UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORMN-CSR/A
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: April 30, 2019
Date of reporting period: October 31, 2018
Item 1. Reports to Stockholders.
Explanatory Note: The Registrant is filing this amendment to its FormN-CSR for the period ended October 31, 2018, filed with the Securities and Exchange Commission on January 7, 2019 (Accession Number0001193125-19-003301). The sole purpose of this amendment is the inclusion of the section entitled “Board Review and Approval of Investment Advisory Contract”, which was inadvertently omitted from the original filing. Except for such change, this amendment does not amend, update or change any other items or disclosures found in the original FormN-CSR filing.
Copies of the semi-annual reports transmitted to shareholders pursuant to Rule30e-1 under the Investment Company Act of 1940 are attached.
OCTOBER 31, 2018
2018 SEMI-ANNUAL REPORT (UNAUDITED) |
iShares Trust
iShares MorningstarLarge-Cap ETF | JKD | NYSE Arca
iShares MorningstarLarge-Cap Growth ETF | JKE | NYSE Arca
iShares MorningstarLarge-Cap Value ETF | JKF | NYSE Arca
iShares MorningstarMid-Cap ETF | JKG | NYSE Arca
iShares MorningstarMid-Cap Growth ETF | JKH | NYSE Arca
iShares MorningstarMid-Cap Value ETF | JKI | NASDAQ
iShares MorningstarSmall-Cap ETF | JKJ | NYSE Arca
iShares MorningstarSmall-Cap Growth ETF | JKK | NYSE Arca
iShares MorningstarSmall-Cap Value ETF | JKL | NYSE Arca
Page | ||||
5 | ||||
14 | ||||
14 | ||||
15 | ||||
Financial Statements | ||||
47 | ||||
50 | ||||
53 | ||||
58 | ||||
67 | ||||
77 | ||||
81 | ||||
82 | ||||
83 |
Fund Summaryas of October 31, 2018
| iShares® MorningstarLarge-Cap ETF |
Investment Objective
TheiShares MorningstarLarge-Cap ETF(the “Fund”) seeks to track the investment results of an index composed of large-capitalization U.S. equities, as represented by the Morningstar® Large Core IndexSM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||||||
6 Months | 1 Year | 5 Years | 10 Years | 1 Year | 5 Years | 10 Years | ||||||||||||||||||||||||||
Fund NAV | 4.62 | % | 4.38 | % | 11.01 | % | 13.13% | 4.38 | % | 68.55 | % | 243.24% | ||||||||||||||||||||
Fund Market | 4.59 | 4.38 | 10.99 | 13.08 | 4.38 | 68.43 | 241.83 | |||||||||||||||||||||||||
Index | 4.74 | 4.61 | 11.24 | 13.37 | 4.61 | 70.33 | 250.59 |
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 14 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
| Beginning Account Value (05/01/18) | | | Ending Account Value (10/31/18) | | | Expenses Paid During the Period | (a) | | Beginning Account Value (05/01/18) | | | Ending Account Value (10/31/18) | | | Expenses Paid During the Period | (a) | | Annualized Expense Ratio | | ||||||
$ 1,000.00 | $ | 1,046.20 | $ 1.03 | $ | 1,000.00 | $ 1,024.20 | $ 1.02 | 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 (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 14 for more information. |
Portfolio Information
ALLOCATION BY SECTOR | ||||
Sector | | Percent of Total Investments(a) |
| |
Information Technology | 20.6% | |||
Health Care | 18.3 | |||
Industrials | 15.8 | |||
Financials | 12.0 | |||
Consumer Discretionary | 7.3 | |||
Energy | 7.1 | |||
Communication Services | 6.3 | |||
Consumer Staples | 5.4 | |||
Real Estate | 2.8 | |||
Materials | 2.6 | |||
Utilities | 1.8 |
TEN LARGEST HOLDINGS | ||||
Security | | Percent of Total Investments(a) |
| |
Apple Inc. | 14.8% | |||
Johnson & Johnson | 5.6 | |||
Bank of America Corp. | 3.8 | |||
Chevron Corp. | 3.2 | |||
Comcast Corp., Class A | 2.6 | |||
Walt Disney Co. (The) | 2.6 | |||
Oracle Corp. | 2.1 | |||
McDonald’s Corp. | 2.1 | |||
Altria Group Inc. | 1.9 | |||
Abbott Laboratories | 1.9 |
(a) | Excludes money market funds. |
F U N D S U M M A R Y | 5 |
Fund Summaryas of October 31, 2018
| iShares® Morningstar Large-Cap Growth ETF |
Investment Objective
TheiShares MorningstarLarge-Cap Growth ETF (the “Fund”) seeks to track the investment results of an index composed of large-capitalization U.S. equities that exhibit growth characteristics, as represented by the Morningstar® Large Growth IndexSM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||||||
6 Months | 1 Year | 5 Years | 10 Years | 1 Year | 5 Years | 10 Years | ||||||||||||||||||||||||||
Fund NAV | 2.94 | % | 12.57 | % | 13.45 | % | 15.13% | 12.57 | % | 87.92 | % | 309.18% | ||||||||||||||||||||
Fund Market | 2.94 | 12.60 | 13.43 | 15.10 | 12.60 | 87.81 | 307.96 | |||||||||||||||||||||||||
Index | 3.11 | 13.52 | 13.89 | 15.51 | 13.52 | 91.65 | 322.73 |
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 14 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
| Beginning Account Value (05/01/18) | | | Ending Account Value (10/31/18) | | | Expenses Paid During the Period | (a) | | Beginning Account Value (05/01/18) | | | Ending Account Value (10/31/18) | | | Expenses Paid During the Period | (a) | | Annualized Expense Ratio | | ||||||
$ 1,000.00 | $ 1,029.40 | $ 1.28 | $ 1,000.00 | $ 1,023.90 | $ 1.28 | 0.25 | % |
(a) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 14 for more information. |
Portfolio Information
ALLOCATION BY SECTOR | ||||
Sector | | Percent of Total Investments(a) |
| |
Information Technology | 30.2% | |||
Consumer Discretionary | 16.3 | |||
Health Care | 15.7 | |||
Communication Services | 15.2 | |||
Financials | 6.7 | |||
Industrials | 4.6 | |||
Real Estate | 3.6 | |||
Energy | 3.3 | |||
Consumer Staples | 2.8 | |||
Materials | 1.6 |
TEN LARGEST HOLDINGS | ||||
Security | | Percent of Total Investments(a) |
| |
Microsoft Corp. | 7.4% | |||
Amazon. com Inc. | 6.0 �� | |||
Facebook Inc., Class A | 3.6 | |||
Alphabet Inc., Class C | 3.1 | |||
Alphabet Inc., Class A | 3.0 | |||
UnitedHealth Group Inc. | 2.7 | |||
Visa Inc., Class A | 2.6 | |||
Home Depot Inc. (The) | 2.2 | |||
Boeing Co. (The) | 2.2 | |||
Mastercard Inc., Class A | 2.0 |
(a) | Excludes money market funds. |
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Fund Summaryas of October 31, 2018
| iShares® Morningstar Large-Cap Value ETF |
Investment Objective
TheiShares MorningstarLarge-Cap Value ETF (the “Fund”) seeks to track the investment results of an index composed of large-capitalization U.S. equities that exhibit value characteristics, as represented by the Morningstar® Large Value IndexSM (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 | 3.46 | % | 4.71 | % | 9.10 | % | 10.00% | 4.71 | % | 54.58 | % | 159.43% | ||||||||||||||||||||
Fund Market | 3.46 | 4.70 | 9.08 | 9.94 | 4.70 | 54.44 | 157.92 | |||||||||||||||||||||||||
Index | 3.59 | 4.98 | 9.37 | 10.27 | 4.98 | 56.48 | 165.86 |
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 14 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
| Beginning Account Value (05/01/18) | | | Ending Account Value (10/31/18) | | | Expenses Paid During the Period | (a) | | Beginning Account Value (05/01/18) | | | Ending Account Value (10/31/18) | | | Expenses Paid During the Period | (a) | | Annualized Expense Ratio | | ||||||
$ | 1,000.00 | $ | 1,034.60 | $ | 1.28 | $ | 1,000.00 | $ | 1,023.90 | $ | 1.28 | 0.25 | % |
(a) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 14 for more information. |
Portfolio Information
ALLOCATION BY SECTOR | ||||
Sector | | Percent of Total Investments(a) |
| |
Financials | 26.1% | |||
Consumer Staples | 16.4 | |||
Health Care | 15.0 | |||
Information Technology | 11.3 | |||
Energy | 8.5 | |||
Communication Services | 7.1 | |||
Utilities | 5.4 | |||
Industrials | 5.2 | |||
Materials | 2.6 | |||
Consumer Discretionary | 2.0 | |||
Real Estate | 0.4 |
TEN LARGEST HOLDINGS | ||||
Security | | Percent of Total Investments(a) |
| |
Berkshire Hathaway Inc., Class B | 6.2% | |||
JPMorgan Chase & Co. | 5.6 | |||
Exxon Mobil Corp. | 5.2 | |||
Pfizer Inc. | 3.9 | |||
Verizon Communications Inc. | 3.6 | |||
Wells Fargo & Co. | 3.6 | |||
AT&T Inc. | 3.4 | |||
Procter & Gamble Co. (The) | 3.4 | |||
Intel Corp. | 3.3 | |||
Cisco Systems Inc. | 3.2 |
(a) | Excludes money market funds. |
F U N D S U M M A R Y | 7 |
Fund Summaryas of October 31, 2018
| iShares® MorningstarMid-Cap ETF |
Investment Objective
TheiShares MorningstarMid-Cap ETF(the “Fund”) seeks to track the investment results of an index composed ofmid-capitalization U.S. equities, as represented by the Morningstar® Mid Core IndexSM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||||||
6 Months | 1 Year | 5 Years | 10 Years | 1 Year | 5 Years | 10 Years | ||||||||||||||||||||||||||
Fund NAV | (2.01 | )% | 0.02 | % | 8.74 | % | 14.49% | 0.02 | % | 52.01 | % | 287.07% | ||||||||||||||||||||
Fund Market | (2.12 | ) | (0.06 | ) | 8.72 | 14.47 | (0.06 | ) | 51.88 | 286.39 | ||||||||||||||||||||||
Index | (1.89 | ) | 0.28 | 9.00 | 14.76 | 0.28 | 53.84 | 296.03 |
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 14 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
| Beginning Account Value (05/01/18) | | | Ending Account Value (10/31/18) | | | Expenses Paid During the Period | (a) | | Beginning Account Value (05/01/18) | | | Ending Account Value (10/31/18) | | | Expenses Paid During the Period | (a) | | Annualized Expense Ratio | | ||||||
$ | 1,000.00 | $ | 979.90 | $ | 1.25 | $ | 1,000.00 | $ | 1,023.90 | $ | 1.28 | 0.25 | % |
(a) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 14 for more information. |
Portfolio Information
ALLOCATION BY SECTOR | ||||
Sector | | Percent of Total Investments(a) |
| |
Industrials | 18.2% | |||
Consumer Discretionary | 14.1 | |||
Information Technology | 14.1 | |||
Real Estate | 13.7 | |||
Financials | 13.7 | |||
Health Care | 8.9 | |||
Consumer Staples | 6.0 | |||
Materials | 4.6 | |||
Communication Services | 2.9 | |||
Utilities | 2.0 | |||
Energy | 1.8 |
TEN LARGEST HOLDINGS | ||||
Security | | Percent of Total Investments(a) |
| |
Centene Corp. | 1.5% | |||
Ingersoll-Rand PLC | 1.3 | |||
Xilinx Inc. | 1.2 | |||
Rockwell Collins Inc. | 1.2 | |||
Ventas Inc. | 1.2 | |||
Agilent Technologies Inc. | 1.2 | |||
NetApp Inc. | 1.1 | |||
Dollar Tree Inc. | 1.1 | |||
CBS Corp., Class B | 1.1 | |||
Clorox Co. (The) | 1.1 |
(a) | Excludes money market funds. |
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Fund Summaryas of October 31, 2018
| iShares® MorningstarMid-Cap Growth ETF |
Investment Objective
TheiShares MorningstarMid-Cap Growth ETF(the “Fund”) seeks to track the investment results of an index composed ofmid-capitalization U.S. equities that exhibit growth characteristics, as represented by the Morningstar® Mid Growth IndexSM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||||||
6 Months | 1 Year | 5 Years | 10 Years | 1 Year | 5 Years | 10 Years | ||||||||||||||||||||||||||
Fund NAV | 1.15 | % | 7.69 | % | 9.75 | % | 14.07% | 7.69 | % | 59.20 | % | 272.98% | ||||||||||||||||||||
Fund Market | 1.21 | 7.80 | 9.78 | 14.09 | 7.80 | 59.43 | 273.54 | |||||||||||||||||||||||||
Index | 1.25 | 7.93 | 9.99 | 14.33 | 7.93 | 60.98 | 281.45 |
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 14 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
| Beginning Account Value (05/01/18) | | | Ending Account Value (10/31/18) | | | Expenses Paid During the Period | (a) | | Beginning Account Value (05/01/18) | | | Ending Account Value (10/31/18) | | | Expenses Paid During the Period | (a) | | Annualized Expense Ratio | | ||||||
$ | 1,000.00 | $ | 1,011.50 | $ | 1.52 | $ | 1,000.00 | $ | 1,023.70 | $ | 1.53 | 0.30 | % |
(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 (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 14 for more information. |
Portfolio Information
ALLOCATION BY SECTOR | ||||
Sector | | Percent of Total Investments(a) |
| |
Information Technology | 24.7% | |||
Health Care | 20.1 | |||
Industrials | 17.3 | |||
Consumer Discretionary | 11.1 | |||
Financials | 6.6 | |||
Communication Services | 6.3 | |||
Energy | 5.4 | |||
Real Estate | 5.3 | |||
Materials | 2.2 | |||
Consumer Staples | 1.0 |
TEN LARGEST HOLDINGS | ||||
Security | | Percent of Total Investments(a) |
| |
O’Reilly Automotive Inc. | 1.4% | |||
Twitter Inc. | 1.4 | |||
Square Inc., Class A | 1.2 | |||
Rockwell Automation Inc. | 1.1 | |||
IQVIA Holdings Inc. | 1.1 | |||
Verisk Analytics Inc. | 1.1 | |||
Workday Inc., Class A | 1.1 | |||
Cerner Corp. | 1.0 | |||
IHS Markit Ltd. | 1.0 | |||
SBA Communications Corp. | 1.0 |
(a) | Excludes money market funds. |
F U N D S U M M A R Y | 9 |
Fund Summaryas of October 31, 2018
| iShares® MorningstarMid-Cap Value ETF |
Investment Objective
TheiShares MorningstarMid-Cap Value ETF(the “Fund”) seeks to track the investment results of an index composed ofmid-capitalization U.S. equities that exhibit value characteristics, as represented by the Morningstar® Mid Value IndexSM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||||||
6 Months | 1 Year | 5 Years | 10 Years | 1 Year | 5 Years | 10 Years | ||||||||||||||||||||||||||
Fund NAV | (2.59 | )% | 2.19 | % | 9.12 | % | 14.00% | 2.19 | % | 54.70 | % | 270.71% | ||||||||||||||||||||
Fund Market | (2.55 | ) | 2.20 | 9.11 | 13.99 | 2.20 | 54.67 | 270.43 | ||||||||||||||||||||||||
Index | (2.46 | ) | 2.44 | 9.43 | 14.33 | 2.44 | 56.92 | 281.65 |
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 14 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
| Beginning Account Value (05/01/18) | | | Ending Account Value (10/31/18) | | | Expenses Paid During the Period | (a) | | Beginning Account Value (05/01/18) | | | Ending Account Value (10/31/18) | | | Expenses Paid During the Period | (a) | | Annualized Expense Ratio | | ||||||
$ | 1,000.00 | $ | 974.10 | $ | 1.49 | $ | 1,000.00 | $ | 1,023.70 | $ | 1.53 | 0.30 | % |
(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 (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 14 for more information. |
Portfolio Information
ALLOCATION BY SECTOR | ||||
Sector | | Percent of Total Investments(a) |
| |
Financials | 19.2% | |||
Utilities | 16.3 | |||
Consumer Discretionary | 11.7 | |||
Materials | 11.0 | |||
Industrials | 7.5 | |||
Information Technology | 7.4 | |||
Consumer Staples | 7.0 | |||
Real Estate | 6.5 | |||
Energy | 5.4 | |||
Health Care | 4.1 | |||
Communication Services | 3.9 |
TEN LARGEST HOLDINGS | ||||
Security | | Percent of Total Investments(a) |
| |
Welltower Inc. | 1.5% | |||
Kroger Co. (The) | 1.4 | |||
WEC Energy Group Inc. | 1.3 | |||
PPL Corp. | 1.3 | |||
DTE Energy Co. | 1.2 | |||
Eversource Energy | 1.2 | |||
Motorola Solutions Inc. | 1.2 | |||
CenturyLink Inc. | 1.2 | |||
United Continental Holdings Inc. | 1.2 | |||
AutoZone Inc. | 1.1 |
(a) | Excludes money market funds. |
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Fund Summaryas of October 31, 2018
| iShares® MorningstarSmall-Cap ETF |
Investment Objective
TheiShares MorningstarSmall-Cap ETF (the “Fund”) seeks to track the investment results of an index composed of small-capitalization U.S. equities, as represented by the Morningstar® Small Core IndexSM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||||||
6 Months | 1 Year | 5 Years | 10 Years | 1 Year | 5 Years | 10 Years | ||||||||||||||||||||||||||
Fund NAV | (2.82 | )% | (0.05 | )% | 7.48 | % | 12.91% | (0.05 | )% | 43.43 | % | 236.89% | ||||||||||||||||||||
Fund Market | (2.78 | ) | (0.03 | ) | 7.48 | 12.97 | (0.03 | ) | 43.41 | 238.52 | ||||||||||||||||||||||
Index | (2.74 | ) | 0.14 | 7.59 | 13.06 | 0.14 | 44.15 | 241.37 |
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 14 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
| Beginning Account Value (05/01/18) | | | Ending Account Value (10/31/18) | | | Expenses Paid During the Period | (a) | | Beginning Account Value (05/01/18) | | | Ending Account Value (10/31/18) | | | Expenses Paid During the Period | (a) | | Annualized Expense Ratio | | ||||||
$ | 1,000.00 | $ | 971.80 | $ | 1.24 | $ | 1,000.00 | $ | 1,023.90 | $ | 1.28 | 0.25 | % |
(a) | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 14 for more information. |
Portfolio Information
ALLOCATION BY SECTOR | ||||
Sector | | Percent of Total Investments(a) |
| |
Financials | 20.1% | |||
Industrials | 19.6 | |||
Real Estate | 13.1 | |||
Consumer Discretionary | 9.9 | |||
Information Technology | 9.3 | |||
Health Care | 8.3 | |||
Materials | 5.4 | |||
Consumer Staples | 4.5 | |||
Communication Services | 4.1 | |||
Utilities | 3.0 | |||
Energy | 2.7 |
TEN LARGEST HOLDINGS | ||||
Security | | Percent of Total Investments(a) |
| |
Molina Healthcare Inc. | 1.3% | |||
Haemonetics Corp. | 0.9 | |||
PBF Energy Inc., Class A | 0.9 | |||
Genesee & Wyoming Inc., Class A | 0.8 | |||
Primerica Inc. | 0.8 | |||
Casey’s General Stores Inc. | 0.8 | |||
Kemper Corp. | 0.8 | |||
Ciena Corp. | 0.8 | |||
Cable One Inc. | 0.8 | |||
ITT Inc. | 0.8 |
(a) | Excludes money market funds. |
F U N D S U M M A R Y | 11 |
Fund Summaryas of October 31, 2018
| iShares® MorningstarSmall-Cap Growth ETF |
Investment Objective
TheiShares MorningstarSmall-Cap Growth ETF(the “Fund”) seeks to track the investment results of an index composed of small-capitalization U.S. equities that exhibit growth characteristics, as represented by the Morningstar® Small Growth IndexSM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||||||
6 Months | 1 Year | 5 Years | 10 Years | 1 Year | 5 Years | 10 Years | ||||||||||||||||||||||||||
Fund NAV | 1.64 | % | 6.67 | % | 8.76 | % | 14.27% | 6.67 | % | 52.21 | % | 279.49% | ||||||||||||||||||||
Fund Market | 1.33 | 6.53 | 8.75 | 14.27 | 6.53 | 52.08 | 279.72 | |||||||||||||||||||||||||
Index | 1.75 | 6.85 | 8.85 | 14.39 | 6.85 | 52.83 | 283.50 |
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 14 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
| Beginning Account Value (05/01/18) | | | Ending Account Value (10/31/18) | | | Expenses Paid During the Period | (a) | | Beginning Account Value (05/01/18) | | | Ending Account Value (10/31/18) | | | Expenses Paid During the Period | (a) | | Annualized Expense Ratio | | ||||||
$ | 1,000.00 | $ | 1,016.40 | $ | 1.52 | $ | 1,000.00 | $ | 1,023.70 | $ | 1.53 | 0.30 | % |
(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 (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 14 for more information. |
Portfolio Information
ALLOCATION BY SECTOR | ||||
Sector | | Percent of Total Investments(a) |
| |
Information Technology | 27.7% | |||
Health Care | 24.4 | |||
Consumer Discretionary | 12.8 | |||
Industrials | 12.4 | |||
Real Estate | 4.8 | |||
Communication Services | 4.5 | |||
Financials | 4.3 | |||
Energy | 4.2 | |||
Consumer Staples | 2.1 | |||
Materials | 2.1 | |||
Utilities | 0.7 |
TEN LARGEST HOLDINGS | ||||
Security | | Percent of Total Investments(a) |
| |
Sarepta Therapeutics Inc. | 1.3% | |||
Wayfair Inc., Class A | 1.0 | |||
Five Below Inc. | 1.0 | |||
Integrated Device Technology Inc. | 1.0 | |||
Zendesk Inc. | 0.9 | |||
Twilio Inc., Class A | 0.9 | |||
Euronet Worldwide Inc. | 0.9 | |||
LivaNova PLC | 0.9 | |||
RingCentral Inc., Class A | 0.8 | |||
Universal Display Corp. | 0.8 |
(a) | Excludes money market funds. |
12 | 2 0 1 8 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 Summaryas of October 31, 2018
| iShares® MorningstarSmall-Cap Value ETF |
Investment Objective
TheiShares MorningstarSmall-Cap Value ETF(the “Fund”) seeks to track the investment results of an index composed of small-capitalization U.S. equities that exhibit value characteristics, as represented by the Morningstar® Small Value IndexSM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||||||
6 Months | 1 Year | 5 Years | 10 Years | 1 Year | 5 Years | 10 Years | ||||||||||||||||||||||||||
Fund NAV | (1.90 | )% | (2.47 | )% | 6.66 | % | 12.66% | (2.47 | )% | 38.02 | % | 229.50% | ||||||||||||||||||||
Fund Market | (1.94 | ) | (2.47 | ) | 6.64 | 12.85 | (2.47 | ) | 37.92 | 234.85 | ||||||||||||||||||||||
Index | (1.78 | ) | (2.20 | ) | 6.87 | 12.92 | (2.20 | ) | 39.38 | 237.12 |
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 14 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
| Beginning Account Value (05/01/18) | | | Ending Account Value (10/31/18) | | | Expenses Paid During the Period | (a) | | Beginning Account Value (05/01/18) | | | Ending Account Value (10/31/18) | | | Expenses Paid During the Period | (a) | | Annualized Expense Ratio | | ||||||
$ | 1,000.00 | $ | 981.00 | $ | 1.50 | $ | 1,000.00 | $ | 1,023.70 | $ | 1.53 | 0.30 | % |
(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 (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 14 for more information. |
Portfolio Information
ALLOCATION BY SECTOR | ||||
Sector | | Percent of Total Investments(a) |
| |
Financials | 27.2% | |||
Consumer Discretionary | 12.7 | |||
Real Estate | 12.0 | |||
Industrials | 10.6 | |||
Energy | 7.5 | |||
Utilities | 7.2 | |||
Materials | 6.9 | |||
Information Technology | 6.6 | |||
Consumer Staples | 4.6 | |||
Health Care | 2.5 | |||
Communication Services | 2.2 |
TEN LARGEST HOLDINGS | ||||
Security | | Percent of Total Investments(a) |
| |
Popular Inc. | 0.9% | |||
Dun & Bradstreet Corp. (The) | 0.9 | |||
EPR Properties | 0.9 | |||
Nuance Communications Inc. | 0.9 | |||
Williams-Sonoma Inc. | 0.8 | |||
Hanover Insurance Group Inc. (The) | 0.8 | |||
Ashland Global Holdings Inc. | 0.8 | |||
MGIC Investment Corp. | 0.8 | |||
Assured Guaranty Ltd. | 0.8 | |||
Hospitality Properties Trust | 0.7 |
(a) | Excludes money market funds. |
F U N D S U M M A R Y | 13 |
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. 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.
14 | 2 0 1 8 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)
October 31, 2018 | iShares® MorningstarLarge-Cap ETF
(Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
| |||||||
Aerospace & Defense — 4.9% |
| |||||||
General Dynamics Corp. | 41,462 | $ | 7,155,512 | |||||
Lockheed Martin Corp. | 35,756 | 10,506,901 | ||||||
Northrop Grumman Corp. | 26,027 | 6,817,773 | ||||||
Raytheon Co. | 42,323 | 7,408,218 | ||||||
United Technologies Corp. | 107,160 | 13,310,343 | ||||||
|
| |||||||
45,198,747 | ||||||||
Air Freight & Logistics — 2.0% |
| |||||||
FedEx Corp. | 35,877 | 7,905,138 | ||||||
United Parcel Service Inc., Class B | 100,047 | 10,659,008 | ||||||
|
| |||||||
18,564,146 | ||||||||
Airlines — 0.4% |
| |||||||
Southwest Airlines Co. | 82,023 | 4,027,329 | ||||||
|
| |||||||
Auto Components — 0.4% |
| |||||||
Aptiv PLC | 44,649 | 3,429,043 | ||||||
|
| |||||||
Banks — 5.7% |
| |||||||
Bank of America Corp. | 1,279,674 | 35,191,035 | ||||||
M&T Bank Corp. | 23,933 | 3,958,757 | ||||||
PNC Financial Services Group Inc. (The)(a) | 68,200 | 8,763,018 | ||||||
SunTrust Banks Inc. | 73,486 | 4,604,633 | ||||||
|
| |||||||
52,517,443 | ||||||||
Biotechnology — 3.6% |
| |||||||
AbbVie Inc. | 212,541 | 16,546,317 | ||||||
Biogen Inc.(b) | 29,483 | 8,970,793 | ||||||
Celgene Corp.(b) | 103,842 | 7,435,087 | ||||||
|
| |||||||
32,952,197 | ||||||||
Capital Markets — 1.6% |
| |||||||
Bank of New York Mellon Corp. (The) | 139,189 | 6,587,815 | ||||||
State Street Corp. | 60,091 | 4,131,256 | ||||||
T Rowe Price Group Inc. | 39,845 | 3,864,567 | ||||||
|
| |||||||
14,583,638 | ||||||||
Chemicals — 2.5% |
| |||||||
Air Products & Chemicals Inc. | 34,194 | 5,277,844 | ||||||
Linde PLC | 83,795 | 13,865,558 | ||||||
PPG Industries Inc. | 39,574 | 4,158,832 | ||||||
|
| |||||||
23,302,234 | ||||||||
Commercial Services & Supplies — 0.6% |
| |||||||
Waste Management Inc. | 61,660 | 5,516,720 | ||||||
|
| |||||||
Consumer Finance — 1.5% |
| |||||||
American Express Co. | 102,393 | 10,518,833 | ||||||
Synchrony Financial | 115,744 | 3,342,687 | ||||||
|
| |||||||
13,861,520 | ||||||||
Electric Utilities — 1.3% |
| |||||||
NextEra Energy Inc. | 68,131 | 11,752,598 | ||||||
|
| |||||||
Electrical Equipment — 0.7% |
| |||||||
Emerson Electric Co. | 94,832 | 6,437,196 | ||||||
|
| |||||||
Electronic Equipment, Instruments & Components — 0.9% |
| |||||||
Corning Inc. | 131,302 | 4,195,099 | ||||||
TE Connectivity Ltd. | 55,479 | 4,184,226 | ||||||
|
| |||||||
8,379,325 | ||||||||
Entertainment — 3.7% |
| |||||||
Twenty-First Century Fox Inc., Class A, NVS | 154,158 | 7,017,272 | ||||||
Twenty-First Century Fox Inc., Class B | 71,239 | 3,218,578 |
Security | Shares | Value | ||||||
Entertainment (continued) |
| |||||||
Walt Disney Co. (The) | 207,887 | $ | 23,871,664 | |||||
|
| |||||||
34,107,514 | ||||||||
Equity Real Estate Investment Trusts (REITs) — 2.8% |
| |||||||
AvalonBay Communities Inc. | 22,883 | 4,013,221 | ||||||
Digital Realty Trust Inc.(c) | 34,174 | 3,528,807 | ||||||
Prologis Inc. | 96,504 | 6,221,613 | ||||||
Simon Property Group Inc. | 45,988 | 8,439,718 | ||||||
Weyerhaeuser Co. | 125,015 | 3,329,149 | ||||||
|
| |||||||
25,532,508 | ||||||||
Food & Staples Retailing — 2.1% |
| |||||||
Costco Wholesale Corp. | 62,498 | 14,288,918 | ||||||
Sysco Corp. | 75,085 | 5,355,813 | ||||||
|
| |||||||
19,644,731 | ||||||||
Food Products — 0.6% |
| |||||||
Kraft Heinz Co. (The) | 97,076 | 5,336,268 | ||||||
|
| |||||||
Health Care Equipment & Supplies — 3.2% |
| |||||||
Abbott Laboratories | 248,173 | 17,109,047 | ||||||
Danaher Corp. | 90,381 | 8,983,871 | ||||||
Zimmer Biomet Holdings Inc. | 33,422 | 3,796,405 | ||||||
|
| |||||||
29,889,323 | ||||||||
Health Care Providers & Services — 2.2% |
| |||||||
Aetna Inc. | 47,980 | 9,519,232 | ||||||
Anthem Inc. | 37,956 | 10,459,535 | ||||||
|
| |||||||
19,978,767 | ||||||||
Hotels, Restaurants & Leisure — 3.2% |
| |||||||
Carnival Corp. | 66,546 | 3,729,238 | ||||||
Las Vegas Sands Corp. | 62,604 | 3,194,682 | ||||||
McDonald’s Corp. | 109,558 | 19,380,810 | ||||||
Royal Caribbean Cruises Ltd. | 29,120 | 3,049,738 | ||||||
|
| |||||||
29,354,468 | ||||||||
Household Products — 0.8% |
| |||||||
Colgate-Palmolive Co. | 128,540 | 7,654,557 | ||||||
|
| |||||||
Industrial Conglomerates — 3.3% |
| |||||||
3M Co. | 82,925 | 15,777,310 | ||||||
Honeywell International Inc. | 104,952 | 15,199,149 | ||||||
|
| |||||||
30,976,459 | ||||||||
Insurance — 3.2% |
| |||||||
Allstate Corp. (The) | 54,485 | 5,215,304 | ||||||
American International Group Inc. | 134,485 | 5,552,886 | ||||||
Aon PLC | 37,854 | 5,912,038 | ||||||
Marsh & McLennan Companies Inc. | 77,098 | 6,534,055 | ||||||
Progressive Corp. (The) | 90,066 | 6,277,600 | ||||||
|
| |||||||
29,491,883 | ||||||||
Internet & Direct Marketing Retail — 0.5% |
| |||||||
eBay Inc.(b) | 148,278 | 4,304,510 | ||||||
|
| |||||||
IT Services — 0.4% |
| |||||||
DXC Technology Co. | 46,329 | 3,374,141 | ||||||
|
| |||||||
Machinery — 1.3% |
| |||||||
Illinois Tool Works Inc. | 46,996 | 5,995,280 | ||||||
Parker-Hannifin Corp. | 22,005 | 3,336,618 | ||||||
Stanley Black & Decker Inc. | 25,874 | 3,014,838 | ||||||
|
| |||||||
12,346,736 | ||||||||
Media — 2.6% |
| |||||||
Comcast Corp., Class A | 638,304 | 24,344,915 | ||||||
|
|
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)
October 31, 2018 | iShares® MorningstarLarge-Cap ETF
(Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Metals & Mining — 0.1% |
| |||||||
Southern Copper Corp. | 30,360 | $ | 1,164,002 | |||||
|
| |||||||
Multi-Utilities — 0.5% |
| |||||||
Sempra Energy | 43,438 | 4,783,393 | ||||||
|
| |||||||
Multiline Retail — 0.5% |
| |||||||
Dollar General Corp. | 42,955 | 4,784,328 | ||||||
|
| |||||||
Oil, Gas & Consumable Fuels — 7.1% |
| |||||||
Anadarko Petroleum Corp. | 81,418 | 4,331,438 | ||||||
Chevron Corp. | 265,307 | 29,621,526 | ||||||
Continental Resources Inc./OK(b) | 24,492 | 1,290,239 | ||||||
EOG Resources Inc. | 84,769 | 8,929,566 | ||||||
Kinder Morgan Inc./DE | 299,085 | 5,090,427 | ||||||
Marathon Petroleum Corp. | 104,164 | 7,338,354 | ||||||
ONEOK Inc. | 67,179 | 4,406,942 | ||||||
Williams Companies Inc. (The) | 190,829 | 4,642,870 | ||||||
|
| |||||||
65,651,362 | ||||||||
Pharmaceuticals — 9.3% |
| |||||||
Allergan PLC | 47,192 | 7,456,808 | ||||||
Bristol-Myers Squibb Co. | 233,081 | 11,779,914 | ||||||
Eli Lilly & Co. | 136,372 | 14,788,180 | ||||||
Johnson & Johnson | 367,769 | 51,483,982 | ||||||
|
| |||||||
85,508,884 | ||||||||
Road & Rail — 2.4% |
| |||||||
Norfolk Southern Corp. | 42,122 | 7,069,335 | ||||||
Union Pacific Corp. | 104,760 | 15,318,007 | ||||||
|
| |||||||
22,387,342 | ||||||||
Semiconductors & Semiconductor Equipment — 2.4% |
| |||||||
Analog Devices Inc. | 58,543 | 4,900,635 | ||||||
Broadcom Inc. | 61,558 | 13,757,597 | ||||||
Lam Research Corp. | 26,317 | 3,729,908 | ||||||
|
| |||||||
22,388,140 | ||||||||
Software — 2.1% |
| |||||||
Oracle Corp. | 397,355 | 19,406,818 | ||||||
|
| |||||||
Specialty Retail — 2.3% |
| |||||||
Lowe’s Companies Inc. | 116,293 | 11,073,419 |
Security | Shares | Value | ||||||
Specialty Retail (continued) |
| |||||||
TJX Companies Inc. (The) | 91,779 | $ | 10,084,677 | |||||
|
| |||||||
21,158,096 | ||||||||
Technology Hardware, Storage & Peripherals — 14.8% |
| |||||||
Apple Inc. | 622,981 | 136,345,622 | ||||||
|
| |||||||
Textiles, Apparel & Luxury Goods — 0.5% |
| |||||||
VF Corp. | 52,380 | 4,341,254 | ||||||
|
| |||||||
Tobacco — 1.9% |
| |||||||
Altria Group Inc. | 266,998 | 17,365,550 | ||||||
|
| |||||||
Total Common Stocks — 99.9% |
| 922,143,707 | ||||||
|
| |||||||
Short-Term Investments | ||||||||
Money Market Funds — 0.4% |
| |||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 2.36%(a)(d)(e) | 3,613,819 | 3,614,541 | ||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 2.11%(a)(d) | 278,683 | 278,683 | ||||||
|
| |||||||
3,893,224 | ||||||||
|
| |||||||
Total Short-Term Investments — 0.4% |
| 3,893,224 | ||||||
|
| |||||||
Total Investments in Securities — 100.3% |
| 926,036,931 | ||||||
Other Assets, Less Liabilities — (0.3)% |
| (2,708,214 | ) | |||||
|
| |||||||
Net Assets — 100.0% | $ | 923,328,717 | ||||||
|
|
(a) | Affiliate of the Fund. |
(b) | Non-income producing security. |
(c) | All or a portion of this security is on loan. |
(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 October 31, 2018, for purposes of
Section 2(a)(3) of the 1940 Act, were as follows:
Affiliated Issuer | | Shares Held at 04/30/18 | | | Shares Purchased | | | Shares Sold | | | Shares Held at 10/31/18 | | | Value at 10/31/18 | | Income | | Net Realized | | | Change in Unrealized Appreciation (Depreciation | ) | ||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | — | 3,613,819 | (b) | — | 3,613,819 | $ | 3,614,541 | $ | 2,819 | (c) | $ | 420 | $ | (183 | ) | |||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 506,865 | — | (228,182 | )(b) | 278,683 | 278,683 | 14,645 | — | — | |||||||||||||||||||||||
PNC Financial Services Group Inc. (The) | 72,715 | 4,480 | (8,995 | ) | 68,200 | 8,763,018 | 131,751 | (56,971 | ) | (1,149,542 | ) | |||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 12,656,242 | $ | 149,215 | $ | (56,551 | ) | $ | (1,149,725 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
(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. |
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.
