — | ||||||||||||
Morgan Stanley & Co. LLC | 6,788,965 | 6,788,965 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 42,449,091 | $ | 42,449,091 | $ | — | $ | — | |||||||||
|
|
|
|
|
|
|
| |||||||||
MSCI Italy | ||||||||||||||||
Goldman Sachs & Co. | $ | 5,000,011 | $ | 5,000,011 | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
|
(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. |
The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, each Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned 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 market value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by each Fund.
5. | DERIVATIVE FINANCIAL INSTRUMENTS |
Futures Contracts: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 specific quantity of an underlying instrument at a set price on a future date. Depending on the terms of a contract, a futures contract is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date.
Upon entering into a futures contract, 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. Securities deposited as initial margin, if any, are designated in the schedule of investments and cash deposited, if any, is shown as cash pledged for futures contracts in the statement of assets and liabilities.
Pursuant to the contract, a 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 (“variation margin”). Variation margin is recorded as unrealized appreciation or depreciation and, if any, shown as variation margin receivable or payable on futures contracts in the statement of assets and liabilities. When the contract is closed, a realized gain or loss is recorded in the statement of operations equal to the difference between the notional
N O T E S T O F I N A N C I A L S T A T E M E N T S |
Notes to Financial Statements (unaudited) (continued)
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 involves the risk of an imperfect correlation in the movements in the price of futures contracts and the assets underlying such contracts.
6. | INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES |
Investment Advisory Fees: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:
Aggregate Average Daily Net Assets | Investment Advisory Fee | |||
First $7 billion | 0.59% | |||
Over $7 billion, up to and including $11 billion | 0.54 | |||
Over $11 billion, up to and including $24 billion | 0.49 | |||
Over $24 billion, up to and including $48 billion | 0.44 | |||
Over $48 billion, up to and including $72 billion | 0.40 | |||
Over $72 billion, up to and including $96 billion | 0.36 | |||
Over $96 billion | 0.32 |
Distributor:BlackRock Investments, LLC, an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.
Securities Lending:The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan in a money market fund managed by BFA, or its affiliates, however, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04% (the “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. Each Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.
Pursuant to the current securities lending agreement, each Fund retains 82% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees. Prior to January 1, 2019, the Fund retained 80% of securities lending income (which excludes collateral investment fees) and the amount retained was not 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 a specified threshold, each Fund, pursuant to the 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. Prior to January 1, 2019, the Fund was subject to the same terms under the previous securities lending fee arrangement.
The share of securities lending income earned by each Fund is shown as securities lending income — affiliated — net in its statement of operations. For the six months ended February 28, 2019, the Funds paid BTC the following amounts for securities lending agent services:
iShares ETF | Fees Paid to BTC | |||
MSCI Eurozone | $ | 85,859 | ||
MSCI Germany | 46,699 | |||
MSCI Italy | 2,487 | |||
MSCI Spain | 5,388 | |||
MSCI Switzerland | 3,377 |
Officers and Directors:Certain officers and/or directors of the Company are officers and/or directors of BlackRock or its affiliates.
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 Rule17a-7.
2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements (unaudited) (continued)
For the six months ended February 28, 2019, transactions executed by the Funds pursuant to Rule17a-7 under the 1940 Act were as follows:
iShares ETF | Purchases | Sales | ||||||
MSCI Eurozone | $ | 19,169,172 | $ | 10,253,551 | ||||
MSCI Germany | 5,780,153 | 2,576,917 | ||||||
MSCI Italy | 4,249,948 | 2,502,739 | ||||||
MSCI Spain | 9,975,321 | 7,641,630 | ||||||
MSCI Switzerland | 18,703,042 | 22,253,944 |
Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is shown as dividends — affiliated in the statement of operations.
A fund, in order to improve its portfolio liquidity and its ability to track its underlying index, may invest in shares of other iShares funds that invest in securities in the fund’s underlying index.
7. | PURCHASES AND SALES |
For the six months ended February 28, 2019, purchases and sales of investments, excludingin-kind transactions and short-term investments, were as follows:
iShares ETF | Purchases | Sales | ||||||
MSCI Eurozone | $ | 195,315,813 | $ | 229,161,356 | ||||
MSCI Germany | 138,423,504 | 141,868,761 | ||||||
MSCI Italy | 14,062,273 | 16,403,777 | ||||||
MSCI Spain | 50,846,472 | 57,944,630 | ||||||
MSCI Switzerland | 45,560,930 | 53,614,890 |
For the six months ended February 28, 2019,in-kind transactions were as follows:
iShares ETF | In-kind Purchases | In-kind Sales | ||||||
MSCI Eurozone | $ | — | $ | 2,420,916,264 | ||||
MSCI Germany | 53,714,876 | 720,807,182 | ||||||
MSCI Italy | 124,112,073 | 316,154,511 | ||||||
MSCI Spain | 283,911,296 | 328,756,593 | ||||||
MSCI Switzerland | 120,995,009 | 229,774,879 |
8. | 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.
Management has analyzed tax laws and regulations and their application to the Funds as of February 28, 2019, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.
As of August 31, 2018, 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 Eurozone | $ | 390,879,862 | $ | 30,230,739 | $ | 421,110,601 | ||||||
MSCI Germany | 113,101,718 | 32,215,954 | 145,317,672 | |||||||||
MSCI Italy | 183,331,855 | 9,459,662 | 192,791,517 | |||||||||
MSCI Spain | 145,451,894 | 8,619,903 | 154,071,797 | |||||||||
MSCI Switzerland | 37,199,053 | 6,955,758 | 44,154,811 |
(a) | Must be utilized prior to losses subject to expiration. |
A fund may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” Such fund may elect tomark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any suchmarked-to-market gains.
N O T E S T O F I N A N C I A L S T A T E M E N T S |
Notes to Financial Statements (unaudited) (continued)
As of February 28, 2019, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:
iShares ETF | Tax Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||
MSCI Eurozone | $ | 7,644,073,511 | $ | 365,776,330 | $ | (1,591,212,358 | ) | $ | (1,225,436,028) | |||||||
MSCI Germany | 3,051,903,410 | 170,128,723 | (841,652,879 | ) | (671,524,156) | |||||||||||
MSCI Italy | 261,840,891 | 6,662,909 | (57,631,473 | ) | (50,968,564) | |||||||||||
MSCI Spain | 1,080,574,486 | 17,191,607 | (281,753,853 | ) | (264,562,246) | |||||||||||
MSCI Switzerland | 932,405,398 | 55,242,761 | (94,637,783 | ) | (39,395,022) |
9. | PRINCIPAL RISKS |
In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. 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.
Investing in the securities ofnon-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.
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.
Concentration Risk:A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its schedule of investments.
When a fund concentrates its investments in issuers located in a single country or a limited number of countries, it assumes the risk that economic, regulatory, political and social conditions in that country or those countries may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.
When a fund concentrates its investments in securities within a single or limited number of market sectors, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.
10. | CAPITAL SHARE TRANSACTIONS |
Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable.
2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements (unaudited) (continued)
Transactions in capital shares were as follows:
Six Months Ended 02/28/19 | Year Ended 08/31/18 | |||||||||||||||
iShares ETF | Shares | Amount | Shares | Amount | ||||||||||||
MSCI Eurozone | ||||||||||||||||
Shares sold | — | $ | — | 68,400,000 | $ | 2,997,558,675 | ||||||||||
Shares redeemed | (65,700,000 | ) | (2,452,032,229 | ) | (155,400,000 | ) | (6,673,014,158 | ) | ||||||||
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|
|
|
|
|
| |||||||||
Net decrease | (65,700,000 | ) | $ | (2,452,032,229 | ) | (87,000,000 | ) | $ | (3,675,455,483 | ) | ||||||
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|
|
|
|
|
| |||||||||
MSCI Germany | ||||||||||||||||
Shares sold | 2,100,000 | $ | 54,329,586 | 13,200,000 | $ | 424,091,640 | ||||||||||
Shares redeemed | (26,400,000 | ) | (728,585,865 | ) | (59,400,000 | ) | (1,925,166,681 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net decrease | (24,300,000 | ) | $ | (674,256,279 | ) | (46,200,000 | ) | $ | (1,501,075,041 | ) | ||||||
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| |||||||||
MSCI Italy | ||||||||||||||||
Shares sold | 5,025,000 | $ | 128,408,189 | 3,675,000 | $ | 113,455,292 | ||||||||||
Shares redeemed | (12,375,000 | ) | (322,500,074 | ) | (16,575,000 | ) | (509,638,308 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net decrease | (7,350,000 | ) | $ | (194,091,885 | ) | (12,900,000 | ) | $ | (396,183,016 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
MSCI Spain | ||||||||||||||||
Shares sold | 11,175,000 | $ | 320,272,725 | 19,125,000 | $ | 614,707,341 | ||||||||||
Shares redeemed | (12,525,000 | ) | (350,790,831 | ) | (35,250,000 | ) | (1,129,819,049 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net decrease | (1,350,000 | ) | $ | (30,518,106 | ) | (16,125,000 | ) | $ | (515,111,708 | ) | ||||||
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|
|
|
| |||||||||
MSCI Switzerland | ||||||||||||||||
Shares sold | 3,750,000 | $ | 125,327,851 | 8,625,000 | $ | 295,601,568 | ||||||||||
Shares redeemed | (7,375,000 | ) | (240,140,209 | ) | (15,750,000 | ) | (541,911,664 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net decrease | (3,625,000 | ) | $ | (114,812,358 | ) | (7,125,000 | ) | $ | (246,310,096 | ) | ||||||
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The consideration for the purchase of Creation Units of a fund in the Company generally consists of thein-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 shares sold in the table above.
From time to time, settlement of securities related toin-kind contributions orin-kind redemptions may be delayed. In such cases, securities related toin-kind transactions are reflected as a receivable or a payable in the statement of assets and liabilities.
11. | 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 recent favorable determinations issued by the Finnish authorities. Professional fees associated with the filing of these claims that result in the recovery of foreign withholding taxes have been approved by the Board as appropriate expenses of the Fund. Withholding tax claims may be for the current year and potentially for a limited number of prior calendar years, depending upon statutes of limitation on taxes. The Fund continues to evaluate developments in Finland for potential impact to the receivables and payables recorded. Foreign withholding tax claims and associated payable amounts are disclosed in the statement of assets and liabilities.
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.
12. | LEGAL PROCEEDINGS |
On June 16, 2016, investors in certain iShares funds (iShares Core S&PSmall-Cap ETF, iShares Russell 1000 Growth ETF, iShares Core S&P 500 ETF, iShares RussellMid-Cap Growth ETF, iShares RussellMid-Cap ETF, iShares RussellMid-Cap Value ETF, iShares Select Dividend ETF, iShares MorningstarMid-Cap ETF, iShares MorningstarLarge-Cap ETF, iShares U.S. Aerospace & Defense ETF and iShares U.S. Preferred Stock ETF) filed a 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
N O T E S T O F I N A N C I A L S T A T E M E N T S |
Notes to Financial Statements (unaudited) (continued)
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.
13. | REGULATIONS-X AMENDMENTS |
On August 17, 2018, the SEC adopted amendments to certain disclosure requirements in Securities Act ReleaseNo. 33-10532,Disclosure Update and Simplification. The Funds have adopted the amendments pertinent to RegulationS-X in this shareholder report. The amendments impacted certain disclosure presentation on the statement of assets and liabilities, statement of changes in net assets and notes to the financial statements.
Prior year distribution information and undistributed (distributions in excess of) net investment income in the statement of changes in net assets has been modified to conform to the current year presentation in accordance with the RegulationS-X changes.
Distributions for the year ended August 31, 2018 were classified as follows:
iShares ETF | Net Investment Income | |||
MSCI Eurozone | $ | 344,359,197 | ||
MSCI Germany | 97,497,098 | |||
MSCI Italy | 17,400,893 | |||
MSCI Spain | 31,909,333 | |||
MSCI Switzerland | 22,803,569 |
Undistributed (distributions in excess of) net investment income as of August 31, 2018 are as follows:
iShares ETF | Undistributed (distributions in excess of) net investment income | |||
MSCI Eurozone | $ | 23,152,634 | ||
MSCI Germany | (489,869 | ) | ||
MSCI Italy | 2,341,634 | |||
MSCI Spain | 9,976,406 | |||
MSCI Switzerland | (455,027 | ) |
14. | SUBSEQUENT EVENTS |
Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.
2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Glossary of Terms Used in this Report
Portfolio Abbreviations — Equity | ||
ADR | American Depositary Receipt | |
NVS | Non-Voting Shares |
G L O S S A R Y O F T E R M S U S E D I N T H I S R E P O R T |
For more information visit www.iShares.com or call1-800-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.
©2019 BlackRock, Inc. All rights reserved.iSHARESandBLACKROCKare registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners. | ||||
FEBRUARY 28, 2019
2019 SEMI-ANNUAL REPORT (UNAUDITED) |
iShares Trust
▶ | iShares ESG MSCI EAFE ETF | ESGD | NASDAQ |
▶ | iShares ESG MSCI USA ETF | ESGU | NASDAQ |
▶ | iShares ESG MSCI USA Small-Cap ETF | ESML | Cboe BZX |
▶ | iShares MSCI Global Impact ETF | SDG | NASDAQ |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of each Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
You may elect to receive all future reports in paper free of charge. If you hold accounts through a financial intermediary, you can follow the instructions included with this disclosure, if applicable, or contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. Please note that not all financial intermediaries may offer this service. Your election to receive reports in paper will apply to all funds held with your financial intermediary.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive electronic delivery of shareholder reports and other communications by contacting your financial intermediary. Please note that not all financial intermediaries may offer this service.
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Fund Summary as of February 28, 2019 | iShares® ESG MSCI EAFE ETF |
Investment Objective
TheiShares ESG MSCI EAFE ETF(the “Fund”) (formerly the iShares MSCI EAFE ESG Optimized ETF) 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 Extended 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.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||
6 Months | 1 Year | Since Inception | 1 Year | Since Inception | ||||||||||||||||||||
Fund NAV | (3.65 | )% | (5.59 | )% | 10.21 | % | (5.59 | )% | 29.69 | % | ||||||||||||||
Fund Market | (3.57 | ) | (5.30 | ) | 10.22 | (5.30 | ) | 29.73 | ||||||||||||||||
Index(a) | (3.64 | ) | (5.57 | ) | 10.38 | (5.57 | ) | 30.21 | ||||||||||||||||
MSCI EAFE ESG Focus Index | (3.65 | ) | (5.66 | ) | 10.34 | (5.66 | ) | 30.09 | ||||||||||||||||
MSCI EAFE Extended ESG Focus Index(b) | (3.64 | ) | N/A | N/A | N/A | N/A |
The inception date of the Fund was 6/28/16. The first day of secondary market trading was 6/30/16.
(a) | Index performance through May 31, 2018 reflects the performance of the MSCI EAFE ESG Focus Index. Index performance beginning on June 1, 2018 reflects the performance of the MSCI EAFE Extended ESG Focus Index, which, effective as of June 1, 2018, replaced the MSCI EAFE ESG Focus Index as the underlying index of the Fund. |
(b) | The inception date of the MSCI EAFE Extended ESG Focus Index was March 27, 2018. The cumulative total return of this index for the period March 27, 2018 through February 28, 2019 was -3.98%. |
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 9 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
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| Beginning Account Value (09/01/18) | | Ending Account Value (02/28/19) | | Expenses Paid During the Period | (a) | | Beginning Account Value (09/01/18) | | Ending Account Value (02/28/19) | | Expenses Paid During the Period | (a) | | Annualized Expense Ratio | |||||||||||||||
$ | 1,000.00 | $ | 963.50 | $ | 0.97 | $ | 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 9 for more information. |
Portfolio Information
ALLOCATION BY SECTOR
Sector | | Percent of Total Investments | (a) | |
Financials | 19.9 | % | ||
Industrials | 14.6 | |||
Consumer Staples | 11.5 | |||
Consumer Discretionary | 10.5 | |||
Health Care | 10.4 | |||
Materials | 8.0 | |||
Information Technology | 6.2 | |||
Energy | 6.2 | |||
Communication Services | 5.3 | |||
Utilities | 3.7 | |||
Real Estate | 3.7 |
ALLOCATION BY COUNTRY
Country | | Percent of Total Investments | (a) | |
Japan | 23.8 | % | ||
United Kingdom | 16.8 | |||
France | 11.3 | |||
Switzerland | 8.6 | |||
Germany | 8.5 | |||
Australia | 7.1 | |||
Hong Kong | 4.0 | |||
Netherlands | 3.3 | |||
Spain | 3.2 | |||
Sweden | 2.7 | |||
Italy | 2.1 | |||
Denmark | 1.8 | |||
Singapore | 1.4 | |||
Finland | 1.1 | |||
Belgium | 1.0 | |||
Norway | 1.0 | |||
Other (each representing less than 1%) | 2.3 |
(a) | Excludes money market funds. |
F U N D S U M M A R Y | 5 |
Fund Summary as of February 28, 2019 | iShares® ESG MSCI USA ETF |
Investment Objective
TheiShares ESG MSCI USA ETF(the “Fund”) (formerly the iShares MSCI USA ESG Optimized ETF) 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 Extended 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.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||
6 Months | 1 Year | Since Inception | 1 Year | Since Inception | ||||||||||||||||||||
Fund NAV | (3.26 | )% | 5.00 | % | 13.43 | % | 5.00 | % | 32.74 | % | ||||||||||||||
Fund Market | (3.21 | ) | 5.05 | 13.47 | 5.05 | 32.84 | ||||||||||||||||||
Index(a) | (3.21 | ) | 5.15 | 13.66 | 5.15 | 33.35 | ||||||||||||||||||
MSCI USA ESG Focus Index | (3.21 | ) | 5.08 | 13.63 | 5.08 | 33.27 | ||||||||||||||||||
MSCI USA Extended ESG Focus Index(b) | (3.21 | ) | N/A | N/A | N/A | N/A |
The inception date of the Fund was 12/1/16. The first day of secondary market trading was 12/2/16.
(a) | Index performance through May 31, 2018 reflects the performance of the MSCI USA ESG Focus Index. Index performance beginning on June 1, 2018 reflects the performance of the MSCI USA Extended ESG Focus Index, which, effective as of June 1, 2018, replaced the MSCI USA ESG Focus Index as the underlying index of the Fund. |
(b) | The inception date of the MSCI USA Extended ESG Focus Index was March 27, 2018. The cumulative total return of this index for the period March 27, 2018 through February 28, 2019 was 8.84%. |
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 9 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
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| Beginning Account Value (09/01/18) | | Ending Account Value (02/28/19) | | Expenses Paid During the Period | (a) | | Beginning Account Value (09/01/18) | | Ending Account Value (02/28/19) | | Expenses Paid During the Period | (a) | | Annualized Expense Ratio | |||||||||||||||
$ | 1,000.00 | $ | 967.40 | $ | 0.73 | $ | 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 9 for more information. |
Portfolio Information
ALLOCATION BY SECTOR
Sector | | Percent of Total Investments | (a) | |
Information Technology | 21.9 | % | ||
Health Care | 14.3 | |||
Financials | 12.7 | |||
Consumer Discretionary | 10.0 | |||
Industrials | 10.0 | |||
Communication Services | 9.8 | |||
Consumer Staples | 6.8 | |||
Energy | 4.9 | |||
Utilities | 3.4 | |||
Real Estate | 3.4 | |||
Materials | 2.8 |
TEN LARGEST HOLDINGS
Security | | Percent of Total Investments | (a) | |
Microsoft Corp. | 3.7 | % | ||
Apple Inc. | 3.4 | |||
Amazon. com Inc. | 2.8 | |||
Alphabet Inc., Class C | 1.6 | |||
Facebook Inc., Class A | 1.5 | |||
Johnson & Johnson | 1.5 | |||
JPMorgan Chase & Co. | 1.5 | |||
Exxon Mobil Corp. | 1.4 | |||
Alphabet Inc., Class A | 1.4 | |||
Bank of America Corp. | 1.2 |
(a) | Excludes money market funds. |
6 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Fund Summary as of February 28, 2019 | iShares® ESG MSCI USA Small-Cap ETF |
Investment Objective
TheiShares ESG MSCI USA Small-Cap ETF(the “Fund”) (formerly the iShares MSCI USA Small-Cap ESG Optimized ETF) seeks to track the investment results of an optimized index designed to produce investment results comparable to a capitalization weighted index of small-capitalization U.S. companies, while reflecting a higher allocation to those companies with favorable environmental, social and governance (“ESG”) profiles, as represented by the MSCI USA Small Cap Extended 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.
Performance
Cumulative Total Returns | ||||||||
6 Months | Since Inception | |||||||
Fund NAV | (6.62 | )% | 5.67 | % | ||||
Fund Market | (6.58 | ) | 5.86 | |||||
Index | (6.58 | ) | 5.86 |
The inception date of the Fund was 4/10/18. The first day of secondary market trading was 4/12/18.
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 9 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
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| Beginning Account Value (09/01/18) | | Ending Account Value (02/28/19) | | Expenses Paid During the Period | (a) | | Beginning Account Value (09/01/18) | | Ending Account Value (02/28/19) | | Expenses Paid During the Period | (a) | | Annualized Expense Ratio | |||||||||||||||
$ | 1,000.00 | $ | 933.80 | $ | 0.82 | $ | 1,000.00 | $ | 1,024.00 | $ | 0.85 | 0.17 | % |
(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 9 for more information. |
Portfolio Information
ALLOCATION BY SECTOR
Sector | | Percent of Total Investments | (a) | |
Information Technology | 16.7 | % | ||
Industrials | 16.5 | |||
Financials | 14.5 | |||
Health Care | 14.2 | |||
Consumer Discretionary | 11.4 | |||
Real Estate | 9.9 | |||
Materials | 4.4 | |||
Energy | 3.9 | |||
Utilities | 3.1 | |||
Communication Services | 2.7 | |||
Consumer Staples | 2.7 |
TEN LARGEST HOLDINGS
Security | | Percent of Total Investments | (a) | |
Bright Horizons Family Solutions Inc. | 0.6 | % | ||
Kilroy Realty Corp. | 0.6 | |||
FactSet Research Systems Inc. | 0.5 | |||
Douglas Emmett Inc. | 0.5 | |||
Bank of Hawaii Corp. | 0.5 | |||
Brandywine Realty Trust | 0.4 | |||
Cullen/Frost Bankers Inc. | 0.4 | |||
Janus Henderson Group PLC | 0.4 | |||
National Instruments Corp. | 0.4 | |||
Teradata Corp. | 0.4 |
(a) | Excludes money market funds. |
F U N D S U M M A R Y | 7 |
Fund Summary as of February 28, 2019 | iShares® MSCI Global Impact ETF |
Investment Objective
TheiShares 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.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||
6 Months | 1 Year | Since Inception | 1 Year | Since Inception | ||||||||||||||||||||
Fund NAV | (0.05 | )% | 0.11 | % | 8.52 | % | 0.11 | % | 26.39 | % | ||||||||||||||
Fund Market | 0.34 | 0.58 | 8.73 | 0.58 | 27.07 | |||||||||||||||||||
Index | 0.07 | 0.28 | 8.85 | 0.28 | 27.47 |
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 9 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
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| Beginning Account Value (09/01/18) | | Ending Account Value (02/28/19) | | Expenses Paid During the Period | (a) | | Beginning Account Value (09/01/18) | | Ending Account Value |
| | Expenses Paid During the Period | (a) | | Annualized Expense Ratio | ||||||||||||||
$ | 1,000.00 | $ | 999.50 | $ | 2.43 | $ | 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 9 for more information. |
Portfolio Information
ALLOCATION BY SECTOR
Sector | | Percent of Total Investments | (a) | |
Industrials | 20.0 | % | ||
Consumer Staples | 19.7 | |||
Health Care | 19.6 | |||
Consumer Discretionary | 12.1 | |||
Materials | 8.3 | |||
Information Technology | 6.7 | |||
Real Estate | 6.0 | |||
Utilities | 4.8 | |||
Communication Services | 2.8 |
ALLOCATION BY COUNTRY
Country | | Percent of Total Investments | (a) | |
United States | 33.1 | % | ||
Japan | 13.1 | |||
United Kingdom | 11.4 | |||
China | 8.7 | |||
France | 6.0 | |||
Denmark | 5.4 | |||
Belgium | 4.2 | |||
Taiwan | 4.2 | |||
Germany | 3.1 | |||
Hong Kong | 2.3 | |||
Sweden | 1.5 | |||
South Korea | 1.5 | |||
Ireland | 1.1 | |||
Spain | 1.1 | |||
Other (each representing less than 1%) | 3.3 |
(a) | Excludes money market funds. |
8 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
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 ask on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not trade in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary market trading in shares of the fund, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.
As a shareholder of your Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested at the beginning of the period (or from the commencement of operations if less than 6 months) and held through the end of the period, is intended to help you understand your ongoing costs (in dollars and cents) of investing in your Fund and to compare these costs with the ongoing costs of investing in other funds.
Actual Expenses— The table provides information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. To estimate the expenses that you paid on your account over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During the Period.”
Hypothetical Example for Comparison Purposes— The table also provides information about hypothetical account values and hypothetical expenses based on your Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions 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.
A B O U T F U N D P E R F O R M A N C E / S H A R E H O L D E R E X P E N S E S | 9 |
Schedule of Investments (unaudited) February 28, 2019 | iShares® ESG MSCI EAFE ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Australia — 7.0% | ||||||||
Alumina Ltd. | 345,356 | $ | 626,544 | |||||
Amcor Ltd./Australia | 66,792 | 715,164 | ||||||
AMP Ltd. | 416,669 | 699,596 | ||||||
APA Group | 120,676 | 859,408 | ||||||
Aristocrat Leisure Ltd. | 36,406 | 637,684 | ||||||
ASX Ltd. | 15,624 | 775,542 | ||||||
Aurizon Holdings Ltd. | 192,132 | 617,849 | ||||||
Australia & New Zealand Banking Group Ltd. | 140,512 | 2,799,084 | ||||||
BlueScope Steel Ltd. | 73,225 | 701,211 | ||||||
Brambles Ltd. | 145,534 | 1,217,632 | ||||||
Caltex Australia Ltd. | 32,062 | 652,381 | ||||||
Coca-Cola Amatil Ltd. | 105,590 | 598,722 | ||||||
Cochlear Ltd. | 4,992 | 605,541 | ||||||
Coles Group Ltd.(a) | 70,720 | 570,055 | ||||||
Commonwealth Bank of Australia | 80,080 | 4,213,148 | ||||||
CSL Ltd. | 23,455 | 3,233,285 | ||||||
Dexus | 93,235 | 797,311 | ||||||
Fortescue Metals Group Ltd. | 140,296 | 604,870 | ||||||
Goodman Group | 65,208 | 593,821 | ||||||
GPT Group (The) | 149,115 | 620,614 | ||||||
Insurance Australia Group Ltd. | 132,822 | 694,547 | ||||||
Lendlease Group | 65,900 | 603,873 | ||||||
Macquarie Group Ltd. | 20,384 | 1,865,563 | ||||||
Mirvac Group | 424,699 | 776,531 | ||||||
National Australia Bank Ltd. | 126,913 | 2,269,045 | ||||||
Newcrest Mining Ltd. | 44,349 | 767,347 | ||||||
Origin Energy Ltd.(a) | 139,090 | 728,313 | ||||||
Ramsay Health Care Ltd. | 15,110 | 696,386 | ||||||
Rio Tinto Ltd. | 24,586 | 1,682,003 | ||||||
Santos Ltd. | 134,074 | 660,078 | ||||||
Stockland | 350,719 | 873,317 | ||||||
Sydney Airport | 175,288 | 897,902 | ||||||
Tabcorp Holdings Ltd. | 198,774 | 667,492 | ||||||
Telstra Corp. Ltd. | 286,781 | 638,615 | ||||||
Transurban Group | 204,366 | 1,813,091 | ||||||
Treasury Wine Estates Ltd. | 58,058 | 618,754 | ||||||
Wesfarmers Ltd. | 33,536 | 791,648 | ||||||
Westpac Banking Corp. | 184,106 | 3,531,281 | ||||||
Woodside Petroleum Ltd. | 69,320 | 1,787,767 | ||||||
Woolworths Group Ltd. | 30,485 | 621,811 | ||||||
WorleyParsons Ltd. | 56,698 | 601,436 | ||||||
|
| |||||||
45,726,262 | ||||||||
Austria — 0.3% | ||||||||
OMV AG | 26,170 | 1,378,836 | ||||||
voestalpine AG | 21,866 | 677,746 | ||||||
|
| |||||||
2,056,582 | ||||||||
Belgium — 1.0% | ||||||||
Anheuser-Busch InBev SA/NV | 40,160 | 3,134,806 | ||||||
KBC Group NV | 18,036 | 1,337,409 | ||||||
Solvay SA | 6,671 | 747,625 | ||||||
UCB SA | 9,295 | 779,845 | ||||||
Umicore SA | 15,745 | 681,296 | ||||||
|
| |||||||
6,680,981 | ||||||||
Denmark — 1.8% | ||||||||
AP Moller - Maersk A/S, Class A | 489 | 629,506 | ||||||
Carlsberg A/S, Class B | 7,091 | 859,928 | ||||||
Chr Hansen Holding A/S | 6,685 | 681,733 | ||||||
Coloplast A/S, Class B | 8,749 | 872,991 |
Security | Shares | Value | ||||||
Denmark (continued) | ||||||||
Genmab A/S(a) | 4,273 | $ | 739,198 | |||||
Novo Nordisk A/S, Class B | 99,128 | 4,869,183 | ||||||
Novozymes A/S, Class B | 13,988 | 635,750 | ||||||
Orsted A/S(b) | 13,857 | 1,006,659 | ||||||
Pandora A/S | 12,833 | 674,133 | ||||||
Vestas Wind Systems A/S | 10,868 | 905,625 | ||||||
|
| |||||||
11,874,706 | ||||||||
Finland — 1.0% | ||||||||
Fortum OYJ | 28,288 | 628,770 | ||||||
Kone OYJ, Class B | 13,108 | 641,374 | ||||||
Neste OYJ | 10,994 | 1,057,845 | ||||||
Nokia OYJ | 316,377 | 1,915,135 | ||||||
Nordea Bank Abp | 81,248 | 737,250 | ||||||
UPM-Kymmene OYJ | 37,481 | 1,131,864 | ||||||
Wartsila OYJ Abp | 42,557 | 692,004 | ||||||
|
| |||||||
6,804,242 | ||||||||
France — 11.3% | ||||||||
Air Liquide SA | 15,026 | 1,876,124 | ||||||
Airbus SE | 23,132 | 2,992,272 | ||||||
Atos SE | 8,040 | 772,878 | ||||||
AXA SA | 128,476 | 3,261,662 | ||||||
BNP Paribas SA | 50,158 | 2,573,314 | ||||||
Bouygues SA | 18,221 | 689,880 | ||||||
Capgemini SE | 9,226 | 1,105,194 | ||||||
Carrefour SA | 30,693 | 629,102 | ||||||
Cie. de Saint-Gobain | 27,485 | 990,869 | ||||||
Cie. Generale des Etablissements Michelin SCA | 11,073 | 1,330,232 | ||||||
CNP Assurances | 30,005 | 694,268 | ||||||
Credit Agricole SA | 52,849 | 675,933 | ||||||
Danone SA | 45,057 | 3,403,156 | ||||||
Dassault Systemes SE | 6,466 | 947,229 | ||||||
Edenred | 15,293 | 679,500 | ||||||
Electricite de France SA | 41,124 | 597,993 | ||||||
Engie SA | 65,428 | 987,163 | ||||||
EssilorLuxottica SA | 13,997 | 1,696,642 | ||||||
Gecina SA | 5,536 | 822,022 | ||||||
Getlink SE | 45,181 | 667,790 | ||||||
Imerys SA | 11,444 | 651,304 | ||||||
JCDecaux SA | 19,827 | 611,837 | ||||||
Kering SA | 4,208 | 2,300,472 | ||||||
L’Oreal SA | 16,705 | 4,220,980 | ||||||
LVMH Moet Hennessy Louis Vuitton SE | 13,077 | 4,497,018 | ||||||
Natixis SA | 151,679 | 834,568 | ||||||
Orange SA | 135,872 | 2,079,403 | ||||||
Pernod Ricard SA | 12,866 | 2,218,089 | ||||||
Peugeot SA | 43,861 | 1,116,760 | ||||||
Renault SA | 10,974 | 752,640 | ||||||
Rexel SA | 52,580 | 656,207 | ||||||
Safran SA | 11,549 | 1,576,787 | ||||||
Sanofi | 59,245 | 4,958,480 | ||||||
Schneider Electric SE | 37,250 | 2,902,143 | ||||||
SES SA | 31,667 | 636,986 | ||||||
Societe Generale SA | 27,561 | 847,361 | ||||||
STMicroelectronics NV | 44,777 | 732,692 | ||||||
Teleperformance | 5,354 | 957,167 | ||||||
Thales SA | 5,555 | 684,733 | ||||||
TOTAL SA | 132,968 | 7,569,023 | ||||||
Unibail-Rodamco-Westfield | 10,515 | 1,700,228 | ||||||
Valeo SA | 21,592 | 682,284 |
10 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® ESG MSCI EAFE ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
France (continued) | ||||||||
Vinci SA | 10,423 | $ | 996,019 | |||||
Vivendi SA | 44,976 | 1,316,205 | ||||||
Wendel SA | 5,130 | 647,826 | ||||||
|
| |||||||
73,540,435 | ||||||||
Germany — 8.5% | ||||||||
adidas AG | 10,101 | 2,456,830 | ||||||
Allianz SE, Registered | 25,622 | 5,706,784 | ||||||
BASF SE | 49,847 | 3,802,406 | ||||||
Bayerische Motoren Werke AG | 18,678 | 1,580,473 | ||||||
Beiersdorf AG | 6,722 | 624,288 | ||||||
Brenntag AG | 13,269 | 658,771 | ||||||
Continental AG | 5,543 | 908,902 | ||||||
Covestro AG(b) | 10,920 | 623,471 | ||||||
Daimler AG, New, Registered | 1,668 | 100,020 | ||||||
Daimler AG, Registered | 41,767 | 2,504,515 | ||||||
Deutsche Bank AG, Registered | 90,588 | 841,828 | ||||||
Deutsche Boerse AG | 12,815 | 1,621,221 | ||||||
Deutsche Post AG, Registered | 64,961 | 2,020,891 | ||||||
Deutsche Telekom AG, Registered | 77,534 | 1,278,852 | ||||||
Deutsche Wohnen SE | 22,084 | 1,031,030 | ||||||
E.ON SE | 117,590 | 1,296,820 | ||||||
Fraport AG Frankfurt Airport Services Worldwide | 8,143 | 654,820 | ||||||
Fresenius Medical Care AG & Co. KGaA | 9,674 | 758,768 | ||||||
Fresenius SE & Co. KGaA | 17,102 | 962,603 | ||||||
HeidelbergCement AG | 12,402 | 912,857 | ||||||
Henkel AG & Co. KGaA | 15,393 | 1,447,814 | ||||||
HOCHTIEF AG | 4,403 | 698,910 | ||||||
Infineon Technologies AG | 54,212 | 1,191,721 | ||||||
Merck KGaA | 18,047 | 1,865,541 | ||||||
MTU Aero Engines AG | 3,785 | 812,431 | ||||||
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen, Registered | 8,166 | 1,925,746 | ||||||
OSRAM Licht AG | 14,008 | 607,730 | ||||||
ProSiebenSat.1 Media SE | 35,409 | 646,737 | ||||||
Puma SE | 1,248 | 704,154 | ||||||
QIAGEN NV(a) | 19,411 | 743,113 | ||||||
RWE AG | 25,541 | 624,133 | ||||||
SAP SE | 60,284 | 6,466,399 | ||||||
Siemens AG, Registered | 47,689 | 5,220,195 | ||||||
thyssenkrupp AG | 43,695 | 654,285 | ||||||
Vonovia SE | 12,376 | 600,907 | ||||||
Wirecard AG | 5,367 | 736,424 | ||||||
|
| |||||||
55,292,390 | ||||||||
Hong Kong — 4.0% | ||||||||
AIA Group Ltd. | 561,600 | 5,616,143 | ||||||
BOC Hong Kong Holdings Ltd. | 312,000 | 1,303,677 | ||||||
CK Asset Holdings Ltd. | 104,000 | 863,156 | ||||||
CK Hutchison Holdings Ltd. | 52,000 | 553,466 | ||||||
CLP Holdings Ltd. | 135,500 | 1,605,327 | ||||||
Galaxy Entertainment Group Ltd. | 104,000 | 738,618 | ||||||
Hang Seng Bank Ltd. | 72,800 | 1,803,817 | ||||||
Hong Kong Exchanges & Clearing Ltd. | 68,100 | 2,347,558 | ||||||
Hysan Development Co. Ltd. | 104,000 | 549,160 | ||||||
Link REIT | 104,000 | 1,175,826 | ||||||
Melco Resorts & Entertainment Ltd., ADR | 29,962 | 690,324 | ||||||
MTR Corp. Ltd. | 314,000 | 1,804,046 | ||||||
Sands China Ltd. | 208,000 | 1,038,702 | ||||||
Sun Hung Kai Properties Ltd. | 104,000 | 1,722,337 | ||||||
Swire Pacific Ltd., Class A | 104,000 | 1,236,770 |
Security | Shares | Value | ||||||
Hong Kong (continued) | ||||||||
Swire Properties Ltd. | 291,200 | $ | 1,168,539 | |||||
Techtronic Industries Co. Ltd. | 104,000 | 694,897 | ||||||
WH Group Ltd.(b) | 624,000 | 554,063 | ||||||
Wharf Real Estate Investment Co. Ltd. | 104,000 | 730,668 | ||||||
|
| |||||||
26,197,094 | ||||||||
Ireland — 0.6% | ||||||||
CRH PLC | 59,765 | 1,894,635 | ||||||
Kerry Group PLC, Class A | 10,001 | 1,030,627 | ||||||
Paddy Power Betfair PLC | 7,845 | 635,144 | ||||||
|
| |||||||
3,560,406 | ||||||||
Israel — 0.5% | ||||||||
Bank Hapoalim BM | 193,408 | 1,331,860 | ||||||
Bank Leumi Le-Israel BM | 95,732 | 633,343 | ||||||
Teva Pharmaceutical Industries Ltd., ADR(a) | 46,334 | 779,801 | ||||||
Wix.com Ltd.(a) | 5,616 | 613,548 | ||||||
|
| |||||||
3,358,552 | ||||||||
Italy — 2.1% | ||||||||
Assicurazioni Generali SpA | 67,327 | 1,203,262 | ||||||
CNH Industrial NV | 75,970 | 823,893 | ||||||
Enel SpA | 437,903 | 2,652,767 | ||||||
Eni SpA | 117,261 | 2,025,043 | ||||||
Ferrari NV | 5,096 | 656,589 | ||||||
Fiat Chrysler Automobiles NV(a) | 43,319 | 640,368 | ||||||
Intesa Sanpaolo SpA | 1,212,266 | 2,994,105 | ||||||
Snam SpA | 138,879 | 687,125 | ||||||
Terna Rete Elettrica Nazionale SpA | 107,545 | 669,620 | ||||||
UniCredit SpA | 73,238 | 997,918 | ||||||
|
| |||||||
13,350,690 | ||||||||
Japan — 23.7% | ||||||||
Aeon Co. Ltd. | 52,000 | 1,095,868 | ||||||
Ajinomoto Co. Inc. | 41,600 | 629,307 | ||||||
Alfresa Holdings Corp. | 20,900 | 605,484 | ||||||
Asahi Group Holdings Ltd. | 20,800 | 898,182 | ||||||
Asahi Kasei Corp. | 104,100 | 1,135,262 | ||||||
Astellas Pharma Inc. | 145,600 | 2,247,697 | ||||||
Benesse Holdings Inc. | 20,800 | 565,217 | ||||||
Bridgestone Corp. | 31,200 | 1,231,240 | ||||||
Canon Inc. | 31,200 | 897,154 | ||||||
Central Japan Railway Co. | 10,400 | 2,333,273 | ||||||
Chugai Pharmaceutical Co. Ltd. | 20,800 | 1,414,445 | ||||||
Daifuku Co. Ltd. | 10,500 | 515,002 | ||||||
Dai-ichi Life Holdings Inc. | 41,600 | 629,867 | ||||||
Daiichi Sankyo Co. Ltd. | 31,200 | 1,167,898 | ||||||
Daikin Industries Ltd. | 20,800 | 2,259,001 | ||||||
Daiwa House Industry Co. Ltd. | 41,800 | 1,293,577 | ||||||
Denso Corp. | 41,600 | 1,787,021 | ||||||
East Japan Railway Co. | 10,400 | 995,904 | ||||||
Eisai Co. Ltd. | 20,800 | 1,718,074 | ||||||
FANUC Corp. | 4,875 | 807,537 | ||||||
Fast Retailing Co. Ltd. | 2,400 | 1,124,542 | ||||||
FUJIFILM Holdings Corp. | 20,800 | 932,562 | ||||||
Fujitsu Ltd. | 10,400 | 701,524 | ||||||
Hankyu Hanshin Holdings Inc. | 20,800 | 754,869 | ||||||
Hitachi Chemical Co. Ltd. | 31,200 | 566,712 | ||||||
Hitachi Ltd. | 41,600 | 1,246,281 | ||||||
Hitachi Metals Ltd. | 83,300 | 848,565 | ||||||
Honda Motor Co. Ltd. | 114,400 | 3,240,237 | ||||||
Hoya Corp. | 20,800 | 1,271,506 | ||||||
Idemitsu Kosan Co. Ltd. | 20,800 | 738,052 |
S C H E D U L E O F I N V E S T M E N T S | 11 |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® ESG MSCI EAFE ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Japan (continued) | ||||||||
Inpex Corp. | 135,200 | $ | 1,315,322 | |||||
ITOCHU Corp. | 72,800 | 1,306,633 | ||||||
Japan Post Holdings Co. Ltd. | 52,000 | 632,950 | ||||||
JFE Holdings Inc. | 31,200 | 544,150 | ||||||
JXTG Holdings Inc. | 312,200 | 1,460,317 | ||||||
Kajima Corp. | 41,600 | 615,853 | ||||||
Kansai Electric Power Co. Inc. (The) | 52,000 | 777,991 | ||||||
Kao Corp. | 20,800 | 1,574,014 | ||||||
Kawasaki Heavy Industries Ltd. | 20,800 | 534,387 | ||||||
KDDI Corp. | 124,800 | 3,014,057 | ||||||
Keio Corp. | 10,400 | 610,995 | ||||||
Keyence Corp. | 3,900 | 2,274,766 | ||||||
Kikkoman Corp. | 10,400 | 517,571 | ||||||
Kirin Holdings Co. Ltd. | 52,000 | 1,162,666 | ||||||
Komatsu Ltd. | 62,400 | 1,530,852 | ||||||
Konica Minolta Inc. | 62,400 | 605,390 | ||||||
Kubota Corp. | 72,800 | 982,591 | ||||||
Kyocera Corp. | 20,800 | 1,147,438 | ||||||
Kyowa Hakko Kirin Co. Ltd. | 31,500 | 601,590 | ||||||
Kyushu Railway Co. | 20,800 | 711,894 | ||||||
Lawson Inc. | 10,400 | 630,614 | ||||||
Mitsubishi Chemical Holdings Corp. | 104,000 | 767,855 | ||||||
Mitsubishi Corp. | 62,400 | 1,759,554 | ||||||
Mitsubishi Electric Corp. | 114,400 | 1,432,569 | ||||||
Mitsubishi Estate Co. Ltd. | 52,000 | 893,604 | ||||||
Mitsubishi Heavy Industries Ltd. | 20,800 | 846,612 | ||||||
Mitsubishi UFJ Financial Group Inc. | 655,200 | 3,394,303 | ||||||
Mitsui Fudosan Co. Ltd. | 41,600 | 985,627 | ||||||
Mizuho Financial Group Inc. | 1,595,700 | 2,511,378 | ||||||
MS&AD Insurance Group Holdings Inc. | 31,200 | 936,953 | ||||||
Murata Manufacturing Co. Ltd. | 10,400 | 1,618,577 | ||||||
Nagoya Railroad Co. Ltd. | 20,800 | 572,691 | ||||||
NEC Corp. | 16,800 | 560,654 | ||||||
NGK Insulators Ltd. | 41,700 | 636,438 | ||||||
Nidec Corp. | 10,400 | 1,258,893 | ||||||
Nintendo Co. Ltd. | 5,708 | 1,560,829 | ||||||
Nippon Express Co. Ltd. | 10,400 | 613,798 | ||||||
Nippon Steel & Sumitomo Metal Corp. | 52,000 | 935,879 | ||||||
Nippon Telegraph & Telephone Corp. | 31,200 | 1,345,591 | ||||||
Nissin Foods Holdings Co. Ltd. | 10,400 | 722,170 | ||||||
Nitori Holdings Co. Ltd. | 2,500 | 311,826 | ||||||
Nitto Denko Corp. | 10,400 | 555,128 | ||||||
Nomura Holdings Inc. | 266,300 | 1,030,082 | ||||||
NTT Data Corp. | 62,400 | 682,185 | ||||||
NTT DOCOMO Inc. | 135,200 | 3,147,420 | ||||||
Obayashi Corp. | 72,800 | 709,558 | ||||||
Omron Corp. | 20,800 | 897,808 | ||||||
Ono Pharmaceutical Co. Ltd. | 31,200 | 641,405 | ||||||
Oriental Land Co. Ltd./Japan | 10,400 | 1,142,580 | ||||||
ORIX Corp. | 83,200 | 1,204,801 | ||||||
Osaka Gas Co. Ltd. | 42,900 | 878,656 | ||||||
Otsuka Holdings Co. Ltd. | 31,200 | 1,301,028 | ||||||
Panasonic Corp. | 176,800 | 1,627,920 | ||||||
Rakuten Inc. | 93,600 | 736,558 | ||||||
Recruit Holdings Co. Ltd. | 62,600 | 1,751,136 | ||||||
Resona Holdings Inc. | 156,100 | 705,759 | ||||||
Rohm Co. Ltd. | 10,400 | 656,773 | ||||||
Santen Pharmaceutical Co. Ltd. | 41,600 | 648,365 | ||||||
Secom Co. Ltd. | 10,400 | 898,742 | ||||||
Sekisui Chemical Co. Ltd. | 62,400 | 979,274 |
Security | Shares | Value | ||||||
Japan (continued) | ||||||||
Sekisui House Ltd. | 72,800 | $ | 1,094,420 | |||||
Seven & i Holdings Co. Ltd. | 31,200 | 1,371,657 | ||||||
Shimadzu Corp. | 20,800 | 512,900 | ||||||
Shimizu Corp. | 83,200 | 730,952 | ||||||
Shin-Etsu Chemical Co. Ltd. | 11,600 | 966,076 | ||||||
Shionogi & Co. Ltd. | 20,800 | 1,329,616 | ||||||
Shiseido Co. Ltd. | 14,400 | 950,514 | ||||||
SMC Corp./Japan | 900 | 313,286 | ||||||
SoftBank Group Corp. | 41,600 | 3,841,610 | ||||||
Sohgo Security Services Co. Ltd. | 10,400 | 449,371 | ||||||
Sompo Holdings Inc. | 31,300 | 1,168,830 | ||||||
Sony Corp. | 72,800 | 3,492,857 | ||||||
Stanley Electric Co. Ltd. | 20,800 | 597,916 | ||||||
Subaru Corp. | 31,200 | 792,192 | ||||||
Sumitomo Chemical Co. Ltd. | 285,800 | 1,417,190 | ||||||
Sumitomo Corp. | 41,600 | 598,103 | ||||||
Sumitomo Dainippon Pharma Co. Ltd. | 31,600 | 779,781 | ||||||
Sumitomo Metal Mining Co. Ltd. | 20,800 | 609,874 | ||||||
Sumitomo Mitsui Financial Group Inc. | 72,800 | 2,577,952 | ||||||
Sumitomo Mitsui Trust Holdings Inc. | 41,700 | 1,580,420 | ||||||
Suntory Beverage & Food Ltd. | 10,400 | 458,714 | ||||||
Suzuki Motor Corp. | 10,400 | 532,612 | ||||||
Sysmex Corp. | 10,400 | 625,850 | ||||||
T&D Holdings Inc. | 52,000 | 624,308 | ||||||
Taisei Corp. | 10,400 | 491,412 | ||||||
Takeda Pharmaceutical Co. Ltd. | 78,894 | 3,167,241 | ||||||
TDK Corp. | 10,400 | 812,792 | ||||||
Teijin Ltd. | 52,000 | 872,116 | ||||||
Terumo Corp. | 10,400 | 637,154 | ||||||
Tokio Marine Holdings Inc. | 41,600 | 2,027,682 | ||||||
Tokyo Electron Ltd. | 10,400 | 1,415,379 | ||||||
Tokyo Gas Co. Ltd. | 31,200 | 859,037 | ||||||
Tokyu Corp. | 72,800 | 1,234,042 | ||||||
Toray Industries Inc. | 145,600 | 1,014,308 | ||||||
Toyota Motor Corp. | 116,000 | 6,978,548 | ||||||
Unicharm Corp. | 31,200 | 993,568 | ||||||
West Japan Railway Co. | 10,400 | 783,924 | ||||||
Yakult Honsha Co. Ltd. | 10,400 | 697,880 | ||||||
Yamaguchi Financial Group Inc. | 62,400 | 581,847 | ||||||
Yamaha Corp. | 11,200 | 551,347 | ||||||
Yamaha Motor Co. Ltd. | 31,200 | 632,576 | ||||||
Yaskawa Electric Corp. | 22,400 | 636,867 | ||||||
Yokogawa Electric Corp. | 31,300 | 602,832 | ||||||
|
| |||||||
154,472,433 | ||||||||
Netherlands — 3.3% | ||||||||
ABN AMRO Group NV, CVA(b) | 27,572 | 669,368 | ||||||
Aegon NV | 121,576 | 654,538 | ||||||
Akzo Nobel NV | 13,538 | 1,229,096 | ||||||
ASML Holding NV | 21,969 | 4,030,596 | ||||||
Heineken Holding NV | 6,881 | 666,401 | ||||||
Heineken NV | 11,171 | 1,127,030 | ||||||
ING Groep NV | 163,560 | 2,166,412 | ||||||
Koninklijke Ahold Delhaize NV | 54,458 | 1,406,107 | ||||||
Koninklijke DSM NV | 11,549 | 1,241,441 | ||||||
Koninklijke Philips NV | 39,957 | 1,592,467 | ||||||
Koninklijke Vopak NV | 13,351 | 653,568 | ||||||
NXP Semiconductors NV | 13,282 | 1,212,912 | ||||||
Randstad NV | 12,541 | 670,467 | ||||||
Unilever NV, CVA | 64,430 | 3,489,676 |
12 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® ESG MSCI EAFE ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Netherlands (continued) | ||||||||
Wolters Kluwer NV | 10,880 | $ | 718,318 | |||||
|
| |||||||
21,528,397 | ||||||||
New Zealand — 0.2% | ||||||||
Auckland International Airport Ltd. | 166,246 | 880,315 | ||||||
Ryman Healthcare Ltd. | 84,728 | 635,164 | ||||||
|
| |||||||
1,515,479 | ||||||||
Norway — 1.0% | ||||||||
Equinor ASA | 139,852 | 3,147,586 | ||||||
Mowi ASA(a) | 27,136 | 626,772 | ||||||
Norsk Hydro ASA | 161,118 | 668,120 | ||||||
Orkla ASA | 94,652 | 746,682 | ||||||
Telenor ASA | 49,826 | 972,745 | ||||||
|
| |||||||
6,161,905 | ||||||||
Portugal — 0.4% | ||||||||
EDP - Energias de Portugal SA | 173,398 | 636,771 | ||||||
Galp Energia SGPS SA | 99,112 | 1,628,554 | ||||||
|
| |||||||
2,265,325 | ||||||||
Singapore — 1.4% | ||||||||
CapitaLand Ltd. | 442,900 | 1,121,017 | ||||||
City Developments Ltd. | 124,800 | 823,872 | ||||||
DBS Group Holdings Ltd. | 125,600 | 2,308,987 | ||||||
Keppel Corp. Ltd. | 197,700 | 901,297 | ||||||
Oversea-Chinese Banking Corp. Ltd. | 136,700 | 1,118,933 | ||||||
Singapore Airlines Ltd. | 83,700 | 620,069 | ||||||
Singapore Telecommunications Ltd. | 523,300 | 1,169,602 | ||||||
United Overseas Bank Ltd. | 40,200 | 744,378 | ||||||
|
| |||||||
8,808,155 | ||||||||
Spain — 3.2% | ||||||||
Amadeus IT Group SA | 24,055 | 1,813,314 | ||||||
Banco Bilbao Vizcaya Argentaria SA | 436,975 | 2,723,773 | ||||||
Banco Santander SA | 655,069 | 3,204,504 | ||||||
CaixaBank SA | 185,473 | 662,318 | ||||||
Ferrovial SA | 36,026 | 831,123 | ||||||
Iberdrola SA | 376,119 | 3,148,765 | ||||||
Industria de Diseno Textil SA | 61,483 | 1,858,085 | ||||||
Naturgy Energy Group SA | 36,040 | 979,595 | ||||||
Red Electrica Corp. SA | 37,925 | 820,519 | ||||||
Repsol SA | 185,726 | 3,198,730 | ||||||
Telefonica SA | 157,937 | 1,364,828 | ||||||
|
| |||||||
20,605,554 | ||||||||
Sweden — 2.7% | ||||||||
Assa Abloy AB, Class B | 51,010 | 1,055,766 | ||||||
Atlas Copco AB, Class A | 56,179 | 1,523,048 | ||||||
Boliden AB | 43,642 | 1,194,982 | ||||||
Epiroc AB, Class A(a) | 64,688 | 649,844 | ||||||
Essity AB, Class B | 43,093 | 1,203,058 | ||||||
Hennes & Mauritz AB, Class B | 53,293 | 807,013 | ||||||
ICA Gruppen AB | 17,232 | 662,719 | ||||||
Investor AB, Class B | 14,592 | 652,085 | ||||||
Kinnevik AB, Class B | 26,447 | 670,437 | ||||||
Lundin Petroleum AB | 20,203 | 660,980 | ||||||
Sandvik AB | 57,223 | 940,729 | ||||||
Skandinaviska Enskilda Banken AB, Class A | 96,850 | 986,473 | ||||||
Skanska AB, Class B | 36,831 | 664,743 | ||||||
SKF AB, Class B | 38,661 | 651,072 | ||||||
Svenska Handelsbanken AB, Class A | 61,056 | 696,832 | ||||||
Swedbank AB, Class A | 47,144 | 866,710 | ||||||
Tele2 AB, Class B | 50,507 | 665,624 |
Security | Shares | Value | ||||||
Sweden (continued) | ||||||||