16 | 2 0 1 8 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)
October 31, 2018 | iShares® MorningstarLarge-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 October 31, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common Stocks | $ | 922,143,707 | $ | — | $ | — | $ | 922,143,707 | ||||||||
Money Market Funds | 3,893,224 | — | — | 3,893,224 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 926,036,931 | $ | — | $ | — | $ | 926,036,931 | |||||||||
|
|
|
|
|
|
|
|
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)
October 31, 2018 | iShares® MorningstarLarge-Cap Growth ETF
(Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
| |||||||
Aerospace & Defense — 2.2% |
| |||||||
Boeing Co. (The) | 59,510 | $ | 21,117,719 | |||||
|
| |||||||
Automobiles — 1.0% |
| |||||||
Tesla Inc.(a)(b) | 29,967 | 10,108,468 | ||||||
|
| |||||||
Beverages — 2.0% |
| |||||||
Brown-Forman Corp., Class A | 35,971 | 1,667,975 | ||||||
Brown-Forman Corp., Class B, NVS | 77,326 | 3,583,287 | ||||||
Constellation Brands Inc., Class A | 40,061 | 7,981,353 | ||||||
Monster Beverage Corp.(a) | 126,324 | 6,676,224 | ||||||
|
| |||||||
19,908,839 | ||||||||
Biotechnology — 2.4% |
| |||||||
Alexion Pharmaceuticals Inc.(a) | 65,412 | 7,330,723 | ||||||
Regeneron Pharmaceuticals Inc.(a) | 20,576 | 6,980,202 | ||||||
Vertex Pharmaceuticals Inc.(a) | 52,140 | 8,835,644 | ||||||
|
| |||||||
23,146,569 | ||||||||
Capital Markets — 6.7% |
| |||||||
BlackRock Inc.(c) | 21,712 | 8,932,751 | ||||||
Charles Schwab Corp. (The) | 207,965 | 9,616,301 | ||||||
CME Group Inc. | 60,207 | 11,032,331 | ||||||
Intercontinental Exchange Inc. | 118,674 | 9,142,645 | ||||||
Moody’s Corp. | 44,437 | 6,464,695 | ||||||
Northern Trust Corp. | 71,855 | 6,759,400 | ||||||
S&P Global Inc. | 46,775 | 8,528,018 | ||||||
TD Ameritrade Holding Corp. | 103,437 | 5,349,762 | ||||||
|
| |||||||
65,825,903 | ||||||||
Chemicals — 1.6% |
| |||||||
Ecolab Inc. | 56,392 | 8,636,435 | ||||||
Sherwin-Williams Co. (The) | 18,675 | 7,348,052 | ||||||
|
| |||||||
15,984,487 | ||||||||
Electronic Equipment, Instruments & Components — 0.7% |
| |||||||
Amphenol Corp., Class A | 82,278 | 7,363,881 | ||||||
|
| |||||||
Energy Equipment & Services — 1.8% |
| |||||||
Halliburton Co. | 216,524 | 7,509,052 | ||||||
Schlumberger Ltd. | 205,013 | 10,519,217 | ||||||
|
| |||||||
18,028,269 | ||||||||
Entertainment — 3.2% |
| |||||||
Activision Blizzard Inc. | 131,342 | 9,069,165 | ||||||
Electronic Arts Inc.(a) | 73,849 | 6,718,782 | ||||||
Netflix Inc.(a) | 51,165 | 15,440,574 | ||||||
|
| |||||||
31,228,521 | ||||||||
Equity Real Estate Investment Trusts (REITs) — 3.6% |
| |||||||
American Tower Corp. | 74,148 | 11,553,000 | ||||||
Crown Castle International Corp.(b) | 84,104 | 9,145,469 | ||||||
Equinix Inc. | 18,976 | 7,186,970 | ||||||
Public Storage(b) | 35,952 | 7,387,057 | ||||||
|
| |||||||
35,272,496 | ||||||||
Health Care Equipment & Supplies — 5.5% |
| |||||||
Baxter International Inc. | 112,638 | 7,041,001 | ||||||
Becton Dickinson and Co. | 43,423 | 10,009,002 | ||||||
Boston Scientific Corp.(a) | 262,816 | 9,498,170 | ||||||
Edwards Lifesciences Corp.(a) | 54,860 | 8,097,336 | ||||||
Intuitive Surgical Inc.(a) | 19,169 | 9,990,500 | ||||||
Stryker Corp. | 58,206 | 9,442,177 | ||||||
|
| |||||||
54,078,186 |
Security | Shares | Value | ||||||
Health Care Providers & Services — 4.6% |
| |||||||
Cigna Corp. | 48,562 | $ | 10,383,041 | |||||
Humana Inc. | 27,706 | 8,877,280 | ||||||
UnitedHealth Group Inc. | 100,315 | 26,217,325 | ||||||
|
| |||||||
45,477,646 | ||||||||
Hotels, Restaurants & Leisure — 3.6% |
| |||||||
Hilton Worldwide Holdings Inc. | 94,110 | 6,697,809 | ||||||
Marriott International Inc./MD, Class A | 66,442 | 7,766,405 | ||||||
Starbucks Corp. | 212,799 | 12,399,798 | ||||||
Yum! Brands Inc. | 89,267 | 8,070,629 | ||||||
|
| |||||||
34,934,641 | ||||||||
Industrial Conglomerates — 0.8% |
| |||||||
Roper Technologies Inc. | 26,431 | 7,477,330 | ||||||
|
| |||||||
Interactive Media & Services — 9.7% |
| |||||||
Alphabet Inc., Class A(a) | 26,999 | 29,444,570 | ||||||
Alphabet Inc., Class C, NVS(a) | 27,812 | 29,947,127 | ||||||
Facebook Inc., Class A(a) | 233,133 | 35,387,258 | ||||||
|
| |||||||
94,778,955 | ||||||||
Internet & Direct Marketing Retail — 7.3% |
| |||||||
Amazon.com Inc.(a) | 36,606 | 58,496,753 | ||||||
Booking Holdings Inc.(a) | 6,819 | 12,782,761 | ||||||
|
| |||||||
71,279,514 | ||||||||
IT Services — 12.4% |
| |||||||
Accenture PLC, Class A | 85,265 | 13,439,470 | ||||||
Automatic Data Processing Inc. | 73,866 | 10,642,613 | ||||||
Cognizant Technology Solutions Corp., Class A | 120,770 | 8,336,753 | ||||||
Fidelity National Information Services Inc. | 77,660 | 8,084,406 | ||||||
Fiserv Inc.(a) | 101,794 | 8,072,264 | ||||||
Mastercard Inc., Class A | 100,754 | 19,916,043 | ||||||
Paychex Inc. | 101,235 | 6,629,880 | ||||||
PayPal Holdings Inc.(a) | 158,954 | 13,382,337 | ||||||
Visa Inc., Class A | 184,135 | 25,383,010 | ||||||
Worldpay Inc., Class A(a) | 81,101 | 7,448,316 | ||||||
|
| |||||||
121,335,092 | ||||||||
Life Sciences Tools & Services — 2.2% |
| |||||||
Illumina Inc.(a) | 27,884 | 8,676,107 | ||||||
Thermo Fisher Scientific Inc. | 56,202 | 13,131,597 | ||||||
|
| |||||||
21,807,704 | ||||||||
Machinery — 0.7% |
| |||||||
Fortive Corp. | 89,364 | 6,635,277 | ||||||
|
| |||||||
Media — 1.6% |
| |||||||
Charter Communications Inc., | 32,202 | 10,316,554 | ||||||
Sirius XM Holdings Inc. | 888,589 | 5,349,306 | ||||||
|
| |||||||
15,665,860 | ||||||||
Oil, Gas & Consumable Fuels — 1.5% |
| |||||||
Concho Resources Inc.(a)(b) | 55,904 | 7,775,687 | ||||||
Pioneer Natural Resources Co. | 46,689 | 6,875,889 | ||||||
|
| |||||||
14,651,576 | ||||||||
Personal Products — 0.8% |
| |||||||
Estee Lauder Companies Inc. (The), Class A | 57,995 | 7,970,833 | ||||||
|
| |||||||
Pharmaceuticals — 0.9% |
| |||||||
Zoetis Inc. | 102,216 | 9,214,772 | ||||||
|
| |||||||
Road & Rail — 1.0% |
| |||||||
CSX Corp. | 143,002 | 9,847,118 | ||||||
|
| |||||||
Semiconductors & Semiconductor Equipment — 3.4% |
| |||||||
Applied Materials Inc. | 201,458 | 6,623,939 |
18 | 2 0 1 8 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)
October 31, 2018 | iShares® MorningstarLarge-Cap Growth ETF
(Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Semiconductors & Semiconductor Equipment (continued) |
| |||||||
NVIDIA Corp. | 70,282 | $ | 14,817,554 | |||||
Texas Instruments Inc. | 132,979 | 12,344,441 | ||||||
|
| |||||||
33,785,934 | ||||||||
Software — 13.6% |
| |||||||
Adobe Inc.(a) | 60,638 | 14,902,395 | ||||||
Autodesk Inc.(a) | 54,803 | 7,083,288 | ||||||
Intuit Inc. | 45,796 | 9,662,956 | ||||||
Microsoft Corp. | 681,330 | 72,772,857 | ||||||
Red Hat Inc.(a) | 46,025 | 7,899,731 | ||||||
salesforce.com Inc.(a) | 97,740 | 13,413,837 | ||||||
ServiceNow Inc.(a) | 42,092 | 7,620,336 | ||||||
|
| |||||||
133,355,400 | ||||||||
Specialty Retail — 3.1% |
| |||||||
Home Depot Inc. (The) | 120,953 | 21,273,214 | ||||||
Ross Stores Inc. | 88,520 | 8,763,480 | ||||||
|
| |||||||
30,036,694 | ||||||||
Textiles, Apparel & Luxury Goods — 1.3% |
| |||||||
NIKE Inc., Class B | 172,268 | 12,926,991 | ||||||
|
| |||||||
Wireless Telecommunication Services — 0.7% |
| |||||||
T-Mobile U.S. Inc.(a) | 107,345 | 7,358,500 | ||||||
|
| |||||||
Total Common Stocks — 99.9% | 980,603,175 | |||||||
|
|
Security | Shares | Value | ||||||
Short-Term Investments |
| �� | ||||||
Money Market Funds — 1.4% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 2.36%(c)(d)(e) | 12,477,923 | $ | 12,480,419 | |||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 2.11%(c)(d) | 1,088,637 | 1,088,637 | ||||||
|
| |||||||
13,569,056 | ||||||||
|
| |||||||
Total Short-Term Investments — 1.4% |
| 13,569,056 | ||||||
|
| |||||||
Total Investments in Securities — 101.3% |
| 994,172,231 | ||||||
Other Assets, Less Liabilities — (1.3)% |
| (12,377,443 | ) | |||||
|
| |||||||
Net Assets — 100.0% | $ | 981,794,788 | ||||||
|
|
(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 October 31, 2018, for purposes of
Section 2(a)(3) of the 1940 Act, were as follows:
Affiliated Issuer | | Shares Held at 04/30/18 | | | Shares Purchased | | | Shares Sold | | | Shares Held at 10/31/18 | | | Value at 10/31/18 | | Income | | Net Realized | | | Change in Unrealized Appreciation (Depreciation | ) | ||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | 18,324,574 | — | (5,846,651 | )(b) | 12,477,923 | $ | 12,480,419 | $ | 129,825 | (c) | $ | 2,904 | $ | (1,183 | ) | |||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 1,161,372 | — | (72,735 | )(b) | 1,088,637 | 1,088,637 | 9,868 | — | — | |||||||||||||||||||||||
BlackRock Inc. | 17,935 | 4,007 | (230 | ) | 21,712 | 8,932,751 | 113,876 | 39,400 | (2,371,804 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
$ | 22,501,807 | $ | 253,569 | $ | 42,304 | $ | (2,372,987 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
(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. |
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 October 31, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common Stocks | $ | 980,603,175 | $ | — | $ | — | $ | 980,603,175 | ||||||||
Money Market Funds | 13,569,056 | — | — | 13,569,056 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 994,172,231 | $ | — | $ | — | $ | 994,172,231 | |||||||||
|
|
|
|
|
|
|
|
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 |
Schedule of Investments(unaudited)
October 31, 2018 | iShares® MorningstarLarge-Cap Value ETF
(Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
| |||||||
Airlines — 0.5% |
| |||||||
Delta Air Lines Inc. | 37,500 | $ | 2,052,375 | |||||
|
| |||||||
Automobiles — 1.3% |
| |||||||
Ford Motor Co. | 233,328 | 2,228,282 | ||||||
General Motors Co. | 78,171 | 2,860,277 | ||||||
|
| |||||||
5,088,559 | ||||||||
Banks — 13.5% |
| |||||||
BB&T Corp. | 46,144 | 2,268,439 | ||||||
Citigroup Inc. | 149,928 | 9,814,287 | ||||||
JPMorgan Chase & Co. | 200,227 | 21,828,747 | ||||||
U.S. Bancorp. | 91,228 | 4,768,488 | ||||||
Wells Fargo & Co. | 258,232 | 13,745,689 | ||||||
|
| |||||||
52,425,650 | ||||||||
Beverages — 5.3% |
| |||||||
Coca-Cola Co. (The) | 228,034 | 10,918,268 | ||||||
PepsiCo Inc. | 84,259 | 9,469,026 | ||||||
|
| |||||||
20,387,294 | ||||||||
Biotechnology — 3.3% |
| |||||||
Amgen Inc. | 38,562 | 7,434,368 | ||||||
Gilead Sciences Inc. | 77,230 | 5,265,541 | ||||||
|
| |||||||
12,699,909 | ||||||||
Building Products — 0.5% |
| |||||||
Johnson Controls International PLC | 55,038 | 1,759,565 | ||||||
|
| |||||||
Capital Markets — 2.1% |
| |||||||
Goldman Sachs Group Inc. (The) | 20,919 | 4,714,515 | ||||||
Morgan Stanley | 79,000 | 3,607,140 | ||||||
|
| |||||||
8,321,655 | ||||||||
Chemicals — 2.3% |
| |||||||
DowDuPont Inc. | 137,464 | 7,412,059 | ||||||
LyondellBasell Industries NV, Class A | 18,997 | 1,695,862 | ||||||
|
| |||||||
9,107,921 | ||||||||
Communications Equipment — 3.2% |
| |||||||
Cisco Systems Inc. | 272,340 | 12,459,555 | ||||||
|
| |||||||
Consumer Finance — 1.0% |
| |||||||
Capital One Financial Corp. | 28,502 | 2,545,228 | ||||||
Discover Financial Services | 20,398 | 1,421,129 | ||||||
|
| |||||||
3,966,357 | ||||||||
Containers & Packaging — 0.3% |
| |||||||
International Paper Co. | 24,364 | 1,105,151 | ||||||
|
| |||||||
Diversified Financial Services — 6.2% |
| |||||||
Berkshire Hathaway Inc., Class B(a) | 116,139 | 23,841,014 | ||||||
|
| |||||||
Diversified Telecommunication Services — 7.1% |
| |||||||
AT&T Inc. | 432,639 | 13,273,364 | ||||||
Verizon Communications Inc. | 246,163 | 14,053,446 | ||||||
|
| |||||||
27,326,810 | ||||||||
Electric Utilities — 3.9% |
| |||||||
American Electric Power Co. Inc. | 29,374 | 2,154,877 | ||||||
Duke Energy Corp. | 42,439 | 3,506,735 | ||||||
Edison International | 19,410 | 1,346,860 | ||||||
Exelon Corp. | 57,545 | 2,521,046 | ||||||
PG&E Corp. | 30,787 | 1,441,139 | ||||||
Southern Co. (The) | 60,418 | 2,720,623 | ||||||
Xcel Energy Inc. | 30,329 | 1,486,424 | ||||||
|
| |||||||
15,177,704 |
Security | Shares | Value | ||||||
Electrical Equipment — 0.5% |
| |||||||
Eaton Corp. PLC | 25,832 | $ | 1,851,380 | |||||
|
| |||||||
Equity Real Estate Investment Trusts (REITs) — 0.4% |
| |||||||
Equity Residential | 21,941 | 1,425,287 | ||||||
|
| |||||||
Food & Staples Retailing — 3.2% |
| |||||||
Walgreens Boots Alliance Inc. | 50,255 | 4,008,841 | ||||||
Walmart Inc. | 85,496 | 8,573,539 | ||||||
|
| |||||||
12,582,380 | ||||||||
Food Products — 1.8% |
| |||||||
Archer-Daniels-Midland Co. | 33,315 | 1,574,134 | ||||||
General Mills Inc. | 35,475 | 1,553,805 | ||||||
Mondelez International Inc., Class A | 87,371 | 3,667,834 | ||||||
|
| |||||||
6,795,773 | ||||||||
Health Care Equipment & Supplies — 1.9% |
| |||||||
Medtronic PLC | 80,458 | 7,226,738 | ||||||
|
| |||||||
Health Care Providers & Services — 2.9% |
| |||||||
CVS Health Corp. | 60,652 | 4,390,598 | ||||||
Express Scripts Holding Co.(a) | 33,495 | 3,248,010 | ||||||
HCA Healthcare Inc. | 16,086 | 2,147,964 | ||||||
McKesson Corp. | 11,892 | 1,483,646 | ||||||
|
| |||||||
11,270,218 | ||||||||
Household Products — 4.0% |
| |||||||
Kimberly-Clark Corp. | 20,717 | 2,160,783 | ||||||
Procter & Gamble Co. (The) | 148,293 | 13,150,623 | ||||||
|
| |||||||
15,311,406 | ||||||||
Industrial Conglomerates — 1.3% |
| |||||||
General Electric Co. | 517,777 | 5,229,548 | ||||||
|
| |||||||
Insurance — 3.1% |
| |||||||
Aflac Inc. | 45,768 | 1,971,228 | ||||||
Chubb Ltd. | 27,599 | 3,447,391 | ||||||
MetLife Inc. | 59,268 | 2,441,249 | ||||||
Prudential Financial Inc. | 24,843 | 2,329,776 | ||||||
Travelers Companies Inc. (The) | 15,958 | 1,996,825 | ||||||
|
| |||||||
12,186,469 | ||||||||
IT Services — 1.6% |
| |||||||
International Business Machines Corp. | 54,379 | 6,276,968 | ||||||
|
| |||||||
Machinery — 2.4% |
| |||||||
Caterpillar Inc. | 35,407 | 4,295,577 | ||||||
Cummins Inc. | 8,951 | 1,223,512 | ||||||
Deere & Co. | 19,164 | 2,595,572 | ||||||
PACCAR Inc. | 20,884 | 1,194,774 | ||||||
|
| |||||||
9,309,435 | ||||||||
Multi-Utilities — 1.5% |
| |||||||
Consolidated Edison Inc. | 18,534 | 1,408,584 | ||||||
Dominion Energy Inc. | 38,949 | 2,781,737 | ||||||
Public Service Enterprise Group Inc. | 30,076 | 1,606,961 | ||||||
|
| |||||||
5,797,282 | ||||||||
Multiline Retail — 0.7% |
| |||||||
Target Corp. | 31,358 | 2,622,470 | ||||||
|
| |||||||
Oil, Gas & Consumable Fuels — 8.5% |
| |||||||
ConocoPhillips | 69,233 | 4,839,386 | ||||||
Exxon Mobil Corp. | 252,232 | 20,097,846 | ||||||
Occidental Petroleum Corp. | 45,559 | 3,055,642 | ||||||
Phillips 66 | 25,446 | 2,616,358 |
20 | 2 0 1 8 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)
October 31, 2018 | iShares® MorningstarLarge-Cap Value ETF
(Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Oil, Gas & Consumable Fuels (continued) |
| |||||||
Valero Energy Corp. | 25,464 | $ | 2,319,516 | |||||
|
| |||||||
32,928,748 | ||||||||
Pharmaceuticals — 6.9% |
| |||||||
Merck & Co. Inc. | 158,443 | 11,662,989 | ||||||
Pfizer Inc. | 349,239 | 15,038,232 | ||||||
|
| |||||||
26,701,221 | ||||||||
Semiconductors & Semiconductor Equipment — 5.4% |
| |||||||
Intel Corp. | 274,703 | 12,878,077 | ||||||
Micron Technology Inc.(a) | 69,097 | 2,606,339 | ||||||
QUALCOMM Inc. | 83,788 | 5,269,427 | ||||||
|
| |||||||
20,753,843 | ||||||||
Technology Hardware, Storage & Peripherals — 1.1% |
| |||||||
Hewlett Packard Enterprise Co. | 87,674 | 1,337,029 | ||||||
HP Inc. | 94,287 | 2,276,088 | ||||||
Western Digital Corp. | 17,392 | 749,073 | ||||||
|
| |||||||
4,362,190 | ||||||||
Tobacco — 2.1% |
| |||||||
Philip Morris International Inc. | 92,611 | 8,156,251 | ||||||
|
| |||||||
Wireless Telecommunication Services — 0.1% |
| |||||||
Sprint Corp.(a) | 34,023 | 208,221 | ||||||
|
| |||||||
Total Common Stocks — 99.9% | 386,715,347 | |||||||
|
|
Security | Shares | Value | ||||||
Short-Term Investments | ||||||||
Money Market Funds — 0.1% |
| |||||||
BlackRock Cash Funds: Treasury, | 436,056 | $ | 436,056 | |||||
|
| |||||||
Total Short-Term Investments — 0.1% | 436,056 | |||||||
|
| |||||||
Total Investments in Securities — 100.0% |
| 387,151,403 | ||||||
Other Assets, Less Liabilities — (0.0)% |
| (113,945 | ) | |||||
|
| |||||||
Net Assets — 100.0% | $ | 387,037,458 | ||||||
|
|
(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 October 31, 2018, 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 | 04/30/18 | Net Activity | 10/31/18 | 10/31/18 | Income | Gain (Loss) | (a) | (Depreciation) | ||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | 273,624 | (273,624) | — | $ | — | $ | 738 | (b) | $ | 159 | $ | (7) | ||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 503,723 | (67,667) | 436,056 | 436,056 | 5,425 | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
$ | 436,056 | $ | 6,163 | $ | 159 | $ | (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. |
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 October 31, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common Stocks | $ | 386,715,347 | $ | — | $ | — | $ | 386,715,347 | ||||||||
Money Market Funds | 436,056 | — | — | 436,056 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 387,151,403 | $ | — | $ | — | $ | 387,151,403 | |||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
S C H E D U L E O F I N V E S T M E N T S | 21 |
Schedule of Investments(unaudited)
October 31, 2018 | iShares® MorningstarMid-Cap ETF
(Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Aerospace & Defense — 4.5% |
| |||||||
Curtiss-Wright Corp. | 17,129 | $ | 1,874,940 | |||||
Harris Corp. | 45,765 | 6,805,713 | ||||||
L3 Technologies Inc. | 30,506 | 5,779,972 | ||||||
Rockwell Collins Inc. | 64,015 | 8,195,200 | ||||||
Spirit AeroSystems Holdings Inc., Class A | 41,478 | 3,484,567 | ||||||
Textron Inc. | 96,747 | 5,188,542 | ||||||
|
| |||||||
31,328,934 | ||||||||
Air Freight & Logistics — 1.4% |
| |||||||
CH Robinson Worldwide Inc. | 53,958 | 4,803,881 | ||||||
Expeditors International of Washington Inc. | 67,898 | 4,561,387 | ||||||
|
| |||||||
9,365,268 | ||||||||
Auto Components — 0.3% |
| |||||||
Gentex Corp. | 104,733 | 2,204,630 | ||||||
|
| |||||||
Automobiles — 0.2% |
| |||||||
Thor Industries Inc. | 19,497 | 1,357,771 | ||||||
|
| |||||||
Banks — 6.1% |
| |||||||
Bank OZK(a) | 46,818 | 1,280,940 | ||||||
BOK Financial Corp. | 12,368 | 1,060,309 | ||||||
Citizens Financial Group Inc. | 185,364 | 6,923,345 | ||||||
Comerica Inc. | 66,754 | 5,444,456 | ||||||
Commerce Bancshares Inc. | 36,956 | 2,350,402 | ||||||
Cullen/Frost Bankers Inc. | 24,890 | 2,437,229 | ||||||
East West Bancorp. Inc. | 56,439 | 2,959,661 | ||||||
Signature Bank/New York NY | 21,558 | 2,369,224 | ||||||
Sterling Bancorp./DE | 87,815 | 1,578,914 | ||||||
SVB Financial Group(b) | 20,725 | 4,916,592 | ||||||
Synovus Financial Corp. | 45,703 | 1,716,605 | ||||||
Webster Financial Corp. | 35,920 | 2,113,533 | ||||||
Western Alliance Bancorp.(b) | 37,930 | 1,829,743 | ||||||
Wintrust Financial Corp. | 21,952 | 1,671,425 | ||||||
Zions Bancorp. N.A | 75,713 | 3,562,297 | ||||||
|
| |||||||
42,214,675 | ||||||||
Beverages — 0.9% |
| |||||||
Keurig Dr Pepper Inc. | 70,312 | 1,828,112 | ||||||
Molson Coors Brewing Co., Class B | 72,898 | 4,665,472 | ||||||
|
| |||||||
6,493,584 | ||||||||
Building Products — 1.4% |
| |||||||
Fortune Brands Home & Security Inc. | 55,468 | 2,486,630 | ||||||
Masco Corp. | 119,752 | 3,592,560 | ||||||
Owens Corning | 43,197 | 2,041,922 | ||||||
USG Corp. | 33,140 | 1,399,171 | ||||||
|
| |||||||
9,520,283 | ||||||||
Capital Markets — 2.8% |
| |||||||
Affiliated Managers Group Inc. | 20,810 | 2,365,264 | ||||||
Ameriprise Financial Inc. | 55,251 | 7,030,137 | ||||||
LPL Financial Holdings Inc. | 34,310 | 2,113,496 | ||||||
Nasdaq Inc. | 44,849 | 3,888,857 | ||||||
Raymond James Financial Inc. | 51,136 | 3,921,620 | ||||||
|
| |||||||
19,319,374 | ||||||||
Chemicals — 3.4% |
| |||||||
Albemarle Corp. | 42,237 | 4,190,755 | ||||||
Axalta Coating Systems Ltd.(b) | 83,395 | 2,058,188 | ||||||
Chemours Co. (The) | 68,875 | 2,273,564 | ||||||
International Flavors & Fragrances Inc., New | 39,420 | 5,702,497 | ||||||
NewMarket Corp. | 3,479 | 1,342,755 |
Security | Shares | Value | ||||||
Chemicals (continued) |
| |||||||
Olin Corp. | 65,041 | $ | 1,313,828 | |||||
RPM International Inc. | 51,971 | 3,179,066 | ||||||
ScottsMiracle-Gro Co. (The) | 15,227 | 1,016,250 | ||||||
Westlake Chemical Corp. | 14,060 | 1,002,478 | ||||||
WR Grace & Co. | 26,187 | 1,696,656 | ||||||
|
| |||||||
23,776,037 | ||||||||
Commercial Services & Supplies — 1.4% |
| |||||||
ADT Inc.(a) | 47,131 | 364,794 | ||||||
KAR Auction Services Inc. | 52,301 | 2,978,019 | ||||||
Republic Services Inc. | 84,899 | 6,170,459 | ||||||
|
| |||||||
9,513,272 | ||||||||
Communications Equipment — 0.8% |
| |||||||
ARRIS International PLC(b) | 66,019 | 1,641,893 | ||||||
F5 Networks Inc.(b) | 23,686 | 4,151,682 | ||||||
|
| |||||||
5,793,575 | ||||||||
Construction Materials — 0.2% |
| |||||||
Eagle Materials Inc. | 18,508 | 1,366,631 | ||||||
|
| |||||||
Consumer Finance — 0.2% |
| |||||||
SLM Corp.(a)(b) | 169,566 | 1,719,399 | ||||||
|
| |||||||
Containers & Packaging — 1.0% |
| |||||||
AptarGroup Inc. | 24,218 | 2,469,267 | ||||||
Avery Dennison Corp. | 34,046 | 3,088,653 | ||||||
Graphic Packaging Holding Co. | 120,868 | 1,330,757 | ||||||
|
| |||||||
6,888,677 | ||||||||
Distributors — 0.5% |
| |||||||
LKQ Corp.(b) | 123,882 | 3,378,262 | ||||||
|
| |||||||
Diversified Consumer Services — 0.3% |
| |||||||
ServiceMaster Global Holdings Inc.(b) | 52,795 | 2,263,850 | ||||||
|
| |||||||
Diversified Financial Services — 0.4% |
| |||||||
Jefferies Financial Group Inc. | 112,944 | 2,424,908 | ||||||
|
| |||||||
Electric Utilities — 0.1% |
| |||||||
Avangrid Inc. | 21,662 | 1,018,331 | ||||||
|
| |||||||
Electrical Equipment — 1.8% |
| |||||||
Acuity Brands Inc. | 15,649 | 1,966,141 | ||||||
AMETEK Inc. | 90,316 | 6,058,397 | ||||||
nVent Electric PLC | 63,453 | 1,549,522 | ||||||
Sensata Technologies Holding PLC(a)(b) | 66,088 | 3,099,527 | ||||||
|
| |||||||
12,673,587 | ||||||||
Electronic Equipment, Instruments & Components — 2.9% |
| |||||||
CDW Corp./DE | 58,951 | 5,306,180 | ||||||
Flex Ltd.(a)(b) | 207,492 | 1,630,887 | ||||||
Jabil Inc. | 59,699 | 1,476,356 | ||||||
Keysight Technologies Inc.(b) | 72,997 | 4,166,669 | ||||||
Trimble Inc.(b) | 97,349 | 3,638,906 | ||||||
Zebra Technologies Corp., Class A(b) | 20,911 | 3,477,499 | ||||||
|
| |||||||
19,696,497 | ||||||||
Equity Real Estate Investment Trusts (REITs) — 12.7% |
| |||||||
Alexandria Real Estate Equities Inc.(a) | 41,189 | 5,034,531 | ||||||
Apartment Investment & Management Co., Class A | 61,283 | 2,637,620 | ||||||
Boston Properties Inc. | 60,141 | 7,262,627 | ||||||
Camden Property Trust | 36,144 | 3,262,719 | ||||||
CubeSmart | 72,396 | 2,098,036 | ||||||
Duke Realty Corp. | 139,144 | 3,836,200 | ||||||
Essex Property Trust Inc. | 25,724 | 6,451,065 |
22 | 2 0 1 8 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)
October 31, 2018 | iShares® MorningstarMid-Cap ETF
(Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Equity Real Estate Investment Trusts (REITs) (continued) |
| |||||||
Extra Space Storage Inc.(a) | 49,268 | $ | 4,437,076 | |||||
Federal Realty Investment Trust | 28,622 | 3,550,559 | ||||||
Forest City Realty Trust Inc., Class A | 104,063 | 2,618,225 | ||||||
Healthcare Trust of America Inc., Class A | 80,825 | 2,122,464 | ||||||
Highwoods Properties Inc. | 40,294 | 1,718,136 | ||||||
Host Hotels & Resorts Inc. | 288,857 | 5,520,057 | ||||||
Kilroy Realty Corp.(a) | 39,200 | 2,700,096 | ||||||
Macerich Co. (The) | 41,201 | 2,126,796 | ||||||
Mid-America Apartment Communities Inc. | 44,325 | 4,330,996 | ||||||
National Retail Properties Inc. | 61,142 | 2,858,388 | ||||||
Realty Income Corp. | 112,962 | 6,808,220 | ||||||
STORE Capital Corp.(a) | 71,251 | 2,068,417 | ||||||
Sun Communities Inc. | 33,631 | 3,378,907 | ||||||
UDR Inc. | 104,247 | 4,085,440 | ||||||
Ventas Inc. | 138,821 | 8,057,171 | ||||||
VICI Properties Inc. | 27,215 | 587,572 | ||||||
|
| |||||||
87,551,318 | ||||||||
Food & Staples Retailing — 0.4% |
| |||||||
U.S. Foods Holding Corp.(b) | 84,519 | 2,465,419 | ||||||
|
| |||||||
Food Products — 2.5% |
| |||||||
Hershey Co. (The) | 54,436 | 5,832,817 | ||||||
Hormel Foods Corp. | 105,892 | 4,621,127 | ||||||
McCormick & Co. Inc./MD, NVS | 47,235 | 6,801,840 | ||||||
|
| |||||||
17,255,784 | ||||||||
Gas Utilities — 0.6% |
| |||||||
Atmos Energy Corp. | 43,309 | 4,031,202 | ||||||
|
| |||||||
Health Care Equipment & Supplies — 2.9% |
| |||||||
Cooper Companies Inc. (The)(a) | 19,138 | 4,943,537 | ||||||
DENTSPLY SIRONA Inc. | 86,596 | 2,998,820 | ||||||
Hologic Inc.(b) | 105,982 | 4,132,238 | ||||||
STERIS PLC | 32,930 | 3,599,578 | ||||||