Telefonaktiebolaget LM Ericsson, Class B | 134,029 | $ | 1,227,514 | |||||
Telia Co. AB | 211,294 | 917,674 | ||||||
Volvo AB, Class B | 71,515 | 1,053,662 | ||||||
|
| |||||||
17,750,965 | ||||||||
Switzerland — 8.6% | ||||||||
ABB Ltd., Registered | 105,876 | 2,100,622 | ||||||
Adecco Group AG, Registered | 15,111 | 786,646 | ||||||
Barry Callebaut AG, Registered | 420 | 724,734 | ||||||
Chocoladefabriken Lindt & Spruengli AG, Registered | 5 | 370,408 | ||||||
Clariant AG, Registered | 29,503 | 635,253 | ||||||
Coca-Cola HBC AG(a) | 24,297 | 819,570 | ||||||
Credit Suisse Group AG, Registered | 111,971 | 1,387,555 | ||||||
Geberit AG, Registered | 2,762 | 1,104,578 | ||||||
Givaudan SA, Registered | 1,040 | 2,606,786 | ||||||
Julius Baer Group Ltd. | 15,344 | 671,396 | ||||||
Kuehne + Nagel International AG, Registered | 9,362 | 1,224,052 | ||||||
LafargeHolcim Ltd., Registered | 21,950 | 1,088,466 | ||||||
Lonza Group AG, Registered | 6,300 | 1,754,919 | ||||||
Nestle SA, Registered | 157,827 | 14,315,647 | ||||||
Roche Holding AG, NVS | 34,908 | 9,716,913 | ||||||
SGS SA, Registered | 520 | 1,328,448 | ||||||
Sika AG, Registered | 7,222 | 978,689 | ||||||
Sonova Holding AG, Registered | 4,264 | 798,911 | ||||||
Swatch Group AG (The), Bearer | 2,240 | 664,445 | ||||||
Swiss Re AG | 30,838 | 3,059,035 | ||||||
Swisscom AG, Registered | 3,277 | 1,520,078 | ||||||
Temenos AG, Registered | 4,784 | 694,885 | ||||||
UBS Group AG, Registered | 260,185 | 3,316,954 | ||||||
Vifor Pharma AG | 4,857 | 609,197 | ||||||
Zurich Insurance Group AG | 10,576 | 3,503,393 | ||||||
|
| |||||||
55,781,580 | ||||||||
United Kingdom — 16.8% | ||||||||
3i Group PLC | 76,550 | 963,006 | ||||||
Anglo American PLC | 73,553 | 1,960,082 | ||||||
Antofagasta PLC | 70,538 | 878,930 | ||||||
Ashtead Group PLC | 25,917 | 690,478 | ||||||
Associated British Foods PLC | 23,634 | 705,100 | ||||||
AstraZeneca PLC | 69,601 | 5,683,260 | ||||||
Aviva PLC | 293,726 | 1,653,379 | ||||||
BAE Systems PLC | 154,455 | 957,353 | ||||||
Barclays PLC | 726,448 | 1,586,194 | ||||||
Barratt Developments PLC | 109,057 | 868,890 | ||||||
Berkeley Group Holdings PLC | 15,606 | 819,923 | ||||||
BP PLC | 1,355,448 | 9,634,600 | ||||||
British Land Co. PLC (The) | 152,672 | 1,226,943 | ||||||
BT Group PLC | 465,425 | 1,329,126 | ||||||
Bunzl PLC | 17,784 | 561,321 | ||||||
Burberry Group PLC | 27,356 | 687,518 | ||||||
Centrica PLC | 343,867 | 569,435 | ||||||
Coca-Cola European Partners PLC | 26,282 | 1,238,933 | ||||||
Compass Group PLC | 72,219 | 1,599,374 | ||||||
Croda International PLC | 20,732 | 1,326,664 | ||||||
DCC PLC | 9,605 | 833,609 | ||||||
Diageo PLC | 147,716 | 5,724,360 | ||||||
easyJet PLC | 39,318 | 641,944 | ||||||
Experian PLC | 32,182 | 840,482 | ||||||
Ferguson PLC | 21,550 | 1,496,530 | ||||||
GlaxoSmithKline PLC | 255,680 | 5,092,359 | ||||||
Glencore PLC | 518,366 | 2,095,671 |
S C H E D U L E O F I N V E S T M E N T S | 13 |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® ESG MSCI EAFE ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
United Kingdom (continued) | ||||||||
Hammerson PLC | 125,605 | $ | 637,696 | |||||
HSBC Holdings PLC | 851,983 | 6,945,523 | ||||||
Informa PLC | 101,649 | 953,454 | ||||||
InterContinental Hotels Group PLC | 15,400 | 923,705 | ||||||
Intertek Group PLC | 11,392 | 770,656 | ||||||
Investec PLC | 103,626 | 679,241 | ||||||
ITV PLC | 365,872 | 637,994 | ||||||
J Sainsbury PLC | 195,438 | 595,290 | ||||||
John Wood Group PLC | 93,211 | 645,192 | ||||||
Johnson Matthey PLC | 16,798 | 691,070 | ||||||
Kingfisher PLC | 254,653 | 820,027 | ||||||
Legal & General Group PLC | 376,314 | 1,404,502 | ||||||
Lloyds Banking Group PLC | 2,697,799 | 2,280,033 | ||||||
London Stock Exchange Group PLC | 14,500 | 869,241 | ||||||
Marks & Spencer Group PLC | 219,487 | 796,995 | ||||||
Meggitt PLC | 94,189 | 675,514 | ||||||
Micro Focus International PLC | 28,496 | 709,346 | ||||||
Mondi PLC | 32,722 | 752,304 | ||||||
National Grid PLC | 228,233 | 2,573,994 | ||||||
Next PLC | 9,633 | 651,918 | ||||||
Pearson PLC | 53,911 | 606,642 | ||||||
Prudential PLC | 107,272 | 2,268,652 | ||||||
Reckitt Benckiser Group PLC | 32,782 | 2,514,605 | ||||||
RELX PLC | 135,766 | 3,122,270 | ||||||
Rio Tinto PLC | 66,803 | 3,852,739 | ||||||
Rolls-Royce Holdings PLC | 65,321 | 829,737 | ||||||
Royal Bank of Scotland Group PLC | 185,536 | 655,698 | ||||||
Royal Mail PLC | 175,816 | 661,336 | ||||||
Schroders PLC | 26,453 | 962,314 | ||||||
Segro PLC | 137,727 | 1,210,891 | ||||||
Smith & Nephew PLC | 31,928 | 610,045 | ||||||
Smiths Group PLC | 35,212 | 669,982 | ||||||
SSE PLC | 80,531 | 1,273,054 | ||||||
Standard Chartered PLC | 193,593 | 1,549,109 | ||||||
Standard Life Aberdeen PLC | 202,026 | 663,054 | ||||||
Taylor Wimpey PLC | 306,554 | 739,654 | ||||||
Tesco PLC | 460,787 | 1,385,138 | ||||||
Unilever PLC | 59,122 | 3,151,819 | ||||||
United Utilities Group PLC | 61,918 | 691,965 | ||||||
Vodafone Group PLC | 1,433,897 | 2,561,024 |
Security | Shares | Value | ||||||
United Kingdom (continued) | ||||||||
Whitbread PLC | 12,240 | $ | 790,089 | |||||
Wm Morrison Supermarkets PLC | 201,157 | 615,653 | ||||||
WPP PLC | 91,265 | 1,002,452 | ||||||
|
| |||||||
109,067,081 | ||||||||
|
| |||||||
Total Common Stocks — 99.4% | 646,399,214 | |||||||
|
| |||||||
Preferred Stocks | ||||||||
Germany — 0.1% | ||||||||
Bayerische Motoren Werke AG, Preference Shares, NVS | 5,139 | 379,781 | ||||||
Sartorius AG, Preference Shares, NVS | 3,917 | 621,764 | ||||||
|
| |||||||
1,001,545 | ||||||||
Italy — 0.1% | ||||||||
Telecom Italia SpA/Milano, Preference Shares, NVS | 1,203,072 | 656,338 | ||||||
|
| |||||||
Total Preferred Stocks — 0.2% | 1,657,883 | |||||||
|
| |||||||
Short-Term Investments | ||||||||
Money Market Funds — 0.0% | ||||||||
BlackRock Cash Funds: Treasury, | 134,502 | 134,502 | ||||||
|
| |||||||
Total Short-Term Investments — 0.0% | 134,502 | |||||||
|
| |||||||
Total Investments in Securities — 99.6% | 648,191,599 | |||||||
Other Assets, Less Liabilities — 0.4% | 2,327,704 | |||||||
|
| |||||||
Net Assets — 100.0% | $ | 650,519,303 | ||||||
|
|
(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
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2019, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Affiliated Issuer | | Shares Held at 08/31/18 | Net Activity | | Shares Held at 02/28/19 | | Value at 02/28/19 | Income | | Net Realized Gain (Loss) | (a) | | Change in Unrealized Appreciation (Depreciation) | |||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | 318,295 | (318,295 | ) | — | $ | — | $ | 36,533 | (b) | $ | 101 | $ | (63 | ) | ||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 196,954 | (62,452 | ) | 134,502 | 134,502 | 4,180 | — | — | ||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
$ | 134,502 | $ | 40,713 | $ | 101 | $ | (63 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Includes 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, and less fees paid to BTC as securities lending agent. |
14 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® ESG MSCI EAFE ETF |
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, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2019. 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 | $ | 646,399,214 | $ | — | $ | — | $ | 646,399,214 | ||||||||
Preferred Stocks | 1,657,883 | — | — | 1,657,883 | ||||||||||||
Money Market Funds | 134,502 | — | — | 134,502 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 648,191,599 | $ | — | $ | — | $ | 648,191,599 | |||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
S C H E D U L E O F I N V E S T M E N T S | 15 |
Schedule of Investments (unaudited) February 28, 2019 | iShares® ESG MSCI USA ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Aerospace & Defense — 2.0% | ||||||||
Harris Corp. | 1,683 | $ | 277,577 | |||||
Huntington Ingalls Industries Inc. | 1,478 | 309,508 | ||||||
L3 Technologies Inc. | 2,021 | 427,947 | ||||||
Raytheon Co. | 5,268 | 982,482 | ||||||
Spirit AeroSystems Holdings Inc., Class A | 1,849 | 182,681 | ||||||
TransDigm Group Inc.(a) | 366 | 158,877 | ||||||
United Technologies Corp. | 7,563 | 950,442 | ||||||
|
| |||||||
3,289,514 | ||||||||
Air Freight & Logistics — 0.8% | ||||||||
CH Robinson Worldwide Inc. | 1,750 | 158,165 | ||||||
Expeditors International of Washington Inc. | 5,862 | 439,357 | ||||||
FedEx Corp. | 899 | 162,719 | ||||||
United Parcel Service Inc., Class B | 5,261 | 579,762 | ||||||
|
| |||||||
1,340,003 | ||||||||
Airlines — 0.1% | ||||||||
Delta Air Lines Inc. | 3,155 | 156,425 | ||||||
|
| |||||||
Auto Components — 0.1% | ||||||||
Aptiv PLC | 1,991 | 165,472 | ||||||
|
| |||||||
Automobiles — 0.4% | ||||||||
Ford Motor Co. | 18,872 | 165,507 | ||||||
General Motors Co. | 4,123 | 162,776 | ||||||
Tesla Inc.(a)(b) | 1,077 | 344,511 | ||||||
|
| |||||||
672,794 | ||||||||
Banks — 5.2% | ||||||||
Bank of America Corp. | 64,198 | 1,866,878 | ||||||
BB&T Corp. | 8,025 | 409,034 | ||||||
Citigroup Inc. | 17,144 | 1,096,873 | ||||||
Citizens Financial Group Inc. | 5,103 | 188,505 | ||||||
Comerica Inc. | 3,393 | 295,564 | ||||||
JPMorgan Chase & Co. | 22,605 | 2,359,058 | ||||||
KeyCorp. | 19,713 | 348,132 | ||||||
M&T Bank Corp. | 936 | 161,984 | ||||||
People’s United Financial Inc. | 14,144 | 251,197 | ||||||
PNC Financial Services Group Inc. (The) | 5,043 | 635,519 | ||||||
SVB Financial Group(a)(b) | 653 | 161,396 | ||||||
U.S. Bancorp. | 8,283 | 428,148 | ||||||
Zions Bancorp. N.A. | 5,717 | 292,139 | ||||||
|
| |||||||
8,494,427 | ||||||||
Beverages — 2.1% | ||||||||
Coca-Cola Co. (The) | 30,930 | 1,402,366 | ||||||
Constellation Brands Inc., Class A | 921 | 155,796 | ||||||
Molson Coors Brewing Co., Class B | 4,446 | 274,141 | ||||||
PepsiCo Inc. | 13,348 | 1,543,563 | ||||||
|
| |||||||
3,375,866 | ||||||||
Biotechnology — 2.6% | ||||||||
AbbVie Inc. | 10,395 | 823,700 | ||||||
Amgen Inc. | 4,980 | 946,598 | ||||||
Biogen Inc.(a) | 1,588 | 520,880 | ||||||
BioMarin Pharmaceutical Inc.(a) | 1,715 | 159,941 | ||||||
Celgene Corp.(a) | 4,715 | 391,911 | ||||||
Gilead Sciences Inc. | 11,872 | 771,917 | ||||||
Regeneron Pharmaceuticals Inc.(a) | 380 | 163,681 | ||||||
Vertex Pharmaceuticals Inc.(a) | 2,324 | 438,655 | ||||||
|
| |||||||
4,217,283 |
Security | Shares | Value | ||||||
Building Products — 0.8% | ||||||||
Allegion PLC | 2,217 | $ | 199,441 | |||||
Fortune Brands Home & Security Inc. | 3,400 | 160,208 | ||||||
Johnson Controls International PLC | 15,277 | 538,820 | ||||||
Lennox International Inc. | 700 | 171,675 | ||||||
Owens Corning | 2,947 | 147,144 | ||||||
|
| |||||||
1,217,288 | ||||||||
Capital Markets — 3.3% | ||||||||
Ameriprise Financial Inc. | 1,660 | 218,506 | ||||||
Bank of New York Mellon Corp. (The) | 11,284 | 592,184 | ||||||
BlackRock Inc.(c) | 1,553 | 688,321 | ||||||
Charles Schwab Corp. (The) | 5,901 | 271,505 | ||||||
CME Group Inc. | 2,664 | 484,608 | ||||||
Franklin Resources Inc. | 4,966 | 161,941 | ||||||
Goldman Sachs Group Inc. (The) | 2,465 | 484,866 | ||||||
Intercontinental Exchange Inc. | 4,261 | 328,736 | ||||||
Moody’s Corp. | 1,754 | 303,652 | ||||||
Morgan Stanley | 12,465 | 523,281 | ||||||
Northern Trust Corp. | 5,235 | 487,902 | ||||||
S&P Global Inc. | 1,514 | 303,360 | ||||||
State Street Corp. | 3,724 | 267,644 | ||||||
T Rowe Price Group Inc. | 1,913 | 192,123 | ||||||
|
| |||||||
5,308,629 | ||||||||
Chemicals — 2.3% | ||||||||
Axalta Coating Systems Ltd.(a) | 7,419 | 198,310 | ||||||
DowDuPont Inc. | 16,775 | 892,933 | ||||||
Ecolab Inc. | 6,145 | 1,037,952 | ||||||
International Flavors & Fragrances Inc. | 2,416 | 308,040 | ||||||
Linde PLC | 3,581 | 620,373 | ||||||
Mosaic Co. (The) | 7,148 | 223,518 | ||||||
PPG Industries Inc. | 1,692 | 189,453 | ||||||
Sherwin-Williams Co. (The) | 567 | 245,624 | ||||||
|
| |||||||
3,716,203 | ||||||||
Commercial Services & Supplies — 0.1% | ||||||||
Copart Inc.(a)(b) | 3,665 | 215,026 | ||||||
|
| |||||||
Communications Equipment — 1.2% | ||||||||
Cisco Systems Inc. | 32,073 | 1,660,419 | ||||||
Motorola Solutions Inc. | 2,364 | 338,336 | ||||||
|
| |||||||
1,998,755 | ||||||||
Construction & Engineering — 0.1% | ||||||||
Fluor Corp. | 4,438 | 166,869 | ||||||
|
| |||||||
Consumer Finance — 0.8% | ||||||||
Ally Financial Inc. | 5,967 | 161,646 | ||||||
American Express Co. | 8,690 | 936,261 | ||||||
Capital One Financial Corp. | 2,482 | 207,445 | ||||||
|
| |||||||
1,305,352 | ||||||||
Containers & Packaging — 0.3% | ||||||||
Ball Corp. | 4,430 | 242,675 | ||||||
International Paper Co. | 3,418 | 156,613 | ||||||
|
| |||||||
399,288 | ||||||||
Distributors — 0.1% | ||||||||
LKQ Corp.(a) | 5,936 | 164,427 | ||||||
|
| |||||||
Diversified Financial Services — 0.9% | ||||||||
Berkshire Hathaway Inc., Class B(a) | 7,509 | 1,511,562 | ||||||
|
| |||||||
Diversified Telecommunication Services — 2.0% | ||||||||
AT&T Inc. | 50,229 | 1,563,126 | ||||||
CenturyLink Inc. | 11,729 | 154,706 |
16 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® ESG MSCI USA ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Diversified Telecommunication Services (continued) | ||||||||
Verizon Communications Inc. | 27,574 | $ | 1,569,512 | |||||
|
| |||||||
3,287,344 | ||||||||
Electric Utilities — 2.2% | ||||||||
American Electric Power Co. Inc. | 3,558 | 288,732 | ||||||
Entergy Corp. | 1,935 | 180,593 | ||||||
Eversource Energy | 5,110 | 356,729 | ||||||
Exelon Corp. | 11,707 | 568,843 | ||||||
NextEra Energy Inc. | 6,244 | 1,172,124 | ||||||
Southern Co. (The) | 10,037 | 498,738 | ||||||
Xcel Energy Inc. | 8,346 | 457,862 | ||||||
|
| |||||||
3,523,621 | ||||||||
Electrical Equipment — 0.2% | ||||||||
Eaton Corp. PLC | 2,209 | 176,212 | ||||||
Rockwell Automation Inc. | 1,064 | 189,988 | ||||||
|
| |||||||
366,200 | ||||||||
Electronic Equipment, Instruments & Components — 0.8% | ||||||||
Corning Inc. | 6,927 | 241,129 | ||||||
Keysight Technologies Inc.(a) | 3,394 | 286,487 | ||||||
TE Connectivity Ltd. | 6,586 | 540,645 | ||||||
Trimble Inc.(a)(b) | 6,566 | 262,706 | ||||||
|
| |||||||
1,330,967 | ||||||||
Energy Equipment & Services — 0.7% | ||||||||
Baker Hughes a GE Co. | 10,653 | 281,026 | ||||||
Halliburton Co. | 5,060 | 155,291 | ||||||
National Oilwell Varco Inc. | 6,664 | 187,525 | ||||||
Schlumberger Ltd. | 6,144 | 270,705 | ||||||
TechnipFMC PLC | 9,772 | 217,818 | ||||||
|
| |||||||
1,112,365 | ||||||||
Entertainment — 1.8% | ||||||||
Activision Blizzard Inc. | 3,614 | 152,294 | ||||||
Electronic Arts Inc.(a) | 1,508 | 144,436 | ||||||
Netflix Inc.(a) | 2,937 | 1,051,740 | ||||||
Twenty-First Century Fox Inc., Class A, NVS | 4,401 | 221,942 | ||||||
Twenty-First Century Fox Inc., Class B | 3,297 | 165,378 | ||||||
Walt Disney Co. (The) | 10,217 | 1,152,886 | ||||||
|
| |||||||
2,888,676 | ||||||||
Equity Real Estate Investment Trusts (REITs) — 3.1% | ||||||||
American Tower Corp. | 4,818 | 848,691 | ||||||
Boston Properties Inc. | 2,829 | 375,380 | ||||||
Crown Castle International Corp. | 1,980 | 235,125 | ||||||
Digital Realty Trust Inc. | 1,775 | 200,788 | ||||||
Equinix Inc. | 894 | 378,609 | ||||||
HCP Inc. | 7,186 | 221,113 | ||||||
Host Hotels & Resorts Inc. | 9,824 | 192,649 | ||||||
Iron Mountain Inc. | 8,425 | 298,413 | ||||||
Kimco Realty Corp. | 9,074 | 159,612 | ||||||
Liberty Property Trust | 7,696 | 364,252 | ||||||
Prologis Inc. | 8,550 | 599,013 | ||||||
SBA Communications Corp.(a) | 1,099 | 198,435 | ||||||
Simon Property Group Inc. | 1,797 | 325,544 | ||||||
UDR Inc. | 5,321 | 236,359 | ||||||
Weyerhaeuser Co. | 13,344 | 332,132 | ||||||
|
| |||||||
4,966,115 | ||||||||
Food & Staples Retailing — 0.9% | ||||||||
Costco Wholesale Corp. | 2,747 | 600,879 | ||||||
Kroger Co. (The) | 8,379 | 245,756 | ||||||
Sysco Corp. | 3,591 | 242,572 |
Security | Shares | Value | ||||||
Food & Staples Retailing (continued) | ||||||||
Walgreens Boots Alliance Inc. | 5,172 | $ | 368,195 | |||||
|
| |||||||
1,457,402 | ||||||||
Food Products — 1.7% | ||||||||
Archer-Daniels-Midland Co. | 5,400 | 229,500 | ||||||
Bunge Ltd. | 4,969 | 263,754 | ||||||
Campbell Soup Co. | 4,737 | 170,627 | ||||||
Conagra Brands Inc. | 6,578 | 153,728 | ||||||
General Mills Inc. | 7,911 | 372,845 | ||||||
Hormel Foods Corp. | 4,099 | 177,733 | ||||||
Kellogg Co. | 6,468 | 363,890 | ||||||
Kraft Heinz Co. (The) | 5,352 | 177,633 | ||||||
Lamb Weston Holdings Inc. | 2,319 | 160,730 | ||||||
McCormick & Co. Inc./MD, NVS | 2,015 | 274,000 | ||||||
Mondelez International Inc., Class A | 9,827 | 463,441 | ||||||
|
| |||||||
2,807,881 | ||||||||
Health Care Equipment & Supplies — 2.6% | ||||||||
Abbott Laboratories | 9,280 | 720,314 | ||||||
ABIOMED Inc.(a) | 445 | 148,853 | ||||||
Align Technology Inc.(a) | 677 | 175,323 | ||||||
Becton Dickinson and Co. | 2,175 | 541,118 | ||||||
Cooper Companies Inc. (The) | 685 | 195,903 | ||||||
DENTSPLY SIRONA Inc. | 4,159 | 173,680 | ||||||
DexCom Inc.(a) | 1,085 | 151,173 | ||||||
Edwards Lifesciences Corp.(a) | 2,480 | 419,839 | ||||||
Hologic Inc.(a) | 3,482 | 164,176 | ||||||
IDEXX Laboratories Inc.(a) | 1,627 | 343,346 | ||||||
Intuitive Surgical Inc.(a) | 397 | 217,401 | ||||||
Medtronic PLC | 6,112 | 553,136 | ||||||
ResMed Inc. | 2,287 | 234,257 | ||||||
Varian Medical Systems Inc.(a) | 1,214 | 163,113 | ||||||
|
| |||||||
4,201,632 | ||||||||
Health Care Providers & Services — 3.1% | ||||||||
AmerisourceBergen Corp. | 1,860 | 154,938 | ||||||
Anthem Inc. | 1,076 | 323,585 | ||||||
Cardinal Health Inc. | 5,511 | 299,468 | ||||||
Centene Corp.(a) | 2,482 | 151,129 | ||||||
Cigna Corp. | 3,021 | 526,983 | ||||||
CVS Health Corp. | 9,163 | 529,896 | ||||||
DaVita Inc.(a) | 2,727 | 155,166 | ||||||
HCA Healthcare Inc. | 2,343 | 325,771 | ||||||
Henry Schein Inc.(a) | 4,916 | 291,519 | ||||||
Humana Inc. | 1,060 | 302,142 | ||||||
Laboratory Corp. of America Holdings(a) | 1,108 | 164,250 | ||||||
Quest Diagnostics Inc. | 3,607 | 312,186 | ||||||
UnitedHealth Group Inc. | 5,808 | 1,406,814 | ||||||
|
| |||||||
4,943,847 | ||||||||
Hotels, Restaurants & Leisure — 1.7% | ||||||||
Chipotle Mexican Grill Inc.(a) | 266 | 161,603 | ||||||
Hilton Worldwide Holdings Inc. | 5,241 | 435,527 | ||||||
Marriott International Inc./MD, Class A | 1,906 | 238,764 | ||||||
McDonald’s Corp. | 4,431 | 814,595 | ||||||
MGM Resorts International | 5,713 | 152,823 | ||||||
Royal Caribbean Cruises Ltd. | 1,366 | 161,844 | ||||||
Starbucks Corp. | 8,723 | 612,878 | ||||||
Vail Resorts Inc. | 890 | 185,467 | ||||||
|
| |||||||
2,763,501 | ||||||||
Household Durables — 0.2% | ||||||||
Mohawk Industries Inc.(a)(b) | 1,444 | 196,557 |
S C H E D U L E O F I N V E S T M E N T S | 17 |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® ESG MSCI USA ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Household Durables (continued) | ||||||||
Newell Brands Inc. | 9,391 | $ | 152,416 | |||||
|
| |||||||
348,973 | ||||||||
Household Products — 2.0% | ||||||||
Clorox Co. (The) | 2,106 | 332,811 | ||||||
Colgate-Palmolive Co. | 7,782 | 512,601 | ||||||
Kimberly-Clark Corp. | 3,958 | 462,413 | ||||||
Procter & Gamble Co. (The) | 18,864 | 1,859,047 | ||||||
|
| |||||||
3,166,872 | ||||||||
Industrial Conglomerates — 2.2% | ||||||||
3M Co. | 6,309 | 1,308,423 | ||||||
General Electric Co. | 63,215 | 656,804 | ||||||
Honeywell International Inc. | 9,531 | 1,468,441 | ||||||
Roper Technologies Inc. | 626 | 202,605 | ||||||
|
| |||||||
3,636,273 | ||||||||
Insurance — 2.4% | ||||||||
Allstate Corp. (The) | 4,555 | 429,901 | ||||||
American International Group Inc. | 6,750 | 291,600 | ||||||
Aon PLC | 937 | 160,724 | ||||||
Chubb Ltd. | 3,288 | 440,263 | ||||||
Marsh & McLennan Companies Inc. | 6,716 | 624,722 | ||||||
Principal Financial Group Inc. | 3,175 | 167,132 | ||||||
Progressive Corp. (The) | 5,422 | 395,264 | ||||||
Prudential Financial Inc. | 5,763 | 552,384 | ||||||
Travelers Companies Inc. (The) | 4,777 | 634,911 | ||||||
Willis Towers Watson PLC | 1,002 | 172,364 | ||||||
|
| |||||||
3,869,265 | ||||||||
Interactive Media & Services — 4.6% | ||||||||
Alphabet Inc., Class A(a) | 1,980 | 2,230,569 | ||||||
Alphabet Inc., Class C, NVS(a) | 2,259 | 2,529,899 | ||||||
Facebook Inc., Class A(a) | 15,358 | 2,479,549 | ||||||
Twitter Inc.(a) | 5,160 | 158,825 | ||||||
|