Varian Medical Systems Inc.(b) | 35,654 | 4,256,018 | ||||||
|
| |||||||
19,930,191 | ||||||||
Health Care Providers & Services — 4.8% |
| |||||||
AmerisourceBergen Corp. | 62,355 | 5,487,240 | ||||||
Centene Corp.(b) | 79,940 | 10,417,781 | ||||||
DaVita Inc.(b) | 49,401 | 3,326,664 | ||||||
Encompass Health Corp. | 38,504 | 2,591,319 | ||||||
Henry Schein Inc.(b) | 59,631 | �� | 4,949,373 | |||||
Laboratory Corp. of America | 39,686 | 6,371,587 | ||||||
|
| |||||||
33,143,964 | ||||||||
Hotels, Restaurants & Leisure — 3.2% |
| |||||||
Aramark | 95,994 | 3,448,104 | ||||||
Caesars Entertainment Corp.(a)(b) | 234,985 | 2,018,521 | ||||||
Darden Restaurants Inc. | 48,322 | 5,148,709 | ||||||
MGM Resorts International | 199,019 | 5,309,827 | ||||||
Norwegian Cruise Line Holdings Ltd.(b) | 79,354 | 3,497,131 | ||||||
Six Flags Entertainment Corp. | 27,825 | 1,498,655 | ||||||
Wyndham Destinations Inc. | 38,720 | 1,389,274 | ||||||
|
| |||||||
22,310,221 | ||||||||
Household Durables — 2.1% |
| |||||||
DR Horton Inc. | 133,638 | 4,805,622 | ||||||
Lennar Corp., Class A(a) | 113,617 | 4,883,259 | ||||||
Lennar Corp., Class B | 6,089 | 217,804 | ||||||
PulteGroup Inc. | 101,766 | 2,500,391 | ||||||
Toll Brothers Inc. | 52,802 | 1,777,315 | ||||||
|
| |||||||
14,184,391 |
Security | Shares | Value | ||||||
Household Products — 1.9% |
| |||||||
Church & Dwight Co. Inc. | 95,578 | $ | 5,674,466 | |||||
Clorox Co. (The) | 49,885 | 7,405,428 | ||||||
|
| |||||||
13,079,894 | ||||||||
Industrial Conglomerates — 0.3% |
| |||||||
Carlisle Companies Inc. | 23,265 | 2,247,166 | ||||||
|
| |||||||
Insurance — 4.2% |
| |||||||
Arch Capital Group Ltd.(a)(b) | 157,850 | 4,478,205 | ||||||
Arthur J Gallagher & Co. | 71,518 | 5,293,047 | ||||||
Athene Holding Ltd., Class A(b) | 49,402 | 2,258,660 | ||||||
Everest Re Group Ltd. | 15,912 | 3,466,588 | ||||||
Torchmark Corp. | 40,379 | 3,418,486 | ||||||
Willis Towers Watson PLC | 50,930 | 7,291,139 | ||||||
WR Berkley Corp. | 37,478 | 2,844,580 | ||||||
|
| |||||||
29,050,705 | ||||||||
IT Services — 2.4% |
| |||||||
Akamai Technologies Inc.(b) | 66,016 | 4,769,656 | ||||||
Alliance Data Systems Corp. | 18,403 | 3,794,330 | ||||||
Booz Allen Hamilton Holding Corp. | 55,507 | 2,749,817 | ||||||
First Data Corp., Class A(b) | 219,703 | 4,117,234 | ||||||
Genpact Ltd. | 54,004 | 1,480,250 | ||||||
|
| |||||||
16,911,287 | ||||||||
Leisure Products — 1.2% |
| |||||||
Brunswick Corp./DE | 33,776 | 1,756,014 | ||||||
Hasbro Inc. | 45,483 | 4,171,246 | ||||||
Polaris Industries Inc. | 22,788 | 2,027,676 | ||||||
|
| |||||||
7,954,936 | ||||||||
Life Sciences Tools & Services — 1.2% |
| |||||||
Agilent Technologies Inc. | 124,150 | 8,043,678 | ||||||
|
| |||||||
Machinery — 4.7% |
| |||||||
AGCO Corp. | 25,884 | 1,450,539 | ||||||
Allison Transmission Holdings Inc. | 46,747 | 2,060,608 | ||||||
Crane Co. | 19,730 | 1,717,299 | ||||||
Donaldson Co. Inc. | 50,232 | 2,575,897 | ||||||
Dover Corp. | 57,526 | 4,765,454 | ||||||
Gardner Denver Holdings Inc.(b) | 41,610 | 1,125,967 | ||||||
Ingersoll-Rand PLC | 95,540 | 9,166,107 | ||||||
Lincoln Electric Holdings Inc. | 25,382 | 2,053,658 | ||||||
Middleby Corp. (The)(a)(b) | 21,703 | 2,437,247 | ||||||
Oshkosh Corp. | 28,471 | 1,598,362 | ||||||
Snap-on Inc. | 21,967 | 3,381,600 | ||||||
|
| |||||||
32,332,738 | ||||||||
Marine — 0.2% |
| |||||||
Kirby Corp.(a)(b) | 20,987 | 1,509,805 | ||||||
|
| |||||||
Media — 2.9% |
| |||||||
CBS Corp., Class B, NVS | 131,844 | 7,561,253 | ||||||
Discovery Inc., Class A(a)(b) | 60,852 | 1,970,996 | ||||||
Discovery Inc., Class C, NVS(b) | 140,077 | 4,105,657 | ||||||
Liberty Media Corp.-Liberty SiriusXM, Class A(b) | 32,407 | 1,336,465 | ||||||
Liberty Media Corp.-Liberty SiriusXM, Class C, NVS(b) | 63,781 | 2,632,242 | ||||||
News Corp., Class A, NVS | 150,283 | 1,982,233 | ||||||
News Corp., Class B | 48,234 | 643,441 | ||||||
|
| |||||||
20,232,287 | ||||||||
Multiline Retail — 1.1% |
| |||||||
Dollar Tree Inc.(a)(b) | 92,649 | 7,810,311 | ||||||
|
| |||||||
Oil, Gas & Consumable Fuels — 1.8% |
| |||||||
Marathon Oil Corp. | 332,660 | 6,317,214 |
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)
October 31, 2018 | iShares® MorningstarMid-Cap ETF
(Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Oil, Gas & Consumable Fuels (continued) |
| |||||||
Newfield Exploration Co.(b) | 77,837 | $ | 1,572,307 | |||||
Noble Energy Inc. | 188,158 | 4,675,726 | ||||||
|
| |||||||
12,565,247 | ||||||||
Personal Products — 0.3% |
| |||||||
Coty Inc., Class A | 175,444 | 1,850,934 | ||||||
|
| |||||||
Professional Services — 0.4% |
| |||||||
Robert Half International Inc. | 47,688 | 2,886,555 | ||||||
|
| |||||||
Real Estate Management & Development — 1.1% |
| |||||||
CBRE Group Inc., Class A(b) | 123,076 | 4,958,732 | ||||||
Jones Lang LaSalle Inc. | 17,735 | 2,345,631 | ||||||
|
| |||||||
7,304,363 | ||||||||
Road & Rail — 0.7% |
| |||||||
AMERCO | 2,978 | 972,257 | ||||||
Kansas City Southern | 39,787 | 4,056,683 | ||||||
|
| |||||||
5,028,940 | ||||||||
Semiconductors & Semiconductor Equipment — 4.9% |
| |||||||
KLA-Tencor Corp. | 60,806 | 5,566,181 | ||||||
Marvell Technology Group Ltd. | 229,146 | 3,760,286 | ||||||
Maxim Integrated Products Inc. | 108,279 | 5,416,116 | ||||||
MKS Instruments Inc. | 21,339 | 1,572,471 | ||||||
ON Semiconductor Corp.(b) | 165,996 | 2,821,932 | ||||||
Qorvo Inc.(a)(b) | 48,934 | 3,597,138 | ||||||
Teradyne Inc. | 72,611 | 2,501,449 | ||||||
Xilinx Inc. | 98,501 | 8,409,030 | ||||||
|
| |||||||
33,644,603 | ||||||||
Software — 2.0% |
| |||||||
Citrix Systems Inc.(b) | 50,192 | 5,143,174 | ||||||
Symantec Corp. | 242,068 | 4,393,534 | ||||||
VMware Inc., Class A(b) | 28,717 | 4,060,297 | ||||||
|
| |||||||
13,597,005 | ||||||||
Specialty Retail — 3.6% |
| |||||||
Advance Auto Parts Inc. | 28,852 | 4,609,395 | ||||||
Best Buy Co. Inc. | 94,668 | 6,641,907 | ||||||
CarMax Inc.(b) | 68,766 | 4,669,899 | ||||||
Tiffany & Co. | 42,431 | 4,722,570 | ||||||
Tractor Supply Co. | 47,439 | 4,359,170 | ||||||
|
| |||||||
25,002,941 | ||||||||
Technology Hardware, Storage & Peripherals — 1.1% |
| |||||||
NetApp Inc. | 100,976 | 7,925,606 | ||||||
|
|
Security | Shares | Value | ||||||
Textiles, Apparel & Luxury Goods — 1.6% |
| |||||||
Carter’s Inc. | 18,098 | $ | 1,737,046 | |||||
Columbia Sportswear Co. | 11,716 | 1,057,720 | ||||||
PVH Corp. | 29,878 | 3,608,964 | ||||||
Tapestry Inc. | 112,181 | 4,746,378 | ||||||
|
| |||||||
11,150,108 | ||||||||
Trading Companies & Distributors — 1.3% |
| |||||||
United Rentals Inc.(b) | 32,227 | 3,869,496 | ||||||
WW Grainger Inc. | 17,708 | 5,028,541 | ||||||
|
| |||||||
8,898,037 | ||||||||
Water Utilities — 1.2% |
| |||||||
American Water Works Co. Inc. | 70,295 | 6,223,217 | ||||||
Aqua America Inc. | 69,291 | 2,254,036 | ||||||
|
| |||||||
8,477,253 | ||||||||
|
| |||||||
Total Common Stocks — 99.9% |
| 690,694,434 | ||||||
|
| |||||||
Short-Term Investments | ||||||||
Money Market Funds — 3.7% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 2.36%(c)(d)(e) | 25,351,476 | 25,356,547 | ||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 2.11%(c)(d) | 400,916 | 400,916 | ||||||
|
| |||||||
25,757,463 | ||||||||
|
| |||||||
Total Short-Term Investments — 3.7% |
| 25,757,463 | ||||||
|
| |||||||
Total Investments in Securities — 103.6% |
| 716,451,897 | ||||||
Other Assets, Less Liabilities — (3.6)% |
| (25,167,851 | ) | |||||
|
| |||||||
Net Assets — 100.0% | $ | 691,284,046 | ||||||
|
|
(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. |
Affiliates
Investments in issuers considered to be affiliates of the Fund during the six months ended October 31, 2018, for purposes of
Section 2(a)(3) of the 1940 Act, were as follows:
Affiliated Issuer | | Shares Held at 04/30/18 | | Net Activity | | Shares Held at 10/31/18 | | | Value at 10/31/18 | | Income | | Net Realized Gain (Loss) | (a) | | Change in Unrealized Appreciation (Depreciation) | | |||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | 14,878,471 | 10,473,005 | 25,351,476 | $ | 25,356,547 | $ | 36,400 | (b) | $ | 1,562 | $ | 405 | ||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 1,177,639 | (776,723 | ) | 400,916 | 400,916 | 10,342 | — | — | ||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
$ | 25,757,463 | $ | 46,742 | $ | 1,562 | $ | 405 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
(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. |
24 | 2 0 1 8 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)
October 31, 2018 | iShares® MorningstarMid-Cap 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 October 31, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common Stocks | $ | 690,694,434 | $ | — | $ | — | $ | 690,694,434 | ||||||||
Money Market Funds | 25,757,463 | — | — | 25,757,463 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 716,451,897 | $ | — | $ | — | $ | 716,451,897 | |||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
S C H E D U L E O F I N V E S T M E N T S | 25 |
Schedule of Investments(unaudited)
October 31, 2018 | iShares® MorningstarMid-Cap Growth ETF
(Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
| |||||||
Aerospace & Defense — 2.9% |
| |||||||
BWX Technologies Inc. | 16,679 | $ | 975,054 | |||||
HEICO Corp. | 6,868 | 575,744 | ||||||
HEICO Corp., Class A | 11,956 | 796,987 | ||||||
Hexcel Corp. | 14,651 | 857,377 | ||||||
Huntington Ingalls Industries Inc. | 7,239 | 1,581,577 | ||||||
Teledyne Technologies Inc.(a) | 6,007 | 1,329,229 | ||||||
TransDigm Group Inc.(a) | 8,090 | 2,671,722 | ||||||
|
| |||||||
8,787,690 | ||||||||
Air Freight & Logistics — 0.6% |
| |||||||
XPO Logistics Inc.(a)(b) | 21,083 | 1,884,399 | ||||||
|
| |||||||
Banks — 1.0% |
| |||||||
First Republic Bank/CA | 27,026 | 2,459,096 | ||||||
Pinnacle Financial Partners Inc. | 12,251 | 640,727 | ||||||
|
| |||||||
3,099,823 | ||||||||
Biotechnology — 4.9% |
| |||||||
Alkermes PLC(a) | 25,977 | 1,060,641 | ||||||
Alnylam Pharmaceuticals Inc.(a) | 14,948 | 1,202,268 | ||||||
BioMarin Pharmaceutical Inc.(a) | 29,666 | 2,734,315 | ||||||
Bluebird Bio Inc.(a) | 9,053 | 1,038,379 | ||||||
Exact Sciences Corp.(a) | 20,528 | 1,458,514 | ||||||
Exelixis Inc.(a) | 49,757 | 690,130 | ||||||
Incyte Corp.(a) | 29,512 | 1,912,968 | ||||||
Ionis Pharmaceuticals Inc.(a)(b) | 22,966 | 1,137,965 | ||||||
Neurocrine Biosciences Inc.(a) | 15,130 | 1,621,180 | ||||||
Sage Therapeutics Inc.(a)(b) | 7,805 | 1,004,347 | ||||||
Seattle Genetics Inc.(a) | 17,795 | 998,833 | ||||||
|
| |||||||
14,859,540 | ||||||||
Building Products — 1.2% |
| |||||||
Allegion PLC | 15,892 | 1,362,421 | ||||||
AO Smith Corp. | 24,183 | 1,101,052 | ||||||
Lennox International Inc. | 6,051 | 1,276,096 | ||||||
|
| |||||||
3,739,569 | ||||||||
Capital Markets — 3.9% |
| |||||||
Cboe Global Markets Inc. | 18,676 | 2,107,586 | ||||||
E*TRADE Financial Corp. | 43,387 | 2,144,185 | ||||||
Eaton Vance Corp., NVS | 19,754 | 889,918 | ||||||
FactSet Research Systems Inc. | 6,405 | 1,433,183 | ||||||
Interactive Brokers Group Inc., Class A | 12,559 | 620,540 | ||||||
MarketAxess Holdings Inc. | 6,286 | 1,317,986 | ||||||
MSCI Inc. | 14,842 | 2,231,940 | ||||||
SEI Investments Co. | 22,033 | 1,177,664 | ||||||
|
| |||||||
11,923,002 | ||||||||
Chemicals — 0.6% |
| |||||||
FMC Corp. | 22,521 | 1,758,440 | ||||||
|
| |||||||
Commercial Services & Supplies — 1.7% |
| |||||||
Cintas Corp. | 14,384 | 2,616,018 | ||||||
Copart Inc.(a) | 34,179 | 1,671,695 | ||||||
Rollins Inc. | 16,411 | 971,531 | ||||||
|
| |||||||
5,259,244 | ||||||||
Communications Equipment — 1.7% |
| |||||||
Arista Networks Inc.(a) | 8,611 | 1,983,544 | ||||||
Palo Alto Networks Inc.(a) | 15,515 | 2,839,866 | ||||||
Ubiquiti Networks Inc.(b) | 3,356 | 312,410 | ||||||
|
| |||||||
5,135,820 |
Security | Shares | Value | ||||||
Construction Materials — 1.3% |
| |||||||
Martin Marietta Materials Inc. | 10,539 | $ | 1,805,120 | |||||
Vulcan Materials Co. | 22,095 | 2,234,688 | ||||||
|
| |||||||
4,039,808 | ||||||||
Consumer Finance — 0.3% |
| |||||||
Credit Acceptance Corp.(a) | 2,069 | 878,125 | ||||||
|
| |||||||
Distributors — 0.3% |
| |||||||
Pool Corp. | 6,754 | 984,396 | ||||||
|
| |||||||
Diversified Consumer Services — 1.1% |
| |||||||
Bright Horizons Family Solutions Inc.(a) | 9,797 | 1,125,773 | ||||||
Grand Canyon Education Inc.(a) | 8,067 | 1,005,955 | ||||||
Service Corp. International/U.S. | 30,189 | 1,251,938 | ||||||
|
| |||||||
3,383,666 | ||||||||
Diversified Telecommunication Services — 0.4% |
| |||||||
Zayo Group Holdings Inc.(a) | 35,320 | 1,055,362 | ||||||
|
| |||||||
Electrical Equipment — 1.1% |
| |||||||
Rockwell Automation Inc. | 20,580 | 3,390,143 | ||||||
|
| |||||||
Electronic Equipment, Instruments & Components — 1.3% |
| |||||||
Cognex Corp. | 28,784 | 1,233,107 | ||||||
FLIR Systems Inc. | 23,082 | 1,068,927 | ||||||
IPG Photonics Corp.(a) | 6,014 | 803,170 | ||||||
National Instruments Corp. | 18,769 | 919,118 | ||||||
|
| |||||||
4,024,322 | ||||||||
Energy Equipment & Services — 1.2% |
| |||||||
Baker Hughes a GE Co. | 69,550 | 1,856,290 | ||||||
Core Laboratories NV | 7,396 | 630,435 | ||||||
Helmerich & Payne Inc. | 18,222 | 1,135,048 | ||||||
|
| |||||||
3,621,773 | ||||||||
Entertainment — 1.8% |
| |||||||
Liberty Media Corp.-Liberty Formula One, Class A(a) | 4,291 | 135,982 | ||||||
Liberty Media Corp.-Liberty Formula One, Class C, NVS(a)(b) | 33,925 | 1,122,239 | ||||||
Lions Gate Entertainment Corp., Class A | 9,253 | 177,287 | ||||||
Lions Gate Entertainment Corp., Class B, NVS | 17,707 | 315,008 | ||||||
Live Nation Entertainment Inc.(a) | 23,075 | 1,206,822 | ||||||
Take-Two Interactive Software Inc.(a) | 19,018 | 2,450,850 | ||||||
|
| |||||||
5,408,188 | ||||||||
Equity Real Estate Investment Trusts (REITs) — 5.0% |
| |||||||
American Campus Communities Inc. | 22,921 | 905,609 | ||||||
American Homes 4 Rent, Class A | 43,008 | 906,178 | ||||||
CyrusOne Inc. | 17,477 | 930,301 | ||||||
Douglas Emmett Inc. | 25,132 | 909,527 | ||||||
Equity LifeStyle Properties Inc. | 14,902 | 1,411,070 | ||||||
Hudson Pacific Properties Inc. | 26,216 | 794,345 | ||||||
Invitation Homes Inc. | 49,565 | 1,084,482 | ||||||
Iron Mountain Inc. | 47,829 | 1,464,046 | ||||||
Regency Centers Corp. | 28,205 | 1,787,069 | ||||||
SBA Communications Corp.(a) | 19,189 | 3,111,880 | ||||||
Vornado Realty Trust | 28,959 | 1,971,529 | ||||||
|
| |||||||
15,276,036 | ||||||||
Food Products — 1.0% |
| |||||||
Lamb Weston Holdings Inc. | 24,492 | 1,914,295 | ||||||
Post Holdings Inc.(a)(b) | 11,148 | 985,706 | ||||||
|
| |||||||
2,900,001 | ||||||||
Health Care Equipment & Supplies — 6.4% |
| |||||||
ABIOMED Inc.(a) | 7,490 | 2,555,588 | ||||||
Align Technology Inc.(a) | 12,211 | 2,701,073 |
26 | 2 0 1 8 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)
October 31, 2018 | iShares® MorningstarMid-Cap Growth ETF
(Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Health Care Equipment & Supplies (continued) |
| |||||||
DexCom Inc.(a) | 14,780 | $ | 1,962,340 | |||||
Hill-Rom Holdings Inc. | 11,108 | 933,961 | ||||||
ICU Medical Inc.(a) | 2,764 | 704,074 | ||||||
IDEXX Laboratories Inc.(a) | 14,468 | 3,068,952 | ||||||
Insulet Corp.(a) | 9,867 | 870,368 | ||||||
Masimo Corp.(a) | 8,028 | 928,037 | ||||||
ResMed Inc. | 23,846 | 2,525,768 | ||||||
Teleflex Inc. | 7,659 | 1,843,828 | ||||||
West Pharmaceutical Services Inc. | 12,301 | 1,302,922 | ||||||
|
| |||||||
19,396,911 | ||||||||
Health Care Providers & Services — 1.0% |
| |||||||
Chemed Corp. | 2,691 | 818,952 | ||||||
WellCare Health Plans Inc.(a) | 8,355 | 2,305,896 | ||||||
|
| |||||||
3,124,848 | ||||||||
Health Care Technology — 1.9% |
| |||||||
athenahealth Inc.(a) | 6,775 | 864,084 | ||||||
Cerner Corp.(a) | 54,947 | 3,147,364 | ||||||
Veeva Systems Inc., Class A(a) | 20,166 | 1,842,164 | ||||||
|
| |||||||
5,853,612 | ||||||||
Hotels, Restaurants & Leisure — 3.0% |
| |||||||
Chipotle Mexican Grill Inc.(a) | 4,092 | 1,883,670 | ||||||
Domino’s Pizza Inc. | 6,995 | 1,880,186 | ||||||
Dunkin’ Brands Group Inc. | 14,009 | 1,016,493 | ||||||
Vail Resorts Inc. | 6,746 | 1,695,405 | ||||||
Wyndham Hotels & Resorts Inc. | 16,709 | 823,587 | ||||||
Wynn Resorts Ltd. | 16,274 | 1,637,164 | ||||||
|
| |||||||
8,936,505 | ||||||||
Household Durables — 0.4% |
| |||||||
NVR Inc.(a) | 571 | 1,278,486 | ||||||
|
| |||||||
Insurance — 1.3% |
| |||||||
Brown & Brown Inc. | 38,762 | 1,092,313 | ||||||
Erie Indemnity Co., Class A, NVS | 3,314 | 429,793 | ||||||
Markel Corp.(a) | 2,322 | 2,538,503 | ||||||
|
| |||||||
4,060,609 | ||||||||
Interactive Media & Services — 3.1% |
| |||||||
IAC/InterActiveCorp.(a) | 12,937 | 2,543,285 | ||||||
Snap Inc., Class A, NVS(a) | 111,678 | 738,191 | ||||||
TripAdvisor Inc.(a) | 17,077 | 890,395 | ||||||
Twitter Inc.(a) | 120,020 | 4,170,695 | ||||||
Zillow Group Inc., Class A(a) | 8,214 | 331,599 | ||||||
Zillow Group Inc., Class C, NVS(a)(b) | 19,207 | 773,274 | ||||||
|
| |||||||
9,447,439 | ||||||||
Internet & Direct Marketing Retail — 2.1% |
| |||||||
Expedia Group Inc. | 19,864 | 2,491,542 | ||||||
GrubHub Inc.(a) | 15,131 | 1,403,249 | ||||||
MercadoLibre Inc. | 7,375 | 2,393,187 | ||||||
|
| |||||||
6,287,978 | ||||||||
IT Services — 8.8% |
| |||||||
Black Knight Inc.(a) | 23,735 | 1,157,556 | ||||||
Broadridge Financial Solutions Inc. | 19,436 | 2,272,846 | ||||||
EPAM Systems Inc.(a) | 8,545 | 1,020,871 | ||||||
FleetCor Technologies Inc.(a) | 14,768 | 2,954,043 | ||||||
Gartner Inc.(a) | 15,172 | 2,238,173 | ||||||
Global Payments Inc. | 26,429 | 3,018,985 | ||||||
GoDaddy Inc., Class A(a) | 27,642 | 2,022,565 | ||||||
GreenSky Inc., Class A(a)(b) | 6,776 | 89,308 | ||||||
Jack Henry & Associates Inc. | 12,910 | 1,934,305 |
Security | Shares | Value | ||||||
IT Services (continued) |
| |||||||
Square Inc., Class A(a)(b) | 50,379 | $ | 3,700,338 | |||||
Total System Services Inc. | 28,062 | 2,557,851 | ||||||
VeriSign Inc.(a) | 17,875 | 2,547,903 | ||||||
WEX Inc.(a) | 7,190 | 1,265,152 | ||||||
|
| |||||||
26,779,896 | ||||||||
Life Sciences Tools & Services — 4.6% |
| |||||||
Bio-Rad Laboratories Inc., Class A(a) | 3,354 | 915,139 | ||||||
Bio-Techne Corp. | 6,312 | 1,058,649 | ||||||
Bruker Corp. | 16,744 | 524,590 | ||||||
Charles River Laboratories International Inc.(a) | 8,034 | 978,702 | ||||||
IQVIA Holdings Inc.(a) | 27,080 | 3,328,944 | ||||||
Mettler-Toledo International Inc.(a)(b) | 4,212 | 2,303,206 | ||||||
PerkinElmer Inc. | 18,523 | 1,601,869 | ||||||
PRA Health Sciences Inc.(a) | 9,689 | 938,573 | ||||||
Waters Corp.(a) | 12,877 | 2,442,638 | ||||||
|
| |||||||
14,092,310 | ||||||||
Machinery — 3.2% |
| |||||||
Graco Inc. | 27,963 | 1,136,137 | ||||||
IDEX Corp. | 12,827 | 1,626,720 | ||||||
Nordson Corp. | 8,748 | 1,073,117 | ||||||
Toro Co. (The) | 17,602 | 991,521 | ||||||
WABCO Holdings Inc.(a) | 8,835 | 949,321 | ||||||
Wabtec Corp. | 14,349 | 1,176,905 | ||||||
Woodward Inc. | 9,288 | 683,968 | ||||||
Xylem Inc./NY | 30,006 | 1,967,793 | ||||||
|
| |||||||
9,605,482 | ||||||||
Media — 1.1% |
| |||||||
GCI Liberty Inc., Class A(a) | 16,623 | 786,767 | ||||||
Liberty Broadband Corp., Class A(a) | 4,402 | 364,441 | ||||||
Liberty Broadband Corp., Class C, | 25,484 | 2,113,388 | ||||||
|
| |||||||
3,264,596 | ||||||||
Metals & Mining — 0.3% |
| |||||||
Royal Gold Inc. | 10,958 | 839,712 | ||||||
|
| |||||||
Oil, Gas & Consumable Fuels — 4.3% |
| |||||||
Antero Resources Corp.(a)(b) | 37,088 | 589,328 | ||||||
Cabot Oil & Gas Corp. | 73,714 | 1,786,090 | ||||||
Centennial Resource Development Inc./DE, Class A(a) | 31,670 | 606,797 | ||||||
Cheniere Energy Inc.(a) | 36,881 | 2,227,981 | ||||||
Cimarex Energy Co. | 15,951 | 1,267,626 | ||||||
Diamondback Energy Inc. | 16,470 | 1,850,569 | ||||||
Energen Corp.(a) | 13,692 | 985,413 | ||||||
EQT Corp. | 44,088 | 1,497,670 | ||||||
Parsley Energy Inc., Class A(a) | 43,944 | 1,029,169 | ||||||
WPX Energy Inc.(a) | 66,042 | 1,059,314 | ||||||
|
| |||||||
12,899,957 | ||||||||
Pharmaceuticals — 1.2% |
| |||||||
Catalent Inc.(a)(b) | 24,222 | 977,115 | ||||||
Jazz Pharmaceuticals PLC(a) | 10,102 | 1,604,400 | ||||||
Nektar Therapeutics(a) | 28,777 | 1,113,094 | ||||||
|
| |||||||
3,694,609 | ||||||||
Professional Services — 4.2% |
| |||||||
CoStar Group Inc.(a) | 6,079 | 2,197,072 | ||||||
Equifax Inc. | 20,115 | 2,040,466 | ||||||
IHS Markit Ltd.(a) | 59,604 | 3,130,998 | ||||||
TransUnion | 30,683 | 2,017,407 | ||||||
Verisk Analytics Inc.(a) | 27,493 | 3,294,761 | ||||||
|
| |||||||
12,680,704 |
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)
October 31, 2018 | iShares® MorningstarMid-Cap Growth ETF
(Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Real Estate Management & Development — 0.2% |
| |||||||
Howard Hughes Corp. (The)(a)(b) | 6,551 | $ | 730,568 | |||||
|
| |||||||
Road & Rail — 1.2% |
| |||||||
JB Hunt Transport Services Inc. | 14,621 | 1,617,229 | ||||||
Knight-Swift Transportation Holdings Inc. | 21,455 | 686,560 | ||||||
Old Dominion Freight Line Inc. | 10,960 | 1,429,403 | ||||||
|
| |||||||
3,733,192 | ||||||||
Semiconductors & Semiconductor Equipment — 3.1% |
| |||||||
Advanced Micro Devices Inc.(a)(b) | 143,292 | 2,609,347 | ||||||
Cypress Semiconductor Corp. | 60,457 | 782,314 | ||||||
Microchip Technology Inc.(b) | 39,357 | 2,588,903 | ||||||
Monolithic Power Systems Inc. | 6,509 | 768,843 | ||||||
Skyworks Solutions Inc. | 29,904 | 2,594,471 | ||||||
|
| |||||||
9,343,878 | ||||||||
Software — 9.8% |
| |||||||
ANSYS Inc.(a) | 14,081 | 2,105,814 | ||||||
Aspen Technology Inc.(a) | 11,909 | 1,010,955 | ||||||
Blackbaud Inc. | 8,127 | 582,868 | ||||||
Cadence Design Systems Inc.(a) | 47,301 | 2,108,206 | ||||||
CDK Global Inc. | 21,615 | 1,237,243 | ||||||
Fair Isaac Corp.(a) | 4,879 | 940,232 | ||||||
Fortinet Inc.(a)(b) | 24,014 | 1,973,471 | ||||||
Guidewire Software Inc.(a)(b) | 13,423 | 1,194,244 | ||||||
LogMeIn Inc. | 8,679 | 747,435 | ||||||
Nutanix Inc., Class A(a) | 11,752 | 487,826 | ||||||
Paycom Software Inc.(a) | 8,243 | 1,032,024 | ||||||
Pegasystems Inc. | 6,182 | 330,861 | ||||||
Proofpoint Inc.(a) | 8,576 | 779,987 | ||||||
PTC Inc.(a) | 17,719 | 1,460,223 | ||||||
Splunk Inc.(a) | 24,222 | 2,418,324 | ||||||
SS&C Technologies Holdings Inc. | 34,436 | 1,761,746 | ||||||
Synopsys Inc.(a) | 24,823 | 2,222,403 | ||||||
Tableau Software Inc., Class A(a) | 11,705 | 1,248,689 | ||||||
Tyler Technologies Inc.(a) | 6,446 | 1,364,360 | ||||||
Ultimate Software Group Inc. (The)(a) | 5,204 | 1,387,543 | ||||||
Workday Inc., Class A(a) | 24,426 | 3,249,146 | ||||||
|
| |||||||
29,643,600 | ||||||||
Specialty Retail — 3.0% |
| |||||||
Burlington Stores Inc.(a) | 11,311 | 1,939,723 |
Security | Shares | Value | ||||||
Specialty Retail (continued) |
| |||||||
Floor & Decor Holdings Inc., | 9,582 | $ | 245,108 | |||||
O’Reilly Automotive Inc.(a) | 13,460 | 4,317,295 | ||||||
Ulta Salon Cosmetics & Fragrance Inc.(a) | 9,487 | 2,604,371 | ||||||
|
| |||||||
9,106,497 | ||||||||
Textiles, Apparel & Luxury Goods — 1.3% |
| |||||||
Lululemon Athletica Inc.(a) | 18,033 | 2,537,784 | ||||||
Under Armour Inc., Class A(a)(b) | 31,127 | 688,218 | ||||||
Under Armour Inc., Class C, | 31,899 | 632,557 | ||||||
|
| |||||||
3,858,559 | ||||||||
Trading Companies & Distributors — 1.1% |
| |||||||
Fastenal Co. | 47,944 | 2,464,801 | ||||||
Watsco Inc. | 5,362 | 794,541 | ||||||
|
| |||||||
3,259,342 | ||||||||
|
| |||||||
Total Common Stocks — 99.9% |
| 303,328,637 | ||||||
|
| |||||||
Short-Term Investments | ||||||||
Money Market Funds — 6.4% | ||||||||
BlackRock Cash Funds: Institutional, | 19,122,211 | 19,126,035 | ||||||
BlackRock Cash Funds: Treasury, | 304,122 | 304,122 | ||||||
|
| |||||||
19,430,157 | ||||||||
|
| |||||||
Total Short-Term Investments — 6.4% |
| 19,430,157 | ||||||
|
| |||||||
Total Investments in Securities — 106.3% |
| 322,758,794 | ||||||
Other Assets, Less Liabilities — (6.3)% |
| (19,134,501 | ) | |||||
|
| |||||||
Net Assets — 100.0% |
| $ | 303,624,293 | |||||
|
|
(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 October 31, 2018, for purposes of
Section 2(a)(3) of the 1940 Act, were as follows:
Affiliated Issuer | | Shares Held at 04/30/18 | | Net Activity | | Shares Held at 10/31/18 | | | Value at 10/31/18 | | Income | | Net Realized Gain (Loss) | (a) | | Change in Unrealized Appreciation (Depreciation) | | |||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | 25,472,183 | (6,349,972 | ) | 19,122,211 | $ | 19,126,035 | $ | 49,820 | (b) | $ | 1,741 | $ | 1,329 | |||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 123,544 | 180,578 | 304,122 | 304,122 | 1,703 | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
$ | 19,430,157 | $ | 51,523 | $ | 1,741 | $ | 1,329 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
(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.
28 | 2 0 1 8 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)
October 31, 2018 | iShares® MorningstarMid-Cap Growth ETF
|
Fair Value Measurements (continued)
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of October 31, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common Stocks | $ | 303,328,637 | $ | — | $ | — | $ | 303,328,637 | ||||||||
Money Market Funds | 19,430,157 | — | — | 19,430,157 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 322,758,794 | $ | — | $ | — | $ | 322,758,794 | |||||||||
|
|
|
|
|
|
|
|
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 |
Schedule of Investments(unaudited)
October 31, 2018 | iShares® MorningstarMid-Cap Value ETF
(Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
| |||||||
Aerospace & Defense — 0.5% |
| |||||||
Arconic Inc. | 110,020 | $ | 2,236,707 | |||||
|
| |||||||
Airlines — 2.8% |
| |||||||
Alaska Air Group Inc. | 31,520 | 1,935,958 | ||||||
American Airlines Group Inc. | 104,906 | 3,680,103 | ||||||
JetBlue Airways Corp.(a) | 80,077 | 1,339,688 | ||||||
United Continental Holdings Inc.(a) | 58,612 | 5,011,912 | ||||||
|
| |||||||
11,967,661 | ||||||||
Auto Components — 1.9% |
| |||||||
Adient PLC | 22,193 | 675,111 | ||||||
Autoliv Inc. | 22,293 | 1,857,899 | ||||||
BorgWarner Inc. | 53,462 | 2,106,937 | ||||||
Goodyear Tire & Rubber Co. (The) | 60,575 | 1,275,710 | ||||||
Lear Corp. | 16,769 | 2,228,600 | ||||||
|
| |||||||
8,144,257 | ||||||||
Automobiles — 0.4% |
| |||||||
Harley-Davidson Inc. | 42,631 | 1,629,357 | ||||||
|
| |||||||
Banks — 6.0% |
| |||||||
CIT Group Inc. | 28,958 | 1,372,030 | ||||||
Fifth Third Bancorp. | 170,558 | 4,603,360 | ||||||
First Horizon National Corp. | 83,328 | 1,344,914 | ||||||
Huntington Bancshares Inc./OH | 282,639 | 4,050,217 | ||||||
KeyCorp. | 269,280 | 4,890,125 | ||||||
PacWest Bancorp. | 31,337 | 1,272,909 | ||||||
People’s United Financial Inc. | 95,505 | 1,495,608 | ||||||
Prosperity Bancshares Inc. | 16,956 | 1,102,649 | ||||||
Regions Financial Corp. | 282,189 | 4,788,747 | ||||||
Umpqua Holdings Corp. | 56,279 | 1,080,557 | ||||||
|
| |||||||
26,001,116 | ||||||||
Biotechnology — 0.3% |
| |||||||
United Therapeutics Corp.(a) | 11,171 | 1,238,417 | ||||||
|
| |||||||
Capital Markets — 1.3% |
| |||||||
Franklin Resources Inc. | 78,246 | 2,386,503 | ||||||
Invesco Ltd. | 105,161 | 2,283,045 | ||||||
Janus Henderson Group PLC | 43,024 | 1,057,100 | ||||||
|
| |||||||
5,726,648 | ||||||||
Chemicals — 3.0% |
| |||||||
Celanese Corp. | 34,545 | 3,348,792 | ||||||
CF Industries Holdings Inc. | 59,759 | 2,870,225 | ||||||
Eastman Chemical Co. | 36,162 | 2,833,292 | ||||||
Huntsman Corp. | 55,027 | 1,203,991 | ||||||
Mosaic Co. (The) | 90,769 | 2,808,393 | ||||||
|
| |||||||
13,064,693 | ||||||||
Commercial Services & Supplies — 0.3% |
| |||||||
Stericycle Inc.(a) | 21,951 | 1,096,892 | ||||||
|
| |||||||
Communications Equipment — 2.0% |
| |||||||
CommScope Holding Co. Inc.(a) | 49,293 | 1,185,990 | ||||||
Juniper Networks Inc. | 88,254 | 2,583,194 | ||||||
Motorola Solutions Inc. | 41,534 | 5,090,407 | ||||||
|
| |||||||
8,859,591 | ||||||||
Construction & Engineering — 1.4% |
| |||||||
AECOM(a)(b) | 41,232 | 1,201,501 | ||||||
Fluor Corp. | 35,993 | 1,578,653 | ||||||
Jacobs Engineering Group Inc. | 30,510 | | 2,290,996 | |
Security | Shares | Value | ||||||
Construction & Engineering (continued) |
| |||||||
Quanta Services Inc.(a) | 38,031 | $ | 1,186,567 | |||||
|
| |||||||
6,257,717 | ||||||||
Consumer Finance — 0.8% |
| |||||||
Ally Financial Inc. | 108,036 | 2,745,195 | ||||||
Santander Consumer USA Holdings Inc. | 29,634 | 555,637 | ||||||
|
| |||||||
3,300,832 | ||||||||
Containers & Packaging — 3.4% |
| |||||||
Ball Corp. | 88,028 | 3,943,654 | ||||||
Berry Global Group Inc.(a) | 33,736 | 1,471,564 | ||||||
Crown Holdings Inc.(a)(b) | 34,602 | 1,463,319 | ||||||
Packaging Corp. of America | 24,188 | 2,220,700 | ||||||
Sealed Air Corp. | 40,650 | 1,315,434 | ||||||
Sonoco Products Co. | 25,541 | 1,394,028 | ||||||
WestRock Co. | 65,299 | 2,805,898 | ||||||
|
| |||||||
14,614,597 | ||||||||
Distributors — 0.8% |
| |||||||
Genuine Parts Co. | 37,563 | 3,678,169 | ||||||
|
| |||||||
Diversified Consumer Services — 0.3% |
| |||||||
H&R Block Inc. | 52,697 | 1,398,578 | ||||||
|
| |||||||
Diversified Financial Services — 0.6% |
| |||||||
AXA Equitable Holdings Inc. | 34,410 | 698,179 | ||||||
Voya Financial Inc. | 41,100 | 1,798,536 | ||||||
|
| |||||||
2,496,715 | ||||||||
Diversified Telecommunication Services — 1.2% |
| |||||||
CenturyLink Inc. | 243,293 | 5,021,568 | ||||||
|
| |||||||
Electric Utilities — 7.2% |
| |||||||
Alliant Energy Corp. | 59,837 | 2,571,794 | ||||||
Entergy Corp. | 46,292 | 3,886,213 | ||||||
Evergy Inc. | 69,542 | 3,893,657 | ||||||
Eversource Energy | 81,111 | 5,131,082 | ||||||
FirstEnergy Corp. | 124,402 | 4,637,707 | ||||||
IDACORP Inc. | 12,879 | 1,201,096 | ||||||
OGE Energy Corp. | 51,123 | 1,848,096 | ||||||
Pinnacle West Capital Corp. | 28,661 | 2,357,367 | ||||||
PPL Corp. | 179,063 | 5,443,515 | ||||||
|
| |||||||
30,970,527 | ||||||||
Electrical Equipment — 0.3% |
| |||||||
Hubbell Inc. | 14,020 | 1,425,834 | ||||||
|
| |||||||
Electronic Equipment, Instruments & Components — 0.6% |
| |||||||
Arrow Electronics Inc.(a) | 22,368 | 1,514,537 | ||||||
Avnet Inc. | 29,585 | 1,185,471 | ||||||
|
| |||||||
2,700,008 | ||||||||
Energy Equipment & Services — 1.1% |
| |||||||
National Oilwell Varco Inc. | 97,936 | 3,604,045 | ||||||
Transocean Ltd.(a) | 109,950 | 1,210,549 | ||||||
|
| |||||||
4,814,594 | ||||||||
Entertainment — 0.7% |
| |||||||
Viacom Inc., Class A | 2,260 | 79,936 | ||||||
Viacom Inc., Class B, NVS | 90,465 | 2,893,071 | ||||||
|
| |||||||
2,973,007 | ||||||||
Equity Real Estate Investment Trusts (REITs) — 6.4% |
| |||||||
Brixmor Property Group Inc. | 77,344 | 1,252,973 | ||||||
Gaming and Leisure Properties Inc. | 51,434 | 1,732,811 | ||||||
HCP Inc. | 120,259 | 3,313,135 | ||||||
Kimco Realty Corp. | 107,857 | 1,735,419 |
30 | 2 0 1 8 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)
October 31, 2018 | iShares® MorningstarMid-Cap Value ETF
(Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Equity Real Estate Investment Trusts (REITs) (continued) |
| |||||||
Lamar Advertising Co., Class A | 21,659 | $ | 1,588,038 | |||||
Liberty Property Trust | 37,834 | 1,584,110 | ||||||
Medical Properties Trust Inc. | 93,560 | 1,390,302 | ||||||
Omega Healthcare Investors Inc.(b) | 51,278 | 1,710,121 | ||||||
Park Hotels & Resorts Inc. | 51,494 | 1,496,931 | ||||||
SL Green Realty Corp.(b) | 22,157 | 2,022,048 | ||||||
VEREIT Inc. | 247,641 | 1,815,208 | ||||||
Welltower Inc. | 95,225 | 6,291,516 | ||||||
WP Carey Inc. | 27,442 | 1,811,446 | ||||||
|
| |||||||
27,744,058 | ||||||||
Food & Staples Retailing — 1.4% |
| |||||||
Kroger Co. (The) | 203,918 | 6,068,600 | ||||||
|
| |||||||
Food Products — 5.2% |
| |||||||
Bunge Ltd. | 36,107 | 2,231,413 | ||||||
Campbell Soup Co. | 49,250 | 1,842,443 | ||||||
Conagra Brands Inc. | 119,847 | 4,266,553 | ||||||
Ingredion Inc. | 18,180 | 1,839,452 | ||||||
JM Smucker Co. (The) | 29,113 | 3,153,520 | ||||||
Kellogg Co. | 64,776 | 4,241,532 | ||||||
Pilgrim’s Pride Corp.(a) | 13,455 | 237,615 | ||||||
Seaboard Corp. | 69 | 266,685 | ||||||
Tyson Foods Inc., Class A | 75,744 | 4,538,581 | ||||||
|
| |||||||
22,617,794 | ||||||||
Gas Utilities — 0.8% |
| |||||||
National Fuel Gas Co. | 21,967 | 1,192,589 | ||||||
UGI Corp. | 44,502 | 2,361,276 | ||||||
|
| |||||||
3,553,865 | ||||||||
Health Care Providers & Services — 2.3% |
| |||||||
Cardinal Health Inc. | 79,048 | 3,999,829 | ||||||
Quest Diagnostics Inc. | 34,981 | 3,292,062 | ||||||
Universal Health Services Inc., Class B | 22,035 | 2,678,574 | ||||||
|
| |||||||
9,970,465 | ||||||||
Household Durables — 2.0% |
| |||||||
Garmin Ltd. | 30,928 | 2,046,196 | ||||||
Leggett & Platt Inc. | 33,379 | 1,211,991 | ||||||
Mohawk Industries Inc.(a) | 16,231 | 2,024,493 | ||||||
Newell Brands Inc.(b) | 111,266 | 1,766,904 | ||||||
Whirlpool Corp. | 16,526 | 1,813,894 | ||||||
|
| |||||||
8,863,478 | ||||||||
Independent Power and Renewable Electricity Producers — 1.8% |
| |||||||
AES Corp./VA | 169,365 | 2,469,342 | ||||||
NRG Energy Inc. | 77,666 | 2,810,733 | ||||||
Vistra Energy Corp.(a) | 103,542 | 2,343,155 | ||||||
|
| |||||||
7,623,230 | ||||||||
Insurance — 8.2% |
| |||||||
Alleghany Corp. | 3,823 | 2,296,400 | ||||||
American Financial Group Inc./OH | 18,014 | 1,801,940 | ||||||
Assurant Inc. | 13,532 | 1,315,446 | ||||||
Axis Capital Holdings Ltd. | 21,355 | 1,191,395 | ||||||
Brighthouse Financial Inc.(a)(b) | 30,613 | 1,213,193 | ||||||
Cincinnati Financial Corp. | 38,718 | 3,044,784 | ||||||
Fidelity National Financial Inc. | 70,365 | 2,353,709 | ||||||
First American Financial Corp. | 28,330 | 1,255,869 | ||||||
Hartford Financial Services Group Inc. (The) | 91,741 | 4,166,876 | ||||||
Lincoln National Corp. | 55,462 | 3,338,258 | ||||||
Loews Corp.(b) | 71,174 | 3,313,861 | ||||||
Old Republic International Corp. | 72,773 | 1,604,645 | ||||||
Principal Financial Group Inc. | 67,783 | 3,190,546 |
Security | Shares | Value | ||||||
Insurance (continued) |
| |||||||
Reinsurance Group of America Inc. | 16,293 | $ | 2,319,634 | |||||
RenaissanceRe Holdings Ltd. | 10,323 | 1,261,058 | ||||||
Unum Group | 55,980 | 2,029,835 | ||||||
|
| |||||||
35,697,449 | ||||||||
Internet & Direct Marketing Retail — 0.6% |
| |||||||
Qurate Retail Inc.(a)(b) | 114,737 | 2,517,330 | ||||||
|
| |||||||
IT Services — 1.7% |
| |||||||
Leidos Holdings Inc. | 38,518 | 2,495,196 | ||||||
Sabre Corp. | 64,083 | 1,579,646 | ||||||
Teradata Corp.(a)(b) | 30,439 | 1,107,980 | ||||||
Western Union Co. (The) | 114,479 | 2,065,201 | ||||||
|
| |||||||
7,248,023 | ||||||||
Leisure Products — 0.3% |
| |||||||
Mattel Inc.(a) | 87,957 | 1,194,456 | ||||||
|
| |||||||
Machinery — 1.0% |
| |||||||
Flowserve Corp. | 33,493 | 1,537,328 | ||||||
Pentair PLC | 41,305 | 1,658,396 | ||||||
Trinity Industries Inc. | 37,869 | 1,081,160 | ||||||
|
| |||||||
4,276,884 | ||||||||
Media — 2.0% |
| |||||||
Altice USA Inc., Class A | 30,186 | 492,334 | ||||||
DISH Network Corp., Class A(a) | 58,636 | 1,802,471 | ||||||
Interpublic Group of Companies Inc. (The) | 98,234 | 2,275,099 | ||||||
Omnicom Group Inc. | 57,431 | 4,268,272 | ||||||
|
| |||||||
8,838,176 | ||||||||
Metals & Mining — 4.6% |
| |||||||
Alcoa Corp.(a) | 47,725 | 1,669,898 | ||||||
Freeport-McMoRan Inc. | 370,888 | 4,320,845 | ||||||
Newmont Mining Corp. | 136,529 | 4,221,477 | ||||||
Nucor Corp. | 80,972 | 4,787,065 | ||||||
Reliance Steel & Aluminum Co. | 18,519 | 1,461,519 | ||||||
Steel Dynamics Inc. | 60,096 | 2,379,801 | ||||||
U.S. Steel Corp. | 45,294 | 1,201,650 | ||||||
|
| |||||||
20,042,255 | ||||||||
Mortgage Real Estate Investment — 2.0% |
| |||||||
AGNC Investment Corp. | 122,306 | 2,181,939 | ||||||
Annaly Capital Management Inc.(b) | 330,648 | 3,263,496 | ||||||
New Residential Investment Corp.(b) | 86,992 | 1,555,417 | ||||||
Starwood Property Trust Inc.(b) | 68,360 | 1,484,779 | ||||||
|
| |||||||
8,485,631 | ||||||||
Multi-Utilities — 6.6% |
| |||||||
Ameren Corp. | 62,465 | 4,033,990 | ||||||
CenterPoint Energy Inc. | 125,960 | 3,402,180 | ||||||
CMS Energy Corp. | 72,505 | 3,590,448 | ||||||
DTE Energy Co. | 46,527 | 5,229,635 | ||||||
MDU Resources Group Inc. | 50,097 | 1,250,421 | ||||||
NiSource Inc. | 92,923 | 2,356,527 | ||||||
SCANA Corp. | 36,565 | 1,464,428 | ||||||
Vectren Corp. | 21,266 | 1,521,157 | ||||||
WEC Energy Group Inc. | 80,764 | 5,524,257 | ||||||
|
| |||||||
28,373,043 | ||||||||
Multiline Retail — 1.8% |
| |||||||
Kohl’s Corp. | 42,672 | 3,231,551 | ||||||
Macy’s Inc. | 78,573 | 2,694,268 | ||||||
Nordstrom Inc. | 29,339 | 1,929,626 | ||||||
|
| |||||||
7,855,445 |
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)
October 31, 2018 | iShares® MorningstarMid-Cap Value ETF
(Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Oil, Gas & Consumable Fuels — 4.3% |
| |||||||
Apache Corp. | 97,902 | $ | 3,703,632 | |||||
Devon Energy Corp. | 130,233 | 4,219,549 | ||||||
Hess Corp. | 64,435 | 3,698,569 | ||||||
HollyFrontier Corp. | 41,486 | 2,797,816 | ||||||
Murphy Oil Corp. | 41,708 | 1,328,817 | ||||||
Targa Resources Corp. | 57,734 | 2,983,116 | ||||||
|
| |||||||
18,731,499 | ||||||||
Personal Products — 0.3% |
| |||||||
Herbalife Nutrition Ltd.(a) | 27,001 | 1,438,073 | ||||||
|
| |||||||
Pharmaceuticals — 1.5% |
| |||||||
Mylan NV(a) | 131,965 | 4,123,906 | ||||||
Perrigo Co. PLC | 32,222 | 2,265,207 | ||||||
|
| |||||||
6,389,113 | ||||||||
Professional Services — 0.8% |
| |||||||
ManpowerGroup Inc. | 16,644 | 1,269,771 | ||||||
Nielsen Holdings PLC | 91,180 | 2,368,856 | ||||||
|
| |||||||
3,638,627 | ||||||||
Real Estate Management & Development — 0.0% |
| |||||||
Cushman & Wakefield PLC(a) | 12,018 | 195,413 | ||||||
|
| |||||||
Semiconductors & Semiconductor Equipment — 0.2% |
| |||||||
First Solar Inc.(a) | 19,285 | 806,113 | ||||||
|
| |||||||
Software — 1.9% |
| |||||||
CA Inc. | 80,277 | 3,561,088 | ||||||
Dell Technologies Inc., Class V(a) | 51,027 | 4,612,330 | ||||||
|
| |||||||
8,173,418 | ||||||||
Specialty Retail — 2.3% |
| |||||||
AutoZone Inc.(a) | 6,767 | 4,963,391 | ||||||
Foot Locker Inc. | 29,972 | 1,412,880 | ||||||
Gap Inc. (The) | 55,539 | 1,516,215 | ||||||
L Brands Inc. | 58,437 | 1,894,528 | ||||||
|
| |||||||
9,787,014 | ||||||||
Technology Hardware, Storage & Peripherals — 1.0% |
| |||||||
Seagate Technology PLC | 66,892 | 2,691,065 | ||||||
Xerox Corp. | 56,808 | 1,583,239 | ||||||
|
| |||||||
4,274,304 |
Security | Shares | Value | ||||||
Textiles, Apparel & Luxury Goods — 1.3% |
| |||||||
Hanesbrands Inc. | 92,276 | $ | 1,583,456 | |||||
Michael Kors Holdings Ltd.(a) | 38,221 | 2,117,825 | ||||||
Ralph Lauren Corp. | 14,142 | 1,832,945 | ||||||
|
| |||||||
5,534,226 | ||||||||
Thrifts & Mortgage Finance — 0.3% |
| |||||||
New York Community Bancorp. Inc. | 125,755 | 1,204,733 | ||||||
|
| |||||||
Trading Companies & Distributors — 0.4% |
| |||||||
HD Supply Holdings Inc.(a) | 47,024 | 1,766,692 | ||||||
|
| |||||||
Total Common Stocks — 99.9% |
| 432,526,892 | ||||||
|
| |||||||
Short-Term Investments | ||||||||
Money Market Funds — 2.3% | ||||||||
BlackRock Cash Funds: Institutional, | 9,758,635 | 9,760,587 | ||||||
BlackRock Cash Funds: Treasury, | 117,718 | 117,718 | ||||||
|
| |||||||
9,878,305 | ||||||||
|
| |||||||
Total Short-Term Investments — 2.3% |
| 9,878,305 | ||||||
|
| |||||||
Total Investments in Securities — 102.2% |
| 442,405,197 | ||||||
Other Assets, Less Liabilities — (2.2)% |
| (9,443,821 | ) | |||||
|
| |||||||
Net Assets — 100.0% |
| $ | 432,961,376 | |||||
|
|
(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 October 31, 2018, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Affiliated Issuer | | Shares Held at 04/30/18 | | Net Activity | | Shares Held at 10/31/18 |
| | Value at 10/31/18 | | Income | | Net Realized Gain (Loss) | (a) | | Change in Unrealized Appreciation (Depreciation) | | |||||||||||
BlackRock Cash Funds: Institutional, | 3,552,612 | 6,206,023 | 9,758,635 | $ | 9,760,587 | $ | 17,736 | (b) | $ | (305 | ) | $ | 328 | |||||||||||||||
BlackRock Cash Funds: Treasury, | 454,765 | (337,047 | ) | 117,718 | 117,718 | 5,802 | — | — | ||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
$ | 9,878,305 | $ | 23,538 | $ | (305 | ) | $ | 328 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
(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 8 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)
October 31, 2018 | iShares® MorningstarMid-Cap Value ETF
|
Fair Value Measurements (continued)
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of October 31, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common Stocks | $ | 432,526,892 | $ | — | $ | — | $ | 432,526,892 | ||||||||
Money Market Funds | 9,878,305 | — | — | 9,878,305 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 442,405,197 | $ | — | $ | — | $ | 442,405,197 | |||||||||
|
|
|
|
|
|
|
|
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)
October 31, 2018 | iShares® MorningstarSmall-Cap ETF
(Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
| |||||||
Aerospace & Defense — 0.8% |
| |||||||
Aerojet Rocketdyne Holdings Inc.(a)(b) | 27,111 | $ | 957,560 | |||||
Moog Inc., Class A | 12,656 | 905,537 | ||||||
|
| |||||||
1,863,097 | ||||||||
Air Freight & Logistics — 0.3% |
| |||||||
Hub Group Inc., Class A(a) | 13,139 | 602,029 | ||||||
|
| |||||||
Airlines — 0.2% |
| |||||||
Allegiant Travel Co. | 4,980 | 568,417 | ||||||
|
| |||||||
Auto Components — 1.4% |
| |||||||
Delphi Technologies PLC | 34,608 | 741,996 | ||||||
Dorman Products Inc.(a)(b) | 11,390 | 899,924 | ||||||
LCI Industries | 9,835 | 682,057 | ||||||
Visteon Corp.(a)(b) | 11,446 | 904,692 | ||||||
|
| |||||||
3,228,669 | ||||||||
Banks — 10.4% |
| |||||||
BancFirst Corp. | 6,779 | 388,979 | ||||||
BankUnited Inc. | 41,137 | 1,361,635 | ||||||
CenterState Bank Corp. | 27,799 | 683,300 | ||||||
Columbia Banking System Inc. | 28,560 | 1,059,290 | ||||||
Community Bank System Inc. | 19,921 | 1,163,187 | ||||||
CVB Financial Corp. | 39,922 | 872,296 | ||||||
First Citizens BancShares Inc./NC, Class A | 3,566 | 1,521,363 | ||||||
First Commonwealth Financial Corp. | 39,145 | 528,458 | ||||||
First Financial Bancorp. | 38,161 | 998,673 | ||||||
First Merchants Corp. | 19,319 | 803,864 | ||||||
Glacier Bancorp. Inc. | 32,650 | 1,384,360 | ||||||
Great Western Bancorp. Inc. | 22,963 | 841,594 | ||||||
Heartland Financial USA Inc. | 11,178 | 593,999 | ||||||
Home BancShares Inc./AR | 62,753 | 1,194,817 | ||||||
Independent Bank Corp./Rockland MA | 10,734 | 842,082 | ||||||
Independent Bank Group Inc. | 9,143 | 529,471 | ||||||
Investors Bancorp. Inc. | 95,212 | 1,064,470 | ||||||
LegacyTexas Financial Group Inc. | 17,540 | 675,816 | ||||||
MB Financial Inc. | 32,875 | 1,459,321 | ||||||
Pacific Premier Bancorp. Inc.(a) | 17,565 | 513,425 | ||||||
Renasant Corp. | 19,283 | 672,591 | ||||||
S&T Bancorp. Inc. | 13,654 | 547,662 | ||||||
South State Corp. | 14,387 | 973,568 | ||||||
TowneBank/Portsmouth VA | 25,295 | 711,548 | ||||||
UMB Financial Corp. | 17,611 | 1,124,462 | ||||||
Union Bankshares Corp. | 23,404 | 799,013 | ||||||
United Community Banks Inc./GA | 29,005 | 721,354 | ||||||
|
| |||||||
24,030,598 | ||||||||
Beverages — 0.5% |
| |||||||
Boston Beer Co. Inc. (The), Class A, NVS(a)(b) | 3,366 | 1,034,338 | ||||||
|
| |||||||
Biotechnology — 2.2% |
| |||||||
Aimmune Therapeutics Inc.(a) | 14,619 | 388,573 | ||||||
AnaptysBio Inc.(a) | 8,800 | 657,536 | ||||||
Array BioPharma Inc.(a)(b) | 82,659 | 1,339,076 | ||||||
Atara Biotherapeutics Inc.(a)(b) | 17,685 | 604,296 | ||||||
Clovis Oncology Inc.(a)(b) | 20,589 | 239,450 | ||||||
Immunomedics Inc.(a)(b) | 63,407 | 1,428,560 | ||||||
OPKO Health Inc.(a)(b) | 141,785 | 479,233 | ||||||
|
| |||||||
5,136,724 | ||||||||
Building Products — 1.5% |
| |||||||
Armstrong World Industries Inc.(a)(b) | 20,177 | 1,245,930 |
Security | Shares | Value | ||||||
Building Products (continued) |
| |||||||
Builders FirstSource Inc.(a)(b) | 44,874 | $ | 555,540 | |||||
Masonite International Corp.(a) | 10,761 | 596,052 | ||||||
Patrick Industries Inc.(a) | 9,089 | 395,462 | ||||||
Universal Forest Products Inc. | 24,023 | 679,130 | ||||||
|
| |||||||
3,472,114 | ||||||||
Capital Markets — 2.5% |
| |||||||
BGC Partners Inc., Class A | 104,928 | 1,111,187 | ||||||
BrightSphere Investment Group PLC | 32,251 | 367,661 | ||||||
Cohen & Steers Inc. | 8,434 | 323,781 | ||||||
Evercore Inc., Class A | 15,991 | 1,306,305 | ||||||
Moelis & Co., Class A | 17,805 | 718,610 | ||||||
Stifel Financial Corp. | 27,804 | 1,271,199 | ||||||
Virtu Financial Inc., Class A | 25,041 | 593,973 | ||||||
|
| |||||||
5,692,716 | ||||||||
Chemicals — 3.4% |
| |||||||
Ferro Corp.(a) | 32,816 | 555,903 | ||||||
GCP Applied Technologies Inc.(a)(b) | 28,144 | 730,900 | ||||||
HB Fuller Co. | 19,728 | 877,107 | ||||||
Innospec Inc. | 9,523 | 637,279 | ||||||
Kraton Corp.(a) | 12,432 | 342,377 | ||||||
Minerals Technologies Inc. | 13,762 | 753,470 | ||||||
PolyOne Corp. | 31,225 | 1,008,880 | ||||||
Sensient Technologies Corp. | 16,510 | 1,070,839 | ||||||
Tronox Ltd., Class A | 36,747 | 420,753 | ||||||
Valvoline Inc. | 74,470 | 1,483,442 | ||||||
|
| |||||||
7,880,950 | ||||||||
Commercial Services & Supplies — 3.1% |
| |||||||
ABM Industries Inc. | 25,669 | 789,322 | ||||||
Brady Corp., Class A, NVS | 18,800 | 757,452 | ||||||
Brink’s Co. (The) | 19,898 | 1,319,635 | ||||||
Covanta Holding Corp. | 45,407 | 667,029 | ||||||
Herman Miller Inc. | 23,206 | 764,638 | ||||||
Matthews International Corp., Class A | 12,507 | 520,541 | ||||||
Tetra Tech Inc. | 21,605 | 1,426,794 | ||||||
UniFirst Corp./MA | 6,014 | 897,890 | ||||||
|
| |||||||
7,143,301 | ||||||||
Communications Equipment — 3.3% |
| |||||||
Casa Systems Inc.(a)(b) | 11,763 | 169,387 | ||||||
Ciena Corp.(a) | 55,661 | 1,739,963 | ||||||
Finisar Corp.(a) | 45,716 | 763,000 | ||||||
Infinera Corp.(a)(b) | 59,698 | 330,727 | ||||||
NETGEAR Inc.(a) | 12,406 | 688,285 | ||||||
NetScout Systems Inc.(a)(b) | 28,270 | 714,100 | ||||||
Plantronics Inc. | 12,859 | 758,295 | ||||||
ViaSat Inc.(a)(b) | 21,857 | 1,393,602 | ||||||
Viavi Solutions Inc.(a) | 88,371 | 1,018,918 | ||||||
|
| |||||||
7,576,277 | ||||||||
Construction & Engineering — 2.7% |
| |||||||
Comfort Systems USA Inc. | 14,527 | 776,904 | ||||||
Dycom Industries Inc.(a)(b) | 12,176 | 826,507 | ||||||
EMCOR Group Inc. | 22,713 | 1,612,168 | ||||||
Granite Construction Inc. | 17,822 | 814,822 | ||||||
MasTec Inc.(a) | 25,400 | 1,105,154 | ||||||
Valmont Industries Inc. | 8,735 | 1,085,848 | ||||||
|
| |||||||
6,221,403 | ||||||||
Consumer Finance — 0.4% |
| |||||||
Nelnet Inc., Class A | 8,469 | 476,720 |
34 | 2 0 1 8 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)
October 31, 2018 | iShares® MorningstarSmall-Cap ETF
(Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Consumer Finance (continued) |
| |||||||
PRA Group Inc.(a)(b) | 17,648 | $ | 544,264 | |||||
|
| |||||||
1,020,984 | ||||||||
Containers & Packaging — 0.3% |
| |||||||
Silgan Holdings Inc. | 30,183 | 725,298 | ||||||
|
| |||||||
Diversified Telecommunication Services — 0.5% |
| |||||||
Vonage Holdings Corp.(a)(b) | 85,902 | 1,139,061 | ||||||
|
| |||||||
Electric Utilities — 0.3% |
| |||||||
Otter Tail Corp. | 15,470 | 697,233 | ||||||
|
| |||||||
Electrical Equipment — 1.1% |
| |||||||
EnerSys | 16,449 | 1,308,847 | ||||||
Generac Holdings Inc.(a) | 24,207 | 1,228,021 | ||||||
|
| |||||||
2,536,868 | ||||||||
Electronic Equipment, Instruments & Components — 0.5% |
| |||||||
SYNNEX Corp. | 16,178 | 1,255,575 | ||||||
|
| |||||||
Energy Equipment & Services — 1.0% |
| |||||||
C&J Energy Services Inc.(a) | 24,787 | 465,500 | ||||||
Dril-Quip Inc.(a)(b) | 14,644 | 623,249 | ||||||
Forum Energy Technologies Inc.(a)(b) | 31,152 | 279,122 | ||||||
FTS International Inc.(a) | 12,778 | 163,686 | ||||||
RPC Inc. | 22,690 | 337,627 | ||||||
Superior Energy Services Inc.(a) | 60,198 | 471,350 | ||||||
|
| |||||||
2,340,534 | ||||||||
Entertainment — 0.8% |
| |||||||
Cinemark Holdings Inc. | 41,497 | 1,725,030 | ||||||
|
| |||||||
Equity Real Estate Investment Trusts (REITs) — 12.5% |
| |||||||
Alexander’s Inc. | 1,476 | 464,955 | ||||||
American Assets Trust Inc. | 14,728 | 564,966 | ||||||
Americold Realty Trust | 22,370 | 553,657 | ||||||
Brandywine Realty Trust | 69,619 | 978,843 | ||||||
Cousins Properties Inc. | 163,864 | 1,361,710 | ||||||
EastGroup Properties Inc. | 13,930 | 1,334,355 | ||||||
Empire State Realty Trust Inc., Class A | 52,731 | 836,314 | ||||||
Equity Commonwealth | 47,434 | 1,412,584 | ||||||
Four Corners Property Trust Inc.(b) | 25,959 | 677,011 | ||||||
Healthcare Realty Trust Inc.(b) | 48,814 | 1,359,958 | ||||||
JBG SMITH Properties | 42,278 | 1,584,579 | ||||||
Life Storage Inc.(b) | 18,190 | 1,712,770 | ||||||
National Health Investors Inc. | 16,473 | 1,210,107 | ||||||
Paramount Group Inc. | 80,786 | 1,154,432 | ||||||
Pebblebrook Hotel Trust(b) | 26,912 | 907,204 | ||||||
PotlatchDeltic Corp.(b) | 24,177 | 876,416 | ||||||
PS Business Parks Inc. | 7,778 | 1,015,807 | ||||||
Rayonier Inc.(b) | 50,541 | 1,526,338 | ||||||
Retail Opportunity Investments Corp. | 43,985 | 773,696 | ||||||
RLJ Lodging Trust | 68,455 | 1,330,765 | ||||||
Ryman Hospitality Properties Inc. | 20,036 | 1,554,593 | ||||||
STAG Industrial Inc.(b) | 40,715 | 1,077,319 | ||||||
Taubman Centers Inc. | 23,819 | 1,310,283 | ||||||
Uniti Group Inc.(a) | 68,599 | 1,312,985 | ||||||
Urban Edge Properties | 44,446 | 910,699 | ||||||
Washington REIT | 30,662 | 854,550 | ||||||
|
| |||||||
28,656,896 | ||||||||
Food & Staples Retailing — 1.3% |
| |||||||
Casey’s General Stores Inc. | 14,284 | 1,801,355 |
Security | Shares | Value | ||||||
Food & Staples Retailing (continued) |
| |||||||
Performance Food Group Co.(a) | 40,905 | $ | 1,199,335 | |||||
|
| |||||||
3,000,690 | ||||||||
Food Products — 1.6% |
| |||||||
Cal-Maine Foods Inc. | 11,796 | 574,111 | ||||||
Hain Celestial Group Inc. (The)(a) | 34,847 | 866,994 | ||||||
J&J Snack Foods Corp. | 5,836 | 911,350 | ||||||
Lancaster Colony Corp. | 7,624 | 1,306,601 | ||||||
|
| |||||||
3,659,056 | ||||||||
Gas Utilities — 1.8% |
| |||||||
New Jersey Resources Corp. | 34,462 | 1,554,236 | ||||||
ONE Gas Inc. | 20,500 | 1,617,655 | ||||||
South Jersey Industries Inc. | 33,397 | 986,548 | ||||||
|
| |||||||
4,158,439 | ||||||||
Health Care Equipment & Supplies — 1.3% |
| |||||||
Haemonetics Corp.(a) | 20,171 | 2,107,264 | ||||||
Integer Holdings Corp.(a) | 11,535 | 859,012 | ||||||
|
| |||||||
2,966,276 | ||||||||
Health Care Providers & Services — 3.3% |
| |||||||
Acadia Healthcare Co. Inc.(a)(b) | 34,470 | 1,430,505 | ||||||
Molina Healthcare Inc.(a) | 24,074 | 3,051,861 | ||||||
Premier Inc., Class A(a)(b) | 20,765 | 934,425 | ||||||
Select Medical Holdings Corp.(a) | 42,240 | 700,339 | ||||||
Tenet Healthcare Corp.(a) | 32,330 | 831,851 | ||||||
Tivity Health Inc.(a)(b) | 15,604 | 536,934 | ||||||
|
| |||||||
7,485,915 | ||||||||
Health Care Technology — 0.4% |
| |||||||
Allscripts Healthcare Solutions Inc.(a)(b) | 68,062 | 810,619 | ||||||
|
| |||||||
Hotels, Restaurants & Leisure — 2.5% |
| |||||||
Bloomin’ Brands Inc. | 36,092 | 720,035 | ||||||
Boyd Gaming Corp. | 31,510 | 836,905 | ||||||
Cheesecake Factory Inc. (The) | 16,435 | 794,468 | ||||||
Cracker Barrel Old Country Store Inc. | 9,373 | 1,487,308 | ||||||
Dave & Buster’s Entertainment Inc. | 15,347 | 913,914 | ||||||
Papa John’s International Inc. | 8,763 | 477,934 | ||||||
Red Rock Resorts Inc., Class A | 27,157 | 628,413 | ||||||
|
| |||||||
5,858,977 | ||||||||
Household Durables — 1.3% |
| |||||||
Helen of Troy Ltd.(a)(b) | 10,288 | 1,276,946 | ||||||
KB Home | 33,376 | 666,519 | ||||||
LGI Homes Inc.(a)(b) | 7,277 | 311,383 | ||||||
Tempur Sealy International Inc.(a)(b) | 17,825 | 823,693 | ||||||
|
| |||||||
3,078,541 | ||||||||
Household Products — 0.9% |
| |||||||
Central Garden & Pet Co.(a)(b) | 4,022 | 130,635 | ||||||
Central Garden & Pet Co., Class A, NVS(a) | 15,930 | 472,324 | ||||||
Energizer Holdings Inc. | 23,338 | 1,371,574 | ||||||
|
| |||||||
1,974,533 | ||||||||
Independent Power and Renewable Electricity Producers — 0.2% |
| |||||||
TerraForm Power Inc., Class A | 31,879 | 359,276 | ||||||