| |||||||
7,398,842 | ||||||||
Internet & Direct Marketing Retail — 3.5% | ||||||||
Amazon.com Inc.(a) | 2,716 | 4,453,778 | ||||||
Booking Holdings Inc.(a)(b) | 318 | 539,659 | ||||||
eBay Inc. | 4,924 | 182,927 | ||||||
MercadoLibre Inc.(a) | 444 | 203,703 | ||||||
Wayfair Inc., Class A(a) | 1,320 | 218,697 | ||||||
|
| |||||||
5,598,764 | ||||||||
IT Services — 4.9% | ||||||||
Accenture PLC, Class A | 7,248 | 1,169,682 | ||||||
Akamai Technologies Inc.(a) | 2,299 | 160,148 | ||||||
Automatic Data Processing Inc. | 3,767 | 576,464 | ||||||
Cognizant Technology Solutions Corp., Class A | 4,035 | 286,404 | ||||||
DXC Technology Co. | 2,462 | 162,147 | ||||||
International Business Machines Corp. | 7,715 | 1,065,673 | ||||||
Jack Henry & Associates Inc. | 1,241 | 164,594 | ||||||
Mastercard Inc., Class A | 6,468 | 1,453,813 | ||||||
PayPal Holdings Inc.(a) | 7,785 | 763,475 | ||||||
Square Inc., Class A(a) | 2,131 | 173,123 | ||||||
Visa Inc., Class A | 12,594 | 1,865,423 | ||||||
Western Union Co. (The) | 9,056 | 161,831 | ||||||
|
| |||||||
8,002,777 | ||||||||
Leisure Products — 0.2% | ||||||||
Hasbro Inc. | 2,367 | 200,958 | ||||||
Mattel Inc.(a) | 11,661 | 168,152 | ||||||
|
| |||||||
369,110 |
Security | Shares | Value | ||||||
Life Sciences Tools & Services — 1.3% | ||||||||
Agilent Technologies Inc. | 5,830 | $ | 463,135 | |||||
Illumina Inc.(a) | 808 | 252,718 | ||||||
IQVIA Holdings Inc.(a) | 1,905 | 266,891 | ||||||
Mettler-Toledo International Inc.(a) | 357 | 243,085 | ||||||
Thermo Fisher Scientific Inc. | 1,880 | 487,992 | ||||||
Waters Corp.(a) | 1,342 | 325,059 | ||||||
|
| |||||||
2,038,880 | ||||||||
Machinery — 1.8% | ||||||||
Caterpillar Inc. | 4,925 | 676,399 | ||||||
Cummins Inc. | 2,488 | 383,376 | ||||||
Deere & Co. | 2,376 | 389,759 | ||||||
Flowserve Corp. | 3,373 | 149,795 | ||||||
Illinois Tool Works Inc. | 1,166 | 167,997 | ||||||
Ingersoll-Rand PLC | 4,320 | 456,019 | ||||||
PACCAR Inc. | 2,367 | 160,483 | ||||||
Parker-Hannifin Corp. | 1,658 | 292,073 | ||||||
Wabtec Corp. | 368 | 26,960 | ||||||
Xylem Inc./NY | 3,450 | 260,648 | ||||||
|
| |||||||
2,963,509 | ||||||||
Media — 1.4% | ||||||||
Charter Communications Inc., Class A(a) | 994 | 342,841 | ||||||
Comcast Corp., Class A | 28,145 | 1,088,367 | ||||||
Discovery Inc., Class C, NVS(a)(b) | 5,829 | 158,840 | ||||||
Liberty Broadband Corp., Class C, NVS(a) | 1,810 | 161,995 | ||||||
Liberty Global PLC, Class C, NVS(a) | 10,281 | 261,035 | ||||||
Omnicom Group Inc. | 3,132 | 237,092 | ||||||
|
| |||||||
2,250,170 | ||||||||
Metals & Mining — 0.3% | ||||||||
Newmont Mining Corp. | 6,220 | 212,226 | ||||||
Nucor Corp. | 3,094 | 187,404 | ||||||
|
| |||||||
399,630 | ||||||||
Multi-Utilities — 1.2% | ||||||||
CMS Energy Corp. | 8,558 | 465,555 | ||||||
Consolidated Edison Inc. | 5,668 | 467,327 | ||||||
Dominion Energy Inc. | 4,751 | 352,001 | ||||||
Public Service Enterprise Group Inc. | 4,165 | 244,944 | ||||||
Sempra Energy | 3,771 | 454,179 | ||||||
|
| |||||||
1,984,006 | ||||||||
Multiline Retail — 0.3% | ||||||||
Nordstrom Inc. | 3,626 | 171,437 | ||||||
Target Corp. | 4,869 | 353,684 | ||||||
|
| |||||||
525,121 | ||||||||
Oil, Gas & Consumable Fuels — 4.2% | ||||||||
Cheniere Energy Inc.(a) | 2,788 | 179,687 | ||||||
ConocoPhillips | 12,735 | 864,070 | ||||||
Devon Energy Corp. | 5,671 | 167,351 | ||||||
EOG Resources Inc. | 1,608 | 151,152 | ||||||
Exxon Mobil Corp. | 29,026 | 2,293,925 | ||||||
Hess Corp. | 5,460 | 315,861 | ||||||
HollyFrontier Corp. | 2,784 | 142,541 | ||||||
Kinder Morgan Inc./DE | 8,580 | 164,393 | ||||||
Marathon Oil Corp. | 9,436 | 156,638 | ||||||
Marathon Petroleum Corp. | 5,282 | 327,537 | ||||||
Noble Energy Inc. | 7,118 | 157,664 | ||||||
Occidental Petroleum Corp. | 6,304 | 417,009 | ||||||
ONEOK Inc. | 4,675 | 300,415 | ||||||
Phillips 66 | 5,592 | 538,845 | ||||||
Pioneer Natural Resources Co. | 1,109 | 156,313 |
18 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® ESG MSCI USA ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Oil, Gas & Consumable Fuels (continued) | ||||||||
Valero Energy Corp. | 4,169 | $ | 340,024 | |||||
Williams Companies Inc. (The) | 5,911 | 157,764 | ||||||
|
| |||||||
6,831,189 | ||||||||
Personal Products — 0.1% | ||||||||
Estee Lauder Companies Inc. (The), Class A | 1,404 | 220,344 | ||||||
|
| |||||||
Pharmaceuticals — 4.8% | ||||||||
Allergan PLC | 1,714 | 236,035 | ||||||
Bristol-Myers Squibb Co. | 12,420 | 641,617 | ||||||
Eli Lilly & Co. | 7,807 | 985,946 | ||||||
Jazz Pharmaceuticals PLC(a) | 1,280 | 179,238 | ||||||
Johnson & Johnson | 17,709 | 2,419,758 | ||||||
Merck & Co. Inc. | 19,074 | 1,550,526 | ||||||
Pfizer Inc. | 29,555 | 1,281,209 | ||||||
Zoetis Inc. | 4,683 | 441,279 | ||||||
|
| |||||||
7,735,608 | ||||||||
Professional Services — 0.4% | ||||||||
IHS Markit Ltd.(a) | 5,323 | 283,024 | ||||||
ManpowerGroup Inc. | 2,393 | 201,610 | ||||||
TransUnion | 2,553 | 164,822 | ||||||
|
| |||||||
649,456 | ||||||||
Real Estate Management & Development — 0.3% | ||||||||
CBRE Group Inc., Class A(a) | 7,595 | 377,927 | ||||||
Jones Lang LaSalle Inc. | 977 | 161,322 | ||||||
|
| |||||||
539,249 | ||||||||
Road & Rail — 1.1% | ||||||||
CSX Corp. | 5,861 | 425,919 | ||||||
Kansas City Southern | 1,499 | 162,851 | ||||||
Norfolk Southern Corp. | 2,477 | 444,126 | ||||||
Union Pacific Corp. | 4,647 | 779,302 | ||||||
|
| |||||||
1,812,198 | ||||||||
Semiconductors & Semiconductor Equipment — 3.8% | ||||||||
Advanced Micro Devices Inc.(a) | 6,810 | 160,239 | ||||||
Analog Devices Inc. | 2,075 | 221,942 | ||||||
Applied Materials Inc. | 10,245 | 392,794 | ||||||
Broadcom Inc. | 2,239 | 616,531 | ||||||
Intel Corp. | 32,845 | 1,739,471 | ||||||
Lam Research Corp. | 1,158 | 203,912 | ||||||
Marvell Technology Group Ltd. | 8,559 | 170,752 | ||||||
Microchip Technology Inc. | 1,769 | 153,673 | ||||||
Micron Technology Inc.(a) | 5,243 | 214,334 | ||||||
NVIDIA Corp. | 4,524 | 697,872 | ||||||
QUALCOMM Inc. | 6,269 | 334,702 | ||||||
Skyworks Solutions Inc. | 1,933 | 157,849 | ||||||
Texas Instruments Inc. | 8,140 | 861,049 | ||||||
Xilinx Inc. | 1,687 | 211,381 | ||||||
|
| |||||||
6,136,501 | ||||||||
Software — 7.1% | ||||||||
Adobe Inc.(a) | 3,824 | 1,003,800 | ||||||
Autodesk Inc.(a) | 2,414 | 393,506 | ||||||
Cadence Design Systems Inc.(a) | 4,064 | 232,664 | ||||||
Intuit Inc. | 2,604 | 643,527 | ||||||
Microsoft Corp. | 54,049 | 6,055,109 | ||||||
Oracle Corp. | 18,767 | 978,324 | ||||||
Red Hat Inc.(a) | 1,190 | 217,294 | ||||||
salesforce.com Inc.(a) | 7,661 | 1,253,723 | ||||||
ServiceNow Inc.(a) | 1,037 | 248,299 |
Security | Shares | Value | ||||||
Software (continued) | ||||||||
Symantec Corp. | 6,961 | $ | 156,553 | |||||
VMware Inc., Class A | 1,066 | 183,149 | ||||||
Workday Inc., Class A(a) | 886 | 175,366 | ||||||
|
| |||||||
11,541,314 | ||||||||
Specialty Retail — 2.5% | ||||||||
Best Buy Co. Inc. | 5,923 | 407,739 | ||||||
Gap Inc. (The) | 7,865 | 199,771 | ||||||
Home Depot Inc. (The) | 8,809 | 1,630,898 | ||||||
Lowe’s Companies Inc. | 5,482 | 576,103 | ||||||
O’Reilly Automotive Inc.(a) | 415 | 154,364 | ||||||
Ross Stores Inc. | 1,825 | 173,065 | ||||||
Tiffany & Co. | 3,405 | 323,611 | ||||||
TJX Companies Inc. (The) | 7,809 | 400,524 | ||||||
Tractor Supply Co. | 1,652 | 157,518 | ||||||
|
| |||||||
4,023,593 | ||||||||
Technology Hardware, Storage & Peripherals — 3.9% | ||||||||
Apple Inc. | 31,613 | 5,473,791 | ||||||
Dell Technologies Inc., Class C(a) | 2,930 | 163,552 | ||||||
Hewlett Packard Enterprise Co. | 24,629 | 403,423 | ||||||
HP Inc. | 17,990 | 354,943 | ||||||
|
| |||||||
6,395,709 | ||||||||
Textiles, Apparel & Luxury Goods — 1.0% | ||||||||
Hanesbrands Inc. | 8,586 | 159,614 | ||||||
NIKE Inc., Class B | 9,523 | 816,407 | ||||||
PVH Corp. | 2,066 | 237,259 | ||||||
VF Corp. | 3,808 | 332,667 | ||||||
|
| |||||||
1,545,947 | ||||||||
Trading Companies & Distributors — 0.2% | ||||||||
Fastenal Co. | 2,569 | 161,693 | ||||||
WW Grainger Inc. | 558 | 170,062 | ||||||
|
| |||||||
331,755 | ||||||||
|
| |||||||
Total Common Stocks — 99.7% |
| 161,679,789 | ||||||
|
| |||||||
Short-Term Investments | ||||||||
Money Market Funds — 1.5% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 2.62%(c)(d)(e) | 1,968,664 | 1,969,452 | ||||||
BlackRock Cash Funds: Treasury, | 430,127 | 430,127 | ||||||
|
| |||||||
2,399,579 | ||||||||
|
| |||||||
Total Short-Term Investments — 1.5% |
| 2,399,579 | ||||||
|
| |||||||
Total Investments in Securities — 101.2% |
| 164,079,368 | ||||||
Other Assets, Less Liabilities — (1.2)% | (1,996,031 | ) | ||||||
|
| |||||||
Net Assets — 100.0% | $ | 162,083,337 | ||||||
|
|
(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. |
S C H E D U L E O F I N V E S T M E N T S | 19 |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® ESG MSCI USA ETF |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2019, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Affiliated Issuer | | Shares Held at 08/31/18 | | | Shares Purchased | | | Shares Sold | | | Shares Held at 02/28/19 | | | Value at 02/28/19 | | Income | | Net Realized Gain (Loss) |
(a) | | Change in Unrealized Appreciation (Depreciation) | |||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | 517,430 | 1,451,234 | (b) | — | 1,968,664 | $ | 1,969,452 | $ | 1,139 | (c) | $ | (68 | ) | $ | (1 | ) | ||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 81,721 | 348,406 | (b) | — | 430,127 | 430,127 | 2,742 | — | — | |||||||||||||||||||||||
BlackRock Inc. | 1,066 | 746 | (259 | ) | 1,553 | 688,321 | 6,930 | (24,985 | ) | 10,031 | ||||||||||||||||||||||
PNC Financial Services Group Inc. (The) (d) | 3,164 | 2,430 | (551 | ) | 5,043 | N/A | 8,184 | (12,021 | ) | 5,274 | ||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 3,087,900 | $ | 18,995 | $ | (37,074 | ) | $ | 15,304 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Net of purchases and sales. |
(c) | Includes 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, and less fees paid to BTC as securities lending agent. |
(d) | As of period end, the entity is no longer an affiliate of the Fund. |
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, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2019. 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 | $ | 161,679,789 | $ | — | $ | — | $ | 161,679,789 | ||||||||
Money Market Funds | 2,399,579 | — | — | 2,399,579 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 164,079,368 | $ | — | $ | — | $ | 164,079,368 | |||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
20 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) February 28, 2019 | iShares® ESG MSCI USA Small-Cap ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
| |||||||
Aerospace & Defense — 2.2% | ||||||||
Aerovironment Inc.(a) | 121 | $ | 9,640 | |||||
Astronics Corp.(a) | 316 | 11,367 | ||||||
Axon Enterprise Inc.(a) | 401 | 21,586 | ||||||
BWX Technologies Inc. | 1,321 | 69,154 | ||||||
Cubic Corp. | 351 | 21,657 | ||||||
Curtiss-Wright Corp. | 273 | 33,658 | ||||||
Esterline Technologies Corp.(a) | 220 | 26,785 | ||||||
HEICO Corp. | 137 | 12,841 | ||||||
HEICO Corp., Class A | 359 | 28,716 | ||||||
Hexcel Corp. | 950 | 68,533 | ||||||
KeyW Holding Corp. (The)(a) | 1,602 | 11,855 | ||||||
Kratos Defense & Security Solutions Inc.(a) | 707 | 12,153 | ||||||
Mercury Systems Inc.(a) | 359 | 22,804 | ||||||
Moog Inc., Class A | 349 | 32,792 | ||||||
Teledyne Technologies Inc.(a) | 185 | 43,667 | ||||||
Wesco Aircraft Holdings Inc.(a) | 1,391 | 11,810 | ||||||
|
| |||||||
439,018 | ||||||||
Air Freight & Logistics — 0.2% | ||||||||
Echo Global Logistics Inc.(a) | 658 | 15,805 | ||||||
Hub Group Inc., Class A(a) | 362 | 15,559 | ||||||
|
| |||||||
31,364 | ||||||||
Auto Components — 1.0% | ||||||||
American Axle & Manufacturing Holdings Inc.(a) | 927 | 14,925 | ||||||
Cooper Tire & Rubber Co. | 288 | 9,204 | ||||||
Cooper-Standard Holdings Inc.(a) | 177 | 10,639 | ||||||
Dana Inc. | 576 | 11,376 | ||||||
Dorman Products Inc.(a) | 164 | 13,268 | ||||||
Fox Factory Holding Corp.(a) | 250 | 15,845 | ||||||
Gentex Corp. | 944 | 19,201 | ||||||
Gentherm Inc.(a) | 465 | 19,065 | ||||||
LCI Industries | 133 | 10,837 | ||||||
Modine Manufacturing Co.(a) | 973 | 14,624 | ||||||
Tenneco Inc., Class A | 845 | 29,237 | ||||||
Veoneer Inc.(a) | 478 | 14,608 | ||||||
Visteon Corp.(a) | 224 | 19,188 | ||||||
|
| |||||||
202,017 | ||||||||
Automobiles — 0.1% | ||||||||
Thor Industries Inc. | 266 | 17,176 | ||||||
|
| |||||||
Banks — 8.1% | ||||||||
Ameris Bancorp. | 311 | 12,679 | ||||||
BancFirst Corp. | 317 | 17,872 | ||||||
BancorpSouth Bank | 1,220 | 39,760 | ||||||
Bank of Hawaii Corp. | 1,112 | 91,440 | ||||||
Bank OZK | 978 | 32,078 | ||||||
BankUnited Inc. | 675 | 24,631 | ||||||
Banner Corp. | 336 | 20,876 | ||||||
BOK Financial Corp. | 232 | 20,982 | ||||||
Bryn Mawr Bank Corp. | 253 | 10,312 | ||||||
Cadence BanCorp. | 1,075 | 21,489 | ||||||
CBTX Inc. | 341 | 11,359 | ||||||
Chemical Financial Corp. | 555 | 25,436 | ||||||
Columbia Banking System Inc. | 672 | 25,455 | ||||||
Community Trust Bancorp. Inc. | 240 | 10,267 | ||||||
Cullen/Frost Bankers Inc. | 871 | 90,305 | ||||||
CVB Financial Corp. | 1,390 | 31,678 | ||||||
Equity Bancshares Inc., Class A(a) | 333 | 11,319 | ||||||
First Financial Bancorp. | 1,525 | 42,288 |
Security | Shares | Value | ||||||
Banks (continued) | ||||||||
First Financial Bankshares Inc. | 511 | $ | 33,138 | |||||
First Hawaiian Inc. | 407 | 10,973 | ||||||
First Interstate BancSystem Inc., Class A | 605 | 25,192 | ||||||
Fulton Financial Corp. | 3,115 | 53,516 | ||||||
Glacier Bancorp. Inc. | 809 | 35,450 | ||||||
Great Western Bancorp. Inc. | 947 | 35,560 | ||||||
Hancock Whitney Corp. | 388 | 16,948 | ||||||
Heartland Financial USA Inc. | 399 | 19,387 | ||||||
Heritage Financial Corp./WA | 458 | 15,077 | ||||||
HomeTrust Bancshares Inc. | 662 | 18,026 | ||||||
Independent Bank Corp./Rockland MA | 121 | 10,301 | ||||||
International Bancshares Corp. | 1,547 | 63,149 | ||||||
Investors Bancorp. Inc. | 2,904 | 36,503 | ||||||
LegacyTexas Financial Group Inc. | 430 | 17,944 | ||||||
Live Oak Bancshares Inc. | 610 | 9,888 | ||||||
MB Financial Inc. | 782 | 35,401 | ||||||
National Bank Holdings Corp., Class A | 673 | 24,315 | ||||||
NBT Bancorp. Inc. | 251 | 9,696 | ||||||
Old Line Bancshares Inc. | 840 | 24,058 | ||||||
Opus Bank | 1,071 | 24,387 | ||||||
PacWest Bancorp. | 290 | 11,896 | ||||||
Pinnacle Financial Partners Inc. | 592 | 34,744 | ||||||
Popular Inc. | 612 | 34,505 | ||||||
QCR Holdings Inc. | 483 | 17,267 | ||||||
ServisFirst Bancshares Inc. | 345 | 12,065 | ||||||
Simmons First National Corp., Class A | 1,036 | 27,796 | ||||||
South State Corp. | 315 | 22,378 | ||||||
Sterling Bancorp./DE | 694 | 14,109 | ||||||
Stock Yards Bancorp. Inc. | 473 | 16,848 | ||||||
Texas Capital Bancshares Inc.(a) | 517 | 31,552 | ||||||
TriState Capital Holdings Inc.(a) | 449 | 10,152 | ||||||
Triumph Bancorp. Inc.(a) | 301 | 10,195 | ||||||
Trustmark Corp. | 544 | 19,301 | ||||||
UMB Financial Corp. | 622 | 42,800 | ||||||
Umpqua Holdings Corp. | 1,998 | 36,324 | ||||||
Union Bankshares Corp. | 512 | 18,212 | ||||||
United Bankshares Inc./WV | 616 | 23,648 | ||||||
Webster Financial Corp. | 1,033 | 59,315 | ||||||
WesBanco Inc. | 278 | 11,796 | ||||||
Westamerica Bancorp. | 308 | 19,798 | ||||||
Western Alliance Bancorp.(a) | 1,026 | 47,473 | ||||||
Wintrust Financial Corp. | 459 | 33,815 | ||||||
|
| |||||||
1,615,124 | ||||||||
Beverages — 0.1% | ||||||||
Boston Beer Co. Inc. (The), Class A, NVS(a) | 37 | 11,565 | ||||||
|
| |||||||
Biotechnology — 5.1% | ||||||||
ACADIA Pharmaceuticals Inc.(a) | 857 | 22,710 | ||||||
Acceleron Pharma Inc.(a) | 270 | 11,891 | ||||||
Agios Pharmaceuticals Inc.(a) | 348 | 22,575 | ||||||
Aimmune Therapeutics Inc.(a) | 412 | 9,925 | ||||||
Alder Biopharmaceuticals Inc.(a)(b) | 731 | 9,371 | ||||||
Amicus Therapeutics Inc.(a) | 1,320 | 15,972 | ||||||
AnaptysBio Inc.(a)(b) | 146 | 10,055 | ||||||
Arena Pharmaceuticals Inc.(a) | 238 | 11,881 | ||||||
Array BioPharma Inc.(a) | 1,194 | 27,390 | ||||||
Arrowhead Pharmaceuticals Inc.(a) | 555 | 10,834 | ||||||
Atara Biotherapeutics Inc.(a) | 271 | 9,704 | ||||||
Audentes Therapeutics Inc.(a) | 405 | 12,401 | ||||||
BioCryst Pharmaceuticals Inc.(a) | 1,124 | 9,284 |
S C H E D U L E O F I N V E S T M E N T S | 21 |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® ESG MSCI USA Small-Cap ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Biotechnology (continued) | ||||||||
Biohaven Pharmaceutical Holding Co. Ltd.(a) | 219 | $ | 9,632 | |||||
Bluebird Bio Inc.(a)(b) | 346 | 53,706 | ||||||
Blueprint Medicines Corp.(a) | 240 | 19,726 | ||||||
Clovis Oncology Inc.(a) | 390 | 11,809 | ||||||
Coherus Biosciences Inc.(a) | 714 | 10,239 | ||||||
Denali Therapeutics Inc.(a) | 498 | 10,836 | ||||||
Dicerna Pharmaceuticals Inc.(a)(b) | 870 | 10,623 | ||||||
Eagle Pharmaceuticals Inc./DE(a) | 237 | 11,867 | ||||||
Emergent BioSolutions Inc.(a) | 150 | �� | 8,752 | |||||
Enanta Pharmaceuticals Inc.(a) | 97 | 9,946 | ||||||
Esperion Therapeutics Inc.(a)(b) | 213 | 9,819 | ||||||
Exact Sciences Corp.(a) | 643 | 58,513 | ||||||
Exelixis Inc.(a) | 1,489 | 33,339 | ||||||
FibroGen Inc.(a) | 515 | 29,767 | ||||||
Flexion Therapeutics Inc.(a)(b) | 679 | 9,384 | ||||||
Global Blood Therapeutics Inc.(a) | 361 | 18,952 | ||||||
Halozyme Therapeutics Inc.(a) | 879 | 15,163 | ||||||
Heron Therapeutics Inc.(a) | 360 | 9,529 | ||||||
Immunomedics Inc.(a) | 902 | 14,216 | ||||||
Insmed Inc.(a) | 603 | 17,879 | ||||||
Intercept Pharmaceuticals Inc.(a) | 126 | 12,567 | ||||||
Ionis Pharmaceuticals Inc.(a) | 746 | 52,959 | ||||||
Iovance Biotherapeutics Inc.(a)(b) | 1,051 | 10,794 | ||||||
Ironwood Pharmaceuticals Inc.(a) | 808 | 11,506 | ||||||
Karyopharm Therapeutics Inc.(a) | 1,080 | 4,460 | ||||||
Ligand Pharmaceuticals Inc.(a) | 136 | 16,875 | ||||||
Mirati Therapeutics Inc.(a) | 151 | 10,993 | ||||||
Momenta Pharmaceuticals Inc.(a) | 764 | 10,765 | ||||||
Myriad Genetics Inc.(a) | 316 | 9,805 | ||||||
Neurocrine Biosciences Inc.(a) | 499 | 38,548 | ||||||
OPKO Health Inc.(a) | 3,478 | 8,869 | ||||||
Portola Pharmaceuticals Inc.(a) | 321 | 9,858 | ||||||
Progenics Pharmaceuticals Inc.(a) | 2,030 | 8,973 | ||||||
PTC Therapeutics Inc.(a) | 335 | 11,571 | ||||||
REGENXBIO Inc.(a) | 207 | 10,708 | ||||||
Repligen Corp.(a) | 373 | 22,201 | ||||||
Sage Therapeutics Inc.(a)(b) | 287 | 45,705 | ||||||
Sangamo Therapeutics Inc.(a) | 1,132 | 10,199 | ||||||
Sarepta Therapeutics Inc.(a) | 373 | 53,802 | ||||||
Spark Therapeutics Inc.(a) | 368 | 41,694 | ||||||
Ultragenyx Pharmaceutical Inc.(a)(b) | 415 | 26,618 | ||||||
uniQure NV(a) | 266 | 14,361 | ||||||
Vanda Pharmaceuticals Inc.(a) | 471 | 9,533 | ||||||
Xencor Inc.(a) | 276 | 8,374 | ||||||
|
| |||||||
1,019,428 | ||||||||
Building Products — 0.7% | ||||||||
AAON Inc. | 394 | 15,705 | ||||||
Advanced Drainage Systems Inc. | 629 | 15,989 | ||||||
Armstrong Flooring Inc.(a) | 683 | 9,794 | ||||||
Armstrong World Industries Inc. | 495 | 36,224 | ||||||
Builders FirstSource Inc.(a) | 1,223 | 17,036 | ||||||
Resideo Technologies Inc.(a) | 844 | 21,691 | ||||||
Trex Co. Inc.(a) | 168 | 12,592 | ||||||
USG Corp. | 401 | 17,287 | ||||||
|
| |||||||
146,318 | ||||||||
Capital Markets — 2.2% | ||||||||
Ares Management Corp., Class A | 428 | 10,109 | ||||||
Donnelley Financial Solutions Inc.(a) | 643 | 9,137 | ||||||
Evercore Inc., Class A | 216 | 19,894 |
Security | Shares | Value | ||||||
Capital Markets (continued) | ||||||||
FactSet Research Systems Inc. | 426 | $ | 100,182 | |||||
Federated Investors Inc., Class B | 359 | 10,680 | ||||||
Interactive Brokers Group Inc., Class A | 215 | 11,875 | ||||||
INTL. FCStone Inc.(a) | 266 | 11,571 | ||||||
Janus Henderson Group PLC | 3,142 | 76,979 | ||||||
Legg Mason Inc. | 1,750 | 51,188 | ||||||
LPL Financial Holdings Inc. | 571 | 43,059 | ||||||
MarketAxess Holdings Inc. | 191 | 46,581 | ||||||
Moelis & Co., Class A | 238 | 10,617 | ||||||
Morningstar Inc. | 158 | 19,997 | ||||||
Stifel Financial Corp. | 194 | 10,559 | ||||||
Virtu Financial Inc., Class A | 457 | 11,489 | ||||||
|
| |||||||
443,917 | ||||||||
Chemicals — 1.3% | ||||||||
HB Fuller Co. | 602 | 30,389 | ||||||
Huntsman Corp. | 580 | 14,378 | ||||||