|
| |||||||
Insurance — 4.6% |
| |||||||
Enstar Group Ltd.(a) | 5,889 | 1,069,442 | ||||||
FBL Financial Group Inc., Class A | 3,890 | 268,332 | ||||||
Horace Mann Educators Corp. | 15,997 | 628,362 | ||||||
Kemper Corp. | 23,511 | 1,767,792 | ||||||
Mercury General Corp. | 10,573 | 627,085 | ||||||
National General Holdings Corp. | 23,775 | 662,372 | ||||||
Navigators Group Inc. (The) | 9,050 | 625,808 |
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) (continued)
October 31, 2018 | iShares® MorningstarSmall-Cap ETF
(Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Insurance (continued) |
| |||||||
Primerica Inc. | 16,660 | $ | 1,828,268 | |||||
ProAssurance Corp. | 20,900 | 917,928 | ||||||
RLI Corp. | 15,209 | 1,124,401 | ||||||
White Mountains Insurance Group Ltd.(b) | 1,240 | 1,099,471 | ||||||
|
| |||||||
10,619,261 | ||||||||
Interactive Media & Services — 0.5% |
| |||||||
Cargurus Inc.(a)(b) | 12,795 | 568,354 | ||||||
Cars.com Inc.(a)(b) | 25,022 | 653,324 | ||||||
|
| |||||||
1,221,678 | ||||||||
Internet & Direct Marketing Retail — 0.4% |
| |||||||
Liberty Expedia Holdings Inc., Class A(a) | 21,223 | 921,503 | ||||||
|
| |||||||
IT Services — 2.8% |
| |||||||
CACI International Inc., Class A(a) | 9,643 | 1,720,890 | ||||||
CoreLogic Inc./U.S.(a)(b) | 31,604 | 1,283,754 | ||||||
CSG Systems International Inc. | 13,072 | 458,827 | ||||||
MAXIMUS Inc. | 25,077 | 1,629,253 | ||||||
Science Applications International Corp. | 16,579 | 1,152,406 | ||||||
TTEC Holdings Inc. | 5,402 | 134,618 | ||||||
|
| |||||||
6,379,748 | ||||||||
Machinery — 4.4% |
| |||||||
Actuant Corp., Class A(b) | 23,813 | 567,940 | ||||||
Barnes Group Inc. | 18,397 | 1,041,270 | ||||||
EnPro Industries Inc. | 8,177 | 508,609 | ||||||
Franklin Electric Co. Inc. | 15,123 | 641,518 | ||||||
Gates Industrial Corp. PLC(a) | 18,159 | 273,293 | ||||||
Hillenbrand Inc. | 24,336 | 1,165,694 | ||||||
ITT Inc. | 34,192 | 1,726,696 | ||||||
Mueller Industries Inc. | 22,439 | 546,390 | ||||||
Mueller Water Products Inc., Class A | 61,690 | 632,939 | ||||||
SPX FLOW Inc.(a) | 16,594 | 568,013 | ||||||
Terex Corp. | 25,281 | 844,133 | ||||||
Watts Water Technologies Inc., Class A | 10,845 | 759,692 | ||||||
Welbilt Inc.(a)(b) | 50,794 | 950,864 | ||||||
|
| |||||||
10,227,051 | ||||||||
Media — 2.3% |
| |||||||
Cable One Inc. | 1,937 | 1,735,048 | ||||||
Emerald Expositions Events Inc. | 9,712 | 141,990 | ||||||
John Wiley & Sons Inc., Class A | 17,735 | 961,946 | ||||||
Nexstar Media Group Inc., Class A | 17,788 | 1,332,143 | ||||||
Tribune Media Co., Class A | 31,482 | 1,196,631 | ||||||
|
| |||||||
5,367,758 | ||||||||
Metals & Mining — 1.5% |
| |||||||
Allegheny Technologies Inc.(a)(b) | 49,078 | 1,270,630 | ||||||
Commercial Metals Co. | 45,612 | 869,365 | ||||||
Kaiser Aluminum Corp. | 6,487 | 618,665 | ||||||
Worthington Industries Inc. | 15,756 | 659,861 | ||||||
|
| |||||||
3,418,521 | ||||||||
Mortgage Real Estate Investment — 0.3% |
| |||||||
Colony Credit Real Estate Inc.(b) | 32,562 | 694,873 | ||||||
|
| |||||||
Oil, Gas & Consumable Fuels — 1.7% |
| |||||||
Carrizo Oil & Gas Inc.(a) | 33,231 | 605,137 | ||||||
Laredo Petroleum Inc.(a)(b) | 59,676 | 312,702 | ||||||
PBF Energy Inc., Class A | 46,765 | 1,957,115 | ||||||
SM Energy Co. | 40,296 | 980,805 | ||||||
|
| |||||||
3,855,759 | ||||||||
Paper & Forest Products — 0.2% |
| |||||||
Boise Cascade Co. | 15,164 | 466,900 | ||||||
|
|
Security | Shares | Value | ||||||
Pharmaceuticals — 1.2% |
| |||||||
Akorn Inc.(a) | 36,861 | $ | 245,863 | |||||
Corcept Therapeutics Inc.(a) | 41,169 | 483,736 | ||||||
Horizon Pharma PLC(a) | 65,076 | 1,185,034 | ||||||
Prestige Consumer Healthcare Inc.(a) | 20,178 | 729,636 | ||||||
|
| |||||||
2,644,269 | ||||||||
Professional Services — 0.4% |
| |||||||
FTI Consulting Inc.(a)(b) | 14,893 | 1,029,255 | ||||||
|
| |||||||
Real Estate Management & Development — 0.7% |
| |||||||
HFF Inc., Class A | 15,240 | 560,070 | ||||||
Newmark Group Inc., Class A | 9,230 | 89,900 | ||||||
Realogy Holdings Corp. | 48,343 | 921,901 | ||||||
|
| |||||||
1,571,871 | ||||||||
Road & Rail — 1.7% |
| |||||||
Avis Budget Group Inc.(a) | 25,930 | 729,152 | ||||||
Genesee & Wyoming Inc., Class A(a) | 23,195 | 1,837,740 | ||||||
Saia Inc.(a) | 10,021 | 629,920 | ||||||
Schneider National Inc., Class B | 11,068 | 242,057 | ||||||
Werner Enterprises Inc. | 17,306 | 557,080 | ||||||
|
| |||||||
3,995,949 | ||||||||
Semiconductors & Semiconductor Equipment — 1.8% |
| |||||||
Advanced Energy Industries Inc.(a)(b) | 15,256 | 656,466 | ||||||
Diodes Inc.(a)(b) | 15,440 | 466,134 | ||||||
Kulicke & Soffa Industries Inc. | 26,333 | 535,350 | ||||||
Semtech Corp.(a) | 25,861 | 1,162,193 | ||||||
Versum Materials Inc. | 42,542 | 1,342,625 | ||||||
|
| |||||||
4,162,768 | ||||||||
Software — 0.8% |
| |||||||
j2 Global Inc. | 18,267 | 1,330,568 | ||||||
Progress Software Corp. | 17,557 | 564,282 | ||||||
|
| |||||||
1,894,850 | ||||||||
Specialty Retail — 2.3% |
| |||||||
Aaron’s Inc. | 27,014 | 1,273,170 | ||||||
Abercrombie & Fitch Co., Class A | 26,122 | 514,604 | ||||||
Children’s Place Inc. (The) | 6,393 | 955,114 | ||||||
Guess? Inc. | 22,133 | 470,105 | ||||||
Lithia Motors Inc., Class A | 9,051 | 806,263 | ||||||
RH(a)(b) | 7,627 | 882,520 | ||||||
Tailored Brands Inc. | 19,437 | 408,371 | ||||||
|
| |||||||
5,310,147 | ||||||||
Textiles, Apparel & Luxury Goods — 1.9% |
| |||||||
G-III Apparel Group Ltd.(a)(b) | 16,304 | 649,877 | ||||||
Skechers U.S.A. Inc., Class A(a) | 52,751 | 1,507,096 | ||||||
Steven Madden Ltd. | 31,145 | 973,904 | ||||||
Wolverine World Wide Inc. | 37,132 | 1,305,933 | ||||||
|
| |||||||
4,436,810 | ||||||||
Thrifts & Mortgage Finance — 1.8% |
| |||||||
Axos Financial Inc.(a)(b) | 21,547 | 654,167 | ||||||
Essent Group Ltd.(a) | 38,308 | 1,510,101 | ||||||
Northwest Bancshares Inc. | 40,235 | 649,393 | ||||||
TFS Financial Corp. | 20,860 | 306,851 | ||||||
Walker & Dunlop Inc. | 11,221 | 470,833 | ||||||
WSFS Financial Corp. | 12,382 | 526,607 | ||||||
|
| |||||||
4,117,952 | ||||||||
Tobacco — 0.3% |
| |||||||
Vector Group Ltd. | 42,344 | 572,491 | ||||||
|
| |||||||
Trading Companies & Distributors — 3.2% |
| |||||||
Air Lease Corp. | 37,782 | 1,439,494 |
36 | 2 0 1 8 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)
October 31, 2018 | iShares® MorningstarSmall-Cap ETF
(Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Trading Companies & Distributors (continued) |
| |||||||
Applied Industrial Technologies Inc. | 15,093 | $ | 992,063 | |||||
Kaman Corp. | 10,919 | 693,575 | ||||||
MRC Global Inc.(a)(b) | 35,313 | 559,005 | ||||||
MSC Industrial Direct Co. Inc., Class A | 17,985 | 1,457,864 | ||||||
Rush Enterprises Inc., Class A | 11,980 | 423,972 | ||||||
Triton International Ltd. | 20,183 | 649,287 | ||||||
Univar Inc.(a) | 44,731 | 1,101,277 | ||||||
|
| |||||||
7,316,537 | ||||||||
Water Utilities — 0.7% |
| |||||||
American States Water Co. | 14,319 | 876,609 | ||||||
California Water Service Group | 18,749 | 787,458 | ||||||
|
| |||||||
1,664,067 | ||||||||
|
| |||||||
Total Common Stocks — 99.8% | 229,790,452 | |||||||
|
| |||||||
Short-Term Investments | ||||||||
Money Market Funds — 9.9% |
| |||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 2.36%(c)(d)(e) | 22,542,443 | 22,546,951 |
Security | Shares | Value | ||||||
Money Market Funds (continued) |
| |||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 2.11%(c)(d) | 179,023 | $ | 179,023 | |||||
|
| |||||||
22,725,974 | ||||||||
|
| |||||||
Total Short-Term Investments — 9.9% |
| 22,725,974 | ||||||
|
| |||||||
Total Investments in Securities — 109.7% |
| 252,516,426 | ||||||
Other Assets, Less Liabilities — (9.7)% |
| (22,413,372 | ) | |||||
|
| |||||||
Net Assets — 100.0% | $ | 230,103,054 | ||||||
|
|
(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 October 31, 2018, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Affiliated Issuer | | Shares Held at 04/30/18 | | Net Activity | | Shares Held at 10/31/18 | | | Value at 10/31/18 | | Income | | Net Realized Gain (Loss) | (a) | | Change in Unrealized Appreciation (Depreciation | ) | |||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | 18,537,935 | 4,004,508 | 22,542,443 | $ | 22,546,951 | $ | 69,898 | (b) | $ | 847 | $ | 1,684 | ||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 172,408 | 6,615 | 179,023 | 179,023 | 2,736 | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
$ | 22,725,974 | $ | 72,634 | $ | 847 | $ | 1,684 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
(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 October 31, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common Stocks | $229,790,452 | $ — | $ — | $229,790,452 | ||||||||||||
Money Market Funds | 22,725,974 | — | — | 22,725,974 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$252,516,426 | $ — | $ — | $252,516,426 | |||||||||||||
|
|
|
|
|
|
|
|
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)
October 31, 2018 | iShares® MorningstarSmall-Cap Growth ETF
(Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Aerospace & Defense — 1.2% |
| |||||||
Axon Enterprise Inc.(a) | 17,890 | $ | 1,104,171 | |||||
Cubic Corp. | 7,675 | 503,557 | ||||||
Mercury Systems Inc.(a)(b) | 14,839 | 695,355 | ||||||
|
| |||||||
2,303,083 | ||||||||
Air Freight & Logistics — 0.3% |
| |||||||
Forward Air Corp. | 8,988 | 539,190 | ||||||
|
| |||||||
Alternative Carriers — 0.3% |
| |||||||
Cogent Communications Holdings Inc. | 12,809 | 665,812 | ||||||
|
| |||||||
Application Software — 10.9% |
| |||||||
2U Inc.(a)(b) | 17,618 | 1,108,348 | ||||||
8x8 Inc.(a) | 28,569 | 491,101 | ||||||
ACI Worldwide Inc.(a)(b) | 35,497 | 890,620 | ||||||
Alarm.com Holdings Inc.(a)(b) | 10,701 | 475,980 | ||||||
Blackline Inc.(a) | 11,107 | 515,143 | ||||||
Box Inc., Class A(a) | 43,453 | 782,154 | ||||||
Cision Ltd.(a)(b) | 20,456 | 302,544 | ||||||
Cloudera Inc.(a) | 35,844 | 493,213 | ||||||
Cornerstone OnDemand Inc.(a)(b) | 16,396 | 807,503 | ||||||
Coupa Software Inc.(a) | 15,562 | 1,008,884 | ||||||
Dropbox Inc., Class A(a)(b) | 14,118 | 331,349 | ||||||
Ebix Inc. | 6,950 | 398,305 | ||||||
Ellie Mae Inc.(a)(b) | 10,622 | 704,026 | ||||||
Envestnet Inc.(a) | 13,911 | 723,650 | ||||||
Five9 Inc.(a) | 17,868 | 703,285 | ||||||
HubSpot Inc.(a)(b) | 11,070 | 1,501,646 | ||||||
Manhattan Associates Inc.(a)(b) | 20,169 | 962,868 | ||||||
Mimecast Ltd.(a)(b) | 9,910 | 345,463 | ||||||
MINDBODY Inc., Class A(a)(b) | 9,692 | 308,593 | ||||||
New Relic Inc.(a) | 13,869 | 1,237,808 | ||||||
Paylocity Holding Corp.(a) | 9,702 | 638,295 | ||||||
Q2 Holdings Inc.(a)(b) | 11,160 | 594,047 | ||||||
RealPage Inc.(a) | 22,454 | 1,190,062 | ||||||
RingCentral Inc., Class A(a) | 20,815 | 1,617,950 | ||||||
Trade Desk Inc. (The), Class A(a)(b) | 10,861 | 1,341,877 | ||||||
Zendesk Inc.(a) | 32,513 | 1,787,240 | ||||||
|
| |||||||
21,261,954 | ||||||||
Asset Management & Custody Banks — 0.1% |
| |||||||
WisdomTree Investments Inc. | 35,756 | 277,824 | ||||||
|
| |||||||
Automotive Retail — 0.4% |
| |||||||
Monro Inc. | 10,075 | 749,580 | ||||||
|
| |||||||
Biotechnology — 10.8% |
| |||||||
ACADIA Pharmaceuticals Inc.(a)(b) | 29,877 | 582,004 | ||||||
Acceleron Pharma Inc.(a) | 11,836 | 600,914 | ||||||
Agios Pharmaceuticals Inc.(a)(b) | 15,477 | 975,980 | ||||||
Amicus Therapeutics Inc.(a) | 57,946 | 647,836 | ||||||
Arena Pharmaceuticals Inc.(a) | 15,115 | 539,001 | ||||||
Blueprint Medicines Corp.(a) | 13,459 | 817,903 | ||||||
CRISPR Therapeutics AG(a) | 8,824 | 289,162 | ||||||
Emergent BioSolutions Inc.(a) | 13,494 | 825,698 | ||||||
Enanta Pharmaceuticals Inc.(a) | 4,824 | 372,220 | ||||||
Esperion Therapeutics Inc.(a)(b) | 7,579 | 344,314 | ||||||
FibroGen Inc.(a) | 23,031 | 987,339 | ||||||
Global Blood Therapeutics Inc.(a)(b) | 15,944 | 559,475 | ||||||
Halozyme Therapeutics Inc.(a) | 38,468 | 597,408 | ||||||
Heron Therapeutics Inc.(a)(b) | 20,953 | 581,655 |
Security | Shares | Value | ||||||
Biotechnology (continued) |
| |||||||
Insmed Inc.(a)(b) | 23,678 | $ | 345,699 | |||||
Intercept Pharmaceuticals Inc.(a)(b) | 6,706 | 643,843 | ||||||
Intrexon Corp.(a)(b) | 21,894 | 253,095 | ||||||
Ironwood Pharmaceuticals Inc.(a)(b) | 42,653 | 558,754 | ||||||
Ligand Pharmaceuticals Inc.(a) | 6,475 | 1,067,145 | ||||||
Loxo Oncology Inc.(a) | 8,602 | 1,313,181 | ||||||
Madrigal Pharmaceuticals Inc.(a)(b) | 2,550 | 486,693 | ||||||
Momenta Pharmaceuticals Inc.(a) | 24,069 | 301,103 | ||||||
Myriad Genetics Inc.(a) | 22,919 | 1,032,043 | ||||||
Portola Pharmaceuticals Inc.(a)(b) | 20,310 | 399,904 | ||||||
Puma Biotechnology Inc.(a) | 9,349 | 346,380 | ||||||
Repligen Corp.(a)(b) | 11,947 | 647,766 | ||||||
Sarepta Therapeutics Inc.(a)(b) | 19,150 | 2,561,504 | ||||||
Spark Therapeutics Inc.(a)(b) | 9,951 | 447,696 | ||||||
Spectrum Pharmaceuticals Inc.(a) | 30,381 | 361,534 | ||||||
TESARO Inc.(a)(b) | 13,115 | 378,761 | ||||||
Ultragenyx Pharmaceutical Inc.(a) | 14,469 | 701,023 | ||||||
Xencor Inc.(a) | 14,583 | 477,156 | ||||||
|
| |||||||
21,044,189 | ||||||||
Building Products — 1.3% |
| |||||||
AAON Inc. | 12,529 | 432,124 | ||||||
American Woodmark Corp.(a) | 4,812 | 290,837 | ||||||
Simpson Manufacturing Co. Inc. | 12,782 | 729,597 | ||||||
Trex Co. Inc.(a)(b) | 18,020 | 1,104,626 | ||||||
|
| |||||||
2,557,184 | ||||||||
Casinos & Gaming — 0.8% |
| |||||||
Churchill Downs Inc. | 3,659 | 913,323 | ||||||
Eldorado Resorts Inc.(a)(b) | 19,919 | 727,044 | ||||||
|
| |||||||
1,640,367 | ||||||||
Commercial Printing — 0.6% |
| |||||||
Cimpress NV(a)(b) | 8,812 | 1,101,412 | ||||||
|
| |||||||
Communications Equipment — 0.9% |
| |||||||
InterDigital Inc. | 10,670 | 757,036 | ||||||
Lumentum Holdings Inc.(a) | 19,261 | 1,052,614 | ||||||
|
| |||||||
1,809,650 | ||||||||
Construction Materials — 0.2% |
| |||||||
Summit Materials Inc., Class A(a) | 34,308 | 463,158 | ||||||
|
| |||||||
Consumer Finance — 1.1% |
| |||||||
FirstCash Inc. | 13,596 | 1,093,118 | ||||||
Green Dot Corp., Class A(a) | 14,506 | 1,098,685 | ||||||
|
| |||||||
2,191,803 | ||||||||
Data Processing & Outsourced Services — 1.2% |
| |||||||
Euronet Worldwide Inc.(a)(b) | 15,657 | 1,740,745 | ||||||
ExlService Holdings Inc.(a)(b) | 10,512 | 673,819 | ||||||
|
| |||||||
2,414,564 | ||||||||
Distillers & Vintners — 0.1% |
| |||||||
MGP Ingredients Inc. | 3,884 | 276,424 | ||||||
|
| |||||||
Diversified REITs — 0.2% |
| |||||||
Alexander & Baldwin Inc. | 20,807 | 406,569 | ||||||
|
| |||||||
Diversified Support Services — 0.8% |
| |||||||
Healthcare Services Group Inc. | 22,608 | 917,659 | ||||||
Mobile Mini Inc. | 13,678 | 562,439 | ||||||
|
| |||||||
1,480,098 | ||||||||
Education Services — 0.4% |
| |||||||
Chegg Inc.(a)(b) | 31,441 | 857,711 | ||||||
|
|
38 | 2 0 1 8 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)
October 31, 2018 | iShares® Morningstar Small-Cap Growth ETF
(Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Electronic Components — 2.1% |
| |||||||
Dolby Laboratories Inc., Class A | 19,748 | $ | 1,358,860 | |||||
II-VI Inc.(a) | 18,021 | 670,922 | ||||||
Littelfuse Inc. | 7,697 | 1,394,388 | ||||||
Rogers Corp.(a) | 5,636 | 693,566 | ||||||
|
| |||||||
4,117,736 | ||||||||
Electronic Equipment & Instruments — 1.0% |
| |||||||
Coherent Inc.(a) | 7,454 | 917,886 | ||||||
Itron Inc.(a)(b) | 10,228 | 533,288 | ||||||
Novanta Inc.(a) | 9,981 | 580,994 | ||||||
|
| |||||||
2,032,168 | ||||||||
Electronic Manufacturing Services — 0.2% |
| |||||||
Methode Electronics Inc. | 11,367 | 336,463 | ||||||
|
| |||||||
Environmental & Facilities Services — 0.9% |
| |||||||
Advanced Disposal Services Inc.(a) | 21,977 | 595,357 | ||||||
Clean Harbors Inc.(a)(b) | 15,656 | 1,065,234 | ||||||
|
| |||||||
1,660,591 | ||||||||
Financial Exchanges & Data — 0.4% |
| |||||||
Morningstar Inc. | 5,616 | 700,877 | ||||||
|
| |||||||
Food Retail — 0.5% |
| |||||||
Sprouts Farmers Market Inc.(a)(b) | 38,976 | 1,048,065 | ||||||
|
| |||||||
General Merchandise Stores — 0.8% |
| |||||||
Ollie’s Bargain Outlet Holdings Inc.(a) | 15,776 | 1,465,590 | ||||||
|
| |||||||
Health Care Equipment — 5.8% |
| |||||||
Cantel Medical Corp. | 11,128 | 880,781 | ||||||
CONMED Corp. | 7,921 | 534,113 | ||||||
Globus Medical Inc., Class A(a) | 22,484 | 1,188,279 | ||||||
Inogen Inc.(a) | 5,371 | 1,018,181 | ||||||
Integra LifeSciences Holdings | 21,681 | 1,161,451 | ||||||
LivaNova PLC(a) | 14,910 | 1,669,771 | ||||||
Nevro Corp.(a) | 9,256 | 451,323 | ||||||
Novocure Ltd.(a) | 20,801 | 689,345 | ||||||
NuVasive Inc.(a)(b) | 15,771 | 885,857 | ||||||
NxStage Medical Inc.(a)(b) | 20,363 | 577,902 | ||||||
Penumbra Inc.(a)(b) | 9,493 | 1,291,048 | ||||||
Wright Medical Group NV(a)(b) | 35,633 | 961,378 | ||||||
|
| |||||||
11,309,429 | ||||||||
Health Care REITs — 0.5% |
| |||||||
Physicians Realty Trust(b) | 55,818 | 925,462 | ||||||
|
| |||||||
Health Care Services — 1.5% |
| |||||||
Amedisys Inc.(a)(b) | 8,885 | 977,350 | ||||||
AMN Healthcare Services Inc.(a)(b) | 14,554 | 736,724 | ||||||
Diplomat Pharmacy Inc.(a)(b) | 17,380 | 344,819 | ||||||
LHC Group Inc.(a)(b) | 8,933 | 816,744 | ||||||
|
| |||||||
2,875,637 | ||||||||
Health Care Supplies — 1.3% |
| |||||||
Merit Medical Systems Inc.(a)(b) | 16,784 | 958,702 | ||||||
Neogen Corp.(a) | 15,898 | 965,327 | ||||||
Quidel Corp.(a) | 10,650 | 685,434 | ||||||
|
| |||||||
2,609,463 | ||||||||
Health Care Technology — 2.2% |
| |||||||
HMS Holdings Corp.(a) | 25,582 | 737,273 | ||||||
Medidata Solutions Inc.(a) | 18,310 | 1,287,193 | ||||||
Omnicell Inc.(a) | 12,037 | 851,016 | ||||||
Teladoc Health Inc.(a)(b) | 21,339 | 1,479,646 | ||||||
|
| |||||||
4,355,128 |
Security | Shares | Value | ||||||
Homebuilding — 0.6% |
| |||||||
Cavco Industries Inc.(a) | 2,610 | $ | 523,592 | |||||
Installed Building Products Inc.(a) | 6,800 | 207,128 | ||||||
TopBuild Corp.(a) | 10,954 | 499,722 | ||||||
|
| |||||||
1,230,442 | ||||||||
Homefurnishing Retail — 0.1% |
| |||||||
At Home Group Inc.(a)(b) | 8,112 | 221,782 | ||||||
|
| |||||||
Hotels, Resorts & Cruise Lines — 1.9% |
| |||||||
Choice Hotels International Inc. | 10,590 | 777,306 | ||||||
Hilton Grand Vacations Inc.(a) | 29,712 | 798,361 | ||||||
Hyatt Hotels Corp., Class A | 13,270 | 918,284 | ||||||
Marriott Vacations Worldwide Corp. | 12,567 | 1,112,054 | ||||||
|
| |||||||
3,606,005 | ||||||||
Household Appliances — 0.4% |
| |||||||
iRobot Corp.(a)(b) | 8,402 | 740,804 | ||||||
|
| |||||||
Household Products — 0.4% |
| |||||||
WD-40 Co. | 4,250 | 710,090 | ||||||
|
| |||||||
Human Resource & Employment Services — 2.2% |
| |||||||
ASGN Inc.(a) | 16,060 | 1,077,305 | ||||||
Insperity Inc. | 11,705 | 1,285,794 | ||||||
Korn/Ferry International | 17,454 | 787,874 | ||||||
TriNet Group Inc.(a) | 13,402 | 629,760 | ||||||
WageWorks Inc.(a)(b) | 12,182 | 484,965 | ||||||
|
| |||||||
4,265,698 | ||||||||
Hypermarkets & Super Centers — 0.3% |
| |||||||
PriceSmart Inc. | 7,021 | 492,523 | ||||||
|
| |||||||
Industrial Machinery — 2.8% |
| |||||||
Albany International Corp., Class A | 8,882 | 621,562 | ||||||
Chart Industries Inc.(a) | 9,497 | 646,271 | ||||||
ESCO Technologies Inc. | 7,963 | 487,495 | ||||||
Evoqua Water Technologies Corp.(a) | 17,851 | 171,370 | ||||||
John Bean Technologies Corp.(b) | 9,695 | 1,007,989 | ||||||
Proto Labs Inc.(a) | 8,292 | 990,479 | ||||||
RBC Bearings Inc.(a) | 7,543 | 1,113,950 | ||||||
Sun Hydraulics Corp. | 8,747 | 405,861 | ||||||
|
| |||||||
5,444,977 | ||||||||
Industrial REITs — 1.4% |
| |||||||
First Industrial Realty Trust Inc. | 38,647 | 1,186,463 | ||||||
Rexford Industrial Realty Inc. | 27,986 | 886,316 | ||||||
Terreno Realty Corp. | 17,897 | 669,885 | ||||||
|
| |||||||
2,742,664 | ||||||||
Interactive Home Entertainment — 0.4% |
| |||||||
Zynga Inc., Class A(a) | 237,366 | 864,012 | ||||||
|
| |||||||
Interactive Media & Services — 0.9% |
| |||||||
Match Group Inc.(a)(b) | 15,812 | 817,796 | ||||||
Yelp Inc.(a) | 23,613 | 1,011,109 | ||||||
|
| |||||||
1,828,905 | ||||||||
Internet & Direct Marketing Retail — 3.0% |
| |||||||
Etsy Inc.(a)(b) | 36,746 | 1,562,440 | ||||||
Groupon Inc.(a) | 125,775 | 411,284 | ||||||
Shutterfly Inc.(a)(b) | 10,244 | 512,200 | ||||||
Shutterstock Inc.(b) | 5,695 | 232,812 | ||||||
Stamps.com Inc.(a) | 5,234 | 1,058,158 | ||||||
Wayfair Inc., Class A(a)(b) | 18,307 | 2,019,079 | ||||||
|
| |||||||
5,795,973 |
S C H E D U L E O F I N V E S T M E N T S | 39 |
Schedule of Investments(unaudited) (continued)
October 31, 2018 | iShares® MorningstarSmall-Cap Growth ETF
(Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Internet Services & Infrastructure — 1.8% |
| |||||||
GTT Communications Inc.(a)(b) | 10,617 | $ | 381,151 | |||||
Okta Inc.(a)(b) | 23,848 | 1,391,769 | ||||||
Twilio Inc., Class A(a) | 23,583 | 1,773,913 | ||||||
|
| |||||||
3,546,833 | ||||||||
IT Consulting & Other Services — 0.6% |
| |||||||
LiveRamp Holdings Inc.(a) | 23,764 | 1,085,540 | ||||||
|
| |||||||
Leisure Facilities — 0.7% |
| |||||||
Planet Fitness Inc., Class A(a) | 27,054 | 1,328,081 | ||||||
|
| |||||||
Leisure Products — 0.3% |
| |||||||
Callaway Golf Co. | 27,196 | 581,994 | ||||||
|
| |||||||
Life Sciences Tools & Services — 0.7% |
| |||||||
Cambrex Corp.(a)(b) | 10,188 | 542,918 | ||||||
Syneos Health Inc.(a)(b) | 18,617 | 849,494 | ||||||
|
| |||||||
1,392,412 | ||||||||
Managed Health Care — 0.8% |
| |||||||
HealthEquity Inc.(a) | 16,622 | 1,525,900 | ||||||
|
| |||||||
Movies & Entertainment — 1.8% |
| |||||||
IMAX Corp.(a) | 16,333 | 316,207 | ||||||
Madison Square Garden Co. (The), Class A(a) | 5,285 | 1,461,937 | ||||||
Pandora Media Inc.(a) | 81,612 | 693,702 | ||||||
World Wrestling Entertainment Inc., Class A | 13,305 | 965,810 | ||||||
|
| |||||||
3,437,656 | ||||||||
Office REITs — 0.4% |
| |||||||
Corporate Office Properties Trust | 31,663 | 818,172 | ||||||
|
| |||||||
Office Services & Supplies — 0.6% |
| |||||||
MSA Safety Inc. | 10,727 | 1,120,328 | ||||||
|
| |||||||
Oil & Gas Drilling — 0.6% |
| |||||||
Patterson-UTI Energy Inc. | 67,492 | 1,123,067 | ||||||
|
| |||||||
Oil & Gas Equipment & Services — 0.3% |
| |||||||
Keane Group Inc.(a)(b) | 13,814 | 173,642 | ||||||
Oil States International Inc.(a)(b) | 18,436 | 410,570 | ||||||
|
| |||||||
584,212 | ||||||||
Oil & Gas Exploration & Production — 3.3% |
| |||||||
Callon Petroleum Co.(a) | 69,754 | 695,447 | ||||||
CNX Resources Corp.(a)(b) | 65,325 | 1,022,336 | ||||||
Extraction Oil & Gas Inc.(a) | 35,594 | 284,396 | ||||||
Jagged Peak Energy Inc.(a)(b) | 19,000 | 234,080 | ||||||
Kosmos Energy Ltd.(a) | 78,423 | 508,965 | ||||||
Matador Resources Co.(a)(b) | 31,760 | 915,958 | ||||||
PDC Energy Inc.(a)(b) | 20,261 | 860,080 | ||||||
Range Resources Corp. | 63,502 | 1,006,507 | ||||||
SRC Energy Inc.(a)(b) | 74,298 | 526,030 | ||||||
Tellurian Inc.(a)(b) | 28,829 | 230,632 | ||||||
WildHorse Resource Development Corp.(a) | 7,837 | 166,223 | ||||||
|
| |||||||
6,450,654 | ||||||||
Packaged Foods & Meats — 0.2% |
| |||||||
Calavo Growers Inc. | 4,806 | 466,182 | ||||||
|
| |||||||
Personal Products — 0.4% |
| |||||||
Inter Parfums Inc. | 5,294 | 312,293 | ||||||
USANA Health Sciences Inc.(a) | 4,249 | 497,218 | ||||||
|
| |||||||
809,511 | ||||||||
Pharmaceuticals — 1.2% |
| |||||||
Aerie Pharmaceuticals Inc.(a)(b) | 11,915 | 633,640 |
Security | Shares | Value | ||||||
Pharmaceuticals (continued) |
| |||||||
Medicines Co. (The)(a)(b) | 20,109 | $ | 467,735 | |||||
MyoKardia Inc.(a)(b) | 10,196 | 539,776 | ||||||
Supernus Pharmaceuticals Inc.(a) | 16,002 | 761,055 | ||||||
|
| |||||||
2,402,206 | ||||||||
Publishing — 0.6% |
| |||||||
New York Times Co. (The), Class A(b) | 43,272 | 1,142,381 | ||||||
|
| |||||||
Real Estate Operating Companies — 0.4% |
| |||||||
Kennedy-Wilson Holdings Inc. | 38,454 | 729,857 | ||||||
|
| |||||||
Real Estate Services — 0.2% |
| |||||||
Redfin Corp.(a)(b) | 20,719 | 320,109 | ||||||
|
| |||||||
Regional Banks — 2.5% |
| |||||||
Ameris Bancorp. | 12,267 | 526,132 | ||||||
Cadence BanCorp. | 22,838 | 503,806 | ||||||
Eagle Bancorp. Inc.(a) | 9,700 | 476,949 | ||||||
FCB Financial Holdings Inc., Class A(a) | 14,332 | 560,811 | ||||||
First Financial Bankshares Inc. | 20,760 | 1,224,632 | ||||||
ServisFirst Bancshares Inc. | 14,052 | 505,591 | ||||||
Texas Capital Bancshares Inc.(a)(b) | 15,389 | 1,003,825 | ||||||
|
| |||||||
4,801,746 | ||||||||
Renewable Electricity — 0.7% |
| |||||||
Ormat Technologies Inc. | 15,518 | 794,056 | ||||||
Pattern Energy Group Inc., Class A | 27,930 | 500,506 | ||||||
|
| |||||||
1,294,562 | ||||||||
Research & Consulting Services — 0.4% |
| |||||||
Exponent Inc. | 15,951 | 804,887 | ||||||
|
| |||||||
Restaurants — 1.5% |
| |||||||
Jack in the Box Inc. | 8,351 | 659,144 | ||||||
Texas Roadhouse Inc. | 20,396 | 1,233,142 | ||||||
Wendy’s Co. (The) | 57,411 | 989,766 | ||||||
|
| |||||||
2,882,052 | ||||||||
Retail REITs — 0.9% |
| |||||||
Acadia Realty Trust(b) | 24,975 | 695,304 | ||||||
Spirit Realty Capital Inc. | 131,422 | 1,027,720 | ||||||
|
| |||||||
1,723,024 | ||||||||
Semiconductor Equipment — 1.6% |
| |||||||
Brooks Automation Inc. | 21,645 | 671,645 | ||||||
Cabot Microelectronics Corp. | 7,831 | 764,462 | ||||||
Entegris Inc. | 43,450 | 1,153,163 | ||||||
SolarEdge Technologies Inc.(a)(b) | 13,093 | 507,092 | ||||||
|
| |||||||
3,096,362 | ||||||||
Semiconductors — 4.7% |
| |||||||
Ambarella Inc.(a)(b) | 10,268 | 357,121 | ||||||
Cirrus Logic Inc.(a) | 18,695 | 699,941 | ||||||
Cree Inc.(a)(b) | 31,224 | 1,212,116 | ||||||
Integrated Device Technology Inc.(a) | 39,690 | 1,857,889 | ||||||
MaxLinear Inc.(a)(b) | 19,188 | 372,439 | ||||||
Mellanox Technologies Ltd.(a)(b) | 13,959 | 1,182,188 | ||||||
Power Integrations Inc. | 9,037 | 508,964 | ||||||
Rambus Inc.(a) | 32,991 | 287,351 | ||||||
Silicon Laboratories Inc.(a) | 13,298 | 1,084,186 | ||||||
Universal Display Corp. | 13,005 | 1,599,745 | ||||||
|
| |||||||
9,161,940 | ||||||||
Soft Drinks — 0.2% |
| |||||||
National Beverage Corp.(a) | 3,725 | 344,376 | ||||||
|
|
40 | 2 0 1 8 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)
October 31, 2018 | iShares® MorningstarSmall-Cap Growth ETF
(Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Specialized Consumer Services — 0.6% |
| |||||||
Sotheby’s(a) | 11,262 | $ | 473,004 | |||||
Weight Watchers International Inc.(a)(b) | 11,843 | 782,822 | ||||||
|
| |||||||
1,255,826 | ||||||||
Specialized REITs — 0.9% |
| |||||||
CoreSite Realty Corp. | 11,260 | 1,056,863 | ||||||
QTS Realty Trust Inc., Class A | 15,630 | 598,942 | ||||||
|
| |||||||
1,655,805 | ||||||||
Specialty Chemicals — 1.5% |
| |||||||
Balchem Corp. | 9,879 | 925,168 | ||||||
Ingevity Corp.(a) | 12,900 | 1,174,932 | ||||||
PQ Group Holdings Inc.(a) | 11,219 | 180,065 | ||||||
Quaker Chemical Corp. | 4,086 | 735,072 | ||||||
|
| |||||||
3,015,237 | ||||||||
Specialty Stores — 1.3% |
| |||||||
Five Below Inc.(a)(b) | 17,099 | 1,946,208 | ||||||
National Vision Holdings Inc.(a) | 14,796 | 612,998 | ||||||
|
| |||||||
2,559,206 | ||||||||
Steel — 0.3% |
| |||||||
Carpenter Technology Corp. | 14,487 | 631,778 | ||||||
|
| |||||||
Systems Software — 2.1% |
| |||||||
CommVault Systems Inc.(a) | 11,775 | 685,541 | ||||||
FireEye Inc.(a)(b) | 59,800 | 1,105,702 | ||||||
Imperva Inc.(a) | 10,072 | 557,485 | ||||||
Qualys Inc.(a)(b) | 10,283 | 732,561 | ||||||
SailPoint Technologies Holding Inc.(a) | 19,858 | 517,102 | ||||||