Ingevity Corp.(a) | 143 | 16,477 | ||||||
Innospec Inc. | 285 | 23,330 | ||||||
Kraton Corp.(a)(b) | 341 | 12,133 | ||||||
Minerals Technologies Inc. | 824 | 48,781 | ||||||
PolyOne Corp. | 303 | 9,884 | ||||||
RPM International Inc. | 535 | 30,960 | ||||||
Scotts Miracle-Gro Co. (The) | 144 | 11,794 | ||||||
Stepan Co. | 159 | 14,962 | ||||||
Trinseo SA | 476 | 23,890 | ||||||
Tronox Ltd., Class A | 917 | 10,848 | ||||||
Valvoline Inc. | 1,161 | 21,815 | ||||||
|
| |||||||
269,641 | ||||||||
Commercial Services & Supplies — 2.8% | ||||||||
ABM Industries Inc. | 537 | 19,149 | ||||||
ACCO Brands Corp. | 1,169 | 10,872 | ||||||
Brady Corp., Class A, NVS | 778 | 36,807 | ||||||
Brink’s Co. (The) | 203 | 16,021 | ||||||
Cimpress NV(a) | 175 | 14,438 | ||||||
Clean Harbors Inc.(a) | 195 | 13,260 | ||||||
Covanta Holding Corp. | 1,661 | 28,204 | ||||||
Deluxe Corp. | 209 | 9,725 | ||||||
Healthcare Services Group Inc. | 551 | 21,037 | ||||||
Herman Miller Inc. | 780 | 28,610 | ||||||
HNI Corp. | 255 | 9,851 | ||||||
Interface Inc. | 782 | 13,881 | ||||||
KAR Auction Services Inc. | 1,522 | 71,762 | ||||||
Knoll Inc. | 692 | 14,643 | ||||||
Matthews International Corp., Class A | 781 | 31,060 | ||||||
McGrath RentCorp | 336 | 20,106 | ||||||
Mobile Mini Inc. | 423 | 15,232 | ||||||
MSA Safety Inc. | 215 | 22,229 | ||||||
Pitney Bowes Inc. | 3,238 | 23,281 | ||||||
Quad/Graphics Inc. | 684 | 9,980 | ||||||
SP Plus Corp.(a) | 441 | 15,170 | ||||||
Steelcase Inc., Class A | 1,059 | 18,543 | ||||||
Team Inc.(a)(b) | 667 | 10,419 | ||||||
Tetra Tech Inc. | 559 | 33,551 | ||||||
UniFirst Corp./MA | 216 | 31,065 | ||||||
Viad Corp. | 417 | 24,144 | ||||||
|
| |||||||
563,040 | ||||||||
Communications Equipment — 1.2% | ||||||||
ADTRAN Inc. | 677 | 10,169 | ||||||
ARRIS International PLC(a) | 889 | 28,164 |
22 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® ESG MSCI USA Small-Cap ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Communications Equipment (continued) | ||||||||
Ciena Corp.(a) | 1,155 | $ | 49,272 | |||||
EchoStar Corp., Class A(a) | 240 | 9,254 | ||||||
Finisar Corp.(a) | 651 | 15,943 | ||||||
Infinera Corp.(a) | 2,117 | 10,818 | ||||||
InterDigital Inc. | 268 | 18,688 | ||||||
Lumentum Holdings Inc.(a) | 565 | 28,109 | ||||||
NETGEAR Inc.(a) | 279 | 10,002 | ||||||
NetScout Systems Inc.(a) | 498 | 13,630 | ||||||
Plantronics Inc. | 424 | 21,302 | ||||||
Ribbon Communications Inc.(a) | 1,709 | 8,801 | ||||||
Ubiquiti Networks Inc. | 73 | 10,540 | ||||||
Viavi Solutions Inc.(a) | 1,022 | 13,419 | ||||||
|
| |||||||
248,111 | ||||||||
Construction & Engineering — 1.9% | ||||||||
AECOM(a) | 2,367 | 73,282 | ||||||
Aegion Corp.(a) | 671 | 11,649 | ||||||
Arcosa Inc. | 316 | 10,583 | ||||||
Argan Inc. | 210 | 9,765 | ||||||
Comfort Systems USA Inc. | 590 | 31,636 | ||||||
Dycom Industries Inc.(a) | 158 | 7,123 | ||||||
EMCOR Group Inc. | 726 | 52,366 | ||||||
Granite Construction Inc. | 417 | 19,415 | ||||||
Great Lakes Dredge & Dock Corp.(a) | 1,318 | 11,730 | ||||||
KBR Inc. | 584 | 11,540 | ||||||
MasTec Inc.(a)(b) | 273 | 11,788 | ||||||
MYR Group Inc.(a) | 418 | 14,020 | ||||||
Quanta Services Inc. | 1,808 | 64,437 | ||||||
Valmont Industries Inc. | 255 | 34,830 | ||||||
Willscot Corp.(a) | 967 | 9,854 | ||||||
|
| |||||||
374,018 | ||||||||
Construction Materials — 0.1% | ||||||||
Summit Materials Inc., Class A(a) | 882 | 14,994 | ||||||
U.S. Concrete Inc.(a)(b) | 281 | 11,271 | ||||||
|
| |||||||
26,265 | ||||||||
Consumer Finance — 0.4% | ||||||||
Credit Acceptance Corp.(a) | 39 | 17,154 | ||||||
Encore Capital Group Inc.(a) | 311 | 10,636 | ||||||
Green Dot Corp., Class A(a) | 252 | 16,267 | ||||||
OneMain Holdings Inc. | 293 | 9,669 | ||||||
PRA Group Inc.(a) | 635 | 20,441 | ||||||
SLM Corp.(a) | 1,155 | 12,763 | ||||||
|
| |||||||
86,930 | ||||||||
Containers & Packaging — 1.1% | ||||||||
AptarGroup Inc. | 694 | 70,601 | ||||||
Bemis Co. Inc. | 318 | 16,822 | ||||||
Berry Global Group Inc.(a) | 641 | 33,633 | ||||||
Graphic Packaging Holding Co. | 791 | 9,634 | ||||||
Greif Inc., Class A, NVS | 303 | 12,181 | ||||||
Owens-Illinois Inc. | 902 | 17,968 | ||||||
Sonoco Products Co. | 887 | 51,348 | ||||||
|
| |||||||
212,187 | ||||||||
Distributors — 0.3% | ||||||||
Pool Corp. | 402 | 64,135 | ||||||
|
| |||||||
Diversified Consumer Services — 1.9% | ||||||||
Adtalem Global Education Inc.(a)(b) | 205 | 9,881 | ||||||
American Public Education Inc.(a) | 318 | 10,274 | ||||||
Bright Horizons Family Solutions Inc.(a) | 926 | 114,824 | ||||||
Carriage Services Inc. | 1,149 | 24,140 |
Security | Shares | Value | ||||||
Diversified Consumer Services (continued) | ||||||||
Chegg Inc.(a) | 263 | $ | 10,423 | |||||
frontdoor Inc.(a) | 503 | 16,096 | ||||||
Graham Holdings Co., Class B | 31 | 21,195 | ||||||
Grand Canyon Education Inc.(a) | 188 | 21,748 | ||||||
Houghton Mifflin Harcourt Co.(a) | 1,129 | 8,930 | ||||||
Laureate Education Inc., Class A(a) | 665 | 10,168 | ||||||
Service Corp. International/U.S. | 1,417 | 58,579 | ||||||
ServiceMaster Global Holdings Inc.(a) | 1,273 | 57,489 | ||||||
Sotheby’s(a) | 332 | 14,565 | ||||||
Weight Watchers International Inc.(a) | 329 | 6,656 | ||||||
|
| |||||||
384,968 | ||||||||
Diversified Financial Services — 0.1% | ||||||||
On Deck Capital Inc.(a) | 1,730 | 10,622 | ||||||
|
| |||||||
Diversified Telecommunication Services — 0.2% | ||||||||
Consolidated Communications Holdings Inc. | 955 | 9,483 | ||||||
Iridium Communications Inc.(a) | 566 | 12,050 | ||||||
ORBCOMM Inc.(a) | 1,085 | 7,649 | ||||||
Vonage Holdings Corp.(a) | 973 | 10,003 | ||||||
|
| |||||||
39,185 | ||||||||
Electric Utilities — 0.8% | ||||||||
Hawaiian Electric Industries Inc. | 1,391 | 53,247 | ||||||
IDACORP Inc. | 750 | 73,808 | ||||||
Portland General Electric Co. | 834 | 41,817 | ||||||
|
| |||||||
168,872 | ||||||||
Electrical Equipment — 0.8% | ||||||||
Atkore International Group Inc.(a) | 555 | 12,820 | ||||||
EnerSys | 452 | 33,367 | ||||||
Generac Holdings Inc.(a) | 346 | 17,840 | ||||||
Hubbell Inc. | 363 | 42,852 | ||||||
nVent Electric PLC | 583 | 16,021 | ||||||
Regal Beloit Corp. | 390 | 32,666 | ||||||
Sunrun Inc.(a) | 652 | 10,113 | ||||||
|
| |||||||
165,679 | ||||||||
Electronic Equipment, Instruments & Components — 3.5% | ||||||||
Anixter International Inc.(a) | 249 | 14,611 | ||||||
Avnet Inc. | 958 | 41,663 | ||||||
Badger Meter Inc. | 495 | 29,126 | ||||||
Belden Inc. | 279 | 17,239 | ||||||
Benchmark Electronics Inc. | 434 | 11,892 | ||||||
Coherent Inc.(a) | 185 | 24,620 | ||||||
CTS Corp. | 632 | 20,300 | ||||||
Dolby Laboratories Inc., Class A | 499 | 32,335 | ||||||
ePlus Inc.(a) | 110 | 9,838 | ||||||
Fabrinet(a) | 285 | 16,672 | ||||||
Insight Enterprises Inc.(a) | 389 | 21,714 | ||||||
Itron Inc.(a) | 358 | 18,978 | ||||||
Jabil Inc. | 440 | 12,496 | ||||||
KEMET Corp. | 510 | 9,664 | ||||||
Littelfuse Inc. | 154 | 29,736 | ||||||
Methode Electronics Inc. | 935 | 26,236 | ||||||
MTS Systems Corp. | 389 | 20,734 | ||||||
National Instruments Corp. | 1,613 | 75,392 | ||||||
Novanta Inc.(a) | 303 | 24,764 | ||||||
OSI Systems Inc.(a) | 301 | 26,142 | ||||||
Plexus Corp.(a) | 510 | 31,498 | ||||||
Rogers Corp.(a) | 148 | 22,977 | ||||||
Sanmina Corp.(a) | 308 | 9,838 | ||||||
SYNNEX Corp. | 311 | 30,515 |
S C H E D U L E O F I N V E S T M E N T S | 23 |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® ESG MSCI USA Small-Cap ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Electronic Equipment, Instruments & Components (continued) | ||||||||
Tech Data Corp.(a) | 320 | $ | 32,710 | |||||
Vishay Intertechnology Inc. | 1,005 | 22,030 | ||||||
Zebra Technologies Corp., Class A(a) | 353 | 70,780 | ||||||
|
| |||||||
704,500 | ||||||||
Energy Equipment & Services — 1.4% | ||||||||
Apergy Corp.(a) | 598 | 25,104 | ||||||
Archrock Inc. | 1,242 | 12,122 | ||||||
C&J Energy Services Inc.(a) | 675 | 11,657 | ||||||
Cactus Inc., Class A(a) | 342 | 12,401 | ||||||
Core Laboratories NV | 647 | 41,932 | ||||||
Dril-Quip Inc.(a)(b) | 254 | 10,823 | ||||||
Ensco PLC, Class A | 2,056 | 8,430 | ||||||
Exterran Corp.(a) | 566 | 9,662 | ||||||
Forum Energy Technologies Inc.(a) | 1,510 | 8,803 | ||||||
Helix Energy Solutions Group Inc.(a) | 1,352 | 10,005 | ||||||
Keane Group Inc.(a) | 894 | 9,852 | ||||||
McDermott International Inc.(a) | 1,854 | 15,722 | ||||||
Newpark Resources Inc.(a) | 1,420 | 12,553 | ||||||
Oceaneering International Inc.(a) | 1,288 | 19,900 | ||||||
Oil States International Inc.(a) | 581 | 9,958 | ||||||
Patterson-UTI Energy Inc. | 840 | 11,138 | ||||||
Superior Energy Services Inc.(a) | 2,246 | 10,511 | ||||||
Tidewater Inc.(a) | 432 | 9,910 | ||||||
U.S. Silica Holdings Inc. | 977 | 14,557 | ||||||
Weatherford International PLC(a)(b) | 11,585 | 7,479 | ||||||
|
| |||||||
272,519 | ||||||||
Entertainment — 0.7% | ||||||||
Cinemark Holdings Inc. | 1,485 | 55,881 | ||||||
IMAX Corp.(a) | 1,007 | 23,070 | ||||||
Lions Gate Entertainment Corp., Class A | 776 | 11,989 | ||||||
Madison Square Garden Co. (The), Class A(a) | 34 | 9,797 | ||||||
World Wrestling Entertainment Inc., Class A | 200 | 16,740 | ||||||
Zynga Inc., Class A(a) | 3,779 | 19,726 | ||||||
|
| |||||||
137,203 | ||||||||
Equity Real Estate Investment Trusts (REITs) — 9.1% | ||||||||
Agree Realty Corp. | 299 | 19,653 | ||||||
American Campus Communities Inc. | 1,541 | 69,437 | ||||||
Americold Realty Trust | 710 | 20,413 | ||||||
Apartment Investment & Management Co., Class A | 420 | 20,551 | ||||||
Armada Hoffler Properties Inc. | 1,135 | 17,366 | ||||||
Brandywine Realty Trust | 5,749 | 90,374 | ||||||
Brixmor Property Group Inc. | 3,410 | 59,539 | ||||||
CBL & Associates Properties Inc. | 4,402 | 9,420 | ||||||
Chatham Lodging Trust | 658 | 13,147 | ||||||
Colony Capital Inc. | 2,745 | 15,262 | ||||||
CorePoint Lodging Inc. | 769 | 10,743 | ||||||
CoreSite Realty Corp. | 475 | 48,569 | ||||||
Corporate Office Properties Trust | 2,293 | 59,595 | ||||||
Cousins Properties Inc. | 4,527 | 43,097 | ||||||
CubeSmart | 965 | 29,568 | ||||||
CyrusOne Inc. | 970 | 48,345 | ||||||
DiamondRock Hospitality Co. | 2,390 | 25,549 | ||||||
Douglas Emmett Inc. | 2,472 | 95,419 | ||||||
Easterly Government Properties Inc. | 3,582 | 64,404 | ||||||
Empire State Realty Trust Inc., Class A | 1,064 | 16,194 | ||||||
EPR Properties | 148 | 10,875 | ||||||
Equity LifeStyle Properties Inc. | 105 | 11,407 | ||||||
Essential Properties Realty Trust Inc. | 898 | 15,239 | ||||||
First Industrial Realty Trust Inc. | 782 | 26,213 |
Security | Shares | Value | ||||||
Equity Real Estate Investment Trusts (REITs) (continued) | ||||||||
Four Corners Property Trust Inc. | 873 | $ | 23,911 | |||||
Franklin Street Properties Corp. | 2,792 | 20,214 | ||||||
Gaming and Leisure Properties Inc. | 468 | 17,026 | ||||||
Hannon Armstrong Sustainable Infrastructure Capital Inc. | 471 | 11,596 | ||||||
Healthcare Trust of America Inc., Class A | 656 | 18,689 | ||||||
Highwoods Properties Inc. | 226 | 10,466 | ||||||
Hospitality Properties Trust | 1,001 | 27,097 | ||||||
Hudson Pacific Properties Inc. | 945 | 31,393 | ||||||
InfraREIT Inc.(a) | 538 | 11,486 | ||||||
JBG SMITH Properties | 1,350 | 54,391 | ||||||
Kilroy Realty Corp. | 1,556 | 114,693 | ||||||
Kite Realty Group Trust | 586 | 9,224 | ||||||
Lamar Advertising Co., Class A | 134 | 10,394 | ||||||
Life Storage Inc. | 396 | 38,650 | ||||||
Medical Properties Trust Inc. | 783 | 14,274 | ||||||
National Health Investors Inc. | 163 | 12,719 | ||||||
National Storage Affiliates Trust | 340 | 9,629 | ||||||
NexPoint Residential Trust Inc. | 256 | 9,201 | ||||||
NorthStar Realty Europe Corp. | 631 | 11,320 | ||||||
Office Properties Income Trust | 421 | 12,845 | ||||||
Omega Healthcare Investors Inc. | 273 | 9,801 | ||||||
Outfront Media Inc. | 1,026 | 23,023 | ||||||
Paramount Group Inc. | 1,995 | 28,648 | ||||||
Park Hotels & Resorts Inc. | 888 | 27,741 | ||||||
Pebblebrook Hotel Trust | 301 | 9,635 | ||||||
Piedmont Office Realty Trust Inc., Class A | 602 | 12,323 | ||||||
PotlatchDeltic Corp. | 377 | 13,568 | ||||||
QTS Realty Trust Inc., Class A | 535 | 22,326 | ||||||
Rayonier Inc. | 444 | 13,085 | ||||||
Rexford Industrial Realty Inc. | 1,023 | 35,068 | ||||||
RLJ Lodging Trust | 1,105 | 20,520 | ||||||
Sabra Health Care REIT Inc. | 1,831 | 33,178 | ||||||
Senior Housing Properties Trust | 757 | 9,803 | ||||||
SITE Centers Corp. | 742 | 9,906 | ||||||
STAG Industrial Inc. | 366 | 10,131 | ||||||
STORE Capital Corp. | 766 | 24,872 | ||||||
Sun Communities Inc. | 121 | 13,742 | ||||||
Sunstone Hotel Investors Inc. | 803 | 12,085 | ||||||
Tanger Factory Outlet Centers Inc. | 457 | 9,867 | ||||||
Taubman Centers Inc. | 195 | 10,409 | ||||||
Tier REIT Inc. | 1,095 | 26,554 | ||||||
Uniti Group Inc. | 1,514 | 14,595 | ||||||
VICI Properties Inc. | 3,495 | 74,478 | ||||||
Washington Prime Group Inc. | 1,921 | 11,103 | ||||||
Washington REIT | 533 | 14,119 | ||||||
Weingarten Realty Investors | 330 | 9,507 | ||||||
|
| |||||||
1,809,684 | ||||||||
Food & Staples Retailing — 1.0% | ||||||||
BJ’s Wholesale Club Holdings Inc.(a) | 707 | 17,901 | ||||||
Casey’s General Stores Inc. | 163 | 21,963 | ||||||
Performance Food Group Co.(a) | 895 | 34,484 | ||||||
PriceSmart Inc. | 430 | 27,804 | ||||||
SpartanNash Co. | 457 | 8,674 | ||||||
Sprouts Farmers Market Inc.(a) | 650 | 15,158 | ||||||
U.S. Foods Holding Corp.(a) | 1,592 | 56,102 | ||||||
United Natural Foods Inc.(a)(b) | 855 | 12,833 | ||||||
|
| |||||||
194,919 | ||||||||
Food Products — 0.9% | ||||||||
B&G Foods Inc. | 380 | 9,356 |
24 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® ESG MSCI USA Small-Cap ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Food Products (continued) | ||||||||
Darling Ingredients Inc.(a) | 1,524 | $ | 33,498 | |||||
Dean Foods Co. | 2,077 | 8,329 | ||||||
Flowers Foods Inc. | 1,066 | 21,821 | ||||||
Fresh Del Monte Produce Inc. | 356 | 9,854 | ||||||
Freshpet Inc.(a) | 393 | 16,199 | ||||||
Hain Celestial Group Inc. (The)(a) | 1,054 | 20,732 | ||||||
Post Holdings Inc.(a) | 311 | 31,685 | ||||||
Simply Good Foods Co. (The)(a) | 683 | 13,974 | ||||||
TreeHouse Foods Inc.(a) | 357 | 21,627 | ||||||
|
| |||||||
187,075 | ||||||||
Gas Utilities — 1.0% | ||||||||
Chesapeake Utilities Corp. | 148 | 13,321 | ||||||
National Fuel Gas Co. | 639 | 38,461 | ||||||
New Jersey Resources Corp. | 488 | 23,619 | ||||||
Northwest Natural Holding Co. | 307 | 19,716 | ||||||
ONE Gas Inc. | 257 | 22,218 | ||||||
South Jersey Industries Inc. | 845 | 24,463 | ||||||
Southwest Gas Holdings Inc. | 575 | 47,115 | ||||||
Spire Inc. | 134 | 10,629 | ||||||
|
| |||||||
199,542 | ||||||||
Health Care Equipment & Supplies — 3.4% | ||||||||
AngioDynamics Inc.(a) | 456 | 10,219 | ||||||
AtriCure Inc.(a)(b) | 404 | 12,904 | ||||||
Atrion Corp. | 13 | 10,223 | ||||||
Avanos Medical Inc.(a)(b) | 210 | 9,887 | ||||||
Cantel Medical Corp. | 176 | 12,940 | ||||||
Cardiovascular Systems Inc.(a) | 346 | 12,238 | ||||||
CryoLife Inc.(a) | 368 | 10,885 | ||||||
GenMark Diagnostics Inc.(a) | 1,577 | 12,127 | ||||||
Glaukos Corp.(a) | 243 | 18,023 | ||||||
Globus Medical Inc., Class A(a) | 510 | 24,832 | ||||||
Haemonetics Corp.(a) | 356 | 30,926 | ||||||
Heska Corp.(a) | 108 | 8,833 | ||||||
Hill-Rom Holdings Inc. | 237 | 25,134 | ||||||
Inogen Inc.(a) | 103 | 11,068 | ||||||
Insulet Corp.(a) | 261 | 24,511 | ||||||
Integer Holdings Corp.(a) | 153 | 13,917 | ||||||
Integra LifeSciences Holdings Corp.(a) | 215 | 11,844 | ||||||
iRhythm Technologies Inc.(a) | 111 | 10,633 | ||||||
LeMaitre Vascular Inc. | 396 | 11,848 | ||||||
LivaNova PLC(a) | 268 | 24,978 | ||||||
Merit Medical Systems Inc.(a) | 505 | 28,144 | ||||||
Neogen Corp.(a) | 177 | 10,967 | ||||||
Nevro Corp.(a) | 205 | 9,444 | ||||||
Novocure Ltd.(a) | 331 | 17,778 | ||||||
NuVasive Inc.(a) | 264 | 15,550 | ||||||
OraSure Technologies Inc.(a) | 1,012 | 10,879 | ||||||
Orthofix Medical Inc.(a) | 231 | 14,114 | ||||||
Penumbra Inc.(a)(b) | 234 | 31,279 | ||||||
Quidel Corp.(a) | 236 | 15,472 | ||||||
STAAR Surgical Co.(a) | 329 | 12,107 | ||||||
STERIS PLC | 592 | 71,608 | ||||||
Tactile Systems Technology Inc.(a) | 152 | 11,554 | ||||||
Tandem Diabetes Care Inc.(a) | 352 | 23,081 | ||||||
Varex Imaging Corp.(a) | 317 | 9,966 | ||||||
West Pharmaceutical Services Inc. | 682 | 71,439 | ||||||
Wright Medical Group NV(a) | 404 | 12,649 | ||||||
|
| |||||||
674,001 |
Security | Shares | Value | ||||||
Health Care Providers & Services — 2.5% | ||||||||
Acadia Healthcare Co. Inc.(a) | 390 | $ | 10,253 | |||||
Addus HomeCare Corp.(a)(b) | 161 | 10,821 | ||||||
Amedisys Inc.(a) | 198 | 24,611 | ||||||
AMN Healthcare Services Inc.(a) | 464 | 23,205 | ||||||
BioTelemetry Inc.(a) | 255 | 19,054 | ||||||
Brookdale Senior Living Inc.(a) | 1,434 | 9,694 | ||||||
Chemed Corp. | 78 | 25,701 | ||||||
Civitas Solutions Inc.(a) | 561 | 9,963 | ||||||
CorVel Corp.(a) | 148 | 9,960 | ||||||
Cross Country Healthcare Inc.(a) | 994 | 8,688 | ||||||
Diplomat Pharmacy Inc.(a) | 728 | 4,696 | ||||||
Encompass Health Corp. | 720 | 45,461 | ||||||
Ensign Group Inc. (The) | 285 | 14,093 | ||||||
HealthEquity Inc.(a)(b) | 238 | 19,154 | ||||||
LHC Group Inc.(a) | 173 | 18,976 | ||||||
MEDNAX Inc.(a) | 690 | 22,708 | ||||||
Molina Healthcare Inc.(a) | 266 | 35,812 | ||||||
National Research Corp. | 473 | 18,414 | ||||||
Owens & Minor Inc.(b) | 1,292 | 8,062 | ||||||
Patterson Companies Inc. | 1,645 | 37,095 | ||||||
Premier Inc., Class A(a) | 750 | 27,435 | ||||||
Providence Service Corp. (The)(a)(b) | 261 | 18,614 | ||||||
R1 RCM Inc.(a)(b) | 1,408 | 13,925 | ||||||
Select Medical Holdings Corp.(a) | 1,049 | 15,546 | ||||||
Tenet Healthcare Corp.(a) | 434 | 12,404 | ||||||
Tivity Health Inc.(a) | 858 | 18,361 | ||||||
U.S. Physical Therapy Inc. | 186 | 20,505 | ||||||
|
| |||||||
503,211 | ||||||||
Health Care Technology — 0.6% | ||||||||
Allscripts Healthcare Solutions Inc.(a) | 1,996 | 21,397 | ||||||
HMS Holdings Corp.(a) | 508 | 17,506 | ||||||
Medidata Solutions Inc.(a) | 398 | 29,858 | ||||||
Omnicell Inc.(a) | 132 | 11,214 | ||||||
Teladoc Health Inc.(a) | 384 | 24,714 | ||||||
Vocera Communications Inc.(a) | 323 | 10,704 | ||||||
|
| |||||||
115,393 | ||||||||
Hotels, Restaurants & Leisure — 2.5% | ||||||||
BBX Capital Corp. | 607 | 3,715 | ||||||
Boyd Gaming Corp. | 736 | 21,903 | ||||||
Brinker International Inc. | 387 | 17,713 | ||||||
Caesars Entertainment Corp.(a)(b) | 4,351 | 37,506 | ||||||
Churchill Downs Inc. | 371 | 34,800 | ||||||
Cracker Barrel Old Country Store Inc. | 73 | 11,825 | ||||||
Dave & Buster’s Entertainment Inc. | 225 | 11,549 | ||||||
Dine Brands Global Inc. | 157 | 15,574 | ||||||
Dunkin’ Brands Group Inc. | 890 | 63,591 | ||||||
El Pollo Loco Holdings Inc.(a) | 1,146 | 17,339 | ||||||
Eldorado Resorts Inc.(a)(b) | 326 | 15,716 | ||||||
Hilton Grand Vacations Inc.(a) | 359 | 11,413 | ||||||
International Speedway Corp., Class A | 314 | 13,581 | ||||||
Jack in the Box Inc. | 147 | 11,839 | ||||||
Marriott Vacations Worldwide Corp. | 211 | 20,539 | ||||||
Penn National Gaming Inc.(a) | 812 | 20,178 | ||||||
Planet Fitness Inc., Class A(a) | 381 | 22,395 | ||||||
PlayAGS Inc.(a) | 417 | 9,920 | ||||||
Scientific Games Corp./DE, Class A(a) | 385 | 11,188 | ||||||
Shake Shack Inc., Class A(a) | 332 | 18,306 | ||||||
Six Flags Entertainment Corp. | 465 | 25,905 | ||||||
Texas Roadhouse Inc. | 177 | 11,206 |
S C H E D U L E O F I N V E S T M E N T S | 25 |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® ESG MSCI USA Small-Cap ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Hotels, Restaurants & Leisure (continued) | ||||||||
Wendy’s Co. (The) | 1,454 | $ | 25,198 | |||||
Wingstop Inc. | 147 | 9,792 | ||||||
Wyndham Destinations Inc. | 285 | 12,834 | ||||||
Wyndham Hotels & Resorts Inc. | 493 | 25,917 | ||||||
|
| |||||||
501,442 | ||||||||
Household Durables — 1.1% | ||||||||
Century Communities Inc.(a) | 420 | 9,589 | ||||||
Ethan Allen Interiors Inc. | 505 | 10,140 | ||||||
Green Brick Partners Inc.(a) | 1,096 | 9,765 | ||||||
Helen of Troy Ltd.(a) | 272 | 30,494 | ||||||
iRobot Corp.(a) | 240 | 30,014 | ||||||
KB Home | 791 | 18,043 | ||||||
La-Z-Boy Inc. | 387 | 13,317 | ||||||
LGI Homes Inc.(a)(b) | 212 | 12,529 | ||||||
MDC Holdings Inc. | 370 | 10,671 | ||||||
Meritage Homes Corp.(a) | 255 | 11,182 | ||||||
Tempur Sealy International Inc.(a) | 198 | 11,526 | ||||||
Toll Brothers Inc. | 539 | 19,188 | ||||||
TopBuild Corp.(a) | 193 | 11,483 | ||||||
TRI Pointe Group Inc.(a) | 760 | 9,576 | ||||||
Tupperware Brands Corp. | 417 | 12,556 | ||||||
|
| |||||||
220,073 | ||||||||
Household Products — 0.2% | ||||||||
Energizer Holdings Inc. | 495 | 22,711 | ||||||
Spectrum Brands Holdings Inc. | 191 | 10,346 | ||||||
|
| |||||||
33,057 | ||||||||
Independent Power and Renewable Electricity Producers — 0.7% | ||||||||
Clearway Energy Inc., Class C | 1,497 | 22,440 | ||||||
NextEra Energy Partners LP | 408 | 17,622 | ||||||
Ormat Technologies Inc. | 665 | 37,127 | ||||||
Pattern Energy Group Inc., Class A | 1,642 | 34,252 | ||||||
TerraForm Power Inc., Class A | 1,734 | 21,692 | ||||||
|
| |||||||
133,133 | ||||||||
Industrial Conglomerates — 0.4% | ||||||||
Carlisle Companies Inc. | 538 | 66,217 | ||||||
Raven Industries Inc. | 448 | 17,884 | ||||||
|
| |||||||
84,101 | ||||||||
Insurance — 1.5% | ||||||||
American Equity Investment Life Holding Co. | 326 | 10,318 | ||||||
Assured Guaranty Ltd. | 390 | 16,286 | ||||||
Axis Capital Holdings Ltd. | 444 | 25,339 | ||||||
Brown & Brown Inc. | 1,006 | 29,798 | ||||||
Crawford & Co., Class A, NVS | 1,035 | 10,391 | ||||||
eHealth Inc.(a) | 163 | 8,706 | ||||||
Erie Indemnity Co., Class A, NVS | 159 | 28,337 | ||||||
First American Financial Corp. | 1,224 | 62,167 | ||||||
Genworth Financial Inc., Class A(a) | 3,750 | 14,513 | ||||||
Hanover Insurance Group Inc. (The) | 289 | 34,307 | ||||||
Horace Mann Educators Corp. | 134 | 5,252 | ||||||
Kemper Corp. | 159 | 13,213 | ||||||
Old Republic International Corp. | 564 | 11,765 | ||||||
Primerica Inc. | 54 | 6,752 | ||||||
ProAssurance Corp. | 355 | 14,413 | ||||||
Selective Insurance Group Inc. | 118 | 7,783 | ||||||
Universal Insurance Holdings Inc. | 254 | 9,916 | ||||||
|
| |||||||
309,256 | ||||||||
Interactive Media & Services — 0.1% | ||||||||
ANGI Homeservices Inc., Class A(a)(b) | 573 | 9,409 |
Security | Shares | Value | ||||||
Interactive Media & Services (continued) | ||||||||
Yelp Inc.(a) | 312 | $ | 11,625 | |||||
|
| |||||||
21,034 | ||||||||
Internet & Direct Marketing Retail — 0.5% | ||||||||
Etsy Inc.(a) | 680 | 48,464 | ||||||
Groupon Inc.(a) | 2,850 | 9,320 | ||||||
Nutrisystem Inc. | 297 | 12,854 | ||||||
Quotient Technology Inc.(a) | 962 | 9,649 | ||||||
Shutterfly Inc.(a) | 408 | 18,282 | ||||||
Stamps.com Inc.(a) | 68 | 6,391 | ||||||
|
| |||||||
104,960 | ||||||||
IT Services — 2.9% | ||||||||
Black Knight Inc.(a) | 887 | 46,346 | ||||||
Booz Allen Hamilton Holding Corp. | 1,121 | 59,256 | ||||||
CACI International Inc., Class A(a) | 141 | 25,699 | ||||||
Carbonite Inc.(a) | 417 | 9,703 | ||||||
Cardtronics PLC, Class A(a) | 355 | 10,476 | ||||||
Conduent Inc.(a) | 2,191 | 32,032 | ||||||
CoreLogic Inc.(a) | 251 | 9,204 | ||||||
CSG Systems International Inc. | 241 | 10,013 | ||||||
EPAM Systems Inc.(a) | 214 | 34,621 | ||||||
Euronet Worldwide Inc.(a) | 212 | 28,476 | ||||||
Everi Holdings Inc.(a) | 1,297 | 9,974 | ||||||
ExlService Holdings Inc.(a) | 266 | 16,332 | ||||||
Limelight Networks Inc.(a) | 3,316 | 9,683 | ||||||
LiveRamp Holdings Inc.(a) | 342 | 18,382 | ||||||
MAXIMUS Inc. | 148 | 10,461 | ||||||
Perspecta Inc. | 809 | 17,070 | ||||||
Science Applications International Corp. | 351 | 26,220 | ||||||
Sykes Enterprises Inc.(a) | 771 | 22,814 | ||||||
Travelport Worldwide Ltd. | 2,065 | 32,462 | ||||||
TTEC Holdings Inc. | 284 | 9,730 | ||||||
Twilio Inc., Class A(a) | 604 | 73,501 | ||||||
Virtusa Corp.(a) | 354 | 17,866 | ||||||
WEX Inc.(a) | 333 | 59,294 | ||||||
|
| |||||||
589,615 | ||||||||
Leisure Products — 0.1% | ||||||||
Callaway Golf Co. | 989 | 17,021 | ||||||
|
| |||||||
Life Sciences Tools & Services — 1.2% | ||||||||
Bio-Rad Laboratories Inc., Class A(a) | 62 | 16,796 | ||||||
Bio-Techne Corp. | 169 | 32,769 | ||||||
Bruker Corp. | 907 | 34,657 | ||||||
Charles River Laboratories International Inc.(a) | 107 | 15,212 | ||||||
Luminex Corp. | 748 | 19,059 | ||||||
Medpace Holdings Inc.(a) | 141 | 7,748 | ||||||
NeoGenomics Inc.(a) | 672 | 13,171 | ||||||
PerkinElmer Inc. | 743 | 69,961 | ||||||
PRA Health Sciences Inc.(a) | 259 | 27,708 | ||||||
Syneos Health Inc.(a) | 281 | 11,737 | ||||||
|
| |||||||
248,818 | ||||||||
Machinery — 4.2% | ||||||||
Actuant Corp., Class A | 661 | 16,161 | ||||||
AGCO Corp. | 485 | 32,776 | ||||||
Alamo Group Inc. | 150 | 14,406 | ||||||
Allison Transmission Holdings Inc. | 759 | 37,722 | ||||||
Barnes Group Inc. | 551 | 31,997 | ||||||
Briggs & Stratton Corp. | 896 | 11,747 | ||||||
Chart Industries Inc.(a) | 238 | 21,011 | ||||||
Crane Co. | 118 | 9,979 |
26 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® ESG MSCI USA Small-Cap ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Machinery (continued) | ||||||||
Donaldson Co. Inc. | 1,206 | $ | 62,217 | |||||
Douglas Dynamics Inc. | 275 | 11,599 | ||||||
ESCO Technologies Inc. | 342 | 23,663 | ||||||
Evoqua Water Technologies Corp.(a) | 894 | 12,140 | ||||||
Federal Signal Corp. | 581 | 14,281 | ||||||
Franklin Electric Co. Inc. | 551 | 29,319 | ||||||
Gardner Denver Holdings Inc.(a) | 582 | 15,627 | ||||||
Gates Industrial Corp. PLC(a) | 673 | 10,835 | ||||||
Graco Inc. | 380 | 17,845 | ||||||
Harsco Corp.(a) | 458 | 10,250 | ||||||
Hillenbrand Inc. | 331 | 14,660 | ||||||
Hyster-Yale Materials Handling Inc. | 183 | 12,382 | ||||||
ITT Inc. | 493 | 28,476 | ||||||
John Bean Technologies Corp. | 166 | 15,554 | ||||||
Kennametal Inc. | 417 | 15,717 | ||||||
Lincoln Electric Holdings Inc. | 116 | 10,025 | ||||||
Lindsay Corp. | 134 | 12,391 | ||||||
Lydall Inc.(a) | 361 | 10,162 | ||||||
Meritor Inc.(a) | 756 | 16,844 | ||||||
Navistar International Corp.(a) | 530 | 20,336 | ||||||
Nordson Corp. | 182 | 24,708 | ||||||
Oshkosh Corp. | 602 | 46,842 | ||||||
Proto Labs Inc.(a)(b) | 170 | 19,208 | ||||||
Tennant Co. | 163 | 10,302 | ||||||
Terex Corp. | 466 | 15,653 | ||||||
Timken Co. (The) | 241 | 10,457 | ||||||
Toro Co. (The) | 742 | 50,886 | ||||||
TriMas Corp.(a) | 491 | 15,874 | ||||||
Wabash National Corp. | 673 | 9,987 | ||||||
Watts Water Technologies Inc., Class A | 233 | 18,766 | ||||||
Welbilt Inc.(a) | 1,347 | 21,512 | ||||||
Woodward Inc. | 470 | 45,280 | ||||||
|
| |||||||
829,597 | ||||||||
Media — 1.5% | ||||||||
Cable One Inc. | 26 | 24,674 | ||||||
comScore Inc.(a) | 599 | 13,064 | ||||||
Entercom Communications Corp., Class A | 1,500 | 9,240 | ||||||
Gannett Co. Inc. | 1,426 | 16,741 | ||||||
GCI Liberty Inc., Class A(a) | 501 | 26,824 | ||||||
Gray Television Inc.(a) | 565 | 12,379 | ||||||
Hemisphere Media Group Inc.(a) | 1,528 | 21,239 | ||||||
John Wiley & Sons Inc., Class A | 472 | 24,492 | ||||||
Liberty Latin America Ltd., Class C, NVS(a)(b) | 781 | 15,144 | ||||||
Loral Space & Communications Inc.(a) | 285 | 11,659 | ||||||
Meredith Corp. | 206 | 11,798 | ||||||
National CineMedia Inc. | 1,368 | 10,588 | ||||||
New York Times Co. (The), Class A | 1,140 | 37,449 | ||||||
Nexstar Media Group Inc., Class A | 132 | 12,900 | ||||||
Scholastic Corp., NVS | 235 | 9,943 | ||||||
Sinclair Broadcast Group Inc., Class A | 307 | 11,083 | ||||||
TEGNA Inc. | 792 | 10,431 | ||||||
Tribune Media Co., Class A | 474 | 21,913 | ||||||
|
| |||||||
301,561 | ||||||||
Metals & Mining — 1.3% | ||||||||
Alcoa Corp.(a) | 1,280 | 37,760 | ||||||
Century Aluminum Co.(a) | 1,161 | 10,020 | ||||||
Cleveland-Cliffs Inc. | 1,738 | 19,275 | ||||||
Commercial Metals Co. | 1,037 | 17,162 | ||||||
Compass Minerals International Inc. | 344 | 18,019 |
Security | Shares | Value | ||||||
Metals & Mining (continued) | ||||||||
Reliance Steel & Aluminum Co. | 821 | $ | 73,274 | |||||
Royal Gold Inc. | 686 | 60,649 | ||||||
Schnitzer Steel Industries Inc., Class A | 797 | 19,367 | ||||||
U.S. Steel Corp. | 505 | 11,317 | ||||||
|
| |||||||
266,843 | ||||||||
Mortgage Real Estate Investment — 0.7% | ||||||||
Apollo Commercial Real Estate Finance Inc. | 1,497 | 27,185 | ||||||
Capstead Mortgage Corp. | 1,256 | 10,425 | ||||||
Chimera Investment Corp. | 846 | 15,643 | ||||||
Granite Point Mortgage Trust Inc. | 612 | 11,640 | ||||||
New Residential Investment Corp. | 841 | 13,910 | ||||||
Ready Capital Corp. | 643 | 10,372 | ||||||
Redwood Trust Inc. | 853 | 13,051 | ||||||
Starwood Property Trust Inc. | 1,461 | 32,770 | ||||||
|
| |||||||
134,996 | ||||||||
Multi-Utilities — 0.4% | ||||||||
Avista Corp. | 1,323 | 53,462 | ||||||
Black Hills Corp. | 143 | 10,150 | ||||||
MDU Resources Group Inc. | 911 | 24,069 | ||||||
|
| |||||||
87,681 | ||||||||
Multiline Retail — 0.1% | ||||||||
Big Lots Inc. | 377 | 11,887 | ||||||
Ollie’s Bargain Outlet Holdings Inc.(a) | 114 | 10,057 | ||||||
|
| |||||||
21,944 | ||||||||
Oil, Gas & Consumable Fuels — 2.6% | ||||||||
Antero Resources Corp.(a) | 1,322 | 11,449 | ||||||
California Resources Corp.(a)(b) | 463 | 10,950 | ||||||
Callon Petroleum Co.(a) | 1,813 | 13,869 | ||||||
Carrizo Oil & Gas Inc.(a) | 785 | 8,619 | ||||||
Centennial Resource Development Inc./DE, Class A(a) | 766 | 6,948 | ||||||
Chesapeake Energy Corp.(a) | 7,861 | 23,269 | ||||||
Clean Energy Fuels Corp.(a) | 5,264 | 12,055 | ||||||
CNX Resources Corp.(a) | 973 | 10,314 | ||||||
CONSOL Energy Inc.(a) | 279 | 10,588 | ||||||
Delek U.S. Holdings Inc. | 574 | 20,308 | ||||||
Denbury Resources Inc.(a) | 5,411 | 10,389 | ||||||
EnLink Midstream LLC | 1,743 | 19,434 | ||||||
EQT Corp. | 1,862 | 33,739 | ||||||
Equitrans Midstream Corp.(a) | 1,051 | 18,540 | ||||||
Green Plains Inc. | 648 | 10,109 | ||||||
Gulfport Energy Corp.(a) | 1,237 | 9,475 | ||||||
Kosmos Energy Ltd.(a) | 3,827 | 24,493 | ||||||
Matador Resources Co.(a) | 515 | 9,579 | ||||||
Murphy Oil Corp. | 548 | 15,837 | ||||||
Oasis Petroleum Inc.(a) | 1,894 | 10,587 | ||||||
PBF Energy Inc., Class A | 707 | 21,966 | ||||||
PDC Energy Inc.(a) | 375 | 13,901 | ||||||
Peabody Energy Corp. | 621 | 19,158 | ||||||
QEP Resources Inc.(a) | 1,400 | 10,864 | ||||||
Range Resources Corp. | 1,397 | 14,948 | ||||||
Renewable Energy Group Inc.(a) | 377 | 10,017 | ||||||
SM Energy Co. | 838 | 13,693 | ||||||
Southwestern Energy Co.(a)(b) | 3,893 | 16,467 | ||||||
Tallgrass Energy LP | 741 | 16,769 | ||||||
Tellurian Inc.(a) | 965 | 9,901 | ||||||
Texas Pacific Land Trust | 29 | 21,565 | ||||||
Whiting Petroleum Corp.(a) | 410 | 9,992 | ||||||
World Fuel Services Corp. | 617 | 17,085 |
S C H E D U L E O F I N V E S T M E N T S | 27 |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® ESG MSCI USA Small-Cap ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Oil, Gas & Consumable Fuels (continued) | ||||||||
WPX Energy Inc.(a) | 2,216 | $ | 27,345 | |||||
|
| |||||||
514,222 | ||||||||
Paper & Forest Products — 0.5% | ||||||||
Boise Cascade Co. | 1,371 | 38,237 | ||||||
Domtar Corp. | 678 | 34,517 | ||||||
Louisiana-Pacific Corp. | 1,000 | 25,270 | ||||||
|
| |||||||
98,024 | ||||||||
Personal Products — 0.5% | ||||||||
Avon Products Inc.(a) | 3,812 | 11,779 | ||||||
Edgewell Personal Care Co.(a) | 255 | 11,312 | ||||||
Herbalife Nutrition Ltd.(a) | 754 | 42,299 | ||||||
Medifast Inc. | 141 | 17,968 | ||||||
Nu Skin Enterprises Inc., Class A | 224 | 13,465 | ||||||
USANA Health Sciences Inc.(a) | 95 | 9,357 | ||||||
|
| |||||||
106,180 | ||||||||
Pharmaceuticals — 1.4% | ||||||||
Aclaris Therapeutics Inc.(a) | 1,341 | 8,690 | ||||||
Aerie Pharmaceuticals Inc.(a) | 302 | 14,094 | ||||||
Amneal Pharmaceuticals Inc.(a) | 724 | 9,796 | ||||||
Catalent Inc.(a) | 976 | 42,183 | ||||||
Corcept Therapeutics Inc.(a) | 843 | 10,512 | ||||||
Cymabay Therapeutics Inc.(a) | 1,078 | 12,731 | ||||||
Endo International PLC(a) | 1,152 | 12,660 | ||||||
Horizon Pharma PLC(a) | 1,008 | 29,242 | ||||||
Intersect ENT Inc.(a) | 432 | 14,684 | ||||||
Intra-Cellular Therapies Inc.(a) | 712 | 9,697 | ||||||
Mallinckrodt PLC(a) | 456 | 11,382 | ||||||
Medicines Co. (The)(a) | 513 | 12,656 | ||||||
MyoKardia Inc.(a) | 226 | 10,136 | ||||||
Pacira Pharmaceuticals Inc./DE(a) | 245 | 10,089 | ||||||
Reata Pharmaceuticals Inc., Class A(a) | 147 | 13,868 | ||||||
Revance Therapeutics Inc.(a)(b) | 562 | 9,520 | ||||||
Supernus Pharmaceuticals Inc.(a) | 314 | 12,824 | ||||||
TherapeuticsMD Inc.(a) | 1,761 | 10,073 | ||||||
Theravance Biopharma Inc.(a) | 450 | 10,921 | ||||||
Zogenix Inc.(a) | 297 | 15,661 | ||||||
|
| |||||||
281,419 | ||||||||
Professional Services — 1.4% | ||||||||
ASGN Inc.(a) | 337 | 21,706 | ||||||
Exponent Inc. | 212 | 12,006 | ||||||
FTI Consulting Inc.(a) | 407 | 30,183 | ||||||
GP Strategies Corp.(a) | 659 | 11,032 | ||||||
Huron Consulting Group Inc.(a) | 178 | 8,156 | ||||||
ICF International Inc. | 273 | 20,617 | ||||||
InnerWorkings Inc.(a) | 1,835 | 8,900 | ||||||
Insperity Inc. | 263 | 33,209 | ||||||
Kelly Services Inc., Class A, NVS | 1,024 | 24,709 | ||||||
Korn Ferry | 447 | 21,809 | ||||||
Navigant Consulting Inc. | 765 | 15,751 | ||||||
Resources Connection Inc. | 569 | 9,884 | ||||||
TriNet Group Inc.(a) | 525 | 32,177 | ||||||
TrueBlue Inc.(a) | 751 | 17,288 | ||||||
WageWorks Inc.(a) | 267 | 8,784 | ||||||
|
| |||||||
276,211 | ||||||||
Real Estate Management & Development — 0.8% | ||||||||
Cushman & Wakefield PLC(a) | 1,169 | 21,428 | ||||||
HFF Inc., Class A | 255 | 11,526 | ||||||
Howard Hughes Corp. (The)(a)(b) | 381 | 42,436 | ||||||
Kennedy-Wilson Holdings Inc. | 690 | 14,338 |
Security | Shares | Value | ||||||
Real Estate Management & Development (continued) | ||||||||
Marcus & Millichap Inc.(a) | 684 | $ | 26,416 | |||||
Realogy Holdings Corp. | 836 | 11,370 | ||||||
RMR Group Inc. (The), Class A | 148 | 10,589 | ||||||
St. Joe Co. (The)(a) | 842 | 13,085 | ||||||
Tejon Ranch Co.(a) | 513 | 9,485 | ||||||
|
| |||||||
160,673 | ||||||||
Road & Rail — 0.7% | ||||||||
ArcBest Corp. | 312 | 10,867 | ||||||
Avis Budget Group Inc.(a) | 518 | 18,555 | ||||||
Genesee & Wyoming Inc., Class A(a) | 405 | 33,210 | ||||||
Hertz Global Holdings Inc.(a) | 578 | 11,040 | ||||||
Landstar System Inc. | 129 | 14,020 | ||||||
Ryder System Inc. | 715 | 44,444 | ||||||
|
| |||||||
132,136 | ||||||||
Semiconductors & Semiconductor Equipment — 2.8% | ||||||||
Brooks Automation Inc. | 524 | 16,826 | ||||||
Cabot Microelectronics Corp. | 365 | 41,281 | ||||||
Cirrus Logic Inc.(a) | 765 | 30,699 | ||||||
Cree Inc.(a) | 833 | 45,324 | ||||||
Cypress Semiconductor Corp. | 1,971 | 30,413 | ||||||
Entegris Inc. | 986 | 34,835 | ||||||
First Solar Inc.(a) | 610 | 32,056 | ||||||
Ichor Holdings Ltd.(a) | 456 | 9,562 | ||||||
Inphi Corp.(a) | 258 | 11,151 | ||||||
Integrated Device Technology Inc.(a) | 737 | 35,619 | ||||||
Kulicke & Soffa Industries Inc. | 1,037 | 24,183 | ||||||
Lattice Semiconductor Corp.(a) | 898 | 10,596 | ||||||
Mellanox Technologies Ltd.(a)(b) | 320 | 34,381 | ||||||
MKS Instruments Inc. | 207 | 17,154 | ||||||
Nanometrics Inc.(a) | 461 | 13,120 | ||||||
Power Integrations Inc. | 219 | 16,000 | ||||||
Rambus Inc.(a) | 981 | 10,075 | ||||||
Semtech Corp.(a) | 377 | 20,750 | ||||||
Silicon Laboratories Inc.(a) | 306 | 24,792 | ||||||
SolarEdge Technologies Inc.(a)(b) | 252 | 10,650 | ||||||
Teradyne Inc. | 910 | 37,155 | ||||||
Universal Display Corp. | 230 | 34,325 | ||||||
Versum Materials Inc. | 263 | 12,887 | ||||||
|
| |||||||
553,834 | ||||||||
Software — 5.9% | ||||||||
2U Inc.(a)(b) | 332 | 24,468 | ||||||
8x8 Inc.(a) | 536 | 10,543 | ||||||
ACI Worldwide Inc.(a) | 980 | 31,233 | ||||||
Aspen Technology Inc.(a) | 216 | 21,753 | ||||||
Avaya Holdings Corp.(a)(b) | 1,031 | 15,970 | ||||||
Benefitfocus Inc.(a) | 169 | 8,301 | ||||||
Blackbaud Inc. | 403 | 31,128 | ||||||
Blackline Inc.(a) | 390 | 20,413 | ||||||
Box Inc., Class A(a) | 592 | 11,982 | ||||||
Ceridian HCM Holding Inc.(a) | 217 | 10,637 | ||||||
Cloudera Inc.(a) | 1,154 | 16,814 | ||||||
Cornerstone OnDemand Inc.(a) | 195 | 11,017 | ||||||
Coupa Software Inc.(a) | 303 | 28,540 | ||||||
Ellie Mae Inc.(a) | 179 | 17,809 | ||||||
Envestnet Inc.(a) | 354 | 21,597 | ||||||
Everbridge Inc.(a) | 161 | 11,384 | ||||||
Fair Isaac Corp.(a) | 282 | 69,885 | ||||||
FireEye Inc.(a) | 855 | 14,330 | ||||||
Five9 Inc.(a) | 410 | 21,746 |
28 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® ESG MSCI USA Small-Cap ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Software (continued) | ||||||||
Guidewire Software Inc.(a) | 265 | $ | 24,311 | |||||
HubSpot Inc.(a) | 165 | 27,783 | ||||||
LivePerson Inc.(a) | 508 | 14,204 | ||||||
LogMeIn Inc. | 368 | 29,234 | ||||||
Manhattan Associates Inc.(a) | 405 | 22,174 | ||||||
Mimecast Ltd.(a) | 536 | 25,878 | ||||||
New Relic Inc.(a) | 283 | 29,927 | ||||||
Nuance Communications Inc.(a) | 1,258 | 21,097 | ||||||
Nutanix Inc., Class A(a) | 918 | 45,983 | ||||||
Paycom Software Inc.(a) | 317 | 57,608 | ||||||
Paylocity Holding Corp.(a) | 322 | 28,197 | ||||||
Progress Software Corp. | 284 | 10,445 | ||||||
Proofpoint Inc.(a) | 225 | 26,570 | ||||||
Qualys Inc.(a) | 178 | 14,886 | ||||||
Rapid7 Inc.(a) | 285 | 13,119 | ||||||
RingCentral Inc., Class A(a) | 478 | 50,329 | ||||||
SailPoint Technologies Holding Inc.(a) | 406 | 12,521 | ||||||
SPS Commerce Inc.(a) | 159 | 16,978 | ||||||
Teradata Corp.(a) | 1,554 | 75,167 | ||||||
TiVo Corp. | 1,020 | 10,231 | ||||||
Trade Desk Inc. (The), Class A(a) | 170 | 33,582 | ||||||
Tyler Technologies Inc.(a) | 124 | 25,394 | ||||||
Ultimate Software Group Inc. (The)(a) | 188 | 62,322 | ||||||
Varonis Systems Inc.(a) | 178 | 10,139 | ||||||
Verint Systems Inc.(a) | 211 | 11,236 | ||||||
Workiva Inc.(a) | 303 | 14,983 | ||||||
Zendesk Inc.(a) | 599 | 47,333 | ||||||
Zscaler Inc.(a) | 251 | 12,470 | ||||||
|
| |||||||
1,173,651 | ||||||||
Specialty Retail — 2.6% | ||||||||
Aaron’s Inc. | 563 | 30,565 | ||||||
American Eagle Outfitters Inc. | 1,543 | 31,477 | ||||||
Asbury Automotive Group Inc.(a) | 193 | 13,856 | ||||||
At Home Group Inc.(a) | 422 | 10,331 | ||||||
AutoNation Inc.(a) | 344 | 12,129 | ||||||
Buckle Inc. (The) | 563 | 10,804 | ||||||
Caleres Inc. | 452 | 14,057 | ||||||
DSW Inc., Class A | 428 | 12,673 | ||||||
Five Below Inc.(a) | 330 | 39,716 | ||||||
Floor & Decor Holdings Inc., Class A(a) | 331 | 12,307 | ||||||
Foot Locker Inc. | 728 | 43,331 | ||||||
GameStop Corp., Class A | 869 | 10,167 | ||||||
Genesco Inc.(a) | 217 | 10,475 | ||||||
Group 1 Automotive Inc. | 176 | 10,944 | ||||||
Guess? Inc. | 488 | 10,926 | ||||||
Hibbett Sports Inc.(a) | 552 | 10,234 | ||||||
Lithia Motors Inc., Class A | 200 | 18,054 | ||||||
MarineMax Inc.(a) | 507 | 9,952 | ||||||
Michaels Companies Inc. (The)(a) | 720 | 10,181 | ||||||
Monro Inc.(b) | 274 | 20,909 | ||||||
Murphy USA Inc.(a) | 261 | 20,298 | ||||||
National Vision Holdings Inc.(a) | 482 | 16,195 | ||||||
Office Depot Inc. | 3,637 | 12,620 | ||||||
Rent-A-Center Inc./TX(a) | 554 | 10,310 | ||||||
RH(a) | 109 | 16,741 | ||||||
Sally Beauty Holdings Inc.(a) | 806 | 14,564 | ||||||
Signet Jewelers Ltd. | 554 | 15,573 | ||||||
Sleep Number Corp.(a) | 279 | 12,178 | ||||||
Tailored Brands Inc. | 772 | 10,005 | ||||||
Williams-Sonoma Inc. | 623 | 36,234 |
Security | Shares | Value | ||||||
Specialty Retail (continued) | ||||||||
Winmark Corp. | 66 | $ | 11,369 | |||||
|
| |||||||
519,175 | ||||||||
Technology Hardware, Storage & Peripherals — 0.3% | ||||||||
3D Systems Corp.(a) | 762 | 10,759 | ||||||
Cray Inc.(a) | 441 | 10,818 | ||||||
NCR Corp.(a) | 652 | 18,269 | ||||||
Pure Storage Inc., Class A(a) | 777 | 15,913 | ||||||
|
| |||||||
55,759 | ||||||||
Textiles, Apparel & Luxury Goods — 1.1% | ||||||||
Carter’s Inc. | 176 | 17,149 | ||||||
Columbia Sportswear Co. | 499 | 51,372 | ||||||
Crocs Inc.(a) | 600 | 15,408 | ||||||
Deckers Outdoor Corp.(a) | 264 | 39,059 | ||||||
Fossil Group Inc.(a) | 669 | 10,463 | ||||||
Movado Group Inc. | 462 | 16,184 | ||||||
Skechers U.S.A. Inc., Class A(a) | 432 | 14,528 | ||||||
Unifi Inc.(a) | 431 | 9,534 | ||||||
Wolverine World Wide Inc. | 1,110 | 39,694 | ||||||
|
| |||||||
213,391 | ||||||||
Thrifts & Mortgage Finance — 1.5% | ||||||||
Columbia Financial Inc.(a) | 674 | 10,804 | ||||||
Federal Agricultural Mortgage Corp., Class C, NVS | 194 | 15,883 | ||||||
First Defiance Financial Corp. | 364 | 11,262 | ||||||
Flagstar Bancorp. Inc. | 313 | 10,223 | ||||||
HomeStreet Inc.(a) | 1,019 | 28,430 | ||||||