Varonis Systems Inc.(a) | 8,949 | 546,515 | ||||||
|
| |||||||
4,144,906 | ||||||||
Technology Hardware, Storage & Peripherals — 0.6% |
| |||||||
Pure Storage Inc., Class A(a)(b) | 53,302 | 1,075,634 | ||||||
|
| |||||||
Thrifts & Mortgage Finance — 0.2% |
| |||||||
LendingTree Inc.(a)(b) | 2,275 | 458,845 | ||||||
|
| |||||||
Trading Companies & Distributors — 0.7% |
| |||||||
Beacon Roofing Supply Inc.(a) | 20,872 | 582,538 | ||||||
SiteOne Landscape Supply Inc.(a)(b) | 12,427 | 845,533 | ||||||
|
| |||||||
1,428,071 |
Security | Shares | Value | ||||||
Trucking — 0.8% |
| |||||||
Heartland Express Inc.(b) | 14,603 | $ | 284,320 | |||||
Landstar System Inc. | 12,609 | 1,262,035 | ||||||
|
| |||||||
1,546,355 | ||||||||
Wireless Telecommunication Services — 0.4% |
| |||||||
Shenandoah Telecommunications Co. | 14,112 | 536,538 | ||||||
U.S. Cellular Corp.(a) | 4,361 | 208,325 | ||||||
|
| |||||||
744,863 | ||||||||
|
| |||||||
Total Common Stocks — 100.0% |
| 194,911,626 | ||||||
|
| |||||||
Short-Term Investments | ||||||||
Money Market Funds — 19.4% | ||||||||
BlackRock Cash Funds: Institutional, | 37,714,092 | 37,721,635 | ||||||
BlackRock Cash Funds: Treasury, | 128,316 | 128,316 | ||||||
|
| |||||||
37,849,951 | ||||||||
|
| |||||||
Total Short -Term Investments — 19.4% |
| 37,849,951 | ||||||
|
| |||||||
Total Investments in Securities — 119.4% |
| 232,761,577 | ||||||
Other Assets, Less Liabilities — (19.4)% |
| (37,751,168 | ) | |||||
|
| |||||||
Net Assets — 100.0% |
| $ | 195,010,409 | |||||
|
|
(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 October 31, 2018, 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 | 04/30/18 | Net Activity | 10/31/18 | 10/31/18 | Income | Gain (Loss) | (a) | (Depreciation) | ||||||||||||||||||||
BlackRock Cash Funds: Institutional, | 34,493,817 | 3,220,275 | 37,714,092 | $ | 37,721,635 | $ | 84,400 | (b) | $ | 458 | $ | 2,521 | ||||||||||||||||
BlackRock Cash Funds: Treasury, | 178,468 | (50,152) | 128,316 | 128,316 | 1,322 | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
$ | 37,849,951 | $ | 85,722 | $ | 458 | $ | 2,521 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
(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 | 41 |
Schedule of Investments(unaudited) (continued)
October 31, 2018 | iShares® MorningstarSmall-Cap Growth ETF
|
Fair Value Measurements (continued)
The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of October 31, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common Stocks | $ | 194,911,626 | $ | — | $ | — | $ | 194,911,626 | ||||||||
Money Market Funds | 37,849,951 | — | — | 37,849,951 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 232,761,577 | $ | — | $ | — | $ | 232,761,577 | |||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
42 | 2 0 1 8 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)
October 31, 2018 | iShares® MorningstarSmall-Cap Value ETF
(Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks | ||||||||
Aerospace & Defense — 0.5% |
| |||||||
Esterline Technologies Corp.(a) | 18,396 | $ | 2,158,955 | |||||
|
| |||||||
Air Freight & Logistics — 0.2% |
| |||||||
Atlas Air Worldwide Holdings Inc.(a) | 17,774 | 917,494 | ||||||
|
| |||||||
Airlines — 1.5% |
| |||||||
Hawaiian Holdings Inc. | 35,217 | 1,218,860 | ||||||
SkyWest Inc. | 36,164 | 2,071,836 | ||||||
Spirit Airlines Inc.(a)(b) | 47,382 | 2,459,126 | ||||||
|
| |||||||
5,749,822 | ||||||||
Auto Components — 1.3% |
| |||||||
American Axle & Manufacturing Holdings Inc.(a)(b) | 77,520 | 1,175,979 | ||||||
Cooper-Standard Holdings Inc.(a) | 11,499 | 1,065,382 | ||||||
Dana Inc. | 100,362 | 1,562,636 | ||||||
Tenneco Inc., Class A | 34,907 | 1,201,848 | ||||||
|
| |||||||
5,005,845 | ||||||||
Banks — 13.5% |
| |||||||
Associated Banc-Corp. | 119,487 | 2,769,709 | ||||||
BancorpSouth Bank | 62,363 | 1,789,818 | ||||||
Bank of Hawaii Corp. | 29,183 | 2,289,115 | ||||||
Banner Corp. | 22,854 | 1,321,418 | ||||||
Berkshire Hills Bancorp. Inc. | 28,028 | 935,294 | ||||||
Cathay General Bancorp. | 53,574 | 2,018,133 | ||||||
Chemical Financial Corp. | 49,574 | 2,323,038 | ||||||
First BanCorp./Puerto Rico(a) | 150,573 | 1,389,789 | ||||||
First Busey Corp. | 30,139 | 841,481 | ||||||
First Hawaiian Inc. | 62,724 | 1,554,301 | ||||||
First Midwest Bancorp. Inc. | 71,555 | 1,642,903 | ||||||
FNB Corp. | 225,138 | 2,663,383 | ||||||
Fulton Financial Corp. | 122,165 | 1,955,862 | ||||||
Hancock Whitney Corp. | 59,241 | 2,485,752 | ||||||
Hilltop Holdings Inc. | 50,495 | 1,004,851 | ||||||
Hope Bancorp Inc. | 85,809 | 1,242,514 | ||||||
IBERIABANK Corp. | 38,900 | 2,897,661 | ||||||
International Bancshares Corp. | 38,112 | 1,474,934 | ||||||
NBT Bancorp. Inc. | 30,357 | 1,107,727 | ||||||
Old National Bancorp./IN | 105,873 | 1,889,833 | ||||||
Park National Corp. | 9,462 | 864,827 | ||||||
Popular Inc. | 71,041 | 3,694,842 | ||||||
Simmons First National Corp., Class A | 64,134 | 1,717,509 | ||||||
TCF Financial Corp. | 116,431 | 2,431,079 | ||||||
Trustmark Corp. | 46,948 | 1,445,998 | ||||||
United Bankshares Inc./WV | 72,085 | 2,391,059 | ||||||
Valley National Bancorp. | 230,144 | 2,296,837 | ||||||
WesBanco Inc. | 37,884 | 1,519,148 | ||||||
Westamerica Bancorp. | 18,525 | 1,078,340 | ||||||
|
| |||||||
53,037,155 | ||||||||
Building Products — 0.2% |
| |||||||
JELD-WEN Holding Inc.(a)(b) | 48,191 | 783,586 | ||||||
|
| |||||||
Capital Markets — 1.4% |
| |||||||
Artisan Partners Asset Management Inc., Class A | 35,181 | 964,311 | ||||||
Federated Investors Inc., Class B | 66,454 | 1,639,420 | ||||||
Legg Mason Inc. | 59,383 | 1,675,788 | ||||||
Waddell & Reed Financial Inc., Class A | 55,323 | 1,055,010 | ||||||
|
| |||||||
5,334,529 | ||||||||
Chemicals — 2.6% |
| |||||||
Ashland Global Holdings Inc. | 43,343 | 3,206,515 |
Security | Shares | Value | ||||||
Chemicals (continued) |
| |||||||
Cabot Corp. | 42,742 | $ | 2,080,681 | |||||
Kronos Worldwide Inc. | 15,278 | 214,350 | ||||||
Platform Specialty Products Corp.(a)(b) | 162,115 | 1,754,084 | ||||||
Stepan Co. | 14,060 | 1,161,216 | ||||||
Trinseo SA | 29,554 | 1,592,370 | ||||||
Venator Materials PLC(a) | 34,578 | 233,747 | ||||||
|
| |||||||
10,242,963 | ||||||||
Commercial Services & Supplies — 0.9% |
| |||||||
Deluxe Corp. | 33,067 | 1,561,093 | ||||||
HNI Corp. | 30,404 | 1,152,007 | ||||||
Pitney Bowes Inc. | 130,524 | 864,069 | ||||||
|
| |||||||
3,577,169 | ||||||||
Communications Equipment — 0.3% |
| |||||||
EchoStar Corp., Class A(a) | 33,657 | 1,364,791 | ||||||
|
| |||||||
Construction & Engineering — 0.5% |
| |||||||
KBR Inc. | 97,643 | 1,931,379 | ||||||
|
| |||||||
Consumer Finance — 0.9% |
| |||||||
Navient Corp. | 163,524 | 1,893,608 | ||||||
OneMain Holdings Inc.(a) | 51,852 | 1,478,819 | ||||||
|
| |||||||
3,372,427 | ||||||||
Containers & Packaging — 1.4% |
| |||||||
Bemis Co. Inc. | 63,194 | 2,892,389 | ||||||
Greif Inc., Class A, NVS | 18,034 | 853,008 | ||||||
Owens-Illinois Inc.(a)(b) | 110,568 | 1,732,601 | ||||||
|
| |||||||
5,477,998 | ||||||||
Diversified Consumer Services — 1.0% |
| |||||||
Adtalem Global Education Inc.(a)(b) | 41,595 | 2,105,955 | ||||||
Graham Holdings Co., Class B | 3,042 | 1,767,554 | ||||||
|
| |||||||
3,873,509 | ||||||||
Diversified Financial Services — 0.2% |
| |||||||
Cannae Holdings Inc.(a) | 46,820 | 864,765 | ||||||
|
| |||||||
Electric Utilities — 3.4% |
| |||||||
ALLETE Inc. | 35,657 | 2,638,618 | ||||||
El Paso Electric Co. | 28,232 | 1,610,635 | ||||||
Hawaiian Electric Industries Inc. | 75,596 | 2,819,731 | ||||||
MGE Energy Inc. | 24,069 | 1,503,831 | ||||||
PNM Resources Inc. | 55,319 | 2,124,803 | ||||||
Portland General Electric Co. | 61,960 | 2,793,157 | ||||||
|
| |||||||
13,490,775 | ||||||||
Electrical Equipment — 0.6% |
| |||||||
Regal Beloit Corp. | 30,171 | 2,163,261 | ||||||
|
| |||||||
Electronic Equipment, Instruments & Components — 2.6% |
| |||||||
Anixter International Inc.(a) | 19,960 | 1,311,172 | ||||||
AVX Corp. | 32,712 | 545,636 | ||||||
Belden Inc.(b) | 28,218 | 1,525,183 | ||||||
Plexus Corp.(a)(b) | 22,409 | 1,308,686 | ||||||
Sanmina Corp.(a)(b) | 47,176 | 1,193,553 | ||||||
Tech Data Corp.(a) | 26,633 | 1,881,888 | ||||||
TTM Technologies Inc.(a)(b) | 64,233 | 751,526 | ||||||
Vishay Intertechnology Inc. | 91,748 | 1,678,988 | ||||||
|
| |||||||
10,196,632 | ||||||||
Energy Equipment & Services — 2.5% |
| |||||||
Diamond Offshore Drilling Inc.(a) | 44,904 | 636,739 | ||||||
Ensco PLC, Class A | 303,491 | 2,166,926 | ||||||
Frank’s International NV(a) | 51,230 | 363,733 | ||||||
McDermott International Inc.(a) | 125,622 | 971,058 |
S C H E D U L E O F I N V E S T M E N T S | 43 |
Schedule of Investments(unaudited) (continued)
October 31, 2018 | iShares® MorningstarSmall-Cap Value ETF
(Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Energy Equipment & Services (continued) |
| |||||||
Nabors Industries Ltd. | 225,988 | $ | 1,123,160 | |||||
Oceaneering International Inc.(a) | 68,423 | 1,295,932 | ||||||
Rowan Companies PLC, Class A(a) | 88,225 | 1,403,660 | ||||||
U.S. Silica Holdings Inc. | 53,933 | 755,062 | ||||||
Weatherford International PLC(a)(b) | 692,344 | 934,664 | ||||||
|
| |||||||
9,650,934 | ||||||||
Equity Real Estate Investment Trusts (REITs) — 12.0% |
| |||||||
Apple Hospitality REIT Inc.(b) | 150,332 | 2,430,868 | ||||||
Chesapeake Lodging Trust | 41,986 | 1,233,969 | ||||||
Colony Capital Inc. | 340,116 | 1,996,481 | ||||||
Columbia Property Trust Inc. | 81,920 | 1,839,104 | ||||||
CoreCivic Inc. | 82,335 | 1,849,244 | ||||||
DiamondRock Hospitality Co. | 146,878 | 1,534,875 | ||||||
EPR Properties | 51,621 | 3,548,428 | ||||||
GEO Group Inc. (The) | 84,572 | 1,869,887 | ||||||
Hospitality Properties Trust | 114,120 | 2,923,754 | ||||||
LaSalle Hotel Properties | 76,651 | 2,530,250 | ||||||
Lexington Realty Trust | 148,077 | 1,150,558 | ||||||
LTC Properties Inc.(b) | 27,553 | 1,178,442 | ||||||
Mack-Cali Realty Corp. | 62,693 | 1,272,668 | ||||||
Outfront Media Inc. | 96,710 | 1,713,701 | ||||||
Piedmont Office Realty Trust Inc., Class A | 89,136 | 1,606,231 | ||||||
Retail Properties of America Inc., Class A | 152,459 | 1,870,672 | ||||||
Sabra Health Care REIT Inc. | 123,786 | 2,679,967 | ||||||
Select Income REIT | 62,141 | 1,175,086 | ||||||
Senior Housing Properties Trust | 165,000 | 2,651,550 | ||||||
SITE Centers Corp. | 101,151 | 1,257,307 | ||||||
Summit Hotel Properties Inc. | 74,116 | 853,816 | ||||||
Sunstone Hotel Investors Inc. | 158,475 | 2,293,133 | ||||||
Tanger Factory Outlet Centers Inc.(b) | 66,424 | 1,478,598 | ||||||
Weingarten Realty Investors | 82,700 | 2,325,524 | ||||||
Xenia Hotels & Resorts Inc. | 77,719 | 1,597,126 | ||||||
|
| |||||||
46,861,239 | ||||||||
Food & Staples Retailing — 0.4% |
| |||||||
Rite Aid Corp.(a)(b) | 740,638 | 888,766 | ||||||
United Natural Foods Inc.(a)(b) | 35,122 | 763,201 | ||||||
|
| |||||||
1,651,967 | ||||||||
Food Products — 2.5% |
| |||||||
B&G Foods Inc.(b) | 45,723 | 1,190,627 | ||||||
Darling Ingredients Inc.(a)(b) | 114,362 | 2,362,719 | ||||||
Flowers Foods Inc. | 127,385 | 2,459,804 | ||||||
Fresh Del Monte Produce Inc. | 21,078 | 696,206 | ||||||
Sanderson Farms Inc. | 13,940 | 1,371,557 | ||||||
TreeHouse Foods Inc.(a)(b) | 39,032 | 1,778,298 | ||||||
|
| |||||||
9,859,211 | ||||||||
Gas Utilities — 1.7% |
| |||||||
Northwest Natural Holding Co. | 20,384 | 1,320,679 | ||||||
Southwest Gas Holdings Inc. | 34,115 | 2,636,066 | ||||||
Spire Inc. | 35,180 | 2,553,365 | ||||||
|
| |||||||
6,510,110 | ||||||||
Health Care Equipment & Supplies — 0.5% |
| |||||||
Avanos Medical Inc.(a) | 32,814 | 1,857,272 | ||||||
|
| |||||||
Health Care Providers & Services — 2.0% |
| |||||||
Brookdale Senior Living Inc.(a)(b) | 130,432 | 1,164,758 | ||||||
LifePoint Health Inc.(a)(b) | 26,849 | 1,741,426 | ||||||
Magellan Health Inc.(a)(b) | 17,353 | 1,128,986 | ||||||
MEDNAX Inc.(a) | 64,895 | 2,679,514 |
Security | Shares | Value | ||||||
Health Care Providers & Services (continued) |
| |||||||
Patterson Companies Inc. | 57,296 | $ | 1,293,744 | |||||
|
| |||||||
8,008,428 | ||||||||
Hotels, Restaurants & Leisure — 1.5% |
| |||||||
Brinker International Inc. | 28,346 | 1,228,799 | ||||||
Extended Stay America Inc. | 131,170 | 2,135,448 | ||||||
Penn National Gaming Inc.(a) | 74,148 | 1,800,313 | ||||||
Scientific Games Corp./DE, | 38,026 | 846,459 | ||||||
|
| |||||||
6,011,019 | ||||||||
Household Durables — 1.4% |
| |||||||
MDC Holdings Inc. | 31,431 | 883,211 | ||||||
Meritage Homes Corp.(a) | 26,558 | 989,286 | ||||||
Taylor Morrison Home Corp., | 80,241 | 1,327,186 | ||||||
TRI Pointe Group Inc.(a)(b) | 105,694 | 1,257,759 | ||||||
Tupperware Brands Corp. | 34,692 | 1,217,689 | ||||||
|
| |||||||
5,675,131 | ||||||||
Household Products — 0.5% |
| |||||||
Spectrum Brands Holdings Inc. | 32,071 | 2,083,011 | ||||||
|
| |||||||
Independent Power and Renewable Electricity Producers — 0.4% |
| |||||||
Clearway Energy Inc., Class A | 24,044 | 466,935 | ||||||
Clearway Energy Inc., Class C | 50,717 | 994,560 | ||||||
|
| |||||||
1,461,495 | ||||||||
Insurance — 5.4% |
| |||||||
American Equity Investment Life Holding Co. | 62,739 | 1,958,712 | ||||||
American National Insurance Co. | 5,964 | 735,003 | ||||||
AmTrust Financial Services Inc. | 69,327 | 994,149 | ||||||
Argo Group International Holdings Ltd. | 23,528 | 1,449,560 | ||||||
Aspen Insurance Holdings Ltd. | 41,451 | 1,735,968 | ||||||
Assured Guaranty Ltd. | 75,255 | 3,008,695 | ||||||
CNO Financial Group Inc. | 114,261 | 2,159,533 | ||||||
Employers Holdings Inc. | 23,145 | 1,063,744 | ||||||
Genworth Financial Inc., Class A(a) | 347,541 | 1,487,475 | ||||||
Hanover Insurance Group Inc. (The) | 29,534 | 3,289,497 | ||||||
Selective Insurance Group Inc. | 40,879 | 2,651,003 | ||||||
Third Point Reinsurance Ltd.(a) | 54,515 | 602,936 | ||||||
|
| |||||||
21,136,275 | ||||||||
IT Services — 1.0% |
| |||||||
Conduent Inc.(a)(b) | 127,560 | 2,436,396 | ||||||
Travelport Worldwide Ltd. | 87,608 | 1,310,616 | ||||||
|
| |||||||
3,747,012 | ||||||||
Leisure Products — 0.1% |
| |||||||
Acushnet Holdings Corp. | 23,301 | 569,243 | ||||||
|
| |||||||
Machinery — 3.0% |
| |||||||
Colfax Corp.(a)(b) | 66,884 | 1,874,759 | ||||||
Harsco Corp.(a) | 56,134 | 1,542,001 | ||||||
Kennametal Inc. | 56,690 | 2,009,660 | ||||||
Meritor Inc.(a) | 59,960 | 1,018,720 | ||||||
Navistar International Corp.(a) | 45,266 | 1,515,958 | ||||||
Rexnord Corp.(a) | 72,526 | 1,944,422 | ||||||
Timken Co. (The) | 48,183 | 1,905,638 | ||||||
|
| |||||||
11,811,158 | ||||||||
Media — 1.7% |
| |||||||
AMC Networks Inc., Class A(a)(b) | 31,534 | 1,847,262 | ||||||
Meredith Corp. | 27,628 | 1,424,500 | ||||||
Sinclair Broadcast Group Inc., Class A | 53,151 | 1,522,244 | ||||||
TEGNA Inc. | 149,485 | 1,725,057 | ||||||
|
| |||||||
6,519,063 |
44 | 2 0 1 8 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)
October 31, 2018 | iShares® MorningstarSmall-Cap Value ETF
(Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Metals & Mining — 1.3% |
| |||||||
AK Steel Holding Corp.(a)(b) | 219,337 | $ | 811,547 | |||||
Cleveland-Cliffs Inc.(a)(b) | 206,874 | 2,225,964 | ||||||
Compass Minerals International Inc. | 23,507 | 1,140,325 | ||||||
Hecla Mining Co. | 331,106 | 794,654 | ||||||
|
| |||||||
4,972,490 | ||||||||
Mortgage Real Estate Investment — 3.2% |
| |||||||
Apollo Commercial Real Estate Finance Inc.(b) | 77,728 | 1,454,291 | ||||||
Blackstone Mortgage Trust Inc., Class A | 82,167 | 2,772,315 | ||||||
Chimera Investment Corp. | 129,880 | 2,415,768 | ||||||
Invesco Mortgage Capital Inc. | 78,876 | 1,189,450 | ||||||
MFA Financial Inc. | 311,510 | 2,158,764 | ||||||
Two Harbors Investment Corp. | 172,241 | 2,530,220 | ||||||
|
| |||||||
12,520,808 | ||||||||
Multi-Utilities — 1.7% |
| |||||||
Avista Corp. | 45,623 | 2,345,935 | ||||||
Black Hills Corp. | 37,224 | 2,214,828 | ||||||
NorthWestern Corp. | 34,936 | 2,052,839 | ||||||
|
| |||||||
6,613,602 | ||||||||
Multiline Retail — 0.5% |
| |||||||
Big Lots Inc. | 27,984 | 1,161,895 | ||||||
Dillard’s Inc., Class A(b) | 13,335 | 939,051 | ||||||
|
| |||||||
2,100,946 | ||||||||
Oil, Gas & Consumable Fuels — 5.0% |
| |||||||
Arch Coal Inc., Class A | 13,589 | 1,303,185 | ||||||
Chesapeake Energy Corp.(a) | 633,406 | 2,223,255 | ||||||
CVR Energy Inc. | 20,243 | 870,449 | ||||||
Delek U.S. Holdings Inc. | 53,622 | 1,969,000 | ||||||
Gulfport Energy Corp.(a) | 109,447 | 997,062 | ||||||
Oasis Petroleum Inc.(a) | 185,463 | 1,865,758 | ||||||
Peabody Energy Corp. | 57,474 | 2,037,453 | ||||||
QEP Resources Inc.(a) | 164,560 | 1,466,230 | ||||||
SemGroup Corp., Class A | 45,474 | 840,814 | ||||||
Southwestern Energy Co.(a) | 407,217 | 2,174,539 | ||||||
Whiting Petroleum Corp.(a) | 63,160 | 2,355,868 | ||||||
World Fuel Services Corp. | 47,234 | 1,511,488 | ||||||
|
| |||||||
19,615,101 | ||||||||
Paper & Forest Products — 1.6% |
| |||||||
Domtar Corp. | 43,669 | 2,022,311 | ||||||
KapStone Paper and Packaging Corp. | 61,785 | 2,162,475 | ||||||
Louisiana-Pacific Corp. | 99,091 | 2,157,211 | ||||||
|
| |||||||
6,341,997 | ||||||||
Personal Products — 1.1% |
| |||||||
Edgewell Personal Care Co.(a) | 37,495 | 1,799,010 | ||||||
Nu Skin Enterprises Inc., Class A | 38,551 | 2,707,051 | ||||||
|
| |||||||
4,506,061 | ||||||||
Professional Services — 0.9% |
| |||||||
Dun & Bradstreet Corp. (The) | 25,799 | 3,670,682 | ||||||
|
| |||||||
Road & Rail — 0.7% |
| |||||||
Hertz Global Holdings Inc.(a)(b) | 37,893 | 521,029 | ||||||
Ryder System Inc. | 36,865 | 2,039,003 | ||||||
|
| |||||||
2,560,032 | ||||||||
Semiconductors & Semiconductor Equipment — 0.2% |
| |||||||
Amkor Technology Inc.(a) | 89,565 | 640,390 | ||||||
|
| |||||||
Software — 1.9% |
| |||||||
Avaya Holdings Corp.(a)(b) | 71,743 | 1,178,020 | ||||||
Nuance Communications Inc.(a)(b) | 199,132 | 3,462,906 | ||||||
TiVo Corp. | 85,865 | 944,515 |
Security | Shares | Value | ||||||
Software (continued) |
| |||||||
Verint Systems Inc.(a)(b) | 44,427 | $ | 2,028,981 | |||||
|
| |||||||
7,614,422 | ||||||||
Specialty Retail — 6.1% |
| |||||||
American Eagle Outfitters Inc. | 116,991 | 2,697,812 | ||||||
AutoNation Inc.(a)(b) | 39,936 | 1,616,609 | ||||||
Bed Bath & Beyond Inc. | 97,292 | 1,336,792 | ||||||
Dick’s Sporting Goods Inc. | 53,104 | 1,878,289 | ||||||
DSW Inc., Class A | 47,343 | 1,256,957 | ||||||
GameStop Corp., Class A | 70,818 | 1,033,943 | ||||||
Group 1 Automotive Inc. | 13,174 | 760,667 | ||||||
Michaels Companies Inc. (The)(a)(b) | 67,747 | 1,073,790 | ||||||
Murphy USA Inc.(a)(b) | 20,779 | 1,675,411 | ||||||
Party City Holdco Inc.(a)(b) | 39,719 | 415,858 | ||||||
Penske Automotive Group Inc. | 25,393 | 1,126,941 | ||||||
Sally Beauty Holdings Inc.(a)(b) | 83,433 | 1,485,942 | ||||||
Signet Jewelers Ltd. | 36,042 | 2,020,154 | ||||||
Urban Outfitters Inc.(a)(b) | 52,952 | 2,089,486 | ||||||
Williams-Sonoma Inc. | 55,930 | 3,321,123 | ||||||
|
| |||||||
23,789,774 | ||||||||
Technology Hardware, Storage & Peripherals — 0.6% |
| |||||||
NCR Corp.(a)(b) | 81,860 | 2,197,941 | ||||||
|
| |||||||
Textiles, Apparel & Luxury Goods — 0.7% |
| |||||||
Deckers Outdoor Corp.(a) | 20,875 | 2,654,674 | ||||||
|
| |||||||
Thrifts & Mortgage Finance — 2.7% |
| |||||||
Capitol Federal Financial Inc. | 96,100 | 1,192,601 | ||||||
Flagstar Bancorp. Inc.(a) | 20,478 | 630,518 | ||||||
MGIC Investment Corp.(a)(b) | 251,450 | 3,070,205 | ||||||
Provident Financial Services Inc. | 42,738 | 1,042,807 | ||||||
Radian Group Inc. | 148,091 | 2,841,866 | ||||||
Washington Federal Inc. | 58,053 | 1,634,772 | ||||||
|
| |||||||
10,412,769 | ||||||||
Trading Companies & Distributors — 1.1% |
| |||||||
Aircastle Ltd. | 38,481 | 747,686 | ||||||
GATX Corp. | 26,176 | 1,961,368 | ||||||
WESCO International Inc.(a) | 32,703 | 1,641,036 | ||||||
|
| |||||||
4,350,090 | ||||||||
Transportation Infrastructure — 0.5% |
| |||||||
Macquarie Infrastructure Corp. | 53,347 | 1,971,172 | ||||||
|
| |||||||
Wireless Telecommunication Services — 0.5% |
| |||||||
Telephone & Data Systems Inc. | 63,950 | 1,971,578 | ||||||
|
| |||||||
Total Common Stocks — 99.9% |
| 391,460,152 | ||||||
|
| |||||||
Short-Term Investments |
| |||||||
Money Market Funds — 7.8% |
| |||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 2.36%(c)(d)(e) | 30,536,913 | 30,543,020 |
S C H E D U L E O F I N V E S T M E N T S | 45 |
Schedule of Investments(unaudited) (continued)
October 31, 2018 | iShares® MorningstarSmall-Cap Value ETF
(Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Money Market Funds (continued) |
| |||||||
BlackRock Cash Funds: Treasury, | 225,090 | $ | 225,090 | |||||
|
| |||||||
30,768,110 | ||||||||
|
| |||||||
Total Short-Term Investments — 7.8% |
| 30,768,110 | ||||||
|
| |||||||
Total Investments in Securities — 107.7% |
| 422,228,262 | ||||||
Other Assets, Less Liabilities — (7.7)% |
| (30,227,773 | ) | |||||
|
| |||||||
Net Assets — 100.0% |
| $ | 392,000,489 | |||||
|
|
(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 October 31, 2018, 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 | 04/30/18 | Net Activity | 10/31/18 | 10/31/18 | Income | Gain (Loss) | (a) | (Depreciation) | ||||||||||||||||||||
BlackRock Cash Funds: Institutional, | 34,562,106 | (4,025,193) | 30,536,913 | $ | 30,543,020 | $ | 100,651 | (b) | $ | 940 | $ | 2,932 | ||||||||||||||||
BlackRock Cash Funds: Treasury, | 415,787 | (190,697) | 225,090 | 225,090 | 4,739 | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
$ | 30,768,110 | $ | 105,390 | $ | 940 | $ | 2,932 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
(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. |
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 October 31, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments | ||||||||||||||||
Assets | ||||||||||||||||
Common Stocks | $ | 391,460,152 | $ | — | $ | — | $ | 391,460,152 | ||||||||
Money Market Funds | 30,768,110 | — | — | 30,768,110 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 422,228,262 | $ | — | $ | — | $ | 422,228,262 | |||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
46 | 2 0 1 8 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)
October 31, 2018
iShares Large-Cap ETF | iShares Growth ETF | iShares Value ETF | iShares Morningstar Mid-Cap ETF | |||||||||||||
ASSETS | ||||||||||||||||
Investments in securities, at value (including securities on loan)(a): | ||||||||||||||||
Unaffiliated(b) | $ | 913,380,689 | $ | 971,670,424 | $ | 386,715,347 | $ | 690,694,434 | ||||||||
Affiliated(c) | 12,656,242 | 22,501,807 | 436,056 | 25,757,463 | ||||||||||||
Receivables: | ||||||||||||||||
Investments sold | 6,726,759 | — | — | — | ||||||||||||
Securities lending income — Affiliated | 761 | 7,059 | — | 5,846 | ||||||||||||
Dividends | 875,612 | 310,424 | 641,611 | 328,606 | ||||||||||||
Tax reclaims | — | — | — | 2,209 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total assets | 933,640,063 | 994,489,714 | 387,793,014 | 716,788,558 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
LIABILITIES | ||||||||||||||||
Collateral on securities loaned, at value | 3,614,926 | 12,479,791 | — | 25,353,887 | ||||||||||||
Payables: | ||||||||||||||||
Investments purchased | 6,533,974 | — | 672,056 | — | ||||||||||||
Investment advisory fees | 162,446 | 215,135 | 83,500 | 150,625 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total liabilities | 10,311,346 | 12,694,926 | 755,556 | 25,504,512 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS | $ | 923,328,717 | $ | 981,794,788 | $ | 387,037,458 | $ | 691,284,046 | ||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS CONSIST OF: | ||||||||||||||||
Paid-in capital | $ | 795,958,446 | $ | 670,465,422 | $ | 346,532,933 | $ | 656,688,919 | ||||||||
Accumulated earnings | 127,370,271 | 311,329,366 | 40,504,525 | 34,595,127 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS | $ | 923,328,717 | $ | 981,794,788 | $ | 387,037,458 | $ | 691,284,046 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Shares outstanding | 5,850,000 | 5,800,000 | 3,750,000 | 3,950,000 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net asset value | $ | 157.83 | $ | 169.27 | $ | 103.21 | $ | 175.01 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Shares authorized | Unlimited | Unlimited | Unlimited | Unlimited | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Par value | None | None | None | None | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
(a) Securities loaned, at value | $ | 3,555,022 | $ | 12,575,823 | $ | — | $ | 25,195,411 | ||||||||
(b) Investments, at cost — Unaffiliated | $ | 788,461,078 | $ | 686,266,984 | $ | 342,542,091 | $ | 652,608,717 | ||||||||
(c) Investments, at cost — Affiliated | $ | 13,776,892 | $ | 21,811,029 | $ | 436,056 | $ | 25,755,833 |
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)
October 31, 2018
iShares Morningstar Mid-Cap Growth ETF | iShares Value ETF | iShares ETF | iShares Morningstar Small-Cap Growth ETF | |||||||||||||
ASSETS | ||||||||||||||||
Investments in securities, at value (including securities on loan)(a): | ||||||||||||||||
Unaffiliated(b) | $ | 303,328,637 | $ | 432,526,892 | $ | 229,790,452 | $ | 194,911,626 | ||||||||
Affiliated(c) | 19,430,157 | 9,878,305 | 22,725,974 | 37,849,951 | ||||||||||||
Cash | — | 23,751 | — | — | ||||||||||||
Receivables: | ||||||||||||||||
Securities lending income — Affiliated | 5,728 | 2,558 | 7,815 | 12,760 | ||||||||||||
Dividends | 64,007 | 405,873 | 173,768 | 6,140 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total assets | 322,828,529 | 442,837,379 | 252,698,009 | 232,780,477 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
LIABILITIES | ||||||||||||||||
Collateral on securities loaned, at value | 19,127,439 | 9,763,165 | 22,544,554 | 37,718,742 | ||||||||||||
Payables: | ||||||||||||||||
Investment advisory fees | 76,797 | 112,838 | 50,401 | 51,326 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total liabilities | 19,204,236 | 9,876,003 | 22,594,955 | 37,770,068 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS | $ | 303,624,293 | $ | 432,961,376 | $ | 230,103,054 | $ | 195,010,409 | ||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS CONSIST OF: | ||||||||||||||||
Paid-in capital | $ | 241,750,858 | $ | 421,387,083 | $ | 225,900,416 | $ | 170,496,747 | ||||||||
Accumulated earnings | 61,873,435 | 11,574,293 | 4,202,638 | 24,513,662 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS | $ | 303,624,293 | $ | 432,961,376 | $ | 230,103,054 | $ | 195,010,409 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Shares outstanding | 1,450,000 | 2,850,000 | 1,400,000 | 1,050,000 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net asset value | $ | 209.40 | $ | 151.92 | $ | 164.36 | $ | 185.72 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Shares authorized | Unlimited | Unlimited | Unlimited | Unlimited | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Par value | None | None | None | None | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
(a) Securities loaned, at value | $ | 19,409,526 | $ | 9,570,789 | $ | 22,442,643 | $ | 38,003,261 | ||||||||
(b) Investments, at cost — Unaffiliated | $ | 249,930,576 | $ | 414,290,292 | $ | 223,570,449 | $ | 173,686,528 | ||||||||
(c) Investments, at cost — Affiliated | $ | 19,426,596 | $ | 9,877,622 | $ | 22,722,764 | $ | 37,844,516 |
See notes to financial statements.