LendingTree Inc.(a) | 37 | 11,801 | ||||||
MGIC Investment Corp.(a) | 2,765 | 35,890 | ||||||
Mr Cooper Group Inc.(a) | 673 | 9,186 | ||||||
New York Community Bancorp. Inc. | 4,097 | 51,254 | ||||||
NMI Holdings Inc., Class A(a) | 418 | 10,095 | ||||||
OceanFirst Financial Corp. | 764 | 19,253 | ||||||
Radian Group Inc. | 819 | 16,675 | ||||||
TFS Financial Corp. | 984 | 16,856 | ||||||
United Community Financial Corp./OH | 993 | 9,950 | ||||||
Walker & Dunlop Inc. | 193 | 10,769 | ||||||
Washington Federal Inc. | 599 | 18,377 | ||||||
WSFS Financial Corp. | 297 | 12,854 | ||||||
|
| |||||||
299,562 | ||||||||
Trading Companies & Distributors — 1.0% | ||||||||
Air Lease Corp. | 324 | 12,105 | ||||||
Aircastle Ltd. | 493 | 9,791 | ||||||
Beacon Roofing Supply Inc.(a) | 578 | 20,964 | ||||||
Foundation Building Materials Inc.(a) | 1,080 | 12,010 | ||||||
GATX Corp. | 329 | 26,155 | ||||||
Herc Holdings Inc.(a) | 242 | 10,648 | ||||||
MSC Industrial Direct Co. Inc., Class A | 117 | 9,876 | ||||||
NOW Inc.(a) | 675 | 9,740 | ||||||
Rush Enterprises Inc., Class A | 257 | 10,773 | ||||||
SiteOne Landscape Supply Inc.(a) | 298 | 16,006 | ||||||
Triton International Ltd. | 403 | 13,263 | ||||||
Veritiv Corp.(a) | 276 | 7,974 | ||||||
Watsco Inc. | 132 | 18,993 | ||||||
WESCO International Inc.(a) | 552 | 30,056 | ||||||
|
| |||||||
208,354 | ||||||||
Transportation Infrastructure — 0.2% | ||||||||
Macquarie Infrastructure Corp. | 957 | 39,132 | ||||||
|
| |||||||
Water Utilities — 0.1% | ||||||||
Aqua America Inc. | 765 | 27,494 | ||||||
|
|
S C H E D U L E O F I N V E S T M E N T S | 29 |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® ESG MSCI USA Small-Cap ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Wireless Telecommunication Services — 0.3% | ||||||||
Boingo Wireless Inc.(a) | 558 | $ | 12,482 | |||||
Gogo Inc.(a)(b) | 2,632 | 12,081 | ||||||
Shenandoah Telecommunications Co. | 377 | 16,754 | ||||||
Telephone & Data Systems Inc. | 303 | 9,711 | ||||||
|
| |||||||
51,028 | ||||||||
|
| |||||||
Total Common Stocks — 99.8% |
| 19,953,004 | ||||||
|
| |||||||
Short-Term Investments | ||||||||
Money Market Funds — 3.1% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 2.62%(c)(d)(e) | 589,597 | 589,833 | ||||||
BlackRock Cash Funds: Treasury, | 39,996 | 39,996 | ||||||
|
| |||||||
629,829 | ||||||||
|
| |||||||
Total Short-Term Investments — 3.1% |
| 629,829 | ||||||
|
| |||||||
Total Investments in Securities — 102.9% |
| 20,582,833 | ||||||
Other Assets, Less Liabilities — (2.9)% |
| (586,136 | ) | |||||
|
| |||||||
Net Assets — 100.0% |
| $ | 19,996,697 | |||||
|
|
(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
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2019, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Affiliated Issuer | | Shares Held at 08/31/18 | | Net Activity | | Shares Held at 02/28/19 | | | Value at 02/28/19 | | Income | | Net Realized Gain (Loss) | (a) | | Change in Unrealized Appreciation (Depreciation) | | |||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | 729,442 | (139,845 | ) | 589,597 | $ | 589,833 | $ | 1,707 | (b) | $ | (23 | ) | $ | 55 | ||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 27,907 | 12,089 | 39,996 | 39,996 | 190 | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
$ | 629,829 | $ | 1,897 | $ | (23 | ) | $ | 55 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Includes 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, and less fees paid to BTC as securities lending agent. |
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, refer to the Notes to Financial Statements.
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2019. 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 | $ | 19,953,004 | $ | — | $ | — | $ | 19,953,004 | ||||||||
Money Market Funds | 629,829 | — | — | 629,829 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 20,582,833 | $ | — | $ | — | $ | 20,582,833 | |||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
30 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) February 28, 2019 | iShares® MSCI Global Impact ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Australia — 0.9% | ||||||||
CSL Ltd. | 2,584 | $ | 356,206 | |||||
GPT Group (The) | 15,728 | 65,459 | ||||||
|
| |||||||
421,665 | ||||||||
Austria — 0.2% | ||||||||
Verbund AG | 2,244 | 108,138 | ||||||
|
| |||||||
Belgium — 4.3% | ||||||||
Umicore SA | 45,492 | 1,968,467 | ||||||
|
| |||||||
Canada — 0.2% | ||||||||
First Capital Realty Inc. | 5,287 | 85,989 | ||||||
|
| |||||||
China — 8.8% | ||||||||
3SBio Inc.(a) | 8,500 | 14,055 | ||||||
Beijing Enterprises Water Group Ltd.(b) | 612,000 | 366,430 | ||||||
BYD Co. Ltd., Class H(b) | 119,000 | 761,013 | ||||||
China Conch Venture Holdings Ltd. | 8,500 | 28,370 | ||||||
China Everbright International Ltd. | 289,000 | 282,749 | ||||||
China Longyuan Power Group Corp. Ltd., Class H | 306,000 | 228,434 | ||||||
China Medical System Holdings Ltd. | 34,000 | 35,777 | ||||||
China Mengniu Dairy Co. Ltd. | 96,000 | 296,568 | ||||||
China Vanke Co. Ltd., Class H | 164,900 | 626,006 | ||||||
CSPC Pharmaceutical Group Ltd. | 32,000 | 54,626 | ||||||
Fullshare Holdings Ltd.(b) | 40,000 | 8,000 | ||||||
Huaneng Renewables Corp. Ltd., Class H | 612,000 | 186,333 | ||||||
New Oriental Education & Technology Group Inc., ADR(c) | 10,149 | 832,827 | ||||||
Sihuan Pharmaceutical Holdings Group Ltd. | 34,000 | 7,103 | ||||||
Sino Biopharmaceutical Ltd. | 85,000 | 73,741 | ||||||
SOHO China Ltd.(c) | 42,500 | 18,137 | ||||||
Xinjiang Goldwind Science & Technology Co. Ltd., Class H | 81,600 | 93,556 | ||||||
Xinyi Solar Holdings Ltd. | 272,000 | 133,751 | ||||||
|
| |||||||
4,047,476 | ||||||||
Denmark — 5.4% | ||||||||
Genmab A/S(c) | 102 | 17,645 | ||||||
H Lundbeck A/S | 1,344 | 61,536 | ||||||
Novo Nordisk A/S, Class B | 16,898 | 830,032 | ||||||
Vestas Wind Systems A/S | 19,210 | 1,600,760 | ||||||
|
| |||||||
2,509,973 | ||||||||
France — 6.0% | ||||||||
Covivio | 1,037 | 105,094 | ||||||
Danone SA | 13,311 | 1,005,380 | ||||||
Gecina SA | 510 | 75,728 | ||||||
Ipsen SA | 336 | 46,525 | ||||||
Klepierre SA | 5,032 | 175,852 | ||||||
Suez | 105,621 | 1,351,241 | ||||||
|
| |||||||
2,759,820 | ||||||||
Germany — 3.1% | ||||||||
KION Group AG | 6,188 | 353,159 | ||||||
OSRAM Licht AG | 10,676 | 463,173 | ||||||
Vonovia SE | 12,988 | 630,622 | ||||||
|
| |||||||
1,446,954 | ||||||||
Hong Kong — 2.3% | ||||||||
MTR Corp. Ltd. | 32,000 | 183,852 | ||||||
Swire Properties Ltd. | 13,600 | 54,575 | ||||||
WH Group Ltd.(a) | 943,500 | 837,753 | ||||||
|
| |||||||
1,076,180 | ||||||||
India — 0.2% | ||||||||
Godrej Consumer Products Ltd. | 1,548 | 14,644 |
Security | Shares | Value | ||||||
India (continued) | ||||||||
Hindustan Unilever Ltd. | 2,752 | $ | 67,039 | |||||
Marico Ltd. | 2,640 | 12,609 | ||||||
Nestle India Ltd. | 112 | 16,754 | ||||||
|
| |||||||
111,046 | ||||||||
Indonesia — 0.1% | ||||||||
Indofood CBP Sukses Makmur Tbk PT | 43,700 | 31,763 | ||||||
Unilever Indonesia Tbk PT | 6,800 | 23,529 | ||||||
|
| |||||||
55,292 | ||||||||
Ireland — 1.2% | ||||||||
Kingspan Group PLC | 11,203 | 528,899 | ||||||
|
| |||||||
Japan — 13.1% | ||||||||
Central Japan Railway Co | 6,400 | 1,435,861 | ||||||
Chugai Pharmaceutical Co. Ltd. | 1,600 | 108,803 | ||||||
Daiichi Sankyo Co. Ltd. | 10,200 | 381,813 | ||||||
East Japan Railway Co. | 19,100 | 1,829,015 | ||||||
Japan Retail Fund Investment Corp. | 48 | 96,759 | ||||||
NH Foods Ltd. | 17,600 | 642,688 | ||||||
Nippon Prologis REIT Inc. | 17 | 36,162 | ||||||
Nisshin Seifun Group Inc. | 8,000 | 171,613 | ||||||
Nissin Foods Holdings Co. Ltd. | 1,800 | 124,991 | ||||||
Ono Pharmaceutical Co. Ltd. | 5,100 | 104,845 | ||||||
Shionogi & Co. Ltd. | 1,800 | 115,063 | ||||||
Sysmex Corp. | 1,600 | 96,285 | ||||||
Terumo Corp. | 2,000 | 122,530 | ||||||
TOTO Ltd. | 10,200 | 386,211 | ||||||
Toyo Suisan Kaisha Ltd. | 5,100 | 189,211 | ||||||
Unicharm Corp. | 6,800 | 216,547 | ||||||
|
| |||||||
6,058,397 | ||||||||
Mexico — 0.3% | ||||||||
Gruma SAB de CV, Series B | 5,920 | 64,160 | ||||||
Kimberly-Clark de Mexico SAB de CV, Class A | 39,100 | 63,207 | ||||||
|
| |||||||
127,367 | ||||||||
Norway — 0.5% | ||||||||
Mowi ASA(c) | 10,472 | 241,876 | ||||||
|
| |||||||
Singapore — 0.3% | ||||||||
CapitaLand Commercial Trust | 28,895 | 41,486 | ||||||
CapitaLand Mall Trust | 45,900 | 81,528 | ||||||
|
| |||||||
123,014 | ||||||||
South Korea — 1.5% | ||||||||
Samsung SDI Co. Ltd. | 3,196 | 674,891 | ||||||
|
| |||||||
Spain — 1.1% | ||||||||
Siemens Gamesa Renewable Energy SA(c) | 33,915 | 519,619 | ||||||
|
| |||||||
Sweden — 1.5% | ||||||||
Essity AB, Class B | 25,398 | 709,054 | ||||||
|
| |||||||
Switzerland — 0.5% | ||||||||
Geberit AG, Registered | 578 | 231,154 | ||||||
|
| |||||||
Taiwan — 4.2% | ||||||||
Innolux Corp. | 4,318,000 | 1,438,094 | ||||||
Standard Foods Corp. | 12,000 | 20,548 | ||||||
Uni-President Enterprises Corp. | 192,000 | 467,890 | ||||||
|
| |||||||
1,926,532 | ||||||||
Thailand — 0.1% | ||||||||
BTS Group Holdings PCL, NVDR | 95,200 | 31,419 | ||||||
|
|
S C H E D U L E O F I N V E S T M E N T S | 31 |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI Global Impact ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
United Kingdom — 11.4% | ||||||||
Barratt Developments PLC | 171,496 | $ | 1,366,360 | |||||
Berkeley Group Holdings PLC | 13,634 | 716,316 | ||||||
Johnson Matthey PLC | 45,968 | 1,891,124 | ||||||
Pearson PLC | 114,937 | 1,293,346 | ||||||
|
| |||||||
5,267,146 | ||||||||
United States — 33.2% | ||||||||
AbbVie Inc. | 22,882 | 1,813,170 | ||||||
ABIOMED Inc.(c) | 119 | 39,806 | ||||||
Acuity Brands Inc. | 2,924 | 380,471 | ||||||
Amgen Inc. | 6,528 | 1,240,842 | ||||||
Baxter International Inc. | 5,593 | 417,965 | ||||||
BioMarin Pharmaceutical Inc.(c) | 1,136 | 105,943 | ||||||
Celgene Corp.(c) | 11,441 | 950,976 | ||||||
Citrix Systems Inc. | 6,086 | 642,073 | ||||||
Colgate-Palmolive Co. | 8,789 | 578,931 | ||||||
DexCom Inc.(c) | 459 | 63,953 | ||||||
Digital Realty Trust Inc. | 4,046 | 457,684 | ||||||
Edwards Lifesciences Corp.(c) | 1,190 | 201,455 | ||||||
Gilead Sciences Inc. | 23,409 | 1,522,053 | ||||||
HCP Inc. | 7,820 | 240,621 | ||||||
Hormel Foods Corp. | 6,608 | 286,523 | ||||||
Jazz Pharmaceuticals PLC(c) | 1,003 | 140,450 | ||||||
Kimberly-Clark Corp. | 10,098 | 1,179,749 | ||||||
Procter & Gamble Co. (The) | 18,785 | 1,851,262 | ||||||
Rockwell Automation Inc. | 3,332 | 594,962 | ||||||
Tesla Inc.(c) | 6,001 | 1,919,600 | ||||||
Vertex Pharmaceuticals Inc.(c) | 969 | 182,899 | ||||||
VMware Inc., Class A | 1,105 | 189,850 | ||||||
Xylem Inc./NY | 4,488 | 339,068 | ||||||
|
| |||||||
15,340,306 | ||||||||
|
| |||||||
Total Common Stocks — 100.4% | 46,370,674 | |||||||
|
|
Security | Shares | Value | ||||||
Short-Term Investments | ||||||||
Money Market Funds — 0.7% | ||||||||
BlackRock Cash Funds: Institutional, | 147,580 | $ | 147,639 | |||||
BlackRock Cash Funds: Treasury, | 187,952 | 187,952 | ||||||
|
| |||||||
335,591 | ||||||||
|
| |||||||
Total Short-Term Investments — 0.7% | 335,591 | |||||||
|
| |||||||
Total Investments in Securities — 101.1% | 46,706,265 | |||||||
Other Assets, Less Liabilities — (1.1)% | (488,454 | ) | ||||||
|
| |||||||
Net Assets — 100.0% | $ | 46,217,811 | ||||||
|
|
(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) | 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
Investments in issuers considered to be affiliates of the Fund during the six months ended February 28, 2019, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Affiliated Issuer | | Shares Held at 08/31/18 | Net Activity | | Shares Held at 02/28/19 | | Value at 02/28/19 | Income | | Net Realized Gain (Loss) | (a) | | Change in Unrealized Appreciation (Depreciation) | |||||||||||||||
BlackRock Cash Funds: Institutional, | 482,597 | (335,017 | ) | 147,580 | $ | 147,639 | $ | 6,993 | (b) | $ | (46 | ) | $ | 15 | ||||||||||||||
BlackRock Cash Funds: Treasury, | — | 187,952 | 187,952 | 187,952 | 471 | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
$ | 335,591 | $ | 7,464 | $ | (46 | ) | $ | 15 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
(a) | Includes realized capital gain distributions from an affiliated fund, if any. |
(b) | Includes 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, and less fees paid to BTC as securities lending agent. |
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, refer to the Notes to Financial Statements.
32 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) February 28, 2019 | iShares® MSCI Global Impact ETF |
Fair Value Measurements (continued)
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of February 28, 2019. 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 | $ | 46,370,674 | $ | — | $ | — | $ | 46,370,674 | ||||||||
Money Market Funds | 335,591 | — | — | 335,591 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 46,706,265 | $ | — | $ | — | $ | 46,706,265 | |||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
S C H E D U L E O F I N V E S T M E N T S | 33 |
Statements of Assets and Liabilities (unaudited)
February 28, 2019
iShares ESG MSCI EAFE ETF | iShares ESG MSCI USA ETF | iShares ESG MSCI USA Small-Cap ETF | iShares MSCI Global Impact ETF | |||||||||||||
ASSETS | ||||||||||||||||
Investments in securities, at value (including securities on loan)(a): | ||||||||||||||||
Unaffiliated(b) | $ | 648,057,097 | $ | 160,991,468 | $ | 19,953,004 | $ | 46,370,674 | ||||||||
Affiliated(c) | 134,502 | 3,087,900 | 629,829 | 335,591 | ||||||||||||
Foreign currency, at value(d) | 1,015,136 | — | — | 526,178 | ||||||||||||
Receivables: | ||||||||||||||||
Investments sold | 31,237,794 | 7,857,730 | 945,988 | 5,364,162 | ||||||||||||
Securities lending income — Affiliated | 58 | 134 | 499 | 153 | ||||||||||||
Dividends | 1,395,894 | 303,755 | 15,546 | 20,585 | ||||||||||||
Tax reclaims | 204,637 | — | 18 | 19,460 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total assets | 682,045,118 | 172,240,987 | 21,544,884 | 52,636,803 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
LIABILITIES | ||||||||||||||||
Collateral on securities loaned, at value | — | 1,969,440 | 589,726 | 147,763 | ||||||||||||
Payables: | ||||||||||||||||
Investments purchased | 31,429,721 | 8,170,335 | 955,997 | 6,180,963 | ||||||||||||
Capital shares redeemed | — | — | — | 73,255 | ||||||||||||
Investment advisory fees | 96,094 | 17,875 | 2,464 | 17,011 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total liabilities | 31,525,815 | 10,157,650 | 1,548,187 | 6,418,992 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS | $ | 650,519,303 | $ | 162,083,337 | $ | 19,996,697 | $ | 46,217,811 | ||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS CONSIST OF: | ||||||||||||||||
Paid-in capital | $ | 646,176,055 | $ | 155,709,983 | $ | 19,055,718 | $ | 45,070,946 | ||||||||
Accumulated earnings | 4,343,248 | 6,373,354 | 940,979 | 1,146,865 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS | $ | 650,519,303 | $ | 162,083,337 | $ | 19,996,697 | $ | 46,217,811 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Shares outstanding | 10,400,000 | 2,650,000 | 750,000 | 800,000 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net asset value | $ | 62.55 | $ | 61.16 | $ | 26.66 | $ | 57.77 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Shares authorized | Unlimited | Unlimited | Unlimited | Unlimited | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Par value | None | None | None | None | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
(a) Securities loaned, at value | $ | — | $ | 1,857,283 | $ | 563,468 | $ | 140,162 | ||||||||
(b) Investments, at cost — Unaffiliated | $ | 634,849,798 | $ | 153,292,353 | $ | 18,799,888 | $ | 44,047,405 | ||||||||
(c) Investments, at cost — Affiliated | $ | 134,502 | $ | 3,109,450 | $ | 629,709 | $ | 335,541 | ||||||||
(d) Foreign currency, at cost | $ | 1,015,945 | $ | — | $ | — | $ | 526,298 |
See notes to financial statements.
34 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Statements of Operations (unaudited)
Six Months Ended February 28, 2019
iShares ESG MSCI EAFE ETF | iShares ESG MSCI USA ETF | iShares ESG MSCI USA Small-Cap ETF | iShares MSCI Global Impact ETF | |||||||||||||
INVESTMENT INCOME | ||||||||||||||||
Dividends— Unaffiliated | $ | 5,029,055 | $ | 1,273,225 | $ | 100,921 | $ | 294,336 | ||||||||
Dividends— Affiliated | 4,180 | 17,856 | 190 | 471 | ||||||||||||
Securities lending income— Affiliated— net | 36,533 | 1,139 | 1,707 | 6,993 | ||||||||||||
Foreign taxes withheld | (304,046 | ) | — | (143 | ) | (7,744 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Total investment income | 4,765,722 | 1,292,220 | 102,675 | 294,056 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
EXPENSES | ||||||||||||||||
Investment advisory fees | 463,542 | 89,303 | 10,677 | 95,750 | ||||||||||||
Commitment fees | — | — | — | 2 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total expenses | 463,542 | 89,303 | 10,677 | 95,752 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net investment income | 4,302,180 | 1,202,917 | 91,998 | 198,304 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||
Investments— Unaffiliated(a) | (7,577,958 | ) | (1,065,150 | ) | (182,252 | ) | (848,871 | ) | ||||||||
Investments— Affiliated | 101 | (38,156 | ) | (23 | ) | (46 | ) | |||||||||
In-kind redemptions— Unaffiliated | — | 407,921 | — | 833,139 | ||||||||||||
In-kind redemptions— Affiliated | — | 1,082 | — | — | ||||||||||||
Foreign currency transactions | (2,815 | ) | — | — | (3,837 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net realized loss | (7,580,672 | ) | (694,303 | ) | (182,275 | ) | (19,615 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments— Unaffiliated | 1,325,931 | (146,420 | ) | 276,405 | 166,407 | |||||||||||
Investments— Affiliated | (63 | ) | 15,304 | 55 | 15 | |||||||||||
Foreign currency translations | (9,310 | ) | — | — | 1,707 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net change in unrealized appreciation (depreciation) | 1,316,558 | (131,116 | ) | 276,460 | 168,129 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net realized and unrealized gain (loss) | (6,264,114 | ) | (825,419 | ) | 94,185 | 148,514 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | (1,961,934 | ) | $ | 377,498 | $ | 186,183 | $ | 346,818 | |||||||
|
|
|
|
|
|
|
| |||||||||
(a) Net of foreign capital gain tax of | $ | — | $ | — | $ | — | $ | 114 |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S | 35 |
Statements of Changes in Net Assets
iShares ESG MSCI EAFE ETF | iShares ESG MSCI USA ETF | |||||||||||||||
Six Months Ended 02/28/19 (unaudited) | Year Ended 08/31/18 | Six Months Ended 02/28/19 (unaudited) | Year Ended 08/31/18 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income | $ | 4,302,180 | $ | 6,576,318 | $ | 1,202,917 | $ | 882,560 | ||||||||
Net realized gain (loss) | (7,580,672 | ) | 735,748 | (694,303 | ) | 680,790 | ||||||||||
Net change in unrealized appreciation (depreciation) | 1,316,558 | (3,528,915 | ) | (131,116 | ) | 7,115,490 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | (1,961,934 | ) | 3,783,151 | 377,498 | 8,678,840 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||||||||||
Decrease in net assets resulting from distributions to shareholders | (4,050,339 | ) | (5,855,514 | ) | (1,087,277 | ) | (655,679 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||
Net increase in net assets derived from capital share transactions | 296,222,884 | 240,257,732 | 63,819,096 | 80,121,341 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS(a) | ||||||||||||||||
Total increase in net assets | 290,210,611 | 238,185,369 | 63,109,317 | 88,144,502 | ||||||||||||
Beginning of period | 360,308,692 | 122,123,323 | 98,974,020 | 10,829,518 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 650,519,303 | $ | 360,308,692 | $ | 162,083,337 | $ | 98,974,020 | ||||||||
|
|
|
|
|
|
|
|
(a) | Prior year distribution character information and undistributed net investment income has been modified or removed to conform with current year Regulation S-X presentation changes. Refer to Note 12 for this prior year information. |
See notes to financial statements.