48 | 2 0 1 8 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)
October 31, 2018
iShares Morningstar Small-Cap Value ETF | ||||
ASSETS | ||||
Investments in securities, at value (including securities on loan)(a): | ||||
Unaffiliated(b) | $ | 391,460,152 | ||
Affiliated(c) | 30,768,110 | |||
Receivables: | ||||
Investments sold | 133,608 | |||
Securities lending income — Affiliated | 11,677 | |||
Dividends | 316,376 | |||
|
| |||
Total assets | 422,689,923 | |||
|
| |||
LIABILITIES | ||||
Collateral on securities loaned, at value | 30,547,040 | |||
Payables: | ||||
Securities related toin-kind transactions | 37,198 | |||
Investment advisory fees | 105,196 | |||
|
| |||
Total liabilities | 30,689,434 | |||
|
| |||
NET ASSETS | $ | 392,000,489 | ||
|
| |||
NET ASSETS CONSIST OF: | ||||
Paid-in capital | $ | 417,491,177 | ||
Accumulated loss | (25,490,688 | ) | ||
|
| |||
NET ASSETS | $ | 392,000,489 | ||
|
| |||
Shares outstanding | 2,800,000 | |||
|
| |||
Net asset value | $ | 140.00 | ||
|
| |||
Shares authorized | Unlimited | |||
|
| |||
Par value | None | |||
|
| |||
(a) Securities loaned, at value | $ | 30,296,640 | ||
(b) Investments, at cost — Unaffiliated | $ | 399,299,951 | ||
(c) Investments, at cost — Affiliated | $ | 30,762,051 |
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)
Six Months Ended October 31, 2018
iShares Morningstar Large-Cap ETF | iShares Morningstar Large-Cap Growth ETF | iShares Morningstar Large-Cap Value ETF | iShares Morningstar Mid-Cap ETF | |||||||||||||
INVESTMENT INCOME | ||||||||||||||||
Dividends — Unaffiliated | $ | 10,434,477 | $ | 4,409,831 | $ | 5,892,278 | $ | 8,193,534 | ||||||||
Dividends — Affiliated | 146,396 | 123,744 | 5,425 | 10,342 | ||||||||||||
Securities lending income — Affiliated — net | 2,819 | 129,825 | 738 | 36,400 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total investment income | 10,583,692 | 4,663,400 | 5,898,441 | 8,240,276 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
EXPENSES | ||||||||||||||||
Investment advisory fees | 979,599 | 1,278,329 | 495,722 | 956,790 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total expenses | 979,599 | 1,278,329 | 495,722 | 956,790 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net investment income | 9,604,093 | 3,385,071 | 5,402,719 | 7,283,486 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||
Investments — Unaffiliated | 6,878,702 | (5,752,534 | ) | (2,532,306 | ) | (11,911,162 | ) | |||||||||
Investments — Affiliated | (36,525 | ) | (2,642 | ) | 159 | 1,562 | ||||||||||
In-kind redemptions — Unaffiliated | 22,903,758 | 33,165,209 | 5,810,538 | 40,471,555 | ||||||||||||
In-kind redemptions — Affiliated | (20,026 | ) | 44,946 | — | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net realized gain | 29,725,909 | 27,454,979 | 3,278,391 | 28,561,955 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments — Unaffiliated | 6,074,671 | (1,972,348 | ) | 4,544,785 | (47,194,407 | ) | ||||||||||
Investments — Affiliated | (1,149,725 | ) | (2,372,987 | ) | (7 | ) | 405 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net change in unrealized appreciation (depreciation) | 4,924,946 | (4,345,335 | ) | 4,544,778 | (47,194,002 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net realized and unrealized gain (loss) | 34,650,855 | 23,109,644 | 7,823,169 | (18,632,047 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | 44,254,948 | $ | 26,494,715 | $ | 13,225,888 | $ | (11,348,561 | ) | |||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
50 | 2 0 1 8 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 October 31, 2018
iShares Morningstar Mid-Cap Growth ETF | iShares Value ETF | iShares Morningstar Small-Cap ETF | iShares Morningstar Small-Cap Growth ETF | |||||||||||||
INVESTMENT INCOME | ||||||||||||||||
Dividends — Unaffiliated | $ | 839,649 | $ | 5,976,478 | $ | 1,993,120 | $ | 366,961 | ||||||||
Dividends — Affiliated | 1,703 | 5,802 | 2,736 | 1,322 | ||||||||||||
Securities lending income — Affiliated — net | 49,820 | 17,736 | 69,898 | 84,400 | ||||||||||||
Foreign taxes withheld | (1,792 | ) | — | — | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total investment income | 889,380 | 6,000,016 | 2,065,754 | 452,683 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
EXPENSES | ||||||||||||||||
Investment advisory fees | 437,634 | 670,165 | 321,252 | 302,673 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total expenses | 437,634 | 670,165 | 321,252 | 302,673 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net investment income | 451,746 | 5,329,851 | 1,744,502 | 150,010 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||
Investments — Unaffiliated | (3,360,781 | ) | (1,825,336 | ) | (3,462,643 | ) | (1,713,888 | ) | ||||||||
Investments — Affiliated | 1,741 | (305 | ) | 847 | 458 | |||||||||||
In-kind redemptions — Unaffiliated | 16,524,571 | 17,938,081 | 18,130,904 | 9,730,748 | ||||||||||||
Litigation proceeds | 109,052 | (a) | — | — | 17,803 | (a) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net realized gain | 13,274,583 | 16,112,440 | 14,669,108 | 8,035,121 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments — Unaffiliated | (13,198,478 | ) | (33,977,220 | ) | (22,992,544 | ) | (7,567,359 | ) | ||||||||
Investments — Affiliated | 1,329 | 328 | 1,684 | 2,521 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net change in unrealized appreciation (depreciation) | (13,197,149 | ) | (33,976,892 | ) | (22,990,860 | ) | (7,564,838 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net realized and unrealized gain (loss) | 77,434 | (17,864,452 | ) | (8,321,752 | ) | 470,283 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | 529,180 | $ | (12,534,601 | ) | $ | (6,577,250 | ) | $ | 620,293 | ||||||
|
|
|
|
|
|
|
|
(a) | Represents proceeds received from settlement of class action litigation where the Fund was able to recover a portion of investment losses previously realized. |
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 Operations(unaudited) (continued)
Six Months Ended October 31, 2018
iShares Morningstar Small-Cap Value ETF | ||||
INVESTMENT INCOME | ||||
Dividends — Unaffiliated | $ | 4,762,294 | ||
Dividends — Affiliated | 4,739 | |||
Securities lending income — Affiliated — net | 100,651 | |||
Foreign taxes withheld | (3,745 | ) | ||
|
| |||
Total investment income | 4,863,939 | |||
|
| |||
EXPENSES | ||||
Investment advisory fees | 672,548 | |||
|
| |||
Total expenses | 672,548 | |||
|
| |||
Net investment income | 4,191,391 | |||
|
| |||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||
Net realized gain (loss) from: | ||||
Investments — Unaffiliated | 11,162,780 | |||
Investments — Affiliated | 940 | |||
In-kind redemptions — Unaffiliated | 7,536,504 | |||
|
| |||
Net realized gain | 18,700,224 | |||
|
| |||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments — Unaffiliated | (28,603,965 | ) | ||
Investments — Affiliated | 2,932 | |||
|
| |||
Net change in unrealized appreciation (depreciation) | (28,601,033 | ) | ||
|
| |||
Net realized and unrealized loss | (9,900,809 | ) | ||
|
| |||
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | (5,709,418 | ) | |
|
|
See notes to financial statements.
52 | 2 0 1 8 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 MorningstarLarge-Cap ETF | iShares MorningstarLarge-Cap Growth ETF | |||||||||||||||
Six Months Ended 10/31/18 (unaudited) | Year Ended 04/30/18 | Six Months Ended 10/31/18 (unaudited) | Year Ended 04/30/18 | |||||||||||||
| ||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income | $ | 9,604,093 | $ | 17,883,272 | $ | 3,385,071 | $ | 8,186,933 | ||||||||
Net realized gain | 29,725,909 | 87,213,011 | 27,454,979 | 71,161,100 | ||||||||||||
Net change in unrealized appreciation (depreciation) | 4,924,946 | (32,124,717 | ) | (4,345,335 | ) | 86,100,342 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase in net assets resulting from operations | 44,254,948 | 72,971,566 | 26,494,715 | 165,448,375 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||||||||||
Decrease in net assets resulting from distributions to shareholders | (9,364,570 | ) | (17,784,765 | ) | (3,588,566 | ) | (7,986,129 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions | (55,943,321 | ) | 74,761,644 | 26,571,590 | 45,828,677 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS(a) | ||||||||||||||||
Total increase (decrease) in net assets | (21,052,943 | ) | 129,948,445 | 49,477,739 | 203,290,923 | |||||||||||
Beginning of period | 944,381,660 | 814,433,215 | 932,317,049 | 729,026,126 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 923,328,717 | $ | 944,381,660 | $ | 981,794,788 | $ | 932,317,049 | ||||||||
|
|
|
|
|
|
|
|
(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 11 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 MorningstarLarge-Cap Value ETF | iShares MorningstarMid-Cap ETF | |||||||||||||||
Six Months Ended 10/31/18 (unaudited) | Year Ended 04/30/18 | Six Months Ended 10/31/18 (unaudited) | Year Ended 04/30/18 | |||||||||||||
| ||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income | $ | 5,402,719 | $ | 9,714,855 | $ | 7,283,486 | $ | 10,851,929 | ||||||||
Net realized gain | 3,278,391 | 26,701,073 | 28,561,955 | 71,952,042 | ||||||||||||
Net change in unrealized appreciation (depreciation) | 4,544,778 | (3,502,054 | ) | (47,194,002 | ) | (16,956,105 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | 13,225,888 | 32,913,874 | (11,348,561 | ) | 65,847,866 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||||||||||
Decrease in net assets resulting from distributions to shareholders | (5,186,925 | ) | (9,667,473 | ) | (6,810,262 | ) | (10,424,753 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions | 4,974,557 | (29,490,293 | ) | (38,415,182 | ) | (55,171,942 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS(a) | ||||||||||||||||
Total increase (decrease) in net assets | 13,013,520 | (6,243,892 | ) | (56,574,005 | ) | 251,171 | ||||||||||
Beginning of period | 374,023,938 | 380,267,830 | 747,858,051 | 747,606,880 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 387,037,458 | $ | 374,023,938 | $ | 691,284,046 | $ | 747,858,051 | ||||||||
|
|
|
|
|
|
|
|
(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 11 for this prior year information. |
See notes to financial statements.
54 | 2 0 1 8 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 MorningstarMid-Cap Growth ETF | iShares MorningstarMid-Cap Value ETF | |||||||||||||||
Six Months Ended 10/31/18 (unaudited) | Year Ended 04/30/18 | Six Months Ended 10/31/18 (unaudited) | Year Ended 04/30/18 | |||||||||||||
| ||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income | $ | 451,746 | $ | 924,321 | $ | 5,329,851 | $ | 8,565,141 | ||||||||
Net realized gain | 13,274,583 | 18,116,001 | 16,112,440 | 19,062,956 | ||||||||||||
Net change in unrealized appreciation (depreciation) | (13,197,149 | ) | 18,992,061 | (33,976,892 | ) | 6,451,687 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | 529,180 | 38,032,383 | (12,534,601 | ) | 34,079,784 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||||||||||
Decrease in net assets resulting from distributions to shareholders | (423,553 | ) | (1,105,496 | ) | (4,852,618 | ) | (8,237,672 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||
Net increase in net assets derived from capital share transactions | 44,380,119 | 9,438,807 | 32,547,669 | 7,434,871 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS(a) | ||||||||||||||||
Total increase in net assets | 44,485,746 | 46,365,694 | 15,160,450 | 33,276,983 | ||||||||||||
Beginning of period | 259,138,547 | 212,772,853 | 417,800,926 | 384,523,943 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 303,624,293 | $ | 259,138,547 | $ | 432,961,376 | $ | 417,800,926 | ||||||||
|
|
|
|
|
|
|
|
(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 11 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 MorningstarSmall-Cap ETF | iShares MorningstarSmall-Cap Growth ETF | |||||||||||||||
Six Months Ended 10/31/18 (unaudited) | Year Ended 04/30/18 | Six Months Ended 10/31/18 (unaudited) | Year Ended 04/30/18 | |||||||||||||
| ||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income | $ | 1,744,502 | $ | 2,907,099 | $ | 150,010 | $ | 576,559 | ||||||||
Net realized gain | 14,669,108 | 20,568,657 | 8,035,121 | 12,802,051 | ||||||||||||
Net change in unrealized appreciation (depreciation) | (22,990,860 | ) | (6,708,099 | ) | (7,564,838 | ) | 9,688,393 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | (6,577,250 | ) | 16,767,657 | 620,293 | 23,067,003 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||||||||||
Decrease in net assets resulting from distributions to shareholders | (1,794,797 | ) | (3,185,010 | ) | (346,838 | ) | (605,018 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions | (8,463,343 | ) | (8,287,953 | ) | 29,999,919 | 26,149,737 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS(a) | ||||||||||||||||
Total increase (decrease) in net assets | (16,835,390 | ) | 5,294,694 | 30,273,374 | 48,611,722 | |||||||||||
Beginning of period | 246,938,444 | 241,643,750 | 164,737,035 | 116,125,313 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 230,103,054 | $ | 246,938,444 | $ | 195,010,409 | $ | 164,737,035 | ||||||||
|
|
|
|
|
|
|
|
(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 11 for this prior year information. |
See notes to financial statements.
56 | 2 0 1 8 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 MorningstarSmall-Cap Value ETF | ||||||||
Six Months Ended 10/31/18 (unaudited) | Year Ended 04/30/18 | |||||||
| ||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||
OPERATIONS | ||||||||
Net investment income | $ | 4,191,391 | $ | 8,352,525 | ||||
Net realized gain | 18,700,224 | 32,813,003 | ||||||
Net change in unrealized appreciation (depreciation) | (28,601,033 | ) | (34,770,387 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | (5,709,418 | ) | 6,395,141 | |||||
|
|
|
| |||||
DISTRIBUTIONS TO SHAREHOLDERS(a) | ||||||||
Decrease in net assets resulting from distributions to shareholders | (4,774,940 | ) | (8,746,485 | ) | ||||
|
|
|
| |||||
CAPITAL SHARE TRANSACTIONS | ||||||||
Net decrease in net assets derived from capital share transactions | (44,675,737 | ) | (32,039,381 | ) | ||||
|
|
|
| |||||
NET ASSETS(a) | ||||||||
Total decrease in net assets | (55,160,095 | ) | (34,390,725 | ) | ||||
Beginning of period | 447,160,584 | 481,551,309 | ||||||
|
|
|
| |||||
End of period | $ | 392,000,489 | $ | 447,160,584 | ||||
|
|
|
|
(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 11 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 MorningstarLarge-Cap ETF | ||||||||||||||||||||||||
Six Months Ended 10/31/18 (unaudited) | Year Ended 04/30/18 | Year Ended 04/30/17 | Year Ended 04/30/16 | Year Ended 04/30/15 | Year Ended 04/30/14 | |||||||||||||||||||
| ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 152.32 | $ | 142.88 | $ | 120.58 | $ | 122.54 | $ | 110.41 | $ | 94.86 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income(a) | 1.59 | 2.93 | 2.57 | 2.27 | 2.33 | 2.17 | ||||||||||||||||||
Net realized and unrealized gain (loss)(b) | 5.48 | 9.42 | 22.44 | (1.27 | ) | 12.05 | 15.49 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net increase from investment operations | 7.07 | 12.35 | 25.01 | 1.00 | 14.38 | 17.66 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Distributions | ||||||||||||||||||||||||
From net investment income | (1.56 | ) | (2.91 | ) | (2.71 | ) | (2.96 | ) | (2.25 | ) | (2.11 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | (1.56 | ) | (2.91 | ) | (2.71 | ) | (2.96 | ) | (2.25 | ) | (2.11 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 157.83 | $ | 152.32 | $ | 142.88 | $ | 120.58 | $ | 122.54 | $ | 110.41 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | 4.62 | %(c) | 8.66 | % | 20.97 | % | 0.87 | % | 13.09 | % | 18.80 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.20 | %(d) | 0.20 | % | 0.20 | % | 0.20 | % | 0.20 | % | 0.20 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income | 1.96 | %(d) | 1.91 | % | 1.96 | % | 1.91 | % | 1.96 | % | 2.13 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 923,329 | $ | 944,382 | $ | 814,433 | $ | 608,927 | $ | 667,832 | $ | 469,247 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Portfolio turnover rate(e) | 22 | %(c) | 46 | % | 45 | % | 39 | % | 27 | % | 35 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(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.
58 | 2 0 1 8 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 MorningstarLarge-Cap Growth ETF | ||||||||||||||||||||||||
Six Months Ended 10/31/18 (unaudited) | Year Ended 04/30/18 | Year Ended 04/30/17 | Year Ended 04/30/16 | Year Ended 04/30/15 | Year Ended 04/30/14 | |||||||||||||||||||
| ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 165.01 | $ | 136.27 | $ | 116.36 | $ | 118.09 | $ | 100.37 | $ | 83.14 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income(a) | 0.59 | 1.48 | 1.12 | 1.13 | 1.11 | 0.93 | ||||||||||||||||||
Net realized and unrealized gain (loss)(b) | 4.30 | 28.70 | 19.88 | (1.64 | ) | 17.67 | 17.26 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net increase (decrease) from investment operations | 4.89 | 30.18 | 21.00 | (0.51 | ) | 18.78 | 18.19 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Distributions | ||||||||||||||||||||||||
From net investment income | (0.63 | ) | (1.44 | ) | (1.09 | ) | (1.22 | ) | (1.06 | ) | (0.96 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | (0.63 | ) | (1.44 | ) | (1.09 | ) | (1.22 | ) | (1.06 | ) | (0.96 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 169.27 | $ | 165.01 | $ | 136.27 | $ | 116.36 | $ | 118.09 | $ | 100.37 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | 2.94 | %(c) | 22.26 | % | 18.15 | % | (0.44 | )% | 18.77 | % | 21.98 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.25 | %(d) | 0.25 | % | 0.25 | % | 0.25 | % | 0.25 | % | 0.25 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income | 0.66 | %(d) | 0.97 | % | 0.91 | % | 0.96 | % | 0.99 | % | 1.00 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 981,795 | $ | 932,317 | $ | 729,026 | $ | 791,246 | $ | 726,248 | $ | 521,926 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Portfolio turnover rate(e) | 13 | %(c) | 48 | % | 31 | % | 22 | % | 21 | % | 23 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(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 | 59 |
Financial Highlights(continued)
(For a share outstanding throughout each period)
iShares MorningstarLarge-Cap Value ETF | ||||||||||||||||||||||||
Six Months Ended 10/31/18 (unaudited) | Year Ended 04/30/18 | Year Ended 04/30/17 | Year Ended 04/30/16 | Year Ended 04/30/15 | Year Ended 04/30/14 | |||||||||||||||||||
| ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 101.09 | $ | 95.07 | $ | 85.03 | $ | 86.04 | $ | 82.96 | $ | 72.21 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income(a) | 1.44 | 2.55 | 2.53 | 2.56 | 2.21 | 2.05 | ||||||||||||||||||
Net realized and unrealized gain (loss)(b) | 2.06 | 6.02 | 10.03 | (1.03 | ) | 3.07 | 10.75 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net increase from investment operations | 3.50 | 8.57 | 12.56 | 1.53 | 5.28 | 12.80 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Distributions | ||||||||||||||||||||||||
From net investment income | (1.38 | ) | (2.55 | ) | (2.52 | ) | (2.54 | ) | (2.20 | ) | (2.05 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | (1.38 | ) | (2.55 | ) | (2.52 | ) | (2.54 | ) | (2.20 | ) | (2.05 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 103.21 | $ | 101.09 | $ | 95.07 | $ | 85.03 | $ | 86.04 | $ | 82.96 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | 3.46 | %(c) | 9.07 | % | 14.95 | % | 1.92 | % | 6.42 | % | 17.98 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.25 | %(d) | 0.25 | % | 0.25 | % | 0.25 | % | 0.25 | % | 0.25 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income | 2.72 | %(d) | 2.54 | % | 2.78 | % | 3.10 | % | 2.60 | % | 2.67 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 387,037 | $ | 374,024 | $ | 380,268 | $ | 289,101 | $ | 305,434 | $ | 298,657 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Portfolio turnover rate(e) | 11 | %(c) | 24 | % | 31 | % | 27 | % | 14 | % | 26 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(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 8 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 MorningstarMid-Cap ETF | ||||||||||||||||||||||||
Six Months Ended 10/31/18 (unaudited) | Year Ended 04/30/18 | Year Ended 04/30/17 | Year Ended 04/30/16 | Year Ended 04/30/15 | Year Ended 04/30/14 | |||||||||||||||||||
| ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 180.21 | $ | 168.00 | $ | 145.96 | $ | 151.49 | $ | 133.53 | $ | 111.77 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income(a) | 1.79 | 2.48 | 2.01 | 2.30 | 2.01 | 1.55 | ||||||||||||||||||
Net realized and unrealized gain (loss)(b) | (5.30 | ) | 12.13 | 22.68 | (5.42 | ) | 18.03 | 21.81 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net increase (decrease) from investment operations | (3.51 | ) | 14.61 | 24.69 | (3.12 | ) | 20.04 | 23.36 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Distributions | ||||||||||||||||||||||||
From net investment income | (1.69 | ) | (2.40 | ) | (2.65 | ) | (2.41 | ) | (2.08 | ) | (1.60 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | (1.69 | ) | (2.40 | ) | (2.65 | ) | (2.41 | ) | (2.08 | ) | (1.60 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 175.01 | $ | 180.21 | $ | 168.00 | $ | 145.96 | $ | 151.49 | $ | 133.53 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | (2.01 | )%(c) | 8.73 | % | 17.06 | % | (2.03 | )% | 15.09 | % | 21.04 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.25 | %(d) | 0.25 | % | 0.25 | % | 0.25 | % | 0.25 | % | 0.25 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income | 1.90 | %(d) | 1.40 | % | 1.28 | % | 1.59 | % | 1.39 | % | 1.26 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 691,284 | $ | 747,858 | $ | 747,607 | $ | 540,062 | $ | 515,075 | $ | 280,415 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Portfolio turnover rate(e) | 35 | %(c) | 50 | % | 56 | % | 51 | % | 55 | % | 50 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(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 | 61 |
Financial Highlights(continued)
(For a share outstanding throughout each period)
iShares MorningstarMid-Cap Growth ETF | ||||||||||||||||||||||||
Six Months Ended 10/31/18 (unaudited) | Year Ended 04/30/18 | Year Ended 04/30/17 | Year Ended 04/30/16 | Year Ended 04/30/15 | Year Ended 04/30/14 | |||||||||||||||||||
| ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 207.31 | $ | 177.31 | $ | 153.60 | $ | 165.11 | $ | 142.18 | $ | 119.51 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income(a) | 0.35 | 0.75 | 0.84 | 0.60 | 0.60 | 0.55 | ||||||||||||||||||
Net realized and unrealized gain (loss)(b) | 2.07 | 30.14 | 23.76 | (11.46 | ) | 23.19 | 22.75 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net increase (decrease) from investment operations | 2.42 | 30.89 | 24.60 | (10.86 | ) | 23.79 | 23.30 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Distributions | ||||||||||||||||||||||||
From net investment income | (0.33 | ) | (0.89 | ) | (0.89 | ) | (0.65 | ) | (0.86 | ) | (0.63 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | (0.33 | ) | (0.89 | ) | (0.89 | ) | (0.65 | ) | (0.86 | ) | (0.63 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 209.40 | $ | 207.31 | $ | 177.31 | $ | 153.60 | $ | 165.11 | $ | 142.18 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | 1.15 | %(c)(d) | 17.46 | % | 16.06 | % | (6.58 | )% | 16.78 | % | 19.52 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.30 | %(e) | 0.30 | % | 0.30 | % | 0.30 | % | 0.30 | % | 0.30 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income | 0.31 | %(e) | 0.38 | % | 0.52 | % | 0.39 | % | 0.39 | % | 0.41 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 303,624 | $ | 259,139 | $ | 212,773 | $ | 207,355 | $ | 231,160 | $ | 199,052 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Portfolio turnover rate(f) | 18 | %(c) | 43 | % | 47 | % | 44 | % | 50 | % | 41 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(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) | Includes proceeds received from a class action litigation, which impacted the Fund’s total return. Not including these proceeds, the Fund’s total return would have been 1.12% for the six months ended October 31, 2018. |
(e) | Annualized. |
(f) | Portfolio turnover rate excludesin-kind transactions. |
See notes to financial statements.
62 | 2 0 1 8 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 MorningstarMid-Cap Value ETF | ||||||||||||||||||||||||
Six Months Ended 10/31/18 (unaudited) | Year Ended 04/30/18 | Year Ended 04/30/17 | Year Ended 04/30/16 | Year Ended 04/30/15 | Year Ended 04/30/14 | |||||||||||||||||||
| ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 157.66 | $ | 147.89 | $ | 125.61 | $ | 125.84 | $ | 118.75 | $ | 96.24 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income(a) | 1.93 | 3.26 | 2.87 | 2.86 | 2.38 | 2.28 | ||||||||||||||||||
Net realized and unrealized gain (loss)(b) | (5.93 | ) | 9.65 | 22.21 | (0.12 | ) | 7.22 | 22.46 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net increase (decrease) from investment operations | (4.00 | ) | 12.91 | 25.08 | 2.74 | 9.60 | 24.74 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Distributions | ||||||||||||||||||||||||
From net investment income | (1.74 | ) | (3.14 | ) | (2.80 | ) | (2.97 | ) | (2.51 | ) | (2.23 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | (1.74 | ) | (3.14 | ) | (2.80 | ) | (2.97 | ) | (2.51 | ) | (2.23 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 151.92 | $ | 157.66 | $ | 147.89 | $ | 125.61 | $ | 125.84 | $ | 118.75 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | (2.59 | )%(c) | 8.81 | % | 20.15 | % | 2.29 | % | 8.13 | % | 25.94 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.30 | %(d) | 0.30 | % | 0.30 | % | 0.30 | % | 0.30 | % | 0.30 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income | 2.39 | %(d) | 2.13 | % | 2.06 | % | 2.37 | % | 1.93 | % | 2.11 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 432,961 | $ | 417,801 | $ | 384,524 | $ | 194,702 | $ | 226,507 | $ | 189,994 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Portfolio turnover rate(e) | 19 | %(c) | 45 | % | 38 | % | 38 | % | 33 | % | 39 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(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 | 63 |
Financial Highlights(continued)
(For a share outstanding throughout each period)
iShares MorningstarSmall-Cap ETF | ||||||||||||||||||||||||
Six Months Ended 10/31/18 (unaudited) | Year Ended 04/30/18 | Year Ended 04/30/17 | Year Ended 04/30/16 | Year Ended 04/30/15 | Year Ended 04/30/14 | |||||||||||||||||||
| ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 170.30 | $ | 161.10 | $ | 134.45 | $ | 140.33 | $ | 130.00 | $ | 107.69 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income(a) | 1.23 | 1.96 | 1.67 | 2.05 | 1.61 | 1.21 | ||||||||||||||||||
Net realized and unrealized gain (loss)(b) | (5.91 | ) | 9.40 | 27.48 | (5.99 | ) | 10.40 | 22.28 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net increase (decrease) from investment operations | (4.68 | ) | 11.36 | 29.15 | (3.94 | ) | 12.01 | 23.49 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Distributions | ||||||||||||||||||||||||
From net investment income | (1.26 | ) | (2.16 | ) | (2.50 | ) | (1.94 | ) | (1.68 | ) | (1.18 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | (1.26 | ) | (2.16 | ) | (2.50 | ) | (1.94 | ) | (1.68 | ) | (1.18 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 164.36 | $ | 170.30 | $ | 161.10 | $ | 134.45 | $ | 140.33 | $ | 130.00 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | (2.82 | )%(c) | 7.09 | % | 21.86 | % | (2.78 | )% | 9.27 | % | 21.89 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.25 | %(d) | 0.25 | % | 0.25 | % | 0.25 | % | 0.25 | % | 0.25 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income | 1.36 | %(d) | 1.18 | % | 1.13 | % | 1.53 | % | 1.19 | % | 0.99 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 230,103 | $ | 246,938 | $ | 241,644 | $ | 194,947 | $ | 224,533 | $ | 214,500 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Portfolio turnover rate(e) | 40 | %(c) | 56 | % | 66 | % | 65 | % | 61 | % | 68 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(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.
64 | 2 0 1 8 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 MorningstarSmall-Cap Growth ETF | ||||||||||||||||||||||||
Six Months Ended 10/31/18 (unaudited) | Year Ended 04/30/18 | Year Ended 04/30/17 | Year Ended 04/30/16 | Year Ended 04/30/15 | Year Ended 04/30/14 | |||||||||||||||||||
| ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 183.04 | $ | 154.83 | $ | 130.57 | $ | 139.32 | $ | 125.88 | $ | 103.68 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income(a) | 0.15 | 0.72 | 0.86 | 0.83 | 0.77 | 0.67 | ||||||||||||||||||
Net realized and unrealized gain (loss)(b) | 2.88 | 28.26 | 25.25 | (8.79 | ) | 13.49 | 22.29 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net increase (decrease) from investment operations | 3.03 | 28.98 | 26.11 | (7.96 | ) | 14.26 | 22.96 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Distributions | ||||||||||||||||||||||||
From net investment income | (0.35 | ) | (0.77 | ) | (1.85 | ) | (0.79 | ) | (0.82 | ) | (0.76 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions | (0.35 | ) | (0.77 | ) | (1.85 | ) | (0.79 | ) | (0.82 | ) | (0.76 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 185.72 | $ | 183.04 | $ | 154.83 | $ | 130.57 | $ | 139.32 | $ | 125.88 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | 1.64 | %(c)(d) | 18.75 | % | 20.10 | % | (5.73 | )% | 11.35 | % | 22.16 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.30 | %(e) | 0.30 | % | 0.30 | % | 0.30 | % | 0.30 | % | 0.30 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income | 0.15 | %(e) | 0.42 | % | 0.60 | % | 0.62 | % | 0.58 | % | 0.55 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 195,010 | $ | 164,737 | $ | 116,125 | $ | 110,984 | $ | 118,423 | $ | 132,177 | ||||||||||||
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|
|
|
|
|
|
|
|
|
| |||||||||||||
Portfolio turnover rate(f) | 28 | %(c) | 51 | % | 63 | % | 59 | % | 61 | % | 62 | % | ||||||||||||
|
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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) | Includes proceeds received from a class action litigation, which impacted the Fund’s total return. Not including these proceeds, the Fund’s total return would have been 1.63% for the six months ended October 31, 2018. |
(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 MorningstarSmall-Cap Value ETF | ||||||||||||||||||||||||
Six Months Ended 10/31/18 (unaudited) | Year Ended 04/30/18 | Year Ended 04/30/17 | Year Ended 04/30/16 | Year Ended 04/30/15 | Year Ended 04/30/14 | |||||||||||||||||||
| ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 144.25 | $ | 143.75 | $ | 122.26 | $ | 128.47 | $ | 122.17 | $ | 103.19 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income(a) | 1.44 | 2.58 | 3.08 | 3.04 | 3.11 | 2.10 | ||||||||||||||||||
Net realized and unrealized gain (loss)(b) | (4.05 | ) | 0.61 | 21.83 | (6.28 | ) | 6.40 | 19.15 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net increase (decrease) from investment operations | (2.61 | ) | 3.19 | 24.91 | (3.24 | ) | 9.51 | 21.25 | ||||||||||||||||
|
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|
|
|
|
|
|
|
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| |||||||||||||
Distributions | ||||||||||||||||||||||||
From net investment income | (1.64 | ) | (2.69 | ) | (3.42 | ) | (2.97 | ) | (3.21 | ) | (2.27 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
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| |||||||||||||
Total distributions | (1.64 | ) | (2.69 | ) | (3.42 | ) | (2.97 | ) | (3.21 | ) | (2.27 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 140.00 | $ | 144.25 | $ | 143.75 | $ | 122.26 | $ | 128.47 | $ | 122.17 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Return | ||||||||||||||||||||||||
Based on net asset value | (1.90 | )%(c) | 2.23 | % | 20.58 | % | (2.42 | )% | 7.83 | % | 20.78 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||
Total expenses | 0.30 | %(d) | 0.30 | % | 0.30 | % | 0.30 | % | 0.30 | % | 0.30 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net investment income | 1.87 | %(d) | 1.78 | % | 2.29 | % | 2.56 | % | 2.47 | % | 1.85 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (000) | $ | 392,000 | $ | 447,161 | $ | 481,551 | $ | 379,000 | $ | 430,379 | $ | 366,517 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Portfolio turnover rate(e) | 27 | %(c) | 54 | % | 48 | % | 51 | % | 40 | % | 52 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(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.
66 | 2 0 1 8 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 | |||
MorningstarLarge-Cap | Diversified | |||
MorningstarLarge-Cap Growth | Diversified | |||
MorningstarLarge-Cap Value | Diversified | |||
MorningstarMid-Cap | Diversified | |||
MorningstarMid-Cap Growth | Diversified | |||
MorningstarMid-Cap Value | Diversified | |||
MorningstarSmall-Cap | Diversified | |||
MorningstarSmall-Cap Growth | Diversified | |||
MorningstarSmall-Cap Value | 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.
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.
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. |
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 | 67 |
Notes to Financial Statements(unaudited) (continued)
• | 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 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 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 October 31, 2018, any securities on loan were collateralized by cash and/or U.S. government obligations. Cash collateral received was invested in money market funds managed by 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 October 31, 2018 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
68 | 2 0 1 8 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)
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 October 31, 2018:
| ||||||||||||||||
iShares ETF and Counterparty | | Market Value of Securities on Loan |
| | Cash Collateral Received | (a) | | Non-Cash Collateral Received |
| Net Amount | ||||||
| ||||||||||||||||
MorningstarLarge-Cap | ||||||||||||||||
Citigroup Global Markets Inc. | $ | 3,555,022 | $ | 3,555,022 | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
| |||||||||
MorningstarLarge-Cap Growth | ||||||||||||||||
Barclays Bank PLC | $ | 618,116 | $ | 618,116 | $ | — | $ | — | ||||||||
Citigroup Global Markets Inc. | 10,142,096 | 10,142,096 | — | — | ||||||||||||
Merrill Lynch, Pierce, Fenner & Smith | 1,701,703 | 1,701,703 | — | — | ||||||||||||
State Street Bank & Trust Company | 7,688 | 7,688 | — | — | ||||||||||||
UBS Securities LLC | 106,220 | 106,220 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 12,575,823 | $ | 12,575,823 | $ | — | $ | — | |||||||||
|
|
|
|
|
|
|
| |||||||||
MorningstarMid-Cap | ||||||||||||||||
Barclays Bank PLC | $ | 1,982,711 | $ | 1,982,711 | $ | — | $ | — | ||||||||
Citigroup Global Markets Inc. | 3,833,409 | 3,833,409 | — | — | ||||||||||||
Credit Suisse Securities (USA) LLC | 3,030,476 | 3,030,476 | — | — | ||||||||||||
Deutsche Bank Securities Inc. | 3,176 | 3,176 | — | — | ||||||||||||
Goldman Sachs & Co. | 2,428,283 | 2,428,283 | — | — | ||||||||||||
HSBC Bank PLC | 37,593 | 37,593 | — | — | ||||||||||||
JPMorgan Securities LLC | 148,916 | 148,916 | — | — | ||||||||||||
Merrill Lynch, Pierce, Fenner & Smith | 4,970,190 | 4,970,190 | — | — | ||||||||||||
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending) | 4,456,524 | 4,456,524 | — | — | ||||||||||||
State Street Bank & Trust Company | 165,388 | 165,388 | — | — | ||||||||||||
TD Prime Services LLC | 265,266 | 265,266 | — | — | ||||||||||||
UBS AG | 1,990,706 | 1,990,706 | — | — | ||||||||||||
Wells Fargo Bank, National Association | 451,941 | 451,941 | — | — | ||||||||||||
Wells Fargo Securities LLC | 1,430,832 | 1,430,832 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 25,195,411 | $ | 25,195,411 | $ | — | $ | — | |||||||||
|
|
|
|
|
|
|
| |||||||||
MorningstarMid-Cap Growth | ||||||||||||||||
Barclays Bank PLC | $ | 3,104,388 | $ | 3,104,388 | $ | — | $ | — | ||||||||
BMO Capital Markets | 20,880 | 20,880 | — | — | ||||||||||||
BNP Paribas Securities Corp. | 20,028 | 20,028 | — | — | ||||||||||||
Citigroup Global Markets Inc. | 3,774,031 | 3,774,031 | — | — | ||||||||||||
Deutsche Bank Securities Inc. | 622,747 | 622,747 | — | — | ||||||||||||
Goldman Sachs & Co. | 1,583,772 | 1,583,772 | — | — | ||||||||||||
HSBC Bank PLC | 3,480,960 | 3,480,960 | — | — | ||||||||||||
JPMorgan Securities LLC | 4,061,081 | 4,061,081 | — | — | ||||||||||||
National Financial Services LLC | 287,949 | 287,949 | — | — | ||||||||||||
TD Prime Services LLC | 2,453,690 | 2,453,690 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 19,409,526 | $ | 19,409,526 | $ | — | $ | — | |||||||||
|
|
|
|
|
|
|
| |||||||||
MorningstarMid-Cap Value | ||||||||||||||||
Barclays Bank PLC | $ | 848,325 | $ | 848,325 | $ | — | $ | — | ||||||||
Citigroup Global Markets Inc. | 172,843 | 172,843 | — | — | ||||||||||||
Credit Suisse Securities (USA) LLC | 221,338 | 221,338 | — | — | ||||||||||||
Goldman Sachs & Co. | 2,308,758 | 2,308,758 | — | — | ||||||||||||
Merrill Lynch, Pierce, Fenner & Smith | 1,196,230 | 1,196,230 | — | — | ||||||||||||
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending) | 7,005 | 7,005 | — | — | ||||||||||||
State Street Bank & Trust Company | 9,104 | 9,104 | — | — | ||||||||||||
TD Prime Services LLC | 1,563,270 | 1,563,270 | — | — | ||||||||||||
UBS Securities LLC | 1,342,885 | 1,342,885 | — | — | ||||||||||||
Wells Fargo Bank, National Association | 1,901,031 | 1,901,031 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 9,570,789 | $ | 9,570,789 | $ | — | $ | — | |||||||||
|
|
|
|
|
|
|
|
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)
| ||||||||||||||||
iShares ETF and Counterparty | | Market Value of Securities on Loan | | | Cash Collateral Received | (a) | | Non-Cash Collateral Received | | Net Amount | ||||||
| ||||||||||||||||
MorningstarSmall-Cap | ||||||||||||||||
Barclays Bank PLC | $ | 1,085,526 | $ | 1,085,526 | $ | — | $ | — | ||||||||
Barclays Capital Inc. | 50,403 | 50,403 | — | — | ||||||||||||
BNP Paribas New York Branch | 18,398 | 18,398 | — | — | ||||||||||||
BNP Paribas Prime Brokerage International Ltd. | 6,980 | 6,980 | — | — | ||||||||||||
Citigroup Global Markets Inc. | 1,712,699 | 1,712,699 | — | — | ||||||||||||
Credit Suisse Securities (USA) LLC | 1,807,371 | 1,807,371 | — | — | ||||||||||||
Deutsche Bank Securities Inc. | 1,407,538 | 1,407,538 | — | — | ||||||||||||
Goldman Sachs & Co. | 5,189,189 | 5,189,189 | — | — | ||||||||||||
HSBC Bank PLC | 110,732 | 110,732 | — | — | ||||||||||||
ING Financial Markets LLC | 130,366 | 130,366 | — | — | ||||||||||||
JPMorgan Securities LLC | 5,095,254 | 5,095,254 | — | — | ||||||||||||
Merrill Lynch, Pierce, Fenner & Smith | 1,793,553 | 1,793,553 | — | — | ||||||||||||
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending) | 1,832,522 | 1,832,522 | — | — | ||||||||||||
National Financial Services LLC | 235,954 | 235,954 | — | — | ||||||||||||
Scotia Capital (USA) Inc. | 65,786 | 65,786 | — | — | ||||||||||||
State Street Bank & Trust Company | 344,269 | 344,269 | — | — | ||||||||||||
TD Prime Services LLC | 66,812 | 66,812 | — | — | ||||||||||||
UBS AG | 17,875 | 17,875 | — | — | ||||||||||||
Wells Fargo Bank, National Association | 196,712 | 196,712 | — | — | ||||||||||||
Wells Fargo Securities LLC | 1,274,704 | 1,274,704 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 22,442,643 | $ | 22,442,643 | $ | — | $ | — | |||||||||
|
|
|
|
|
|
|
| |||||||||
MorningstarSmall-Cap Growth | ||||||||||||||||
Barclays Bank PLC | $ | 1,790,174 | $ | 1,790,174 | $ | — | $ | — | ||||||||
Barclays Capital Inc. | 146,062 | 146,062 | — | — | ||||||||||||
BNP Paribas New York Branch | 1,509,153 | 1,509,153 | — | — | ||||||||||||
BNP Paribas Prime Brokerage International Ltd. | 1,458,473 | 1,458,473 | — | — | ||||||||||||
Citigroup Global Markets Inc. | 7,068,379 | 7,068,379 | — | — | ||||||||||||
Credit Suisse Securities (USA) LLC | 1,058,602 | 1,058,602 | — | — | ||||||||||||
Deutsche Bank Securities Inc. | 2,526,760 | 2,526,760 | — | — | ||||||||||||
Goldman Sachs & Co. | 3,096,002 | 3,096,002 | — | — | ||||||||||||
HSBC Bank PLC | 1,926,289 | 1,926,289 | — | — | ||||||||||||
Jefferies LLC | 2,661 | 2,661 | — | — | ||||||||||||
JPMorgan Securities LLC | 2,978,388 | 2,978,388 | — | — | ||||||||||||
Merrill Lynch, Pierce, Fenner & Smith | 1,840,924 | 1,840,924 | — | — | ||||||||||||
Mizuho Securities USA Inc. | 42,875 | 42,875 | — | — | ||||||||||||
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending) | 5,934,555 | 5,934,555 | — | — | ||||||||||||
National Financial Services LLC | 1,156,852 | 1,156,852 | — | — | ||||||||||||
RBC Capital Markets LLC | 704,630 | 704,630 | — | — | ||||||||||||
Scotia Capital (USA) Inc. | 183,198 | 183,198 | — | — | ||||||||||||
SG Americas Securities LLC | 671,660 | 671,660 | — | — | ||||||||||||
State Street Bank & Trust Company | 711,767 | 711,767 | — | — | ||||||||||||
UBS AG | 323,649 | 323,649 | — | — | ||||||||||||
UBS Securities LLC | 939,730 | 939,730 | — | — | ||||||||||||
Wells Fargo Bank, National Association | 1,175,966 | 1,175,966 | — | — | ||||||||||||
Wells Fargo Securities LLC | 756,512 | 756,512 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 38,003,261 | $ | 38,003,261 | $ | — | $ | — | |||||||||
|
|
|
|
|
|
|
|
70 | 2 0 1 8 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements(unaudited) (continued)
| ||||||||||||||||
iShares ETF and Counterparty | | Market Value of Securities on Loan | | | Cash Collateral Received | (a) | | Non-Cash Collateral Received | | Net Amount | ||||||
| ||||||||||||||||
MorningstarSmall-Cap Value | ||||||||||||||||
Barclays Bank PLC | $ | 828,286 | $ | 828,286 | $ | — | $ | — | ||||||||
BNP Paribas Prime Brokerage International Ltd. | 112,560 | 112,560 | — | — | ||||||||||||
BNP Paribas Securities Corp. | 3,165 | 3,165 | — | — | ||||||||||||
Citigroup Global Markets Inc. | 8,485,426 | 8,485,426 | — | — | ||||||||||||
Credit Suisse Securities (USA) LLC | 154,151 | 154,151 | — | — | ||||||||||||
Deutsche Bank Securities Inc. | 944,011 | 944,011 | — | — | ||||||||||||
Goldman Sachs & Co. | 6,498,015 | 6,498,015 | — | — | ||||||||||||
JPMorgan Securities LLC | 4,631,913 | 4,631,913 | — | — | ||||||||||||
Merrill Lynch, Pierce, Fenner & Smith | 15,383 | 15,383 | — | — | ||||||||||||
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending) | 4,252,168 | 4,252,168 | — | — | ||||||||||||
National Financial Services LLC | 99,988 | 99,988 | — | — | ||||||||||||
RBC Capital Markets LLC | 854,923 | 854,923 | — | — | ||||||||||||
Scotia Capital (USA) Inc. | 470,707 | 470,707 | — | — | ||||||||||||
State Street Bank & Trust Company | 1,012,545 | 1,012,545 | — | — | ||||||||||||
UBS Securities LLC | 87,250 | 87,250 | — | — | ||||||||||||
Wells Fargo Bank, National Association | 1,537,569 | 1,537,569 | — | — | ||||||||||||
Wells Fargo Securities LLC | 308,580 | 308,580 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 30,296,640 | $ | 30,296,640 | $ | — | $ | — | |||||||||
|
|
|
|
|
|
|
|
(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).
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 | |||
MorningstarLarge-Cap | 0.20 | % | ||
MorningstarLarge-Cap Growth | 0.25 | |||
MorningstarLarge-Cap Value | 0.25 | |||
MorningstarMid-Cap | 0.25 | |||
MorningstarMid-Cap Growth | 0.30 | |||
MorningstarMid-Cap Value | 0.30 | |||
MorningstarSmall-Cap | 0.25 | |||
MorningstarSmall-Cap Growth | 0.30 | |||
MorningstarSmall-Cap Value | 0.30 |
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.
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)
Pursuant to a securities lending agreement, each Fund retains 71.5% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 65% of the total of securities lending income plus the collateral investment fees.
In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in a given calendar year exceeds the aggregate securities lending income generated across the iShares ETF Complex in the calendar year 2013, each Fund, pursuant to a securities lending agreement, will retain for the remainder of that calendar year 75% of securities lending income and the amount retained can never be less than 65% of the total of securities lending income plus the collateral investment fees.
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 October 31, 2018, the Funds paid BTC the following amounts for securities lending agent services:
iShares ETF | Fees Paid to BTC | |||
MorningstarLarge-Cap | $ | 1,393 | ||
MorningstarLarge-Cap Growth | 50,968 | |||
MorningstarLarge-Cap Value | 332 | |||
MorningstarMid-Cap | 17,310 | |||
MorningstarMid-Cap Growth | 23,316 | |||
MorningstarMid-Cap Value | 7,039 | |||
MorningstarSmall-Cap | 30,664 | |||
MorningstarSmall-Cap Growth | 38,546 | |||
MorningstarSmall-Cap Value | 44,982 |
Officers and Trustees:Certain officers and/or trustees of the Trust are officers and/or trustees of BlackRock or its affiliates.
Other Transactions:The PNC Financial Services Group, Inc. is the largest stockholder and an affiliate of BlackRock for 1940 Act purposes.
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 October 31, 2018, transactions executed by the Funds pursuant to Rule17a-7 under the 1940 Act were as follows:
iShares ETF | Purchases | Sales | ||||||
MorningstarLarge-Cap | $ | 104,445,174 | $ | 119,645,832 | ||||
MorningstarLarge-Cap Growth | 54,450,255 | 62,554,464 | ||||||
MorningstarLarge-Cap Value | 29,078,524 | 23,475,779 | ||||||
MorningstarMid-Cap | 121,042,240 | 140,811,059 | ||||||
MorningstarMid-Cap Growth | 28,397,276 | 34,596,440 | ||||||
MorningstarMid-Cap Value | 51,055,592 | 45,839,637 | ||||||
MorningstarSmall-Cap | 63,995,686 | 44,769,215 | ||||||
MorningstarSmall-Cap Growth | 26,706,118 | 28,887,361 | ||||||
MorningstarSmall-Cap Value | 58,982,765 | 51,239,544 |
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 October 31, 2018, purchases and sales of investments, excludingin-kind transactions and short-term investments, were as follows:
iShares ETF | Purchases | Sales | ||||||
MorningstarLarge-Cap | $ | 221,592,386 | $ | 215,301,322 | ||||
MorningstarLarge-Cap Growth | 125,448,215 | 125,442,855 | ||||||
MorningstarLarge-Cap Value | 43,408,065 | 43,407,930 | ||||||
MorningstarMid-Cap | 269,243,380 | 263,490,679 | ||||||
MorningstarMid-Cap Growth | 50,868,950 | 50,222,652 | ||||||
MorningstarMid-Cap Value | 82,839,727 | 82,187,680 | ||||||
MorningstarSmall-Cap | 103,015,343 | 101,023,933 | ||||||
MorningstarSmall-Cap Growth | 56,795,285 | 55,339,486 | ||||||
MorningstarSmall-Cap Value | 119,008,064 | 119,094,811 |
72 | 2 0 1 8 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 October 31, 2018,in-kind transactions were as follows:
iShares ETF
| In-kind Purchases | In-kind Sales | ||||||
MorningstarLarge-Cap | $ | 32,622,493 | $ | 88,066,993 | ||||
MorningstarLarge-Cap Growth | 124,834,625 | 98,353,115 | ||||||
MorningstarLarge-Cap Value | 31,004,749 | 25,781,100 | ||||||
MorningstarMid-Cap | 149,041,673 | 186,590,643 | ||||||
MorningstarMid-Cap Growth | 89,151,465 | 45,111,220 | ||||||
MorningstarMid-Cap Value | 88,575,097 | 56,250,073 | ||||||
MorningstarSmall-Cap | 62,136,042 | 71,561,297 | ||||||
MorningstarSmall-Cap Growth | 49,766,471 | 20,284,082 | ||||||
MorningstarSmall-Cap Value | 7,594,917 | 51,180,845 |
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 October 31, 2018, 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 April 30, 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 | |||||||||
MorningstarLarge-Cap | $ | 20,601,346 | $ | — | $ | 20,601,346 | ||||||
MorningstarLarge-Cap Growth | — | 982,680 | 982,680 | |||||||||
MorningstarLarge-Cap Value | — | 5,511,604 | 5,511,604 | |||||||||
MorningstarMid-Cap | 27,440,863 | — | 27,440,863 | |||||||||
MorningstarMid-Cap Growth | — | 3,999,375 | 3,999,375 | |||||||||
MorningstarMid-Cap Value | 13,655,020 | — | 13,655,020 | |||||||||
MorningstarSmall-Cap | 14,006,741 | — | 14,006,741 | |||||||||
MorningstarSmall-Cap Growth | 2,472,113 | — | 2,472,113 | |||||||||
MorningstarSmall-Cap Value | 24,643,135 | — | 24,643,135 |
(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 October 31, 2018, 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) | ||||||||||||
MorningstarLarge-Cap | $ | 808,864,977 | $ | 154,342,718 | $ | (37,170,764 | ) | $ | 117,171,954 | |||||||
MorningstarLarge-Cap Growth | 709,557,925 | 299,808,180 | (15,193,874 | ) | 284,614,306 | |||||||||||
MorningstarLarge-Cap Value | 345,427,562 | 59,633,219 | (17,909,378 | ) | 41,723,841 | |||||||||||
MorningstarMid-Cap | 683,878,262 | 77,976,599 | (45,402,964 | ) | 32,573,635 | |||||||||||
MorningstarMid-Cap Growth | 270,188,760 | 66,456,219 | (13,886,185 | ) | 52,570,034 | |||||||||||
MorningstarMid-Cap Value | 434,093,026 | 45,140,786 | (36,828,615 | ) | 8,312,171 | |||||||||||
MorningstarSmall-Cap | 248,925,860 | 25,258,599 | (21,668,033 | ) | 3,590,566 | |||||||||||
MorningstarSmall-Cap Growth | 213,712,428 | 34,738,558 | (15,689,409 | ) | 19,049,149 | |||||||||||
MorningstarSmall-Cap Value | 441,305,324 | 37,072,843 | (56,149,905 | ) | (19,077,062 | ) |
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
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)
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.
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 10/31/18 | Year Ended 04/30/18 | |||||||||||||||
iShares ETF | Shares | Amount | Shares | Amount | ||||||||||||
| ||||||||||||||||
MorningstarLarge-Cap | ||||||||||||||||
Shares sold | 200,000 | $ | 32,755,184 | 2,650,000 | $ | 406,573,237 | ||||||||||
Shares redeemed | (550,000) | (88,698,505) | (2,150,000) | (331,811,593) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | (350,000) | $ | (55,943,321) | 500,000 | $ | 74,761,644 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
MorningstarLarge-Cap Growth | ||||||||||||||||
Shares sold | 700,000 | $ | 125,004,441 | 400,000 | $ | 61,288,903 | ||||||||||
Shares redeemed | (550,000) | (98,432,851) | (100,000) | (15,460,226) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase | 150,000 | $ | 26,571,590 | 300,000 | $ | 45,828,677 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
MorningstarLarge-Cap Value | ||||||||||||||||
Shares sold | 300,000 | $ | 31,089,543 | 300,000 | $ | 30,177,879 | ||||||||||
Shares redeemed | (250,000) | (26,114,986) | (600,000) | (59,668,172) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | 50,000 | $ | 4,974,557 | (300,000) | $ | (29,490,293) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
MorningstarMid-Cap | ||||||||||||||||
Shares sold | 800,000 | $ | 149,636,727 | 1,600,000 | $ | 284,851,591 | ||||||||||
Shares redeemed | (1,000,000) | (188,051,909) | (1,900,000) | (340,023,533) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net decrease | (200,000) | $ | (38,415,182) | (300,000) | $ | (55,171,942) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
MorningstarMid-Cap Growth | ||||||||||||||||
Shares sold | 400,000 | $ | 89,560,746 | 100,000 | $ | 19,775,703 | ||||||||||
Shares redeemed | (200,000) | (45,180,627) | (50,000) | (10,336,896) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase | 200,000 | $ | 44,380,119 | 50,000 | $ | 9,438,807 | ||||||||||
|
|
|
|
|
|
|
|
74 | 2 0 1 8 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 10/31/18 | Year Ended 04/30/18 | |||||||||||||||
iShares ETF | Shares | Amount | Shares | Amount | ||||||||||||
| ||||||||||||||||
MorningstarMid-Cap Value | ||||||||||||||||
Shares sold | 550,000 | $ | 89,087,429 | 800,000 | $ | 122,777,182 | ||||||||||
Shares redeemed | (350,000) | (56,539,760) | (750,000) | (115,342,311) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase | 200,000 | $ | 32,547,669 | 50,000 | $ | 7,434,871 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
MorningstarSmall-Cap | ||||||||||||||||
Shares sold | 350,000 | $ | 63,896,504 | 500,000 | $ | 83,216,849 | ||||||||||
Shares redeemed | (400,000) | (72,359,847) | (550,000) | (91,504,802) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net decrease | (50,000) | $ | (8,463,343) | (50,000) | $ | (8,287,953) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
MorningstarSmall-Cap Growth | ||||||||||||||||
Shares sold | 250,000 | $ | 50,338,702 | 450,000 | $ | 76,726,833 | ||||||||||
Shares redeemed | (100,000) | (20,338,783) | (300,000) | (50,577,096) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase | 150,000 | $ | 29,999,919 | 150,000 | $ | 26,149,737 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
MorningstarSmall-Cap Value | ||||||||||||||||
Shares sold | 50,000 | $ | 7,767,669 | 1,400,000 | $ | 205,200,031 | ||||||||||
Shares redeemed | (350,000) | (52,443,406) | (1,650,000) | (237,239,412) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net decrease | (300,000) | $ | (44,675,737) | (250,000) | $ | (32,039,381) | ||||||||||
|
|
|
|
|
|
|
|
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.
10. | 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.
Certain iShares funds (the “Impacted Funds”), along with thousands of other former shareholders of Tribune Company (“Tribune”), were named as defendants in one or more lawsuits (the “Litigation”) arising out of Tribune’s 2007 leveraged buyout transaction (“LBO”). The Litigation seeks to “claw back” from former Tribune shareholders, including the Impacted Funds, proceeds received in connection with the LBO. The iShares MorningstarMid-Cap Value ETF received proceeds of $404,668 in the LBO. The claims that were originally brought against the Impacted Funds were dismissed but are currently subject to appeals in multiple appellate courts. The outcome of these appeals could result in new claims being brought against the Impacted Funds and/or previously dismissed claims being revived and subject to continuing litigation. The Impacted Funds intend to vigorously defend the Litigation.
11. | 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 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 | 75 |
Notes to Financial Statements(unaudited) (continued)
Distributions for the year ended April 30, 2018 were classified as follows:
iShares ETF | Net Investment Income | |||
MorningstarLarge-Cap | $ | 17,784,765 | ||
MorningstarLarge-Cap Growth | 7,986,129 | |||
MorningstarLarge-Cap Value | 9,667,473 | |||
MorningstarMid-Cap | 10,424,753 | |||
MorningstarMid-Cap Growth | 1,105,496 | |||
MorningstarMid-Cap Value | 8,237,672 | |||
MorningstarSmall-Cap | 3,185,010 | |||
MorningstarSmall-Cap Growth | 605,018 | |||
MorningstarSmall-Cap Value | 8,746,485 |
Undistributed net investment income as of April 30, 2018 are as follows:
iShares ETF | Undistributed net investment income | |||
MorningstarLarge-Cap | $ | 834,231 | ||
MorningstarLarge-Cap Growth | 446,256 | |||
MorningstarLarge-Cap Value | 798,103 | |||
MorningstarMid-Cap | 427,176 | |||
MorningstarMid-Cap Growth | — | |||
MorningstarMid-Cap Value | 327,469 | |||
MorningstarSmall-Cap | — | |||
MorningstarSmall-Cap Growth | — | |||
MorningstarSmall-Cap Value | 112,834 |
12. | SUBSEQUENT EVENTS |
Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.
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Board Review and Approval of Investment Advisory Contract
iShares Trust
I. iShares MorningstarLarge-Cap ETF, iShares Morningstar Large-CapValue ETF, iShares MorningstarMid-Cap Growth ETF, iShares Morningstar Mid-CapValue ETF, iShares MorningstarSmall-Cap Growth ETF and iShares MorningstarSmall-Cap Value ETF
Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Trustees who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Trustees”), is required annually to consider and approve the Investment Advisory Contract between the Trust and BFA (the “Advisory Contract”) on behalf of the Funds. The Independent Trustees requested, and BFA provided, such information as the Independent Trustees, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. At a meeting on May 11, 2018, a committee composed of all of the Independent Trustees (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or their independent counsel, and requested certain additional information, which management agreed to provide. At these meetings, the 15(c) Committee reviewed and discussed information provided in response to the 15(c) Committee’s initial requests, and requested certain additional information, which management agreed to provide. At a meeting held on May 24, 2018, management presented additional information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its initial meeting. The Board, including the Independent Trustees, reviewed and discussed such information at length. The Independent Trustees requested from management certain additional information, which management agreed to provide. At a meeting held on June12-14, 2018, the Board, including the Independent Trustees, reviewed the additional information provided by management in response to these requests. After extensive discussions, the Board, including all of the Independent Trustees, approved the continuance of the Advisory Contract for the Funds, based on a review of qualitative and quantitative information provided by BFA. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Independent Trustees were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Funds, the Board, including the Independent Trustees, considered various factors, including: (i) the expenses and performance of each Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to each Fund and profits realized by BFA and its affiliates; (iv) economies of scale; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, no one of which was controlling, and conclusions that formed the basis for the Board, including the Independent Trustees, to approve the Advisory Contract are discussed below.
Expenses and Performance of the Funds:The Board reviewed statistical information prepared by Broadridge Financial Solutions Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, fees and expenses of another fund in which each Fund invests (if applicable), and waivers/reimbursements (if applicable) of each Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider), objectively selected by Broadridge as comprising such Fund’s applicable peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the applicable Peer Groups. The Board further noted that due to the limitations in providing comparable funds in the various Peer Groups, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Funds in all instances.
The Board also noted that the investment advisory fee rates and overall expenses (net of waivers and reimbursements) for the Funds were lower than the median of the investment advisory fee rates and overall expenses (net of waivers and reimbursements) of the funds in their respective Peer Group, excluding iShares funds.
In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as any particular Fund, Broadridge also provided, and the Board reviewed, a comparison of such Fund’s performance for theone-, three-, five-,ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2017, to that of relevant comparison fund(s) for the same periods.
The Board noted that each Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on each Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including additional detailed information as requested by the Board, was also considered. The Board noted that each Fund generally performed in line with its underlying index over the relevant periods.
Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of each Fund supported the Board’s approval of the continuance of the Advisory Contract for the coming year.
Nature, Extent and Quality of Services Provided by BFA:Based on management’s representations, including information about recent and proposed enhancements to the iShares business, including with respect to capital markets support and analysis, technology, portfolio management, product design and quality, compliance and risk management, global public policy and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to support the iShares funds and their shareholders. The Board also considered BFA’s compliance program and its compliance record with respect to the Funds. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for theday-to-day management of the Funds, as well as the resources available to them in managing the Funds. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June12-14, 2018 meeting and throughout the year, and matters related to BFA’s portfolio compliance policies and procedures.
Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided to the Funds under the Advisory Contract supported the Board’s approval of the continuance of the Advisory Contract for the coming year.
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Board Review and Approval of Investment Advisory Contract(continued)
Costs of Services Provided to Fund and Profits Realized by BFA and its Affiliates:The Board reviewed information about the profitability to BlackRock in managing the Funds, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and other sources of revenue and expense to BFA and its affiliates from the Funds’ operations for the last calendar year. The Board reviewed BlackRock’s profitability methodology for the iShares funds, noting that the 15(c) Committee and the Board had focused on the methodology and profitability presentation during their meetings. The Board further noted that it considered the supplemental information the 15(c) Committee requested, which BlackRock provided, regarding the methodology. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Funds. The Board also discussed BFA’s profit margin as reflected in the Funds’ profitability analysis and reviewed information regarding potential economies of scale (as discussed below).
Based on this review, the Board concluded that the profits realized by BFA and its affiliates under the Advisory Contract and from other relationships between the Funds and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors and other information considered.
Economies of Scale:The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Funds’ assets, noting that the issue of economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished, among other things, between fixed and variable costs, and showed how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board noted that the Advisory Contract for the Funds did not provide for breakpoints in the Funds’ investment advisory fee rates as the assets of the Funds increase. However, the Board noted that a breakpoint structure for the Funds may be appropriate should material economies of scale exist in the future that are not otherwise shared, and that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding breakpoints in the future.
Based on this review of the sharing of scale benefits, as well as the other factors considered at the meeting, the Board concluded that the information concerning the sharing of scale benefits supported the Board’s approval of the continuance of the Advisory Contract for the coming year.
Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates:The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, includingopen-end funds registered under the 1940 Act (includingsub-advised funds), collective trust funds, and institutional separate accounts (collectively, the “Other Accounts”), and acknowledged BFA’s assertion that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do not manage Other Accounts with substantially the same investment objectives and strategies as the Funds and that track the same indexes as the Funds. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts generally differ from the Funds, including in terms of the different and generally more extensive services provided to the Funds, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Funds, as publicly traded ETFs, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate. The Board also considered the“all-inclusive” nature of the Funds’ advisory fee structure, and the Funds’ expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rates under the Advisory Contract for the Funds was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.
Other Benefits to BFA and/or its Affiliates: The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Funds by BFA, such as payment of revenue to BTC, the Funds’ securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA (or its affiliates) in connection with any investments by the Funds in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Funds. The Board further noted that any portfolio transactions on behalf of the Funds placed through a BFA affiliate or purchased from an underwriting syndicate in which a BFA affiliate participates (including associated commissions) are reported to the Board pursuant to Rule17e-1 or Rule10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Funds and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.
Conclusion:Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Trustees, determined that the Funds’ investment advisory fee rates under the Advisory Contract do not constitute fees that are so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product ofarm’s-length bargaining, and concluded to approve the continuance of the Advisory Contract for the coming year.
II. iShares MorningstarLarge-Cap Growth ETF, iShares MorningstarMid-Cap ETF and iShares MorningstarSmall-Cap ETF
Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Trustees who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Trustees”), is required annually to consider and approve the Investment Advisory
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Board Review and Approval of Investment Advisory Contract(continued)
Contract between the Trust and BFA (the “Advisory Contract”) on behalf of the Funds. The Independent Trustees requested, and BFA provided, such information as the Independent Trustees, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. At a meeting on May 11, 2018, a committee composed of all of the Independent Trustees (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or their independent counsel, and requested certain additional information, which management agreed to provide. At these meetings, the 15(c) Committee reviewed and discussed information provided in response to the 15(c) Committee’s initial requests, and requested certain additional information, which management agreed to provide. At a meeting held on May 24, 2018, management presented additional information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its initial meeting. The Board, including the Independent Trustees, reviewed and discussed such information at length. The Independent Trustees requested from management certain additional information, which management agreed to provide. At a meeting held on June12-14, 2018, the Board, including the Independent Trustees, reviewed the additional information provided by management in response to these requests. After extensive discussions, the Board, including all of the Independent Trustees, approved the continuance of the Advisory Contract for the Funds, based on a review of qualitative and quantitative information provided by BFA. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Independent Trustees were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Funds, the Board, including the Independent Trustees, considered various factors, including: (i) the expenses and performance of each Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to each Fund and profits realized by BFA and its affiliates; (iv) economies of scale; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, no one of which was controlling, and conclusions that formed the basis for the Board, including the Independent Trustees, to approve the Advisory Contract are discussed below.
Expenses and Performance of the Funds:The Board reviewed statistical information prepared by Broadridge Financial Solutions Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, fees and expenses of another fund in which each Fund invests (if applicable), and waivers/reimbursements (if applicable) of each Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider), objectively selected by Broadridge as comprising such Fund’s applicable peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the applicable Peer Groups. The Board further noted that due to the limitations in providing comparable funds in the various Peer Groups, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Funds in all instances.
The Board also noted that the investment advisory fee rates and overall expenses (net of waivers and reimbursements) for the Funds were within range of the median of the investment advisory fee rates and overall expenses (net of waivers and reimbursements) of the funds in their respective Peer Group, excluding iShares funds.
In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as any particular Fund, Broadridge also provided, and the Board reviewed, a comparison of such Fund’s performance for theone-, three-, five-,ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2017, to that of relevant comparison fund(s) for the same periods.
The Board noted that each Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on each Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including additional detailed information as requested by the Board, was also considered. The Board noted that each Fund generally performed in line with its underlying index over the relevant periods.
Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of each Fund supported the Board’s approval of the continuance of the Advisory Contract for the coming year.
Nature, Extent and Quality of Services Provided by BFA:Based on management’s representations, including information about recent and proposed enhancements to the iShares business, including with respect to capital markets support and analysis, technology, portfolio management, product design and quality, compliance and risk management, global public policy and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to support the iShares funds and their shareholders. The Board also considered BFA’s compliance program and its compliance record with respect to the Funds. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for theday-to-day management of the Funds, as well as the resources available to them in managing the Funds. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June12-14, 2018 meeting and throughout the year, and matters related to BFA’s portfolio compliance policies and procedures.
Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided to the Funds under the Advisory Contract supported the BoaDrd’s approval of the continuance of the Advisory Contract for the coming year.
Costs of Services Provided to Fund and Profits Realized by BFA and its Affiliates:The Board reviewed information about the profitability to BlackRock in managing the Funds, based on the fees payable to BFAand its affiliates (including fees under the Advisory Contract), and other sources of revenue and expense to BFA and its affiliates from the Funds’ operations for the last calendar year. The Board reviewed BlackRock’s profitability methodology for the iShares funds, noting that the 15(c) Committee and the Board had focused on the methodology and profitability presentation during their meetings. The Board further noted that it considered the supplemental information the 15(c) Committee requested, which BlackRock provided, regarding the methodology. The Board discussed the sources of direct and ancillary revenue with management,
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Board Review and Approval of Investment Advisory Contract(continued)
including the revenues to BTC, a BlackRock affiliate, from securities lending by the Funds. The Board also discussed BFA’s profit margin as reflected in the Funds’ profitability analysis and reviewed information regarding potential economies of scale (as discussed below).
Based on this review, the Board concluded that the profits realized by BFA and its affiliates under the Advisory Contract and from other relationships between the Funds and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors and other information considered.
Economies of Scale:The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Funds’ assets, noting that the issue of economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished, among other things, between fixed and variable costs, and showed how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board noted that the Advisory Contract for the Funds did not provide for breakpoints in the Funds’ investment advisory fee rates as the assets of the Funds increase. However, the Board noted that a breakpoint structure for the Funds may be appropriate should material economies of scale exist in the future that are not otherwise shared, and that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding breakpoints in the future.
Based on this review of the sharing of scale benefits, as well as the other factors considered at the meeting, the Board concluded that the information concerning the sharing of scale benefits supported the Board’s approval of the continuance of the Advisory Contract for the coming year.
Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates:The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, includingopen-end funds registered under the 1940 Act (includingsub-advised funds), collective trust funds, and institutional separate accounts (collectively, the “Other Accounts”), and acknowledged BFA’s assertion that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do not manage Other Accounts with substantially the same investment objectives and strategies as the Funds and that track the same indexes as the Funds. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts generally differ from the Funds, including in terms of the different and generally more extensive services provided to the Funds, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Funds, as publicly traded ETFs, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate. The Board also considered the“all-inclusive” nature of the Funds’ advisory fee structure, and the Funds’ expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rates under the Advisory Contract for the Funds was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.
Other Benefits to BFA and/or its Affiliates:The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Funds by BFA, such as payment of revenue to BTC, the Funds’ securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA (or its affiliates) in connection with any investments by the Funds in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Funds. The Board further noted that any portfolio transactions on behalf of the Funds placed through a BFA affiliate or purchased from an underwriting syndicate in which a BFA affiliate participates (including associated commissions) are reported to the Board pursuant to Rule17e-1 or Rule10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Funds and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.
Conclusion:Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Trustees, determined that the Funds’ investment advisory fee rates under the Advisory Contract do not constitute fees that are so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product ofarm’s-length bargaining, and concluded to approve the continuance of the Advisory Contract for the coming year.
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Supplemental Information(unaudited)
Proxy Results
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 | ||||||||||||||||||||||||||||
MorningstarLarge-Cap(a) | $ | 1.553879 | $ | — | $ | 0.008123 | $ | 1.562002 | 99 | % | — | % | 1 | % | 100 | % | ||||||||||||||||||||
MorningstarLarge-Cap Growth(a) | 0.619236 | — | 0.012573 | 0.631809 | 98 | — | 2 | 100 | ||||||||||||||||||||||||||||
MorningstarLarge-Cap Value(a) | 1.380829 | — | 0.002351 | 1.383180 | 100 | — | 0 | (b) | 100 | |||||||||||||||||||||||||||
MorningstarMid-Cap(a) | 1.572574 | — | 0.113517 | 1.686091 | 93 | — | 7 | 100 | ||||||||||||||||||||||||||||
MorningstarMid-Cap Growth(a) | 0.299928 | — | 0.027612 | 0.327540 | 92 | — | 8 | 100 | ||||||||||||||||||||||||||||
MorningstarMid-Cap Value(a) | 1.696809 | — | 0.048100 | 1.744909 | 97 | — | 3 | 100 | ||||||||||||||||||||||||||||
MorningstarSmall-Cap(a) | 1.128703 | — | 0.128397 | 1.257100 | 90 | — | 10 | 100 | ||||||||||||||||||||||||||||
MorningstarSmall-Cap Growth(a) | 0.272911 | — | 0.073927 | 0.346838 | 79 | — | 21 | 100 | ||||||||||||||||||||||||||||
MorningstarSmall-Cap Value(a) | 1.392829 | — | 0.243194 | 1.636023 | 85 | — | 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. |
(b) | Rounds to less than 1%. |
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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.
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Glossary of Terms Used in this Report
Portfolio Abbreviations - Equity
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 | 83 |
| 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.
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Investing involves risk, including possible loss of principal.
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The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).
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The iShares Funds are not sponsored, endorsed, issued, sold or promoted by Morningstar, 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.
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©2018 BlackRock, Inc. All rights reserved.iSHARESandBLACKROCKare registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners. | ||||
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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 in Rule30a-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: July 30, 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: July 30, 2019 |
By: /s/ Neal Andrews |
Neal Andrews, Treasurer and Chief Financial Officer (Principal Financial Officer) |
Date: July 30, 2019 |