36 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Statements of Changes in Net Assets (continued)
iShares ESG MSCI USA Small-Cap ETF | iShares MSCI Global Impact ETF | |||||||||||||||
| Six Months Ended 02/28/19 (unaudited) | | Period From 04/10/18 to 08/31/18 | (a)
| | Six Months Ended 02/28/19 (unaudited) | | Year Ended 08/31/18 | ||||||||
| ||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income | $ | 91,998 | $ | 50,020 | $ | 198,304 | $ | 706,075 | ||||||||
Net realized gain (loss) | (182,275 | ) | 431,173 | (19,615 | ) | 1,256,468 | ||||||||||
Net change in unrealized appreciation (depreciation) | 276,460 | 876,776 | 168,129 | (210,169 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase in net assets resulting from operations | 186,183 | 1,357,969 | 346,818 | 1,752,374 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS(b) | ||||||||||||||||
Decrease in net assets resulting from distributions to shareholders | (78,790 | ) | (23,298 | ) | (353,762 | ) | (813,861 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||
Net increase in net assets derived from capital share transactions | 8,383,563 | 10,171,070 | 8,296,294 | 11,825,891 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS(b) | ||||||||||||||||
Total increase in net assets | 8,490,956 | 11,505,741 | 8,289,350 | 12,764,404 | ||||||||||||
Beginning of period | 11,505,741 | — | 37,928,461 | 25,164,057 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 19,996,697 | $ | 11,505,741 | $ | 46,217,811 | $ | 37,928,461 | ||||||||
|
|
|
|
|
|
|
|
(a) | Commencement of operations. |
(b) | Prior year distribution character information and undistributed net investment income has been modified or removed to conform with current year Regulation S-X presentation changes. Refer to Note 12 for this prior year information. |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S | 37 |
(For a share outstanding throughout each period)
iShares ESG MSCI EAFE ETF | ||||||||||||||||
| Six Months Ended 02/28/19 (unaudited) | | Year Ended 08/31/18 | | Year Ended 08/31/17 | | Period From 06/28/16 to 08/31/16 | (a)
| ||||||||
| ||||||||||||||||
Net asset value, beginning of period | $ | 65.51 | $ | 64.28 | $ | 55.84 | $ | 50.87 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net investment income(b) | 0.56 | 2.16 | 1.87 | 0.16 | ||||||||||||
Net realized and unrealized gain (loss)(c) | (2.99 | ) | 0.83 | 7.68 | 4.81 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) from investment operations | (2.43 | ) | 2.99 | 9.55 | 4.97 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Distributions | ||||||||||||||||
From net investment income | (0.53 | ) | (1.76 | ) | (1.11 | ) | — | |||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions | (0.53 | ) | (1.76 | ) | (1.11 | ) | — | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net asset value, end of period | $ | 62.55 | $ | 65.51 | $ | 64.28 | $ | 55.84 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total Return | ||||||||||||||||
Based on net asset value | (3.65 | )%(d) | 4.64 | % | 17.16 | % | 9.79 | %(d) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Ratios to Average Net Assets | ||||||||||||||||
Total expenses | 0.20 | %(e) | 0.20 | % | 0.38 | % | 0.40 | %(e) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net investment income | 1.86 | %(e) | 3.22 | % | 3.10 | % | 1.67 | %(e) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Supplemental Data | ||||||||||||||||
Net assets, end of period (000) | $ | 650,519 | $ | 360,309 | $ | 122,123 | $ | 5,584 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Portfolio turnover rate(f) | 14 | %(d) | 24 | % | 9 | % | 5 | %(d) | ||||||||
|
|
|
|
|
|
|
|
(a) | Commencement of operations. |
(b) | Based on average shares outstanding. |
(c) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) | Not annualized. |
(e) | Annualized. |
(f) | Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
38 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares ESG MSCI USA ETF | ||||||||||||
| Six Months Ended 02/28/19 (unaudited) |
| | Year Ended 08/31/18 |
| | Period From 12/01/16 to 08/31/17 | (a)
| ||||
| ||||||||||||
Net asset value, beginning of period | $ | 63.85 | $ | 54.15 | $ | 47.79 | ||||||
|
|
|
|
|
| |||||||
Net investment income(b) | 0.59 | 1.09 | 0.71 | |||||||||
Net realized and unrealized gain (loss)(c) | (2.70 | ) | 9.52 | 6.22 | ||||||||
|
|
|
|
|
| |||||||
Net increase (decrease) from investment operations | (2.11 | ) | 10.61 | 6.93 | ||||||||
|
|
|
|
|
| |||||||
Distributions | ||||||||||||
From net investment income | (0.58 | ) | (0.80 | ) | (0.57 | ) | ||||||
From net realized gain | — | (0.11 | ) | — | ||||||||
|
|
|
|
|
| |||||||
Total distributions | (0.58 | ) | (0.91 | ) | (0.57 | ) | ||||||
|
|
|
|
|
| |||||||
Net asset value, end of period | $ | 61.16 | $ | 63.85 | $ | 54.15 | ||||||
|
|
|
|
|
| |||||||
Total Return | ||||||||||||
Based on net asset value | (3.26 | )%(d) | 19.79 | % | 14.55 | %(d) | ||||||
|
|
|
|
|
| |||||||
Ratios to Average Net Assets | ||||||||||||
Total expenses | 0.15 | %(e) | 0.15 | % | 0.27 | %(e) | ||||||
|
|
|
|
|
| |||||||
Net investment income | 2.02 | %(e) | 1.83 | % | 1.85 | %(e) | ||||||
|
|
|
|
|
| |||||||
Supplemental Data | ||||||||||||
Net assets, end of period (000) | $ | 162,083 | $ | 98,974 | $ | 10,830 | ||||||
|
|
|
|
|
| |||||||
Portfolio turnover rate(f) | 13 | %(d) | 28 | % | 22 | %(d) | ||||||
|
|
|
|
|
|
(a) | Commencement of operations. |
(b) | Based on average shares outstanding. |
(c) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) | Not annualized. |
(e) | Annualized. |
(f) | Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
F I N A N C I A L H I G H L I G H T S | 39 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares ESG MSCI USA Small-Cap ETF | ||||||||
| Six Months Ended 02/28/19 (unaudited) |
| | Period From 04/10/18 to 08/31/18 | (a)
| |||
| ||||||||
Net asset value, beginning of period | $ | 28.76 | $ | 25.47 | ||||
|
|
|
| |||||
Net investment income(b) | 0.19 | 0.12 | ||||||
Net realized and unrealized gain (loss)(c) | (2.10 | ) | 3.23 | |||||
|
|
|
| |||||
Net increase (decrease) from investment operations | (1.91 | ) | 3.35 | |||||
|
|
|
| |||||
Distributions | ||||||||
From net investment income | (0.19 | ) | (0.06 | ) | ||||
|
|
|
| |||||
Total distributions | (0.19 | ) | (0.06 | ) | ||||
|
|
|
| |||||
Net asset value, end of period | $ | 26.66 | $ | 28.76 | ||||
|
|
|
| |||||
Total Return | ||||||||
Based on net asset value | (6.62 | )%(d) | 13.16 | %(d) | ||||
|
|
|
| |||||
Ratios to Average Net Assets | ||||||||
Total expenses | 0.17 | %(e) | 0.17 | %(e) | ||||
|
|
|
| |||||
Net investment income | 1.46 | %(e) | 1.17 | %(e) | ||||
|
|
|
| |||||
Supplemental Data | ||||||||
Net assets, end of period (000) | $ | 19,997 | $ | 11,506 | ||||
|
|
|
| |||||
Portfolio turnover rate(f) | 20 | %(d) | 15 | %(d) | ||||
|
|
|
|
(a) | Commencement of operations. |
(b) | Based on average shares outstanding. |
(c) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) | Not annualized. |
(e) | Annualized. |
(f) | Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
40 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares MSCI Global Impact ETF | ||||||||||||||||
| Six Months Ended 02/28/19 (unaudited) |
| | Year Ended 08/31/18 |
| | Year Ended 08/31/17 |
| | Period From 04/20/16 to 08/31/16 | (a)
| |||||
| ||||||||||||||||
Net asset value, beginning of period | $ | 58.35 | $ | 55.92 | $ | 49.61 | $ | 48.70 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net investment income(b) | 0.28 | 1.32 | 1.05 | 0.49 | ||||||||||||
Net realized and unrealized gain (loss)(c) | (0.35 | ) | 2.65 | 6.44 | 0.65 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) from investment operations | (0.07 | ) | 3.97 | 7.49 | 1.14 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Distributions | ||||||||||||||||
From net investment income | (0.51 | ) | (1.54 | ) | (1.18 | ) | (0.23 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions | (0.51 | ) | (1.54 | ) | (1.18 | ) | (0.23 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net asset value, end of period | $ | 57.77 | $ | 58.35 | $ | 55.92 | $ | 49.61 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total Return | ||||||||||||||||
Based on net asset value | (0.05 | )%(d) | 7.16 | % | 15.27 | % | 2.38 | %(d) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Ratios to Average Net Assets | ||||||||||||||||
Total expenses | 0.49 | %(e) | 0.49 | % | 0.49 | % | 0.49 | %(e) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net investment income | 1.01 | %(e) | 2.26 | % | 2.05 | % | 2.76 | %(e) | ||||||||
|
|
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|
|
|
|
| |||||||||
Supplemental Data | ||||||||||||||||
Net assets, end of period (000) | $ | 46,218 | $ | 37,928 | $ | 25,164 | $ | 14,884 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Portfolio turnover rate(f) | 23 | %(d) | 36 | % | 32 | % | 28 | %(d) | ||||||||
|
|
|
|
|
|
|
|
(a) | Commencement of operations. |
(b) | Based on average shares outstanding. |
(c) | The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) | Not annualized. |
(e) | Annualized. |
(f) | Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
F I N A N C I A L H I G H L I G H T S | 41 |
Notes to Financial Statements (unaudited)
1. | ORGANIZATION |
iShares Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust is organized as a Delaware statutory trust and is authorized to have multiple series or portfolios.
These financial statements relate only to the following funds (each, a “Fund,” and collectively, the “Funds”):
iShares ETF | Diversification Classification | |||
ESG MSCI EAFE(a) | Non-diversified | |||
ESG MSCI USA(b) | Non-diversified | |||
ESG MSCI USA Small-Cap(c) | Non-diversified | |||
MSCI Global Impact | Non-diversified |
(a) | Formerly the iShares MSCI EAFE ESG Optimized ETF. |
(b) | Formerly the iShares MSCI USA ESG Optimized ETF. |
(c) | Formerly the iShares MSCI USA Small-Cap ESG Optimized ETF. |
2. | 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 increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies.
Investment Transactions and Income Recognition:Investment 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 are reflected in tax reclaims receivable. 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. 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. 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 non-U.S. currencies are translated to U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of investments, 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 investments. Such fluctuations are reflected by the Funds as a component of net realized and unrealized gain (loss) from investments for financial reporting purposes. Each Fund reports realized currency gain (loss) 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 each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its statement 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, 2019, if any, are disclosed in the statement of assets and liabilities.
In-kind Redemptions:For financial reporting purposes, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or net asset value per share.
Distributions:Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds.
Recent Accounting Standards:In August 2018, the Financial Accounting Standards Board issued Accounting Standards Update2018-13 “Changes to the Disclosure Requirements for Fair Value Measurement” which modifies disclosure requirements for fair value measurements. The guidance is effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years. Management is currently evaluating the impact of this guidance to the Funds.
42 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements (unaudited) (continued)
Indemnifications:In the normal course of business, each Fund enters into contracts that contain a variety of representations that provide general indemnification. The Funds’ maximum exposure under these arrangements is unknown because it involves future potential claims against the Funds, which cannot be predicted with any certainty.
3. | INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS |
Investment Valuation Policies:Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date 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. A fund determines the fair value of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Trustees of the Trust (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.
Fair Value Inputs and Methodologies:The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:
• | Equity investments traded on a recognized securities exchange are valued at that day’s last traded price or official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price. |
• | Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published net asset value (“NAV”). |
If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of an investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and the cost approach. 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.
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, regular reviews 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 and large movements in market values, and reviews of any market related activity. The pricing of all Fair Valued Investments is subsequently reported to the Board on a quarterly basis.
Fair value pricing could result in a difference between the prices used to calculate a fund’s NAV and the prices used by the fund’s underlying index, which in turn could result in a difference between the fund’s performance and the performance of the fund’s underlying index.
Fair Value Hierarchy:Various inputs are used in determining the fair value of financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:
• | Level 1 — Unadjusted price quotations in active markets 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, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and |
• | Level 3 — Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, (including the Global Valuation Committee’s assumptions used in determining the fair value of financial instruments). |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of 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 into or out of an assigned level within the 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 a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.
4. | SECURITIES AND OTHER INVESTMENTS |
Securities Lending:Each Fund may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by an approved bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities
N O T E S T O F I N A N C I A L S T A T E M E N T S | 43 |
Notes to Financial Statements (unaudited) (continued)
on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund or excess collateral is returned by the Fund, on the next business day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.
As of February 28, 2019, 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 BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, or its affiliates 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, if any, are also disclosed in its schedule of investments. The market value of any securities on loan as of February 28, 2019 and the value of the related cash collateral are disclosed in the statements of assets and liabilities.
Securities lending transactions are entered into by a fund under Master Securities Lending Agreements (each, an “MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the 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 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, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the fund can reinvest cash collateral received in connection with loaned securities.
The following table is a summary of the securities lending agreements by counterparty which are subject to offset under an MSLA as of February 28, 2019:
iShares ETF and Counterparty | | Market Value of Securities on Loan | | | Cash Collateral Received | (a) | | Non-Cash Collateral Received | | Net Amount | ||||||
ESG MSCI USA | ||||||||||||||||
Barclays Bank PLC | $ | 363,322 | $ | 363,322 | $ | — | $ | — | ||||||||
Credit Suisse Securities (USA) LLC | 609,792 | 609,792 | — | — | ||||||||||||
HSBC Bank PLC | 20,152 | 20,152 | — | — | ||||||||||||
JPMorgan Securities LLC | 864,017 | 864,017 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 1,857,283 | $ | 1,857,283 | $ | — | $ | — | |||||||||
|
|
|
|
|
|
|
| |||||||||
ESG MSCI USA Small-Cap | ||||||||||||||||
Citigroup Global Markets Inc. | $ | 120,368 | $ | 120,368 | $ | — | $ | — | ||||||||
Credit Suisse Securities (USA) LLC | 70,836 | 70,836 | — | — | ||||||||||||
Jefferies LLC | 14,073 | 14,073 | — | — | ||||||||||||
Merrill Lynch, Pierce, Fenner & Smith | 139,276 | 139,276 | — | — | ||||||||||||
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending) | 218,915 | 218,915 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 563,468 | $ | 563,468 | $ | — | $ | — | |||||||||
|
|
|
|
|
|
|
| |||||||||
MSCI Global Impact | ||||||||||||||||
Credit Suisse Securities (USA) LLC | $ | 6,650 | $ | 6,650 | $ | — | $ | — | ||||||||
Morgan Stanley & Co. LLC | 133,512 | 133,512 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 140,162 | $ | 140,162 | $ | — | $ | — | |||||||||
|
|
|
|
|
|
|
|
(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. |
The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, each Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned 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 market value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by each Fund.
5. | INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES |
Investment Advisory Fees:Pursuant to an Investment Advisory Agreement with the Trust, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent trustees).
44 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements (unaudited) (continued)
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 | |||
ESG MSCI EAFE | 0.20% | |||
ESG MSCI USA | 0.15 | |||
ESG MSCI USA Small-Cap | 0.17 | |||
MSCI Global Impact | 0.49 |
Distributor:BlackRock Investments, LLC, an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.
Securities Lending:The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan in a money market fund managed by BFA, or its affiliates, however, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04% (the “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. Each Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.
Pursuant to the current securities lending agreement, each of the iShares ESG MSCI USA ETF and iShares ESG MSCI USA Small-Cap ETF (the “Group 1 Funds”), retains 73.5% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees. Prior to January 1, 2019, the Fund retained 71.5% of securities lending income (which excludes collateral investment fees) and the amount retained was not less than 65% of the total of securities lending income plus the collateral investment fees.
Pursuant to the current securities lending agreement, each of iShares ESG MSCI EAFE ETF and iShares MSCI Global Impact ETF (the “Group 2 Funds”), retains 82% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees. Prior to January 1, 2019, the Fund retained 80% of securities lending income (which excludes collateral investment fees) and the amount retained was not 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 a specified threshold, each Group 1 Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year 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. 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. Prior to January 1, 2019, each Group 1 Fund would have retained for the remainder of that calendar year 75% of securities lending income (which excludes collateral investment fees) and the amount retained would not have been less than 65% of the total of securities lending income plus the collateral investment fees. Each Group 2 Fund was subject to the same terms under the previous securities lending fee arrangement.
The share of securities lending income earned by each Fund is shown as securities lending income — affiliated — net in its statement of operations. For the six months ended February 28, 2019, the Funds paid BTC the following amounts for securities lending agent services:
iShares ETF | Fees Paid to BTC | |||
ESG MSCI EAFE | $ | 7,617 | ||
ESG MSCI USA | 494 | |||
ESG MSCI USA Small-Cap | 700 | |||
MSCI Global Impact | 1,373 |
Officers and Trustees:Certain officers and/or trustees of the Trust are officers and/or trustees of BlackRock or its affiliates.
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, 2019, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:
iShares ETF | Purchases | Sales | ||||||
ESG MSCI USA Small-Cap | $ | 147,357 | $ | 51,041 |
Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is shown as dividends — affiliated in the statement of operations.
N O T E S T O F I N A N C I A L S T A T E M E N T S | 45 |
Notes to Financial Statements (unaudited) (continued)
A fund, in order to improve its portfolio liquidity and its ability to track its underlying index, may invest in shares of other iShares funds that invest in securities in the fund’s underlying index.
6. | PURCHASES AND SALES |
For the six months ended February 28, 2019, purchases and sales of investments, excluding in-kind transactions and short-term investments, were as follows:
iShares ETF | Purchases | Sales | ||||||
ESG MSCI EAFE | $ | 81,487,953 | $ | 66,063,731 | ||||
ESG MSCI USA | 17,148,360 | 16,216,566 | ||||||
ESG MSCI USA Small-Cap | 3,008,775 | 2,672,651 | ||||||
MSCI Global Impact | 12,495,386 | 8,948,676 |
For the six months ended February 28, 2019, in-kind transactions were as follows:
iShares ETF | In-kind Purchases | In-kind Sales | ||||||
ESG MSCI EAFE | $ | 281,230,928 | $ | — | ||||
ESG MSCI USA | 66,302,836 | 2,756,408 | ||||||
ESG MSCI USA Small-Cap | 8,111,944 | — | ||||||
MSCI Global Impact | 7,765,803 | 2,815,847 |
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.
Management has analyzed tax laws and regulations and their application to the Funds as of February 28, 2019, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.
As of August 31, 2018, the Funds had capital loss carryforwards, with no expiration dates, available to offset future realized capital gains as follows:
iShares ETF | Non-Expiring | |||
ESG MSCI EAFE | $ | 882,925 | ||
ESG MSCI USA | 262,024 | |||
ESG MSCI USA Small-Cap | 23,619 | |||
MSCI Global Impact | 355,146 |
A fund may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” Such fund 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, 2019, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:
iShares ETF | Tax Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||
ESG MSCI EAFE | $ | 637,198,237 | $ | 33,804,409 | $ | (22,811,047 | ) | $ | 10,993,362 | |||||||
ESG MSCI USA | 157,201,768 | 10,584,811 | (3,707,211 | ) | 6,877,600 | |||||||||||
ESG MSCI USA Small-Cap | 19,476,083 | 1,725,770 | (619,020 | ) | 1,106,750 | |||||||||||
MSCI Global Impact | 45,235,982 | 3,342,491 | (1,872,208 | ) | 1,470,283 |
8. | LINE OF CREDIT |
The iShares MSCI Global Impact ETF, along with certain other iShares funds, is a party to a $300 million credit agreement with State Street Bank and Trust Company, which expires on October 23, 2019. 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
46 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements (unaudited) (continued) |
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, 2019.
9. | PRINCIPAL RISKS |
In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. 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.
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.
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.
Concentration Risk:A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its schedule of investments.
10. | CAPITAL SHARE TRANSACTIONS |
Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable.
Transactions in capital shares were as follows:
Six Months Ended 02/28/19 | Year Ended 08/31/18 | |||||||||||||||||
iShares ETF | Shares | Amount | Shares | Amount | ||||||||||||||
ESG MSCI EAFE | ||||||||||||||||||
Shares sold | 4,900,000 | $ | 296,222,884 | 3,900,000 | $ | 260,403,061 | ||||||||||||
Shares redeemed | — | — | (300,000 | ) | (20,145,329 | ) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Net increase | 4,900,000 | $ | 296,222,884 | 3,600,000 | $ | 240,257,732 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||
ESG MSCI USA | ||||||||||||||||||
Shares sold | 1,150,000 | $ | 66,584,517 | 1,500,000 | $ | 89,172,682 | ||||||||||||
Shares redeemed | (50,000 | ) | (2,765,421 | ) | (150,000 | ) | (9,051,341 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||||
Net increase | 1,100,000 | $ | 63,819,096 | 1,350,000 | $ | 80,121,341 | ||||||||||||
|
|
|
|
|
|
|
|
N O T E S T O F I N A N C I A L S T A T E M E N T S | 47 |
Notes to Financial Statements (unaudited) (continued)
Six Months Ended 02/28/19 | Year Ended 08/31/18 | |||||||||||||||||
iShares ETF | Shares | Amount | Shares | Amount | ||||||||||||||
ESG MSCI USA Small-Cap | ||||||||||||||||||
Shares sold | 350,000 | $ | 8,383,563 | 550,000 | $ | 14,302,173 | ||||||||||||
Shares redeemed | — | — | (150,000 | ) | (4,131,103 | ) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Net increase | 350,000 | $ | 8,383,563 | 400,000 | $ | 10,171,070 | ||||||||||||
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|
|
|
|
|
|
| |||||||||||
MSCI Global Impact | ||||||||||||||||||
Shares sold | 200,000 | $ | 11,185,396 | 350,000 | $ | 20,618,217 | ||||||||||||
Shares redeemed | (50,000 | ) | (2,889,102 | ) | (150,000 | ) | (8,792,326 | ) | ||||||||||
|
|
|
| �� |
|
|
|
| ||||||||||
Net increase | 150,000 | $ | 8,296,294 | 200,000 | $ | 11,825,891 | ||||||||||||
|
|
|
|
|
|
|
|
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 shares sold in the table above.
From time to time, settlement of securities related to in-kind contributions or in-kind redemptions may be delayed. In such cases, securities related to in-kind transactions are reflected as a receivable or a payable in the statement of assets and liabilities.
11. | LEGAL PROCEEDINGS |
On June 16, 2016, investors 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 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.
12. | REGULATION S-X AMENDMENTS |
On August 17, 2018, the SEC adopted amendments to certain disclosure requirements in Securities Act Release No. 33-10532,Disclosure Update and Simplification.The Funds have adopted the amendments pertinent to Regulation S-X in this shareholder report. The amendments impacted certain disclosure presentation on the statement of assets and liabilities, statement of changes in net assets and notes to the financial statements.
Prior year distribution information and undistributed (distributions in excess of) net investment income in the statement of changes in net assets has been modified to conform to the current year presentation in accordance with the Regulation S-X changes.
Distributions for the year ended August 31, 2018 were classified as follows:
iShares ETF | Net Investment Income | Net Realized Gains | ||||||
ESG MSCI EAFE | $ | 5,855,514 | $ | — | ||||
ESG MSCI USA | 618,499 | 37,180 | ||||||
ESG MSCI USA Small-Cap | 23,298 | — | ||||||
MSCI Global Impact | 813,861 | — |
Undistributed (distributions in excess of) net investment income as of August 31, 2018 are as follows:
iShares ETF | Undistributed net investment income | |||
ESG MSCI EAFE | $ | 1,327,436 | ||
ESG MSCI USA | 336,441 | |||
ESG MSCI USA Small-Cap | 26,722 | |||
MSCI Global Impact | 14,562 |
48 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements (unaudited) (continued)
13. | SUBSEQUENT EVENTS |
Management’s evaluation of the impact of all subsequent events on the Funds’ financial statements was completed through the date the financial statements were available to be issued and the following items were noted:
N O T E S T O F I N A N C I A L S T A T E M E N T S | 49 |
Supplemental Information (unaudited)
Section 19(a) Notices
The amounts and sources of distributions reported in this notice are for financial reporting purposes and are not being provided for tax reporting purposes. The actual amounts and character of the distributions for tax reporting purposes will be reported to shareholders on Form 1099-DIV which is sent to shareholders shortly after calendar year-end.
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 | ||||||||||||||||||||||||||||
ESG MSCI EAFE(a) | $ | 0.470176 | $ | — | $ | 0.055842 | $ | 0.526018 | 89 | % | — | % | 11 | % | 100 | % | ||||||||||||||||||||
ESG MSCI USA(a) | 0.489244 | — | 0.090814 | 0.580058 | 84 | — | 16 | 100 | ||||||||||||||||||||||||||||
ESG MSCI USA Small-Cap(a) | 0.156722 | — | 0.028298 | 0.185020 | 85 | — | 15 | 100 | ||||||||||||||||||||||||||||
MSCI Global Impact(a) | 0.491795 | — | 0.013579 | 0.505374 | 97 | — | 3 | 100 |
(a) | The Fund estimates that it has distributed more than the amount of earned income and net realized gains; therefore, a portion of the distribution may be a return of capital. A return of capital may occur, for example, when some or all of the shareholder’s investment in the Fund is returned to the shareholder. A return of capital does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. When distributions exceed total return performance, the difference will incrementally reduce the Fund’s net asset value per share. |
50 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
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 at www.sec.gov. The iShares Funds also disclose their complete schedule of portfolio holdings on a daily basis on the iShares website at www.iShares.com.
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.
G E N E R A L I N F O R M A T I O N | 51 |
Glossary of Terms Used in this Report
Portfolio Abbreviations — Equity | ||
ADR | American Depositary Receipt | |
NVDR | Non-Voting Depositary Receipt | |
NVS | Non-Voting Shares |
52 | 2 0 1 9 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
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.
©2019 BlackRock, Inc. All rights reserved.iSHARES andBLACKROCKare registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners. |
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.
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 forClosed-End Management Investment Companies. |
Not applicable to the registrant.
Item 8. | Portfolio Managers ofClosed-End Management Investment Companies. |
Not applicable to the registrant.
Item 9. | Purchases of Equity Securities byClosed-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 inRule 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 Rule30a-3(b) under the Investment Company Act of 1940 and Rules13a-15(b) or15d-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 Rule30a-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 forClosed-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.
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 29, 2019 |
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 29, 2019 | ||
By: /s/ Neal Andrews | ||
Neal Andrews, Treasurer and Chief Financial Officer (Principal Financial Officer) | ||
Date: April 29, 2019 |